MASBO Institute AccountingFinancial Management February 22 2016 Sharon

MASBO Institute Accounting/Financial Management February 22, 2016 Sharon Peck, Presenter Deb Meier, Presenter Minnesota Department of Education Division of School Finance 1500 Highway 36 West Roseville, MN 55113

Agenda Ø Acronyms Ø MARSS Ø Financing Education in Minnesota Ø UFARS Coding Ø UFARS Submissions Ø UFARS Year End Reports Ø UFARS Software Vendor Approval Ø Student Activities education. state. mn. us 2

Acronyms • There are many acronyms used on the MDE website that are related to school funding, school programs, grants, etc. • The link below will take you to the MDE webpage that has a list of frequently used acronyms: • http: //education. state. mn. us/MDE/Stu. Suc/Charter. Sc h/Resources/index. htm • Once you arrive on this webpage, please click on the Frequently Used Acronyms and Terms Glossary for Charter Schools in the middle of the page. • Note: This list is useful for School Districts, Charter Schools, Education Districts and Cooperatives. education. state. mn. us 3

MARSS Overview MARSS ? Minnesota Automated Reporting Student System education. state. mn. us 4

MARSS • MARSS is the means by which all public schools report student data for: – State funding, e. g. , ADM, compensatory counts – Accountability, e. g. , data files, assessment – Federal reporting • Two reporting cycles per year – Fall, opens for editing in August and final files are due in early January – Year-End, opens for editing in January and final files are due in October, with appeals due by December 15 • Timelines are posted to School Support > MARSS-Student Accounting > Timelines. education. state. mn. us 5

MARSS Reports • MARSS Coordinator has access to many reports to assist in verifying that the data files are complete and accurate. • A list of the reports and an explanation of each is posted to the MARSS WEB Edit System (WES) web page. • School Support > Data Submissions > MARSS Web Edit System • See next slide. education. state. mn. us 6

This link provides a description of each local report. education. state. mn. us This is a list of all of the MARSS WES reports. 7

ADM Reports • The District/School ADM report is posted to MFR in the Student category after each year-end MARSS reporting deadline starting in June. • These are the ADM that will be used in the final entitlements. • Documentation on how to read the report is posted to School Support > School Finance > MARSS-Student Accounting > Average Daily Membership. education. state. mn. us 8

District/School ADM Report education. state. mn. us 9

Financing Education in Minnesota 2015 -16 • To locate the Financing Education in Minnesota for 2015 -16, go the MDE Home page and click on School Finance. • Please see the next slide for where to click next. • This document is extremely helpful for understanding how school funding works in Minnesota. • May want to click on Subscribe here, since you will receive updates when new documents are posted. education. state. mn. us 10

Financing Education in Minnesota 2015 -16 • http: //education. state. mn. us/MDE/Sch. Sup/Sch. Fi n/ education. state. mn. us 11

UFARS Overview UFARS ? UNIFORM FINANCIAL ACCOUNTING and REPORTING STANDARDS education. state. mn. us 12

Accounting and UFARS Overview ACCOUNTING, BUDGETING, AND REPORTING REQUIREMENT (Minn. Stat. § 123 B. 77) – Law 1976 Subdivision 1. Uniform financial accounting and reporting standards. Each Minnesota school district must adopt the uniform financial accounting and reporting standards for Minnesota school districts provided for in guidelines adopted by the department. Ø All Minnesota school reporting entities are required by law to prepare financial reports and annual budgets. Ø These financial reports include the detailed tracking of revenues and expenditures within UFARS fund classifications to meet legislative requirements and provide financial accountability for public fund allocations. education. state. mn. us 13

UFARS Overview UFARS MANUAL Fiscal Year 2015 Edition Uniform Financial Accounting and Reporting Standards education. state. mn. us 14

UFARS Overview education. state. mn. us/MDE/Sch. Sup/Sch. Fin/Fin. Mgmt/UFARS/index. html education. state. mn. us 15

