Maximizing the Use of LEA Financial Software to Assist CNP Directors

1. Maximizing the Use of LEA Financial Software to Assist CNP Directors Kim McPherson, C.P.A. November 14, 2013

4. Disconnects and Bad Blood • CSFOs and CNP Directors • Resentment (Pass Thru and Indirect Cost) • Communication Issues • Personality Differences • Management Differences We have to work together for the good of the district!

5. What can you do for ME?

6. What do you expect…. • From your CSFO? • A paycheck! • Software to support financial transactions • Account for your revenues • Account for your expenditures • Account for your assets – cash/inventory/receivables • Account for your liabilities – accounts payable • Support for compliance/audit issues

7. What do CSFOs expect… • From CNP (all) Directors • Take care of your program • Prepare and monitor your budget • Provide adequate documentation for transactions • Monitor your assets and liabilities • Qtrly communication of MPLH, ala carte sales, participation rates, etc.

8. LEA Financial Software • McAleer Computer Associates, Inc. • COBOL • NextGen (windows) • CSI Technology Outfitters • Harris Computer Corporation • ? Dare we hope for one software package to provide all CNP and CSFO needs?

9. Budget Development • Revenue and Expenditures • Budget Analysis Report – Next Year Worksheet • General Ledger Detail History • Personnel (Wages and Fringes) • Budget Works – Salary Work Table Report • Pass Through Worksheet prepared from this report • Indirect Costs vs. Direct Costs

10. School Food Interface • SFI Post Journal Entries • Daily Sales • Accrued Receivables (Reimbursement) • Cash Receipts (Reimbursement)

11. Purchases/Expenditures • Purchase Orders • Issue for food from State bid? • P.O. As of Date (Open Purchase Orders) • Summary Expenditure Report by CCTR • Salary and Benefits by G/L (P/R Transfer) • Budget Analysis Report • Indirect Cost – Monthly invoice produced after financials are uploaded to ALSDE • Distribution of Pooled Expenditures (ADP?)

12. Assets • Cash • Short and Over – Trial Balance, adjust annually • To Largest % of Sales • Bank Reconciliation Report • Receipts Deposit Listing • Receivables • Inventory – perpetual?

13. Liabilities • Accounts payable register • A liability exists from the time you receive goods or services, regardless of whether invoice has been received or paid. • Most school districts enter invoices and cut checks immediately thereafter, leaving no accounts payable on financial statements. • Exception usually at year end. • Interfund liability for indirect cost due to General

14. Compliance/Audit Issues • Allowable Costs (test of expenditures) • Eligibility (test of applications) • Equipment Mgmt (test of fixed assets) • Procurement (test of bids) • Reporting (test of reimbursement claims) • Verification of Free and Reduced Price Applications (test of verification process) • Inventory (test of inventory calculations)

15. Other helpful hints • Report Development • The Grid • Year End • Pass Through Reconciliation to Actual – Salary and Benefits by G/L Report • Indirect Cost Final Report- ALSDE website • Monitor • Cash/Check breakdown vs. Bank Deposit (in tact!) • Production Reports vs. Inventory Counts • Record Retention Schedule (ADAH)

16. Questions?