Spring at a Glance and the Budget Amendment Process WASBO Accounting Conference

1. Spring at a Glance and the Budget Amendment ProcessWASBO Accounting Conference Carey Bradley – Assistant Director School Financial Services Team March 20, 2019

2. Goals • Introduce School Financial Services(SFS) team • Review the fiscal year cycle(s) • Review DPI and local reporting requirements (amendments) • Review local budget planning

3. Spring Goals • Answer the basic questions that we receive this time of year • Show how data elements translate into state aid payments & the revenue limit • Show relationships across fiscal years, connections between various pieces of data • Identify what you need to know now • Review Budget Amendments

4. School Financial Services (SFS) Team • Team members and roles • Financial data collection • Pay General and Categorical aids • Administer Revenue limits • SEA Federal Reporting

5. The School Financial Services Team Division for Finance and Management • Bob Soldner, Director Assistant Superintendent School Financial Services VACANT, Director Education Administrative Director School Financial Services Carey Bradley, Assistant Director Education Administrative Director Bruce Anderson School Administration Consultant Roger Kordus School Administration Consultant Bill Evans IS Business Automation Specialist Terry Casper Accountant Advanced Scott Huelsman IS Business Automation Specialist Jillian Raff School Finance Auditor Roselynn Bittorf School Administration Consultant Derek Sliter School Administration Consultant Sumana Sengupta Accountant Senior Paul Spirek IS Business Automation Specialist Dan Bush School Administration Consultant

6. School Financial Services Team Resources • Conferences and Workshops • https://dpi.wi.gov/sfs/outreach/overview • SFS Bulletins via the Listserv - sign up today • https://dpi.wi.gov/sfs/communications/listserves/overview • Web site information, including tutorials • https://dpi.wi.gov/sfs - bookmark • Team Contacts • https://dpi.wi.gov/sfs/communications/staff-directory

7. Department of Public Instruction (DPI) Topic Directory available online • https://apps4.dpi.wi.gov/StaffDirectory/Public/Topic/SearchTopic • Topic or Staff Search • Print Directory Option Available

8. Where we are now … PI-1504/SE/SLR: 2018-19 Budget Reports 2018-19 Revenue Limit Calculation Review Membership Audits and Changes

9. Where we are now … WHAT NEXT ? • Membership Audits Due May 3 • Monitor and Amend Current Year Budget • Final 2018-2019 Revenue Limit Calculation • June and July aid withholding

10. Fiscal Year at a Glance – 2018-19 data

11. Fiscal Year at a Glance

12. Master Multi-Tasker

13. SPRING Activities Current Fiscal Year(2018-19)

14. PI 1505 Debt Schedule Report • Report used to collect the district’s long-term debt repayment schedules for all district indebtedness • Data used to project future equalization aid payments from a state-wide perspective • Debt schedule report should be updated anytime new debt has been issued or existing debt has been amended

15. Debt Schedule Reporting Submit any changes to debt schedule within 10 days of the change • New debt issues Changes to existing debt schedules Update to keep current Contact Jillian.Raff@dpi.wi.gov

16. Referenda Report PI-1572 • Districts must notify DPI of upcoming referendum within 10 days of adopting the resolution • After the referendum vote, the district should update the vote to show the vote tally

17. Report Referendum Results The morning after the election report the preliminary results to DPI • Update the vote in the SAFR referendum portal or • Email roger.kordus@dpi.wi.gov Send Board of Canvassers Report (PDF attachment) SFS Team Contact is Roger Kordus roger.kordus@dpi.wi.gov Referendum procedures & reporting information: http://dpi.wi.gov/sfs/reporting/safr/referendum/overview

18. Pupil Count Updates Count changes may be related to review of OE status or a result of your Membership Audit PI-1563 Pupil Count Reports will remain open until audit is received by district (by May 3)– changes must be made by the district with auditor’s agreement PI-1563 Pupil Count Report must be opened to make changes. Contact the SFS Team to open report: bruce.andereson@dpi.wi.gov

