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

WASDANew Administrator's

WorkshopMarch 20 & 21, 2007

AgendaAgenda

9:00 - 9:109:00 - 9:10 Who we are; What we do; How Who we are; What we do; How we can help you.we can help you.

9:10 - 10:30 9:10 - 10:30 The Revenue Limit and What The Revenue Limit and What It Means for Your Budget Development It Means for Your Budget Development ActivitiesActivities

10:30 - 10:45 10:30 - 10:45 BreakBreak

AgendaAgenda

10:45 - 12:0010:45 - 12:00 Equalization Aid – How It Equalization Aid – How It Works, How to Explain Changes, How to Works, How to Explain Changes, How to Project Aid – Fund 80, Short Term Project Aid – Fund 80, Short Term Borrowing, OPEBBorrowing, OPEB

12:00 - 12:4512:00 - 12:45 LunchLunch

12:45 - 2:0012:45 - 2:00 Counting Kids, Days & Counting Kids, Days & Hours of Instruction, WUFAR, Special Hours of Instruction, WUFAR, Special Education, Cost ComparisonsEducation, Cost Comparisons

Division for Finance and ManagementBrian Pahnke

Division Administrator608-267-9124

School Financial ServicesDavid Carlson

Director608-266-6968

School Financial ServicesJerry Landmark

Assistant Director608-266-3464

Debbie Gaffney-DilleyProgram Assistant

608-267-9114

Pam SchumacherAccountant

608-267-9205

Beverly KrausFinancial Specialist

608-266-1089

Brad AdamsConsultant

608-267-3752

Natalie RewAuditor

608-267-9212

Daryl MillerIS Comprehensive

Specialist608-266-1389

Steve ConlinIS Comprehensive

Specialist608-266-6947

Janette GosdeckAccountant Objective

608-267-9218

Karen KucharzConsultant

608-267-9707

Gene ForneckerAuditor

608-267-7882

Kathy GuralskiAuditor

608-266-3862

Lori AmesConsultant

608-266-3464

Finance Team….Who We AreFinance Team….Who We Are

Finance Team….What We DoFinance Team….What We Do Collect data reports from districts in order to Collect data reports from districts in order to

distribute over $5.8 billion in State Aid and distribute over $5.8 billion in State Aid and Credits in 2006-07, including $5.3 billion in Credits in 2006-07, including $5.3 billion in General and Categorical AidsGeneral and Categorical Aids

Provide data to individuals, organizations, state Provide data to individuals, organizations, state and federal agenciesand federal agencies

Provide consultation services as neededProvide consultation services as needed

Provide a website and training opportunities to Provide a website and training opportunities to help people help themselveshelp people help themselves

Finance Team….Finance Team….How We Can Help You How We Can Help You

Web Page Publications & TutorialsWeb Page Publications & Tutorials

Phone calls, e-mailPhone calls, e-mail

Provide information via our listservProvide information via our listserv

(we recommend you subscribe – see (we recommend you subscribe – see

information under “Mailings/List Serve” on the information under “Mailings/List Serve” on the

green scan bar on our website)green scan bar on our website)

New Admin. Workshop - March 20 & 21New Admin. Workshop - March 20 & 21

How We Can Help YouHow We Can Help You New Business Manager/Bookkeeper New Business Manager/Bookkeeper Workshop - Workshop -

TBDTBD

Spring Finance Workshops - AprilSpring Finance Workshops - April

State Superintendent’s Workshop - Sept.State Superintendent’s Workshop - Sept.

““Getting It Right” Workshop - Oct.Getting It Right” Workshop - Oct.

