SPRING FINANCE WORKSHOP At the WASBO Accounting Conference
March 20, 2013 DPI School Finance Team http://sfs.dpi.wi.gov/
Slide 2
UPDATES: Budget Proposal Energy Efficiency Exemption OPEB
Indirect Cost Combined Report Security System Update Updated
Reports Transfer of Service, Transportation, & Foster/Group
Home Odds and Ends Membership Audit of Summer School Fees, Common
School Fund, Referendum Information
Slide 3
2013-15 Governors Biennial Budget Proposal School Finance
Items
Slide 4
Governors Biennial Budget Overview This presentation will
address the Governors proposal for the states 2013-15 Biennial
Budget regarding: Revenue Limits General State Aids Expansion of
the Independent Charter Program Expansion of the Parental Choice
Program New Special Needs Scholarship Program Categorical Aids
including Performance Based Funding Grants Other K-12 Education
related items from a School Finance perspective 4
Slide 5
Budget Development Timeline The Governor introduced his Budget
Proposal in February, and now The Joint Committee on Finance will
review and can modify budget provisions (Spring) Then both houses
of the Legislature will pass their own versions of a Budget
Proposal Conference Committee will work out differences between the
House & Senate versions and send to the Governor for approval
(possibly with vetoes) likely in June or possibly July of 2013
5
Slide 6
Budget Development Timeline While there has already been news
about proposed changes to the Governors proposal by legislators, we
do not know what the Legislature will ultimately send to the
Governor for his approval. So at this time, we will present
information on the Governors Proposal. 6
Slide 7
Governors Biennial Budget Overview Summary of School Finance
Related Proposals Provides no Per Pupil increase for Revenue Limits
Increases state General/Equalization Aid by 1% annually No changes
for most existing categorical aid programs. New School Performance
Incentive categorical aid program. New Special Needs Scholarship
Program. Increases per pupil funding for the Milwaukee and Private
School Parental Choice programs; expands the Private School
Parental Choice Program (currently just Racine is eligible)
Increases per pupil funding and expands the Independent Charter
Program (creates new Charter Oversight Board) No changes to the
School Levy Tax Credit/First Dollar Credit 7
Slide 8
State Support for K-12 Education under the Governors 2013-15
Proposed Budget 8 Appropriations and Percent Change from the Prior
Year: ($ in Millions) Category2012-132013-142014-15 General
Equalization Aids$4,293.7$4,336.6 (1%)$4,380.0 (1%) High Poverty
Aid$ 16.8$ 16.8 (0%) $ 16.8 (0%) Categorical Aids$ 653.9$ 612.0
(-6.4%*) $ 677.9 (10.8%) School Levy Tax Credit$ 897.4$ 897.4 (0%)
$ 897.4 (0%) State Residential Schools$ 11.2$ 10.8 (-9.6%)$ 10.8
(0%) Statewide Totals$5873.0$5,873.6 (0%) $5,982.9 (1.9%) *Reflects
removal of $42.5 M for one-time Per Pupil Adjustment Aid.
Slide 9
Revenue Limits The Governors Budget does not change current law
with respect to Revenue Limits for the 2013-14 or 2014-15 school
years: $0 per pupil adjustment in both years Low Revenue Ceiling
threshold would increase from $9,000 to $9,100 for 2013-14 &
2014-15 The Base Hold Harmless exemption (line 7B) will revert to
its original mechanism (next slide) No changes to any existing
exemptions to the revenue limit 9
Slide 10
Revenue Limits Base Hold Harmless exemption review: Had been
altered by the Legislature for 2011-12 & 2012-13 but will
return to normal for 2013-14 Ensures that a districts revenue
authority, after the Per-Pupil and Low Revenue Ceiling adjustments
are made, but prior to any exemptions, is not less than the Line 1
Base Revenue on the worksheet. EXAMPLE calculation at the end of
this presentation for your reference EXAMPLE 10
Slide 11
Revenue Limits Base Hold Harmless exemption review: Recall that
the Base Hold Harmless exemption is a non-recurring exemption as
such, it will be removed from the subsequent years base revenue
Districts that qualify for the Base Hold Harmless exemption that
also have declining enrollment will be able to utilize the
Declining Enrollment Exemption (which is also a non-recurring
exemption) 11
Slide 12
General State Aid The Governors Budget provides: Increases of
1% annually in the appropriation for General (Equalization) School
Aids: $42.9 M in FY14 and $43.4 M in FY15 No changes to the
Equalization Aid formula itself Increases in district-specific
lapses for expanded Choice program and for the all-district lapse
for Independent (2r) Charter program come out of this General Aid
increase. Steady funding for the High Poverty Aid Program ($16.83
M) District allocations will change based on 2012 data for Free
& Reduced Price Lunch eligibility and 2012-13 membership. High
Poverty Aid will continue to be treated as General Aid, i.e.,
reduces the receiving districts levy. 12
Slide 13
Independent Charter Program Existing Independent Charter
Program (MPS & Racine) : Per pupil payment increases to $7,852
for FY14 and $7,931 for FY15 (1% annual increases) Estimates
enrollments at 8,600 FTE in FY14 and 9,600 FTE in FY15 Increases
total cost estimate from $62.2 million in FY13 to $67.5 million in
FY14 and $76.1 million in FY15, based on per pupil payment and
estimated enrollments above Retains current law method of paying
for Independent Charter Program costs by applying a proportionate
reduction to all districts General Aid payment 13
Slide 14
Expansion of Independent Charter Program New Provisions
Independent (2r) Charter Program: Creates a Charter School
oversight Board responsibility for approving new independent
charter school authorizers Independent charter schools may be
established only by contract and must be operated by a Charter
School Governing Board* New independent charter schools would be
eligible for the same per pupil payment as under the existing
program The costs of new independent charter schools coming in
under this expansion would be paid for in the same manner is the
existing program a proportionate deduction to General Aid payment
for all public school districts * Except for existing independent
charter school authorizer, which may continue to operate a charter
school that has already been established. 14
Slide 15
Expansion of Independent Charter Program New Provisions
Independent (2r) Charter Program: Removes current law restrictions
on who may attend an independent charter school
(location/residence). Permits a public school district to prohibit
a resident pupil from attending an independent charter school
unless: 1.The districts (aid) membership is 4,000 FTE or greater,
and 2.Two or more of the public schools in the district were
placed, in the same year, a performance category of either fails to
meet expectations or meets few expectations based on accountability
report issued by DPI (i.e., the School Report Cards) 15
Slide 16
Expansion of Independent Charter Program New Provisions
Independent (2r) Charter Program: The proposal specifies how
charter schools may prioritize applications, testing requirements,
