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February 5, 2014Karen Kucharz Robbe
Finance ConsultantSchool Financial
Services
SCHOOL FINANCE ESSENTIALS
BUILDING YOUR FIRST-YEAR BUDGET
WASDA NEW ADMINISTRATOR’SWORKSHOP IV
Handouts for Today
General (white) Generic Budget-Building Timeline
Sample Preliminary Budget
Cast Forward Membership Example
Revenue Limit-Related (yellow) 2014-15 District-Specific Revenue Limit Base
District-Specific Revenue Limit Longitudinal
District-Specific Sources of New Revenue Limit Authority
Equalization Aid-Related (green) Sample 2013-14 Equalization Aid % Method
2013-14 District-Specific Equalization Aid % Method
The budget process relies a great deal on the exchange of information between the district and the Department
of Public Instruction (DPI) throughout the year.
The School Finance Team at DPI provides an extensive finance website, resource materials, and phone
consultation to assist districts.
• Information• Data
• Support
DPI Finance Team….How Can We Help You?
Become familiar with our website at:
http://sfs.dpi.wi.gov/
We will be navigating to this website throughout our presentation today to introduce you to what is out there related to budgeting….but….
Don’t hesitate to call one of us with questions or guidance! Sign up for our listserv – timely messages updating you on
school finance topics of concern – under the “Mailings/ListServe” link on the green scan-bar on the SFS Homepage.
WASDA Seminars (1 more this year. Slips of paper on tables – what would you want to hear from the DPI Finance Team in May?)
DPI Finance Team….How Can We Help You?
School Financial Services Homepage
http://sfs.dpi.wi.gov/
SAFR PortalFinancial Data HomeNon-Financial Data
Home
Budgeting Cycle
The school district budget development process is cyclical in nature and builds upon itself from
year to year.
Learn from the past Review today Forecast the future
(handout)
Budget Roadmap
Budget Planning Papers(basis for full budget)
3rd Friday Count,Oct 1 Tax Values,October 15 Aid Certify Levies via
PI-401 (in portal)
Budget Adjustments to BOE
Send tax bills.PI-1508
Budget Report PI-1504
Annual Meeting?
OriginalBudget
Revenue Limit Calculation
Preliminary Budget?
Limitation imposed by State Law on the revenues that public school districts in Wisconsin can raise from local Property Taxes* & State General Aid.
……not an expenditure control……
A district’s Revenue Limit will determine approximately 85-95% of a school district’s
General Fund Revenue Budget.
Revenue Limits
*General Fund (10), Non-Referendum Debt Service (38), Capital Projects Funds (41)
Controlled Revenue Under the Limits
Local Property Taxes: 43%
State General Aid
39%
State Categorical Aid 5%
FederalAid9%
Misc. Local Revenue4%
2011-12Statewide
DataGeneral Fund
2014-15 Revenue Limit Computation(the data you need to gather)
Property Values(Oct 1)
Membership (Counting Students)
Debt Levies
Equalization Aid
(Oct 15)
High Poverty Aid
Chargeback Levy
Recurring Exemptions
(???)
Non-Recurring
Exemptions(???)
Other Levies
?
?
?
?
?
Non-Revenue Limit Revenues &Expenditure Items
?
?
?
?
?
Estimating State
Categoricals
Utilities & Other
ExpensesEstimating
State & Federal Grants
WUFAR
Individual Building Budgets
Personnel Costing
Counting Students
Counting Students(one of the most important things you will do)
3rd Friday in September Pupil Count
2nd Friday in January Pupil Count
Summer School Report
Youth Challenge Academy Pupil Count
June Census (Library Aid)
Counting Students
3 Questions for Counting Guidance
Key question # 1 – Is the pupil a resident of the district?
Key question # 2 – Is the district paying for the pupil’s
education?
Key question # 3 – Is the pupil present for instruction on the count date or meets the “before and after” rule?
Who is a Resident?
Not defined by statute – residency is determined by the local district.
1.) Is the child living in the district with his/her parents?
2.) What about other situations? – there is case law - i.e. Thayer Ruling
A minor may have, for school purposes, a residence other than that of his parents. The school district was
incidental to the child’s reason for living in the district.
