Role of School Business Office - · PDF fileIntroduction to School Business September 21, 2017 Presented by: Sharon Raschke, Chief Financial Officer Dexter Community Schools ... MEGS

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Reporting:

State, Federal, and Local Agencies

Introduction to School Business

September 21, 2017

Presented by:

Sharon Raschke, Chief Financial Officer

Dexter Community Schools

[email protected]

(734)424-4107

Role of School Business Office

• Establish, maintain, and review effective and accurate budgeting practices within established accounting guidelines and regulations to support the educational process

• Monitor and control expenses as authorized in approved budgets for all district financial activities

• Manage business and financial dealings effectively by following district policies, state laws, and good business practices

• Develop scenarios projecting expected revenues and expenses

• Provide transparent information and reporting

mailto:[email protected]

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Role of School Business Office(in summary)

Support the educational process but keep the

district fiscally solvent, compliant, and out of

trouble

A School Business Official is

responsible for 100+ different things ….

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How Are Schools Funded?

How are Schools Funded?

• Local non-homestead property taxes

• State School Aid Fund

• State Grants

• Federal Grants

• Countywide Millages

• Local non-tax sources

• Bond Issue (Infrastructure only)

• Sinking Fund (Infrastructure only)

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Reporting Follows Funding

• School funding shifted from local control to state control

with the passage of Proposal A in 1994

• Each year, the state legislature sets the amount of money

each school district is permitted to receive for general

operations, called the foundation allowance

• Each district receives the foundation allowance (per pupil

funding amount), initially determined in 1994-95, based on

what the district collected from both state and local funds

on a per-pupil basis in the 1993-94 fiscal year.

• For 2017-18, the minimum foundation allowance is $7,631

per student; some schools get more

Funding for General Operations

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Foundation per pupil ___________ (set by the State)

x Number of pupils ___________

= Foundation allowance _________________

Your Foundation Allowance

• Your foundation allowance makes up approximately 80%

of your District’s revenue.

• The foundation allowance is collected from a combination

of:

1. Local property taxes (18 mills) on non-homestead

properties

2. State School Aid Fund


Local non-homestead property taxes

• State School Aid Fund

• State Grants

• Federal Grants





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Property Taxes

• County assessor determines taxable values of all

properties by May 1

• County assessor reports online DS-4410 (formerly

4410-A 4410-B 4410-C)

• DS-4410 is used to calculate “assumed local revenue”

on State Aid Status Report

• “Assumed local revenue”

Non-homestead taxable value * 18.0000 mills

Commercial personal property * 6.0000 mills

Property Taxes continued

• District requests tax millage levy rates on Form L-4029

• Tax levy for non-homestead operational, debt services,

sinking fund, and recreation fund

• Paper Form L-4029 sent by District to county clerk,

equalization, and township treasurers

• Submit by May 31 for summer or summer/winter levy

• Due September 30 for winter levy

• If this is your responsibility, attend the MSBO workshop

Property Taxes at the end of February and a “hands on”

workshop to help you with reconciliation in July

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L-4029

Foundation per pupil ___________ (set by the State)

x Number of pupils ___________


Your Foundation Allowance

• Your foundation allowance makes up approximately 80%

of your District’s revenue.

• The foundation allowance is collected from a combination

of:


properties


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State School Aid Fund

• State Grants

• Federal Grants





CEPI

• CEPI = The Center for Educational Performance and Information www.michigan.gov/cepi

• Collects and reports data about Michigan’s K-12 public schools

Michigan Student Data System (MSDS) Registry of Educational Personnel (REP) School Infrastructure Database (SID) Financial Information Database (FID)

(includes Transportation Reporting) Educational Entity Master (EEM) Graduation and Dropout Application (GAD) Student Transcript and Academic Records (STARR) Nonpublic School Personnel Report (NPSPR)

http://www.michigan.gov/cepi

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CEPI-MSDS

• MSDS = Michigan Student Data System = Pupil

Accounting

• “Count dates” are the first Wednesday in October and

second Wednesday in February

• Every student has a Unique Identification Code (UIC)

