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Working Budget & Fund 400

Working Budget & Fund 400. Webcast September 20, 2012. Working Budget Purpose. Required under KRS 160.470(6)(a) and (b) and Administrative Regulation 702 KAR 3:110 Working budget reports financial soundness

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Working Budget & Fund 400

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  1. Working Budget & Fund 400 Webcast September 20, 2012

  2. Working Budget Purpose • Required under KRS 160.470(6)(a) and (b) and Administrative Regulation 702 KAR 3:110 • Working budget reports financial soundness • Working budget reports current expenses, debt service, capital outlay, and other expenses during the fiscal year.

  3. Working Budget Submission • Final Working Budget is due to KDE by September 30 • The Working Budgets submitted via the web submission process at link: http://odss.education.ky.gov/webforms. • Web Submission will be open from September 15, 2012 through September 30, 2012 • Only one submission for each district is allowed • Districts are required to submit two working budget files (WKD and WSB) to KDE

  4. Important Edit Checks • Transfers In must agree with Transfers Out • Budgets must balance with each fund • Under MUNIS Version 9.1 and 9.3make sure projected date range and actual date rangeare fixed and MUNIS Version 7.5thestart and actual completion dates of projects are entered • Contingency in fund 1 must be at least two percent (2%) of total expenditures in Funds 1 & 51

  5. Edit Check Process Check All possible errors before submitting budget • If error is received then one of the edit checks has not passed • Each error must be corrected before the verification process will continue to verify the remaining data • An approval email message will be received when all errors are fixed and the working budget is successfully uploaded

  6. Working budget ERRORS 1. Please refer to the link below for KDE’s Tentative & Working Budget submission Guidefor errors http://www.education.ky.gov/kde/administrative+resources/finance+and+funding/school+finance/munis/user+guides/budget+general+ledger/afr+statewide+budget+general+ledger+reports.htm 2. Error message appears if the Budgeted Contingency is not at least 2%. Contingency is calculated by using Fund 1 Balance and dividing it by Fund 1 and Fund 51 Expenditure. Definition of Contingency is budgeted amounts that are not to be spent for a specific purpose, but are reserved for unforeseen expenditures in the future.

  7. Top 5 Working Budget Questions • 1. Do Transfers In have to agree with Transfers Out? Yes, all Transfers In must agree to Transfers Out. Transfers in are examined by checking account detail budget report for all object codes 52* for revenues and all object codes 091* for expenditures, which must have function 5200.  All expenditure accounts with an object of 091* must have function 5200 as a segment. 

  8. Cont…Top 5 Working Budget Questions • 2. Should all Budgets balance for each fund? Yes, budgeted funds should balance, meaning budgeted revenues must agree to budgeted expenditures for each fund.  Funds 2 and 360 MUNIS Version 9.1 and 9.3make sure projected date range and actual date rangeare fixed and MUNIS Version 7.5start and actual completion dates of projects are entered. Improper dates cause these funds to be out of balance.

  9. Cont…Top 5 Working Budget Questions • 3. What happens if start and actual completion dates for projects are not entered? Correct project dates are important for any multi-year fund (Fund 2 – Special Revenue Fund and Fund 360 - Construction Fund) project.  Those dates determine whether the budgets are pulled into the budget files.  2013 projects should have start date of July 1, 2012 and Completion date of June 30, 2013. Entered on project master screen so they pull into the budget properly. An estimated completion date can be used, if needed. 

  10. Cont…Top 5 Working Budget Questions • 4. What steps should I take if a negative budgeted number appears? Run an account detail budget report for Funds 2 or 360 and/or object code listed, whichever is applicable. Review the negative budgeted numbersand correct project dates on project master screen to fix.

  11. Cont…Top 5 Working Budget Questions • 5. Is there a preliminary check you can run before you try to submit the Working budget files? No, there is no preliminary check. Budget projections should be manually reviewed and cleaned prior to submitting the files.

  12. After approval of the Working Budget • Monitor expenditures as approved in the school and district budgets • Submit Monthly reports to the local school board, council(s) and program managers to assure receipts and expenditures are meeting actual budgeted forecast. • Compare monthly activity on a line by line basis to the actual • The board may amend their working budget as necessary but NO resubmission is required, unless KDE request the district to resubmit.

  13. Working Budget Helpful Information • Please mail all questions to Finance mailbox @ finance.reports@education.ky.gov. (subject) line should state “Working Budget”,and a KDE representative will ensure that you get a response within 24 hours.

  14. Working Budget Helpful Information • Helpful Working Budget information is posted to our website@ http://www.education.ky.gov/kde/administrative+resources/finance+and+funding/school+finance/munis/user+guides/budget+general+ledger/afr+statewide+budget+general+ledger+reports.htm • Tentative & Working Budget Submission Guide • MUNIS Working Budget Report Guide (STW-GL-4) • Tentative and Working Budget Reports Frequently Asked Questions

  15. Clarification on Debt Service Fund 400 • Starting fiscal year 2013, districts must maintain a Debt Service Fund 400 for recording all debt service payments This includes payments made by others. example : SFCC on-behalf bond payment • Fund 410 SFCC Debt Service is a fund no longer to be used, and if amounts are budgeted in Fund 410, then this will cause state reports and submission to be rejected.

  16. Clarification on Debt Service Fund 400 • Principal and interest for capital leases may be recorded in the fund in which the capital lease is recorded in Fund 400. Capital lease principal and interest is not required by GAAP to be recorded in Fund 400. Examples: copier lease payments, KISTA bus payments • Use SFXX for SFCC projects

  17. Debt Service Fund 400 Helpful Information • Please mail all questions to Finance mailbox @ finance.reports@education.ky.gov. (subject) line should state “Debt Service”,and a KDE representative will ensure that you get a response within 24 hours.

  18. Debt Service Fund 400 Helpful Information • Helpful Debt Service Fund information such as local and SFCC bond issues coding is posted to our Website@ http://www.education.ky.gov/KDE/Administrative+Resources/Finance+and+Funding/School+Finance/Financial+Information/On+Behalf+Payments+Information.htm

  19. QUESTIONS QUESTIONS?

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