2. WASBO New School Administrator & Business Support Staff Workshop August 13, 2013 Erin Fath, Assistant Director, School Financial Services Team, DPI Bob Borch, Senior Financial Advisor – PMA Financial Network, Inc Bob Avery, Director of Business Services, Beaver Dam School District

3. Why “Fiscal Year at a Glance?” How the SFS Team communicates with districts Cover many of the basic questions that we receive throughout the year Show how data elements that we collect from districts translate into the payment of state aid Relationships among various pieces of data Relationships between fiscal years 2

4. DPI – School Financial Services SFS Team: Who We Are Division for Finance and Management Brian Pahnke Assistant Superintendent School Financial Services Robert Soldner, Director Education Administrative Director Bill Evans IS Business Automation Specialist Victoria Chung Accountant Senior Gene Fornecker Auditor (School Finance) Brad Adams School Administration Consultant Dan Parizo IS Business Automation Specialist Donna Wood IS Business Automation Specialist Michele Tessner Auditor (School Finance) Brian Kahl Auditor (School Finance) Vacant School Administration Consultant School Financial Services Erin Fath, Assistant Director Education Administrative Director Bruce Anderson School Administration Consultant Dan Bush School Administration Consultant 3

5. SFS Team: What We Do Collect data reports from districts in order to distribute over $5.6 billion in State Aids Provide data to individuals, organizations, state and federal agencies Provide consultation to districts as needed Provide training opportunities Maintain SFS Team website – information for districts and the SFS Reporting Portal 4

6. SFS Team: How We Can Help You Conferences and workshops Phone calls, e-mail Newsletters and ListServ notices Web pages, webcasts, and tutorials 5

7. What Should You Do…Today! Bookmark this website: http://sfs.dpi.wi.gov/ School Financial Services Team home page From the DPI Homepage: - Schools & Educators - Funding & Governance - School Financial Services 6

9. SFS Team Communications Effective July 1, 2009, the School Financial Services Team went paperless [mostly]! Going paperless required increased electronic communications in order to efficiently and effectively communicate with districts, collect & disseminate information. 8

10. SFS Team Communications email Our primary electronic communication besides the SFS Team website is email: SFS Team Bulletins – via ListServ notices SFS Team Newsletters – via ListServ Targeted emails contact information Therefore, it is imperative that we have accurate contact information … 9

11. District Contacts Report – PI 1500 The “PI-1500 District Contacts Report” accomplishes three goals: Identifies contacts for SFS Team Bulletins and Newsletters send via ListServ Identifies who is authorized to submit and receive information for each school financial services report (target emails) Creates an ID/Password for those individuals authorized to submit reports. 10

12. District Contacts Report – PI 1500 User IDs and passwords are individual-specific, and can be changed by the user at any time. Unless you are authorized to submit via the District Contacts Report, you will not be able to access the reports. The District Contacts Report stays open all year long to allow for staff changes. 11

13. District Contacts Report – PI 1500 This report should be reviewed and updated periodically throughout the year and especially when new staff are added or staff responsibilities change. Find out who in your district is authorized to complete the PI 1500 report. At least two people should be authorized in each district. Confirm that you have been added if you are responsible for any of the SFS reports. 12

14. District Contacts Report – PI 1500 13

15. District Contacts Report – PI 1500 14

16. How many years can you juggle at one time ? …hopefully the answer is 3!

17. School Finance Reports SFS Team collects data in several reports that are used to determine State Aid: Equalization /General Aid Categorical Aids (e.g., State Special Education Aid, Transportation Aid, Library Aid, Per Pupil Aid) Districts access reports from the DPI/SFS Team website, via the School Finance Reporting Portal (SAFR): http://sfs.dpi.wi.gov/sfs_safrlinks 16

18. School Finance Reports 17

19. School Finance Reports 18

20. School Finance Reports 19

21. School Finance Reports 20 District Home Page – starting point for different types of SFS reports “Status & Due Dates”: helps you see what you need to submit and when.

22. School Finance Reports 21 Some reports are “optional”; not all districts make claims for certain aid programs or for TOS.

23. prior fiscal year What activities take place relating to the prior fiscal year (2012-13)?