January WASB/WASDA/WASBO ConventionJanuary WASB/WASDA/WASBO Convention

Various WASBO and WASDA Seminars Various WASBO and WASDA Seminars

throughout the yearthroughout the year

How We Can Help YouHow We Can Help You

Bookmark this page !!!!!Bookmark this page !!!!!

http://http://dpi.wi.gov/sfs/index.htmldpi.wi.gov/sfs/index.html

Let’s Look at the Handouts…Let’s Look at the Handouts… Roadmap of the School Financial Services WebsiteRoadmap of the School Financial Services Website

SAMPLE 06-07 Revenue Limit WorksheetSAMPLE 06-07 Revenue Limit Worksheet

District-Specific 06-07 Revenue Limit Worksheet (not final)District-Specific 06-07 Revenue Limit Worksheet (not final)

District-Specific 07-08 Estimated Revenue Limit BaseDistrict-Specific 07-08 Estimated Revenue Limit Base

District-Specific 06-07 Percentage Method Equalization Aid District-Specific 06-07 Percentage Method Equalization Aid Worksheet Worksheet

District-Specific 06-07 Oct 15 General Aid CertDistrict-Specific 06-07 Oct 15 General Aid Cert

06-07 Equalization Aid Executable Worksheet for Projections06-07 Equalization Aid Executable Worksheet for Projections

Fund 10 SAMPLE Planning BudgetFund 10 SAMPLE Planning Budget

Budget Timeline ModelBudget Timeline Model

Slides from Power Point PresentationSlides from Power Point Presentation

Our Website: Get it On Your RadarOur Website: Get it On Your Radar

REVENUE LIMIT: REVENUE LIMIT: THE BASICSTHE BASICS

……what a new administrator what a new administrator needs to know to needs to know to

calculate the revenue calculate the revenue limit…limit…

The “Big Picture”The “Big Picture”

Revenue Limit Calculation

Budget PlanningPapers

- 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.

The revenue limit is a The revenue limit is a limit (or control) limit (or control) on the revenue a school district is on the revenue a school district is entitled to receive from:entitled to receive from:

1.) 1.) GeGeneral State Aidneral State Aid

(Equalization Aid) (Equalization Aid)

2.)2.) Local Levies (10, 38, 41) Local Levies (10, 38, 41)

3.)3.) State Computer Aid State Computer Aid

It is not an expenditure control or spending limitIt is not an expenditure control or spending limit..

REVENUE LIMIT: REVENUE LIMIT: DEFINITIONDEFINITION

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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

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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


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12. Base 3-Year Membership Average:

- Current Year (year you are computing)

- Previous Year

- 2nd Previous Year Base Average

- 3rd Previous Year

(3rd Friday in September FTE,

plus 40% of Summer School FTE)

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Example:

Fall 2003=857, Fall 2004=848, Fall 2005=834

Average = 846

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13. Base Per-Member:

Divide the Base by the 3-year membership just computed to get a Base Per Member.

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Example: $6,998,146 ÷ 846 = $8,272.04

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14. Allowable Per-Member Increase:

The Per-Member increase is determined by the State and applies to all districts.

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Example: For the 2006-07 Revenue Limit, this number was $256.93

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15. New Maximum Revenue Per Member:

Allowable Per-Member Increase is added to the Base Per-Member.

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Example: $8,272.04 + $256.93 = $8,528.97

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6. Current 3-Year Membership Average:

- Current Year

(year you are computing)

- Previous Year

- 2nd Previous Year

- 3rd Previous Year

(3rd Friday in September FTE,

plus 40% of Summer School FTE)


Current

Average

Example:

Fall 2004=848, Fall 2005=834, Fall 2006=815

Average = 832

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147. New Revenue Limit, No Exemptions:

New Maximum Revenue Per Member is multiplied by the Current 3-Year Membership Average.


Example: $8,252.97 x 832 = $7,096,103

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14 8. Recurring Exemptions:

- Prior Year Carryover (100%)

- Transfer of Service

- Transfer of Territory

- Federal Impact Aid Loss

- Recurring Referendum to Exceed


Example: $89,964

Transfer of ServiceTransfer of Service

NewNew costs related to costs related to newnew transfer-in pupils in specified transfer-in pupils in specified special education and limited English proficient programs special education and limited English proficient programs may be eligible for a revenue limit exemption.may be eligible for a revenue limit exemption.

