Florida Department of Education March 2014

1. Florida Department of EducationMarch 2014 Program Cost Report Workshop Tallahassee Thomas Kauffman and Janice Hutchison

2. http://doedemo.rapsg.com/CostReport/SignOn User: guest01, guest02, … Password: guest01, guest02, … Program Cost Report – Web Version 2.0For internet access

3. USERS OF THE PROGRAMCOST REPORT • SCHOOL BOARDS • EFAA Administrative Costs • PARENTS • EFAA School Financial Report • DOE • FEFP Cost Factors • Equity in School-level Funding • Return on Investment (ROI) • Program Expenditures • District Profiles • LEGISLATORS • FEFP Funding • Transparency Florida • DJJ Annual Report • FEDERAL GOVERNMENT • Biennial Civil Rights Data Collection • MEDIA • DISTRICT PERSONNEL

4. Rule 6A-1.0071, F.A.C. • 6A-1.0071(2) - The annual financial report and all official parts (Program Cost Report) thereof must be submitted to the Commissioner no later than September 11th of each year. VISIT WEBSITE TO VIEW ENTIRE RULE: https://www.flrules.org/gateway/ruleNo.asp?id=6A-1.0071

5. Rule 6A-1.014, F.A.C. • Costs are identified on the basis of: • Fund • Function • Object • Facility • Defines school level costs. • Defines district level costs. • VISIT WEBSITE TO VIEW ENTIRE RULE: • https://www.flrules.org/gateway/ruleNo.asp?id=6A-1.014

6. Section 1010.20, F.S. • Each school district shall account for expenditures of all state, local, and federal funds on a school-by-school and a district-aggregate basis • Each district shall report on a school-by-school and on an aggregate district basis expenditures for each program funded • The Commissioner shall present to the Legislature, prior to the opening of regular session each year, a district-by-district report of the expenditures reported.

7. Section 1010.20, F.S. Program 101 (K – 3) = 90%Program 102 (4 – 8) = 80%Program 103 (9 – 12) = 80%Programs 111, 112, 113, 254, 255 (ESE) = 90%Program 300 (career education 7 – 12) = 80%Program 130 (students at risk) = 80%Juvenile Justice Programs (DJJ) = 90% Program expenditure requirements

8. Section 1010.20, F.S. • Workforce Development appropriations are to be spent only on Workforce Development as measured by Program Cost Report (Total Program Costs).

9. Section 1010.21, F.S. • Shall assess district indirect costs only for services received by the program or institution against which such costs are assessed. • Shall identify one basis for the assessment of such cost and shall maintain the same basis for assigning such cost to each program or institution. • Also, refer to Rule 6A-1.014, F.A.C. and the Redbook, Chapter 5.

10. Section 1010.215, F.S. • Defines administrative expenditures. • Defines instructional expenditures. • EFAA Report • Administration Expenditures • Instructional Expenditures • District Employees by Classification • Costs of Administration per K-12 UFTE

11. Section 1010.215, F.S. • School Financial Report • Districts prepare on a school-by-school basis. • Make available to the public. • Released to the districts in NWRDC downloads. • Memorandum to Finance Officers with data layout. • Requires districts to identify revenue and expenditure amounts from their local files to complete.

12. Section 1011.69, F.S. • District school boards shall allocate to schools an average of 90% of the funds generated by all schools and guarantee that each school receives at least 80% of the funds generated by that school based on the FEFP and the GAA. • Unused funds allocated to a school at the end of the fiscal year remain with the school – they do not revert back to the district. • Shall be recalculated throughout the year based on the revised FEFP calculations.

13. Sections 1009.22 and 1011.80, F.S. • Program 341 • Expenditures for the continuing workforce education programs provided by the Florida College System institutions or school districts must be fully supported by fees. • The AFR online input requires the district to certify that 100% of the program’s total costs are supported by student fees. • Workforce Development appropriations to be spent only on Workforce Development as measured by Program Cost Report (Total Program Costs).

14. Section 1002.33, F.S. • Section 1002.33(5) – Sponsor Duties • (b)1.b. – The sponsor shall monitor the revenues and expenditures of the charter school and perform the duties provided in s. 1002.345. • (b)1.d. – The sponsor’s policies shall not apply to a charter school unless mutually agreed to by both the sponsor and the charter school.

