Region V Conference

4/1/2013

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Region V ‐ ConferenceUFARS 101April 04, 2013

Sarah Miller, PresenterDavid Day, Presenter

Minnesota Department of EducationDivision of School Finance1500 Highway 36 WestRoseville, MN 55113

Uniform Accounting and Financial Reporting System (UFARS) Overview MDE Website – UFARS Manual

UFARS Coding Structure Expenditure Coding Dimensions

Revenue Coding Dimensions

Assets, Liabilities and Fund Balance Coding

Summary

Agenda

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UFARS Overview

UFARSUNIFORMFINANCIALACCOUNTING and

REPORTING

STANDARDS3

ACCOUNTING, BUDGETING, AND REPORTING REQUIREMENT (Minn. Stat. § 123B.77) – Law 1976

Subdivision 1. Uniform financial accounting and reporting standards. Each Minnesota school district must adopt the uniform financial accounting and reporting standards for Minnesota school districts provided for in guidelines adopted by the department.

All Minnesota school reporting entities are required by law to prepare financial reports and annual budgets.

These financial reports include the detailed tracking of revenues and expenditures within UFARS fund classifications to meet legislative requirements and provide financial accountability for public fund allocations.

Accounting and UFARS Overview

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http://education.state.mn.us/mde/index.html

UFARS Overview

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REVENUE CODING

UFARS Overview

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UFARS Overview UFARS Manual – Pages 4

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EXPENDITURES

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UFARS CODING STRUCTURE - EXPENDITURES

FD2

ORG3

PRG3

FIN3

OBJ3

CRS3

1Fund

2Organization

3Program

4Finance

5Object

6Course

17‐ Digits

6Dimensions

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Expenditure Coding

Fund Dimension – Five Fund Categories Operating Funds Non-Operating Funds

Fund 01 – General Fund Fund 06 – Building Construction Fund

Fund 02 – Food Service Fund Fund 07 – Debt Service Fund

Fund 04 – Community Service Fund Fund 47 – OPEB Debt Service Fund

Fiduciary Funds Proprietary Funds

Fund 08 – Trust Fund Fund 20 – Internal Service Fund

Fund 09 – Agency Fund Fund 25 – OPEB Internal Service Fund

Fund 45 – OPEB Irrevocable Trust Fund

Account Groups

Fund 98 – General Fixed Assets Group

Fund 99 – General Long-Term Debt Group

FD ORG PRG FIN OBJ CRS

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Fund 01General Fund

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General Fund (01)

Educational

General Fund(01)

Activities

DistrictInstructional

StudentSupport

Programs

Superintendent

Operations &Maintenance

DistrictAdministration

PupilTransportation

CapitalExpenditures

OtherActivities

General Fund is used to account for all revenues & expenditures not accounted for elsewhere.

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Expenditure Coding

Organization/Site Dimension (UFARS Manual – Chapter 2)

The purpose of the organization/site dimension is to identifies expenditures by a specific budgeted learning site or district-wide.

A budgeted learning site is an organizational unit where students attend: Established for a specific purpose

Registered with the Department as an official learning site within a district


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Expenditure Coding

In accordance with instructions provided for MARSS and STAR, expendituresthat occur at more than three sites may be designated as District-Wide(Organization Code 005).

District-Wide or Not Otherwise Identified by Budgeted Learning Site

Used for activities that cannot be related to an individual budgeted learning site.

In general, these program codes should be coded to Organization Code 005 (District-wide): Board of Education (010) Office of Superintendent (020) Instructional Administration (030) District Support Services (100 series) Community Education and Services (500 series) Fiscal and Other Fixed Cost Programs (900 series)


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Expenditure Coding

Organization/Site Dimension

Typical budgeted learning sites are:

Elementary, middle or secondary schools (whether or not it is in a separate building) or

A budgeted learning site that is located in several buildings and is identified in the MARSS and STAR systems.

Each reporting entity must use the same numbers in the UFARS reporting system as they use in the Minnesota Automated Reporting Student System (MARSS) and the Staff Automated Reporting System (STAR).


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Expenditure Coding

Budgeted Learning Sites: 001-004, 006-798, 800-997, 999 These codes should be used for budgeted learning sites. This must include, but not be limited to, expenditures for Basic Skills Education, expenditures pursuant to a site-based management agreement, and area learning center expenditures.