- - Student has moved into your district from another Student has moved into your district from another Wisconsin Public School or county Birth to 3 Program Wisconsin Public School or county Birth to 3 Program

- Complete form on website: - Complete form on website: http://www.dpi.state.wi.us/sfs/transerv.htmlhttp://www.dpi.state.wi.us/sfs/transerv.html

- Involves getting verification of enrollment from transfer - Involves getting verification of enrollment from transfer districtdistrict

- Keep track of eligible students – get verifications throughout - Keep track of eligible students – get verifications throughout thethe year year

- Submit all verifications in one packet to DPI by July 1- Submit all verifications in one packet to DPI by July 1


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149. New Limit with Recurring Exemptions:


Example: $7,096,103 + $89,964 = $7,186,067

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14 10. Non-Recurring Exemptions:

- Non-Recurring Referendum to Exceed

- Declining Enrollment Exemption

- Other


Example: $408,819

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1411. New Revenue Limit with All Exemptions:


Example: $7,186,067 + $408,819 = $7,594,886

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1412. 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.


Example: $5,853,198

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1413. Allowable Limited Revenue to Come From

the Sum of:

- Fund 10 Levy

- Fund 38 Levy

- Fund 41 Levy

- Computer Aid


Example: $7,594,886 - $5,853,198 = $1,741,688

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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


Example: Sum Must not Exceed $1,741,688

……technically, we are done with the revenue technically, we are done with the revenue limit levies; however, we are not done with limit levies; however, we are not done with

determining the determining the totaltotal levy to be levy to be apportioned to the municipalities…apportioned to the municipalities…


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

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.


The revenue limit is a The revenue limit is a limit (or control) limit (or control) on the on the revenue a school district is entitled to revenue a school district is entitled to receive from:receive from:

1.) 1.) GeGeneral State Aidneral State Aid

(Equalization Aid) (Equalization Aid)

2.)2.) Local Levies (10, 38, 41) Local Levies (10, 38, 41)

3.)3.) State Computer Aid State Computer Aid

This is about 70% - 90% This is about 70% - 90%

of your total Fund 10 budget.of your total Fund 10 budget.

Points to Remember About the Points to Remember About the Revenue LimitRevenue Limit

Points to Remember About the Points to Remember About the Revenue LimitRevenue Limit

Does Does NOTNOT control other sources of revenue such control other sources of revenue such as:as:

- Referendum Debt Levy (Fund 39) - Referendum Debt Levy (Fund 39) - Community Service Levy (Fund 80)- Community Service Levy (Fund 80)- Categorical Aids- Categorical Aids- Grants- Grants- Fees- Fees- Gate Receipts- Gate Receipts- Donations- Donations

Certain numbers from the Revenue Limit Certain numbers from the Revenue Limit computation, together with salary and computation, together with salary and other local expenditure and revenue other local expenditure and revenue

budget estimates, serve as a guide for budget estimates, serve as a guide for the district as it moves through budget the district as it moves through budget

development, in particular, Fund 10.development, in particular, Fund 10.

Revenue Limit ComputationRevenue Limit Computation& Budgeting& Budgeting

REVENUEREVENUE LIMITLIMIT

Using This Data for BudgetingUsing This Data for Budgeting

Rev Lim Fund 10Line 18 Src 211

Line 15C Src 212Line 12 Src 621Line 17 Src 691

(yellowed lines represent the amounts that come from the

controlled portion of the Revenue Limit.)

The “Big Picture”The “Big Picture”

Revenue Limit Calculation

Budget PlanningPapers

3rd 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)

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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: REVENUE LIMIT: 2007-082007-08

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REVENUE LIMITREVENUE LIMITThe most up-to-date Revenue Limit worksheets can The most up-to-date Revenue Limit worksheets can

be found on the School Financial Services website:be found on the School Financial Services website:

http://www.dpi.wi.gov/sfs/index.htmlhttp://www.dpi.wi.gov/sfs/index.html

Under:Under:Late BreakingLate Breaking

Budget Development and PlanningBudget Development and PlanningWorksheets DPI-PrintedWorksheets DPI-Printed

BUDGET TIMELINE MODELBUDGET TIMELINE MODEL

Adapt this timeline Adapt this timeline

to your district’s activities.to your district’s activities.

Use at your discretion!!!!!Use at your discretion!!!!!

Make sure you know your contractual Make sure you know your contractual obligations with regard to layoff notices.obligations with regard to layoff notices.

Let’s take a break!Let’s take a break!

