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DPI Update At the Skyward Conference April 8, 2013 Gene Fornecker and Michele Tessner

DPI Update At the Skyward Conference April 8, 2013 Gene Fornecker and Michele Tessner http://sfs.dpi.wi.gov/. UPDATES:. WUFAR OPEB Referendum Information. WUFAR. http://sfs.dpi.wi.gov/sfs_wufar Latest WUFAR document Accounting Issues and coding examples

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DPI Update At the Skyward Conference April 8, 2013 Gene Fornecker and Michele Tessner

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  1. DPI Update At the Skyward Conference April 8, 2013 Gene Fornecker and Michele Tessner http://sfs.dpi.wi.gov/

  2. UPDATES: • WUFAR • OPEB • Referendum Information

  3. WUFAR • http://sfs.dpi.wi.gov/sfs_wufar • Latest WUFAR document • Accounting Issues and coding examples • Allowable account classifications by fund • Summary of changes per revision

  4. WUFAR • Balance Sheet Accounts—no changes • Revenue Accounts • Delete: • Source 956, Plan Member Contributions—HSA • Add: • Source 959, Other Contributions • Fund 73, to account for other trust fund contributions including termination benefits such as the conversion of sick leave upon retirement

  5. WUFAR • Expenditure Accounts • New Account: • Object 994, Trust Fund Disbursements—Implicit Rate Subsidy (used with Function 420000) • To account for the payment of implicit rate subsidy from Fund 73 • Allowable combinations: • 80E 420 310000 • 80E 420 390000 • To allow “Apparel” to be coded to Community Service Fund

  6. WUFAR • Allowable combinations: • 73E 310 230000 • To account for legal expenses in Fund 73 • 72E 310 252000 • To account for investment fees in Fund 72

  7. WUFAR • Other Changes/Clarifications: • Source 971—include P-Card refunds even if relates to current fiscal year • Source 972—includes any “Sharing of Non-Manufacturing Omitted Property Taxes” • Object 290—Include any payments of ‘cash in lieu of health insurance’ (obj 296)

  8. WUFAR • Function 299000, Other Support Svcs • Include: • Private school training funded by Title 1 • Family literacy services including child care costs during parent involvement activities • Title 1 Spotlight School payments to neighboring schools

  9. WUFAR • Clarification: • Object 310, Personal Services • Includes stipend payments for both support and instructional activities • Object 370, Payments to Non-Governmental Agencies and Individuals • Includes payments to individuals for purchased instructional services (used with 431000/436000)

  10. WUFAR • Object 993, Trust Fund Disbursements-HRA • Removed reference to HSA accounts • Object 240, Health Insurance • Includes contributions to an active employee current HRA/HSA benefit (Object 249)

  11. WUFAR • Source 951, District Contribution—OPEB and Supplemental Pension Type (Stipends) Benefits • Expanded definition to include post retirement insurance, HRA/HSA , stipends and other benefits • Source 953, District Contribution—Pension • Added reference to an actuarial study • Source 955, District Contribution—HRA • Clarified that this is used for current active employee benefits and for pay as you go retiree benefits; removed reference to HSA

  12. Fund 73 OPEB Trust - What might your auditor look for? • New Studies • If a new study is due, GASB requires your auditor to have it by the completion of the audit. This is for all districts, not just those with Fund 73 OPEB Trust. • Did you send DPI a copy of the new study (only if you have a Fund 73 Trust)?

  13. Fund 73 OPEB Trust - What might your auditor look for? • PHYSICAL CASH TRANSACTIONS • The Contribution and Implicit Rate Subsidy payback must have cash movement. • Did the Contribution physically leave the trust by July 30? • NO BOOK ENTRIES, NO NETTING TRANSACTIONS

  14. Fund 73 OPEB Trust - What might your auditor look for? • Budget for Trust Activity • Contribution and Implicit Rate Subsidy payback should be in the districts budget. • Was the budget amended if there was a change in plans?

  15. Fund 73 OPEB Trust - What might your auditor look for? • Payment of Retiree Benefits • Once a district elects to establish and fund an OPEB trust, the retiree benefits that were funded must be paid out of the trust. • Exception may be termination benefits such as accumulated sick leave. Implicit Rate Subsidy for those benefits still applies if you use trust. • Check to see, if you have it, are you using it?