• Upload every student’s individual data electronically on

the CEPI website Fall and Spring

• You should know who is responsible for submitting the

student data in your district

CEPI-MSDS continued

• There are many nuances to reporting student data

• Form DS-4061 summarizes pupil count

• Submit Form DS-4061 to your ISD

• Know your ISD pupil accounting auditor

• You should know who is responsible for submitting

pupil accounting (all district AND per building) in your

district

• If it is you, go to the Michigan Pupil Accounting &

Attendance Association (MPAAA) spring and fall

workshops

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CEPI-MSDS continued

• Foundation is calculated based on 90% October pupil

count and 10% the previous February pupil count (since

2015-16)

• Make sure every student is properly counted and

reported! This directly impacts your district’s revenue

• State School Aid Act Section 25 allows a district to

count a prorated share of pupils who enroll after the

October pupil count day

Clock Hours of Pupil Instruction

• Report of Days and Clock Hours of Pupil Instruction Form DS-4168

To certify you provided at least 1,098 hours

There are nuances to counting hours

Lose funding for not enough pupil instruction

• You should know who is responsible for submitting for

pupil instruction time in your district

• If it is you, go to the Michigan Pupil Accounting &

Attendance Association (MPAAA) spring and fall

workshops

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Foundation per pupil ___________ (Set by the State)

x Number of pupils ___________ (MSDS Form DS-4061)


- Assumed local property taxes ____________

= State School Aid payment ____________

Your Foundation AllowanceThe foundation allowance is collected from a combination of:


properties


State Aid Status Report

• Balance your State Aid Financial Status Report

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CEPI-MSDS continued

• MSDS is also used to calculate:

Title I allocation

Section 31a At-Risk allocation

Early Childhood services

Nutrition Eligibility

Special Education FTE

CEPI-FID

• FID = Financial Information Database (formerly Form B)

• Upload the district’s financial information on the CEPI

website (http://www.mi.gov/fid)

• Account numbers must follow Bulletin 1022

• You should know who is responsible for FID reporting

in your district

• Due November 1 (new date for 2015) for prior fiscal

year or you lose your state aid!

http://www.mi.gov/fid

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CEPI-FID continued

• When you upload your FID data you will retrieve charts

for your Budget Transparency Report

Personnel Expenditures

Current Operating Expenditures

• When you upload your FID data you will retrieve your

School Meals Report (formerly SM-4012)

Be sure your Food Services Director sees and approves this

report prior to FID submission

Calculates cost per meal used for federal meal reimbursement

CEPI-REP

• REP = Registry of Education Personnel

• Upload every employee’s individual data on the CEPI

website

• Due December 1 and June 30

• You should know who is responsible for REP reporting

in your district

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CEPI-EEM

• EEM = Educational Entity Master (formerly School

Code Master)

• Update the district’s school building and contact

information on the new MILogin website when changes

happen (https://milogintp.Michigan.gov)

• You should know who is responsible for EEM reporting

in your district

• Other CEPI applications use the information

CEPI-SID

• SID = School Infrastructure Database

• Report certain information about your school district on

the CEPI website

Safety practices

Student discipline

Dual enrollment

Alternative education

• Due June 30

• You should know who is responsible for SID reporting

in your district

https://milogintp.michigan.gov/

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State Grants

Federal Grants





Transportation Reports

• Bus Inventory Report (SM-4017)

• Form SE-4094 reports regular ed and special ed

transportation data and costs Transportation costs

Transportation staff FTE

Transportation miles driven

Fuel usage

• Enter data on the CEPI website in the FID application

• Due 3rd week of September

• ISD reviews and approves by 1st week of October

• Used to compute section 51c Special Ed Headlee

Obligation revenue = 70.4165% of costs

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Transportation Reports continued

• Use an excel template first, then enter online

Transportation Reports continued

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Special Education

• Organize special education staffing by summarizing

them in a spreadsheet chart for quick reference

Special Education Report

• Form SE-4096 reports special ed data and costs Special education costs

Special education staff FTE

• Know allowable cost rules; packet sent with forms

• Due 3rd week of September to your ISD

• Used to compute section 51c Special Ed Headlee

Obligation revenue = 28.6138% of costs

• If you have Section 53 court placed students you do a

separate DS-4096 report because you get 100%

reimbursement of costs

• Used to compute your unreimbursed costs if your ISD

has an Act 18 special education millage

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Special Education Report continued

