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SPRING AT A GLANCE & the Budget Amendment Process March 19, 2014

SPRING AT A GLANCE & the Budget Amendment Process March 19, 2014. Erin Fath, Assistant Director School Financial Services Team, DPI. Why “Spring at a Glance”?. Help you prepare for next few months – as it relates to the current and the upcoming fiscal years

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SPRING AT A GLANCE & the Budget Amendment Process March 19, 2014

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  1. SPRING AT A GLANCE & the Budget Amendment ProcessMarch 19, 2014 Erin Fath, Assistant Director School Financial Services Team, DPI

  2. Why “Spring at a Glance”? • Help you prepare for next few months – as it relates to the current and the upcoming fiscal years • To answer the basic questions that we receive throughout the year • To how the how data that we collect from school districts translates into: • Payment of State Aids (General Aid, Categorical Aids) • Calculation of Revenue Limit

  3. Who We Are – The SFS Team Division for Finance and Management Brian Pahnke Assistant Superintendent School Financial Services Robert Soldner, Director Education Administrative Director School Financial Services Erin Fath, Assistant Director Education Administrative Director Bill Evans IS Business Automation Specialist Victoria Chung Accountant Senior Gene Fornecker School Finance Auditor Bruce Anderson School Administration Consultant Dan Parizo IS Business Automation Specialist Michele Gundrum School Finance Auditor Carey Bradley School Administration Consultant Vacant IS Business Automation Specialist Brian Kahl School Finance Auditor Dan Bush School Administration Consultant Karen Kucharz Robbe School Administration Consultant

  4. How We Can Help You • Phone calls, e-mail • Web pages, webcasts, and tutorials • Late Breaking News (from SFS Home Page): http://sfs.dpi.wi.gov/sfs_late_breaking • Prior presentations: http://sfs.dpi.wi.gov/sfs_presentations • Newsletters and listserv notices [SFS Bulletins] • Repository of prior SFS Bulletins and Newsletters: http://sfs.dpi.wi.gov/sfs_mailings • If you are not already subscribed, you can do so at the following website: http://sfs.dpi.wi.gov/sfs_listservsubscribe • Conferences and workshops

  5. What You Should Do…Today! • Bookmark this website http://sfs.dpi.wi.gov/ • Make sure you are identified appropriately in the PI-1500 District Contacts Report. • Please ensure updates are made to reflect changes in staff or responsibilities.

  6. What We Will Cover Today … Processes you need to be aware of for the next few months: • The Current Fiscal Year (2013-14) • Debt Schedules, Open Enrollment, Pupil Count Changes / Membership Audit, reporting referenda results, miscellaneous year end procedures & reports, and current year Budget Amendments. • Next Fiscal Year (2014-15) • Budget for 2014-15 (estimating summer and September 2014 enrollments, revenue limits, district staff budgets)

  7. CURRENT FISCAL YEAR(2013-14)

  8. MARCH – Current FY 2013-14 Debt Schedule • Submit any changes to debt schedule within 10 days of the change (in the school finance reporting portal - “SAFR”) • New debt issued …. or • Changes to existing debt schedules. • Keeping SAFR updated will ensure consistency with the debt schedule data in the district’s Annual Report • Contact is Gene Fornecker: eugene.fornecker@dpi.wi.gov • For more information on debt, including reporting instructions, please refer to: http://sfs.dpi.wi.gov/sfs_debtrpt

  9. MARCH – Current FY 2013-14 Open Enrollment • Verify open enrollment students in OPAL to ensure accurate aid transfer in June. • Districts should review the status of both OE-In and OE-Out students • Contact the other district as soon as possible to resolve issues in timely manner • It may be necessary to make changes to the September & / or January pupil count reports as a result of OE adjustments. NOTE: Changes to the September 2013 pupil count report could have an impact on 2013-14 Revenue Limit calculation.