as well as certain requirements for the DPI Non-fiscal, operational
type questions regarding the expanded Choice program should be
directed to the DPI School Management Services Team:
http://sms.dpi.wi.gov/ 16
Slide 17
Parental Choice Program Existing Parental Choice Programs
(MPS/Racine): Per pupil payment remains at $6,442 for FY14 and for
FY15, increases to $7,050 for K-8, and $7,856 for high school
pupils Estimates FY14/FY15 enrollments at 25,500/27,000 FTE for MPS
and 750/1,000 FTE for Racine Increases total cost estimate from
$154 million in FY13 to $169 million in FY14 and $201 million in
FY15, based on per pupil payment and estimated enrollments above
Retains current law district share requirement: 38.4% of estimated
costs is deducted from districts general aid payment 17
Slide 18
Expansion of Parental Choice Program As of FY14, expand
eligibility to districts in which : Membership of at least 4,000
FTE (i.e., aid membership) Two or more of the public schools in the
district were placed, in the same year, a performance category of
either fails to meet expectations or meets few expectations, based
on an accountability report issued by DPI (i.e., the School Report
Cards) At least 20 pupils in a district must have applied to attend
a participating private school under the program 18
Slide 19
Expansion of Parental Choice Program As under the existing
Parental Choice Program: Newly eligible private schools would
receive a per pupil payment of $6,442 in FY14 & $7,050
(K-8)/$7,856 (HS) in FY15 Pupils participating in the Choice
program would not be counted for purposes of general aid or revenue
limit membership by the resident district New Choice districts
would pay for 38.4% of the cost of the choice vouchers awarded to
resident pupils via a deduction to the districts General Aid
payment The deduction for the Parental Choice Program is applied to
the October 15 th Aid Certification, thus Districts with a
deduction from General Aid for Choice pupils would have the ability
to levy for that aid deduction 19
Slide 20
Expansion of Parental Choice Program Other Provisions: Pupils
family income =< 300% of the Federal Poverty Limit Participating
private school must be accredited or pre- accredited by August 1st
prior to begin of school year Statewide enrollment limits of 500 in
FY14 and 1,000 in FY15 (does not provide specifics as to how DPI is
to manage statewide enrollment limits) The proposal specifies how
private schools may prioritize applications, testing requirements,
as well as certain requirements for the DPI Non-fiscal, operational
type questions regarding the expanded Choice program should be
directed to the DPI School Management Services Team:
http://sms.dpi.wi.gov/ 20
Slide 21
NEW: Special Needs Scholarship Program Beginning in FY14, a
child with a disability may receive a scholarship to attend a
school of their choice, including a: Public school outside the
pupils district of residence Charter school Private school The
following conditions must be met: 1.The school has notified DPI of
intent to participate and has accepted the pupil 2.A private school
must be approved by DPI or accredited 3.An IEP has been completed
for the child 4.In the previous school year, the child attended a
public school, a charter school, a private school under the
Parental Choice Program, or did not attend school in WI 21
Slide 22
NEW: Special Needs Scholarship Program Under the Governors
proposal: DPI is required to review the pupils IEP and determine
the scholarship amount, based on formula established in the
proposal (lesser of state average by formula, or actual cost to the
school as with existing choice program). Scholarship pupils would
be counted by the district of residence for purposes of revenue
limits & aid membership. A reduction would be made to the
General Aid payment of the resident district in an amount equal to
the scholarships awarded to all the resident pupils of that
district. This reduction in aid would lapse to the States General
Fund. The scholarship would be paid directly to the school that the
pupil attends from a separate appropriation in the States General
Fund. In effect, the aid reduction to the resident district is used
to offset the costs of the scholarships. When a pupil receives a
scholarship, the pupils district of residence is directed to count
the scholarship amount towards Federal Maintenance-of-Effort
requirements 22
Slide 23
NEW: Special Needs Scholarship Program Under the Governors
proposal: Pupils family is not required to meet an income test
Number of scholarship recipients in a given school year may not
exceed 5% of the number of children with disabilities residing in
Wisconsin in the previous school year. Pupil would be entitled to
receive the scholarship as long as the pupil attends an eligible
school, until the pupils graduates from High School or through the
end of the term in which the pupil turns 21 (whichever comes
first). Transportation if pupil uses scholarship to attend: Private
School resident district may be required to provide transportation
(existing ss. 121.54 applies) Public School if transportation is
specified in the pupils IEP, the district of attendance is required
to provide transportation; if not, parent is responsible 23
Slide 24
NEW: Special Needs Scholarship Program This presentation has
touched on the issues pertaining to the financial implications of
the proposed Special Needs Scholarship Program, however There are
many other issues involved with this proposed program, including:
Responsibilities of DPI, the district or charter/private school of
attendance and the resident school district Rights of the pupil
receiving the scholarship These issues are still under review by
the Departments School Management Services Team and Special
Education Team. 24
Slide 25
Existing Categorical Aid Programs With a few exceptions,
funding for Categorical Aid programs remain at current levels for
both years: Special Education, Transportation, SAGE, Sparsity,
Bilingual- Bicultural programs, Nutrition programs, Gifted &
Talented programs, 4K Start-up Grants no funding changes School
Library Aid: reduced in FY14 then increased in FY15, based on
estimate of available revenues: FY13: $37 million FY14: $32 million
FY15: $34 million Transportation Reimbursement : increases the rate
for pupils transported over 12 miles from $220 to $275 (funded w/in
base) Per Pupil Adjustment Aid: received by districts for 2012-13
(up to $50/pupil, based on utilization of levy authority) is
eliminated [had been created as a one-time aid program] 25
Slide 26
NEW: School Performance Incentive Program The Governor proposes
to create a new categorical aid program that awards funds to school
boards based on performance of individual schools in the district:
At least one school in the district must be placed in the requisite
performance category Specifies the basis of performance category to
be the accountability report published for the school under
s.115.385 [new] at the end of the immediately preceding school
year- i.e., the Departments recently created School Report Card.