Use common sense…WHY are they there?
Pupil is in your seat, taught by your teachers. Full-time resident pupils in attendance elsewhere, but your
district is paying for their education. Open Enrollment Tuition Agreements CESA Programs Tuition Waivers (Be careful with this one. These
situations involve kids moving out/in of a district mid-year. Sometimes, you still can count a kid in the year they have moved out of your district….and, sometimes you can’t count a new kid that recently moved in. Please call us if you have a student in this situation.)
Who is Paying for the Education?
Basic Membership Count Rule
Count for membership those resident students in attendance for instruction on the count date.
….OR….
if they were absent on the count date,count only if the “Before and After” rule is true:
Count the student if he/she was present for instruction at least one day before the count date and at least one day after, and
didn’t change residency during the period of absence.
PI-1563 Pupil Count Process
Initial Head Count
Identify all students, regardless
of residency,
being directly
served by the
district.
Resident Reduction
sSubtract all resident students
being served by the district that don’t meet the
count guidelines. (less than full time,
outside age eligibility)
-Non-Resident ReductionsSubtract all
non-resident students
being served by
the district.
-Resident AdditionsAdd 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.
=
* Needs to be converted to fulltime equivalency.
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.
Preschool Special Education
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 1st.
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.
4 Year Old Kindergarten
5 Year Old – Half Day Program 5 Year Old – 3 Full Day Program 5 Year Old – 4 Full Day Program 5 Year Old – 5 Full Day Program 5 Year Old – Blended Program
The student must be at least 5 years of ageon or before September 1st.
5 Year Old Kindergarten (program
options)
Students must be 6 years of age on or before September 1st of the current year.
Ages 6-18
In all count categories, the student must meet the age requirement or be admitted under early admittance guidelines as defined by the Board of Education.
Grades 1 – 12
Early Admittance
Compulsory School Attendance
What About Homebound?
Pupils receiving appropriate homebound instruction will be included in the final adjusted count.
Depending on the program, they may or may not require an IEP.
Most often, they will be on a “homebound” teacher’s log which will verify that they received instruction directly by the district.
In this case, the pupil would be on the initial headcount. Use the basic membership “count” rules.
Age 20 vs. 21?
If a regular education student is 20 when he/she enrolls and receives instruction, the district must provide services and can count the student.
If a student enrolls prior to turning 21, but turns 21 before attending classes, the district is not required to provide services and the student cannot be counted.
If a student turns 21 prior to enrolling and receiving instruction, the district is not required to provide services and cannot count the student.
If a special education student is 20 prior to the first day of classes according to the school calendar, the student can enroll any time during the year, even after turning 21, and the district must provide services and can count the student.
Youth Challenge Academy (YCA)
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. In 2012-13, that cost was $4,884. The Academy provides the cost number based on actuals.
Academy is responsible for determining district of residence.
All YCA students are reported on in the SAFR, Non-Financial Data, Youth Challenge Academy report.
Youth Challenge Academy (YCA)
State statute allows the school district to count the student for revenue limit and equalization aid purposes. The Youth Challenge Academy online report will assure that proper membership credit is given to each district.
Districts answer questions about students in both September and January reports.
Just a note: The January status of students appearing in your September YCA Report must be verified. Why? Sometimes they end up back in your seats in January, and if they were in the Challenge Academy in August, you automatically get credit for them in January.
Resources:http://www.dpi.wi.gov/sfs/doc/challfunding.doc
Summer School Pupil Count Summer School starts the school year.
Calculating the district’s total summer school resident pupil membership minutes.
Dividing the total by 48,600 and rounding to the nearest whole number.
Not a head count.
A worksheet is available to assist in this process.http://sfs.dpi.wi.gov/files/sfs/xls/SS1804.xls
Keep the Excel spreadsheet as your auditor may need to review the information used to calculate your summer school FTE. (Auditor will check fees)
Online FTE Reports
The adjusted head count is converted to full-time equivalency (FTE) for both revenue limits and equalization aid in an online FTE report.
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.
