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Capital Outlay Bureau Spring Budget Workshop 2013

Capital Outlay Bureau Spring Budget Workshop 2013. Cubero Elementary School – Grants-Cibola District. Presenters. Antonio Ortíz - Director Chris Thweatt - Financial Coordinator Maria Fidalgo – Director, Audit & Accounting Bureau. Purpose : To Educate School Districts Regarding Our:.

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Capital Outlay Bureau Spring Budget Workshop 2013

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  1. Capital Outlay Bureau Spring Budget Workshop 2013 Cubero Elementary School – Grants-Cibola District

  2. Presenters • Antonio Ortíz - Director • Chris Thweatt - Financial Coordinator • Maria Fidalgo – Director, Audit & Accounting Bureau

  3. Purpose:To Educate School Districts Regarding Our: • Roles and responsibilities • Process of accessing capital outlay funds administered by the PED

  4. Capital Outlay Bureau Goals: • Reduce turnaround time • Improve customer service • Streamline processes and workflows • Use information technology to make documents user friendly and easily accessible

  5. Agenda • Budget Issues • Operating Budget Management System (OBMS) • Budgets • Reimbursement Requests • Capital Improvements Act (SB-9) • Public School Buildings Act (HB-33) • New Legislation – pending Governor’s Signature • Miscellaneous Issues • Question & Answer Session

  6. Budget Issues • Fund 31200 – Public School Capital Outlay Council (PSCOC) • End of Fiscal Year Journal Entries • Cash Balances in Reimbursement Basis Funds

  7. Budget IssuesFund 31200 (PSCOC) The following example assumes a school district with a 50% percentage of participation. The district share of the PSCOC project is 50% and the PSCOC (State) share is 50%: • Do not budget the PSCOC 50% amount in OBMS • End of fiscal year PSFA provides work-in- • progress (WIP)project balances • District provides auditors with a journal entry with • those balances for financial statements • presentation

  8. Budget IssuesEnd of Fiscal Year Journal Entries • RfR submitted in current • year but reimbursement • received in the following • fiscal year • Record a journal entry to • recognize receivable and • revenue • - Dr. Accounts Receivable Cr. Revenue • Reimbursement received in • the following fiscal year, • only cash and accounts • receivable will be affected • - Dr. Cash • Cr. Accounts Receivable

  9. Budget IssuesCash in Capital Outlay Funds • Reimbursement basis funds should have zero cash balances except for fund 31700 • Unless: • Money is owed to another fund, record interfund due to/due from and process the interfund transfer • Money was received in advance, cash balance should be identifiable/traceable to specific project

  10. OBMS • PED COB works with districts and charters establishing budgets and BARs for funds: • 27106 – 2010 GOB Public School Library Acquisitions • 27107 – 2012 GOB Public School Library Acquisitions • 27115 – Statewide Robotics

  11. OBMS • 27171 – 2010 GOB Instructional Materials • 27174 – 2010 Pre-K Capital • 31200 – PSCOC – Lease Payment Assistance • 31400 – Direct Appropriations • 31700 – SB-9

  12. OBMSBudgeting Capital Outlay Funds • Carryover state fund balances in 43204 • New awards of state funds budgeted in 43210 (fund 31400) and 43202 (fund 31700) • 2013-2014 Lease Assistance Awards will not be projected. BAR upon receipt of award letter

  13. OBMSBudgeting Capital Outlay Funds • 2013-2014 SB-9 State Match Award will not be projected. BAR upon receipt of award letter • Estimated column should include all outstanding revenue balances as of July 1, 2012 • This method is unique to capital funds administered by the PED COB

  14. OBMSBudgeting Capital Outlay Funds • COB will publish, on the COB webpage, PED balances based on expenditures submitted into OBMS in funds 27106, 27115, 27171, 27174, 31400 and 31700 as of March 27, 2013 to help your district/charter calculate any potential carryover • Fund 31400 Direct Legislative Appropriations authorized during the 2013 legislative session will use object code 43210

  15. OBMSBudgeting Capital Outlay Funds 2012 GOB Public School Library • Award letters will be mailed in April 2013 • Funds will revert June 30, 2016 • Bonds are scheduled for sale on April 9, 2013 • Budget in Projected • Funds will be available to districts/charters beginning July 2013 • Use prior year award first