Any awards made under this program are only for the year in which
the award is made; schools may be determined eligible year after
year, but awards do not build a districts base revenue. 26
Slide 27
NEW: School Performance Incentive Program Proposal includes
three distinct aid programs: $24 million for High Performing
Schools school(s) placed in either of the top two categories $30
million for Improving Schools school(s) that increased their
numeric score on the accountability report by at least three points
compared to prior year $10 million for Low Performing Schools
school(s) placed in the lowest category if the school board submits
a written school improvement plan for each school (for which award
is sought) and the DPI determines the plan(s) meet criteria
specified under the proposal 27
Slide 28
NEW: School Performance Incentive Program Award amounts would
be awarded to School Boards, but determined on a school basis, as
follows: High Performing Schools ($24 million) for each school:
(state appropriation )/ (number of pupils enrolled in eligible
schools statewide ) x number of pupils enrolled in a school
Improving Schools ($30 million) for each school: (state
appropriation) / sum of (pupils enrolled in eligible schools x
point increase by school ) x number of pupils enrolled in a school
*Note that for this aid, pupils are weighted to reflect magnitude
of increase on the Report Card. Low Performing Schools ($10
million) No formula is specified in the proposal 28
Slide 29
NEW: School Performance Incentive Program To be eligible for an
award a School Board must: Submit an intent to participate notice
to DPI within 60 days after the accountability reports are
published By September 1 st, 2014 establish a policy for the
distribution of funding awarded under this program to a school(s)
in the district: The Boards policy may not prescribe the manner in
which funds are to be used by the school(s); however, The Boards
policy may identify and prioritize goals and objectives towards
which the funds may be applied. If both of the above requirements
are met, a School Board must distribute the full award amount to
the eligible school(s) [proposal does not specify a date by which
the DPI must distribute the awards to a School Board of eligible
school(s)] 29
Slide 30
Other School Finance Related Items Part Time Open Enrollment
Course Options expansion of Part-Time Open Enrollment : Permits
pupils at any grade level to participate Permits attendance at any
UW institution, WI Technical College, non-profit institution of
higher education, tribal college, charter school or other
educational provider approved by the department School Boards are
responsible for tuition payments (as established by DPI ) to the
institution of higher education Permits a School Board to deny
pupils request to enroll in a course under this program if the
Board determines the course does not satisfy a HS graduation
requirement or the course does not support the pupils Academic and
Career Plan (newly created in the Governors Proposal) Allows for
pupil whose request is denied to appeal to DPI [ss.118.52] 30
Slide 31
Other School Finance Related Items Part Time Open Enrollment
Attendance by pupils enrolled in home-based private education:
Permits home-based private education pupils to take up to two
courses per semester at any public school, provided space is
available at that school and pupil meets standards of admission to
the course No longer restricted to just High School pupil or
courses Allows the district of attendance to count a home-based
private education pupil enrolled in courses at a school in the
district for aid membership purposes, at 0.25 FTE per course taken
(up to maximum of two courses allowed, or 0.50 FTE) These pupils
could NOT be counted for purposes of revenue limit membership [ss.
