ACCOUNTING ISSUES AND CODING EXAMPLES

1. ACCOUNTING ISSUES AND CODING EXAMPLES Kathy Guralski, Auditor, School Finance Team Wisconsin Department of Public Instruction 2007

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3. This presentation is the second webcast that will focus on reporting by public elementary and secondary schools in the State of Wisconsin. The first webcast focused on the Wisconsin Uniform Financial Accounting Requirements �WUFAR� This second webcast will provide you with examples of revenue accounting transactions and how to properly account for them The third webcast will provide you with examples of expenditure accounting transactions and how to properly account for them

4. ACCOUNTING ISSUES AND CODING EXAMPLES http://www.dpi.state.wi.us/sfs/wufar.html On the school financial services homepage we have links to accounting issues and coding examples These are common questions that we have put out information onOn the school financial services homepage we have links to accounting issues and coding examples These are common questions that we have put out information on

5. REVENUE CODING SOURCE CODES TRANSFERS � IN FROM ANOTHER FUND (SOURCE 100) LOCAL (SOURCE 200) A WI DISTRICT (SOURCE 300) DISTRICT OUTSIDE WI (SOURCE 400) INTERMEDIATE EDUCATIONAL AGENCY (SOURCE 500) STATE AGENCY (SOURCE 600) FEDERAL AGENCY (SOURCE 700) OTHER FINANCING (SOURCE 800) OTHER REVENUES (SOURCE 900) These are the source codes identified in the WUFAR Source codes are used to classify revenues and other fund sources by their origins We are not going to talk about every detailed source code but will only talk about commonly used codes and common questions that arise.These are the source codes identified in the WUFAR Source codes are used to classify revenues and other fund sources by their origins We are not going to talk about every detailed source code but will only talk about commonly used codes and common questions that arise.

6. SOURCE 100INTERFUND TRANSFERS Only certain funds are allowed to make transfers to other specific funds Operating Transfers An operating transfer is used to subsidize activities in another fund Must be used with function 411000 Indirect Cost Transfers An indirect cost transfer is used for payment to the district�s general fund for administrative and other �indirect� charges Must be used with function 418000 Residual Balance Transfers A residual balance transfer is used to close out the fund balance in the fund sending the transfer Must be used with function 419000 Three types of transfers Most often a source code will be used with a 500000 function or no function. This is a case where a specific function is used with a source codeThree types of transfers Most often a source code will be used with a 500000 function or no function. This is a case where a specific function is used with a source code

7. SOURCE 100INTERFUND TRANSFERS Most common operating fund transfers Transfer from fund 10 to fund 27 (27R 411000 110) Transfer from fund 10 to fund 38 (38R 411000 110) Transfer from fund 10 to fund 50 (50R 411000 110) Transfer from fund 10 to fund 99 (99R 411000 110) Most common indirect cost transfers Transfer from fund 27 to fund 10 (10R 418000 127) Transfer from fund 99 to fund 10 (10R 418000 199) Most common residual balance transfers Transfer from fund 49 to fund 39 (39R 419000 149) Transfer from fund 39 to fund 10 (10R 419000 139) Will briefly talk about these but will discuss in further detail when we talk more specific about the revenues within these funds Operating transfers From 10 to 27 Fund 27 is a sub-fund of 10 and any costs not covered by aid is covered by local cost From 10 to 38 Fund 38 does not levy for principal/interest payment and is within the revenue limit From 10 to 50 Fund 50 needs to be self-supporting From 10 to 99 Fiscal agents share of the program cost not covered by aid Indirect cost transfers for administrative and other �indirect� charges Residual balance transfers From 49 to 39 When a capital project is complete and there are funds remaining they must be used to pay the debt on the project From 39 to 10 When all debt is paid any remaining funds may be transferred to fund 10Will briefly talk about these but will discuss in further detail when we talk more specific about the revenues within these funds Operating transfers From 10 to 27 Fund 27 is a sub-fund of 10 and any costs not covered by aid is covered by local cost From 10 to 38 Fund 38 does not levy for principal/interest payment and is within the revenue limit From 10 to 50 Fund 50 needs to be self-supporting From 10 to 99 Fiscal agents share of the program cost not covered by aid Indirect cost transfers for administrative and other �indirect� charges Residual balance transfers From 49 to 39 When a capital project is complete and there are funds remaining they must be used to pay the debt on the project From 39 to 10 When all debt is paid any remaining funds may be transferred to fund 10

