2009-2010 YEAR END CLOSING FOR DISTRICTS

1. 2009-2010 YEAR END CLOSING FOR DISTRICTS Marin County Office of Education June 24, 2010

2. Table of Contents • Page 3 CAT Form Overview • Pages 4-9 CAT Form directions for Categorical Programs subject to Deferred Revenue • Pages 10-14 CAT Form directions for Categorical Programs subject to Restricted Ending Balances • Pages 15-21 PCR-PCRAF Form directions • Pages 22-23 SEMA-SEMB Overview • Pages 24-28 SEMA directions • Pages 29-30 SEMB directions • Page 31 QEIA Backfill • Page 32 Tier III Flexible Categorical Programs • Page 33 $253 per ADA reduction • Page 34 Deferrals –and K-3 CSR • Page 35 Miscellaneous – Key Deadlines

3. CAT Form Directions • PLEASE BE AWARE THAT THESE DIRECTIONS COME FROM THE SACS SOFTWARE FOR 2008-09. 2009-10 IS NOT YET AVAILABLE FOR DISTRIBUTION • Form CAT—Categorical Programs—Federal/State/Local Grant Awards, Revenues, and Expenditures • Form CAT is an optional form designed to assist in the determination of the correct amount of unused grant award (carryover), accounts payable, accounts receivable, deferred revenue, and/or restricted ending balance at the end of the fiscal year for all federal, state, and local categorical programs for which the district[COE] is responsible, regardless of the funding source. • Specific revenue recognition policies are used in financial accounting for categorical funds. Applying the appropriate policy is extremely important. To account for a categorical program correctly, the determination must be made as to whether the program is subject to deferred revenue or subject to restricted ending balance. Refer to the definitions in the sections below for "Categorical Programs Subject to Deferred Revenues" (beginning on page 84) and "Categorical Programs Subject to Restricted Ending Balance" (beginning on page 89). • Information on whether a particular state or federal program administered by the CDE is accounted for as subject to deferred revenue (D) or subject to restricted ending balance (F) is available through the SACS Query, located on the CDE Web page: http://www.cde.ca.gov/fg/ac/ac • Select either the PCA Number Query or SACS Resource Code Query and enter the desired search criteria to access program information from the SACS Query database. • There are six worksheets available in Form CAT: • 1.   Federal categorical programs subject to deferred revenues • 2.   State categorical programs subject to deferred revenues • 3.   Local categorical programs subject to deferred revenues • 4.   Federal categorical programs subject to restricted ending balances • 5.   State categorical programs subject to restricted ending balances • 6.   Local categorical programs subject to restricted ending balances • Form CAT worksheets are completed using data entry; there are no extractions. Click on the tab at the bottom of the screen to access a worksheet (the horizontal scroll bar may need to be used for the applicable worksheet tab to appear). • If zeros are used at the beginning or end of any of the codes entered into the column headings, the software will "drop" them. In order to prevent the zeros from being dropped, type a single quote mark (') before the number.

4. CAT Form Directions-Categorical Programs Subject to Deferred Revenues • Categorical Programs Subject to Deferred Revenues • Categorical programs are classified as subject to deferred revenues if their revenue is earned at the time qualifying expenditures are made. In general, an expenditure is the prime factor for determining grant eligibility and revenue is recognized when the qualifying expenditure is made. Revenue received but not expended by the end of the fiscal year must be reported as deferred revenue. • The following rules apply to accounting for these programs: 1.   The revenue is initially recognized when cash is received. 2.   At the end of the year, if the total revenues received exceed the total donor‑authorized expenditures, the difference is recorded as deferred revenue. Deferred revenue is revenue that has been received but has not been earned. The total expenditures used in this calculation may not exceed the program award. 3.   At the end of the year, if the total revenues received are less than the total donor‑authorized expenditures, the difference is recorded as an accounts receivable. The total expenditures used in this calculation may not exceed the program award. 4.   Unused program award revenue (carryover) is the difference between the total program award and the total donor-authorized expenditures for the year. The amount of any unused program award revenue (carryover) is not recorded in the books but is added to the amount of the program award for the subsequent year to determine the total revenue available. The unused program award revenue should not be recorded as an accounts receivable because it is not earned. • Column           Provide for each program the official name of the program, the five-digit • Headings       number from the Catalogue of Federal Domestic Assistance (federal programs only), the resource code used to record the program, the revenue object, and the local description of the program, if any.

5. CAT Form Directions – Categorical Programs Subject to Deferred Revenues • AWARD •  Lines 1/1a     Prior Year Carryover Report the amount of the prior year's unused award, which may be expended in the current year. Include any adjustments made to the prior year's award. This amount includes any deferred revenue from the prior year.  • Line 1b           Restricted Balance Transfers (Object 8997) •  State/Local  Report the amount of restricted balances as of June 30, 2008 transferred using Object 8997 from restricted resources to the unrestricted General Fund pursuant to flexibility provided in Section 42 of SBX3 4, Chapter 12, Statutes of 2009. • Line 1c           Adjusted Prior Year Carryover State/Local   The sum of Prior Year Carryover (Line 1a) plus the Restricted Balance Transfers (Line 1b).\ •  Line 2a          Current Year Award Report the amount of the current year's award. This amount should agree with the award letter or document from the grantor agency. •  Line 2b          Transferability (NCLB) (Object 8990) (FOR FEDERALLY FUNDED   Federal         PROGRAMS SUBJECT TO DEFERRED REVENUES ONLY) Report transfers of federal funds made using Object 8990, Contributions from Restricted Revenues, pursuant to Section 6123(b) of subpart 2 of Part A of Title VI of ESEA, as amended by NCLB.