118.53, new ] 31
Slide 32
Other School Finance Related Items Charter Schools Increases
flexibilities for Instrumentality Charter Schools: Requires an
instrumentality charter contract to specify a per pupil payment
commensurate with the school districts average per pupil costs;
Grants the school operator sole discretion over budget, curriculum,
professional development and personnel (exceptions for health and
safety) Prohibits a school board from imposing on a charter school
any requirement from which a charter school would otherwise be
exempt. 32
Slide 33
Other School Finance Related Items Charter Schools Permits a
school board to grant a petition to convert all of a districts
schools to charter schools, without the current law requirement
that at least 50% of teachers in the district sign the petition and
that the district provide a non-charter alternative to any resident
pupil who so requests Creates a proficiency-based charter school
teaching license, under which any person who has a bachelors degree
and who can demonstrate proficiency in a subject may receive a
license to teach that subject in a charter school 33
Slide 34
Other School Finance Related Items Miscellaneous Provides for
an alternative pupil count date if a school will be closed for a
regularly scheduled holiday, or closed for a reason approved by the
school board, on the statutorily dictated pupil count dates Extends
the length of time during which a consolidated school district is
eligible to receive additional equalization aid, from five to seven
years after consolidation (gradual reduction of the rate of aid
benefit the base guarantee in last two years) 34
Slide 35
Other K-12 Items District Operations Require all schools to
provide academic /career planning services to pupils in grades 6 to
12 by the 2017-18 school year Provide funding to DPI to purchase
& implement a software program to support academic/career
planning and learning, and to implement training school district
staff who provide advising services to pupils Prohibit DPI from
requiring that an instructor must be physically present in a
classroom during the delivery of instruction in a digital
environment 35
Slide 36
Other K-12 Items Assessment and Accountability Provide funding
to DPI to implement: ACT Suite and Next Generation Assessments
SMARTER/Balance & Dynamic Learning Assessments in FY15 Provide
the State Superintendent with authority to adopt/approve
assessments for the 9 th and 11 th grades Require schools
(including charter schools) to administer the assessments approved
by the State Superintendent for the 9 th and 11 th grades for all
pupils in public, charter and Parental Choice program schools
Require DPI to annually publish school & district report cards
and place each school into one five performance categories Provide
funding for expansion of early reading assessment program to pupils
in 4K, 1 st and 2 nd grades (currently 5K) 36
Slide 37
Other K-12 Items Educator Effectiveness / Teacher Licensing
Provide funding to DPI to develop and implement the states new
Educator Effectiveness (EE) system to evaluate principals and
teachers (as mandated by ss. 115.45) Require DPI to count teaching
experience gained under an emergency teaching license for specific
assignments as experience for purposes of an equivalency teaching
license or an administrator license Require an EE system rating of
effective or highly effective for a person to receive a Master
Educator Grant from DPI Provide additional funding for teachers who
receive a Master Educator License from DPI or certification from
the National Board for Professional Teaching Standards Eliminates
the requirement that teachers of online courses fulfill an
additional 20 hours of professional development in online learning;
prohibit DPI from imposing such a requirement. 37
Slide 38
Energy Efficiency Exemption Performance Contract Requirement
All projects (whether one year or funded by debt service) must be
governed by a performance contract under s. 66.0133 DPI does not
oversee this requirement, but we do require you to certify
compliance in the portal. Please consult legal counsel to ensure
project compliance DOA has information available for state agencies
that may provide useful background information
Slide 39
Energy Efficiency Exemption Resolution adopted by school board
by November 1 in the school year in which a tax is to be levied for
the expenditure. Put the resolution into referendum portal with the
type as Board resolution to exceed revenue cap for energy
efficiency (even if debt service is being used)
Slide 40
Energy Efficiency Exemption Debt Service Bonds or notes may be
issued for up to 20 years Does not change the requirements related
to the $1 million limit on non-referendum debt Requires annual
resolution by the board for the amount that will be levied using
the energy exemption and expended that fiscal year
Slide 41
Energy Efficiency Exemption Debt Service Payments should be
treated the same way as other non-recurring referenda Currently,
there is a disconnect between the exemption amount (Line 10C) and
the levy amount (Line 14B) The exemption amount is the payment
being made during the fiscal year (whether a one-year or debt
service project). The Fund 38 non- referendum debt service levy
amount is based on the upcoming calendar year payment
Slide 42
Energy Efficiency Exemption There is a revenue limit penalty
for any exemption amount not expended during the fiscal year
District prepares an addendum to the following years budget summary
reporting results of energy savings from the expenditure and copies
that information into the referendum portal under that resolution
More information is available at:
http://sfs.dpi.wi.gov/sfs_enrgyrevlim
http://sfs.dpi.wi.gov/sfs_enrgyrevlim
Slide 43
Fund 73 OPEB Trust Reminders PHYSICAL CASH TRANSACTIONS The
contribution to the trust must have cash movement by July 30. The
implicit rate subsidy must have cash movement from trust to
district funds. NO BOOK ENTRIES, NO NETTING TRANSACTIONS
Slide 44
Fund 73 OPEB Trust Reminders Budget for Trust Activity
Expenditure for contribution should be in the districts budget. If
additional funds are contributed, budget should be amended.
Implicit rate subsidy credit to object 241 should be in accounted
for in budget.
Slide 45
Payment of Retiree Benefits Once a district elects to establish
and fund an OPEB trust, the retiree benefits that were funded must
be paid out of the trust. Exception may be termination benefits
such as accumulated sick leave. Implicit rate subsidy for those
benefits still applies if you use trust. No more pay as you go.
Retiree benefits include both payments to insurance vendors and
implicit rate subsidy. Fund 73 OPEB Trust Reminders
Slide 46
Allocation of district activity Contributions to the trust up
to the ARC must be allocated to active employee plan members By FTE
or Salary This changed from a suggestion to a requirement a few
years ago. Implicit Rate Subsidy should be credited to the active
employee plan members healthcare costs, Object 241. Allocated in
the same manner as the Contribution Fund 73 OPEB Trust
Reminders
Slide 47
Contributions over ARC If the contribution exceeds the ARC, it
is not allocated to active employee functions. Amount in excess of
the ARC is coded to Function 292000, Object 218. Amount in excess
of ARC can all go to Fund 10 or can be allocated to current
employee Funds, still 292000-218. Treatment must be consistent from
year to year. Not eligible for special education categorical aid or
current year federal grants. Fund 73 OPEB Trust Reminders
Slide 48
Implicit Rate Subsidy If a district has retirees on their
health insurance plan, there will be an implicit rate subsidy.
Exception: Some self funded plans may not have implicit rate
subsidy payback if actual costs method is used. Implicit rate
subsidy needs to be paid from the Fund 73 trust to the district in
cash. This will be a credit to active employee plan member health
care costs, object 241. It will lower a districts shared costs.