  10. MARCH/APRIL – Current FY 2013-14 Pupil Count Changes/Membership Audit • Count changes may be related to review of OE status or result of Membership Audit • District was selected for a 13-14 Membership Audit: the PI-1563 Pupil Count Reports will remain open until audit is received by district – changes must be made by the district, but with auditor’s agreement. • District was NOT selected for a 13-14 MembershipAudit: district must contact the SFS Team to get the PI-1563 Pupil Count Report opened to make changes: erin.fath@dpi.wi.gov Membership audits are due to SFS Team on May 1st

  11. APRIL/MAY – Current FY 2013-14 Report Referendum Results • Email the preliminary results to SFS Team the following morning • Send Board of Canvassers Report to SFS Team (email a PDF document or fax to SFS Team) • SFS Team Contact is Michele Gundrum: michele.gundrum@dpi.wi.gov • Referendum procedures & reporting information: http://sfs.dpi.wi.gov/sfs_ref1

  12. APRIL/MAY – Current FY 2013-14 Establish / Prepare for ‘Year End’ Procedures • Purchase Order Deadline – consider setting a deadline after which new purchase orders will not be processed • Annual Audit (July/August) – to prepare for the audit, districts should request a list of all items the auditor will need for the audit: • The auditors will examine district records to verify that: • The district financial statements represent the financial activity for the year ended June 30th • They are presented in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with state and federal requirements.

  13. APRIL/MAY – Current FY 2013-14 DPI Reports • Membership Audit – due May 1st • SAGE Classroom Expansion Claim – due May 15th • Group/Foster Care Report – report process begins in late May with letter from SFS Team to districts • Report Openings (in SAFR) in May: • PI-1547 – Pupil Transportation (Regular School Year) • PI-1505-Calendar – School Calendar Report

  14. SPRING – Current FY 2013-14 CURRENT YEAR BUDGET CHANGES

  15. SPRING – Current FY 2013-14 CURRENT YEAR BUDGET CHANGES • The original budget provides a best estimate, at the time of the budget adoption, of the school district’s resources & costs for a school year. • As the year progresses, districts may need to change budget appropriations and purposes: • State law requires that 2/3 board vote is required to change the budget [ss. 65.90(5)] • Also requires that any changes made shall be published in a Class 1 notice within 10 days after the change is made.

  16. SPRING – Current FY 2013-14 CURRENT YEAR BUDGET CHANGES • Do the two-thirds vote and publication requirements apply to every change to a district’s budget? • Statute [ss. 65.90(5)]: “ … the amounts of the various appropriations and the purposes for such appropriations state in a budget …” • Appropriation = $ amount • Purpose = function (in WUFAR) – think of as a major line item (not summary line) in the district’s budget • Note: Districts are advised to use a budget format which shows amounts appropriated for expenditures according to [WUFAR] functions, as function equates to purpose.

  17. SPRING – Current FY 2013-14 CURRENT YEAR BUDGET CHANGES • Pursuant to input from the WASB, school district officials and legal counsel, the DPI recommends that the two-thirds vote and publication are required if: • Any change in $ amount budgeted for a specific purpose, and / or • Any change to a purpose for which funds were appropriated Compared to what was presented in the line items of the district’s adopted budget. • Changes in subordinate line items from which the adopted budget evolved (but not detailed in the adopted budget) do not require the two-thirds vote & publication.

  18. SPRING – Current FY 2013-14 RESOURCES ON THE SFS WEB PAGES Budget Hearing and Adoption Requirements: http://sfs.dpi.wi.gov/sfs_6590req Budget Hearing Timelines http://sfs.dpi.wi.gov/sfs_6590time General Information: Budget Hearing & Adoption http://sfs.dpi.wi.gov/sfs_budhear *Links to the Budget Adoption Workbook (Blank Executable and Pre-Populated [2014-15 later in spring])

  19. SPRING – Current FY 2013-14 POP-QUIZ!! • When can the board make an official change to the budget? • Anytime as necessary • When must a change pass by 2/3 vote? • Change to appropriation • Change to purpose (i.e., line item in budget / function) • When should a change be published? • Within 10 days of the board action • EXTRA CREDIT: When should a budget change be recorded in your DPI Budget Report? And WHY? • As soon as practical, because that data is used for the July 1st Estimate of General Aid!