  16. OBMSBudgeting Capital Outlay Funds Scenario for fund 31700 • As of July 1, 2012 the Capital Outlay District has: • Cash Balance (Ensuing audit verifies) - $100,000 • Ad valorem taxes - $197,000 Revenue: Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 0 43204 - $ 0 $297,000

  17. OBMSBudgeting Capital Outlay Funds Also, as of July 1, 2013 the Capital Outlay District has outstanding prior year balances: • SB-9 State Match – 2011-2012 - $50,000 2010-2011 - $49,000 2009-2010 - $51,000 Revenue: Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 0 43204 - $150,000 $447,000

  18. OBMSBudgeting Capital Outlay Funds On February 22, 2013 an award is made: • SB-9 State Match – 2012-2013 - $50,000 Revenue: Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000 $497,000

  19. OBMSBudgeting Capital Outlay Funds For ‘12-’13 there are expenditures of $175,000: Revenue: Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000 $497,000 Expenditures: 54315 - $ 75,000 (cash) 54500 - $100,000 (SB-9 State Match reimbursements) $175,000

  20. OBMSBudgeting Capital Outlay Funds The ‘12-’13 SB-9 State Match expenditures of $100,000 tell us: Revenue: EstimatedProjected 11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000 43204 - $100,000(12-13 & 11-12) $497,000 $100,000 Expenditures: 54315 - $ 75,000 (cash) 54500 - $100,000 (SB-9 State Match reimbursements) $175,000

  21. OBMSBudgeting Capital Outlay Funds Estimated cash balance on June 30, 2013 is $25,000: Revenue: EstimatedProjected 11111 - $100,000 11111 - $ 25,000 41110 - $197,000 41110 - $ 0 43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000(12-13 & 11-12) $497,000 $125,000 Expenditure: 54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $125,000 $175,000 $125,000

  22. OBMSBudgeting Capital Outlay Funds ‘13-’14 projected ad valorem of $200,000 self populates: Revenue: EstimatedProjected 11111 - $100,000 11111 - $ 25,000 41110 - $197,000 41110 - $200,000 (self populates) 43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000(12-13 & 11-12) $497,000 $325,000 Expenditure: 54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $325,000 $175,000 $325,000

  23. OBMSBudgeting Capital Outlay Funds Unused $197,000 ad valorem carries over to cash: Revenue: EstimatedProjected 11111 - $100,000 11111 - $222,000 41110 - $197,000 41110 - $200,000 (self populates) 43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000(12-13 & 11-12) $497,000 $522,000 Expenditure: 54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $522,000 $175,000 $522,000

  24. OBMSBudgeting Capital Outlay Funds For capital funds: Estimated Revenue minus Estimated Expenditures Equals Projected cash plus projected prior year balances (43204) (use previous slide as an example)

  25. Reimbursement Requests in OBMS: • Fund 27106 – 2010 GOB Public School Library Acquisitions • Fund 27107 – 2012 GOB Public School Library Acquisitions • Fund 27115 – Statewide Robotics • Fund 27171 – 2010 GOB Instructional Materials

  26. Reimbursement Requests in OBMS: • Fund 27174 – 2010 Pre-K Capital • Fund 31400 • Fund 31700 – Expend older years first • Fund 31200 - PSCOC lease payment is NOT processed through OBMS but to Gerald Pertner with PSFA – (505) 988-5989

  27. Reimbursement RequestsRequired Documentation • Collect all required documentation from checklist: • Reimbursement Request Form • Expenditures Report • Copies of invoices • Proof of Payment • Ensure expenditures meet legislative intent • Expenditures should be submitted in the year incurred

  28. Reimbursement RequestsRequired Documentation • Reimbursement Request Form – Authorized Signature • Signature Authorization Form • Wire Transfer Form • Expenditure Report • Invoice and proof of payment • Update CPMS for fund 31400 only

  29. Reimbursement RequestsSteps of Program Review • Ensure funds are expended with goods and services received on or before the reversion date • Ensure draw request is ≥ $1,500 for STB’s and GOB’s • Submit approved request to Fiscal Grants Management Bureau

  30. Reimbursement RequestsProjects Expiring June 30, 2013 • 2009 Construction Projects and 2011 Non-Construction Projects • Please note that final draw requests must be received no later than July 6, 2013 for projects expiring June 30, 2013, or any remaining balance will be reverted.