Fund 73 OPEB Trust Reminders
Slide 49
Plan Member Contributions If the retirees pay a portion of
their healthcare costs, these should be deposited directly into the
Fund 73 trust. If that is not an option, district should record
them in a Due to Fund 73 liability account. They should never be
revenue or expenditures in the district funds. Fund 73 OPEB Trust
Reminders
Slide 50
Requirements to Establish OPEB trust for DPI purposes and
funding trust All DPI requirements must be met by the fiscal year
end, June 30 in order to qualify as an expenditure in that year.
Physical cash contribution must be within 30 days of fiscal year
end, or July 30, only for districts which have satisfied those
requirements by June 30. Board Approval, Trust Agreement, Actuarial
Study and Legal Opinion to DPI by June 30. Fund 73 OPEB
Clarifications
Slide 51
Timing of payments to the trust For trust that meet the DPI
requirements by June 30 and accrue a payment for that fiscal year
ending, physical cash movement must happen by July 30. The amount
of this accrual and payment can be an amount up to the unfunded
liability. Amount up to unfunded liability eligible for shared
costs. Amount up to ARC eligible for categorical aid and federal
grants. Changed the restrictions for aid on the amounts made by
June 30 vs July 30. Fund 73 OPEB Clarifications
Slide 52
Late Studies DPI guidance is to use the study you have at the
time of the contribution for making the contribution. If new study
is received after July 30: No additional contribution can be made.
No adjustment to implicit rate subsidy is made. If a new study is
due, GASB requires your auditor to have it by the completion of the
audit. Fund 73 OPEB Clarifications
Slide 53
New or updated documents Send copies of the new actuarial
studies or any trust amendments to [email protected][email protected] ONLY send the actuarial studies to DPI
if you use Fund 73 Your auditors need the valuations for OPEB for
all entities for their audit purposes whether you have Fund 73 or
not Fund 73 OPEB Clarifications
Slide 54
Indirect Cost Proposal Formal plan and methodology for
calculating rates on a consistent basis Organizational review Tying
costs to functions Submission of plan to Cognizant Agency Federal
Review Negotiation Issuance of Rate Agreement
Slide 55
Indirect Cost Proposal What does this mean for WI schools? DPI
establishes ICR plan for all districts DPI negotiates with Dept of
ED Every 5 years the plan is resubmitted and new agreement is
reached Available on DPI website:
http://www.dpi.state.wi.us/sfs/indirect.html
http://www.dpi.state.wi.us/sfs/indirect.html
Slide 56
Indirect Cost Proposal Why are rates delayed for 12-13? Dept of
Ed visit in June 2012 Submission of new 5 year plan September 2012
January 31, 2013 Plan submitted for final approval at Dept of ED
February 13, 2013 request for more information and changes to Plan
February 20, 2013 submit revised Plan February 26, 2013 Request for
more changes
Slide 57
Indirect Cost Proposal Why are rates delayed for 12-13? March
5, 2013 Amended Plan resubmitted to DOE March 6, 2013 Amended Plan
resubmitted to DOE management for approval
Slide 58
Indirect Cost Rate Changes to Calculation Function 258000,
Internal Services were moved from Indirect to Direct These costs
should be identified with a particular cost objective and can be
charged to a particular federal award Food costs in Fund 50 were
moved from Direct to an Excluded cost Rationale is that these costs
require very little administrative support Removal of these costs
from the direct cost base should increase the indirect rates of the
district
Slide 59
Combined Reports One budget report that combines the Full
Budget (PI-1504) and Special Education Budget (PI-1504-SE) One
annual report that combines the Full Annual (PI-1505) and the
Special Education Annual (PI-1505-SE)
Slide 60
Combined Annual Reports Process Survey Timeline Go Live with
the new combined report for the 2014 Budget report in October Some
user testing between August and Go Live
Slide 61
Combined Annual Reports Goals and Benefits Overall Only need to
complete one report Improved Navigation between screens ( Left Nav
) Convert features from the Full Reports into a manageable platform
and DPI can make changes and enhancements easier Real time status
on current issues and system downtime Challenges System Speed
(Response Time) Combined Edits Level of Reporting/ Volume of Data
(Project Code vs. Obj/Src)
Slide 62
Combined Annual Reports Goals Data Improved Simple Search
Feature Improved Navigation Easier editing Working Journal Entry
feature Errors By Category List with option to hyperlink to
retrieve errors by fund
Slide 63
Combined Annual Reports Goals Addenda Fewer Addenda - tie
certain edits directly to an account when possible Itemize amounts
and complete text boxes on one screen List with option to hyperlink
to retrieve addenda by fund
Slide 64
SECURITY SYSTEM UPDATE Simplify Easier to Maintain User Focused
Organization Focused Report Focused Future Incorporation to Single
Sign-on Enhancements
Slide 65
SECURITY SYSTEM UPDATE Easier to Maintain - User Focused Users
will Create/Maintain Their Individual IDs
Slide 66
SECURITY SYSTEM UPDATE Easier to Maintain - User Focused Users
Can Maintain Individual Profiles
Slide 67
SECURITY SYSTEM UPDATE Easier to Maintain - User Focused Lost
Password
Slide 68
SECURITY SYSTEM UPDATE Districts Maintain LEA Access 2 Lists
All Users and Users with Access
Slide 69
SECURITY SYSTEM UPDATE Districts Maintain Specific Report
Access 2 Lists LEA User IDs and Report Security
Slide 70
SECURITY SYSTEM UPDATE To Do: Summary of 1500 with File Report
Option. Retro Integration to existing Reports/Systems. Estimated
Timeline is Under Consideration with other projects. Collect
Feedback and Enhancements Integration with other systems as part of
Single Sign-on Initiative.