8. SOURCE 200REVENUE FROM LOCAL SOURCES 210 � Taxes 220 � Payments in Lieu of Taxes (Milwaukee only) 240 � Payments for Services 250 � Food Service Sales 260 � Non-Capital Sales 270 � School Activity Income 280 � Earnings on Investments 290 � Other Revenues from Local Sources 200 received from a local source We will walk through a few common source 200 activities Some are self explanatory Food Service Sales Earnings on Investments200 received from a local source We will walk through a few common source 200 activities Some are self explanatory Food Service Sales Earnings on Investments

9. PROPERTY TAX TRANSACTIONShttp://www.dpi.state.wi.us/sfs/doc/prop_tax.doc Every district will have a source 200 for property tax levies We have information under accounting issues and coding examplesEvery district will have a source 200 for property tax levies We have information under accounting issues and coding examples

10. PROPERTY TAX LEVIES On or before November 1, every public school board must approve the levy amounts necessary to operate and maintain district schools (s.120.12(3) Wis. Stats.) May levy in funds 10, 38, 39, 41, 80 Levy set in November, received in January and August of following year. Levy set in November, received in January and August of following year.

11. PROPERTY TAX LEVIES Entry to set up the current tax levy upon certification (November) General Fund Funds other than the General Fund Set up complete receivable in fund 10 Record full tax levy source 211Set up complete receivable in fund 10 Record full tax levy source 211

12. PROPERTY TAX LEVIES District receives taxes from municipalities February and August General Fund At June 30, the district will still have uncollected property taxes and thus a receivable on the books. Common question � May be in all funds but must be proportionate to the % of the total levy that the fund is Example � Levy in Fund 10 is 400,000, levy in Fund 38 is 100,000, receivable is 100,000 (fund 38 may only have a receivable of 20,000 or 20% of the receivable)At June 30, the district will still have uncollected property taxes and thus a receivable on the books. Common question � May be in all funds but must be proportionate to the % of the total levy that the fund is Example � Levy in Fund 10 is 400,000, levy in Fund 38 is 100,000, receivable is 100,000 (fund 38 may only have a receivable of 20,000 or 20% of the receivable)

13. PROPERTY TAX LEVIES Transfer of cash from fund 10 to other funds General Fund Funds other than the General Fund At June 30, the district will still have uncollected property taxes and thus a receivable on the books. Common question � May be in all funds but must be proportionate to the % of the total levy that the fund is Example � Levy in Fund 10 is 400,000, levy in Fund 38 is 100,000, receivable is 100,000 (fund 38 may only have a receivable of 20,000 or 20% of the receivable)At June 30, the district will still have uncollected property taxes and thus a receivable on the books. Common question � May be in all funds but must be proportionate to the % of the total levy that the fund is Example � Levy in Fund 10 is 400,000, levy in Fund 38 is 100,000, receivable is 100,000 (fund 38 may only have a receivable of 20,000 or 20% of the receivable)

14. PAYMENTS FOR SERVICES You are providing a service and receiving payment for that service Example: Non-resident student attending your district Student is not open-enrolled Resident district is not paying tuition Parent is paying tuition Source 241 Keep in mind the local sources is saying this is coming from a private individual or private organizationKeep in mind the local sources is saying this is coming from a private individual or private organization

15. GIFTS Gifts specified by donor to be used for operating purposes (i.e. playground equipment, school nurse, beautification of grounds) Source 291 Generally reported in Fund 21 http://www.dpi.wi.gov/sfs/doc/fund21.doc

16. OTHER REVEUE FROM LOCAL SOURCES Source 290 Student Fees/Fines Regular school year fees for consumables, locker, towel, equipment usage, etc. Rentals Rental of district property from other than charges to students Example - Local organization use of a room Textbooks Revenues Rental or sale of textbooks to pupils Summer School Revenue Fees collected for summer school programs This will be requested by your auditor if your district has a membership audit Common source 290 activityCommon source 290 activity

17. SOURCES 300, 400 AND 500 300 � Source is a Wisconsin School District 400 � Source is an Out of State School District 500 � Source is a CESA or CCDEB Will talk about these three together 300 � received tuition from another school district for a resident student attending there Source 400 very seldom will you use Source 500 only if you are involved in a CESA or CCDEB program CCDEB � County Children�s Disabilities Educational Board 500- received reimbursement from a CESA or CCDEB for a service provided them or CESA received aid and is transiting it to the district Will talk about these three together 300 � received tuition from another school district for a resident student attending there Source 400 very seldom will you use Source 500 only if you are involved in a CESA or CCDEB program CCDEB � County Children�s Disabilities Educational Board 500- received reimbursement from a CESA or CCDEB for a service provided them or CESA received aid and is transiting it to the district