On-Line FTE Reports
Find your district in the Finance Team Reporting Portal. http://dpi.wi.gov/sfs/index.html
On-Line FTE Reports
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.
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.
Membership Quiz
We are providing speech/language services to a pre-school age district resident in their home with one of our teachers. Can we
count?
Student is in residential treatment center placed there by the county. We are not footing the bill for that treatment, but we are still responsible for keeping the IEP up to date. Can we count?
Yes.
No.
Student attends up to (and on) the 2nd Friday count date and then withdraws on the next Monday. Can we count?
No. She is considered fulltime if the IEP dictates these services are her program. Same response if this was a non-
spec-ed “at-risk” student and an individual program of instruction is delivered.
We have an eighth grade special ed student who was expelled. The LD teachers goes to her home to give her instructions 40-
79% time. Do I count her in resident reduction part-time?
Yes.
June Census
All districts must report the number of residents that are at least 4 years old but not yet 21 as of June 30.
HEAD COUNT – not an FTE.
Ages 4-13 if in a K-8 district.
Ages 14-20 if in a high school district.
June Census
Per 120.18 Wisconsin Statutes - 2 methods available to calculate the census head count.
Conduct a Physical Census on June 30th - 120.18(1)(a)1.
Generate a number based on a mathematical calculation - 120.18(1)(a)2.
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.
Common School Fund Aid should be spent within the same fiscal year. An aid estimate is given in January and paid in May.
General Count InstructionsPI 1563 Pupil Count WorkbookPowerPointMedia Site
http://sfs.dpi.wi.gov/sfs_membrpt2
Resources on the Website
Estimating Membership
UW-Madison Applied Population Lab Independent Vendors Cast Forward
Find a reliable way to project membership as accurately as possible…(!)
Cast Forward Methodology
(handout)
Revenue Limit
Building the 2014-15 Revenue Limit
http://sfs.dpi.wi.gov/
2014-15 Revenue Limit
We have started this for you based on the data at DPI your 2013-14 Revenue Limit computation.
Location: SFS Homepage > District Budget Development & Planning > Revenue Limits > 2014-15 Revenue Limit
Worksheets enter
Explaining Change in Revenue Limit Authority
“I thought we were supposed to get an extra $75 per member. When I look at the
Revenue Limit, I don’t see it.”
In reality, the overall effect is a combination of what is happening with the district
membership AND the inflationary increase.
The Effects of Membershipand Inflationary Increase
1.) Increasing Membership
2.) Stable Membership
3.) Declining Membership
4.) Severely-Declining Membership
4 Districts
Your district will fall into one of these categories.See if you can pick it out!
Richfield J1
Base Revenue (Line 1) $4,313,968
Max Rev Lim (Line 7) $4,424,916
+ 8 Change in the 2 Membership Averages
Increase from $75 $75 X 451 = $33,825
Change from Membership +8 X $9,640.34 = $+77,122.72
Total Increase Explained $110,948
$110,948 Increase
Richmond
Base Revenue (Line 1) $4,821,717
Max Rev Lim (Line 7) $4,856,142
Increase from $75 $75 X 459 = $34,425
Change from Membership 0 X $10,579.83 = $0
Total Increase Explained $34,425
$34,425 Increase
0 Change in the 2 Membership Averages
Cameron
Base Revenue (Line 1) $7,937,122
Max Rev Lim (Line 7) $7,956,126
Increase from $75 $75 X 868 = $65,100
Change from Membership -5 X $9,219.15 = $-46,096
Total Increase Explained $19,004
$19,004 Increase
-5 Change in the 2 Membership Averages
Adams-Friendship
Base Revenue (Line 1) $15,911,153
Max Rev Lim (Line 7) $15,911,153
Increase from $75 $75 X 1,752 = $131,400
Change from Membership -53 X $9,156.71 = -$485,306
Hold Harmless (Line 7B) +$353,903
Total Increase Explained $-3
$0 Increase
-53 Change in the 2 Membership Averages
Difference is rounding.
Where Is This Data For My District?