Slide 71
T ransfer of Service A Few Reminders
Slide 72
What is Transfer of Service? The Transfer of Service Exemption
(Wis. Stat. 121.91(4)(a)) provides that a school district which
assumes responsibility for a program or service from another
governmental unit may request and be granted an exemption to the
district revenue limit equal to the increased cost due to that
program or service. If the service transferred is a student that
requires Special Education or ESL services, the exemption will be
reduced by the amount of categorical aid the district will receive
the following year, as determined by DPI.Wis. Stat. 121.91(4)(a) If
the previous governmental unit was another Wisconsin school
district, that district's revenue limit may be reduced by an amount
equal to their reduction in cost as a result of that transfer
out.
Slide 73
Transfer of Service Reminders On-line Report will open in April
All parts required are due August 30. Part A and Part B is the
supporting documentation for the request. Part C is the actual
request. It is the requesting districts responsibility to make sure
the Part B district completes the report
Slide 74
Transfer of Service If you expect this exemption to the revenue
limit Part C must be completed There is a separate Part C for
Special Education and Limited English Proficiency Other Government
Transfers are still done as a narrative and requested via
e-mail.
Slide 75
Transfer of Service Instructions can be found at:
http://sfs.dpi.wi.gov/transfer-service
Slide 76
Transfer of Service Work in Progress We may see major changes
to the on-line format but Reporting process is the same as last
year. On-line reporting is the required method. Click here -
Transfer of service test siteTransfer of service test site
Slide 77
Transfer of Service Part C Summary Sheet
Slide 78
Transfer of Service Part C Summary Sheet Once this sheet is
submitted, the TOS request process is completed. It can be amended
up to the due date. Estimate is Auto Filled Expected is Your Actual
Request
Slide 79
Transfer of Service Summary Sheet There is a separate Part C
Summary Sheet for Special Education and Limited English
Proficiency. Both Part C Summary Sheets are due on or before August
30th (tentative). It can be amended at any time up to the due date.
The Part C Summary Sheet is the actual Transfer of Service request
and completes the process for the TOS request.
Slide 80
Transfer of Service For further information about Transfer of
Service, go to: http://sfs.dpi.wi.gov/transfer-service Or contact:
Brad Adams, School Finance Consultant [email protected]
608-267-3752
Slide 81
Pupil Transportation Aid Portal One of SFS original data entry
portals An update will be completed for use in June of 2013
Security changes will included Functionality will be similar to
other portals when an explanation is needed the portal will lead
user to that field This years report will be due on June 28, 2013
Summer school transportation data for the 2012-2013 payment is from
the summer of 2012.
Slide 82
Pupil Transportation Aid Audit Currently your auditor will
review Pupil Transportation Aid at least every three years.
Currently there are 40 districts with one or more Pupil
Transportation finding being investigated Districts are responsible
to provide reliable documentation and NOT undocumented assumptions
or estimates to support the number of pupils reported as actually
transported at least once during the school year.
Slide 83
Pupil Transportation Aid Audit An Audit finding can cost your
district some serious staff time and even some aid revenue..2011 WI
Act 105 - Residual Balance of Allocation: Effective with the
2011-12 school year, any balance remaining after paying all claims
for pupil transportation aid shall be apportioned among districts.
This apportionment shall be based on each district's share of the
total claims. For example, if a district's claim equals 0.5% of the
total claims, the district shall receive 0.5% of any residual
balance. Residual balance payments shall be paid in June.
Slide 84
Pupil Transportation Aid Audit Guidelines for school auditors
will be updated this spring. When was the last time your district
reviewed your Unusually Hazardous Transportation (UHT) Plan? 20% of
the mileages categories are governed by your UHT.
Slide 85
Foster/Group Home Report PI-1589 Prior to last year, this was a
paper report that was faxed in to DPI. Last year, the report was
converted to an online report. The format was not very user
friendly, and we are hoping to keep the online report for this year
but change the look and feel of it. The report should be similar to
the Transfer of Service Report. The initial submission part will be
due by the end of June. We will keep you updated on the status of
the report.
Slide 86
Membership Audits Its one of the most important things you will
do Used to determine revenue limits Used to establish state
equalization aids Its also not as simple as it sounds. Put a very
competent person in charge of this report! Check their work
especially if they are new.
Slide 87
A district may be selected to have a membership audit.
Criteria: Random Selection 25% District audited in the prior year
having a net error rate in excess of 1% from the reported
membership, for either count date. Pupil Count report was not
received on time. During a membership audit, the district auditor
will review the accuracy of the September, January, Summer, and
Youth Challenge Count Reports. 87 Membership Audits
Slide 88
A membership audit requires the audit of the Summer School
membership calculation as well as Summer School fees. Fees are
probably the biggest issue regarding Summer School membership
audits. Be prepared to be able to document all expenditures made
for each individual Summer School class. 88 Membership Audits
Slide 89
Summer School - Fees If the district claims state aid under
s.121.14, Wis. Stats There shall be no cost to the resident student
beyond individual use supplies (towels, gym clothes, band
instruments, notebooks, pencils), and textbooks or similar items
(workbooks). Fees for equipment, admission to a facility or event,
transportation, shuttling, and food and lodging for off-campus
activities are prohibited if a district claims state aid. Items for
which fees are charged must be legally permitted and actually
purchased for summer school use.
Slide 90
Summer School - Fees Summer school fees may not be used to
subsidize other classes or students. You must be able to document
that expenditures were made to cover the fee charged to each
individual student.