24. PI 1505 School Calendar Report Report used to collect data for the just completed school year on the district’s Days of instruction Hours of instruction Data is used to verify compliance with state statutes 121.02(1)(f)1. and 121.02(1)(f)2. 2012-13 report was due July 26, 2013 23

25. Days of Instruction Districts are required to schedule at least 180 school days s. 115.01(10)(a) – School days are days on which school is actually taught and the following days on which school is not taught: Days on which school is closed by order of the school district administrator because of inclement weather and days on which parent teacher conferences are held, not to exceed 5 days. Days on which school is closed by order of a local health officer, as defined in s. 250.01(5). Days on which school is closed by order of the school district administrator because of a threat to the health or safety of pupils or school personnel, but not including inclement weather days, unless the school board determines that the days will not count as school days. 24

26. Days of Instruction Example The district schedules 178 days of actual instruction and 2 days of parent teachers conference days in lieu of actual instruction: 1. Does this meet the 180 day requirement?YES 2. What happens if the district also has 4 inclement weather days? 2 Parent-Teacher Conference in lieu of instruction +4 inclement weather days =6 days without direct instruction > 5 day exceptions limit by 1 day District is not in compliance, must either: a) Make up one school day, or b) Request a waiver 25

27. Hours of Instruction Minimum number of hours required at various levels:  Kindergarten437 hours [School Board operating a 4 year old kindergarten may use up to 87.5 of the scheduled hours for outreach activities]  Grades 1 – 61,050 hours  Grades 7 – 121,137 hours Districts report these hours by school building on the school calendar report (if multiple levels at a building, report the level with the highest hours). 26

28. Days & Hours of Instruction – More Information A worksheet is available on the web to help determine if your district is meeting the days and hours of instruction requirements: http://sfs.dpi.wi.gov/sfs_days_hours 27

29. PI 1505 School Census Report This report is used to collect the district’s census data as of June 30 th of the just completed fiscal year. Current reporting is for June 30, 2013 Report is due to DPI on August 19, 2013 Census data is all children ages 4 to 20 in district Includes private- and home-schooled children Excludes children cared for at a charitable or penal institution in the state Data is used to calculate the district’s categorical Library Aid, which is funded from the Common School Fund. 28

30. PI 1505 School Census Report State statute 120.18(1)(a) allows districts to identify census numbers by utilizing one of two established procedures:120.18(1)(a) 1. Perform an actual physical count on June 30 th. 2. Perform a mathematical calculation to determine a school census number, using enrollment data from prior year 3 rd Friday in September count. 29

31. PI 1505 School Census Report - Data Mathematical calculation example: (as of the prior 3 rd Friday in September) Res. school district enrollees 1,604 Res. private school enrollees 86 Res. home-based private education programs enrollees 54 Res. children ages 4 to 20 who are not accounted for in the counts listed above (estimate) 326 2,070 30

32. Common School Fund The Common School Fund is one of the State Trust Funds. Managed by the Board of Commissioners of Public Lands (BCPL) Net earnings of the fund are distributed as Library Aid each year to public school districts for the purchase of school library materials. 31

33. Common School Fund – “Library Aid” Estimated 2013-14 aid amount: January 2014 Actual 2013-14 Aid payment: May 1, 2014 The entire allocation must be spent by June 30 th of the year in which it is received. The Department annually verifies that the full amount of aid has been spent thru edits in the full budget and annual reports. 32

34. Common School Fund – “Library Aid” Library Aid may be spent for the following purposes [WUFAR Function 222 000 (Object Codes)] Audiovisual materials (431) Library books (432) Newspapers (433) Periodicals (434) Instructional software (435) Microfilm (438) Other Media (439) Computer Hardware (550 or 560): 100% of Library Aid may be spent on this (prior to 2011-12, only 25% could be spent on computer hardware) 33

35. PI 1547 Pupil Transportation Report Report used to collect data on the district’s “actual ridership” per state statute 121.58 for the just completed school year (regular school year). Districts will need to document the procedures used to determine actual ridership. Auditors may review this documentation at the year end audit. 2012-13 Report was due June 28, 2013. Due date has been moved up recently to prevent confusion on summer transportation data. 34

36. PI 1547 Pupil Transportation Report “Regular” Transportation – Data is used to calculate the district’s “Regular” Transportation categorical aid: Districts should not include special education students being transported on special education routes only on this report. Districts receive aid for special education transportation based on eligible expenses included in the calculation of State Special Education Categorical Aid. 35

37. PI 1547-SS Pupil Transportation Report – Summer School Separate report for summer school transportation For purposes of School Finance (Aid calculations) – summer school “starts” the year, so … Summer school held during summer 2013 is part of the 2013-14 school year Use the PI 1547 SS for 2013-14 to report summer 2013 data Report is due to DPI on October 5, 2013 Shows up as “optional” in the Status and Due Dates because not all districts claim transportation aid for summer school. 36

38. PI 1547-SS Pupil Transportation Report – Summer School 37 Use the “2013-2014” FY in the PI-1547-SS report to enter data for pupil transportation during summer 2013.

