“Managing the Paperwork” Division of School Business Information Analysis & Support

1. “Managing the Paperwork”Division of School BusinessInformation Analysis & Support NCASBO Professional Development August 20, 2003

2. Agenda: Who Does What Monthly Calendar Monthly Expenditure Reports Monthly Financial Report (MFR/AFR)

3. Who Does What: • Nancy Harris: 807-3725 General Reporting Issues, Chart of Accounts, MFR/AFR Issues. • Richard Smith: 807-3729 Zero-Out, School Bldg Bonds, Datafile, Sales Tax Refunds. • Alice Lambright: 807-3720 State Expenditures & Adjustments. • Barbara Chalk: 807-3716 Federal Expenditures & Adjustments. • Ally Barfield: 807-3715 UERS Compliance.

4. Agenda: Who Does What Monthly Calendar Monthly Expenditure Reports Monthly Financial Report (MFR/AFR)

5. Monthly Calendar • Month-End Closing - Build MFR File. • Approximately the 3rd working day of the month - Financial & MFR files picked-up. • 4 working days after files are picked-up - Refunds & Adjustments for prior month can be processed.

6. Monthly Calendar • 15th of the month - Cash Zero-Out Posted & netviewed and Monthly Reports netviewed. • 20th of the month – Financial Data Report Card & Project Summary Analysis netviewed. • 20th thru End of Month – LEA’S Should Reconcile Monthly Reports.

7. Agenda: Who Does What Monthly Calendar Monthly Expenditure Reports Monthly Financial Report (MFR/AFR)

8. Monthly Expenditure Reports Approximately the 15th of the month: • Cash Zero-Out Reports – State and Federal EntriesPosted & Reports netviewed. • State Public School Fund • Allotment Balance Reconciliation Report - “351” • Certification History Report – “856”

9. Monthly Expenditure Reports Approximately the 15th of the month: • Federal Grants Fund • Budget Balance Reconciliation Report – “305” • Cash Balance Report – “314” • School Building Bonds • Allotment Balance Report – “406” • Project Balance Report – “407”

10. Monthly Expenditure Reports Approximately the 20th of the month: • Financial Data Report Cardnetviewed • PART 1: UERS Compliance • PART 2: Monthly Cash Zero-Out • PART 3: Expenditure Code Errors • Project Summary Analysis(Bonds)netviewed

11. Cash Zero-Out Reports State Cash Zero-out Report (JHA360EG) • To notify the LEA of the amount of the monthly cash zero-out for the State Public School Fund(SPSF) and the School Technology Fund(ST). • If the balance is positive (cash remaining) then we do a negative certification. • If the balance is negative (cash deficit) then we do a positive certification.

12. Cash Zero-Out Reports Federal Cash Zero-out Report (JHA903EG) • A summary report by program (PRC) to notify the LEA of the amount of the monthly cash zero-out for the Federal funds, by PRC. • The Cash Advance Account (22430000) is the mirror image of the Cash Account (11010000). • Therefore, the 22430000 Account carries a credit balance. Credit = Positive Balance.

13. Cash Zero-Out Reports Federal Cash Zero-out Report (continued) • If the balance in the 22430000 Account is a CREDIT, the zero-out will process a NEGATIVE certification. • If the balance in the 22430000 Account is a DEBIT, the zero-out will process a POSITIVEcertification.

14. State Public School Fund Allotment Balance Report (JHA351EG) • This report is grouped by PRC: • Shows the most recent allotment; beginning YTD transaction balance; current month transactions, including adjustments and refunds by account code; source code of transaction; YTD transactions; and remaining allotment balance. • Used in the reconciliation process. See MFR Report “899”.

15. State Public School Fund Certification History Report (JHA856EG) • This report shows you the certifications received for each month, the expenditures recorded for each month, and your ending cash balance for the month. • Used to reconcile the cash certifications which have posted for your LEA. • Should match the Zero-Out Report.

16. Federal Grants Fund Budget Balance Report (JHA305EG) • Report is grouped by PRC. • Shows the most recent budget; current month transactions, including adjustments and refunds; source code of transaction; YTD transactions; and remaining budget balance. • Used in the reconciliation process. See MFR Report “899”.