EXPENDITURES education. state. mn. us 16

UFARS CODING STRUCTURE - EXPENDITURES 6 Dimensions 1 Fund 2 Organization 3 Program 4 Finance 5 Object 6 Course FD 2 ORG 3 PRG 3 FIN 3 OBJ 3 CRS 3 17 - Digits education. state. mn. us 17

UFARS Manual Overview Chapter – Page 5 education. state. mn. us 18

Expenditure Coding FD ORG PRG FIN OBJ CRS Fund Dimension – Chapter 1 (Five Fund Categories) Operating Funds Fund 01 – General Fund 02 – Food Service Fund 04 – Community Service Fund Non-Operating Funds Fund 06 – Building Construction Fund 07 – Debt Service Fund 47 – OPEB Debt Service Fund Fiduciary Funds Fund 08 – Trust Fund 09 – Agency Fund 45 – OPEB Irrevocable Trust Fund Proprietary Funds Fund 20 – Internal Service Fund 25 – OPEB Internal Service Fund Account Groups Fund 98 – General Fixed Assets Group Fund 99 – General Long-Term Debt Group education. state. mn. us 19

General Fund 01 education. state. mn. us 20

General Fund (01) Administration General Fund (01) Activities District Support Services Education Elementary, Secondary, Vocational, Special Education Instruction Other Programs Pupil Support Services Some Sites and Buildings Activities Instructional Support Services The General Fund is used to account for all revenues & expenditures not accounted for elsewhere. education. state. mn. us 12

Expenditure Coding FD ORG PRG FIN OBJ CRS Organization/Site Dimension (UFARS Manual – Chapter 2) The purpose of the organization/site dimension is to identifies expenditures by a specific budgeted learning site or district-wide. Ø A budgeted learning site is an organizational unit where students attend: § § Established for a specific purpose Registered with the Department as an official learning site within a district education. state. mn. us 22

Expenditure Coding FD ORG PRG FIN OBJ CRS In accordance with instructions provided for MARSS and STAR, expenditures that occur at more than three sites may be designated as District-Wide (Organization Code 005). District-Wide or Not Otherwise Identified by Budgeted Learning Site Ø Used for activities that cannot be related to an individual budgeted learning site. Ø In general, these program codes should be coded to Organization Code 005 (District-wide): § Board of Education (010) § Office of Superintendent (020) § Instructional Administration (030) § District Support Services (100 series) § Community Education and Services (500 series) § Fiscal and Other Fixed Cost Programs (900 series) education. state. mn. us 23

Expenditure Coding FD ORG PRG FIN OBJ CRS Organization/Site Dimension Ø Typical budgeted learning sites are: § Elementary, middle or secondary schools (whether or not it is in a separate building) or § A budgeted learning site that is located in several buildings and is identified in the MARSS and STAR systems. Each reporting entity must use the same numbers in the UFARS reporting system as they use in the Minnesota Automated Reporting Student System (MARSS) and the Staff Automated Reporting System (STAR). education. state. mn. us 24

Expenditure Coding FD ORG PRG FIN OBJ CRS Budgeted Learning Sites: 001 -004, 006 -798, 800 -997, 999 These codes should be used for budgeted learning sites. This must include, but not be limited to, expenditures for Basic Skills Education, expenditures pursuant to a site-based management agreement, and area learning center expenditures. Ø Following program codes should use budgeted learning sites : § School Administration (050) § Elementary and Secondary Regular Instruction (200 series) § Career and Technical Education Instruction (300 series) Ø Following program codes should use District-Wide (005) or 001 -004, 006 -999 budgeted learning sites: § Special Education Instruction (400 series) § Instructional Support Services (600 series) § Pupil Support Services (700 series) § Sites and Buildings (800 series) education. state. mn. us 25

Expenditure Coding FD ORG PRG FIN OBJ CRS Home School Sites (799) § Record expenditures made by all home school sites. § This organization/site code cannot be used as a budgeted learning site number. Tuition Billing Sites (998) § Individual tuition payments for students served outside of the district. education. state. mn. us 26