39. High Cost Pupil Transportation Aid 2013 Wisconsin Act 20 [2013-15 State Budget] created a NEW Categorical High Cost Transportation Aid : Aid will be targeted to districts with per-pupil [regular] transportation costs above 150% of the state average. Districts will not have to complete a special report or submit a claim for this aid; DPI will have the relevant expenditure data from district annual reports. Aid will be paid at end of Fiscal Year (June). Difficult to estimate at this time because it is based on prior year expenditures (June 2014 payment based on 2012-13 expenditures – not yet audited). 38

40. PI 5000 Transfer of Service The Transfer of Service (TOS) Report is used to determine whether a district can claim an TOS exemption in the Revenue Limit calculation. An “appendix” in this presentation contains several slides that cover what TOS is (and isn’t), but for now, know that: The TOS report is not used to calculate an aid payment (but is still very important to complete!) 2012-13 report is due on August 30, 2013. 39

41. PI 1505AC (Aid Certification) Report is used to collect critical financial data from the district’s ledger for the just completed fiscal year. Data is used to calculate the district’s October 15 th Certification of General Aid. District data entered on the PI 1505AC is verified by the auditor via the PI 1506AC (report completed by the auditor). 2012-13 report is due on August 30, 2013. 40

42. PI 1505 Full Annual Report Report is used to collect the district’s final revenues, expenditures, assets, liabilities and equity for all funds for the just completed fiscal year. Data used to calculate the district’s final aid eligibility [calculated in April/May], per state statute 121.54(4)(b). 2012-13 report is due on September 20, 2013. 41

43. PI 1505 SE Annual Report Special Education Report is used to collect the district’s Special Education (Fund 27) expenditures for the just completed fiscal year. Data used to calculate the district’s special education categorical aid. 2012-13 report is due September 20, 2013. 42

44. PI 1524 State Tuition Claim Report is used to collect data on the costs of educating pupils living in certain institutions or homes (e.g., juvenile correctional facility) within a school district. Data used to calculate a district’s eligibility for State Tuition Payments. 2012-13 report is due September 27, 2013. “Optional” report – not all districts make claims Report is NOT within the SAFR – more information found at: http://sfs.dpi.wi.gov/sfs_tuit_st 43

45. High Cost & Supplemental Special Education Aid Additional reports/claim forms for Special Education expenses. Not all districts are eligible. District may claim one or the other – not both. For additional information on these two aids: High Cost Spec Ed Aid http://sped.dpi.wi.gov/sped_highcost Supplemental Spec Ed Aid http://sfs.dpi.wi.gov/sfs_supspedaid1 44

46. Audit Annual audit of district financial records is required under Wisconsin state law. Independent auditors will verify that the financial statements present fairly the balance sheet as of June 30 th and the results of operations for the year ended June 30 th. 45

47. Purpose of the Audit Maintain public confidence in the reliability of published financial data. Assure users that the financial statements are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP). Determine compliance with state and federal requirements. 46

48. Phases of the Audit Process Planning Preliminary Fieldwork Final Fieldwork Communication with Management 47

49. Audit Preparation Request a list of all items needed for the audit. Post all year-end items. Reconcile all balance sheet accounts. Have all manual journal entries available for review. Print year-end general ledger, revenue, and expenditures reports. RELAX! 48

50. current fiscal year What activities take place relating to the current fiscal year (2013-14)?

51. Finalize 2013-14 Budget Finalize current year expenditure & revenue estimates: Expenditures Salary/benefits – per contract/negotiations/administrative determination Other program/district expenditures – supplies/utilities/etc. Revenues Revenue Limit (“controlled”) revenues General Aid (Equalization, Ch 220, Special Adjustment) Tax Levies Computer Aid Categorical Aids (review prior year reports) Open Enrollment (most likely an expenditure and revenue) Grants (e.g., Federal Aids, maybe state or other grant) Local Revenues (fees, gate receipts) 50

52. Finalize 2013-14 Budget The district’s budget is a roadmap based on the district’s best estimations. Two major revenues remain an estimate until mid- October – when the district can calculate the revenue limit for taxing purposes: Equalization/General Aid Tax Levy 51