• Paper report; use an excel template

MEGS Plus

• Michigan Electronic Grants System Plus (MEGS +) https://mdoe.state.mi.us/MEGSPlus/

• Collects reports and data on federal and state grants administered by the Michigan Department of Education (MDE)

Title I IDEA Title II Nutrition Programs Title III Safe & Drug Free ARRA Homeless At Risk 31a GSRP

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MEGS Plus continued

• Know who is responsible for each component of each Grant in your district

School Improvement Plan (usually Asst Sup Curriculum) Consolidated Application and plan to spend funds (usually AsstSup Curriculum) Offering services to private schools (usually Asst Sup Curriculum) Coordinating homeless services (homeless liaison is usually a building principal) Assurances and Certifications (usually Sup) Grant budget and amendments (usually Business Office) Requesting reimbursement DS-4492 (usually Business Office) Submitting Final Expenditure Reports (IFER) DS-4044 (usually Business Office) Assuring compliance with internal controls (usually Business Office)

• Get to know your MDE field representative

Summarize your Grants• Organize your grants by summarizing them in a

spreadsheet for quick reference and check totals

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Bulletin 1022• Using and communicating with proper account number

structure will simplify your ability to report and balanceDexter Community Schools

This document has been prepared to provide a guide Expenses Account Coding Structure

of the account numbers you will use in your budget. Michigan Public School Accounting Manual

Bulletin 1022

XXX- XXX- XXXX- XXX- XXXX- XXXXX- XX-

Fund Function Object Program State Facility Other

111 General Fund 111 Elementary Instruction 1000 Salaries/ Wages 011 SpEd-OT 3060 At Risk 00000 District 94

231 Community Services 112 Middle School Instruction 2000 Benefits 013 SpEd-PT 3440 Voc Ed 08989 Bates-K-2 96

(Includes Athletics) 113 High School Instruction 2130 Ben Insurances 015 Nurse 4900 Title IID 08040 Cornerstone-K-2

251 Food Services 122 Special Education 2820 Ben Retirement 021 SpEd-Psych 6010 Title I 00214 Wylie 3-4

341 2003 Debt 125 Grants 2830 Ben FICA 031 SpEd-Speech 6011 Title I-carryovr 04609 Creekside 5-6

351 Durant Debt 127 Career Education 3000 Purchased Services 041 SpEd-Social 6380 ARRA-IDEA 08039 Mill Creek 7-8

381 1998 Debt 212 Guidance Counselors 3110 Instructional Sv 061 SpEd-TC-MI 6390 ARRA-Presch 00913 High School 9-12

391 2008 Debt 213 Health Services 3130 Pupil Services 062 SpEd-TC-EI 6400 ARRA-Early on 09078 Transportation

