1. WASDA New Administrator's Workshop March 20 & 21, 2007

2. Agenda  9:00 - 9:10 Who we are; What we do; How we can help you.  9:10 - 10:30 The Revenue Limit and What It Means for Your Budget Development Activities  10:30 - 10:45 Break

3. Agenda  10:45 - 12:00 Equalization Aid – How It Works, How to Explain Changes, How to Project Aid – Fund 80, Short Term Borrowing, OPEB  12:00 - 12:45 Lunch  12:45 - 2:00Counting Kids, Days & Hours of Instruction, WUFAR, Special Education, Cost Comparisons

4. Finance Team….Who We Are

5. Finance Team….What We Do  Collect data reports from districts in order to distribute over $5.8 billion in State Aid and Credits in 2006-07, including $5.3 billion in General and Categorical Aids  Provide data to individuals, organizations, state and federal agencies  Provide consultation services as needed  Provide a website and training opportunities to help people help themselves

6. Finance Team…. How We Can Help You  Web Page Publications & Tutorials  Phone calls, e-mail  Provide information via our listserv (we recommend you subscribe – see information under “Mailings/List Serve” on the green scan bar on our website)  New Admin. Workshop - March 20 & 21

7. How We Can Help You How We Can Help You  New Business Manager/Bookkeeper Workshop - TBD  Spring Finance Workshops - April  State Superintendent’s Workshop - Sept.  “Getting It Right” Workshop - Oct.  January WASB/WASDA/WASBO Convention  Various WASBO and WASDA Seminars throughout the year

8. How We Can Help You Bookmark this page !!!!! http://dpi.wi.gov/sfs/index.html

9. Let’s Look at the Handouts…  Roadmap of the School Financial Services Website  SAMPLE 06-07 Revenue Limit Worksheet  District-Specific 06-07 Revenue Limit Worksheet (not final)  District-Specific 07-08 Estimated Revenue Limit Base  District-Specific 06-07 Percentage Method Equalization Aid Worksheet  District-Specific 06-07 Oct 15 General Aid Cert  06-07 Equalization Aid Executable Worksheet for Projections  Fund 10 SAMPLE Planning Budget  Budget Timeline Model  Slides from Power Point Presentation

10. Our Website: Get it On Your Radar

11. REVENUE LIMIT: THE BASICS …what a new administrator needs to know to calculate the revenue limit…

12. The “Big Picture” Revenue Limit Calculation Budget Planning Papers - the Revenue Limit computation controls from 70-90% of your budget, having a direct effect on budget development activities. - districts begin to develop their new-year Revenue Limit estimates in January as they begin to develop the budget for the upcoming fiscal year. - remember to update your Revenue Limit Calculation and budget planning documents as you receive new information throughout the year.

13. The revenue limit is a limit (or control) on the revenue a school district is entitled to receive from: 1.) General State Aid (Equalization Aid) (Equalization Aid) 2.) Local Levies (10, 38, 41) 3.) State Computer Aid It is not an expenditure control or spending limit. REVENUE LIMIT: DEFINITION

14. 2 3 4 5 6 1 1.Build Base from Prior-Year Data: Sum (+): Prior-Year Oct 15 General Aid Prior-Year Computer Aid Prior-Year Levies for 10, 38, & 41 Minus (-): Revenue Limit Penalty Non-Recurring Exemptions 7 89 10 11 12 13 14 Example: (+) Prior-Year Oct 15 Aid = $5,889,472 (+) Prior-Year Computer Aid = $2,186 (+) Prior-Year Levy, Fund 10 = $1,399,134 (+) Prior-Year Levy, Fund 38 = $96,803 (-) Prior-Year Penalty = $8,273 (-) Prior-Year Non-Recurring = $315,000 (-) Prior-Year Decl Enroll = $66,176 $6,998,146 REVENUE LIMIT: THE BASICS

15. 2 3 4 5 6 1 2.Base 3-Year Membership Average: - Current Year (year you are computing) - Previous Year - 2 nd Previous Year Base Average - 3 rd Previous Year (3 rd Friday in September FTE, plus 40% of Summer School FTE) 7 89 10 11 12 13 14 REVENUE LIMIT: THE BASICS Example: Fall 2003=857, Fall 2004=848, Fall 2005=834 Average = 846

16. 2 3 4 5 6 1 3.Base Per-Member: Divide the Base by the 3-year membership just computed to get a Base Per Member. 7 89 10 11 12 13 14 REVENUE LIMIT: THE BASICS Example: $6,998,146 ÷ 846 = $8,272.04

17. 2 3 4 5 6 1 4.Allowable Per-Member Increase: The Per-Member increase is determined by the State and applies to all districts. 7 89 10 11 12 13 14 REVENUE LIMIT: THE BASICS Example: For the 2006-07 Revenue Limit, this number was $256.93