“Sources of New Year Revenue Limit
Authority”
Location: SFS Homepage > Longitudinal Data > Revenue Limits
http://sfs.dpi.wi.gov/sfs_buddev_rl
(handout)
Revenue Limit ExemptionsLines 8 & 10
Exemptions to the revenue limit allow districts to levy additional amounts
in addition to the amount generated by
membership changes and the inflationary increase.
Recurring Exemptions (Are “permanently” in your base. Builds the base.)
Ex. Transfer of Service, Recurring Referendum
Non-Recurring Exemptions(Authority is available for a limited time – usually 1 year.)
Ex. Declining Enrollment, Non-Recurring Referendum
Know the Difference !
Recurring Exemptions – Permanently in Your Base
Base
Non-Recurring Exemptions – One Year
Only
Recurring
This Year Next Year
Base
Base
Non-Recurring
Base
This Year Next Year
Determined automatically in Revenue Limit Calculation:
Eligible Carryover (of prior year unused authority)
Requires approval by Electors:
Recurring Referendum
Other Recurring Exemptions (DPI works with district to determine amount):
- Transfer of Service
- Transfer of Territory
- Loss of Federal Impact Aid
Recurring ExemptionsLine 8
(permanent)
Referenda Timeline Bond Issues & Exceed Revenue Limit
Refer to slides in the November WASDA New Administrator’s Presentation for information.
Transfer of Service
The Transfer of Service Exemption (Wis. Stat. 121.91(4)(a)) allows a school district which
assumes responsibility for a program or service from another governmental unit to request and be granted an exemption to the district revenue
limit equal to the increased cost due to that program or service.
Special Education ESL Municipality
→ Increase in your levy limit – NOT an aid payment from the other district.
Transfer of Service
Make sure the communication flow between the Spec Ed Director or the Pupil Services Director and your finance area is set up such that the finance area is
aware of these opportunities.
Portal application is scheduled to open on February 24. Final deadline for applications is late August, but because you’ll need information from the other
governmental unit, don’t wait to start the process.
You may not choose levy to the max, but you will have the resource option
available.
***
http://sfs.dpi.wi.gov/transfer-service
Transfer of Territory &Loss of Federal Impact Aid
These are so rare, you would be aware of these because DPI
would be involved.
enter
Determined automatically in Revenue Limit Calculation:
Revenue Base “Hold Harmless”Declining Enrollment
Requires approval by Electors or Board:Non-Recurring ReferendumEnergy Efficiency Project
Other (DPI works with district to determine):Prior Year Uncounted Open Enrollment PupilsRefunded/Rescinded Taxes
Non-Recurring ExemptionsLine 10
(revisited each year, temporary)
Non-Recurring Referenda
Refer to slides in the November WASDA New Administrator’s Presentation for information.
Energy Efficiency Exemption
A district may get additional revenue limit authority to pay the costs of a project that results in the avoidance of, or reduction in energy costs or operational costs:
MUST be approved in a resolution of the District Board (not a vote put to the electorate).
Can pay for one-time costs or to pay debt service if the district borrows for project.
MUST enter into a Performance Contract with the vendor, whether using the exemption on a one-time basis or to pay debt service on borrowed funds for a project.
Energy Efficiency Exemption
Project costs, anticipated savings and cost-recovery timeline must be specified in the resolution; energy savings (performance results) must be reported at year end to the community and to DPI.
The Board must approve a resolution between July 1st & Nov. 1st in each year in which it claims the exemption (e.g., borrowing for 20 years = pass a resolution to use exemption for 20 years).
Enter resolution in the SAFR Portal in the same area you would enter a Referenda.
http://sfs.dpi.wi.gov/sfs_enrgyrevlim
Districts count resident pupils that are Open Enrolled-Out of the district because at year-end, the resident district pays the non-resident district for those pupils.
If an Open Enrolled-Out pupil was not counted by the resident district, that district has lost out on revenue authority for that pupil – but still has to pay the other district.
When this happens, the district works with DPI to determine the Open Enrollment payment for those “missed pupils” and that amount can be claimed by the district the following year.
Uncounted Prior-Year Open-Enrollment
Allows a district to re-capture revenue that was lost as a result of a determination that certain property tax revenues must returned.