6. CAT Form Directions – Categorical Programs Subject to Deferred Revenues •  Line 2b          Block Grant Transfers (Object 8995) (FOR STATE FUNDED   State             PROGRAMS ONLY)                    Report transfers made using Object 8995, Categorical Education Block Grant Transfers, pursuant to the transferability provisions provided by Section 7 of AB 825, Chapter 871, Statutes of 2004. •  Line 2c          Categorical Flexibility Transfers (Object 8998) (FOR STATE   State             FUNDED PROGRAMS ONLY) (Applicable to 08-09 only) Report transfers made using Object 8998, Categorical Flexibility Transfers, pursuant to Section 15 of SBX3 4, Chapter 12, Statutes of 2009. • Lines               Other Adjustments 2b Local        Report any other adjustments made to the grant award. 2c Federal    2d State         • Lines               Adjusted Current Year Award 2c Local       For Local Programs, the sum of the Current Year Award (Line 2a)  2d Federal    plus the Other Adjustments (Line 2b). For Federal programs, the sum 2e State        of the Current Year Award (Line 2a) plus the NCLB Transferability                         (Line 2b) plus the Other Adjustments (Line 2c). For State programs,                         the sum of the Current Year Award (Line 2a) plus the Block Grant                         Transfers (Line 2b) plus the Categorical Flexibility Transfers (Line 2c) plus Other Adjustments (Line 2d).

7. CAT Form Directions – Categorical Programs Subject to Deferred Revenues •  Line 3            Required Matching Funds/Other Report the amount of any required matching funds as indicated in the award letter or document. If there is no required match, enter zero. Exclude "in-kind" matching. Report other income generated by certain categorical programs such as interest earned from Instructional Materials funds (EC Section 60242.5). Exclude contributions made using Object 8980, Contributions from Unrestricted Revenues. •  Line 4            Total Available Award Federal         The sum of the Prior Year Carryover (Line 1) plus the Adjusted Current Year Award (Line 2d) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. • Line 4             Total Available Award State/Local  The sum of the Adjusted Prior Year Carryover (Line 1c) plus the Adjusted Current Year Award (Line 2e/2c) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. • REVENUES •  Line 5            Revenue Deferred from Prior Year                         Report the amount of deferred revenue recorded in the prior year. •  Line 6            Cash Received in Current Year Report the amount of cash received during the current year. Include transfers made using objects 8990, 8995, 8997, and 8998; exclude transfers made using object 8980. Include the amount of any cash received from the prior year's award that was not recorded as an account receivable in the prior year. If adjustments were made to the current year's revenue accounts as a result of prior year's accounts receivable and accounts payable, report these amounts also.

8. CAT Forms Directions – Categorical Programs Subject to Deferred Revenues •  Line 7     Contributed Matching Funds Report the amount of matching funds contributed by the district[COE]. Exclude "in‑kind" matching. •  Line 8     Total Available The sum of the Revenue Deferred from Prior Year (Line 5) plus the Cash Received in Current Year (Line 6) plus the Contributed Matching Funds (Line 7). • EXPENDITURES •  Line 9      Donor-Authorized Expenditures Report the sum of the direct, direct support, and indirect costs as approved by the grantor agency; include expenditures of required matching funds. The Donor-Authorized Expenditures may not exceed the Total Available Award (Line 4). •  Line 10   Non Donor-Authorized Expenditures Report any expenditures not authorized by the grantor agency, e.g., expenditures in excess of the available award amount (encroachment). Districts[COEs] should record a contribution to restricted programs using Object 8980, Contributions from Unrestricted Revenues, equal to their non donor-authorized expenditures. •  Line 11 Total Expenditures The sum of the Donor-Authorized Expenditures (Line 9) plus the Non Donor-Authorized Expenditures (Line 10). •  Line 12  Amounts Included on Line 6 Above for Prior Year Adjustments Report the amount of the adjustments made to the current year's revenue accounts as a result of prior year's accounts receivable and accounts payable on this line. These adjustments should be reported as the opposite of the adjustments made on Line 6. For example, if a negative adjustment of $200 was reported on Line 6 for an adjustment for prior year's accounts receivable, this line should show a positive adjustment of $200.

9. CAT Forms Directions – Categorical Programs Subject to Deferred Revenues • Line 13           Calculation of Deferred Revenue or Accounts Payable, and Accounts Receivable Amounts The sum of Line 8 minus Line 9 plus Line 12. Report this amount on Line 13a, 13b, or 13c, as applicable. • Line 13a        If the computed amount on Line 13 is positive and the program allows for unused funds to be retained and used in the next year, report the amount on Line 13a, Deferred Revenue. The deferred revenue is the amount of categorical funds, which have been received as of June 30, but have not been spent and, therefore, have not been earned. • Line 13b        If the computed amount on Line 13 is positive and the program does not allow unused funds to be retained and used in the next year, report the amount on Line 13b, Accounts Payable. This amount is owed back to the grantor agency. • Line 13c        If the computed amount on Line 13 is negative, report the amount on Line 13c, Accounts Receivable. This is the amount of revenue earned but not received from the grantor agency. • Line 14           Unused Grant Award Calculation The sum of the Total Available Award (Line 4) minus Donor-Authorized Expenditures (Line 9). This represents the amount of the current year's award which has not been spent. Report this amount on Line 14 if carryover is allowed. • Line 15           If Carryover Is Allowed, Enter Line 14 Amount Here If carryover is allowed, enter the amount from Line 14; add this amount to the award for the next year to determine the total available award. If the award does not allow the unused funds to be carried over to the next year, enter zero. Districts should use this information in preparing the next year's budget. • Line 16           Reconciliation of Revenue The sum of Line 5 plus Line 6, minus lines 13a and 13b, plus Line 13c. This line should agree with the revenue reported on the financial statements for this program. Revenue includes program revenue, transfers (objects 8990, 8995, 8997, and 8998), and interest earnings.