18. PAYMENTS FOR SERVICE Transit of Aids (310, 510) Examples - Another entity provides special education services for a resident student either on a tuition basis or as the fiscal agent for a cooperative program. Your district pays them for the service. They file for the aid which is received in the subsequent year. They transit to you the portion of the aid associated with the cost you reimbursed them for. Your District is being reimbursed by another entity for cost you incurred that are part of a cooperative or packaged program with another school district, CESA or CCDEB. The other entity is claiming those costs on a state or federal grant and using the funds received on the grant to reimburse your district. KEY Always federal or state aid involved but you are not receiving the aid directly from DPI or another Federal or state agency. The state or federal agency is paying another entity such as a school district or CESA and they are then paying you the aid. Most common in special education programs You are involved in a cooperative program and the fiscal agent files for the aid and then transits you the portion you are entitled to You may be the fiscal agent and another district is reimbursing you for the service. They claim that reimbursement on their federal IDEA Flow Through grantKEY Always federal or state aid involved but you are not receiving the aid directly from DPI or another Federal or state agency. The state or federal agency is paying another entity such as a school district or CESA and they are then paying you the aid. Most common in special education programs You are involved in a cooperative program and the fiscal agent files for the aid and then transits you the portion you are entitled to You may be the fiscal agent and another district is reimbursing you for the service. They claim that reimbursement on their federal IDEA Flow Through grant

19. PAYMENTS FOR SERVICE Payments for Services (340, 440, 540) Examples � Open Enrollment � Charges to other school districts for instructional services your district provided to pupils participating in the open enrollment program (340) Revenue from a CESA for instructional services your district provided to pupils (540) Payment for a service that you are providing Other entity is using local funds to reimburse you (not claiming for aid reimbursement such as grant or categorical aid) VERY COMMON � OPEN ENROLLMENT Source 345 is regular open enrollment Source 347 is SPED open enrollment CESA services is source 540 541 � Instructional services 546 � Special Education ServicesPayment for a service that you are providing Other entity is using local funds to reimburse you (not claiming for aid reimbursement such as grant or categorical aid) VERY COMMON � OPEN ENROLLMENT Source 345 is regular open enrollment Source 347 is SPED open enrollment CESA services is source 540 541 � Instructional services 546 � Special Education Services

20. PAYMENTS FOR SERVICE Payments for Services (340, 440, 540) Examples Cooperative Programs Multi-District projects with COOP agreement One District acts as fiscal agent Fiscal agent maintains revenue and expenditure records Cost is prorated to participating districts Revenues cover expenditures Fiscal agent reports the payment by the participating districts as a payment for services (source 340) ANOTHER COMMON ONE IS COOPERATIVE AGREEMENTANOTHER COMMON ONE IS COOPERATIVE AGREEMENT

21. COOP TRANSACTION REPORTING Special Education COOP Fiscal agent and participating districts account for activity in fund 27 Other types of COOP agreements Fiscal agent accounts for activity in fund 99 Operating transfer from fund 10 is made for the fiscal agent�s portion of the cost Participating districts account for their payment to fiscal agent in the appropriate fund of the activity which is most often the general fund Project other than special education � Fund 99 Record all expenditures Record aid received Bill the participating districts for their portion of net cost Reclassify fiscal agent portion to fund 10 At end of project Fund 99: Revenues must equal expenditures No fund balance A salary only individual could be in fund 10 ALLOWS FOR EASIER TRACKING DOESN�T INFLATE REVENUES AND EXPENDITURE IN FUND 10 Project other than special education � Fund 99 Record all expenditures Record aid received Bill the participating districts for their portion of net cost Reclassify fiscal agent portion to fund 10 At end of project Fund 99: Revenues must equal expenditures No fund balance A salary only individual could be in fund 10 ALLOWS FOR EASIER TRACKING DOESN�T INFLATE REVENUES AND EXPENDITURE IN FUND 10

22. COOP TRANSACTION CODING Coop transaction coding http://www.dpi.state.wi.us/sfs/doc/coop_trans.doc Fiscal Agent Agreement Account Coding http://www.dpi.state.wi.us/sfs/xls/fisagagree.xls Fiscal Agent Requirements http://www.dpi.state.wi.us/sfs/doc/fisagnt.doc Fiscal Agent � Example of Level Three Documentation http://www.dpi.state.wi.us/sfs/doc/fisagnt_example.doc Link on School Financial Services website to COOP information http://www.dpi.state.wi.us/sfs/coop_agree.html

