Oklahoma Cost Accounting System OCAS Iona Martin OCAS

Oklahoma Cost Accounting System (OCAS) Iona Martin

OCAS History Began in 1988 pursuant to Senate Bill 372 Organizational Committee – 57 Members 4 Senate and House Legislative Staff Members 1 Higher Education Member 1 Career and Technology Member 1 State Career and Technology Staff Member 3 County Superintendents 1 State School Board Representative 3 Independent Certified Public Accountants 1 Consultant 14 State Department of Education Staff Members 24 School District Personnel 5 Vendors

OCAS History Eleven Test Schools Amber-Pocasset Public Schools – Grady County Bartlesville Public Schools – Washington County Byng Public Schools – Pontotoc County Enid Public Schools – Garfield County Frederick Public Schools – Tillman County Indianola Public Schools – Pittsburg County Keystone Public School – Tulsa County Mc. Alester Public Schools – Pittsburg County Muldrow Public Schools – Sequoyah County Muskogee Public Schools – Muskogee County Texhoma Public Schools – Texas County

OCAS History In May, 1991, pursuant to House Bill 1236 codified new law under Section 5 -135. 2 of Title 70 as the Oklahoma Cost Accounting System Full implementation of OCAS began July 1, 1992 1991 -92 – All funds except the School Activity Fund 1992 -93 – All funds Districts in noncompliance with OCAS may be penalized.

Why Was OCAS Established? To provide a standardized accounting and reporting of revenue and expenditures To maintain a system of accountability Improved comparability Enhanced data support Collection Analysis Application Reporting Based on the federal handbook, Financial Accounting for Local and State School Systems, Revised 2009

Duties of the Financial Accounting Section Facilitate the final design of a true and fully integrated coding system Provide both initial and ongoing training to school district personnel Establish and maintain a system of accountability

Why Use OCAS ? Oklahoma State Statute 70 § 5 -135. 2 It’s The Law !!! Oklahoma Administrative Code State Department of Education Rules for Finance Title 210: 25

Non-Compliance to OCAS Definition Not accurately recording and reporting all revenue and expenditures by applicable OCAS bold code dimensions Not ascertaining that current, accurate, and applicable OCAS codes are being utilized Not complying with regulations regarding the following: Financial Information Processing – OAC 210: 25 -3 -7 Encumbrance Clerk – OAC 210: 25 -5 -10 School District Treasurer – OAC 210: 25 -5 -11 Purchase Order Procedures – SLO, Section 98 School Activity Fund – OAC 210: 25 -5 -13

Non-Compliance to OCAS Definition Not reconciling all recorded and reported revenue and expenditures by applicable OCAS bold code dimensions Bank receipts and statements Purchase orders Warrant registers Investment ledgers All balance sheet accounts Not submitting and certifying the year-end revenue and expenditure reports by September 1 of each year

Non-Compliance to OCAS Penalty Monthly State Aid payment reduced as follows: First Payment 1% Second Payment 2% Third Payment 3% Fourth Payment 4% Subsequent Payments 5% Penalty may be waived by the State Board of Education District made every effort possible to become compliant Failure was due to circumstances beyond the district’s control

OCAS Defined Permits local education agencies (LEAs) to accumulate expenditures and revenue to meet a variety of specialized management and reporting requirements, regardless of whether they are district, state, or federal.

OCAS Expenditure Coding Line Project Job Oper’l. FY Fund Reporting Function Object Program Subject Class Unit XX XX XXX XXXX XXX XXX Coding line must be 27 digits Cost shall be reported by curricular subject where applicable, with the exception of function 1000, which requires a subject code for all payroll and benefits (Object 100 and 200 Series). A program code is required for all expenditures coded to function 1000.

OCAS Revenue Coding Line FY XX Fund XX Project Reporting XXX Coding line must be 17 digits Source of Revenue XXXX Oper’l. Program Unit XXX

Fund A fiscal and accounting entity, with a self-balancing set of accounts recording resources, liabilities, residual balances or changes therein. 10 General Funds 20 Special Revenue Funds 30 Capital Project Funds 40 Debt Service Funds 50 Endowment Funds 60 School Activity Fund 80 Trust And Agency Funds

General Fund Revenue State Dedicated Registration or license fees Taxes Penalties State Appropriated County Sources Gifts, Grants or Donations for Noncapital Expenditures

General Fund Noncapital Expenditures Maintenance, repair and replacement of property or equipment Initial or additional purchases of furniture and equipment Direct expenses for maintenance of plant, including grounds Salaries for maintenance of plant, including those for upkeep of grounds

General Fund Noncapital Expenditures Repair and replacement of building structures if: Do not add to existing facilities No changes in roof structures or load-bearing walls Not classified as a capital expenditure