19. Pupil Count Membership Audits due to DPI May 1st Changes to the September 2018 pupil count report impact the final 2018-19 Revenue Limit calculation

20. Membership Changes The September & January Pupil Count Reports are closed shortly after the due date. DPI will open the pupil count report for districts selected for a membership audit. Changes must be approved by the auditor. Reports will be closed when audits are reviewed in May. Request to DPI to open the report after this date should include confirmation from your auditor. Districts not selected for a membership audit should email Bruce Anderson requesting the pupil count report be opened. Include a description of the change and provide explanation.

21. Open Enrollment Verify Students participating in Open Enrollment • Confirm student status of pupils- both In and Out Update PI-1563 September and January Pupil Counts for any membership changes Complete changes in OPAL before May 1st Aid adjustments for June are then calculated by the School Management Services Team Update (amend) your Budget if needed

22. Open Enrollment Contact SMS for corrections until June 21st Update PI-1563 September and January Pupil Counts for any membership changes Aid adjustments for July are then calculated by the School Management Services Team Update (amend) your Budget if needed

23. State Aid Payment Adjustments Aid withheld for Open Enrollment adjustment in June/July Aid withheld for Private Vouchers adjustment in June/July Worksheet posted showing aid withheld in anticipation of June deductions Revised worksheet for 2019 includes aid eligibility, withheld and paid. https://dpi.wi.gov/sfs/finances/aids-register/aid-payment-adj-exp

24. 24 PI1504: 2018-19 Budget Report Report used to collect the district’s proposed revenue and expenses for all funds for the current fiscal year Data is used to calculate the district’s following year July 1 General School Aids estimate for 2019-20 (§121.15(4)(b)) and MOE for IDEA The budget report should be amended as changes are made throughout the year to ensure the factors used for the July 1 estimate are as accurate as possible (shared cost)

25. PI1504-SE: Special Education Budget for 2018-19 Report used to collect the district’s proposed special education (Fund 27) expenditures and revenues. Data is used by the Special Education and Federal Grants Teams in determination of Maintenance of Effort (MOE) for the IDEA Grant. If your district revises its budget due to MOE requirements, be sure to update the Special Education Budget Report.

26. Budget Report School Level Reporting • Report used to collect costs by school • Identifies costs funded with federal or state/local dollars • Uses enrollment to calculate a cost per pupil

27. Bank Reconciliations Someone in your office needs to reconcile the bank statement to the district ledger EVERY MONTH You cannot balance your reports if you don’t account for your CASH Segregation of duties would suggest that the person making deposits should not reconcile the account If necessary, the district may/should hire an accounting service to reconcile

28. Annual Financial Audit Select firm to complete your audit Determine if your employee benefits require and actuarial study or table update and select a vendor Determine if there are any other needs to complete your financial statements Have a plan and schedule the work if possible to meet report deadlines

29. Early DPI Reports Achievement Gap Reduction (AGR) / SAGE Classroom Expansion – due May 17th Transfer of Service (PI-5000) will open by May 1st Pupil Transportation Census Calendar Group and Foster home Membership

30. Budget Adoption and Amendment

31. Adopted Budget The school board shall adopt a budget at a school board meeting after the public hearing and no later than the meeting in which the tax levy is set. This is sometimes referred to as the “original” budget.