Expenditure Coding FD ORG PRG FIN OBJ CRS Click Here education. state. mn. us 27

Expenditure Coding FD ORG PRG FIN OBJ CRS education. state. mn. us 28

Expenditure Coding FD ORG PRG FIN OBJ CRS Program Dimension (UFARS Manual – Chapter 3) Ø Encompasses all aspects of school district operations, including instructional, administrative and various support activities. Ø Program Code 000 is not a valid code for expenditures. education. state. mn. us 29

Expenditure Coding FD ORG PRG FIN OBJ CRS Program Dimension – Chapter 3, Page 1 Ø Program Code Dimension series of 10 categories: 1) Administration (010 -099) 2) District Support Services (100 -199) 3) Elementary and Secondary Regular Instruction (200 -299) 4) Vocational Education Instruction (300 -399) 5) Special Education (400 -499) 6) Community Education and Services (500 -599) 7) Instructional Support Services (600 -699) 8) Pupil Support Services (700 -799) 9) Sites and Buildings (800 -899) 10) Fiscal and Other Fixed Costs Programs (900 -999) education. state. mn. us 30

Expenditure Coding FD ORG PRG FIN OBJ CRS Finance Dimension (UFARS Manual – Chapter 4) Ø Used to record revenues and expenditures that relate to an activity funded by a categorical aid or levy* – revenue limited by: § Minnesota Statutes § Federal Regulations. Ø Must be used in all cases for revenues and expenditures which relate to a restricted/reserved fund balance. * Categorical Aids or levy – Categorical revenue formulas are generally used to meet costs that vary significantly between district (i. e. , special education) or promote certain types of programs (i. e. career and technical aid, adult basic education aid). Safe Schools is a categorical levy. education. state. mn. us 31

Expenditure Coding FD ORG PRG FIN OBJ CRS Finance Dimension has 10 Categories (FY 2015): 1) District Wide (000) 2) State Supported Programs (300 series) 3) ARRA Targeted and Federal Formula Grants (400 & 600 series)¹ 4) Federal Aid Received Directly from Federal Sources (500 series) 5) Child Nutrition (701 -710) 6) Transportation (711 -739) 7) Special Education (740 -760) 8) State Placement (761 -770) 9) Levy Supported Programs (771 -799) 10) Federal Competitive Grants (800 & 900 series excluding 830 & 835) Ø Career & Technical Education & School-To-Work (830 & 835) education. state. mn. us 32

Expenditure Coding FD ORG PRG FIN OBJ CRS Object Dimension (UFARS Manual – Chapter 5) Ø Identifies the service or commodity obtained as the result of an expenditure. ü This is the most detailed dimension ü “ 000” can not be used in the expenditure coding ü The object dimension has 8 major categories OBJECT DIMENSIONS Salaries & Wages (100 series) Capital Expenditures (500 series) Employee Benefits (200 series) Debt Service (700 series) Purchased Services (300 series) Other Expenditures (800 series) Supplies & Materials (400 series) Other Financing Uses (900 series) education. state. mn. us 33

Expenditure Coding FD ORG PRG FIN OBJ CRS Course Dimension (UFARS Manual – Chapter 7) Ø Limited number of course codes assigned to a specific purpose § § § Course dimensions assigned for designated years (000 -010) Course dimensions assigned to track federal grants (000, 011 -015) Birth to Two SPED Maintenance of Effort (MOE) (620) AYP Schools Set Aside Codes (621 -639) Staff Development – SPED & Federal Programs– Title I set-asides (640 -642) § School Improvement Implementation Set-Aside (667 -669) § Alternative Facilities Projects (016 -619, 643 -666, 670 -999) § Student Activity (900 Series) education. state. mn. us 34

Expenditure Coding Course Code Matrix – State Fiscal Year and Federal Award Year State Fiscal Year Federal Award Year 2014 2015 2016 2011 2012 2013 2014 Course Code 012 Course Code 011 Course Code 000 Course Code 012 Course Code 011 2015 Course Code 000 35