10. CAT Form DirectionsCategorical Programs Subject to Restricted Ending Balances • Categorical Programs Subject to Restricted Ending Balances • Categorical programs are classified as Subject to Restricted Ending Balances if their revenue is earned at the time the funds are apportioned to the LEA. These categorical programs are generally entitlements based on an allocation formula. These programs are restricted, but more in form than in substance. Only a failure on the part of the LEA to comply with regulations will cause a forfeiture of the funds. Any program funds not expended before the end of the year must be reported as Restricted Ending Balance. • The following rules apply to accounting for these programs: 1.      The revenue is recognized when cash is received. 2.      The amount of any revenue that has not been received by June 30, but is expected to be received by September 30, should be accrued as an accounts receivable. 3.      At the end of the year, any program funds that have not been expended are recorded as restricted ending balance. This is done because restrictions remain on the type of expenditures that can be made from the revenues; therefore, the balance for this program must be separated from the other balances available for general use. • Column           Provide for each program the official name of the program, the five-digit • Headings       number from the Catalogue of Federal Domestic Assistance (federal programs only), the resource code used to record the program, the revenue object, and the local description of the program, if any.

11. CAT Form DirectionsCategorical Programs Subject to Restricted Ending Balances • AWARD • Lines 1/1a      Prior Year Restricted Ending Balance                         Report the restricted ending balance for this award as reported last year. Include any adjustments that were made to the prior year's award. • Line 1b           Restricted Balance Transfers (Object 8997) State/Local   Report the amount of restricted balances as of June 30, 2008 transferred using Object 8997 from restricted resources to the unrestricted General Fund pursuant to flexibility provided in Section 42 of SBX3 4, Chapter 12, Statutes of 2009. • Line 1c           Adjusted Prior Year Restricted Ending Balance State/Local   The sum of the Prior Year Restricted Ending Balance as reported last year (Line 1a), including any adjustments that were made to the prior year's award, plus the Restricted Balance Transfers (Line 1b). •  Line 2a          Current Year Award                         Report the amount of the current year's award. This amount should agree with the award letter or document from the grantor agency. • Line 2b           Block Grant Transfers (Object 8995) (FOR STATE FUNDED  State              PROGRAMS ONLY)                         Report transfers made using Object 8995, Categorical Education Block Grant Transfers, pursuant to the transferability provisions provided by Section 7 of AB 825, Chapter 871, Statutes of 2004.

12. CAT Form DirectionsCategorical Programs Subject to Restricted Ending Balances • Line 2c           Categorical Flexibility Transfers (Object 8998) (FOR STATE  State              FUNDED PROGRAMS ONLY) (Applicable to 08-09 only) Report transfers made using Object 8998, Categorical Flexibility Transfers, pursuant to Section 15 of SBX3 4, Chapter 12, Statutes of 2009. • Lines               Other Adjustments  2b Federal/   Report any other adjustments made to the award. Local  2d State        Lines               Adjusted Current Year Award  2c Federal/   For Federal and Local programs, the sum of the Current Year  Local              Award (Line 2a) plus the Other Adjustments (Line 2b). For  2e State        State programs, the sum of the Current Year Award (Line 2a) plus the Block Grant Transfers (Line 2b) plus the Categorical Flexibility Transfers (Line 2c) plus the Other Adjustments (Line 2d). • Line 3             Required Matching Funds/Other Report the amount of any required matching funds as indicated in the award letter or document. If there is no required match, enter zero. Exclude "in-kind" matching. Report other income generated by certain categorical programs such as interest earned from Instructional Materials funds (EC Section 60242.5). • Line 4             Total Available Award Federal         The sum of the Prior Year Restricted Ending Balance (Line 1) plus the Adjusted Current Year Award (Line 2c) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year.

13. CAT Form DirectionsCategorical Programs Subject to Restricted Ending Balances • Line 4             Total Available Award State/Local   The sum of the Adjusted Prior Year Restricted Ending Balance (Line 1c) plus the Adjusted Current Year Award (Line 2e/2c) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. • REVENUES • Line 5             Cash Received in Current Year Report the amount of the current year's award received. Include transfers made using objects 8995, 8997, and 8998. Include in this amount any adjustments to the current year's revenue account as a result of the prior year's accounts receivable. • Line 6             Amounts Included on Line 5 for Prior Year Adjustments Report the amount of the adjustments made to the current year's revenue accounts as a result of the prior year's accounts receivable on this line. These adjustments should be reported as the opposite of the adjustments made on Line 5. For example, if a negative adjustment of $200 was reported on Line 5 for an adjustment for prior year's accounts receivable, this line should show a positive adjustment of $200. • Line 7a           Accounts Receivable The sum of Line 2c (federal and local worksheets) or 2e (state worksheet), minus Line 5 minus Line 6. This is the amount of the award for the current year that has not been received from the donor agency. • Line 7b           Noncurrent Accounts Receivable Report the portion of Line 7a that is Noncurrent Accounts Receivable and is not expected to be received by September 30. Do not make an entry to your books for the Noncurrent Accounts Receivable. • Line 7c           Current Accounts Receivable The sum of Line 7a minus 7b. This represents the Current Accounts Receivable portion of the award for the current year that is expected to be received by September 30. An entry should be made to your books for the Current Accounts Receivable.

