School Financial Services Update

1. School Financial Services Update • Ask questions any time • School Financial Services • SAFS System Upgrade • FY 06–07 Accounting Manual • FY 06–07 Budget Update • FY 05–06 F196 Update • Other topics, comments, questions?

2. SAFS System Upgrade Project • Why? The current system is old!! • Who, What, When? A 2-part conversion using $1.9 million appropriated in 05-07 budget. • Part 1, to be completed by mid-September, will “transform” the code from COBOL to C# and move it from the old DEC Alpha server to new servers in a web-based environment. • Part 2, to be completed by summer 2007, will make other enhancements and changes to the new system. • WSIPC and the ESDs are already involved and we will assemble user-groups for input in the process. • We will run parallel during 2006–07 but the details are not set. STAY TUNED!!

3. School District Accounting Manual Updates for Fiscal Year 2006–2007 • Christie M. Hazlett • Supervisor, School District & ESD Accounting

4. 2006–07 Accounting Manual Changes • Chapter 3 – Accounting Guidelines • Added definitions and guidelines for: • Carry Over of Revenues • Deferred Revenues • Short Term Obligations • Moved the following sections from Chapter 1 to this Chapter: • Added Shared Service Arrangements section. • Added General Fund Fundraising section. • Added Indirect/Direct Rate Accounting section (same as in ABFR).

5. 2006–07 Accounting Manual Changes • Chapter 3 – Accounting Guidelines • Updated Interlocal Agreement guidelines: • RCW 39.34.040 only requires the interlocal agreement be filed with the County Auditor. • Currently the accounting manual states that the agreements needs to be filed with the City Clerk, OSPI, and the Secretary of State. This is not necessary unless there is a board policy.

6. 2006–07 Accounting Manual Changes • Chapter 5 – Revenue Accounts • Inactivated 4171 Traffic Safety Education (Inactive Account since FY 02–03). • Added 4163 Promoting Academic Success (GF). • Record revenue from OSPI for remediation for students who have not met standards in one or more content areas of the WASL in the spring of their tenth grade year and on each retake thereafter.  • School districts may carry over from one year to the next up to 20% of funds allocated under this program; however, carryover funds shall be expended for promoting academic success programs.

7. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts • 63 Promoting Academic Success – State • Record expenditures for remediation for students who have not met standard in one or more content areas of the WASL in the spring of their tenth grade year and on each retake thereafter.  • The funds may be used for extended learning activities, including summer school, before and after school, Saturday classes, skill seminars, assessment preparations, and in-school or out-of-school tutoring.  • Extended learning activities may occur on the school campus, via the internet, or at other locations and times that meet student needs. Funds allocated under this section shall not be considered basic education funding and shall not supplant funding for existing programs and services.

8. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts (cont.) • Updated Activity 12 – Superintendent’s Office: • Deleted public information from the description. • Added Activity 15 – Public Relations: • This activity consists of writing, editing, and other preparation necessary to disseminate educational and administrative information to parents, students, staff, and the general public through direct mailing, the various news media, e-mail, internet web sites, and personal contact. • Opened in Programs 51, 52, and 97. • The same object codes as in Activity 12 will be allowed in Activity 15.

9. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts (cont.) • Updated Activity 64 – Maintenance: • Include expenditures for moving portable structures and maintenance of service systems, including the repair and replacement of heating systems, electric lighting systems, bells, clocks, intercommunication systems, network and voice systems, sewers, fire safety systems, plumbing systems, and elevators.

10. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts (cont.) • Updated Activity 72 – Information Systems: • Include the operation of the district’s network including server equipment, technology staff, maintenance agreements, internet connection fees, right-of-way fees, content filtering, and network security.

11. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts (cont.) • Added Activity 21 – Supervision to Programs 88 (Day Care) and 89 (Other Community Services).

12. 2006–07 Accounting Manual Changes • Chapter 6 – Expenditure Accounts (cont.) • Transportation Vehicle Fund Expenditures (Section 10) • Added descriptions to the following Program, Activity, and Object Codes: • Program descriptions: • 97 Districtwide Support • These are shared expenditures related to operations of the school district as a whole rather than any particular program. • 99 Transportation • Record expenditures for bus purchases, major repair, rebuilding and related debt service incurred for pupil transportation.