23. STATE AND FEDERAL AIDSOURCE CODES 600 AND 700

24. STATE AND FEDERAL AID ENTITLEMENTS MOST BIG $ PROGRAMS GENERAL AID, SPECIAL EDUCATION,TRANSPORTATION, SAGE REVENUE WHEN $ APPROPRIATED REIMBURSABLE GRANTS �GRANT� PROGRAMS CLAIMED ON PI 1086, SOURCE 630/730 REVENUE WHEN REIMBURSABLE EXPENDITURE OCCURS ENTITLEMENTS Entitlement grants are formula grants based on factors such as: Population, enrollment, per capita income, specific need Entitlement grants are typically your larger receipts such as Special Ed Aid and Equalization Aid. Revenue is recorded when appropriated. District will generally receive funds at specified dates during the year. Normally will not have a receivable at year end unless there is a delayed payment (Government will notify you). General aid normally has a receivable at year end (deferred general aid payment) REIMBURSABLE GRANTS Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086. Examples � IDEA, Title I, AODA Generally these grant revenues are recorded in either Source 630 for State Programs or 730 for Federal programs. 630 and 730 are from DPIENTITLEMENTS Entitlement grants are formula grants based on factors such as: Population, enrollment, per capita income, specific need Entitlement grants are typically your larger receipts such as Special Ed Aid and Equalization Aid. Revenue is recorded when appropriated. District will generally receive funds at specified dates during the year. Normally will not have a receivable at year end unless there is a delayed payment (Government will notify you). General aid normally has a receivable at year end (deferred general aid payment) REIMBURSABLE GRANTS Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086. Examples � IDEA, Title I, AODA Generally these grant revenues are recorded in either Source 630 for State Programs or 730 for Federal programs. 630 and 730 are from DPI

25. SOURCE 600REVENUE FROM STATE SOURCES 610 � State Aid � Categorical 620 � State Aid � General 630 � State special Project Grants 640 � State Tuition Payments 650 � State �SAGE� Aid 660 � State Revenue Through Local Governments 690 � Other Revenue from State Sources Revenues received directly from the State of Wisconsin should be recorded in this seriesRevenues received directly from the State of Wisconsin should be recorded in this series

26. STATE SPECIAL EDUCATION CATEGORICAL AID Many different types of special education programs PROGRAM OPERATED BY THE DISTRICT (DISTRICT EMPLOYS PERSONNEL) PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS PROGRAM OPERATED BY CESA PROGRAM OPERATED BY CCDEB Costs funded by a combination of state, local and federal dollars The first entitlement aid we will talk about is special education categorical aid which is based on special needs The many different programs create a lot of different situations In addition the different funding of costs create various coding Creates problems with coding Operated by District: You employ the staff You claim the costs for special education Operated as a consortium: Several school join together Each one alone cannot afford the program or do not have enough students One District administers the program Incurs cost (must hire staff) Bill other Districts for services Receive aid Transit aid to other Districts Operated by CESA: CESA administers the program CESA may or may not hire the staff Host District Operated by CCDEB: CCDEB administers the program Similar to CESA The first entitlement aid we will talk about is special education categorical aid which is based on special needs The many different programs create a lot of different situations In addition the different funding of costs create various coding Creates problems with coding Operated by District: You employ the staff You claim the costs for special education Operated as a consortium: Several school join together Each one alone cannot afford the program or do not have enough students One District administers the program Incurs cost (must hire staff) Bill other Districts for services Receive aid Transit aid to other Districts Operated by CESA: CESA administers the program CESA may or may not hire the staff Host District Operated by CCDEB: CCDEB administers the program Similar to CESA

27. Fund 27 Fund 27 is where all revenues related to special ed are recorded. Fund 27 acts like a �sub fund� to Fund 10 (general operations). Fund 10 must always make a balancing entry in the form of a transfer to Fund 27 at the end of the year. Fund 27 must have a �0� ending fund balance.

28. Fund 27 - What�s up with that?? Fund 27 identifies Special Education Costs. A portion of these eligible costs are reimbursed with a categorical aid. A categorical aid is State aid that is intended for a specific purpose.