Districts would be notified by the local taxing authority (municipality) if this occurs, then must notify the SFS Team about the refunded/rescinded tax.
Refunded or Rescinded Taxes
enter
Watch Change in Total Revenue Limit (Line 11) Across Time
Total Revenue Limit with
Exemptions
Year 1 Year 2 Year 3
Total Revenue Limit with Exemptions
Shrinking resources indicates the need for the districtto evaluate current programs for efficiency,
identifying cost-saving measures.
Total Revenue Limit with Exemptions
Where Can I Find This for My District?
“Multi-Year Revenue Limit Authority”
Location: SFS Homepage > Longitudinal Data > Revenue Limits
http://sfs.dpi.wi.gov/sfs_buddev_rl
(handout)
Equalization Aid
We used to say that there was little need to figure out your Equalization Aid at this time in budget preparation – that the revenue limit (Line 11) determines how much overall resource you have available between aid & levy.
While this is true, a general knowledge of where your district is (and is headed) in the aid formula is critical.
Even though you have the authority to levy for whatever you don’t get in aid….you might not be able to…..your levy rate might be a hot-button issue in your district.
DPI will provide an estimate in July and October.
Equalization Aid Basics
Equalization Aid
Property Tax Base
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
DISTRICT VALUE PER MEMBER
DIS
TR
ICT
SH
AR
ED
CO
ST
PE
R M
EM
BE
R
Positive Primary Aid
Positive Secondary Aid
Positiv
e Tertiary
Aid
District Value per Member
10% 90%
75%25%
50%50%
Equalization Aid Formula
Sample District #1 ResultsPer-Pupil Funding
DISTRICT10% x $1,000
= $100
25% x $7,000
= $1,750
50% x $4,000
= $2,000
$3,850
STATE90% x $1,000
= $900
75% x $7,000
= $5,250
50% x $4,000
= $2,000
$8,150
$3,850 + $8,150 = $12,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2,600,000
2,800,000
3,000,000
3,200,000
3,400,000
DISTRICT VALUE PER MEMBER
DIS
TR
ICT
SH
AR
ED
CO
ST
PE
R M
EM
BE
R
Positive Primary Aid
Positive Secondary Aid
Positive
Tertiary
Aid
Negative Tertiary Aid
Equalization Aid Formula
Sample District #2 ResultsPer-Pupil Funding
DISTRICT30% x $1,000
= $300
75% x $7,000
= $5,250
150% x $4,000
= $6,000
$11,550
STATE70% x $1,000
= $700
25% x $7,000
= $1,750
-50% x $4,000
= $-2,000
$450$11,550 + $700 = $12,250
Where Can I Find the Equalization Aid Percentage Computation For My
District?
“October 15, 2009 Equalization Aid Computation – Percentage Method – Algebraic
Format”
Location: SFS Homepage > Longitudinal Data > Equalization Aid
http://sfs.dpi.wi.gov/sfs_buddev_eq
(handout)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2,600,000
2,800,000
3,000,000
3,200,000
3,400,000
DISTRICT VALUE PER MEMBER
DIS
TR
ICT
SH
AR
ED
CO
ST
PE
R M
EM
BE
R
Positive Primary Aid
Positive Secondary Aid
Positiv
e Tertiar
y Aid
District Value per Member
Equalization Aid Formula
Watch Value Per Member Over Time
Where Can I Find Value Per Member Over Time
For My District?
“School Aid Property Valuation” (Used in the Equalization Aid Formula)
http://sfs.dpi.wi.gov/sfs_buddev_valuation
How can I explain changes in my district’s aid?
10-Year History on the Website
http://sfs.dpi.wi.gov/sfs_buddev_eq
Equalization Aid – Explaining Changes Across Time
A listing of the pertinent Equalization Aid factors that explain what is happening in
your district.
Equalization Aid Takeaways
1. One (1) pot of money is split over 424 school districts based on district values, membership, and expenditures. Changes in individual district data affect each other’s aid.
2. Equalization Aid “student count,” otherwise called membership, is an average of the September & January FTE counts, plus 100% of the Summer FTE, and some other minor adjustments.