  20. UPCOMING FISCAL YEAR(2014-15)

  21. SPRING – Upcoming FY (2014-15) Transfer of Service (TOS) • The net TOS amount will affect the 2014-15 revenue limit calculation as an exemption to the district’s limit • Gather TOS information: • Establish contact with the person in your district who is responsible for this report • You will need information related to costs associated with transfers into your district, and … you may be asked for information by other districts (transfers out) • SFS Team Contact: Bruce Anderson (Bruce.Anderson@dpi.wi.gov) • General Information: http://sfs.dpi.wi.gov/transfer-service

  22. SPRING – Upcoming FY (2014-15) 2014-15 BUDGET PREPARATION Gather preliminary budget data and compile your initial full budget: • Staff should be completing individual / departmental budgets for the next school year (depends on district’s schedule) • Open enrollment will need to be estimated since all applications are not in / acted on at this time (deadline is April 30th; also, year-round exceptions). • 2013-14 fulltime OE Payment: $6,485 • 2014-15 fulltime OE Payment: $6,635 • The Pre-Populated 2014-15 Revenue Limit Worksheet is available at: http://sfs.dpi.wi.gov/sfs_revlimworksheet

  23. SPRING – Upcoming FY (2014-15) 2014-15 Pre-Populated Revenue Limit Worksheet At this time, the worksheet includes: • Base revenues (from 2013-14 worksheet) • September and Summer FTE for 2011, 2012 & 2013 • Per Pupil Adjustment: $75 (Line 4A) • Low Revenue Ceiling threshold: $9,100 (Line 4B) • Eligible carryover authority from 2013-14, if applicable (Line 8A) • High Poverty Aid, if applicable (Line 12B)

  24. SPRING – Upcoming FY (2014-15) 2014-15 Pre-Populated Revenue Limit Worksheet At this time, districts must estimate: • September and Summer FTE for 2014 • Exemptions to revenue limit: • Recurring – TOS, Transfer of Territory, Federal Impact Aid loss, Recurring Referendum (Lines 8B-8D) • Non-Recurring – Non-Recurring Referendum, Energy Efficiency, Refunding/Rescinded Taxes, Uncounted Prior-Year Open Enrollment Pupils (Lines 10A-10E) NOTE: Declining Enrollment auto-calculates upon entry of 2014 FTE data • Equalized Property Values (Lines 17A & B) – it is not necessary at this time for purposes of estimating revenue (Line 11) • These values will come to DPI on October 1st; for now, districts can use the values from 2013-14 worksheet

  25. SPRING – Upcoming FY (2014-15)

  26. SPRING – Upcoming FY (2014-15) 2014-15 BUDGET PREPARATION • School boards are required to approve a “proposed” budget for presentation at the budget hearing. • The Board shall adopt an “original” budget after the hearing but no later than the meeting in which the levy is set (levy must be set by November 1st). • Review and prepare for the annual meeting as well as meeting notice requirements. • Remember, DPI provides samples that the district can utilize for this process which are available at http://sfs.dpi.wi.gov/sfs_budhear (Budget Hearing & Adoption Workbook)

  27. Spending Authority Prior to Passage of Original Budget • s. 120.13(33) provides spending authority to the school board to meet immediate expenses of operating & maintaining the public instruction in the district during the period between July 1st and the final adoption of a budget by the school board after the budget hearing.

  28. Original Budget Adoption • The adopted budget identifies the anticipated revenue and proposed expenditures which the board has agreed to at the time of passage. • Budget detail is based upon the Wisconsin Uniform Financial Accounting Requirements (WUFAR) hierarchy of accounts [purpose = function] • DPI provides a recommended budget publication, adoption and change format, available at: http://sfs.dpi.wi.gov/sfs_budhear(Budget Hearing & Adoption Workbook)

  29. Original Budget Adoption • 65.90(1) requires districts to formulate a budget and hold public hearings • 65.90(2) identifies what needs to be included • 65.90(3) requires districts to publish a budget summary • 65.90(3)(b) identifies what needs to be included in the “proposed” budget summary The published budget summary is a “proposed” budget

  30. Original Budget Adoption • 65.90(4) identifies the timelines for holding the public hearing on the “proposed” budget • 120.12(3)(a) and (c) requires the board to set a levy on or before Nov 1st. The budget adopted after the public hearing but on or before November 1st is considered the first “official” budget • 65.90(5) clarifies that 2/3 board vote is required to change the budget

  31. THANK YOU FOR THIS OPPOTURNITY TO PRESENTQuestions??? • Bruce Anderson, Consultant 608-267-9707 • Carey Bradley, Consultant 608-267-3752 • Dan Bush, Consultant 608-267-9212 • Karen Kucharz, Consultant 608-266-3464 • Gene Fornecker, Auditor 608-267-7882 • Michele Gundrum, Auditor 608-267-9218 • Brian Kahl, Auditor 608-266-3862 • Erin Fath, Asst. Dir. 608-267-9209 • Bob Soldner, Director 608-266-6968

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