15. Section 1002.33, F.S. • Section 1002.33(9) – Charter School Requirements • (g) – In order to provide financial information that is comparable to that reported for other public schools, charter school are to maintain all financial records that constitute their accounting system: • 1. In accordance with the accounts and codes prescribed • in the Red Book; or • 2. May elect to follow GAAP standards for not-for-profit • organizations, but must reformat this information for • reporting according to this paragraph.

16. Section 1002.33, F.S. • “Charter schools shall provide annual financial report and program cost reporting information in the state-required formats for inclusion in district reporting in compliance with s. 1011.60(1).”

17. Section 1002.345, F.S. • Expedited Review Requirements • Failure to provide for an audit. • Failure to comply with reporting requirements. • Deteriorating financial condition identified through an audit. • Notification that one or more of these conditions have or will occur if action is not taken to assist the charter school or charter technical center.

18. Red Book, Chapter 5 • Two central elements: • Identification of direct program costs and aggregation of these costs by program, and • Attribution of indirect costs to programs. • Expenditures are categorized by: • Fund • Function • Object • School • Program • Grant / Project

19. Red Book, Chapter 5 • Direct teacher salary distribution methodology • Indirect cost attribution basis • Attribution factors and tables • Staff figures are based on the full-time equivalent teachers by program. • “Full-time” is defined as a teacher serving a regular teaching contract for the school year. • Short courses and summer courses must be equated to the regular term.

20. Red Book, Chapter 5 • Special considerations • Paraprofessionals • Contracted services • ESE programs • Adult Education • Cost reporting process • Description of attribution process

21. How is the Program Cost Report Created? • District Financial Records • General Fund Expenditures • Special Revenue Expenditures • (Include Fund 490 as a reconciling item on Form 6) • Payroll data for teachers • Surveys of Student / Teacher Data • WDIS Data

22. A separate cost report is created for each school by fund. An aggregated report is created at the district level by fund. The aggregated reports will include a reconciliation line used to balance each fund to the annual financial report (AFR). Transportation and Food Services will be reported on a school level basis, but will not be attributed as costs to programs. How is the Program Cost Report Created?

23. Local Analysis and Programming Requirements • There are a number of circumstances in which the district’s student records will not completely or accurately reflect all the teachers paid. These require manual intervention:

24. Direct costs are classified into major objects as defined in the Red Book. Direct costs of programs are those costs identified with Function 5000 instruction – except 5500 and 5900. Indirect costs are those which are of such a nature that they cannot be readily or accurately identified with a program or instructional function. Indirect costs are classified as school level or district level costs. Direct vs. Indirect Costs

25. Adult Education Plant Operating Costs – When separate school numbers are assigned to day and evening programs conducted in the same plant, operating (utilities and custodial) costs shall be attributed to both schools. Director of Adult Education – When the director also performs the function of principal of an adult school, administrative costs shall be split between school level and district level indirect Direct vs. Indirect Costs

26. Two factors are involved in determining required attribution bases. Causal relationship between an expense item and the program(s) benefited. Certain expenditures tend to increase or decrease as the students, staff or other factors vary. A basis may be preferred in terms of the causal relationship, but the associated cost to isolate the expenditure data may not be justified by the additional degree of accuracy derived. Indirect Attribution Factors

27. Indirect attribution factors: FTE – Functions 7600 and 7800 Space – Functions 7400, 7900 and 8100 Staff – all other Functions Functions 7600 and 7800 are attributed to schools, not programs. One attribution table is not adequate for accurate distribution of all expenditures. Indirect Attribution Factors

28. 17 changes identified as “High” priority for correction. Florida Education Identifier. WDIS Local Identification Number. Printing reports: Page slippage has been corrected. District will set type – PDF or HTML. District will set number of pages. Removing schools and tables has been modified. 2014 Software Changes

29. Financial Load Check box inserted into Install Options. District to determine if they are going to insert Financial Load programmatically or manually. Once data is posted it will permit manual changes only. To “re-run” the financial load programmatically, the box must be rechecked. If not checked, Step 4 will not be permitted. Benefits “P” – no longer case sensitive. 2014 Software Changes

30. Staff Data Edit report changes: Negative Percent Time in Mod corrected. ESOL Sep Mod Warning message modified allowing user to define display. New tab option to access teacher input data without exiting the report. Add school name to report display. Cost Data Edit modified to display message “No Errors Exist” instead of a blank page. Functional Accounting report header modified to display “Direct”, “School Indirect” and “District Indirect.” 2014 Software Changes