3. Depending on district value-per member, some districts increase their aid by increasing expenses, while others decrease their aid by increasing expenses. It’s important to know where your district is in the formula.
4. Be aware of what is happening to your district over time.
Equalization Aid - Using What You Know(for table discussion)
1.) How would your district’s aid change if the membership was 10% higher? 10% lower?
2.) How would your district’s aid change if there was 10% more cost and same number of kids? 10% less cost?
Value per member would change.
All things being equal, more membership, more aid and vice versa.
Which tier changes? Positively-aided would get more aid. Negatively-aided would get less aid.
Equalization Aid - Using What You Know(for table discussion)
3.) How would your district’s aid change if the value was 10% higher? 10% lower?
Value per member would change.
All things being equal, more value would mean less aid and vice
versa.
Equalization Aid - Using What You Know
(for table discussion)
4.) I’ve heard about 2/3rds funding. Does this mean I will get reimbursed for 66% of my Shared Cost?
No. The percentage aid a district will get in the aid formula depends on the district’s spending and value per member.
2/3rds NEVER meant anything that applied directly to districts. This was a calculation done at the state level that
added together several revenue sources (total school levies, total state and categorical aid and total levy credit)
to determine the “pot” of aid to be distributed by the formula.
Estimating Equalization Aid
Keep in mind we don’t have the 14-15 guarantees or cost ceiling numbers for Equalization Aid yet - any estimate will be little more than a guess.
If you really need to estimate your Equalization Aid, call us.
DPI will provide an estimate in July and October.
High Poverty Aid is computed each biennium, so if your district received High Poverty Aid in 2013-14, it will
receive the same amount in 2014-15.enter
2014-15 Debt Levy
Your debt levies are determined by the payments you will
need to make in the calendar-year (!)
The debt payments you put into the
budget are the ones you will make during
the calendar year.
Long Term Debt
Financial Data Home
Long Term Debt
Aggregate payments due from EACH outstanding issue.
2014-15 Chargeback Levy
December Tax Bills Sent Out to Taxpayers Municipalities send the FULL amount to the district in 2-3
installments – January/February and August. In the meantime, municipalities start collecting from the
taxpayers.* * *
At some point in the future, they may deem a property’s tax “uncollectible.” Because they have already sent the whole amount, they will invoice you for the uncollectible amount. Accounts payable will need to cut a check back to the municipality.
The following year, you may re-levy for the uncollectible amount. Check with bookkeeper if you have had to return any of the tax
proceeds. (object 972) Outside of the Revenue Limit.
enter
Estimating Values
Official values are certified on October 1. enter
Transfer Key Pieces of the Revenue Limit to Your Budget
Papers
Revenue Limit Calculation
Wisconsin Uniform Accounting
Requirements(WUFAR)
Wisconsin Uniform Financial Accounting Requirements
What is WUFAR?
Why do we have WUFAR?
Reading the System Printouts
What/Why WUFAR?
Reporting/Accounting System.
Required structure for reporting budget and annual reports to the Department of Public Instruction.
Used by local districts on a daily operational basis.
Consistency among school districts:• For DPI reporting• For factors used to calculate state aid• For federal reporting• For data requests
“Following WUFAR will make your life easier.”
WUFAR
xx - x - xxx - xxx - xxxxxx - xxx
10 General Fund 50 Food Service Fund
21 Gifts Fund 60 Activity Fund
27 Special Education Fund 73 Post Retirement Benefit Fund
38 Non-Referendum Debt Fund 80 Community Service Fund
39 Referendum Debt Fund 90 Cooperative Program Funds
FUND
Funds are used to segregated activities.
xx - x - xxx - xxx - xxxxxx - xxx
R = RevenueE = Expenditure
TYPE
Type tells the kind of transaction.
WUFAR
WUFAR
xx - x - xxx - xxx - xxxxxx - xxx
LOCATION
Generally indicates building or site where activity takes place.
DPI does not collect.