18. 2 3 4 5 6 1 5.New Maximum Revenue Per Member: Allowable Per-Member Increase is added to the Base Per-Member. 7 89 10 11 12 13 14 REVENUE LIMIT: THE BASICS Example: $8,272.04 + $256.93 = $8,528.97

19. 2 3 4 5 6 1 7 89 10 11 12 13 14 6.Current 3-Year Membership Average: - Current Year (year you are computing) - Previous Year - 2 nd Previous Year - 3 rd Previous Year (3 rd Friday in September FTE, plus 40% of Summer School FTE) REVENUE LIMIT: THE BASICS Current Average Example: Fall 2004=848, Fall 2005=834, Fall 2006=815 Average = 832

20. 2 3 4 5 6 1 7 89 10 11 12 13 14 7.New Revenue Limit, No Exemptions: New Maximum Revenue Per Member is multiplied by the Current 3-Year Membership Average. REVENUE LIMIT: THE BASICS Example: $8,252.97 x 832 = $7,096,103

21. 2 3 4 5 6 1 7 89 10 11 12 13 14 8.Recurring Exemptions: - Prior Year Carryover (100%) - Transfer of Service - Transfer of Territory - Federal Impact Aid Loss - Recurring Referendum to Exceed REVENUE LIMIT: THE BASICS Example: $89,964

22. Transfer of Service New costs related to new transfer-in pupils in specified special education and limited English proficient programs may be eligible for a revenue limit exemption. - Student has moved into your district from another Wisconsin Public School or county Birth to 3 Program - Complete form on website: http://www.dpi.state.wi.us/sfs/transerv.html http://www.dpi.state.wi.us/sfs/transerv.html - Involves getting verification of enrollment from transfer district - Keep track of eligible students – get verifications throughout the year - Submit all verifications in one packet to DPI by July 1 REVENUE LIMIT: THE BASICS

23. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 9.New Limit with Recurring Exemptions: REVENUE LIMIT: THE BASICS Example: $7,096,103 + $89,964 = $7,186,067

24. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 10. Non-Recurring Exemptions: - Non-Recurring Referendum to Exceed - Declining Enrollment Exemption - Other REVENUE LIMIT: THE BASICS Example: $408,819

25. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 11. New Revenue Limit with All Exemptions: REVENUE LIMIT: THE BASICS Example: $7,186,067 + $408,819 = $7,594,886

26. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 12. October 15 Certification of General Aid: Shortly before each October 15, the State certifies to each district an aid amount that must be used in the Revenue Limit computation at this point. REVENUE LIMIT: THE BASICS Example: $5,853,198

27. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 13. Allowable Limited Revenue to Come From the Sum of: - Fund 10 Levy - Fund 38 Levy - Fund 41 Levy - Computer Aid REVENUE LIMIT: THE BASICS Example: $7,594,886 - $5,853,198 = $1,741,688

28. 2 3 4 5 6 1 7 8 9 10 11 12 13 14 14. At This Point, the District Determines the Amounts for the Following: - Fund 10 Levy (General Operations) - Fund 38 Levy (Non-Referendum Debt) - Fund 41 Levy (Capital Expansion) - Computer Aid REVENUE LIMIT: THE BASICS Example: Sum Must not Exceed $1,741,688

29. …technically, we are done with the revenue limit levies; however, we are not done with determining the total levy to be apportioned to the municipalities… REVENUE LIMIT: THE BASICS 15. District Determines the Amounts for the Following Non-Controlled Levies: - Fund 39 Levy (Referendum Debt) - Fund 80 Levy (Community Service) - Fund 10 Levy Chargeback

30. Total Levy - Fund 10 Levy (Operations) - Fund 38 Levy (Non-Referendum Debt) - Fund 41 Levy (Capital Projects) - Fund 39 Levy (Referendum Debt) - Fund 80 Levy (Community Service) - Fund 10 Levy Chargeback Computer Aid is NOT included in the total levy amount apportioned to the municipalities. It is an aid payment from the State. REVENUE LIMIT: THE BASICS

31. The revenue limit is a limit (or control) on the revenue a school district is entitled to receive from: 1.) General State Aid (Equalization Aid) (Equalization Aid) 2.) Local Levies (10, 38, 41) 3.) State Computer Aid This is about 70% - 90% of your total Fund 10 budget. Points to Remember About the Revenue Limit

32. Does NOT control other sources of revenue such as: - Referendum Debt Levy (Fund 39) - Community Service Levy (Fund 80) - Categorical Aids - Grants - Fees - Gate Receipts - Donations

33. Certain numbers from the Revenue Limit computation, together with salary and other local expenditure and revenue budget estimates, serve as a guide for the district as it moves through budget development, in particular, Fund 10. Revenue Limit Computation & Budgeting

34. REVENUE LIMIT

35. Using This Data for Budgeting Rev LimFund 10 Line 18 Src 211 Line 15C Src 212 Line 12 Src 621 Line 17 Src 691 (yellowed lines represent the amounts that come from the controlled portion of the Revenue Limit.)