14. CAT Form DirectionsCategorical Programs Subject to Restricted Ending Balances • Line 8             Contributed Matching Funds Report the amount of matching funds contributed by the district[COE]. Exclude "in‑kind" matching. • Line 9             Total Available The sum of the Cash Received in Current Year (Line 5) plus the Current Accounts Receivable (Line 7c) plus the Contributed Matching Funds (Line 8). This line should agree with the total revenue reported for this categorical program on the financial statements. • EXPENDITURES • Line 10           Donor-Authorized Expenditures Report the sum of the direct, direct support, and indirect costs as approved by the grantor agency; include expenditures of required matching funds. The Donor-Authorized Expenditures may not exceed the Total Available Award (Line 4). • Line 11           Non Donor-Authorized Expenditures Report any expenditure not authorized by the grantor agency, e.g., expenditures in excess of the available award amount (encroachment). Districts[COEs] should record a contribution to restricted programs using Object 8980, Contributions from Unrestricted Revenues, equal to their non donor-authorized expenditures. • Line 12           Total Expenditures The sum of the Donor-Authorized Expenditures (Line 10) plus the Non Donor-Authorized Expenditures (Line 11). • Line 13           Restricted Ending Balance—Current Year The sum of the Total Available Award (Line 4) minus the Donor-Authorized Expenditures (Line 10). This represents the amount of the award that has not been spent, and in most cases will agree with the ending balance reported on the financial statements for this program. If Noncurrent Accounts Receivable (Line 7b) exists, subtract that amount from the restricted ending balance calculated on this line to arrive at the ending balance reported on the financial statements. Note that prior year adjustments may necessitate an additional contribution to the restricted programs or a reverse contribution to the unrestricted programs.

15. PCR - PCRAF Forms(PCRAF) • PLEASE BE AWARE THAT THESE DIRECTIONS COME FROM THE SACS SOFTWARE FOR 2008-09. 2009-10 IS NOT YET AVAILABLE FOR DISTRIBUTION • The PCR form is dependent on the PCRAF form. PCRAF must be completed first. • Form PCRAF—Program Cost Report Schedule of Allocation Factors • The Program Cost Report Schedule of Allocation Factors, Form PCRAF, is used to distribute – or allocate – among program goals those Fund 01 expenditures that, in addition to having a support function, have an "Undistributed" goal (0000 and 9000). • When opened, Form PCRAF automatically extracts into Line A any Undistributed general ledger expenditures that must be allocated to program goals. Allocation factors are only needed for columns with amounts on Line A. If there are costs on Line A for any of the columns, Form PCRAF must be completed and saved before Form PCR will be considered complete (i.e., undistributed costs in goals 0000 and 9000 must be allocated to specific goals before Form PCR will balance to total Fund 01 expenditures). • When completing Form PCRAF, enter allocation factors – FTE Teachers, CUs, or PTs – for all columns that have amounts on Line A. For information on how to calculate allocation factors, refer to Program Cost Accounting in CSAM. • Items of note in Form PCRAF include: • Complete counts of allocation factors are required unless specific guidelines are met. For each column with costs on Line A, complete counts of allocation factors (FTEs, CUs, or PTs) must be entered unless documentation exists to substantiate why the factors are being excluded. For example, if an LEA has 6 programs, allocation factors must be entered for all six programs unless documentation shows why the factor is being excluded. This is because, if support costs have not already been direct-charged to a goal and they are being distributed using the allocation method, the support costs should be split proportionately among all programs of the LEA.  Some LEAs direct-charge their instruction and instruction-related programs for nearly all of a particular support cost and the only portion left in goals 0000 and 9000 is that applicable to the central administrative offices. When this occurs, so that the remaining costs are allocated proportionately among all of the LEA's goals, enter complete allocation factor counts for the column that corresponds with the support cost. For example, an LEA direct-charges its programs for plant maintenance and operations and the only costs left in Function 8100, Plant Maintenance and Operations, with Goal 0000, are those applicable to the central administrative offices. For the Plant Maintenance and Operations column on Form PCRAF, the LEA would enter complete CU allocation factors for all of its programs so that the remaining Function 8100 costs are spread proportionately among its programs.

16. PCR - PCRAF Forms(PCRAF) • Once allocation factors (FTEs, CU, PTs) have been entered and Form PCRAF has been saved, opening and saving Form PCR prompts the software to create "Object PCRA" adjusting entries that allocate goals 0000 and 9000 costs to specific goals by crediting (reducing) goals 0000 and 9000 and debiting (increasing) the goals where allocation factors were entered. A summary of costs allocated to various goals can be seen in Form PCR, Schedule of Allocated Costs (AC). From California School Accounting Manual: • Allocating Support Costs Using Allocation Factors • The benefit provided to instructional programs by a support service function varies with the type of support provided. The benefit to programs from certain support services varies in relation to the number of instructional staff receiving the support. The benefit to programs from other support services varies in relation to the amount of space occupied by the instructional program or the number of students being served.   Three cost allocation factors provide the basis for allocating to programs the different types of support service costs: 1. Full-Time-Equivalent Teachers (FTEs) 2. Classroom Units (CUs) 3. Pupils Transported (PTs) Through a determination of the counts of each factor by program, Goal 0000 costs can be proportionately distributed to each goal. • Allocation Factors • Full-Time- Equivalent (FTE) Teachers • Definition: The full-time-equivalent (FTE) teacher allocation factor is the number of full-time-equivalent teachers serving (assigned) in each instructional program (goal). An assignment is a specific responsibility, classroom assignment, or course section taught. • Teachers or assistant teachers (certificated or classified) should be included in the FTE count if they carry active student registers and their services generate average daily attendance (ADA). Certificated and classified employees providing special education designated instruction services and carrying active student registers should also be included in the FTE count.