WUFAR
xx - x - xxx - xxx -xxxxxx - xxx
OBJECT (E) or SOURCE (R)
OBJECT SOURCE
Paying the Gas Bill Equalization Aid
Payroll Student Fees
Textbook Purchase Federal Aid
Supplies Open Enrollment Revenue
Computer Transportation
… many more…
Dimensions of WUFAR
xx - x – xxx – xxx – xxxxxx - xxx
FUNCTION
1xxxxx Instructional 2xxxxx Support Services
Undifferentiated Psychologists
Science Library
Mathematics Building Administration
Vocational Buildings & Grounds
Physical Transportation
… many more…
Dimensions of WUFAR
xx - x - xxx - xxx - xxxxxx - xxx
PROGRAM/PROJECT
Some project numbers are prescribed by DPI (grants).
Local districts can use program numbers to identify specific programs they want to
track.
POP Quiz!
10 E 400 411 124000 000
General FundExpenditureHigh School
SuppliesMathematics
No Program Designation
Non-Revenue Limit Revenues &
Expenditure Items
Now you have a “big picture” estimate of the
2013-14 Revenue Limit & Equalization Aid.
What about other revenues? State Categorical Aids Federal Grants Local Fees/Misc. Receipts Open Enrollment
Estimate Other Revenues
We’ll get some of these numbers from the “Aid Information” page on the left-hand sidebar of our website.
Use the “State Aids Payment Schedule” under “Aid Payment Information” on our website scan bar to help determine cash flow –
i.e. when you will receive the aid.
Estimating State Aids…some thoughts…
Common School Fund (Library) Aid – use the 2013-14 per pupil amount and multiply by your Census number as of June 30, 2014.
High Poverty Aid - computed each biennium, so if your district received High Poverty Aid in 2013-14, it will receive the same amount in 2014-15.
Per Pupil Aid: $150 per member in 2014-15.Aid eligibility = Line 6 (Current 3-Year Rolling Average) from
Revenue Limit worksheet x $150.SFS Team will calculate aid by mid-March, 2015 (e.g., use
Revenue Limit Membership as of that time)Payments to districts on 4th Monday in March, 2015.Adjustments to aid eligibility due to membership changes that
occur after the March Per-Pupil Aid calculation (e.g., membership audit) will be applied to the following year’s aid payment.
No requirement to levy to the maximum. (Initially, there was….)
Transportation Aid – look at the trend for your district. Unless you have added service or more routes, I would assume something safely in the trendline.
Special Education Aid - no new money in the appropriation for 2014-15. I would assume the % cost reimbursement would decrease. The dost reimbursement for 2013-14 is projected to be 26.5%, so I would not believe 26% for 2014-15 is unreasonable. Aid is the percentage of eligible special education costs. (project 011)
Open Enrollment: $6,635 per FTE member FINAL for 2014-15.Remember to enter into the budget amounts for BOTH the
revenue and expense. Start with the 2013-14 numbers separately each for OE-In and
OE-Out, remove the seniors, add new applications. (I always assumed that 50% of the applicants would actually end up participation in Open Enrollment.)http://sms.dpi.wi.gov/sms_psctoc
Estimating State Aids…some thoughts…
Estimating Federal Grants
http://sped.dpi.wi.gov/sped_fedgrant
Elementary and Secondary Education ActESEA Grants (Title I, II, IV, etc.)
Individuals with Disabilities ActIDEA Grants (Title I, II, IV, etc.)
http://esea.dpi.wi.gov/esea_funding
The District Ledger
District general ledger will include more detail of WUFAR accounts than the DPI budget and annual
report will collect. Many accounts will “rollup” into subtotals for DPI reporting.
Accounts are created in the local ledger based on what you need to track.
Let’s look at a real ledger…….
Get Everything into the Ledger
Final Budget Development
The district’s budget is a roadmap based on the district’s best estimations.
Remember: Two major revenues remain an estimate until mid-October – when the district can calculate the revenue limit for taxing purposes:
• Equalization Aid• Tax Levy
Preliminary vs. Original vs. Amended?
Preliminary (may have more than one): May have one prepared and adopted in late spring
before fiscal year starts. Common districts will have one to use for Budget
Hearing/Annual Meeting. Unified districts will have one for their Budget Hearing.
Original: Formally adopted by the Board at the same time
the levy is certified in the fall. The “official” budget of the district and the one you
submit to DPI.
