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The Other Funds

The Other Funds. Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track. Brian Kahl DPI School Finance Auditor Bob Soldner SFS Team Director March 2014. Agenda. The Main Funds The Other Funds 21: Special Revenue Trust Fund

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The Other Funds

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  1. The Other Funds Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track Brian Kahl DPI School Finance Auditor Bob Soldner SFS Team Director March 2014

  2. Agenda • The Main Funds • The Other Funds • 21: Special Revenue Trust Fund • 41: Capital Expansion Fund • 60: Agency Fund • 72: Private Purpose Trust Fund • 73: Employee Benefit Trust Fund • 80: Community Service Fund • 90: Package & Cooperative Program Fund "The Other Funds" - WASBO Acct Conference March 2014

  3. The Main Funds • General Fund • Special Education • Debt Service • Non-Referendum • Referendum • Capital Projects • Food Service F-10 F-27 F-38 F-39 F-49 F-50 "The Other Funds" - WASBO Acct Conference March 2014

  4. The Other Funds F-21 • Special Revenue Trust Fund • Capital Expansion Fund • Agency Fund • Private Purpose Trust Fund • Employee Benefit Trust • Community Service Fund • Package & Cooperative Program Fund • Packaged Services (CESA) • Other Package & Coop Pgm F-41 F-60 F-72 F-73 F-80 F-90 F-91 F-99 "The Other Funds" - WASBO Acct Conference March 2014

  5. Fund 21 • Account for trust funds that can be used for district operations • Sources • Gifts • Donations from Private Parties • Expended pursuant to donor specifications, if any • May carry a fund balance "The Other Funds" - WASBO Acct Conference March 2014

  6. Fund 21 How to use this fund? • District or staff controlled “activity” accounts • Fund raisers • Targeted donations • Tournaments or Competitions "The Other Funds" - WASBO Acct Conference March 2014

  7. Fund 21 • Permanent Fund • Should be used to report resources that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs • Resources should benefit the government • Need to keep the corpus intact "The Other Funds" - WASBO Acct Conference March 2014

  8. Fund 21 District/Staff “activity” funds • Activity groups where staff decides how to raise funds and how to appropriate them • Athletic Fundraisers • School Fundraiser (Example – Field Trips) • Band Uniforms • School Musical "The Other Funds" - WASBO Acct Conference March 2014

  9. Fund 21 Why would you use Fund 21 instead of Fund 10? • Shared Cost (Deductible Receipt if in Fund 10) • Carry balances from year to year • Comply with donor wishes if any restrictions placed on use of funds "The Other Funds" - WASBO Acct Conference March 2014

  10. Fund 21 Accounting Transactions • Ledger Accounts • Revenues • Expenditures • Balance Sheet Accounts • Assets • Liabilities • Equity (Fund Balance) "The Other Funds" - WASBO Acct Conference March 2014

  11. Fund 21 More information: • When to Use Fund 21 http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc • WIAA and Other Tournaments and Competitions http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc "The Other Funds" - WASBO Acct Conference March 2014

  12. Fund 60 Agency Fund • Used primarily to account for assets held by the district on behalf of pupil organizations • Parent organization funds may be accounted for here • May not be a separate 501(c)(3) "The Other Funds" - WASBO Acct Conference March 2014

  13. Fund 60 Agency Fund • Only balance sheet accounts (assets & liabilities) are reported in Budget and Annual reports But… • Records of receipts and disbursements must be maintained locally and will be examined during audit "The Other Funds" - WASBO Acct Conference March 2014

  14. Fund 60 Pupil Organizations • Funds are held by the district for the benefit of the student organizations • District has a fiduciary responsibility • Students are the decision makers on how to raise money and how to spend it • Staff advisers only advise, do not decide "The Other Funds" - WASBO Acct Conference March 2014

  15. Fund 60 Pupil Organizations • Student Council • Class of 20XX • National Honor Society • Yearbook • Drama Club • Foreign Language Club • Other Clubs "The Other Funds" - WASBO Acct Conference March 2014

  16. Not Fund 60 • Activities where staff make the decisions are District Activities and accounted for elsewhere • Examples: • Athletics • Musical • Band Uniforms • Field Trips • Shop Class • Sunshine Club / Coffee Fund* • Should NOTappear anywhere on the district’s books. These are not district funds. "The Other Funds" - WASBO Acct Conference March 2014

  17. Fund 60 Accounting Transactions • Assets • 711000: Cash • 712000: Investments • Liabilities • 814000: Due to Student Organizations • Equity • None "The Other Funds" - WASBO Acct Conference March 2014