Course Codes – Mandatory Set-Asides Title I Set-aside course codes in UFARS – FY 2015 and FY 2016 These course codes should only be used with Finance Code 401, with the exception of 640, 641 and 642 which may be used in Federal Special Education reporting. Current Prior 2 nd Prior Year Course Code (000) (011) (012) Highly Qualified 634 627 621 LEA Level Activities 635 628 622 Neglected 636 629 623 Homeless 637 630 624 Parent Involvement 638 631 625 AYP School Choice / SES 639 632 626 AYP Professional Development 640 641 642 668 669 School Improvement Implementation 667 education. state. mn. us 36

Chapter 10 Grid - Expenditure Coding FD ORG PRG FIN education. state. mn. us OBJ CRS 37

Chapter 10 Grid - Expenditure Coding FD ORG PRG FIN OBJ CRS Permitted Code Combinations (UFARS Manual – Chapter 10) Expenditure codes are divided into two basic categories: 1. Unrestricted – expenditures that use unreserved revenues (Finance Code = 000). 2. Restricted – expenditures that use reserved or restricted revenues (Finance Code ≠ 000). education. state. mn. us 38

Chapter 10 Unrestricted Grid - Expenditure Coding education. state. mn. us 39

Chapter 10 Grid - Expenditure Coding Restricted Finance Grid Ø Used for expenditures that require a finance code because they are funded by federal grants, state aid, or local levy which use is restricted by federal regulations or state statutes. § The restricted grid layout is: Fin – Description – Funds – Organization – Program – Object § The finance dimension is the key dimension of this grid. § Once a requirement for a finance dimension is determined and the finance number has been located on the grid, the remaining allowable expenditure code dimensions can be determined education. state. mn. us 40

Chapter 10 Restricted Grid - Expenditure Coding education. state. mn. us 41

REVENUES education. state. mn. us 42

UFARS CODING STRUCTURE - REVENUE 6 Dimensions 1 FUND 2 Organization 3 Program 4 Finance 5 Source 6 Course FD 2 ORG 3 PRG 3 FIN 3 SRC 3 CRS 3 17 - Digits education. state. mn. us 43

UFARS Manual Overview Chapter – Page 6 education. state. mn. us 44

Revenue Coding FD ORG PRG FIN SRC CRS Source Dimension – Chapter 6, Page 1 – Source Code Dimension series of seven categories: education. state. mn. us 45

Revenue Coding FD ORG PRG FIN SRC CRS Source Dimension (UFARS Manual – Chapter 6) Federal Revenues – Received through MDE and other State Agencies (400 Series) – Federal Revenues Received Directly from Federal Sources – (500 Series) Other Revenues (600 Series) – Local Sales, Insurance Recovery and Judgment – Sale of Bonds and Loans – Incoming Transfers from Other Funds education. state. mn. us 46

Revenue Coding FD ORG PRG FIN SRC CRS Finance Dimension – Used to record revenues as well as expenditures that relate to an activity funded with a categorical aid or levy, or relates to a reserved fund balance. – Each finance code explanation in the manual states whether or not the finance code needs to be used for UFARS revenue reporting. – If a program is entirely state funded, federally funded, or relates to a restricted/reserved fund balance, use the appropriate finance code for both revenues and expenditures. – If state aid payments for a program are combined with state aid for other purposes, and/or revenue for a program consists in whole or in part from property tax levy revenue, the finance dimension need not be used to identify these revenues (only use for expenditures). If there is an associated reserve fund balance, the finance code needs to be used for both expenditures and revenues. education. state. mn. us 47

Balance Sheet Accounts education. state. mn. us 48

UFARS CODING STRUCTURE Balance Sheet Accounts 3 Dimensions 1 FUND 2 BALANCE (GNL) 3 Optional Local Use FD 2 BAL 3 XXX 2 or 3 7 or (8) Digits education. state. mn. us 49