Amended: Modifies the Original Budget. Changes require 2/3 majority for approval.
Budget Hearing and Adoption
Annual Meeting(bringing everything and everyone together)
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.
Only Common and Union High School Districts are required to hold the budget hearing at the same time and place as the annual meeting.
Unified districts do not have Annual Meetings, but do hold budget hearings.
Budget Hearing and Adoption
School boards are required to approve a “proposed” budget for presentation at the budget hearing.
A pre-populated excel file is available to assist with the recommended format for budget presentation and publication.
http://sfs.dpi.wi.gov/sfs_budhear
Budget Hearing and Adoption
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
Budget Hearing Notice
Budget Publication Notice
Annual Meeting
State statute 120.08 (1) identifies the date and time of the annual meeting.
Common S.D. – 4th Monday in July – 8:00pm
UHS S.D. – 3rd Monday in July – 8:00pm
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 15th or after October 31st.
Annual Meeting
School district must publish a class 2 notice for the annual meeting.
1st notice – at least 2 weeks prior to meeting
2nd notice – not more than 8 days or less than 1 day prior to the meeting
Annual Meeting
If you are faced with a choice, error on the side of the earlier publication date.
Annual Meeting
Powers of the Annual Meeting(ss. 120.10)
Vote the salaries /reimbursement expenses of School Board members.
Designate sites for school district buildings. Authorize School Board to acquire real estate
necessary for school district purposes. Vote a tax for sites, buildings and maintenance; a tax
to purchase, operate and maintain transportation vehicles and liability insurance; a tax for operation; a tax to retire bonded indebtedness for capital expenditures; a tax to create a School Capital Expansion fund (Fund 41); a tax for Community Service programs (Fund 80).
Authorize the sale of property. Authorize school board to furnish textbooks under
conditions prescribed by the annual meeting.
Days and Hours of Instruction,
Community Service Fund,Capital Expansion Fund
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. 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).
3. 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, unless the school board determines that the days will not count as school days.
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.
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.
Days of Instruction - Example
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://sfs.dpi.wi.gov/sfs_days_hours
Hours of Instruction
Hours of Instruction
K-6 Building
Kindergarten = halftime6th grade = 1,050 hours
What hours do you report for the building?
Highest level of hours in the building.
Beverly Kniess, Content and Learning(608) 266-3706
Waiver for Days and Hours
The school district may request a waiver to the days requirement. (Hours cannot be
waived.)
The request should be made to:
Beverly Kniess, Content and Learning(608) 266-3706
Community Service Fund (Fund 80)Capital Projects Fund (Fund 41)
Community Service Fund - see Community Service slides from November WASDA presentation.
Capital Projects Fund – created to segregate money for specific capital projects as determined by the school board and approved at an annual meeting. Funded by a levy.
E-mail: [email protected]: 608/267-9114
Website: http://sfs.dpi.wi.gov/
Robert Soldner, Director ………………… 266-6968Erin Fath, Asst. Director ………………… 267-9209Bruce Anderson, Consultant …………… 267-9707Dan Bush, Consultant ……………………… 267-9212Karen Kucharz, Consultant ……………… 266-3464Victoria Chung, Accountant ……………. 267-9205Gene Fornecker, Auditor …………………. 267-7882Brian Kahl, Auditor …………………………. 266-3862Michele Tessner, Auditor …………………. 267-9218
Thanks to WASDA for the opportunity
to speak to you today!(all Area Code 608 )
Non-Public Parttime Attendance
Homebasedss. 121.004(7)
(em)
Non-Parochial, Parochial, Tribal ss.
118.145(4)No Law ChangeLaw Change (2013-15 State Budget)
Resident Non-Resident
Grades 9-12 Residents Only Up to 2 Courses
Per Semester Can Count - FTE
Computed on Minutes Attended
Any Grade (K-12)Up to 2 Courses Per
SemesterCan Count - FTE
Computed on Minutes Attended
Any Grade (K-12)Up to 2 Courses Per
SemesterCan Count - .25 FTE for
Each Course, .50 FTE Max
---> Only for General Aid Purposes, NOT Revenue Limit <---