31. Fiscal Year Sign-On displayed at the top of the screen. CSV download modified to display fiscal year based on fiscal year sign-on. SATSY “Unknown” teacher CSV file download and “Copy” header record data corrected. Non-district facility check box inserted into School set-up. 25 changes have been identified as “Low” priority for future inclusion 2014 Software Changes

32. Year & Version Number / Release Code

33. New Install Options – Set-up

34. New Option in School Set-Up

35. Suppress ESOL Warning

36. Control Record & Schools File Upload To download the Master School ID Database (MSID) file: - http://www.fldoe.org/arm/ - click “Master School ID Database (MSID)” - click “Download Files” - click “Active Schools”

37. Data Needs • Student Course / Teacher Course Records • Payroll Records • FTE • Additional Attribution Tables • Financial Data • Adjusted Revenue File

38. Payroll Upload File • Local Payroll File • Comma Delimited File (CSV). • Job number field is very important. • If a local employee ID number is used instead of the SSN, the teacher records must have reported this optional local employee ID. • WDIS teacher records will now support a local employee ID number. • A new field has been included for the Florida Teacher ID number.

39. Financial Load Upload File • Local Financial File • Comma Delimited File (CSV). • Used to upload finance data to Forms 4A, 5, and 6. • A new field has been installed into the Install Options page requiring selection of installing the financial load programmatically or manually.

40. SATSY refers to Phase I of the overall cost reporting process. Uses data from student surveys and payroll to identify teachers with programs. Allocates direct teacher salary to program(s) served. Calculates a staff calculation for each teacher. Allocates space used by each teacher to program(s) served. Co-teachers, team teachers, lab teachers, and itinerant teachers serving more than one school may require manual intervention to properly capture the data. Salary Attribution System

41. Salary Attribution System • Substitutes unless long-term contracted • Terminal Leave Pay • Teachers in programs not funded by FEFP or Workforce (i.e., Recreation, Pre-K Basic, VPK, Migrant Pre-K, Child Care…) • Paraprofessionals • Administrators and Guidance Counselors unless actually teaching • Media Specialists unless actually teaching

42. Phase I Flowchart DOE SURVEYS REGULAR & WDIS, SPACE, PAYROLL STAFF DATA EDIT EMPLOYEE PROFILE ATTRIBUTION BASE EDIT SCHOOL DISTRICT SUMMARY PHASE II – TABLE CREATION

43. Entry Logic - Direct Costs • Direct salaries for substitute teachers are to be attributed on a Staff basis. • Aides exclusively assigned to particular programs shall be identified to those programs. • Direct salaries for classroom aides serving more than one program are to be attributed on a staff basis, IF the time of service for each program is not readily determinable.

44. Entry Logic - Direct Costs • Salary supplements generally should be distributed in the same manner as regular pay. • When the supplement is not related to regular duties, a Staff attribution is used to distribute. • Other salary amounts (conversion of sick leave on retirement and sabbatical leave) are to be handled on a district-wide staff attribution. • Direct costs are aggregated from program level (control 7XXX) to school level (control 7000) to district level (control 1000).

45. Entry Logic - Direct Costs • Control 1000 salaries must be no less than the sum of all control 7000 salariesotherwise an error message will be displayed. If less, than this leads to a negative attribution. • The difference between the Control 1000 costs and the aggregated total of the Control 7000 costs by category produces residual that is spread to all schools assigned to that table.

46. SATSY $ CALCULATION $ • 1 STAFF UNIT = 196 DAYS • 98 DAYS + 98 DAYS = 196 DAYS = 1 STAFF UNIT • 98 DAYS / 196 DAYS = .5 • $25,000 X .5 = $12,500 • 100% TIME / 5 MODULES = .2 • $12,500 X .2 = $2,500 (WORTH FOR EACH MODULE) • 103 = 3 MODULES X $2,500 = $7,500 • 300 = 2 MODULES X $2,500 = $5,000 • TOTAL 5 PERIODS OF 1 SURVEY (98 DAYS) = $12,500

47. Teacher Salary Error – Multiple Jobs

48. Teacher Salary Error – Multiple Jobs

49. Teacher Salary Error – Multiple Jobs

50. Teacher Salary Error - Hourly Rate