EQUALIZATION AID EQUALIZATION AID CALCULATIONCALCULATION

Equalization AidEqualization Aid

Why do you need to know how to calculate Why do you need to know how to calculate aid when DPI calculates it for you?aid when DPI calculates it for you?• Because you will be asked by your board Because you will be asked by your board

members, constituents and the mediamembers, constituents and the media• So you can make sure it’s accurate and, if So you can make sure it’s accurate and, if

it changes, figure out whyit changes, figure out why• Because you may want to do estimates Because you may want to do estimates

and “what ifs”…and “what ifs”…

Congratulations, it’s your lucky day!Congratulations, it’s your lucky day!

YOU ARE ELIGIBLE YOU ARE ELIGIBLE FOR UP TO $10,000 FOR UP TO $10,000

IN COLLEGE SCHOLARSHIPIN COLLEGE SCHOLARSHIP MONEY!!! MONEY!!!

(Not really. We’ll eventually connect this(Not really. We’ll eventually connect thisfake give-away to Equalization Aid.)fake give-away to Equalization Aid.)

Equalization Aid - How It WorksEqualization Aid - How It Works

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000

SCHOLARSHIP EXAMPLE VACATION

20% 80%50% 50%

Equalization Aid - How It WorksEqualization Aid - How It Works

How Did the College “Share” How Did the College “Share” in the Tuition?in the Tuition?

Compute actual scholarship amount.

What you could pay. $10,000 amount.

Compare, then

Equalization Aid FormulaEqualization Aid Formula

State “Shares” in District CostState “Shares” in District Cost Aid is Based on a District’s Ability to Pay, Aid is Based on a District’s Ability to Pay,

as Measured by Property Wealth per as Measured by Property Wealth per MemberMember

Basic premise: The more property wealth per member a district has, the less state aid

it will receive.

How Does the State “Share”How Does the State “Share”in District Costs?in District Costs?

Compute Equalized Aid

State Guaranteed Value Per Member

Compare, then

District Value Per Member

3 District Factors3 District Factors

1. Costs (“Shared Cost”)1. Costs (“Shared Cost”)

2. Wealth/Property Taxbase2. Wealth/Property Taxbase

3. Pupils (“Membership”)3. Pupils (“Membership”)

* * ** * *

All All PriorPrior-Year Data-Year Data

(2005-06 data is used for 2006-07 aid.)(2005-06 data is used for 2006-07 aid.)

Total General Fund (Fund 10) ExpendituresTotal General Fund (Fund 10) Expendituresplus (+)plus (+)

Total Debt Service Funds (Funds 38 & 39) Total Debt Service Funds (Funds 38 & 39) ExpendituresExpenditures

minus (-)minus (-)all local misc. revenue, grant revenue,all local misc. revenue, grant revenue,

and categorical aid. and categorical aid.

Known as “Shared Cost”Known as “Shared Cost”

1. District Factor – Costs1. District Factor – Costs (prior year)(prior year)

2. District Factor - 2. District Factor - Wealth/TaxbaseWealth/Taxbase

(prior year)(prior year)

Property Taxbase is Used to Property Taxbase is Used to

Determine Wealth and Ability to Determine Wealth and Ability to

Support District ExpendituresSupport District Expenditures

Uses Equalized Valuation Uses Equalized Valuation

or Fair Market Valueor Fair Market Value

((NOTNOT Assessed Value) Assessed Value)

3. District Factor – Membership3. District Factor – Membership (prior year) (prior year)

F.T.E. = full-time equivalentF.T.E. = full-time equivalent2 halftime (.50) kdg students = 1 F.T.E.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, (2006-07 aid uses September 2005, January 2006,

and Summer 2005 numbers)and Summer 2005 numbers)

Summer School = 48,600 minutes = 1 F.T.E.

MembershipMembership

Who can you count for aid membership?Who can you count for aid membership?Generally, residents for which you are Generally, residents for which you are financiallyfinancially responsible - i.e. you are paying for the student’s responsible - i.e. you are paying for the student’s education.education.

- - Start with seat count.Start with seat count.- Add in your residents who are elsewhere (and for - Add in your residents who are elsewhere (and for which you are financially responsible).which you are financially responsible).- Subtract non-residents being educated in your - Subtract non-residents being educated in your seats. seats.