32. Budget Adoption Format Minimum detail to the second digit.......

33. Adopted Budget The annual “original” budget provides the best estimates at the time of adoption. The adopted budget is amended as needed throughout the year and resources and needs change

34. Changes to the Current Budget As the year progresses, there may be a need to change appropriations ($amount) and purposes (function) Because such changes range from minor changes to significant ones, a question does arise concerning when the two-thirds vote and publication* are required *Class 1 notice within 15 days after the change is made

35. Changes to the Current Budget Pursuant to input from the Wisconsin Association of School Boards, school district officials and legal counsel, DPI recommends that the two-thirds vote, per Wis Stat § 65.90(5)(a), along with the required publication notices, be required if the amount of appropriation and the purposes as presented in the line items of the adopted budget are changed When the Vote and Publication are Required

36. Changes to the Current Budget Changes in subordinate line items from which the adopted budget evolved (but which are not detailed in the adopted budget) do not require the two-thirds vote and publication School District Treasurers must also comply with Wis Stat § 120.16(2) to assure disbursements from the school district treasury are made within the law When the Vote and Publication are Required

37. Budget Hearing, Adoption and Amendment An excel file is available to assist with the recommended format for budget presentation and publication http://dpi.wi.gov/sfs/finances/budgeting/budget-hearing-adoption

38. Budget Hearing, Adoption and Amendment School boards are required to approve a “proposed” budget for presentation at the budget hearing School boards are required to adopt a budget and set a levy School boards are required to amend the adopted budget for changes in resources and needs as they arise throughout the year Update the PI1504 when budget changes are made

39. SPRING Activities Next Fiscal Year(2019-20)

40. Biennial Budget Cycle State budget is for a two-year period From agency requests to a signed budget bill: 9 to 12 months (or longer) Advocates, Interest Groups, & Public Current requests: July 1, 2019 through June 30, 2021

41. Budget Look Ahead to 2019-20 Budget With the Board of Education develop budget goals and priorities to guide the upcoming budget cycle Develop a timeline for Budget development including roles and responsibilities

42. Look Ahead to 2019-20 Budget • With Board of Education Review Fee Policy (including Fee Waiver) • Review fees for eligibility • Fee Revenue estimates – update

43. Look Ahead to 2019-20 Budget Start work on Revenue Limit projection for 2019-20 fiscal year http://dpi.wi.gov/sfs/limits/worksheets/revenue Remember that the pre-populated worksheet only reflects the information we have on file Estimate the (missing) information not yet available Review and confirm the populated figures for accuracy Recognize how current year membership changes impact your calculation

44. Look Ahead to 2019-20 Budget Estimate revenues outside the Revenue Limit • Categorical Aids, federal grants, etc. • Identify potential for new revenue sources (e.g., grants) • Incoming Open Enrollment

45. Look Ahead to 2019-20 Budget Review Current Year Budget and Actuals Review Trends Review enrollment projections and staffing needs for the upcoming year Develop preliminary expenditures

46. Look Ahead to 2019-20 Budget Identify budgets for Debt Service (Funds 38 & 39) Consider impacts of Private School Vouchers and Open Enrollment out

47. Spending Authority Prior to Budget Adoption §120.13(33) provides spending authority to the school board to meet immediate expenses of operating and maintaining the public instruction in the district during the period between July 1st and the final adoption of a budget by the school board after the budget hearing

48. Overview: Budget Adoption and Tax Levy https://dpi.wi.gov/sfs/finances/budgeting/budget-hearing-adopt-req Step #1- Create a proposed budget that identifies expected revenues, expenditures and fund balances for the upcoming/current year . Step #2- A class 1 notice is published. Step #3- The public hearing is held, at which time residents of the district have an opportunity to comment on the proposed budget. Step #4- The electors at the annual meeting vote a tax. Step #5- Adopt a budget at a school board meeting and set the tax levy.

49. Ongoing Activities – Winter into Spring Continue developing your budget for the upcoming school year (2019-20) as more information becomes available Continue to review the current year budget accuracy as more information becomes available IMPORTANT-- continue to update the 2018-19 budget report in the SFS reporting portal with any changes the Board approves

50. Points to Remember • Statutory requirements, reports, and deadlines • The SFS website and Team are a resource • Board approves appropriations and purposes of the budget • More unknowns for budget planning in the second year of the State Biennium • Revenue Limits will determine the majority of your resources and pre pops are available