481 Capital Projects 214 Psychology Services 3220 Worksh/Conf 063 SpEd-TC-LD 6410 ARRA-Stabiliz 09079 B&G

662 Internal Activity 215 Speech Services 3450 Software Lic 194 SpEd-Res Rm 6460 ARRA-EDJobs 09931 Copeland

216 Social Work Services 4000 Repairs/Maintenance 196 SpEd-LRE 6990 Drug Free 06147 WISD (F&N)

218 Teacher Consultant 4120 Maint Equip 400 IB - Int'l 6840 Title III-ESL

219 General Education 5000 Supplies Baccalaureate 7570 IDEA-Early On

221 Improvement of Instruction 5110 Teaching Sup 7630 Title IIA-carryovr

222 Media Services 5210 Textbooks 7640 Title IIA-PD

225 Technology 5910 Office Supplies 8010 IDEA-Flowthr

226 Special Education 5990 Other Supplies 8050 IDEA-Presch

229 Consortium 6000 Capital Outlay

231 Board of Education 6420 Equipment

232 Superintendent/Asst 7000 Other Expenses

241 Building Principals 7410 Dues and Fees

252 Business Office 8000 Transfers

259 Other Business Costs

261 Building Operations/Maintenance

266 Security Services

271 Transportation Services

283 Personnel

297 Food Services

311 Community Services

321 Community Recreation

351 Child Care

391 CPA

451 Cap Proj-Site Acquisition

452 Cap Proj-Site Improvement

453 Cap Proj-Architect

455 Cap Proj-New Building

456 Cap Proj-Renovation

511 Debt Service

Federal Grants

• Federal Grants require compliance with updated

Education Department General Administrative

Regulations (EDGAR) (December 2014)

• New regulations cover application process, financial

management, procurement, inventory management,

time and effort accountability, cost allowability, record

retention, program oversight

• Recommend board policy for Federal Grants in addition

to other finance policies

• Develop comprehensive Internal controls for your

district and follow them; your internal controls will be

tested by your auditor

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Federal Grants

• Federal funds are subject to a “Single Audit” of Federal

Awards if your total federal funding exceeds $750,000

IDEA

• IDEA = Individuals with Disabilities Education Act =

Federal law ensuring services to children with

disabilities

• Simplify by charging professional staff to IDEA

• Reporting and approvals managed by ISD

• Know your IDEA/special education coordinator at the

ISD and your ISD reporting requirements

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Medicaid-Outreach

• Administrative services provided for Medicaid eligible

students

• Public Consulting Group (PCG) is the agency

contracted by the state to bill the Federal government

for Medicaid services

• Coordinated through ISD

• Report the professional staff roster assigned a case

load of Medicaid eligible students quarterly If you also have IDEA funding, use staff different than those

servicing Medicaid students to maximize your reimbursement

• A random moment time study identifies percentage of

time statewide that any given staff member provides a

service

Medicaid-Outreach continued

• Report wages and benefits of staff on the PCG website

quarterly

• Report a summary of all expenditures on the Medicaid

Allowable Expenditure Report (MAER) on a

spreadsheet emailed to your ISD annually in October

• District receives reimbursement for administrative

services

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Medicaid-Direct Services Program

• Direct health services provided for Medicaid eligible

students (speech, psych, social, case managers)

• Coordinated through ISD

• Professional staff enters direct services provided to

each student on the PCG website

• District receives reimbursement for direct services




State Grants

Federal Grants

Countywide Millages

Local non-tax sources



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Other ISD and Local Funding• Other funding from your ISD may have reporting

requirements

ISD special education millage

ISD early childhood funding

ISD technology millage

• Other local grants or local funding may have reporting

requirements

Education foundations

Village/City cooperatives

• Know

who is your contact

what you can spend the money on

what reports you have to do

how you get your money

when reports are due

Grants

• It is good practice to prepare and submit reimbursement

claims on at least a quarterly basis.

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State Grants

Federal Grants

Countywide Millages

Local non-tax sources

Bond Issue (Infrastructure only)


Bond Funds

• Bonds can be issued with voter approval to be used for

district capital assets and infrastructure Buildings

Renovations

Land

Computers

School buses

Furnishings and equipment

• The school district issues tax exempt municipal bonds

to investors

• When you issue the bonds you give investors an Official

Statement, like a prospectus

• You likely have a requirement to update school district

data by annual filing of a Continuing Disclosure

• Due December 31

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Bond Funds continued

• District requests debt tax millage levy rates on Form L-

4029 on all properties within the district boundaries

• The property taxes collected are kept in a separate

fund(s) and used to make the principal and interest

payments to the investors on the bonds

School Bond Loan Fund• SLRF = School Loan Revolving Fund (previously

School Bond Loan Fund)

• If the rate of tax levy is expected to be unreasonably

high, the district can borrow from the State to make the

bond debt interest and principal payments

• The district must issue a minimum of 7.0000 mills of

debt levy

• Once the district has more property tax collection than

required to make the debt payments, the district begins

paying back the SLRF

• Once SLRF is paid off, then the district calculates the

millage annually necessary to pay the remaining bond

payments

• Annual board resolution and worksheets (July, October,

April) computing borrowing and repayment activity

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Cash Flow• Cash Flow = all cash moving in and out of your bank