(Double-check tuition waiver situations, and watch (Double-check tuition waiver situations, and watch age limits.)age limits.)

Aid membership also includes:Aid membership also includes:-- Youth Challenge StudentsYouth Challenge Students-- Part-time Attendance F.T.E. of Part-time Attendance F.T.E. of Private/Home-Schooled StudentsPrivate/Home-Schooled Students-- Foster Group Home StudentsFoster Group Home Students

See:See:http://www.dpi.state.wi.us/sfs/membrpt2.htmlhttp://www.dpi.state.wi.us/sfs/membrpt2.html

MembershipMembership

Crucial Statistic:

Value per Member =

Total Equalized Value ÷ Membership

Value Per MemberValue Per Member

01,0002,0003,0004,0005,0006,0007,0008,000

9,00010,00011,00012,00013,00014,00015,00016,00017,000

DISTRICT VALUE PER MEMBER

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Positive Primary Aid

Positive Secondary Aid

Positive Tertiary Aid

Equalization Aid – 3 Levels

District Value per Member

10% 90%

83%17%

50%50%Negative Tertiary Aid

Negative Secondary Aid

No Aid

01,0002,0003,0004,0005,0006,0007,0008,000

9,00010,00011,00012,00013,00014,00015,00016,00017,000

DISTRICT VALUE PER MEMBER

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Positive Primary Aid

Positive Secondary Aid

Positive Tertiary Aid

Equalization Aid – 3 Levels

Negative Tertiary Aid

Negative Secondary Aid

No Aid

So, how does this work for my district?So, how does this work for my district?

Percentage Method on the WebsitePercentage Method on the Website

http://http://www.dpi.wi.gov/sfs/index.htmlwww.dpi.wi.gov/sfs/index.html

Under:Under:

Budget Development and PlanningBudget Development and Planning


How can I determine where I am in the aid How can I determine where I am in the aid formula?formula?

Aid Formula Position on the WebsiteAid Formula Position on the Website


Under:Under:



How can I explain changes in my district’s aid?How can I explain changes in my district’s aid?

7-Year History on the Website7-Year History on the Website


Under:Under:


Equalization Aid – Equalization Aid – Explaining Changes Across TimeExplaining Changes Across Time

How can I figure an aid estimate for 07-08?How can I figure an aid estimate for 07-08?

Simplified Percentage Method Simplified Percentage Method of Estimating Equalization Aidof Estimating Equalization Aid


NORMALLYNORMALLY Under: Under:Worksheets/ExecutableWorksheets/Executable



You don’t have the data you need right You don’t have the data you need right now to make an accurate estimate of your now to make an accurate estimate of your 2007-08 aid – it’s a State budget year, and 2007-08 aid – it’s a State budget year, and

the budget details will probably not be the budget details will probably not be decided upon until the summer.decided upon until the summer.

It’s to early for DPI to provide accurate It’s to early for DPI to provide accurate guarantees.guarantees.


Equalization Aid,Equalization Aid, Line 12 of the Line 12 of the Revenue Limit WorksheetRevenue Limit Worksheet

On On October 15, 2007 DPI will certifyOctober 15, 2007 DPI will certify an an amount to districts. It is the amount of aid the amount to districts. It is the amount of aid the districts will receive in 2007-2008districts will receive in 2007-2008

We will provide the required estimate shortly We will provide the required estimate shortly before July 1before July 1

Place that amount on line 12 of the 2007-08 Place that amount on line 12 of the 2007-08 revenue limit worksheet.revenue limit worksheet.

Community Service Fund Community Service Fund (Fund 80)(Fund 80)

Community Service FundCommunity 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.

Community Service FundCommunity 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

Community Services FundCommunity 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)

Community Service Fund Community Service Fund Questions to Ask….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?

Community Service Fund Community Service Fund Questions to Ask….Questions to Ask….

If you can say “yes” to all those questions, the program may be appropriate for inclusion in Fund 80.

Common Community Service Common Community Service Fund ActivitiesFund 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

SHORT TERM SHORT TERM BORROWINGBORROWING

Short Term BorrowingShort Term Borrowing

PURPOSE:

Cash flow

It can actually be for any legal purpose

Be Careful!