29. How do I claim Special Ed Aid? Fund 27 has its own annual claim It is reported by a program installed on district computer and sent via e-mail to DPI �Aid eligible� and �Non-aidable� costs are identified http://www.dpi.state.wi.us/sfs/speced.html You identify in your special education report which costs from fund 27 are aidable Working on going online with Special Ed. The coding of these transactions has always been a problem. A lot of time at year end is spent trying to tie out the activity between districts and other districts and CESAs. This is to prevent aid being paid twice on an expenditure or to prevent state categorical aid from being paid on an expenditure that was reimbursed by a federal grant.You identify in your special education report which costs from fund 27 are aidable Working on going online with Special Ed. The coding of these transactions has always been a problem. A lot of time at year end is spent trying to tie out the activity between districts and other districts and CESAs. This is to prevent aid being paid twice on an expenditure or to prevent state categorical aid from being paid on an expenditure that was reimbursed by a federal grant.

30. EQUALIZATION AID Verify that your equalization aid equals what is reported in source 621 Aid payment schedule http://www.dpi.state.wi.us/sfs/pay_aid_info.html Final general aid worksheet http://www.dpi.state.wi.us/sfs/aid_worksheets.html

31. ACCOUNTING FOR DELAYED EQUALIZATION AID PAYMENT The next entitlement aid we will talk about is the equalization aid Based on factors such as membership, costs and equalized property value During the year you will receive payments that are coded to source 621. At year end there will be a delayed payment This entry causes problems at year end. Various adjustments are made Regular open enrollment Revenue limit penalty This information is mailed to you and available on the web.The next entitlement aid we will talk about is the equalization aid Based on factors such as membership, costs and equalized property value During the year you will receive payments that are coded to source 621. At year end there will be a delayed payment This entry causes problems at year end. Various adjustments are made Regular open enrollment Revenue limit penalty This information is mailed to you and available on the web.

32. State Revenue Through Local Governments Revenue from local governments other than school districts, CESAs and CCDEBs Examples (Source 660) Payments in Lieu of Taxes for DNR property State financial assistance payments received from Technical Colleges and Universities

33. SOURCE 700REENUE FROM FEDERAL SOURCES 710 � Federal Aid � Categorical 720 � Impact and Disaster Aid 730 � Federal Special Project Aid Transited Through DPI 750 � Elementary and Secondary Education Act (ESEA) 760 � Job Training Partnership Act (JTPA) 770 � Federal Aid Received through Municipalities and Counties 780 � Federal Aid Received through State Agencies other than DPI 790 � Other Revenue from Federal Sources Revenues received from the federal government May be that you are receiving them from a state agency that has oversight of the funds High Cost Special Education IDEA flow throughRevenues received from the federal government May be that you are receiving them from a state agency that has oversight of the funds High Cost Special Education IDEA flow through

34. Grant Receivables Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086 Revenue is reported in the fiscal year that the cost is incurred When a grant reimbursement claim is submitted BEFORE the end of the fiscal year, but the actual cash won�t be received until AFTER the start of the new fiscal year, a grant receivable needs to be booked in the ledger. Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086

35. Grant Receivables Why do it this way? In accrual accounting, revenue is recognized when it is earned. By submitting the reimbursement claims in June, the district �earns� the money in the 06-07 school year, so the claims need to be booked as revenue in 06-07; however, since the actual cash will not come until the 07-08 school year, a receivable is used to account for the expected cash.

36. Grant Receivables Example: Title I-A 06-07 reimbursement claim for $26,493 is completed and sent to DPI on June 29.

37. Grant Receivables July 1, 2006 July 1, 2007

38. Aids register is available at: http://www.dpi.state.wi.us/sfs/online_ar.html

39. SOURCE 800OTHER FINANCING SOURCES 850 � Reorganization Settlement 860 � Compensation for Sale of Loss of Fixed Assets 870 � Long-Term Debt Proceeds Reorganization Settlement is unusual so we won�t discuss We will discuss the long term debt in the part 3 expenditure session.Reorganization Settlement is unusual so we won�t discuss We will discuss the long term debt in the part 3 expenditure session.