Slide 91
Summer School - Fees If the district does not claim summer
school aid School boards may establish and collect reasonable fees
for social, recreational or extracurricular summer classes and
programs which are neither credited toward graduation nor eligible
for state aid [s. 118.04 (4)]. School boards may also provide and
charge for transportation for extracurricular activities such as
school athletic contests, school games, after school practice, late
activity, school outings or extracurricular school field trips [s.
121.54 (7)]. Such activities are not, however, eligible for state
aid or categorical aid and may not be claimed for summer school
membership.
Slide 92
Summer School - Fees So what do you do? During and after the
Summer School program -Check expenditures for each class. -If there
is a shortage of expenditures, return the under-spent portion of
the fee. -Do this before or soon after the conclusion of summer
school.
Slide 93
Summer School Fees How do auditors review summer school fees?
NEW - Audit procedures available to auditors at:
http://sfs.dpi.wi.gov/files/sfs/m_audit.html Sample of Summer
School Fee Auditing
Slide 94
What will auditors ask for? PI-1804W-2 (Worksheet) Summer
school list of classes and fees Should not be a flat fee
Expenditures (by course) for the classes that charge fees Run a
detailed report of the appropriate function and object and identify
for auditor those used for summer school May be asked to pull some
invoices Summer School Fees
Slide 95
What will auditors test for? Fees are not charged as a flat fee
across all courses Costs identified by course are eligible costs
Costs that are eligible do not exceed fees charged (by course)
Summer School Fees
Slide 96
Fees should not be a flat fee across the board. If it is, each
course must be supported by enough allowable cost to justify the
fee. Example: FeePupils Total Elementary Gym Class$20.00 25 $ 500
Extended Year Mathematics $ 0.00 30 $ 0 Beginning Strings$50.00 20
$1,000 Drama Class $50.0020 $1,000 Auditor does not need to check
expenditures for Math class. Summer School - Fees
Slide 97
Detail of the Elementary Gym Class Towels $ 225 Pens, pencils $
75 Uniforms $ 750 Water bottles $ 75 Handouts $ 25 Total Spent: $
1,150 Total Collected:$ 500 OK Summer School - Fees
Slide 98
Detail of the Beginning Strings Workbooks $ 200 Pens, pencils $
50 Band instruments $ 250 Total Spent: $ 500 Total Collected: $
1,000 Not OK Summer School - Fees
Slide 99
Detail of the Drama Class Wardrobe (made by pupils) $ 1,500 OK
if kept by pupil Teacher $ 2,950 Not allowable Lighting $ 500 Not
allowable Handouts $ 240 Total Spent: $ 5,190 $ (3,450) Allowable
Spent: $ 1,740 Total Collected: $ 1,000 OK Summer School -
Fees
Slide 100
Findings Elementary Gym Class OK Extended Year MathematicsOK
Beginning StringsNot OK Drama Class OK Result: DPI will reduce
pupil minutes for the Beginning Strings class. Depending on the FTE
loss incurred, there could be a revenue limit penalty. Summer
School - Fees
Slide 101
Frequently Asked Questions Fees See DPI's websites regarding
fees: School Fees (http://sfs.dpi.wi.gov/files/sfs/fees.html
)http://sfs.dpi.wi.gov/files/sfs/fees.html Membership Audits
(http://sfs.dpi.wi.gov/files/sfs/auditorqanda.html)http://sfs.dpi.wi.gov/files/sfs/auditorqanda.html
Summer School
(http://sfs.dpi.wi.gov/files/sfs/summ_sch.html)http://sfs.dpi.wi.gov/files/sfs/summ_sch.html
Slide 102
Frequently Asked Questions How much can the district charge for
allowable fees? Fees must be supported by the actual cost of the
provided service. For example, a general fee of $30 per student to
cover miscellaneous school supplies would probably not be legal.
However, if it is supported by evidence that each child receives at
least $30 worth of school supplies that would otherwise be provided
by the parent, the fee is allowable. A school district may face
challenges if it offers a discounted price or volume discount for
families with more than one child in the district. If the district
wants to provide such a discount, it should be based upon indigency
or need rather than cost. Fees
Slide 103
Frequently Asked Questions Can a school district charge
students for driver's education? If the student is given credit
toward graduation, if the class is required for graduation, or if
the class is aided under s. 121.14 (summer school), the district
may not charge for instruction or for the use of any apparatus
necessary to the instruction, such as vehicle cost or simulator
cost. It may charge non-indigent students for the book and/or
workbook required or any other personal/individual use item that is
associated with the class. Fees
Slide 104
Frequently Asked Questions Can a school district charge
students for summer school? There shall be no cost to the resident
student or parent beyond incidental supplies, textbook or similar
items (workbooks) if the district claims state aid under s. 121.14
[State Aid for Summer Classes]. Additionally, if the student is a
resident of the district and the class is necessary for a grade
promotion, high school graduation, or is given credit toward
graduation, the district may not charge for the instruction,
building costs or apparatus. If the class is not required, credited
or aided, the fees must be based upon the actual cost of the class.
Fees may not be used to subsidize other classes or students. Items
for which fees are charged must be legally permitted and actually
purchased for summer school use. Fees
Slide 105
Frequently Asked Questions Can a school district withhold
records or grades if a fee has not been paid? No. The federal
Family Education Rights and Privacy Act (FERPA), 20 U.S.C. 1232g
and its implementing regulations 34 CFR 99), and state law, sec.