17. Federal Grants Fund Cash Balance Report(JHA314EG) • This report shows the beginning fiscal year cash balance, the certifications recorded, the cash transactions recorded, and the ending calculated cash balance. • Used to reconcile the cash certifications which have posted for your LEA. • An Asterisk (*) in the “Error Flag” column: calculated cash balance does not equal the “2243000”Cash Advance Account balance. • Should match the Zero-Out Report.

18. School Building Bonds (Are covered after MFR reports.)

19. Agenda: Who Does What Monthly Calendar Monthly Expenditure Reports Monthly Financial Report (MFR/AFR)

20. Monthly Financial Report (MFR/AFR) Approximately the 15th of the month: • MFR Revenue & Expenditure Summary • MFR Error Messages Issued • MFR Verification Messages Issued • Information Dropped Per FO Request • Information Dropped – Invalid Data • DBS/MFR Match Report – “899”

21. MFR Revenue & Expenditure Summary • Report is grouped by PRC. • Shows all revenue and expenditure codes. • Transactions categorized by Fund: State, Federal, and Local. • For each Fund, shows Total Revenues, Total Expenditures, and any Difference. • Revenues and Expenditures should equal for State and Federal funds. • Are State, Federal, and Local flags set correctly?

22. MFR Error Messages • Lists Account Code and Posting Errors. • Edits State and Federal codes against the defined Uniform Chart of Accounts for these funds. • Edits Local codes against the Uniform Chart of Accounts – Purpose code & Object code must be valid; PRCnot equalZerofor expenditures. Correct all items on this report by final 13th Period reporting. This includes all funds: State, Federal, and Local !

23. MFR Verification Messages • Notification of unusual transactions / conditions. • Expenditure codes with “negative” balances. • Code notices: “Object 421 for State Textbooks”. • Items on this report do not have to be corrected if they are valid transactions. • If they are not valid transactions, you need to correct your general ledger only. You do not need to notify DPI of these corrections.

24. Information Dropped Per Finance Officer Request • Includes items that were dropped at the LEA Finance Officer’s request. • To request that certain funds and/or PRC’s be excluded for per-pupil calculations, complete the “Funds and/or PRC’s to exclude for MFR Process” request form located on DPI’s website. You may not exclude Fund 1 or Fund 3 codes/PRCs.

25. Information Dropped Due to Invalid Data • Invalid Purpose code transactions. • Invalid Object code transactions. • Invalid PRC code transactions. • Invalid Account code combination transactions. Unresolved Errors on the “MFR Error Messages” Report.

26. DBS/MFR Match Report • Shows the comparison MTD and YTD between the DBS data (Datafile) and the MFR data (LEA general ledger). • Any differences on this report must be reconciled. Monthly is recommended. “899” Report – This is Your Reconciliation Report

27. School Building Bonds • Allotment Balance Report – “406” • Project Balance Report – “407” • Summary Project Analysis – Cash Balance Report.

28. School Building Bonds Allotment Balance Report (JHA406CO) • Shows Current, YTD, and life-to-date (LTD) expenditures for each project by account number. • The Allotment Balance is the remaining cash allotment after LTD expenditures. • Used in the reconciliation process. See Summary Project Analysis – Cash Balance Report.

29. School Building Bonds Project Balance Report (JHA407CO) • Shows the total amount approved by project, the amount that has been allotted (cash available to draw), and the cash certifications drawn against each project’s allotment. • Allotment Balance = Amount of Remaining Cash Available to Draw for each project. • Project Balance = Amount of Funding Available to be Allotted. • Used in the reconciliation process. See Summary Project Analysis – Cash Balance Report.

30. School Building Bonds Summary Project Analysis – Cash Balance Report • Combines information from the “406” and “407” reports. • Shows “At-A-Glance” Allotment Balance and Cash Balance. • Error Flag ** - Expenditures charged to invalid projects or expenditures exceed Total Project Amount. • Use to determine theCash Zero-Out Amount.

31. MSA TrainingSchedule 9:00am to 4:00pm October 7, 2003 (Charter Schools) November 17, 2003 (LEAs) January 27, 2004 (LEAs) March 23, 2004 (LEAs)