Following program codes should use budgeted learning sites : School Administration (050) Elementary and Secondary Regular Instruction (200 series) Career and Technical Education Instruction (300 series)

Following program codes should use District-Wide (005) or 001-004, 006-999 budgeted learning sites:

Special Education Instruction (400 series) Instructional Support Services (600 series) Pupil Support Services (700 series) Sites and Buildings (800 series)


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Expenditure Coding

Home School Sites (799) Record expenditures made by all home school sites.

This Organization/Site code cannot be used as a budgeted learning site number.

Tuition Billing Sites (998) Individual tuition payments for students served outside of the district.


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Expenditure Coding


ClickHere

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Expenditure Coding


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Expenditure Coding

Program Dimension (UFARS Manual – Chapter 3)

Encompasses all aspects of school district operations, including instructional, administrative and various support activities.

Program Code 000 is not a valid code for expenditures.


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Expenditure Coding

Program Dimension

Program Code Dimension ten categories:1) Administration (010-099)

2) District Support Services (100-199)

3) Elementary and Secondary Regular Instruction (200-299)

4) Vocational Education Instruction (300-399)

5) Special Education (400-499)

6) Community Education and Services (500-599)

7) Instructional Support Services (600-699)

8) Pupil Support Services (700-799)

9) Sites and Buildings (800-899)

10) Fiscal and Other Fixed Costs Programs (900-999)


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Expenditure Coding

Finance Dimension (UFARS Manual – Chapter 4) Used to record revenues and expenditures that relate to an activity funded by a

categorical aid or levy* – revenue limited by: Minnesota Statutes Federal Regulations.

Must be used in all cases for revenues and expenditures which relate to a restricted/reserved fund balance.

* Categorical Aids or levy – Categorical revenue formulas are generally used to meet costs that vary significantly between district (i.e., special education) or promote certain types of programs (i.e. career and technical aid, adult basic education aid). Safe Schools is a categorical levy.


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Expenditure Coding

Finance Dimension has 12 Categories (FY 2013):1) District Wide (000)

2) American Recovery and Reinvestment Act (ARRA) Stabilization (100-200)¹

3) State Supported Programs (300 series)

4) ARRA Targeted and Federal Formula Grants (400 & 600 series)¹

5) Federal Aid Received Directly from Federal Sources (500 series)

6) Child Nutrition (701-710)

7) Transportation (711-739)

8) Special Education (740-760)

9) State Placement (761-770)

10) Levy Supported Programs (791-799)

11) Federal Competitive Grants (800 & 900 series excluding 830 & 835)

12) Career & Technical Education & School-To-Work (830 & 835)

¹Note: Most ARRA awards have expired. FY 2013 – available only for recoveries due to audits, reconciliations and entitlement adjustments.


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Expenditure Coding

Object Dimension (UFARS Manual Chapter 5) Identifies the service or commodity obtained as the result of an

expenditure.

This is the most detailed dimension

“000” can not be used in the expenditure coding

The object dimension has 8 categories


OBJECT DIMENSIONS

Salaries & Wages (100 series) Capital Expenditures (500 series)

Employee Benefits (200 series) Debt Service (700 series)

Purchased Services (300 series) Other Expenditures (800 series)

Supplies &Materials (400 series) Other Financing Uses (900 series)

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Expenditure Coding

Course Dimension Limited number of course codes assigned to a specific purpose

Course dimensions assigned for designated years (000‐010)

Course dimensions assigned to track federal grants (000, 011‐015)

Birth to Two SPED Maintenance of Effort (620)

AYP Schools Set Aside Codes (621‐639)

Staff Development – SPED & Federal Programs – Title I set‐asides (640‐642)

School Improvement Implementation Set‐Aside (667‐669 )

Alternative Facilities Projects (016‐019, 020‐619, 643‐666, 670‐999)

Student Activity (900 Series)


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Expenditure Coding

Course Code Matrix – State Fiscal Year and Federal Award Year

2010 2011 2012 2013 2014

2013Course Code

012

Course Code

011

Course Code

000

2014Course Code

012

Course Code

011

Course Code

000

2015Course Code

012

Course Code

011

Course Code

000

Sta

te F

isca

l Yea

r

Federal Award Year

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Course Codes – Mandatory Set‐Asides