  16. Fund 73 OPEB Trust - What might your auditor look for? • Were the Contributions and Implicit Rate Subsidy appropriately allocated? • Contributions up to the ARC must be allocated to active employee plan members • By FTE or Salary • Implicit Rate Subsidy is a credit to the active employee plan members healthcare costs, Object 241. • Allocated in the same manner as the Contribution

  17. Fund 73 OPEB Trust - What might your auditor look for? • Contributions exceeding the ARC • Amount in excess of the ARC is coded to Function 292000, Object 218. • If a district exceeded the ARC, that amount should not be allocated to employee functions and should be in 292000-218.

  18. Fund 73 OPEB Trust - What might your auditor look for? • Implicit Rate Subsidy • If a district has retirees on their health insurance plan, there will be an Implicit Rate Subsidy. • Exception: Some self funded plans may not have implicit rate subsidy payback if actual costs method is used. • The Implicit Rate Subsidy needs to be paid from the Trust to the district. • Object 994 for implicit rate subsidy payment from trust (or 991) • Districts will credit active employee plan member health care costs, Object 241. • Did the cash move from the trust to the district?

  19. Fund 73 OPEB Trust - What might your auditor look for? • Plan Member Contributions • If the retirees pay a portion of their healthcare costs, these should be deposited directly into the Fund 73 trust. • If that is not an option, district should record them in a Due to Fund 73 liability account. • They should never be revenue or expenditures in the district funds.

  20. Fund 73 OPEB Trust - What does DPI look for? • New Study due? • Study date, number of employees and current ARC amounts are tracked. • The ARC is needed to run edits.

  21. Fund 73 OPEB Trust - What does DPI look for? • If there was a beginning balance, were there trust fund disbursements? • Are you using the Trust? • If you have a Fund Balance in 73B-936900-001, then the sum of Fund 73 objects 991 + 992 + 993 must be greater than zero.

  22. Fund 73 OPEB Trust - What does DPI look for? • Did the Contribution exceed the ARC? • Contribution is the sum of Object 218. • If so, is there at least the amount of the different between the ARC and the Contribution in 292000-218?

  23. Fund 73 OPEB Trust - What does DPI look for? • Does the contribution to the trust equal the amount of revenue received into the trust? • The amount in the district funds in Object 218 must equal the sum of Fund 73, Sources 951 + 953.

  24. Fund 73 OPEB Trust - What does DPI look for? • Is there an amount coded to Fund 27, Object 218, Project 011? • If yes, does the Contribution meet special education categorical aid eligibility? • Contributing at least the ARC amount. • Contributing at least 5% more than current year costs. • Contributing at least 5% more than costs using a 3 year average. • First year of the trust.

  25. Fund 73 OPEB Trust - What does DPI look for? • If retirees were on the district’s health insurance, was the implicit rate subsidy paid from the trust to the district? • Is there an amount in the new Object 994 account? • If not, the manual review will include a question to all districts with an OPEB trust who did not use Object 994 to verify the implicit rate subsidy was completed.

  26. Referenda Reminders • Within 10 days of the board adopting a resolution, the district must notify DPI. • Entry on the School Finance Reporting portal • Instructions on SFS website • Copy of initial board resolution sent to michele.tessner@dpi.wi.gov • http://sfs.dpi.wi.gov/sfs_referendum

  27. Referenda Reminders • After elections • Submit preliminary results to DPI • E-mail to michele.tessner@dpi.wi.gov OR • Update portal the morning following election • Results are compiled the morning following the election and forwarded to the State Superintendent. • Submit Board of Canvassers within 10 days following election.

  28. DPI SCHOOL FINANCE TEAM Please contact one of us if you have any questions: • Jerry Landmark, Director 608-266-6968 • Debbie Brown, Asst Director 608-267-9209 • Brad Adams, Consultant 608-267-3752 • Bruce Anderson, Consultant 608-267-9707 • Erin Fath, Consultant 608-266-3464 • Gene Fornecker, Auditor 608-267-7882 • Brian Kahl, Auditor 608-266-3862 • Michele Tessner, Auditor 608-267-9218 • Dan Bush, Consultant (Special Ed.) 608-267-9212

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