36. The “Big Picture” Revenue Limit Calculation Budget Planning Papers 3 rd Friday Count, Oct 1 Tax Values, October 15 Aid Budget Adjustments to BOE Send tax bills. PI-1508 Budget Report PI-1504 Annual Meeting? BOE Votes on levies. Certify Levies via PI-401 & PC-401 (in portal)

37. 2 3 4 5 6 1 7 8 9 10 11 12 13 - Remember that any “new year” revenue limit computation begins by using the prior- year’s aid and levy data. - The district’s 2007-08 Revenue Limit begins with 2006-07 data. - To begin building your 07-08 Revenue Limit, start with step 1, using the 06-07 data as the “prior year.” REVENUE LIMIT: 2007-08 14

38. REVENUE LIMIT The most up-to-date Revenue Limit worksheets can be found on the School Financial Services website: http://www.dpi.wi.gov/sfs/index.html Under: Late Breaking Budget Development and Planning Worksheets DPI-Printed

39. BUDGET TIMELINE MODEL Adapt this timeline to your district’s activities. Use at your discretion!!!!! Make sure you know your contractual obligations with regard to layoff notices.

40. Let’s take a break!

41. EQUALIZATION AID CALCULATION

42. Equalization Aid  Why do you need to know how to calculate aid when DPI calculates it for you? Because you will be asked by your board members, constituents and the mediaBecause you will be asked by your board members, constituents and the media So you can make sure it’s accurate and, if it changes, figure out whySo you can make sure it’s accurate and, if it changes, figure out why Because you may want to do estimates and “what ifs”…Because you may want to do estimates and “what ifs”…

43. Congratulations, it’s your lucky day! YOU ARE ELIGIBLE FOR UP TO $10,000 IN COLLEGE SCHOLARSHIP MONEY!!! (Not really. We’ll eventually connect this fake give-away to Equalization Aid.) Equalization Aid - How It Works

44. 20%80%50% Equalization Aid - How It Works

45. How Did the College “Share” in the Tuition? Compute actual scholarship amount. What you could pay.$10,000 amount. Compare, then

46. Equalization Aid Formula  State “Shares” in District Cost  Aid is Based on a District’s Ability to Pay, as Measured by Property Wealth per Member Basic premise: The more property wealth per member a district has, the less state aid it will receive.

47. How Does the State “Share” in District Costs? Compute Equalized Aid State Guaranteed Value Per Member Compare, then District Value Per Member

48. 3 District Factors 1. Costs (“Shared Cost”) 2. Wealth/Property Taxbase 3. Pupils (“Membership”) * * * All Prior-Year Data (2005-06 data is used for 2006-07 aid.)

49. Total General Fund (Fund 10) Expenditures plus (+) Total Debt Service Funds (Funds 38 & 39) Expenditures minus (-) all local misc. revenue, grant revenue, and categorical aid. Known as “Shared Cost” 1. District Factor – Costs (prior year)

50. 2. District Factor - Wealth/Taxbase (prior year) Property Taxbase is Used to Determine Wealth and Ability to Support District Expenditures Uses Equalized Valuation or Fair Market Value (NOT Assessed Value)

51. 3. District Factor – Membership (prior year) F.T.E. = full-time equivalent 2 halftime (.50) kdg students = 1 F.T.E. Average of 3rd Friday F.T.E. - September 2nd Friday F.T.E. - January plus (+) F.T.E. Summer School (2006-07 aid uses September 2005, January 2006, and Summer 2005 numbers) Summer School = 48,600 minutes = 1 F.T.E.

52. Membership Who can you count for aid membership? Generally, residents for which you are financially responsible - i.e. you are paying for the student’s education. - Start with seat count. - Add in your residents who are elsewhere (and for which you are financially responsible). - Subtract non-residents being educated in your seats. (Double-check tuition waiver situations, and watch age limits.)

53. Aid membership also includes: -Youth Challenge Students -Part-time Attendance F.T.E. of Private/Home-Schooled Students -Foster Group Home Students See: http://www.dpi.state.wi.us/sfs/membrpt2.html Membership

54. Crucial Statistic: Value per Member = Total Equalized Value ÷ Membership Value Per Member

55. Positive Primary Aid Positive Secondary Aid Positive Tertiary Aid Equalization Aid – 3 Levels District Value per Member 10%90% 83%17% 50% Negative Tertiary Aid Negative Secondary Aid No Aid

56. Positive Primary Aid Positive Secondary Aid Positive Tertiary Aid Equalization Aid – 3 Levels Negative Tertiary Aid Negative Secondary Aid No Aid

57. So, how does this work for my district? Percentage Method on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning Equalization Aid

58. How can I determine where I am in the aid formula? Aid Formula Position on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning Equalization Aid