Asset, Liability and Fund Balance Coding FD BAL XXX FUND DIMENSION – Page 1 of Fund Dimension Summary Operating Funds Non-Operating Funds Fund 01 – General Fund 06 – Building Construction Fund 02 – Food Service Fund 07 – Debt Service Fund 04 – Community Service Fund 47 – OPEB Debt Fund Fiduciary Funds Fund 08 – Trust Fund 09 – Agency Fund 45 – OPEB Irrevocable Trust Fund Proprietary Funds Fund 20 – Internal Service Fund 25 – OPEB Internal Service Fund education. state. mn. us 50

Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Asset Accounts Categories Fund Balance Sheet Account Code Current Asset Accounts 01 -09 and 20 101 -139 General Fixed Asset Account Group Fund 20 and Account Group 98 140 -149, 171 -174 General Long-Term Debt Account Group Fund 20 and Account Group 99 150 -162 education. state. mn. us 51

Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Liability Accounts Categories Fund Balance Sheet Account Code Current Liability Accounts 01 -09 and 20 201 -235 Long-Term Liabilities Fund 20 and Account Group 99 250 -262 education. state. mn. us 52

Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Fund Balance Accounts Categories Balance Sheet Account Code Nonspendable 460 Restricted/Reserved 403 -417, 424 -428, 431 -453 Restricted 464 Committed 418, 461 Assigned 462 Unassigned 422, 463 Investment in General Fixed Assets (Account Group 98 only) 430 education. state. mn. us 53

UFARS Overview Summary education. state. mn. us 54

UFARS Overview education. state. mn. us/MDE/Sch. Sup/Sch. Fin/Fin. Mgmt/UFARS/inde x. html education. state. mn. us 55

UFARS CODING STRUCTURE EXPENDITURES 6 Dimensions 1 Fund 2 Organization 3 Program 4 Finance 5 Object 6 Course FD 2 ORG 3 PRG 3 FIN 3 OBJ 3 CRS 3 17 - Digits education. state. mn. us 56

UFARS CODING STRUCTURE REVENUE 6 Dimensions 1 FUND 2 Organization 3 Program 4 Finance 5 Source 6 Course FD 2 ORG 3 PRG 3 FIN 3 SRC 3 CRS 3 17 - Digits education. state. mn. us 57

UFARS CODING STRUCTURE Balance Sheet Accounts 3 Dimensions 1 FUND 2 BALANCE (GNL) 3 Optional Local Use FD 2 BAL 3 XXX 2 or 3 7 or (8) Digits education. state. mn. us 58

Accounting and UFARS Overview 6 Dimensions 17 Digits 3 Dimensions Income Statement Balance Sheet EXPENDITURE AND REVENUE CODES ASSET, LIABILITY, AND FUND BALANCE CODES XX-XXX-XXX-XXX XX-XX 7 (or 8) Digits Expenditure Code Structure FD ORG PRG FIN OBJ CRS Revenue Code Structure FD ORG PRG FIN SRC CRS Asset, Liability or Fund Balance Code Structure FD BAL XX education. state. mn. us 59

Accounting and UFARS Overview REVENUE EXPENDITURE ACCOUNTS GUIDELINE $ $ CLOSING PROCESS AFTER ALL ENTRIES HAVE BEEN MADE BALANCE SHEET ASSETS LIABILITIES FUND BALANCE education. state. mn. us 60

UFARS Submissions • You must have rights to upload the UFARS submission from your Superintendent or other designated authority. • Once rights are given, you must create your user name and password in the UFARS File Upload System. • To locate the UFARS File Upload System, go to the MDE home page, click on School Support, Data Submissions, UFARS File Upload • Your software vendor will ensure your data is in the proper format for you to upload. education. state. mn. us 61

UFARS Year End Reports • Go to the MDE home page, click on Data Reports and Analytics • Scroll half way down the page and locate the School Finance Reports • At School Finance Reports click on the Minnesota Funding Reports (MFR) • Choose your District or Charter School by name or number • See next slide education. state. mn. us 62

UFARS Year End Reports education. state. mn. us 63

UFARS Year End Reports • These 10 reports are the reports that give you all the information you need to determine if your data is correct. • Please review all 10 reports. • The UFARS Turnaround Edit describes all of the warnings and errors that occurred on your most recent data submission. • Note: Each UFARS submission overwrites the prior submission, so if you need that data print or save this information. education. state. mn. us 64