17. PCR-PCRAF Forms(PCRAF Continued) • Full-time equivalency is determined on the basis of the number of hours (i.e., of actual instruction of students) that constitutes a full-time teaching assignment for the agency. Taking the ratio of assignment hours to the number of hours that constitutes a full‑time assignment calculates the FTE. • The four common categories for assignments are: Single assignment: A full-time teacher assigned to a single goal is counted as 1.0 FTE for that goal. Split assignment: A full-time teacher assigned to two or more goals is split between the goals on the basis of the proportionate share of hours in each assignment. For purposes of determining the number of FTEs to be allocated to each assignment, preparation periods, supervision, noon duty, individualized educational program (IEP) assessments, and other ancillary assignments are to be disregarded in the FTE calculation. Study halls are considered a regular class assignment. Semester assignment: A full-time teacher assigned to programs of one semester or less is counted as a 0.5 FTE. Full-time teachers assigned to programs of more than one semester are counted as 1 FTE. Part-time assignment: Prorate, using the preceding basic definition. For example, a teacher instructing in a program on a one-fourth time basis would be counted as a .25 FTE. • Totaling the computed number of FTE teacher units determines the FTE teacher count for each instructional goal. If applicable, FTE teacher counts may also be calculated for the community services and child care and development services goals.   • Include in the count those teachers who are assigned to programs operated in the district but who are not employed by the district (e.g., those in special education or regional occupational center/program classes in which the teachers are paid by the county office). These FTE counts are to be recorded in the nonagency activities educational program. • For consistency, the FTE teacher count may be developed at any time after classes have been established for the second semester. In a large district an efficient way to compile the total FTE units may be to have each administrator complete a count and then to combine the information into a composite work sheet. Care must be taken to ensure that more than one site administrator does not report the same FTE units.  

18. PCR-PCRAF Forms(PCRAF Continued) • FTE Functions: FTE factors are used to allocate costs in instruction-related functions (2100, 2420, 2490, and 2700) and pupil services functions (3110, 3120, 3130, 3140, 3150, 3160, and 3900). • Classroom Units (CU) • Definition: The classroom unit (CU) allocation factor is the number of units of space occupied by each program. The CU provides a method of converting each program's square footage into a standardized allocation factor. Although the term "classroom unit" was derived from using an "average" classroom as the basis for the measurement, all types of space are included in the CU count, not just classrooms. • When calculating CUs, count space that is occupied by an identifiable function or activity. If multiple programs share an area, the CU is allocated to each program on the basis of the percentage of hours the room is used by each program. Report noninstructional programs occupying space in district administration facilities as part of the district administration program. • Common-use areas are considered to benefit all programs and are not included in the calculation of CUs. They include areas such as school offices, media centers, libraries, corridors, restrooms, faculty rooms, unoccupied rooms, and outdoor areas (swimming pools, ball fields). • Instruction and office areas. For "people-occupied" areas, such as instruction or office space, a room that falls with the general range of 800 to 1,100 square feet counts as one (1.0) CU. Areas that fall outside this range are converted to CUs by dividing the actual square footage by 960. For example, a room occupying 1,200 square feet is 1.25 CU (1,200 divided by 960). Examples of areas converted to CUs by using 960 might include large areas, such as science labs, computer labs, multipurpose rooms, and gymnasiums; small areas, such as cubicles for speech therapy; and agencywide administration facilities.

19. PCR-PCRAF Forms(PCRAF Continued) • Operational areas. Buildings such as maintenance shops, warehouses, and transportation facilities generally require approximately one-third the amount of maintenance and upkeep required for spaces used for students and other services. Convert these operational areas to CUs by dividing square footage by 2,880 (960 x 3). Partially enclosed spaces, such as sheds or patios, may be excluded from the calculation. • Food services. In the area of food services, only the kitchen and serving areas are counted as CUs. The eating area is considered common space and is omitted from the calculation unless other activities occur in this area. If a multipurpose room is used for part of the day for classes and part of the day as the eating area, the CUs for the portion of the day attributable to classes are assigned to the appropriate program, and the portion attributable to food services is omitted. • CU Functions: CU factors are used to allocate costs in the plant services functions (8100 and 8700). • Pupils Transported (PT) • Definition: The pupils transported (PT) allocation factor is the number of students transported in the year, which is determined by counting the number of students in each program transported from home to school. This factor represents the number of students, not the number of trips. • Special education pupils receiving home-to-school transportation may be counted in the special education program only if their IEPs require home-to-school transportation. Otherwise, these children will be counted as regular students. Pupils who receive home-to-school transportation to attend schools other than their neighborhood schools because of requirements of their IEPs should also be counted as special education PTs. • PT Function: PT factors are used only to allocate costs in Function 3600, Pupil Transportation.

20. PCR - PCRAF Forms(PCR) • Form PCR—Program Cost Report • The Program Cost Report, Form PCR, is based on the goal field and calculates, in a standardized manner, Fund 01 total costs by program (refer to Program Cost Accounting in CSAM). Form PCR is fully automated and does not allow for manual entry of data. Data pulled into the form are extracted from both the LEA's general ledger data and software-generated "Object PCRA" adjusting entries created from Form PCRAF data. • Form PCR displays data by goal and consists of the Program Cost Report and four supporting schedules: • The Program Cost Report summarizes direct (e.g., direct-charged and allocated) and central administration costs by goal. It also displays as "Other Costs" those expenditures with functions not already picked up in the specific goal lines. Schedule of Direct Charged Costs (DCC) details the costs of instruction, ancillary service, and community service functions, which must always be direct-charged to a goal, and also any support function costs that have been direct-charged to a goal. Schedule of Allocated Costs (AC) details Undistributed costs (goals 0000 and 9000) allocated to specific goals based on allocation factors (see Form PCRAF for allocation factors). Schedule of Central Administration Costs (CAC) calculates the ratio used to distribute central administration costs in Column 4 of Form PCR. This ratio is similar to, but not exactly the same as, an indirect cost rate (see Form ICR for the indirect cost rate). Schedule of Other Costs (OC) displays the costs direct-charged to functions 3700 (Food Services), 6000 (Enterprise), 8500 (Facilities Acquisition and Construction), and 9000–9999 (Other Outgo)