59. How can I explain changes in my district’s aid? 7-Year History on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning Equalization Aid – Explaining Changes Across Time

60. How can I figure an aid estimate for 07-08? Simplified Percentage Method of Estimating Equalization Aid http://www.dpi.wi.gov/sfs/index.html NORMALLY Under: Worksheets/Executable Budget Development and Planning Equalization Aid

61. You don’t have the data you need right now to make an accurate estimate of your 2007-08 aid – it’s a State budget year, and the budget details will probably not be decided upon until the summer. It’s to early for DPI to provide accurate guarantees. Equalization Aid

62. Equalization Aid, Line 12 of the Revenue Limit Worksheet  On October 15, 2007 DPI will certify an amount to districts. It is the amount of aid the districts will receive in 2007-2008  We will provide the required estimate shortly before July 1  Place that amount on line 12 of the 2007-08 revenue limit worksheet.

63. Community Service Fund (Fund 80)

64. Community Service Fund   The School Finance Team provides general guidance regarding community service fund activities based on our interpretation of the statutes.   We advise districts to seek legal counsel should they question either the information or the interpretation.   Disputes over community service fund activities are handled locally.

65. Community Service Fund   The School Board establishes the fund per state statute 120.13(19);   It must meet budget requirements per statute 65.90;   If an operational levy is needed, it must be adopted at the annual meeting per statutes 120.10(8) and 120.12(3). – the levy is outside the revenue limit

66. Community Services Fund   Key Point to Remember: Community service activities and programs outside the district’s regular and extracurricular programs for students. WI State Statute 120.13(19)

67. Community Service Fund Questions to Ask….   Is the program outside the usual instructional timeframe?   Is it open to everyone in the community? (age appropriate)   Is it fee supported?   Are costs directly related to the activity included?

68. Community Service Fund Questions to Ask….   If you can say “yes” to all those questions, the program may be appropriate for inclusion in Fund 80.

69. Common Community Service Fund Activities   Recreational After-school swimming Softball & basketball leagues   Adult Education   Community Library   After School Day Care http://www.dpi.wi.gov/sfs/comm_serv.html

70. SHORT TERM BORROWING

71. Short Term Borrowing PURPOSE:   Cash flow   It can actually be for any legal purpose Be Careful!

72. Short Term Borrowing AUTHORITY:   Wisc. Stat. 67.12(8)   An annual meeting must adopt levies   DPI certification of revenues is not required

73. Short Term Borrowing AMOUNT:   Do a cash flow analysis   It works like a revenue anticipation note   Maximum - 1/2 of a district’s revenue limit   DPI notification is not required   Do not report as long term debt!

74. Short Term Borrowing TERMS   By two-thirds Board resolution   When - anytime after levy adoption   Due - November 1 of the year following the year of the loan   Pay interest as charged by the lender   It is NOT recorded as debt service in Fund 38 or Fund 39!

75. Short Term Borrowing ACCOUNTING   Receive Principal - Increase Cash, Increase Balance Sheet 10B 811 100   Repay Principal - Reduce Cash, Reduce Balance Sheet 10B 811 100   Pay Interest Expense - Reduce Cash, Increase 10E 283 000 682 (record interest as of June 30 th, if note is still outstanding)   Receive Interest - Increase Cash, Increase Source 10R 280

76. Short Term Borrowing RED FLAGS   Borrow only what you need   Beware of federal limitations (rules of arbitrage)   Avoid tax money pledged to debt service   Seek legal counsel

77. Other Post Employment Benefits (OPEB)

78.   What is an OPEB? Compensation received after employment ends in exchange for the employee’s current service.   Includes post employment healthcare benefits (i.e. medical, dental, vision, Rx)   Implicit rate subsidies and retiree premiums based on blended active/retiree rates

79. OPEB  When must a district implement the GASB statements? GASB 43 Financial reporting for post employment benefit plans other than pension plans  Phase 1 - June 30, 2007  Phase 2 - June 30, 2008  Phase 3 - June 30, 2009 GASB 45 Accounting and financial reporting by employers for post employment benefits other than pensions  Phase 1 - June 30, 2008  Phase 2 - June 30, 2009  Phase 3 - June 30, 2010

80. OPEB   How does OPEB affect a district’s financial statements? Fund Financial Statements District-wide Financial Statements OPEB Liability

81. OPEB   Resources: Kathy Guralski – 608-266-3862 http://www.dpi.wi.gov/sfs/emp_benefit_trust_fund.html

82. Lunchtime!!!!!!!!

83. Let’s Talk About….   Counting Students   Days & Hours of Instruction   WUFAR   Special Education   Comparison Measures

84. Counting Students

85.   3 rd Friday in September Pupil Count   2 nd Friday in January Pupil Count   Summer School Report   Youth Challenge Academy Pupil Count   June Census

86. PI-1563 Pupil Count Report   Two Count Dates: September PI 1563 Pupil Count Report   3 rd Friday in September January PI 1563 Pupil Count Report   2 nd Friday in January (Districts may request a waiver to these dates as a result of school not being in session. – New count date is usually the Thursday before or Monday after.)