53. Finalize 2013-14 Budget Categorical Aids Per Pupil Aid – New categorical aid created under 2013 Act 20 – provides $75/member [current year revenue limit Line 6] Aid will be paid on fourth Monday in March of each year Not required to “levy to the max” to receive the aid No claim required – SFS Team will calculate Common School Fund (Library Aid) – Dollar amount per district resident ages 4-20 for instructional media center materials. Transportation Aid – Based on riders in previous year times flat rate amount per pupil in each distance category; half payments for transporting less than 91 days (less than 16 days for summer). Special Education Aid – Percentage reimbursement of the prior year’s allowable special education expenditures. 52

54. Finalize 2013-14 Budget Other Categorical Aids SAGE Aid Sparsity Aid High Poverty Aid High Cost Transportation Aid (new) High Cost or Supplemental Special Ed Aid Impact Aid (Federal) See the following website for eligibility criteria: http://sfs.dpi.wi.gov/sfs_aid_info_all_types 53

55. Budget Hearing & Adoption The Budget Hearing and Adoption process is outlined in state statute 65.90. All districts are required to have a budget hearing. Common and Union High School Districts are required to hold the budget hearing at the same time and place as the annual meeting. 54

56. Budget Hearing & Adoption School boards are required to approve a “proposed” budget for presentation at the budget hearing. An excel file is available to assist with the recommended format for budget presentation and publication. http://sfs.dpi.wi.gov/sfs_budhear 55

57. Budget Adoption Format 56

58. Budget Publication School Districts must publish notice of the budget hearing as well as the proposed budget summary: Common S.D. – at least 10 days prior Unified and UHS S.D. – at least 15 days prior 57

59. Budget Hearing Notice 58

60. Budget Publication Format 59

61. Annual Meeting State statute 120.08 (1) identifies the date and time of the annual meeting: Common S.D. – 4 th Monday in July – 8:00pm UHS S.D. – 3 rd Monday in July – 8:00 pm unless … The electors at one annual meeting vote to hold the following annual meeting at a different date or hour or authorize the school board to establish a different date or hour. No annual meeting may be held before May 15 th or after October 31 st. 60

62. Annual Meeting Notice School district must publish a class 2 notice for the annual meeting. 1 st notice – at least 2 weeks prior to meeting 2 nd notice – not more than 8 days or less than 1 day prior to the meeting 61

63. Annual Meeting Notice 62

64. Original Budget Adoption The school board shall adopt an “original” budget at a school board meeting after the public hearing and no later than the meeting in which the tax levy is set. November 1 st – deadline for adopting the “original” budget and setting the levy amount November 10 th – deadline for certifying the levy amount to the municipalities 63

65. SFS Reports We’ve just reviewed: Budget Hearing and Adoption requirements Annual Meeting notice requirements Adopting a Proposed and Original Budget reports Let’s take a look at the reports you will be completing during this time … 64

66. Community Programs/Service This is Fund 80, a.k.a “Community Service Fund” Used for programs that serve the entire community (as age appropriate) and generally take place outside regular hours of instruction Evolution of Fund 80 over time … Originally under the “Revenue Limit” cap Excluded from Revenue Limit cap, effective 2001-02 Since then and up until now, no “limit” on the amount a district could levy into Fund 80 (local accountability) BUT … it is changing now! 65

67. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 1. District levy authority is limited in 2013-14 and 2014-15 Levy can not be greater than the amount levied into Fund 80 in the most recent year prior to 2013 in which the district levied into Fund 80. That limit can be exceeded in 2013-14 or 2014-15 only if a majority of the electors of the school district approve a resolution adopted by the school board to do so. It is DPI’s understanding that the Legislative intent of this provision is clearly that a district hold a referendum as a means of achieving “approval of the electors” to exceed the Fund 80 levy limits imposed by Act 20. 66

68. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 2. Reporting Requirements – Materials at Meeting Districts must include written materials describing planned expenditures from the Fund 80 levy and a statement as to how those expenditures meet DPI criteria for Fund 80 in materials at specified meetings: Common School Districts – in the written budget summary at the board’s Annual Meeting; Unified School Districts – in the written agenda for the meeting at which the board sets the district’s levy District in the City of the 1 st Class (MPS) – written materials at the equivalent of the above meetings. 67

69. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 3. Reporting Requirements - Timing Districts must report to DPI, within 10 days of the meeting specified by Act 20 (previous slide), this Fund 80 report information. Districts must also publish this Fund 80 report information to their own website, within 60 days of the effective date of Act 20 (July 2, 2013 – 60 day window ends August 31 st ). Same reporting requirements apply to 2014-15 for the Fund 80 levy. 68

70. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 On-line Reporting Tool: On August 5 th, DPI announced the availability of the on-line School Financial Services Fund 80 Survey Districts that have not yet reported are asked to use the on-line survey tool – easier for districts (tells you what information to submit) and easier for DPI to compile into a consistent reporting format. We are working with districts that have already submitted the report prior to the availability of the Fund 80 survey to get information into the survey. 69

71. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 4. Reporting Requirements DPI must report, within days of receipt by the district, the Fund 80 report information to the DPI website. DPI must also report to the Joint Committee on Finance all the district Fund 80 reports (December 2014) Same reporting requirements for 2014-15 as for 2013-14. 70

72. Community Programs/Service 2013 WI Act 20 includes several changes to Fund 80 Resources Available to Districts on SFS Website Community Service Fund “home page”: http://sfs.dpi.wi.gov/sfs_comm_serv Link to the Fund 80 Survey Fund 80 Reports posted by DPI Community Service Fund – General Guidelines Provisions under 2013 WI Act 20 71

73. Summer School Transportation We discussed SS Pupil Transportation (PI-1547-SS) The report is currently open – due October 4, 2013. The summer school transportation report is a stand alone report – but the data feeds into the regular transportation report so that transportation aid can be calculated include summer ridership. Summer school (including summer transportation) starts the new year and includes all summer school transportation for that year even though it might have occurred in June: Summer School 2013 [June-Aug]: 2013-14 PI-1547-SS 72

74. PI 1804/1805 Summer School FTE Report used to collect district FTE (full time equivalency) data for the just ended summer term. Summer school starts the school year, so … 2013-14 Summer School Report for summer 2013 FTE data is used in the calculation of a district’s current year Revenue Limit* and following year’s Equalization/General Aid. 2013-14 [Summer 2013] report is currently open and will be due October 4, 2013. *For Revenue Limit: summer school is counted at 40% 73

75. Summer School FTE Summer School Membership (FTE) is obtained by: Calculating the district’s total summer school resident pupil minutes for qualified class offerings, then Dividing the total minutes by 48,600 and rounding to the nearest whole number to obtain an FTE count. **But minutes may be claimed only if no fees are charged or the fees meet specific criteria …** A worksheet is available to assist in this process. http://sfs.dpi.wi.gov/sfs_summ_sch 74

76. Summer School Fees Fees for the resident student or parent may be charged for individual use supplies (towels, gym clothes, band instruments, notebooks, pencils), textbooks, or similar items (workbooks) if the district claims the members for State General Aid under ss. 121.14. Fees may be charged for social, recreational, or extracurricular summer classes and programs which are neither credited toward graduation nor eligible for State General Aid [s. 118.04(4)]. 75

77. Summer School Fees For any summer school fee charged: The fee must fund an item that is legally permitted and actually purchased for summer school use. The fee may not be used to subsidize the cost of any other classes or students. The fee must be based upon the actual cost of the applicable item(s). 76

78. Audit of Summer School Fees If your district is required to have a membership audit, the auditor will also review your summer school FTE and any associated summer school fees. The auditor will question fees if: The fee does not appear to be legal The amount of the fee exceeds the actual cost 77

79. Audit of Summer School Fees If a fee is deemed excessive or inappropriate: The district may be asked to provide assurance that fees charged in the future will be in accordance with statutory requirements. The summer school FTE claimed may be adjusted or disallowed. The district will be required to have a membership audit of summer school FTE in the following year. 78

80. PI 1563 September Pupil Count CRITICAL! Report is used to collect districts’ pupil count data for the 3rd Friday in September. Data from the report is converted to FTE and used in the calculation of a district’s current year Revenue Limit and following year’s Equalization/General Aid. Report will open on September 20, 2013… due October 4, 2013. 79

81. General Count Guidelines In general, count the student if: The student is a district resident. The district is financially responsible for the student’s educational program. The student is present for instruction on the count date – or meets the “before and after rule”. 80

82. General Count Guidelines Present – The student is in attendance for instruction on the count date. Absent - The pupil is absent on the count date, but has attended at least one day during the school year prior to the count date and at least one day during the school year after the count date, and has remained a resident of the district during the period of absence. 81

83. PI-1563 Pupil Count Process Head Count Identify all students, regardless of residency, being directly served by the district. Resident Reductions Subtract all resident students being served by the district that don’t meet the count guidelines. (less than full time, outside age eligibility) - Non- Resident Reductions Subtract all non-resident students being served by the district. Open Enrollment - Resident Additions Add all resident students who are receiving educational services from other districts or programs and for which your district is paying the cost of full- time tuition. Open Enrollment + Adjusted Head Count * Result is the students that are residents for which you are financially responsible for. = * Will be converted to full-time equivalency (FTE). 82