Title I Set-aside course codes in UFARS – FY 2013These course codes should only be used with Finance Code 401, with the exception of 640-642 which may be used in Federal Special Education reporting

Current Prior 2nd Prior

Year Year Year

Course Code (000) (011) (012)

Highly Qualified 634 627 621

LEA Level Activities 635 628 622

Neglected 636 629 623

Homeless 637 630 624

Parent Involvement 638 631 625

AYP School Choice / SES 639 632 626

AYP Professional Development 640 641 642

School Improvement Implementation 667 668 669

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Chapter 10 Grid ‐ Expenditure Coding

Permitted Code Combinations (UFARS Manual – Chapter 10)

Expenditure codes are divided into two basic categories:

1. Unrestricted – expenditures that use unreserved revenues (Finance Code = 000).

2. Restricted – expenditures that use reserved or restricted revenues (Finance Code ≠ 000).


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Restricted Finance Grid Used for expenditures that require a finance code because they are funded by

federal grants, state aid, or local levy which use is restricted by federal regulations or state statutes.

The restricted grid layout is:

Fin – Description – Funds – Organization – Program – Object

The finance dimension is the key dimension of this grid.

Once a requirement for a finance dimension is determined and the finance number has been located on the grid, the remaining allowable expenditure code dimensions can be determined

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REVENUE CODING


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UFARS Overview UFARS Manual – Pages 5

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REVENUES

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UFARS CODING STRUCTURE - REVENUE

FD2

ORG3

PRG3

FIN3

SRC3

CRS3

1FUND

2Organization

3Program

4Finance

5Source

6Course

17‐ Digits

6Dimensions

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Revenue Coding

The Source Dimension (UFARS Manual Chapter 6)

Identifies the origin of the revenue received.1) Local Revenues (000 Series)

2) State Revenues (200 and 300 Series)

3) Federal Revenues

Received through MDE and other State Agencies (400 Series)

Federal Revenues Received Directly from Federal Sources

(500 Series)

4) Other Revenues (600 Series)

Local Sales, Insurance Recovery and Judgment

Sale of Bonds and Loans

Incoming Transfers from Other Funds

FD ORG PRG FIN SRC CRS

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Revenue Coding

Finance Dimension Used to record revenues as well as expenditures that relate to an activity

funded with a categorical aid or levy, or relates to a reserved fund balance.

Each finance code explanation in the manual states whether or not the finance code needs to be used for UFARS revenue reporting.

If a program is entirely state funded, federally funded, or relates to a restricted/reserved fund balance, use the appropriate finance code for both revenues and expenditures.

If state aid payments for a program are combined with state aid for other purposes, and/or revenue for a program consists in whole or in part from property tax levy revenue, the finance dimension need not be used to identify these revenues (only use for expenditures). If there is an associated reserve fund balance, the finance code needs to be used for both expenditures and revenues.

FD ORG PRG FIN SRC CRS

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Balance Sheet Accounts

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UFARS CODING STRUCTURE Balance Sheet Accounts

FD2

BAL3

XXX2 or 3

1FUND

2BALANCE (GNL)

3Optional Local Use

7 or (8) Digits

3Dimensions

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Balance Sheet Accounts (UFARS Manual Chapter 8) Operating Funds Non‐Operating FundsFund 01 – General Fund Fund 06 – Building ConstructionFund 02 – Food Service Fund Fund 07 – Debt Service Fund

Fund 04 – Community Service Fund Fund 45 – Post‐Employment Benefits

Debt Service Fund

Fiduciary Funds Proprietary FundsFund 08 – Trust Fund Fund 20 – Internal Service Fund

Fund 09 – Agency Fund Fund 25 – Post‐Employment Benefits Fund 45 – Post‐Employment Benefits Revocable Trust

Debt Service

Account Groups

Fund 98 – General Fixed Assets Group

Fund 99 – General Long‐Term Debt Group


FD BAL XXX

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A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district.