21. PCR - PCRAF Forms(PCR continued) • Five technical review checks relate to Form PCR data: • The first two checks look at goal by function combinations: one to verify that expenditures in the function ranges of 1000s, 4000s, and 5000s are associated with specific goals and one to verify that expenditures in functions 7200–7700 are associated with appropriate goals. • The next check verifies that allocation factors have been entered in Form PCRAF for support functions with costs in Undistributed goals 0000 and 9000. • Another check identifies goals that have been allocated costs but that contain no direct costs. • The last check is to determine whether the total costs in Form PCR agree with total Fund 01 general ledger expenditures. • If the expenditures in Form PCR do not balance to the general ledger data, completing the following checklist should bring them into balance: • Has Form PCRAF been completed and saved? You must provide allocation factors for all Form PCRAF columns that have costs on Line A. • Have all technical review checks with a Fatal exception been corrected? Fatal exceptions for invalid codes, goal by function combinations, or function by object combinations, must be corrected in order for Form PCR to balance.

22. SEMA-SEMB • PLEASE BE AWARE THAT THESE DIRECTIONS COME FROM THE SACS SOFTWARE FOR 2008-09. 2009-10 IS NOT YET AVAILABLE FOR DISTRIBUTION • Due Dates • The reports are due as follows: • Report SEMB • Due to SELPA AU:   September 15, 2010:  LEA worksheets from LEAs who are members of a SELPA • Due to CDE:              October 15, 2010:      SELPA worksheets, and LEA worksheets from single- agency SELPAs • Report SEMA • Due to SELPA AU:   November 15, 2010:    LEA worksheets from LEAs who are members of a SELPA • Due to CDE:              December 15, 2010:   SELPA worksheets, and LEA worksheets from single- agency SELPAs • NOTE:           While it is advisable to complete the SEMA and SEMB reports before submitting the SACS unaudited actual data to the CDE, they are not required reports for that submission and must be submitted separately, in hard copy, as noted below. • The SEMA and SEMB reports must be submitted to MCOE by the September and November dates, however if both forms are completed by the September deadline, please submit upon completion. *** Reminder! PCR and PCRAF forms must be completed prior to completing the SEMA and SEMB forms.

23. SEMA-SEMB • Initial Procedures Before Completing the SEMA and SEMB Reports • The following steps should be completed to select the correct SELPA before completing the reports: Select the LEA and the unaudited actuals reporting period in the Setup/Preferences menu. Select the SELPA for which the MOE report is being done: Open Form SEAS from the Forms/Supplementals menu, and enter the 2‑character code of the applicable SELPA from the displayed list. Click Save, and then Close the Form SEAS window. (See the Special Education Revenue Allocation Setup (SEAS) section on page147 for additional instructions in completing Form SEAS.) • NOTES: After completing Form SEAS, the name of the SELPA selected in that form will automatically display on the SELPA name line in the LEA Maintenance of Effort Calculation worksheet and in all of the SELPA worksheets. Also, the names of the LEAs that belong to the selected SELPA will automatically display in individual columns in the Expenditures by SELPA and Budget by SELPA worksheets. If Form SEAS is not filled out and saved, (??) will display for the SELPA name in the applicable worksheets. In addition, the Expenditures and Budget worksheets will not display columns for SELPA members; only the Adjustments and Total columns will display.

24. SEMA – SEMB (SEMA) • Completing Report SEMA • In the main menu, click Reports, then Special Education MOE, then SEMA Special Education MOE – Actual vs. Actual Comparison. This will open the workbook, with the first of the six worksheets showing. A tab for each of the worksheets displays at the bottom of the screen. To open a different worksheet, click on the corresponding tab. • The worksheets are completed as follows: • 2009-10 Expenditures by LEA (LE-CY) • Unduplicated Pupil Count: Enter the special education unduplicated pupil count as of December 1, 2009. A warning message will display when closing the report if the information is not entered. • Total Expenditures: All special education expenditures are extracted from the general ledger data for the funds, goals, and objects as indicated on the report. No manual entry is needed in this section other than for any adjustments to the extracted amounts. • Federal Expenditures: Special education expenditures paid from federal sources are extracted from the general ledger data for the funds, goals, and objects as indicated on the report. No manual entry is needed in this section other than for any adjustments. • The Object 8980 amount extracted represents total contributions from unrestricted revenues to federal resources for the special education program. Since the expenditures paid from these contributions are included in the "TOTAL (federal expenditures) BEFORE OBJECT 8980," an amount equivalent to the contributions is deducted from that total to arrive at the net expenditures paid from federal sources. The same Object 8980 amount is added to the STATE AND LOCAL EXPENDITURES, and to the LOCAL EXPENDITURES. • ARRA 08-09 EXPENDITURES: A new column has been added in order to automatically track and subtract expenditures for the Federal American Recovery and Reinvestment Act of 2009 (ARRA) programs which were forward-funded in 2008-09 (resources 3313, 3314, 3319, 3322, 3324, and 3404). Pursuant to Federal guidance, these expenditures will be included in the Maintenance of Effort calculation in 2009-10.