118.125(2)(a) and (b), mandate that pupils and their parents have
access to and be given copies of their pupil records. In cases of
transfer to another school, sec. 118.125(4), Stats., requires
public schools to transfer records within 5 days of such a written
request from the parent, adult student or the new school. There is
no specific provision in either federal or state law that allows
the public school district to withhold records, including a
diploma, for failure to pay a fee or fine. While two new general
provisions expanding school board powers were added to state law in
1995, and these arguably might support the view that now records
could be withheld under state law for failure to pay fees, there
was no such change under FERPA. Thus withholding records could
still jeopardize any federal funding the district receives and
could result in a court challenge to the practice. The approved
method for recovery of unpaid fees is small claims court. Fees
Slide 106
Summer School For further information about Summer School, go
to: http://sfs.dpi.state.wi.us/files/sfs/summ_sch.html Direct
questions concerning financial issues to Brad Adams: (608) 267-3752
Email: [email protected]@dpi.wi.gov
Slide 107
Common School Fund - Finance Team Timeline June 30 Districts
obtain census information which is used in following year for
calculation of Library Aid. Census numbers are due in August.
January - The Board of Commissioners of Public Lands (BCPL) informs
the Department of Public Instruction (DPI) of the estimated
interest that will accumulated in the Common School Income Fund by
April 15 th. $24.70 per census. This is a good estimate. April The
BCPL informs the DPI of the actual total interest that has
accumulated in the Common School Income Fund. Calculate actual aid
available per census. May 1 st Library Aid payment made to
districts. Funds to be spent during current fiscal year. Not doing
so could cause the district to lose this aid.
http://sfs.dpi.state.wi.us/files/sfs/comsch.html
Slide 108
Common School Fund - History This Fund is as old as Wisconsin.
The framers of our state Constitution established this permanent
school fund and required that its income be applied exclusively to
the support and maintenance of common [public K-12] schools and the
purchase of suitable libraries and apparatus therefor.
http://sfs.dpi.state.wi.us/files/sfs/comsch.html
Slide 109
Common School Fund - History The Fund was established with
proceeds from the sale of the 16th Section of each townshipnearly 1
million acres of land granted by the federal government to
Wisconsin when it became a state. Wisconsin received another grant
from Congress of 500,000 acres of land for the purpose of making
internal improvements. Wisconsins early leaders petitioned Congress
for permission to dedicate all these lands for public education.
Most of this land was sold to establish the Fund.
http://sfs.dpi.state.wi.us/files/sfs/comsch.html
Slide 110
Common School Fund - History
http://sfs.dpi.state.wi.us/files/sfs/comsch.html Money is loaned to
municipalities and school districts for public purpose projects.
Interest generated from these loans and other investments provides
the revenue for school library aid. Interest rates and earnings
have dropped, so the money available for library aid is down this
year.
Slide 111
Common School Fund - History The principal continues to grow
because the states constitution provides that the Fund receives
clear proceeds of all fees, fines and forfeitures (including
unclaimed and escheated property) that accrue to the state. In many
cases, clear proceeds is redefined and governing bodies impose
surcharges in lieu of fines. Today, for example, the Common School
Fund receives less than 10% of the revenue from a typical speeding
ticket. http://sfs.dpi.state.wi.us/files/sfs/comsch.html
Slide 112
If you have any questions regarding school library purchases
that meet the requirements of the Common School Fund contact Nancy
Anderson, School Library Media Consultant,
[email protected], or by telephone at: (608)
[email protected] If you have any questions
regarding school library aid contact Brad Adams, School Finance
Consultant, [email protected], or by telephone at: (608)
267-3752. [email protected] Common School Fund web site:
http://sfs.dpi.wi.gov/files/sfs/comsch.html Wisconsin Board of
Commissioners of Public Lands: http://bcpl.wisconsin.gov/ N EED
MORE INFORMATION ABOUT THE C OMMON SCHOOL FUND ?
Slide 113
Within 10 days of the board adopting a resolution, the district
must notify DPI. Entry on the School Finance Reporting portal
Instructions on SFS website Copy of initial board resolution sent
to [email protected][email protected]
http://sfs.dpi.wi.gov/sfs_referendum
http://sfs.dpi.wi.gov/sfs_referendum Referenda Reminders
Slide 114
After elections Submit preliminary results to DPI E-mail to
[email protected][email protected] Update
portal the morning following election Results are compiled the
morning following the election and forwarded to the State
Superintendent. Submit Board of Canvassers within 10 days following
election. Referenda Reminders
Slide 115
Base Hold Harmless Exemption EXAMPLE: Line 1: District Base
Revenue = $5,000,000 Line 2: District Base 3-Year Ave Membership =
500 Line 3: District Base Revenue per Pupil = $10,000 (Line 1 /
Line 2) Line 4: Per Pupil Adjustment = $0 per pupil (District would
not be eligible for Low Revenue Ceiling Adjustment) Line 5: 2013-14
Maximum Revenue per Pupil = $10,000 (Line 3 + Line 4) Line 6:
Current 3-Year Average Membership = 495 Line 7a: 2013-14 Revenue =
$4,950,000 (Line 5 x Line 6) Line 7b: Base Hold Harmless Exemption
= $50,000 (Line 1 Line 7a) Line 7: 2013-14 Revenue prior to
Exemptions = $5,000,000 115 Return to PresentationPresentation
Slide 116
DPI SCHOOL FINANCE TEAM Please contact one of us if you have
any questions: Jerry Landmark, Director608-266-6968 Debbie Brown,
Asst Director608-267-9209 Brad Adams, Consultant608-267-3752 Bruce
Anderson, Consultant608-267-9707 Erin Fath, Consultant608-266-3464
Gene Fornecker, Auditor608-267-7882 Brian Kahl, Auditor608-266-3862
Michele Tessner, Auditor608-267-9218 Dan Bush, Consultant (Special
Ed.)608-267-9212