• Keep a spreadsheet to track your cash flow during the

year

• Project your cash flow for the next year; this will help

you determine that you will have enough cash in the

bank to pay your bills and payrolls when they come due

• Even if your revenue = your expenses in a fiscal year,

the timing of needing cash may be a problem

• Fiscal year starts July 1 and the first state aid payment

is October 20

• If you have fund balance of approximately 25% you may

be able to self-fund the cash flow timing issue

• Having a summer non-homestead property tax levy will

help the cash flow timing issue

State Aid Note

• Michigan Municipal Bond Authority

• State Aid Note

• Legal borrowing so you need your attorney to prepare

the note paperwork

• You will need a spreadsheet showing cash flow if you

borrow

• Board authorizing resolution (June)

• August 20 borrowing and repayment

• Opportunity for spring borrowing

• Can use a credit line at a local bank

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Municipal Qualifying Statement

• Report activity related to your ability to issue municipal

securities

• File online Michigan Department of Treasury

• Due December 31

• Failure to do this means you cannot borrow!

Budget and Salary/Compensation

Transparency Reporting• Statutory Requirement MCL 388.1618(2) and (3)

• Post (new December 1, 2017) icon and link on your

district’s website home page

• Include: Current Board Adopted Budgets and Revisions

Personnel Expenditures (from FID)

Operating Expenditures (from FID)

Current Bargaining Agreements

Employer Sponsored Health Care Plans

Audited Financial Statements

Medical Benefit Plan Bids

Policy Governing Procurement

Policy on Expense Reimbursements

Statement of Expenses Paid

Employee Compensation exceeding $100,000

District Paid Association Dues

District Paid Lobbying Costs

Deficit Elimination Plan (if required)

District Credit Card Information

District Paid Out-of State Travel

Link to MI School Data Portal

MI School Data Portal

https://www.mischooldata.org/

https://www.mischooldata.org/

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Indirect Cost Rates

• Used to identify costs incurred for the benefit of more

than one cost function Payroll

Utilities

Fiscal services

B&G

Personnel

• Calculated from FID data submitted

• Preliminary Indirect Cost Rates posted to MDE website

in April

• You can request adjustments on Form DS-4513

• Final Indirect Cost Rates Form R0418

• Used to recover indirect costs on Grants

Indirect Cost Rates

• When evaluating program costs, use all direct and

indirect costs of a program.

For example:

Q. How is per-student instructional program cost determined?

A. Add all direct and indirect costs of the instructional program and

divide by the number of participants in the individual program

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Deficit Elimination Plan

• Deficit fund balance: Fund balance is deficit before reserves

Other funds have negative fund balances that exceed the

General Fund balance

• Must develop a plan to eliminate your deficit by the end

of the 2nd school year after the deficit was incurred

• Deficit Elimination Plan (DEP) must be approved by

MDE

• Budgetary control reports submitted monthly to MDE

Office of Retirement Services

• Michigan Public School Employees Retirement System

(MPSERS) and Office of Retirement Services (ORS)

• Upload employer reports every payroll on the ORS

website Employee data and job ECC code

Employee wages and hours

• Reconcile every payroll

• Pay employee and employer contributions by ACH

• Reconcile payments to reports at year end

• Report Federally Funded Wage data quarterly on the

ORS website

• Major ORS reform created many many complex options

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Payroll

• Federal Income Taxes and FICA/Medicare Payroll Taxes ACH withholdings/payments every payroll

Quarterly 941 report

Reconcile to W-2 totals at calendar year-end

Reconcile payroll totals at fiscal year-end

• State Income Taxes ACH withholdings every payroll

Annual Return

Reconcile to W-2 totals at calendar year-end

Reconcile payroll totals at fiscal year-end

• Local Income Taxes (if applicable)