  18. Fund 60 Parent Organizations • District may establish agency funds for parent organizations • Bank accounts in the name of the district • Same policies/procedures as for student organizations • Liability Acct 818000: Due to Parent Organizations • Parent organizations may not use the district’s tax ID number • Parent organizations may not be a separate 501(c)(3) "The Other Funds" - WASBO Acct Conference March 2014

  19. Fund 60 More information: • Agency Fund Guidelines document http://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc • Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf "The Other Funds" - WASBO Acct Conference March 2014

  20. Fund 41 Capital Expansion Fund • Projects financed with a tax levy per Wis. Stats. 120.10(10m) • Levy is within the Revenue Limit • Restricted to capital expenditures related to buildings and sites • Not equipment • Not furnishings • Requires approval at Annual Meeting "The Other Funds" - WASBO Acct Conference March 2014

  21. Fund 41 Eligible expenditures defined: • For acquiring and remodeling buildings and sites, and • Maintenance or repair expenditures that • Extend or enhance the service life of building, building components, sites and site components "The Other Funds" - WASBO Acct Conference March 2014

  22. Fund 41 Why use Fund 41? • Allows for depreciation of expenses over length of time • In year of spending - Reduces shared costs in aid formula • Can reduce the impact of negative tertiary aid for districts in that position • Smoothes out aid for positively aided districts. "The Other Funds" - WASBO Acct Conference March 2014

  23. Fund 41 Disadvantage • Restricts use of limited revenues to qualifying capital expansion projects • Cannot be redirected to use for general operations or routine maintenance • Creates additional accounting / reporting requirements "The Other Funds" - WASBO Acct Conference March 2014

  24. Fund 41 Amortizing Expenditures Over Time "The Other Funds" - WASBO Acct Conference March 2014

  25. Fund 41 A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar Click on: Accounting Issues and Coding Examples or go directly to: http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt "The Other Funds" - WASBO Acct Conference March 2014

  26. Fund 72 Private Purpose Trust Fund • Account for gifts and donations specified for the benefit of private individuals and organizations not under the control of the school board • Board acts as Trustee of account • Example: Scholarship Fund • Expenditures are made pursuant to donor specifications "The Other Funds" - WASBO Acct Conference March 2014

  27. Fund 73 Employee Benefit Trust Fund • Used to account for resources held in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans • Must be legally established in accordance with state statutes, federal law, and IRS requirements • Legally irrevocable trust "The Other Funds" - WASBO Acct Conference March 2014

  28. Fund 73 Employee Benefit Trust Fund • Created as a mechanism for districts to fund post-employment benefit obligations • Districts not required to use this • May opt to “pay as you go,” however, that does not help reduce the long-term liability • Requires actuarial study to determine funding levels "The Other Funds" - WASBO Acct Conference March 2014

  29. Fund 73 Employee Benefit Trust Fund • District makes payments to the trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations. • Fund 73 pays the retiree benefits "The Other Funds" - WASBO Acct Conference March 2014

  30. Fund 73 Why use Fund 73? • To reduce the district’s long-term unfunded obligations. • Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met. "The Other Funds" - WASBO Acct Conference March 2014

  31. Fund 73 More information: • Employee Benefit Trust Fund webpage http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund • Employee Benefit Fund Requirements webpage http://sfs.dpi.wi.gov/files/sfs/doc/EBFRequirements.doc • Fund 73 OPEB Transaction Accounting Samples http://sfs.dpi.wi.gov/files/sfs/Accounts%20to%20use%20for%20Fund%2073%20trust.doc "The Other Funds" - WASBO Acct Conference March 2014

  32. Fund 80 • 2013 Wisconsin Acts 20 & 46 • District Levy Authority is Limited in 2013-14 & 2014-15 • Hold a Referendum to Exceed Levy Limit • Reporting Requirements • District’s Website • District Complete DPI Fund 80 Survey • DPI Report to Legislature (12/1/14) "The Other Funds" - WASBO Acct Conference March 2014

  33. Fund 80 Community Service Fund • Used to account for all activities that have the primary function of serving the community (not public school programs) • District may adopt a separate levy, outside revenue limits, for this Fund • Does not impact aid calculation "The Other Funds" - WASBO Acct Conference March 2014

  34. Fund 80 Statutory References • School Board authority to establish • Wis. Stats. 120.13(19) • Budget reporting requirements • Wis. Stats. 65.90 • Adoption of a separate levy • Wis. Stats. 120.10(8) • Wis. Stats. 120.12(3) "The Other Funds" - WASBO Acct Conference March 2014