87. General Counting Guidelines   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. So how do we get there………

88. 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. - 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. + Adjusted Head Count Result is the students that are residents for which you are financially responsible for. =

89. Adjusted Head Count   The adjusted head count is converted to full-time equivalency (fte) for both revenue limits and equalization aid.   Incorrect data in the internet-based report will cause the fte for both revenue limits and equalization aid to be inaccurate. Data must be revised on-line.

90. Resources   http://www.dpi.wi.gov/sfs/membrpt2.html http://www.dpi.wi.gov/sfs/membrpt2.html General Count Instructions for the PI 1563 Workbook PI 1563 Pupil Count Workbook Form for Draft Use

91. Summer School FTE   Summer School starts the school year;   An Excel worksheet is available to calculate your Summer School FTE. http://dpi.wi.gov/sfs/summ_sch.html   Keep the Excel spreadsheet as your auditor may need to review the information used to calculate your summer school fte.

92. Summer School   The data on the front page of the Excel worksheet is reported to DPI on-line at the conclusion of summer school and is due in September.   The summer school report is one of the few reports that ask for an fte count as opposed to a head count.

93. Youth Challenge Academy   Wisconsin National Guard Challenge Academy is a residential program committed to improving the quality of life for 16 to 18 year old at-risk teens.   School districts with cadets must contribute a portion of the costs of students enrolled in the Challenge Academy from their district.

94. Youth Challenge Academy   State statute allows the school district to count the student, for revenue limit and equalization aid purposes, in the year in which the cadets attend the Academy   Districts report students in both September and January   Resources: http://www.dpi.wi.gov/sfs/doc/challfunding.doc

95. FTE for Revenue Limit Purposes   FTE generated from the PI-1563 pupil count report from September Count only   FTE generated from the September Youth Challenge Academy Report   40% of FTE identified in the Summer School FTE report

96. FTE for Equalization Aid Purposes   FTE generated from the PI-1563 pupil count report from September & January pupil count reports.   FTE generated from the September & January Youth Challenge Academy Reports   100% of the FTE identified in the Summer School FTE report   Adjustment for Part-time Private or Home-based Students   Adjustment for certain foster/group home students.

97. On-Line FTE Reports

99. Membership Audits   A district may be selected to have a membership audit.   During a membership audit, the district auditor will review the accuracy of the September, January, Summer, and Youth Challenge Count Reports

100. Membership Audits   Criteria for District Selection: Random Selection District audited in the prior year having a net error rate in excess of 1% from the reported membership, for either count date. The prior year January pupil count report was not received on time.

101. June Census   All districts must report the number of residents that are at least 4 years old but not yet 21.   HEAD COUNT – not an FTE Ages 4-13 if in a K-8 district Ages 14-20 if in a high school district

102. June Census   Per 120.18 Wisconsin Statutes - 2 methods available to calculate the census head count Conduct a Physical Census on June 30 th - 120.18(1)(a)1 Generate a number based on a mathematical calculation - 120.18(1)(a)2.

103. June Census – Why?   The headcount entered into the census report is used to calculate the amount of common school fund (library) aid the district is to receive.   The money the district receives should be spent within the same fiscal year. An aid estimate is given in January and paid in May.

104. Days and Hours of Instruction

105. Days of Instruction   115.01(10) School Day. (a) School days are days on which school is actually taught and the following days on which school is not taught: 1. 1.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… 2. Days on which school is closed by order of a local health officer, as defined in s. 250.01(5).

106. Days of Instruction Example   The District schedules 178 days of actual instruction and 2 days of parent teachers conference days in lieu of a day of actual instruction. Does this meet the 180 day requirement?Yes What happens if the district has 4 inclement weather days?The District must make up the day or ask for a waiver.

107. Days of Instruction Example   The District schedules 179 days of actual instruction and 2 nights of parent teacher conferences after the school day ends. Does this meet the 180 day requirement? No. A day may only be counted once. So if the students come in for instruction, the day is considered a face to face day. The evening parent conferences are not counted towards meeting the 180 day requirement. They may however, be counted as a day for your local teacher contract purposes.

108. Hours of Instruction   121.02(1)(f) Each school board shall annually scheduled at least: 437 hours of direct pupil instruction in kindergarten (A school board operating a 4-year old kindergarten program may use up to 87.5 hours of the scheduled hours for outreach activities.) 1,050 hours of direct pupil instruction in grades 1-6 1,137 hours of direct pupil instruction in grades 7-12.   A worksheet to calculate your district’s annual hours of instruction is available at: http://dpi.wi.gov/cal/days_hours_worksheet.html

109. Waiver for Days and Hours  The school district may request a waiver to the days requirement. The request should be made to: Michael George, Content and LearningMichael George, Content and Learning (608) 266-2364 michael.george@dpi.state.wi.us  There is no waiver process for the hours of instruction.