UFARS Software Approval • Minnesota Statutes 125 B. 05 State Information System, Subd. 3 states the following: “A school district, charter school, or cooperative unit may not implement a financial, student, or staff software system until the system has been reviewed by the department to ensure that it provides the required data elements and format. ” • This means a software vendor must go through testing of the UFARS file for new vendors. This process will take at least a year, since we must test the prior year data to ensure the new software is working properly. education. state. mn. us 65

Student Activities • The Manual for Student Activities (MAFA) is found in Chapter 14 of the UFARS Manual. • School District’s need to determine if the Student Activity(ies) will be Under Board Control or Not Under Board Control. Once this determination is made, the MAFA Manual can assist with the proper accounting treatment. • A committee has been working on rewriting the MAFA Manual. This work is almost complete. Please watch for the revised MAFA Manual. education. state. mn. us 66

Questions education. state. mn. us 67

MDE Financial Management Contacts Ø For UFARS Accounting, Manual and Chapter 10 Grid questions, contact the UFARS Helpdesk: MDE. ufarsaccounting@state. mn. us Ø Contact the MDE IT-Helpdesk for technical questions or problems with the MDE website: MDE. helpdesk@state. mn. us education. state. mn. us 68

MDE Financial Management Contacts Sarah Miller Financial Mgmt Training, Credit Enhancement, Statutory Operating Debt (SOD) Education Finance Specialist Division of School Finance Sarah. C. Miller@state. mn. us or 651 -582 -8370 Jenny Charles Charter School Lease Aid, Federal Reporting & Statutory Operating Debt (SOD) Education Finance Specialist Division of School Finance Jennifer. Charles@state. mn. us or 651 -582 -8257 Open Position Consolidated Financial and Profile Reports, CPA Financial Audits, MDE Single Audit, Indirect Cost Education Finance Specialist Division of School Finance Deb Meier UFARS Accounting, Manual & Training, Reporting, MOE, Financial Data Requests Education Finance Specialist Division of School Finance Debra. A. Meier@state. mn. us or 651 -582 -8656 Mary Weigel Supervisor, Financial Management and Reporting Division of School Finance Mary. Weigel@state. mn. us or 651 -582 -8770 education. state. mn. us 69

MARSS Student Contacts Jeanne Krile PSEO, ADM/EDRS Reporting Division of School Finance Jeanne. Krile@state. mn. us or 651 -582 -8637 Roxann Neu MARSS Coordinator Division of School Finance Roxann. Neu@state. mn. us or 651 -582 -8486 Kelly Wosika Student Accounting Division of School Finance Kelly. Wosika@state. mn. us or 651 -582 -8855 Sharon Peck Supervisor, Data Management Division of School Finance Sharon. Peck@state. mn. us or 651 -582 -8811 education. state. mn. us 70

MDE Special Education Contacts Paul Ferrin Special Education Funding, Data & Analysis Acting Supervisor Michael Brooks SERVS Financial & EDRS Application, Tech Assistance & MOE Steve Collins Electronic Data and Reporting Systems (EDRS) Jill Bemis Calculation of State Special Education Aid, Federal Construction Remodeling & Vehicle Approval, ADSIS Michelle Jones Tuition, Child Count & Discretionary Applications SERVS Financial & EDRS Application Send all email inquiries to mde. spedfunding@state. mn. us education. state. mn. us 71

Other Contacts… SERVS Financial • • How to gain access and utilize SERVS Financial – mde. servsfinancial@state. mn. us Error messages and malfunctions when using SERVS – mde. helpdesk@state. mn. us MARSS Student Reporting • Minnesota Automated Student Reporting System (MARSS) contact: Marss@state. mn. us Title Programs • Title Programs – mde. nclb@state. mn. us. Special Education • Special Education Funds – mde. spedfunding@state. mn. us. education. state. mn. us 72