25. SEMA – SEMB (SEMA) • State and Local Expenditures: Special education expenditures paid from state and local sources are extracted from the general ledger data for the funds, goals, and objects as indicated on the report. No manual entry is needed in this section other than for any adjustments. • The total Contributions from Unrestricted Revenues, Object 8980, credited to federal resources, as shown in the FEDERAL EXPENDITURES section, is added here. • Local Expenditures: Special education expenditures paid from local sources only are extracted from the general ledger data for the funds, goals, and objects as indicated on the report. No manual entry is needed in this section other than for any adjustments. • Revenue Limit Transfers, Object 8091, and Revenue Limit Transfers–Prior Years, Object 8099, from unrestricted revenues to the special education program are included here. • Contributions from Unrestricted Revenues, Object 8980, credited to federal resources, as shown in the FEDERAL EXPENDITURES section, and Contributions from Unrestricted Revenues, Object 8980, credited to state resources are also included here. • Adjustments Column:  Enter any adjustments (deductions and additions are allowed) to the numbers automatically extracted, to arrive at the correct total expenditures for special education MOE calculation purposes. Fully explain on a separate page any amounts shown in the Adjustments column, and attach that to the reports submitted to the SELPA AU or the CDE. Maintain supporting documentation, which should be available upon request from the SELPA AU or the CDE. • NOTE:           When making adjustments, ensure that the total/net adjustments in the TOTAL EXPENDITURES section is equal to the sum of the adjustments in the FEDERAL EXPENDITURES and STATE AND LOCAL EXPENDITURES sections. If these amounts do not equal, an unbalanced message will display in red on the screen and on the printed report for both the LE-CY and LMC-A worksheets. Upon closing the report, a message box will identify the unbalanced item(s).

26. SEMA – SEMB(SEMA) • 2008-09 Expenditures by LEA (LE-PY) • This worksheet is manually filled out to calculate the 2008-09 (prior year's) special education expenditures to be used in the actual vs. actual test. If adjustments to prior year's special education expenditures were made in 2009-10 after the submission of the SACS 2008-09 unaudited actual data to the CDE, the 2008-09 special education expenditures to be used in this year's test may not be the same as the 2008-09 special education expenditures amount used in the prior year's actual vs. actual test (SEMA). Adjustments to that amount must be made to make the 2008-09 expenditures used in this year's actual vs. actual test comparable to those for the 2009-10 expenditures. • The sources for the numbers to be input in this report are: 1) the prior year's SEMA Report, 2008-09 Expenditures by LEA (LE-CY), and 2) SACS2010ALL unaudited actual general ledger data. • Section A, State and Local, and Section B, Local Only – 2008-09  Expenditures:  The descriptions below apply to both Section A and Section B, with the Section A column used for amounts affecting or pertaining to state and local expenditures, and the Section B column, for those affecting or pertaining to local expenditures only. • Line 1      Total Costs Enter the total costs shown in the 2008-09 Report SEMA, 2008-09 Expenditures by LEA (LE-CY) worksheet,submitted last year to the CDE or SELPA AU. Enter in Section A the amount in the Total Costs line, Total column, in the State and Local Expenditures section of that worksheet, and in Section B, the amount in the Local Expenditures section. • Line 2      Audit Adjustments Enter any audit adjustments to the 2008-09 special education expenditures made after the closing of the books for that fiscal year, not included on Line 1. The adjustment amount will be part of Object 9793, Audit Adjustments, in the SACS2010ALL unaudited actual general ledger data.

27. SEMA – SEMB(SEMA) • Line 3      Restatements Enter any restatements of the 2009-10 beginning fund balances made in 2009-10 that affected the 2008-09 special education expenditures, as reflected in Object 9795, Other Restatements, for the funds and resources as indicated on the report if that restatement is not included on Line 1. • Line 4     Other Adjustments Enter any other adjustments being made this year to the Line 1 amount. Describe the adjustments in the space provided on the worksheet. • Line 5     2008-09 Adjusted Expenditures These are automatically calculated and represent the total adjusted 2008-09 combined state and local expenditures (Section A column) and local expenditures (Section B column), which will be compared with the 2009- 10 expenditures. • Section C – Unduplicated Pupil Count: • Line 1      Enter the unduplicated pupil count reported in the 2008-09 Report SEMA, 2008-09 Expenditures by LEA (LE-CY) worksheet in last year's actual vs. actual MOE report. This would be the unduplicated pupil count for December 2008. • Line 2      Enter any adjustments in the December 2008 unduplicated pupil count made after the submission of the LE-CY worksheet last year, to reflect the correct count this year. • Line 3      This is automatically calculated and represents the total, adjusted unduplicated pupil count for 2008-09.

28. SEMA – SEMB(SEMA) • LEA Maintenance of Effort Calculation (LMC-A) • This worksheet is used to determine if the LEA maintained the level of fiscal effort required for 2009-10. • Test 1, Section A, columns A and B are automatically extracted from the other two LEA worksheets, except for lines 2, 5, and 7, which are calculated. Column C is calculated. • Test 1, Section B, and Tests 2 and 3 are completed, if necessary, similar to completing the same sections in the SELPA Maintenance of Effort Calculation (SMC-A) worksheet, except that the figures used in LMC-A are those that pertain to the LEA (as opposed to the entire SELPA). Please refer to SELPA Maintenance of Effort Calculation (SMC-A) worksheet below for a description of these sections and how they are completed. • At the bottom of the form, enter in the appropriate lines the name of the contact person for this report and that person's title, telephone number, and e-mail address. A warning message will display when closing the report if the information is not entered.

29. SEMA – SEMB(SEMB) • Completing Report SEMB • In the main menu, click Reports, then Special Education MOE, then SEMB, Special Education MOE – Budget vs. Actual Comparison. This will open the workbook, with the first of the six worksheets showing. A tab for each of the worksheets displays at the bottom of the screen. To open a different worksheet, click on the corresponding tab. • The worksheets are completed as follows: • 2010-11 Budget by LEA (LB-B) • The amounts in this worksheet are extracted from the 2010-11 budget amounts input/imported to the unaudited actuals reporting period in the software. The elements of the budgeted expenditures in this worksheet are similar to those in the 2009-10 Expenditures by LEA (LE-CY) worksheet for the SEMA report, described on page 243, except that they pertain to budgeted amounts rather than actual expenditures, and do not include Object PCRA, Program Cost Report Allocations. (There is no PCRA calculation for the budget data.) • Use the latest approved 2010-11 budget, rather than the original budget, so that the MOE test reflects the latest available information. Use the Adjustments column to make necessary adjustments to the extracted amounts. • In the Unduplicated Pupil Count, enter the best estimate of unduplicated pupil count for December 2010. Keep supporting documentation for how the estimate was determined; CDE may follow up if the figures are significantly different from the December 2009 pupil count. A warning message will display when closing the report if the information is not entered.