110. WUFAR

111. WUFAR - 101 Wisconsin Uniform Financial Accounting Requirements http://dpi.gov/sfs/wufar.html

112. WUFAR Structure   WUFAR is a multi-dimensional reporting system that can also be used as an accounting system.   Districts ARE NOT required to use the system for their accounting.   BUT, every district IS required to report to DPI using the system (Budget and Annual Reports )

113. WUFAR Account Format Fund Location Object/ Function Project Source ------------------------------------------------------- XX XXX XXX XXXXXX XXX flexibilitylimited flexibility

114. Account Dimensions   Fund: Stand alone accounting entity Balance Sheet, Revenues, and Expenditures for each fund Within fund, “Debits” must equal “Credits” (the fund must be self-balancing) Change in fund balance equals difference between fund revenues and expenditures

115. Other Account Dimensions   The Source dimension is used to classify revenues and other fund sources by their origins.   The Object dimension is used to identify the service or commodity used in accomplishing a function.   The Function describes the purpose for which a service or material object is acquired.

116. WUFAR   The WUFAR Accounting Structure allows for: Functional Costing Programmatic Costing

117. WUFAR – Identifying Costs?   Ex: HS Music Program Expenses Instructional Expenses Staff Training Maintenance on Equipment Transportation

118. WUFAR Account Format Fund Location Object/ Function Project Source --------------------------------------------------------------- XX XXX XXX XXXXXX XXX flexibilitylimited flexibility

119. WUFAR – Identifying Costs?   Instruction10 -400 -xxx -125000-790   Staff Trg.10 -400 -342 -221300-790   Maintenance10 -400 -320 -254410-790   Transport.10 -400 -341 -256740-790 -allows for both programmatic and functional costing- Fund Location-HS Object Function Program-Music

120. Special Education

121. Special Education Expense Coding   All special education expenses, regardless of funding source must be accounted for in fund 27   The function number and the project number are the most critical elements of the total account code

122. Special Education Expense Coding   Function Number Identifies the special education program   152000 – Early Childhood   158000 – Cross Categorical   156600 – Speech & Language   159200 – Substitutes

123. Special Education Expense Coding   The Business Office and the Special Education Department will need to work closely together to ensure that staff members are being charged to the appropriate program or function.   Appropriate staff licensure is important when assigning staff to various functions

124. Project Coding   The key to identifying the correct project code is …… ……understanding that the project code identifies how the expense is to be ultimately funded.

125. Project Number – 011   Use this project on all original object 100 – 900 expenditures when: the LEA is using only local dollars to fund the expenditure (no grant money reimbursement) the expenditure is directly state special education categorically aidable

126. Project 011-Aidable Expense Example Project 011-Aidable Expense Example   The school district incurs salary & benefit expenses for an appropriately licensed Early Childhood teacher, funded w/ local dollars. FundObjectFunctionProject 27100/200152000011

127. Project Number - 019   Use this project on all original object 100-900 expenditures when: the LEA is using only local dollars to fund the expenditure (no grant money reimbursement) the expenditure is NOT directly state special education categorically aidable

128. Project 019-Non-Aidable Expense Example Project 019-Non-Aidable Expense Example   The school district purchases supplies for an early childhood program w/local dollars. FundObjectFunctionProject 27410152000019

129. Project Number - 340   Use this appropriate IDEA grant project code of “341-349” on all original object 100-900 expenditures when: This expenditure is charged directly to an IDEA (flow-through, entitlement, etc..) grant. The LEA name on the grant is the same as this LEA.

130. Project 340 Grant Expense Example Project 340 Grant Expense Example   The LEA purchases supplies for an early childhood program that is reimbursed by grant dollars direct to this LEA. FundObjectFunctionProject 27410152000340

131. Project Number - 599   Use this project code on all original object 100-900 expenditures when: This expenditure is charged directly to a grant such as AODA, Drug Free, etc…. The LEA name on the grant is the same as this LEA.

132. Project 599 Grant Expense Example Project 599 Grant Expense Example   The LEA purchases supplies for an early childhood program that is reimbursed by grant dollars direct to this LEA. FundObjectFunctionProject 27410152000599

133. Project Number – 315/317   Use these projects, 315 (State) or 317 (Federal) on all original object 100-900 expenditures when: The expenditure is then charged to a state/federal grant of another LEA The LEA name on the state/federal grant is another school district (NOT this LEA)

134. Project 315/317Grant Expense Example Project 315/317Grant Expense Example   The LEA purchases supplies for an early childhood program that is reimbursed by another school district using federal grant dollars FundObjectFunctionProject 27410152000317