84. Count Categories Preschool Special Education (.5 FTE) 4 YK – 437 hours (.5 FTE) 4 YK – 524.5 hours (.6 FTE) 5 YK – ½ day (.5 FTE) 5 YK – 3 full days (.6 FTE) 5 YK – 4 full days (.8 FTE) 5 YK – 5 full days (1.0 FTE) 5YK – Blended (1.0 FTE) Grades 1 – 12 (1.0 FTE) 83

85. Preschool Special Education Students must be at least 3 years of age as of the count date. Student must have an IEP (Individualized Education Plan) and be receiving instructional services. No minimum required number of instruction hours 84

86. 4 Year Old Kindergarten Districts should only use these two lines if: The 4 year old kindergarten program is open to all students The program is funded by district resources—not solely by Title One funds. The student is at least 4 on or before September 1 st. 85

87. 4 Year Old Kindergarten 4 Yr – 437 Hours: program shall have at least 437 hours of instruction, which can include up to 87.5 hours of outreach activities. 4 Yr – 524.5 Hours: program shall have at least 437 hours of instruction and 87.5 hours of outreach. The school shall NOT substitute instructional time for outreach activities. 86

88. 4 Year Old Kindergarten Districts starting a new 4K program will need to verify that the program meets all 4K requirements Contact Jill Haglund, Early Childhood Education, 608- 267-9625, with questions 87

89. 5 Year Old Kindergarten 5 Yr Old – Half Day Program 5 Yr Old – Three Full Day Program 5 Yr Old – Four Full Day Program 5 Yr Old – Five Full Day Program 5 Yr Old – Blended Program The student must be at least 5 years of age on or before September 1 st. 88

90. Grades 1 - 12 Students must be 6 years of age on or before September 1 st of the current year or be admitted under early admittance guidelines as defined by the Board of Education. Counting pupils can get confusing in certain situations: Pupils approaching age 21 (regular vs. Special Educ) Incarcerated pupils Help is available on our website: http://sfs.dpi.wi.gov/sfs_membrpt2 89

91. Reports, reports, reports … Wait – why to do we have to report all this data??? Membership drives your Revenue Limit calculation! [that is, the district’s “controlled” resources] Expenditures and membership (prior year) drive your General/Equalization Aid! [which offsets the Revenue Limit] and … REVENUE LIMIT – GENERAL AID = PROPERTY TAX [hint: this is a SIGNIFICANT portion of the district’s budget] All State General & Categorical Aid is based on the data submitted to the SFS Team by school districts. 90

92. October 15 th Aid Certification On October 15 th, the school financial services team will release the district’s current year General Aid Certification. This amount represents the amount of General Aid the district will receive during the current year. This number is what is used in the current year Revenue Limit Worksheet. 91

93. Revenue Limit A revenue limit restricts the amount of money a district can receive as a result of: State general aid Local property taxes Department of Revenue Computer Aid **The revenue limit does not include all revenues and it is not a spending limit – but it does control a significant portion of a district’s budget. ** 92

94. Revenue Limits In 1993-94, revenue limits were implemented to control increases in school property tax levies. Revenue limits are determined on an individual district basis and are not affected by changes in other districts. The calculation involves both district-specific and state variables (namely, the per-pupil adjustment). 93

95. Revenue Limit Although the district should be creating an estimated revenue limit throughout the entire budget development process, the revenue limit from which the tax is levied is calculated in late October. DPI provides a pre-populated revenue limit worksheet for all districts and adjusts these worksheets as information becomes known. http://sfs.dpi.wi.gov/sfs_revlimworksheet 94

96. Revenue Limit Revenue Limit in it’s simplest form: Revenue Limit Membership x “Base” Revenue per Member + Exemptions = “Controlled” Revenue Limit Then:Revenue Limit – General Aid = Property Taxes + Other Levies [outside the limit] = Total School Property Tax Levy 95

97. Common Revenue Limit Exemptions Prior Year Carryover Transfer of Service* Recurring Referenda to Exceed Limit Non-Recurring Referenda to Exceed Limit Non-Recurring Energy Efficiency Exemption* Non-Recurring Declining Enrollment Exemption 96

98. Revenue Limits Authority to exceed the revenue limit (except for exemptions identified by law) is given by a referendum: The State does not control when or for what purposes districts should consider a referendum. The issue of maintaining a school program or voting to exceed the revenue limit is a local decision. There are, however, noticing requirements prescribed in state law if a district chooses to hold a referendum 97