40. SALE OF SCHOOL PROPERTY Statute 120.10(12) states that the school board has the power to �authorize the sale of any property belonging to and not needed by the school district. Generally recorded in Fund 10 under source 860 District may choose to place the revenue in another fund but only if so designated at the district�s annual meeting Examples of using another fund Capital Project fundExamples of using another fund Capital Project fund

41. SOURCE 900OTHER REVENUES 950 � Contribution to Employee Benefit Trust 960 � Adjustments 970 � Medical Service Reimbursements 990 � Other Miscellaneous Revenues The one that cause most concern and is most commonly used is the 970The one that cause most concern and is most commonly used is the 970

42. SOURCE/OBJECT 971/972http://www.dpi.state.wi.us/sfs/doc/rec_exp.doc

43. SOURCE/OBJECT 971/972 Source/Object 971 �Refund of Prior Year Expense� E-Rate Refunds, Insurance Refund, CESA Refund, Dividend�s on Worker�s Compensation Source/Object 972 �Property Tax and Equalization Aid Refund� Property Tax Refund, Equalization Aid Refund, Taxpayer Levy Refund, Special DPI Approved Amount Source/Object 971 E-Rate Refunds FCC assesses the telecommunication carriers for the funds which are then dispursed back to the carriers through an administrator. This allows a discount to the schools. The federal government oversees the program but the funds come from the carriers. Insurance Refund Dividend or refund of prior year insurance premium CESA Refund Cesa overcharges the district and in the next year returns the overpayment CAUTION � district may have used grant dollars to pay CESA Dividend�s on Worker�s Compensation Other Examples Flex plan at year end, employee forfeits remaining balance Source/Object 972 Property Tax Refund Equalization Aid Refund Adjustment to district�s aid after year end Taxpayer Levy Refund Paid from individual taxpayer versus municipality (not sure when this happens) Special DPI Approved Amount Special situation and DPI has told you to record it there (rare, i.e. TIF district)Source/Object 971 E-Rate Refunds FCC assesses the telecommunication carriers for the funds which are then dispursed back to the carriers through an administrator. This allows a discount to the schools. The federal government oversees the program but the funds come from the carriers. Insurance Refund Dividend or refund of prior year insurance premium CESA Refund Cesa overcharges the district and in the next year returns the overpayment CAUTION � district may have used grant dollars to pay CESA Dividend�s on Worker�s Compensation Other Examples Flex plan at year end, employee forfeits remaining balance Source/Object 972 Property Tax Refund Equalization Aid Refund Adjustment to district�s aid after year end Taxpayer Levy Refund Paid from individual taxpayer versus municipality (not sure when this happens) Special DPI Approved Amount Special situation and DPI has told you to record it there (rare, i.e. TIF district)

44. PROPERTY TAX REFUNDS PAYMENT TO MUNICIPALITY FOR UNCOLLECTED PERSONAL PROPERTY TAXES FUND 10 (10 E 492 000 972) COLLECTION OF REFUND FUND 10 (10 R 000 000 972) SOURCE 212 LEVY � NET PAYMENTS* OPTIONAL NOT NEGATIVE *object 972 minus source 972 Municipality charges back to the district delinquent personal property taxes The school district pays the municipality for those charges, object 972 Occasionally, a municipality collects some amounts that were previously charged back (district paid back to the municipality). When this happens, the municipality returns the school portion to the school district. Revenue source 972 May or may not have a 212 � chargeback To finance those charges, the district levies tax for them NET THE 972�s but YOU SHOULD NEVER HAVE A NEGATIVE LEVY!Municipality charges back to the district delinquent personal property taxes The school district pays the municipality for those charges, object 972 Occasionally, a municipality collects some amounts that were previously charged back (district paid back to the municipality). When this happens, the municipality returns the school portion to the school district. Revenue source 972 May or may not have a 212 � chargeback To finance those charges, the district levies tax for them NET THE 972�s but YOU SHOULD NEVER HAVE A NEGATIVE LEVY!

45. MEDICAID �SBS� SERVICES SOURCE 981/989 PROVIDED TO CHILDREN WITH DISABILITIES (SPECIAL EDUCATION) COST IN SPECIAL EDUCATION FUND (27) REVENUE IN GENERAL FUND (10) CANNOT CHARGE MEDICAID COSTS AGAINST FEDERAL GRANT FUNDS NOT A DEDUCTIBLE FOR STATE CATEGORICAL SPECIAL ED http://www.dpi.state.wi.us/sfs/doc/medicaid.doc Remember that revenue from medicaid goes into Fund 10 only but special education expenditures are always in fund 27Remember that revenue from medicaid goes into Fund 10 only but special education expenditures are always in fund 27

46. QUESTIONS? School Finance Auditors Kathy Guralski - (608) 266-3862 kathryn.guralski@dpi.state.wi.us Gene Fornecker - (608) 267-7882 eugene.fornecker@dpi.state.wi.us Natalie Rew - (608) 267-9212 natalie.rew@dpi.state.wi.us