135. Project Number – 515/517   Use these projects, 515 (State) or 517 (Federal) on all original object 100-900 expenditures when: The expenditure is then charged to a state/federal grant. The LEA name on the state/federal grant is a “CESA” or a “CCDEB”, NOT this LEA

136. Project 515/517Grant Expense Example Project 515/517Grant Expense Example   The LEA purchases supplies for an early childhood program that is reimbursed by a CESA or CCDEB using federal grant dollars FundObjectFunctionProject 27410152000517

137. Project Number - 091  Use this project on all original object 100- 900 expenditures when: The LEA is using only local dollars to fund the expenditure (no grant money reimbursement)The LEA is using only local dollars to fund the expenditure (no grant money reimbursement) The expenditure is directly reimbursed by a payment from CESA (using CESA local dollars – no grant money)The expenditure is directly reimbursed by a payment from CESA (using CESA local dollars – no grant money)

138. Project 091 CESA Package Program Example Project 091 CESA Package Program Example   The host district of a CESA package program purchases supplies for an early childhood program that is reimbursed w/local dollars by CESA. FundObjectFunctionProject 27410152000091

139. Project Number – 092   Use this project on all original object 100- 900 expenditures when: The LEA is using only local dollars to fund the expenditure (no grant money reimbursement) The expenditure is directly reimbursed by a payment from a CCDEB (using CCDEB local dollars – no grant money)

140. Project 092 CCDEB Package Program Example Project 092 CCDEB Package Program Example   The host district of a CCDEB package program purchases supplies for an early childhood program that is reimbursed w/local dollars by a CCDEB. FundObjectFunctionProject 27410152000092

141. Special Education Categorical Aid   Entities eligible to receive state special education categorical aid: School Districts CESAs CCDEBs 2R Charter Schools

142. Special Education Categorical Aid   Based on the information reported in the special education annual report, the district’s special education categorical aid is calculated   the aid is paid based on prior year aidable expenditures (aid paid in 2006-07 is based on expenditures from 2005-06)

143. Special Education Categorical Aid   Categorical may be received either directly or indirectly: Direct: Your district receives aid directly from DPI as a result of an expense coded to an 011 project Indirect: Your district reimburses another entity for expenses that the other entity coded to an 011 project. The other entity transits your share of the aid to your district.

144. Special Education Categorical Aid   Due to the high amount of eligible expenses, the amount of aid paid is prorated to approximately 28%.   Aid is paid in multiple payments (Nov 15%, Dec 15%, Jan 15%, Feb 15%, March 15%, and June 25%)

145. Special Education Categorical Aid on “HOLD?”   What may cause categorical aid to be withheld on an individual’s salaries and benefits “No Valid License” Inappropriate allocation of salaries/benefits to fund 27 for social workers, psychologists, nursing, and guidance

146. No Valid License  “N  “No Valid License” listing on June 30 th Identifies staff not properly licensed for the teaching assignment listed on the PI 1202 Auditor required to report to DPI salaries, benefits, and account structure (even in funds other than 27) for all individuals on the “no valid license” listing.

147. Allocation of salaries and benefits to fund 27   Salaries and benefits of professionals working in both the regular education and special education areas must be allocated between fund 10 and fund 27 based on time and costs School Social Worker School Psychologist School Nurses (Registered Nurses, licensed by WI Department of Regulation and Licensing) School Counselors

148. Special Education Fiscal Reporting   Districts are required to submit both a special education budget and annual report that is currently separate from the full SAFR budget and annual report   The special education budget/annual program is located on either a staff member’s individual hard drive or on a network drive within the district.

149. Special Education Fiscal Reporting   The current special education budget/annual software program is outdated and can no longer be updated.   As a result, you will find that updates to the WUFAR and changes to special education law can not be reflected in the current report. Alternative reporting is sometimes used.

150. Grant Payments Between Entities   For entity that is not the grant holder: Code expenses to the appropriate 315, 317, 515, 517 project number When reimbursed by the other grant-holding entity, receipt the funds into the corresponding source (315, 317, 515, or 517) Expenses = Revenues Project 517 Expenses = Source 517 Revenue

151. Grant Payments Between Entities   For the district who is the grant-holder: Code the reimbursement to the appropriate project (340 or 599) In the special education report, answer “yes” to paying another LEA for services from your grants, identify the entity, and the amount paid

152. Grant Payments Between Entities   How does DPI verify grant payments between entities? Special Education Report Edit   Verify the amount paid and reported by the reimbursing district is equal to the amount reported by the non-grant holding district in the appropriate 315, 317, 515, or 517 project lines.

153. Grant Payments Between Entities   District A purchases Early Childhood supplies ($100) that will ultimately be reimbursed by CESA using Flow-Thru Funds District A Expense: 27E.xxx.410.152000.517= $100 District A Revenue: 27R.517 = $100 CESA Expense: 27.E.382.431000.340 = $100 Project 517 Expenses = 517 Revenues = Project 340 Expenses

154. Grant Payments Between Entities Example   On the special education report: District A – enters nothing but the expense in the appropriate account number CESA - answers “yes” to paying another LEA for services from a grant, identifies District “A”, and the amount paid ($100)

155. Deductible Receipts   What is a deductible receipt? A deductible receipt is created when an entity incurs an aidable expense (coded to project 011) that is ultimately reimbursed by another entity with grant funds.

