News you can use

1. News you can use Kentucky Department of Education Division of District Support Auditor Training - June 3, 2014

2. LaTonya Bell, MBA, CSFM Administrative Branch Manager Division of District Support District Financial Management Branch latonya.bell@education.ky.gov Phone: (502) 564-3846, ext. 4418

3. News you can use • Changes to Indirect Cost Rate Process • Updated KY School District Insurance Guide • Updates to Affordable Care Act Guide • Booster Group Resources

4. Indirect cost calculations Fiscal Year 2015 Rates

5. Federal review • Federal review of rate methodology going on now • Errors already found: • Apply the rates from July 1 – June 30 • KBE must approve • Adjustment opportunity • More changes could be required

6. 1. Apply the ratesJuly 1 – june 30 Rates must be applied the same way they are calculated

7. 1. Apply the ratesJuly 1 – june 30 If a district used the FY 13 rate for Jul, Aug, or Sept 2013 the district must correct any overcharge • Calculate the indirect costs using the FY 14 rate for those months • Reduce future indirect costs in FY 14 to correct the total charged

8. 2. KBE must approve the rates • Agreement is between USDE and KDE • Local boards should recognize the rate but approval is not required

9. 3. Adjustment opportunity • Impossible to get every district calculation correct simply by applying the account structure • Districts must review and certify the rates by affirming adjustment amounts, if any

10. HOW Do districts KNOW WHAT ADJUSTMENTS TO MAKE? • Results of districts’ calculation must comply with OMB Circular A-87 http://www.whitehouse.gov/omb/circulars_a087_2004

11. HOW DO Districts make ADJUSTMENTs? • “Instructions for Indirect Cost Adjustments for Calculating Indirect Cost Rates” • KDE website

12. What if a district has no ADJUSTMENTs? • District must log into the system anyway • Check box

13. certification • By completing the adjustment form: • Certify accuracy

14. Indirect Cost Information • Indirect Cost Guide and other useful resources are located on KDE’s website at www.education.ky.gov . Click on the following links: • District/School Support • Overview • District Financial Reporting • Fund Balances, Revenues and Expenditures, COA, and Indirect Cost Rates, etc….

15. Kde contact information Susan Barkley Karen Conway Assistant Director Educational Financial Analyst Division of District Support Division of District Support 15th Floor, 500 Mero Street 15thFloor, 500 Mero Street Frankfort, KY 40601 Frankfort, KY 40601 Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. 4435 susan.barkley@education.ky.govkaren.conway@education.ky.gov

16. Updated insurance guide

17. Revised Section 1 • Procurement • Multiyear Awards • Insurance Consultant • Agent of Record • Step by step guide on page 10 • “Are you a Bid Law or MPC?”

18. Revised Sections 2, 3, 4 & 6 • Auto and Fleet Insurance • General Liability Insurance • Educators’ Legal Liability Insurance • Coverage Amount • Unemployment Insurance

19. Revised Sections 7 & 9 • Workers’ Compensation Insurance • Student Accident Insurance

20. Revised Insurance Guide • Kentucky School District Insurance Guide Revised April 2014 is located on KDE’s website at www.education.ky.gov . Click on the following links: • District/School Support • Overview • District Financial Reporting • Finance Officer Training, Insurance Guidelines, etc….

21. Kde contact information Susan Barkley Renee Thomas Assistant Director Educational Financial Analyst Division of District Support Division of District Support 15th Floor, 500 Mero Street 15thFloor, 500 Mero Street Frankfort, KY 40601 Frankfort, KY 40601 Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. 4454 susan.barkley@education.ky.govrenee.thomas@education.ky.gov

22. Updates to Affordable care act guide

23. Affordable care act • Transition Relief for 2015: • Large Employer Status • Substantial Compliance • Clarification of full-time status

24. Large employer • 2015 = 100 or more FT & FTEs • 2016 = 50 or more FT & FTEs • Most KY school districts are large

25. Substantial compliance • Threshold before penalty assessment: • 2015 = 70% of full-time employees • 2016 = 95% or no more than 5 full-time employees • Penalty is • Number of FT employees minus 30 • Multiplied by $167 per month

26. Clarification of full-time status • Hours of Services will not include: • Hours worked as bona fide volunteers • Seasonal employees < 6 months

27. Revised Affordable care act implementation Guide • Affordable Care Act Implementation Guide Revised May 2014 is located on KDE’s website at www.education.ky.gov . Click on the following links: • District/School Support • Overview • District Financial Reporting • Health and Life Insurance Benefits and Flexible Spending Accounts

28. Kde contact information Susan Barkley Melissa Sullivan Assistant Director Educational Financial Analyst Division of District Support Division of District Support 15th Floor, 500 Mero Street 15thFloor, 500 Mero Street Frankfort, KY 40601 Frankfort, KY 40601 Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. 4415 susan.barkley@education.ky.govmelissa.sullivan@education.ky.gov

29. Booster Resources

30. Parent Booster USA • Can gain tax-exempt status under their umbrella • No Form 1023 • No IRS filing fee • Support, training

32. KDE Website • Redbook • FAQs • Videos

33. Redbook information • Accounting Procedures for School Activity Funds is located on KDE’s website at www.education.ky.gov . Click on the following links: • District/School Support • Overview • District Financial Reporting • Accounting Procedures for School Activity Funds

35. Kde contact information Susan Barkley Assistant Director Division of District Support 15th Floor, 500 Mero Street Frankfort, KY 40601 Phone: (502) 564-3846, ext. 4437 susan.barkley@education.ky.gov