• Wage and Tax Statements/W-2’s Process employee W-2 statements by January 31

Upload W-3 Transmittal of Wages and Tax Statements on

www.ssa.gov/bso by February 28

Payroll Reporting continued

• New Hire Reporting Department of Human Services

Report newly hired or rehired employees on

www.mi-newhire.com

• Michigan Unemployment Insurance Agency (formerly

MESC) Upload quarterly wage data on

www.michigan.gov/uia

MiWAM is the new portal

• Multiple Worksite Report Bureau of Labor Statistics

Report number of staff per worksite on

https://idcf.bls.gov

http://www.ssa.gov/bso

http://www.mi-newhire.com/

http://www.michigan.gov.uia/

https://idcf.bls.gov/

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Other Reporting

• State Sales Tax ACH payments monthly

Michigan Annual Return

Due January 31

• Miscellaneous Income/1099’s Prepare 1099s from accounts payable payments made to

individuals/non-incorporated businesses Due January 31 Annual Summary and Transmittal (IRS 1096) due February

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• Other reports/surveys Are they mandatory or voluntary?

School Business Office Checklist

• Excel spreadsheet

Business Office To Do Calendar Checklist.xls

• Print as 8-1/2x14 legal or 11x17 ledger

• Add position or name of staff person

responsible for task

• Make it your own

• Use it so you don’t forget tasks

• Use it to communicate volume of

responsibilities in the Business Office

• Use it to communicate with your auditors

about your processes

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Budget Process

Audit

Financials

Cash Flow

Special Education ISD Reimbursements (Act 18, Administrative Costs)

Indirect Cost Rate

Inter-fund Transfers (Self-supporting programs Indirect Cost Recovery, Subsidized

programs General Fund Subsidy)

Transportation Report (SE-4094)

Property Taxes

Debt Payments and School Loan Revolving Fund

Municipal Qualifying Statement

Annual Survey of School System Finances

Student Count

Dual Enrollment

Checklist of Tasks

Educational Entity Master (EEM) on CEPI

Benchmarking

Webpage

Capital Projects

Michigan Unclaimed Property

Risk Management-Student

Risk Management-District

Purchasing

Federal Title Grants (Title I, Title II, Title III)

State Grants (At Risk Section 31a, other State Categoricals)

Federal Special Education Grants (IDEA Flowthrough, IDEA Preschool)

Medicaid Direct Services Program

Medicaid Outreach

Federal Drug Free Communities Grant (SRSLY Dexter)

Consortium

E-Rate

Miscellaneous Billing

Checklist of Tasks

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Fixed Assets

Sale of Obsolete Assets

Worker's Compensation

Unemployment

Payroll-Paychecks

Payroll-Withholdings

Payroll-Filings/Returns

Benefits

403b Orphan Vendors

New World Security

Internal Accounts-Payables

Internal Accounts-Receipts

Receipts

State Aid

Bank Statements

Business Office

Journal Entries

Checklist of Tasks

Accounts Payable

Purchasing Cards

Employee Expense Reimbursements

Contracts (Arbiter Pay, PESG)

Tax Filings (1099s)

Registry of Educational Personnel (REP) on CEPI

School Infrastructure (SID) on CEPI

Clock Hours of Pupil Instruction

Food Services Reports

Checklist of Tasks

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State Aid Note

MSDS

L-4029DS-4061

State Aid Status ReportDS-4168

FID

REP

MEGS

SID

SM-4017SE-4096

SE-4094

MEGS +

EEM

DS-4044

DS-4492

1022

Medicaid

MAERContinuing

Disclosure

SLRF

MMBA

Cash Flow

Municipal

Qualifying

Statement

Budget

Transparency

DS-4513

ORS

W-2

CEPI

1099

DEP

W-3

1096

R0418


responsible for 100+ different things ….


responsible for 392

+ different things …. and growing!

37

Questions?

Contact

Sharon Raschke, Chief Financial Officer

Dexter Community Schools

[email protected]

(734)424-4107

mailto:[email protected]

Documents

Role of School Business Office - · PDF fileIntroduction to School Business September 21, 2017 Presented by: Sharon Raschke, Chief Financial Officer Dexter Community Schools ... MEGS