156. Deductible Receipts   How should entities report deductible receipts? The district incurring the original expense should:   Code the original expense with the appropriate project. (mostly likely 011 and 019)   Code the reimbursement to the appropriate 315, 317, 515, or 517 source code.   In the special education report: Answer “yes” to receiving deductible receipts, identify the entity, and the amount receipted (only the 011 amount) On the 27D line, enter the amount of 011 expenses that were reimbursed by another entity with grant funds

157. Deductible Receipts   How should entities report deductible receipts? The district reimbursing the original expense with grant dollars should:   Code the reimbursement expense with the appropriate project. (mostly likely 340 or 599)   In the special education report, answer “yes” to paying another LEA for services from their grants, identify the entity, and the amount paid

158. Deductible Receipts   How does DPI verify deductible receipts? Special Education Report Edit   Verify the amount paid and reported by the reimbursing district is equal to or less than the amount received and reported on the deductible receipt question and on the 27D lines by the entity incurring the original expense.

159. Deductible Receipt Example   District A provides Early Childhood services to multiple districts. District B’s share of the program include salary ($400), benefits ($200), and materials ($100). District B reimburses District A using federal grant money.   District A Expense: 27E.xxx.110.152000.011 $400   District A Expense: 27E.xxx.2xx.152000.011 $200   District A Expense: 27E.xxx.410.152000.019 $100   District A Revenue: 27R.317 $700   District B Expense: 27E.xxx.382.436000.340 $700

160. Deductible Receipt Example   On the Special Education Report: District A:   Answers “yes” to “did your district receive deductible receipts”   Identifies District “B” and the amount of the deductible receipt $600   Enters $600 in 27D152000 000 011 District B:   Answers “yes” to paying another LEA for services from a grant, identifies District “A”, and the amount paid ($700)

161. Special Education Reporting Changes Ahead!   The finance team is currently in the design phase of creating a new special education fiscal report.   The goal is to integrate the fund 27 detail with the full SAFR Budget/Annual Report beginning with the 2008-09 SAFR Budget Report.

162. COST PER PUPIL: THE OLD “COMPARE” GAME

163. Basic Per Member Costs   Shared Cost comes from Fund 10, Fund 38, & Fund 39   Comparative School Costs – 3 measures Current Educational Cost Total Education Cost Total District Cost http://www.dpi.wi.gov/sfs/cmprvcst.html

164. What is Shared Cost?   It’s calculated by taking the expenditures in Funds 10, 38 & 39 and subtracting deductible receipts   Shared cost is one of the factors used in calculating a district’s equalization aid.   Shared Cost per Member is usually a smaller cost measure than others (no categorical aids, fees, etc.)

165. What is Comparative Cost?   It is published by DPI on-line in the Basic Facts. http://dpi.wi.gov/sfs/basic.html   It can be used to compare a district’s cost with other districts.   It itemizes costs into: Current Educational Cost Total Education Cost Total District Cost

166.   Total Current Educational Cost (TCEC) This measure attempts to identify overall instructional and instructional support service costs attributable to district residents. Excludes transportation Excludes facility acquisition expenditures Excludes inter-fund transfers Excludes revenues for instructional services the district provides to non-resident pupils such as tuition receipts Comparative Cost

167.   Total Education Cost (TEC) equals: Total Current Educational Cost plus Transportation Expenditures for facility acquisitions charged to the General, Special Project, and Capital Expansion funds. Debt service principal and interest Comparative Cost

168.   Total District Cost (TDC) equals: Total Educational Cost plus Food Service costs (fund 50) Community Service costs (fund 80) It should be noted that food and community service activities are usually funded with fees and other program revenue, requiring little or no property tax subsidy.) (It should be noted that food and community service activities are usually funded with fees and other program revenue, requiring little or no property tax subsidy.) Comparative Cost

169. Other Groupings There are many ways of showing specific revenues or expenses when presenting budget or annual reports to your Board. -function -object -source These reports reflect local practice and preference. http://www2.dpi.state.wi.us/sfsdw/

170. Questions?   Visit our web site: http://dpi.wi.gov/sfs/index.html

171. Or call:   Brad Adams, Consultant, 267-3752   Lori Ames, Consultant, 266-3464   Karen Kucharz, Consultant, 267-9707   Jerry Landmark, Assistant Dir., 267-9209   Gene Fornecker, Auditor, 267-7882   Natalie Rew, Auditor, 267-9212   Kathryn Guralski, Auditor, 266-3862   David Carlson, Director, 266-6968