  35. Fund 80 Community Service Fund • Access to activities cannot be limited to pupils enrolled in the district’s K-12 education programs • Excluded are any academic subjects and extra-curricular activities available only to pupils enrolled in the district "The Other Funds" - WASBO Acct Conference March 2014

  36. Fund 80 Community Service Fund • Examples: • Community softball leagues • Elderly nutrition programs • Non-Special Educ pre-school • Day care services • Evening community swimming and pool operations • Adult education "The Other Funds" - WASBO Acct Conference March 2014

  37. Fund 80 Allowable Expenditures • Non-instructional • May include cost allocations for salaries, benefits, purchased services, etc. • Directly related to the activity included in Fund 80 "The Other Funds" - WASBO Acct Conference March 2014

  38. Fund 80 Questions to Ask • Is the program outside the usual instructional program? • Is the program available to everyone in the community (age appropriate)? • Is the program fee supported? If “YES,” then the program may be appropriately included in the Community Service Fund "The Other Funds" - WASBO Acct Conference March 2014

  39. Fund 80 Do NOT recommend including • District/Building administration • Facilities used by the instructional or extra-curricular program • Welfare/safety expenditures related to K-12 instructional or extra-curricular program • Police Liaison Officers • Crossing Guards "The Other Funds" - WASBO Acct Conference March 2014

  40. Fund 80 Pro-rating of other costs • We do not recommend costing these costs in Fund 80 UNLESS they are directly associated and fully documented: • Custodial costs • Security costs • Utility costs "The Other Funds" - WASBO Acct Conference March 2014

  41. Fund 80 Key Question to Ask • If the program in Fund 80 ended, would some costs shift to Fund 10? • Custodial costs: If Fund 80 program ended, would there be a reduction in custodial hours? • If YES, then appropriate for Fund 80. • Utilities: Would utilities be reduced if the program ended, or shifted to Fund 10? • If REDUCED, then appropriate for Fund 80. "The Other Funds" - WASBO Acct Conference March 2014

  42. Fund 80 Construction and Debt Service • Recommend not charging construction or related debt service costs for education facilities even if it may be used by the community • Exception: facility is not used for instructional purposes at all, only for community recreation. "The Other Funds" - WASBO Acct Conference March 2014

  43. Fund 80 Infrastructure Costs • Recommend that construction and/or infrastructure maintenance costs not be accounted for in Community Service Fund even if used at times by the community • Examples • Sidewalks • Parking Lots "The Other Funds" - WASBO Acct Conference March 2014

  44. Fund 80 More information: • Community Service Fund Information webpage http://sfs.dpi.wi.gov/sfs_comm_serv • Community Service Fund presentation http://sfs.dpi.wi.gov/files/sfs/ppt/comm_ser_fnd.ppt "The Other Funds" - WASBO Acct Conference March 2014

  45. Fund 90 Package and Cooperative Program Fund • Used to account for expenditures made by a host district for programs and services offered to other districts • Fund 91: Through a CESA • Fund 99: Others "The Other Funds" - WASBO Acct Conference March 2014

  46. Fund 91 Host District • CESA acts as fiscal agent for the districts in the cooperative • Other districts pay CESA their share • Host district pays CESA for its share • Expenditure to F-10 • CESA reimburses host district for all program expenditures • No fund balance allowed "The Other Funds" - WASBO Acct Conference March 2014

  47. Fund 99 Fiscal Agent District • District that acts as the fiscal agent for the districts in the cooperative • Other districts pay host district their share • Host district transfers from F-10 its share of costs • Revenue to F-99 • Expenditure to F-10 • Pays all expenditures for program • No fund balance allowed "The Other Funds" - WASBO Acct Conference March 2014

  48. Fund 99 Examples of Cooperative Services • Hockey Co-op • Swim Team Co-op • Transportation Services • Business Education Program • REQUIRES completion of a “66:30 Agreement” Wis. Stats. 66.0301 "The Other Funds" - WASBO Acct Conference March 2014

  49. Fund 90 Package & Cooperative Services • NOTE: Shared Special Education services are recorded in F-27 not in F-90. "The Other Funds" - WASBO Acct Conference March 2014

  50. Fund 90 More information: • Cooperative Service Agreement 66.0301 webpage http://sfs.dpi.wi.gov/sfs_coop_agree "The Other Funds" - WASBO Acct Conference March 2014

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