99. PI 1572 Referenda Report Report used to collect data an any district referendums. Districts must notify DPI of upcoming referendum within 10 days of adopting the resolution. After the referendum vote, the district should update the vote to show the vote tally. 98

100. PI 1572 Referenda Report Information required District contact Purpose of borrowing or use of revenue limit dollars Dollar amount of the proposed borrowing (Debt Referendum) Recurring vs. non-recurring and the number of years involved (Revenue Limit Referendum) Actual, complete wording of resolution/ballot question. Also used to report a resolution to use the Energy Efficiency Exemption. 99

101. PI 1572 Referenda Report Districts are also required to send to DPI a copy of the adopted resolution authorizing election, and; A copy of board of canvassers statement which reports official vote tally within 10 days of the election; They can both be faxed to Michele Tessner at (608) 267-9218 or mailed. http://sfs.dpi.wi.gov/sfs_referendum 100

102. PI 401Tax Levy Report Report used to collect the district’s current year tax levies and mill rates. Data from the report is automatically downloaded into tax levy certification forms that are sent by the district to the taxing municipalities. Data from the report is automatically shared with the Department of Revenue. 101

103. Tax Levy On or before November 1, every public school board must approve the levy amounts necessary to: Operate and maintain district schools (s.120.12(3) Wis. Stats.),120.12(3) Meet any irreparable tax obligations (s.120.12(4) Wis. Stats.).120.12(4) 102

104. Tax Levy School district property taxes include levies into fund for: General Operations Debt Service Capital Expansion Community Programs and Services On or before November 10, the school district clerk must certify to each municipal clerk the amount of school district tax to be assessed on the tax rolls of that municipality (s.120.12(3) Wis. Stats.).120.12(3) 103

105. PI 1504 – Budget Report Report used to collect the district proposed revenue and expenses for all funds for the current [2013-14] fiscal year. Data is used to calculate the district’s following year [2014-15] General Aid estimate provided on July 1 st, per state statute 121.15(4)(b). Scheduled to open on October 14, 2013 … Report due December 2, 2013 104

106. PI 1504 – Budget Report Report used to collect the district’s proposed Special Education (Fund 27) expenditures for the current [2013-14] fiscal year. Data is used by the federal grants area to determine maintenance of effort (MOE) eligibility. Scheduled to open on October 14, 2013 … Report due December 2, 2013 105

107. next fiscal year What activities take place relating to the next fiscal year (2014-15)?

108. 2014-15 Budget Development Although detailed budget development usually doesn’t start until late December/early January, you should be thinking about: Enrollment trends Changing district dynamics (development, population trends, etc……) Revenue trends Impact of salary and benefit changes 107

109. Are you ready for 6 more???

110. prior fiscal year What activities take place relating to the prior fiscal year (2012-13)?

111. Prior Year Finishing Touches The School Financial Services team is auditing the prior year annual and audit reports. Prior year activity is primarily limited to responding to questions that arise as a result of those audits. 110

112. current fiscal year What activities take place relating to the current fiscal year (2012-13)?

113. PI 1563 January Pupil Count Report used to collect district count data for the 2 nd Friday in January. Data is converted to full-time equivalency and used in the calculation of the upcoming fiscal year Equalization/General Aid [Jan 2014 data used in the 2014-15 General Aid calculation]. Reporting process is the same as the PI-1563 September 3 rd Friday Pupil Count Report. Report due January 24, 2013. 112

114. Membership Audit On or about February 1 st, the School Finance Team will announce which districts are required to have a membership audit. The district’s auditor will verify the district’s reported counts for: 3 rd Friday in September 2 nd Friday in January Summer School (as well as fees) 113

115. PI 1505 Debt Schedule Report Report used to collect the district’s long-term debt repayment schedules for all district indebtedness. Data used to project future equalization aid payments from a state-wide perspective. Debt schedule report should be updated anytime new debt has been issued or existing debt has been amended. 114

116. Budget Amendments As the current budget year progresses, you may find expenditure needs that differ from the budget that was originally approved. Changes in amount of appropriation and purposes (functions) must be approved by a two-thirds vote of the school board. Publish a class 1 notice of the budget change within 10 days of Board approval. 115

117. Budget Amendments 116

118. next fiscal year What activities take place relating to the next fiscal year (2014-15)?