30. SEMA – SEMB(SEMB) • 2009-10 Expenditures by LEA (LE-B) • This worksheet is the same as the 2009-10 Expenditures by LEA (LE-CY) worksheet in Report SEMA, described on page 243, except for the treatment of Object PCRA, Program Cost Report Allocations. Although the amount for this object code is shown in the LE-B worksheet, it is not included in the TOTAL COSTS because there are no comparable budget data. It is shown as a non-add item so the amount will be available for next year's reports. • Complete this worksheet in the same manner as described for the 2009-10 Expenditures by LEA (LE-CY) worksheet in Report SEMA on page 243. • Similar to LE-CY, adjustments in the TOTAL EXPENDITURES section must equal the sum of the adjustments in the FEDERAL EXPENDITURES and STATE AND LOCAL EXPENDITURES sections or an unbalanced message will display. • LEA Maintenance of Effort Calculation (LMC-B) • This worksheet is used to determine if the LEA's 2009-10 budget meets the required level of fiscal effort. • Test 1, Section A, columns A and B are automatically extracted from the other two LEA worksheets, except for lines 2, 5, and 7, which are calculated. Column C is calculated. • Test 1, Section B, and tests 2 and 3 are completed, if necessary, similar to completing the same sections in the SELPA Maintenance of Effort Calculation (SMC-B) worksheet, except that the figures used in LMC-B are those that pertain to the LEA (as opposed to the entire SELPA). Please refer below in the SELPA Maintenance of Effort Calculation (SMC-B) worksheet, for a description of these sections and how they are completed. • At the bottom of the form, enter in the appropriate lines the name of the contact person for this report and that person's title, telephone number, and e-mail address. A warning message will display when closing the report if the information is not entered.

31. Receivables – Payables(Receivables) • QEIA backfill • For 2009-10, districts received a reduction of program funding in order for the state to improve their cash flow and meet their QEIA funding requirement. The state in return has set aside SFSF funds in which to backfill the loss in those programs. • Previously we have sent out a sheet that identified the amounts each district was entitled to receive as backfill. (see attached) • The budgets for these specific categorical programs should have been reduced and the 3200 resource (SFSF) should have been increased by these amounts. • As districts close their books, districts should transfer over any expenditures in the categorical program that is now funded by SFSF dollars over to resource 3200 (SFSF). This cannot be done by object 8990, the actual expenditures must be entered under 3200 resource for auditing and reporting purposes. • At this time, some districts have received some backfill funds from ARRA SFSF dollars. For those who have not yet received all of these funds, a receivable should be set up in resource 3200 for the amount you are due. (See attached sheet for total distributed to date)

32. Receivables – Payables(Receivables) • Tier III flexible categorical programs • As districts closed 2008-09 books, there were two options a district could use in order to transition the Tier III programs receivables and balances into the new year. • The first option was to set up their receivable in the old resource code, balance the resource, and move over any excess to the new resource code. This would have been done with the expectation that when you carryover the cash and receivable balances in the old resource, when the funds are received in the following year, it would offset and leave the old resource code with a zero balance. • The second option was to move over all expenditures and revenue to the new unrestricted resource and apply receivables accordingly. This would have resulted in all old resource codes closed with a zero balance at the end of 08-09. • If the first option was used, then districts should make sure that all receivables that were set up were received and if not, close out the receivable and set it up as a new receivable in the new unrestricted resource code. This will ensure that no balances in the old resource carries forward to the 10-11 year. The old resource codes will be fatal in 10-11 and will create issues if not taken care of at 09-10 unaudited actuals. • If the second option was used, then receivables should be set up in the new resource code and all should be well!

33. Receivables – Payables(Payables) • $252.99 Per ADA Reduction • At this time, most districts should have had their categorical funding reduced or an invoice received for the $252.99 per ADA reduction. If you are a district that is paying back via the state apportionment, the final payment will not be taken until the July apportionment. Therefore districts in this situation should set up a payable in the appropriate object. • Just a reminder that using the 8011 object code as a blanket usage for this per ADA reduction would be inappropriate. The reduction should be coded against the revenue object that is being reduced. Ie: 8011, 8311 or 8590 • Please note that the reduction cannot violate the California Constitution (Section 6 of Article IX) requirement that the State provide at least $120 per ADA, or $2,400 per school agency, whichever is greater (Education Code Section 41975). Thus this creates in essence a floor in which a basic aid school district would always be left with at least the $120/$2,400 constitutionally protected funding under this calculation and would not have to lose additional funding once that level is reached.

34. Receivables – Payables • Deferrals • There has been discussion regarding deferrals and whether or not they should be accrued. It was discussed by BASC that the deferrals should be treated as receivables, however you should check with your independent auditors for the final determination. • K-3 CSR • 09-10 Final CSR will be received in June. However be aware that if the Governor’s proposal to reduce funding by $340 million for 09-10 occurs, then there will be a recapture of funds by approximately $90 million from future apportionments.

35. Year End Checklist • A Year End Closing checklist is provided on the Business website under Business Forms. A copy is also provided in the Year End Closing binder. • A Year End Closing Schedule is provided in the Year End Closing binder. • A QSS/QCC Year End procedures guide is provided in the Year End Closing binder. • A Data Processing Sequence list from SACS for your ease of use in working with dependency checks on the TRC is provided in the Year End Closing binder.