Planning and Updates – June 30, 2018 School Audits

1. Bergen County Association of School Business Officials May 17, 2018 Planning and Updates – June 30, 2018 School Audits Kathryn L. Mantell, CPA, RMA, PSA Andrew Kucinski, CPA, PSA

2. Planning and Updates – June 30, 2018 School Audits • Estimating year end surplus/forecasting for 2018-2019 budget • 2018-2019 ASSA • GASB No. 75 (Post Retirement Benefits) • Uniform Guidance Procurement Rules • Audit findings and recommendations • Update on 403b and 457 plans

3. Estimating Year End Surplus • Review 10-770 Account • Verify beginning balance plus any prior year audit adjustments • Deduct any additional appropriations authorized during the year (prior year Extraordinary/Nonpublic Transportation Aid) • Deduct prior year encumbrances • Deduct amount budgeted during current fiscal year • Deduct transfers from capital reserve • Add/subtract current year excess/shortfall in revenue • Add unexpended (amount available) from current year appropriations

4. Estimating Year End Surplus • Review 10-770 Account • Verify beginning balance plus any prior year audit adjustments • Deduct any additional appropriations authorized during the year (prior year Extraordinary/Nonpublic Transportation Aid) • Deduct prior year encumbrances • Deduct amount budgeted during current fiscal year • Deduct transfers from capital reserve • Add/subtract current year excess/shortfall in revenue • Add unexpended (amount available) from current year appropriations

5. Developing Budget Tactics • Salaries - Position Control Roster • Health, Tuition & Other Contractual Benefits • PERS • Tuition to Other Schools • Operations and Maintenance • Transportation • Capital Outlay

6. ASSA - Students "SENT" to Another NJ Public School (F/T & S/T) • Students sent to out of district programs including: • Out of County Vocational Schools • Regional Day Schools • County Special Service Districts • Special Education Alternative Vocational Education • Also includes Regular Resident 3 and 4 year old Preschool Students sent to contracted Pre-School Program Providers

7. ASSA - Students "SENT" to Another NJ Public School (F/T & S/T) • Choice, Charter School and PSSD (Private School for Students with Disabilities) students are reported on separate worksheets • Must be supported by: • Tuition contracts or other documentation verifying the enrollment • Purchase order for proof of payment of tuition or education services costs

8. ASSA - Students Received from Other NJ Public Schools (F/T & S/T) • Tuition Pay Students • Received students are considered on-roll of the district in which there is a valid tuition contract for the student to receive educational services • Include both resident and non-resident students for whom tuition is received • Include non-resident students whose parents or guardians are teaching staff are their tuition are reduced or waived pursuant to the district’s collective bargaining agreement

9. ASSA - Students SENT to a Charter School • Students listed must be verified: • To the Charter school register • To the Charter School Enrollment (CHE) System • Are legal residents of the school district and • Coded properly for the Low Income, Bilingual and Speech-only classifications • For purposes of ASSA, a charter school student is considered to be enrolled in the student’s resident district and is represented in the Charter School summary column in the ASSA report

10. ASSA - Resident Students receiving Speech Only services • Include students whose only special services is speech language services per N.J.A.C.6A:14-3.6 (Determination of Eligibility for Speech-Language Services) • Only regular education students can be reported as Speech-only students

11. ASSA – Resident Students SENT to a CHOICE School District • Students who participate in the Inter-District Public School Choice Program (CHOICE) • Do not include tuition-free out of district students who did not qualify for School Choice Aid • Must be verified to the School Register

12. GASB No. 75 (Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions) • Effective for fiscal year ending June 30, 2018 • Replaces GASB No. 45 (OPEB) • Similar to GASB No. 68 (Pensions) • Will require information from the State of New Jersey Division of Pensions

13. Uniform Guidance Procurement Rules • Effective December 26, 2017 • CFR 200.317 to CFR 200.326 (Procurement Standards) • Applicable to recipients of federal funding • CFR 200.320 (Methods of procurement for non-Federal entities)

14. Uniform Guidance Procurement Rules • Micro-purchase (new method) • Up to $3,000 • No quotes are required • Equitable distributions - to the extent possible, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers • Small purchases • Up to $150,000 (simplified acquisition threshold). • Informal purchasing procedures are acceptable but quotes (price or rates) must be obtained • Adequate number of qualified sources • No cost or price analysis required

15. Uniform Guidance Procurement Rules • Sealed bids (formal advertising) • Over $150,000 • Formal public solicitation is required • Contract (firm fixed price) is awarded to lowest bidder (e.g. construction projects) • Conform to material terms and conditions • Competitive proposals • Over $150,000 • Used when sealed bids are not appropriate • RFP with evaluation methods • Adequate number of sources

16. Uniform Guidance Procurement Rules • Noncompetitive proposes (sole source) • Unique or available only from a single source • Public emergency • Authorized by federal agency or pass-through entity • After solicitation of a number of sources, competition is determined inadequate

17. Audit Findings and Recommendations • Student Activities • Standardized policies and procedures • Receipts journal maintained by individual collecting funds at school which indicate date of receipt • Approval and receipt of goods signatures on purchase orders • Bank reconciliations • ASSA/DRTRS – low income applications/supporting work papers for enrollments reported • SEMI – Parental Consent forms (90% return) • Travel reimbursements – account coding & brief reports • Approval of payroll registers • Employee health benefits contribution calculation - errors • Capital assets records – tagging, additions & deletions.

18. Audit Findings and Recommendations • Payroll, Payroll Agency and Flexible Spending Trust – account reconciliation and analysis of balance. • Reconciling items in the Treasurer’s report • Reconciliation of grant expenditure final reports to district’s accounting records. • Extraordinary aid application – supporting documentation for reported expenditures. • Timely submission • Board Secretary’s and Treasurer’s reports to the County • TPAF reimbursement • Grant reimbursements – NCLB, IDEA & SDA • County approval for transfers over 10% and to capital outlay for facilities.

19. Questions? Kathryn L. Mantell Andrew KucinskiNisivoccia LLP Nisivoccia LLP200 Valley Road, Suite 300 200 Valley Road, Suite 300Mt Arlington, NJ 07856 Mt Arlington, NJ 07856(973) 328-1825 (973) 328-1825kmantell@nisivoccia.com akucinski@nisivoccia.com

20. Maximizing Retirement Income • Social Security • Pensions • Other Sources Diane DeOliveira, CFP, AIF Certified Financial Planner/Wealth Management Advisor ddeoliveira@nisivocciawealth.com Securities offered through 1st Global Capital Corp., Member FINRA, SIPC. Investment Advisory Services offered through 1st Global Advisors, Inc.