119. 2014-15 Budget Development Review District Accounting Structure Determine if the current accounting structure meets your information and reporting needs Determine if the school financial services team has made any changes to WUFAR that would require new account codes: http://sfs.dpi.wi.gov/sfs_wufarhttp://sfs.dpi.wi.gov/sfs_wufar WUFAR changes discussed at DPI Spring Workshop. 118

120. 2014-15 Budget Development Develop Enrollment Projections Used in the calculation of the revenue limit Used in determining staffing needs Used in calculating other revenues such as local fees 119

121. 2014-15 Budget Development Develop Preliminary Revenue Estimates Calculate an estimated revenue limit – very important as this is the largest revenue source of the district and greatly impacts the district’s expenditure budgeting Review trends to estimate categorical aids and other local revenues Identify potential grant sources 120

122. 2014-15 Budget Development Develop Preliminary Expenditures Review staffing needs and expenditure levels –remember notice requirements in the event of staff reductions, layoffs, non-renewals, etc……are needed. Review program offerings to see if expenditure requirements have changed. Review trends in utility, insurance, and other related expenses. Be mindful of state developments – for 2014-15 fiscal year, the 2013-15 State Budget (Act 20) already lays out general parameters (e.g., Revenue Limit per pupil adjustment) 121

123. You are not alone……….

124. Questions??? Call us … (608 area code) Brad Adams, Consultant, 267-3752 Bruce Anderson, Consultant, 267-9707 Dan Bush, Consultant, 267-9212 Gene Fornecker, Auditor, 267-7882 Brian Kahl, Auditor, 266-3862 Michele Tessner, Auditor, 267-9218 Erin Fath, Assistant Director, 267-9209 Bob Soldner, Director, 266-6968 123

126. Transfer of Service What is Transfer of Service? based on WI Stat. 121.91(4)(a) an exemption to the revenue limit - it is normally recurring. allows for an increase on the local tax levy. 125

127. Transfer of Service Transfer of Service is not: a payment from the State. a payment from another school district. 126

128. Transfer of Service The added tax authority from an approved Transfer of Service: helps the district cover unexpected costs for incoming Spec Ed/LEP (Limited English Proficiency) transfers. helps the district cover the cost of new operation expenses that were once provided by another municipality. 127

129. Transfer of Service How do you get this Transfer of Service: students must have come to the district with identified Special Ed or Limited English Proficiency needs. fill out the proper on-line applications with the appropriate pupil information. verification may be needed. 128

130. Transfer of Service How do you get this Transfer of Service: after all required verifications are obtained, complete the Summary Sheet – this is the formal request for a Transfer of Service This is all done on-line in the Reporting Portal. Reports will be due on or about August 31, 2012. 129

131. Transfer of Service Where do you submit the needed information and how do you know what your Transfer of Service exemption is? Go to the Finance Team Homepage and navigate to the Transfer of Service link Or go directly to: http://dpi.wi.gov/sfs/transerv.html http://dpi.wi.gov/sfs/transerv.html 130

132. Transfer of Service Questions? Contacts: Brad Adams – School Finance Consultant (608-267-3752) bradley.adams@dpi.wi.gov Bruce Anderson – School Finance Consultant (608-267- 9707)(608-267- 9707) bruce@anderson@dpi.wi.gov Or visit our web site and click of Transfer of Service: http://sfs.dpi.wi.gov/transfer-service http://sfs.dpi.wi.gov/transfer-service 131

133. Energy Efficiency Exemption Allows a district to increase its revenue limit by the amount spent by the district in that school year on energy efficiency measures and/or products that result in avoidance of, or reduction in, energy costs or operational costs **It is a NON-RECURRING exemption – the dollar amount is removed from the district’s base going forward.** 132

134. Energy Efficiency Exemption Two new provisions beginning in 2011-2012 (Act 32) Performance contract (s. 66.0133) required for ALL projects, regardless of whether the district borrows Bonds or notes can be issued for up to 20 years Two new provisions beginning in 2013-2014 (Act 20) Districts may now borrow from the State Trust Fund for an EE project If borrowing, “measurable” savings must be used to reduce debt service costs. 133

135. Energy Efficiency Exemption Borrowing to pay for an EE Project? May borrow up to 20 years Does not change the $1 million limit for non- referendum debt Requires annual resolution by the district’s board to exceed the revenue limit by the amount of the payment that fiscal year. Resolution must be filed with DPI through referendum reporting portal every year in which a resolution is approved by the board. 134

136. Energy Efficiency Exemption Whether borrowing or one-year outlay: Certain reporting requirements to the community at the annual meeting (measurable savings) If borrowing, reporting requirement applies to each year in which funds are borrowed for the EE project. 135