  31. Public School Capital Improvements Act (SB-9 State Match) • SB-9 funds will be distributed to charter schools on a membership basis using 40th day of prior school year • No distribution to charters schools which commenced instruction this school year • State charter schools included • Funds distributed on reimbursement basis • Expenditures are not reimbursable if incurred more than 60 days prior to the date the bonds are sold

  32. Public School Capital Improvements Act (SB-9 Local Tax) • Charter School needs shall be included in all SB-9 elections held after July 1, 2009 • If charter school provides information timely to district to include in resolution • Information identifies how the revenues will be used • Distributed by county treasurer to each charter school

  33. Public School Buildings ActHB-33 • School Districts shall include the needs of charter schools after July 1, 2007 • If charter school provides information timely to district to include in resolution • Information identifies how the revenues will be used

  34. Public School Buildings Act (HB-33) • Capital needs included in districts 5-year master facilities plan for local charters • State charters include in their 5-year plan • Distributed by county treasurer to each charter school

  35. 2013 Legislative Session SB 333 – School Leases and Interests, Conflicts • Requires that the facilities of a new charter school or a charter school relocating must attain a condition rating equal to or better than the average New Mexico facility condition index for that school year, within 18 months of occupancy or relocation • Requires the PSCOC to develop a standardized lease to be used by charter schools entering into a lease after July 1, 2013 • Requires the PSCOC to review and approve lease payment assistance of a school district that is leasing space to a charter school up to the local market rate as long as it does not exceed the rate provided in statute

  36. 2013 Legislative Session SB 333 – School Leases and Interests, Conflicts • Requires a chartering authority to annually review and approve charter school conflict of interest disclosure statements • Disallows a person to be an employee of a charter school if the individual or an immediate family member is an owner, agent of, contractor, or has a for-profit in which the charter school contracts for professional goods, services or facilities SB 231 – School District & Charter School Investments • Allows state-chartered charter schools to make investments of public money and deposits with local qualified depositories

  37. 2013 Legislative Session SB 60 – Severance Tax Bond Projects • $13,000.0 – school bus purchase • $298.3 – statewide robot systems • 176 additional projects totaling $12,600.3 to school districts and charter schools • $2,500.0 – pre-kindergarten classrooms • PSFA will administer this fund HB 353 – Reauthorized Projects • 1 Project

  38. Miscellaneous IssuesCharter School Reports for HB-33 and SB-9 • Proposed expenditure reports due December 1st of each year • Report shall include the proposed uses • Submit to the PED and the chartering authority • Within 20 days, the PED shall advise if, in its opinion, the expenditures are consistent with the law • Report prior year expenses to the PED and the chartering authority by January 31

  39. Miscellaneous IssuesDisposition of Property • Need Approval Prior to Disposition • Approving Entity Determined by Value and Whether Property is Personal or Real • Checklist on COB Website • PED Form 947 Along With Supporting Documentation

  40. Miscellaneous IssuesDisposition of Property • SAO – RalenRandel (505) 476-3800 • SBF – Stephanie Schardin (505) 827-4980 • PED – Chris Thweatt (505) 827-6609 or Lisa Romero (505) 827-7646

  41. Miscellaneous IssuesClosing Out Prior-Year Awards • 2010 GOB Public School Library Acquisitions • 2010 Pre-K Capital • SB-9 (2008-2010)

  42. Miscellaneous IssuesRequiredElection Documents SB-9 & HB-33 • Signed Minutes • Signed Resolution • Legal Publication of Resolution • Legal Publication of Notice of Election • Legal Publication of Canvass Results • Signed Certification of Canvass (Documents due April 12, 2013)

  43. Miscellaneous IssuesLease Purchase Process • You must obtain PSFA approval before submitting to the PED • Cover letter • School Board or Governing Body minutes • Certification of attorney • Copy of proposed lease purchase arrangement • List source of funds • Charter schools submit to Charter School Division and school districts submit to COB

  44. Summary • Balances for 27106, 27115, 27171, 27174, 31400, and 31700 are on the COB webpage • Understanding new changes to the direct appropriation process • How to obtain reimbursement for all capital outlay projects • SB-9 and HB-33 Updates

  45. Evaluation & Questions

  46. Contact Us Antonio Ortiz – Director (505) 827-6613 Antonio.ortiz1@state.nm.us Chris Thweatt – Financial Coordinator (505) 827-6609 Christopher.thweatt@state.nm.us Lisa Romero – Financial Coordinator (505) 827-7646 Lisaa.romero@state.nm.us

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