13. 2006–07 Accounting Manual Changes • Transportation Vehicle Fund Expenditures (Section 10) (cont.) • Activity Code descriptions: • 57 - Cash Purchase or Major Rebuild of Buses • Record cash expenditures for the purchase or major rebuild of buses to this activity. (Major rebuild requires OSPI approval). • 58 - Contractual Purchase or Major Rebuild of Buses • Record contractual service expenditures for the purchase or major rebuild of buses to this activity. • 83 Interest • Record warrant interest and all other interest expenditures, including interest on conditional sales contracts, purchase agreements, and interfund loans to this activity. • 84 Principal • Record the principal portion of matured debt to this activity.

14. 2006–07 Accounting Manual Changes • Transportation Vehicle Fund Expenditures (Section 10) (cont.) • Activity Code descriptions: • 85 Debt-Related Expenditures • Record expenditures necessary to issue debt. Also record expenditures made to the U.S. Treasury rebating arbitrage earnings. • Object Codes descriptions: • Object 7 Purchased Services • For description, please refer to chapter 6, section 6, page 5, as appropriate for qualified expenditures in the TVF. • Object 9 Capital Outlay • For description, please refer to chapter 6, section 6, page 7, as appropriate for qualified expenditures in the TVF.

15. 2006–07 Accounting Manual Changes • Chapter 7 – Journal Entries • New sections added: • Section 11 – Capital Lease • Section 12 – Short Term Obligation • Section 13 – Accounting for Bond Issues and Refundings

16. 2006–07 Accounting Manual Changes • Appendix A – Glossary • Check it out when you get the update – lots and lots of new terms added.

17. 2006–07 Accounting Manual Changes • Appendix B – Notes to the Financial Statements • Added Agency Fund description to Note 1b. • Agency Funds. These funds are used to account for assets that the district holds for other agencies in a custodial capacity.

18. How To Contact Me: • Christie Hazlett, Supervisor, School District and ESD Accounting • 360-725-6303 • chazlett@ospi.wednet.edu • If you have suggestions or comments on the School District Accounting Manual – please let me know!

19. FY 06–07 Budget Update Mike Dooley Supervisor, School District/ESD Budget (360) 725-6305 mdooley@ospi.wednet.edu Live link to Mike sitting back at the office!

20. FY 06-07 Budget Update • F195/F203 Status: • Both systems are available now. • PAS (Promoting Academic Success) Program 63 and revenue account 4163 were added in April. If a budget extension is required to create capacity for the 05–06 PAS summer program, OSPI recommends using revenue account 4100 and expenditure account 69 in the F-200 process. • ABFR Status: • ABFR Handbook is complete and on our website at http://www.k12.wa.us/safs/INS/ABF/0506/hb.asp

21. FY 05–06 F196 Update Pam Peppers Supervisor of School District/ESD Financial Reporting (360) 725-6304 ppeppers@ospi.wednet.edu

22. FY 05–06 F196 Update • Indirect Cost Rate Calculation-additional guidance for the distorting and indirect expenditure manual input items. • GL 536, Other Financing Uses – Transfers Out is now open on the Statement of Revenue, Expenditures and Changes in Fund Balance report and the Budgetary Comparison Schedules (Item 533). GL 535, Other Financing Uses (Item 5603 and 5613) is still open in the DSF. • Traffic Safety Education input item numbers have been removed from the F-196. • Expenditures recorded in Program 63 and revenue account 4163, Promoting Academic Success, have been added to the 05–06 F-196.

23. Financial Reporting Update • 2004–05 Statewide SD/ESD Financial Reporting Summary is complete and on our website at http://www.k12.wa.us/safs/PUB/FIN/0405/fs.asp. Section 3 reports are in pdf and MS Excel format. • 5-Year Financial history reports have also been updated and posted to our website at http://www.k12.wa.us/safs/FiveYearReports.asp.

24. Maintenance of Effort and Recovery and Carryover Template • The Federal Cross-Cutting MOE tests are complete and the 04-05 vs. 05-06 template has been posted to our website under Training/Tools at http://www.k12.wa.us/safs/TT/tt.asp. This template can be used to test mid-year MOE as well as assisting districts during the 06–07 budget process. • The Special Education MOE tests are also complete. The template will be posted to our Training/Tools website soon. • Steve Shish has updated the 2005–06 Recovery and Carryover Spreadsheet through April on our website at http://www.k12.wa.us/safs/TT/tt.asp.

25. SDAAC Update • Meetings are scheduled now through December 2006 for the 2007–08 SD Accounting Manual Updates. • http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp • Any suggestions for projects?

26. Thank you for coming • Other topics of discussion? • Comments? • Questions