AUTHORITY:

Wisc. Stat. 67.12(8)

An annual meeting must adopt levies

DPI certification of revenues is not required


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!


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!


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 30th, if note is still outstanding)

Receive Interest - Increase Cash, Increase Source 10R 280


RED FLAGS

Borrow only what you need

Beware of federal limitations (rules of arbitrage)

Avoid tax money pledged to debt service

Seek legal counsel

Other Post Employment Other Post Employment Benefits (OPEB)Benefits (OPEB)

Other Post Employment Other Post Employment Benefits (OPEB)Benefits (OPEB)

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

OPEBOPEB

When must a district implement the GASB When must a district implement the GASB statements?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

OPEBOPEB

How does OPEB affect a district’s financial statements?

Fund

Financial

Statements

District-wide

Financial

Statements

OPEBLiability

OPEBOPEB

Resources:

• Kathy Guralski – 608-266-3862

http://www.dpi.wi.gov/sfs/emp_benefit_trust_fund.html

Lunchtime!!!!!!!!Lunchtime!!!!!!!!

Let’s Talk About….Let’s Talk About….

Counting Students

Days & Hours of Instruction

WUFAR

Special Education

Comparison Measures

Counting StudentsCounting Students

Counting StudentsCounting Students

3rd Friday in September Pupil Count

2nd Friday in January Pupil Count

Summer School Report

Youth Challenge Academy Pupil Count

June Census

PI-1563 Pupil Count ReportPI-1563 Pupil Count Report

Two Count Dates:

• September PI 1563 Pupil Count Report 3rd Friday in September

• January PI 1563 Pupil Count Report 2nd 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.)

General Counting GuidelinesGeneral 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………

PI-1563 Pupil Count ProcessPI-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.

=

Adjusted Head CountAdjusted 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.

ResourcesResources

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

Summer School FTESummer 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.

Summer SchoolSummer 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.

Youth Challenge AcademyYouth 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.

Youth Challenge AcademyYouth 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

FTE for Revenue Limit PurposesFTE 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

FTE for Equalization Aid PurposesFTE 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.

On-Line FTE ReportsOn-Line FTE Reports

On-Line FTE ReportsOn-Line FTE Reports

Membership AuditsMembership 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

Membership AuditsMembership 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.

June CensusJune 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

June CensusJune 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?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.

Days and Hours of Days and Hours of InstructionInstruction

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).

Days of Instruction ExampleDays 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.

Days of Instruction ExampleDays 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.

Hours of InstructionHours 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

Waiver for Days and HoursWaiver for Days and Hours

The school district may request a waiver to The school district may request a waiver to the days requirement. The request should the days requirement. The request should be made to:be made to:

• Michael George, Content and LearningMichael George, Content and Learning(608) 266-2364(608) [email protected]@dpi.state.wi.us

There is no waiver process for the hours of There is no waiver process for the hours of instruction.instruction.

WUFARWUFAR

WUFARWUFAR - 101 - 101

Wisconsin Uniform Financial

Accounting Requirements

http://dpi.gov/sfs/wufar.html

WUFAR StructureWUFAR 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)

WUFAR Account FormatWUFAR Account Format

Fund Location Object/ Function Project Source

-------------------------------------------------------

XX XXX XXX XXXXXX XXX

flexibility limitedflexibility

Account DimensionsAccount 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

Other Account DimensionsOther 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.

WUFARWUFAR

The WUFAR Accounting Structure allows for:

• Functional Costing

• Programmatic Costing

WUFAR – Identifying Costs?WUFAR – Identifying Costs?

Ex: HS Music Program Expenses

Instructional Expenses

Staff Training

Maintenance on Equipment

Transportation

WUFAR Account FormatWUFAR Account Format

Fund Location Object/ Function Project Source

--------------------------------------------------------------- XX XXX XXX XXXXXX XXX

flexibility limitedflexibility

WUFAR – Identifying Costs?WUFAR – Identifying Costs?