FD BAL XXX

Asset Accounts

Categories Fund Balance Sheet Account Code

Current Asset Accounts 01‐09 and 20 101‐139

General Fixed Asset Account Group

Fund 20 and Account Group 98

140‐149, 171‐174

General Long‐Term Debt Account Group

Fund 20 and Account Group 99

150‐162

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FD BAL XXX

Liability Accounts

Categories Fund Balance Sheet Account Code

Current Liability Accounts 01‐09 and 20 201‐235

Long‐Term Liabilities Fund 20 and Account Group 99

250‐262

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FD BAL XXX

Fund Balance Accounts

Categories Balance Sheet Account Code

Nonspendable 460

Restricted/Reserved 403‐417, 423‐428, 431‐453

Restricted 464

Committed 418, 461

Assigned 462

Unassigned 422, 463

Investment in General Fixed Assets (Account Group 98 only)

430

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UFARS Overview Summary

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http://education.state.mn.us/mde/index.html

UFARS Overview

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REVENUE CODING

UFARS Overview

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UFARS CODING STRUCTURE - EXPENDITURES

FD2

ORG3

PRG3

FIN3

OBJ3

CRS3

1Fund

2Organization

3Program

4Finance

5Object

6Course

17‐ Digits

6Dimensions

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UFARS CODING STRUCTURE - REVENUE

FD2

ORG3

PRG3

FIN3

SRC3

CRS3

1FUND

2Organization

3Program

4Finance

5Source

6Course

17‐ Digits

6Dimensions

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UFARS CODING STRUCTURE Balance Sheet Accounts

FD2

BAL3

XXX2 or 3

1FUND

2BALANCE (GNL)

3Optional Local Use

7 or (8) Digits

3Dimensions

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Balance Sheet

Expenditure Code Structure

Income Statement

EXPENDITURE AND REVENUE CODES

XX-XXX-XXX-XXX-XXX-XXX


Revenue Code Structure FD ORG PRG FIN SRC CRS

ASSET, LIABILITY, AND FUND BALANCE CODES

XX-XXX-XX

Asset, Liability or Fund Balance Code Structure

FD BAL XX

3 Dimensions

7 (or 8) Digits

6 Dimensions

17 Digits

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REVENUE

ACCOUNTS

EXPENDITURE

GUIDELINE

BALANCE SHEET

CLOSING PROCESS

AFTER ALL ENTRIES HAVE

BEEN MADE

$ $

ASSETS

LIABILITIES

FUND BALANCE

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Questions

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MDE Financial Management Contacts

Sarah Miller Patti Scott

Education Finance Specialist Education Finance Specialist

Division of School Finance Division of School Finance

[email protected] or 651‐582‐8370 [email protected] or 651‐582‐8646

David Day Karen Dykoski

Education Finance Specialist Supervisor, Financial Management, Facilities and

Division of School Finance Transportation

[email protected] or 651‐582‐8384 Division of School Finance

[email protected] or 651‐582‐8766

UFARS Helpdesk: MDE.ufars‐[email protected]

MDE IT‐Helpdesk for technical questions or problems with the MDE website: [email protected]

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You Asked – FAQ’s

For UFARS Submissions and Title Maintenance of Effort (MOE) questions, contact Patti Scott at [email protected] or 651‐582‐8646.

For Indirect Cost, Commissioner Approved Fund Balance Transfer and Audit questions, contact David Day at [email protected] or 651‐582‐8384. MDE website: http://education.state.mn.us/MDE/SchSup/SchFin/FinMgmt/GuideRep/index.html

For (New) District Revenues and Expenditures Budget Form FY 2012 and FY 2013 questions, contact Sarah Miller at [email protected] or 651‐582‐8370 and the MDE website at:

http://education.state.mn.us/MDE/SchSup/SchFin/FinMgmt/index.html

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You Asked – FAQ’s

For Statutory Operating Debt (SOD) and FY 2013 School Finance Award for FY 2012 Financial Data questions, contact Sarah Miller at [email protected] or 651‐582‐8370. For a list of the FY 2013 School Finance Award Recipients reference the MDE website at:

http://education.state.mn.us/MDE/SchSup/SchFin/FinMgmt/GuideRep/index.html

For Charter School Lease Approval questions, contact Patti Scott at [email protected] or 651‐582‐8646.

“Upcoming” School Business Bulletin #50 located on the MDE website: http://education.state.mn.us/MDE/SchSup/SchFin/FinMgmt/index.html

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Other Contacts…

SERVS Financial• How to gain access and utilize SERVS Financial – [email protected]

• Error messages and malfunctions when using SERVS – mde.it‐[email protected]

Title Programs• Title Programs – [email protected].

Special Education• Special Education Funds – [email protected].

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Documents

Region V Conference