Instruction 10 -400 -xxx -125000-790 Staff Trg. 10 -400 -342 -221300-790 Maintenance 10 -400 -320 -254410-790 Transport. 10 -400 -341 -256740-790

-allows for both programmatic and functional costing-

Fund Location-HS Object Function Program-Music

Special EducationSpecial Education

Special Education Expense Special Education Expense CodingCoding

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


Function Number

• Identifies the special education program

152000 – Early Childhood158000 – Cross Categorical156600 – Speech & Language159200 – Substitutes


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

Project CodingProject Coding

The key to identifying the correct project code is ……

……understanding that the project code identifies how the expense is to be ultimately funded.

Project Number – 011 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

Project 011-Aidable Expense Project 011-Aidable Expense ExampleExample

The school district incurs salary & benefit expenses for an appropriately licensed Early Childhood teacher, funded w/ local dollars.

Fund Object Function Project

27 100/200 152000 011

Project Number - 019Project 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

Project 019-Non-Aidable Project 019-Non-Aidable Expense ExampleExpense Example

The school district purchases supplies for an early childhood program w/local dollars.

Fund Object Function Project

27 410 152000 019


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.

Project 340 Grant Expense Project 340 Grant Expense ExampleExample

The LEA purchases supplies for an early childhood program that is reimbursed by grant dollars direct to this LEA.

Fund Object Function Project27 410 152000 340


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.

Project 599 Grant Expense Project 599 Grant Expense ExampleExample

The LEA purchases supplies for an early childhood program that is reimbursed by grant dollars direct to this LEA.


Project Number – 315/317Project 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)

Project 315/317Grant Expense Project 315/317Grant Expense ExampleExample

The LEA purchases supplies for an early childhood program that is reimbursed by another school district using federal grant dollars


Project Number – 515/517Project 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

Project 515/517Grant Expense Project 515/517Grant Expense ExampleExample

The LEA purchases supplies for an early childhood program that is reimbursed by a CESA or CCDEB using federal grant dollars



Use this project on all original object 100-Use this project on all original object 100-900 expenditures when:900 expenditures when:

• The LEA is using only local dollars to fund the The LEA is using only local dollars to fund the expenditure (no grant money reimbursement)expenditure (no grant money reimbursement)

• The expenditure is directly reimbursed by a The expenditure is directly reimbursed by a payment from CESA (using CESA local payment from CESA (using CESA local dollars – no grant money)dollars – no grant money)

Project 091 CESA Package Project 091 CESA Package Program ExampleProgram Example

The host district of a CESA package program purchases supplies for an early childhood program that is reimbursed w/local dollars by CESA.


Project Number – 092 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)

Project 092 CCDEB Package Project 092 CCDEB Package Program ExampleProgram 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.Fund Object Function Project

27 410 152000 092

Special Education Categorical Special Education Categorical AidAid

Entities eligible to receive state special education categorical aid:• School Districts

• CESAs

• CCDEBs

• 2R Charter Schools


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)


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.


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%)

Special Education Categorical Special Education Categorical Aid on “HOLD?”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

No Valid LicenseNo Valid License

““NNo Valid License” listing on June 30th

• 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.

Allocation of salaries and Allocation of salaries and benefits to fund 27benefits 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

Special Education Fiscal Special Education Fiscal ReportingReporting

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.

Special Education Fiscal Special Education Fiscal ReportingReporting

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.

Grant Payments Between Grant Payments Between EntitiesEntities

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 = RevenuesProject 517 Expenses = Source 517 Revenue


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


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.


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

Grant Payments Between Grant Payments Between Entities ExampleEntities 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)

Deductible ReceiptsDeductible 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.


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


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


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.

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

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)

Special Education Reporting Special Education Reporting Changes Ahead!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.

COST PER PUPIL: THE COST PER PUPIL: THE OLD “COMPARE” OLD “COMPARE”

GAMEGAME

Basic Per Member CostsBasic 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

What is Shared Cost?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.)

What is Comparative Cost?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

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 CostComparative Cost

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


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 It should be noted that food and community service activities are usually funded with fees and other activities are usually funded with fees and other program revenue, requiring little or no property tax program revenue, requiring little or no property tax subsidy.)subsidy.)


Other GroupingsOther GroupingsThere 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/

Questions?Questions?

Visit our web site:

http://dpi.wi.gov/sfs/index.html

Or call: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

Documents

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