General Fund Capital Expenditures Purchases of land or existing buildings Purchases of real property Improvements of grounds and sites for construction purposes Expenditures for construction of buildings Additions to buildings

General Fund Capital Expenditures Remodeling of buildings if changes in roof structures or bearing walls are made load- Architects and Engineers hired or assigned to capital projects Does not include expenses for preparation of bond issue Initial installation and extension of service systems and in heat or air equipment to existing buildings built- Expenditures for the replacement of a building which has destroyed been

General Fund Capital Expenditures Architects and Engineers hired or assigned to capital projects Does not include expenses for preparation of bond issue Installments and lease payments on property, including interest that have a terminal date and result in the acquisition of property This would be the final payment on a lease-purchase Expenditures for preliminary studies made prior to the time that authority to proceed with a construction project is give if authority is received within the same fiscal year that the expenditure was made.

Building Fund Revenue Proceeds of a building fund levy Not to exceed five mills in any year Monies appropriated by the state for the purpose of capital expenditures or projects Monies allocated to a school district by the SBE for the Public School Building Equalization Fund Gifts or donations for capital projects or improvements State

Building Fund Expenditures Erecting, remodeling, repairing or maintaining school buildings Purchasing furniture, equipment and computer software to be used on or for school district property Repairing and maintaining computer systems and Paying energy and utility costs equipment

Building Fund Expenditures Purchasing telecommunications utilities and services Paying fire and casualty insurance premiums for school facilities Purchasing security systems Salaries of security personnel Acquisition, design, construction and maintenance of a school building parking lot

Building Fund Expenditures Salaries of maintenance and janitorial personnel Acquisition of school building site Purchase band instruments Acquisition, design, construction and maintenance of a facility. sports

Sinking Fund Revenue Money derived from ad valorem taxes or otherwise as provided by law. Expenditures Bond payments Judgments Interest on judgments or bonds

Project A dimension which permits districts to accumulate expenditures to meet a variety of specialized management and reporting requirements, regardless of whether they are district, state, or federal. Expenditures and revenues may be accumulated under individual projects with the flexibility of accommodating additional projects that districts might wish to account for on a permanent or temporary basis.

Project 000 Noncategorical Funds (Local and County) 001 – 298 Assigned for local tracking purposes 300 Series State Programs 400 Series Vocational Programs 500 Series No Child Left Behind 600 Series Special Education 700 Series Other Federal Sources 800 Series School Activity Fund 801 -998 Assigned for activity fund subaccounts

Function The activity being performed for which a service or material object is required. 1000 2000 3000 4000 5000 7700 7800 7900 Instruction Support Services Operation of Noninstructional Services Facilities Acquisition and Construction Services Other Outlays Other Uses Flexible Benefits Long-Term Disability Claims Other Uses (to be assigned by district)

Object The service or goods obtained. 100 Personnel Services – Salaries 200 Personnel Services – Employee Benefits 300 Contracted Services 400 Purchased Property Services 500 Other Purchased Services

Object 600 Supplies 700 Property 800 Other Objects 900 Other Uses of Funds

Program The plan of activities and procedures designed to accomplish a predetermined objective. 000 200 300 500 700 800 Undistributed Expenditures Regular Programs Special Programs Vocational Programs Other Instructional Programs Continuing Education Programs Community Services Programs Child Nutrition Program Athletic Programs – Competitive Cocurricular and Extracurricular Activities 100 400 600 900

Subject A group of related subjects which allows accumulation of costs in particular academic or curricular subject areas. 0000 Nonsubject 1010 -1050 Pre-Kindergarten through 8 th Grade (Self-Contained) 1060 High School Special Education (Self-Contained) 1100 -2300 Elementary Education – Departmentalized 2400 -5700 9 th Grade through 12 th Grade 8000 -9000 Career and Technology Education

Job Class A classification used to identify expenditures for salaries and employee benefits by employee’s job. 000 100 200 300 400 500 600 700 800 900 Nonsalary Official-Administrative Professional-Educational Professional-Other Paraprofessional Technical Office/Clerical Support Crafts and Trades Operative Laborer

Operational Unit (Site Code) A classification used to identify the accredited instructional site according to grad span or the nonaccredited/ noninstruction site at which personnel serve the entire district. 050 100 -499 500 -599 600 -699 700 -799 970 -989 998 Districtwide Services Elementary Middle School Junior High Senior High Charter Schools Cooperative Sites

Source of Revenue A segregation of revenues. The primary classification differentiates district, intermediate, State and Federal revenue sources. Revenues from restricted sources would be further classified using the Project Reporting dimension. 1000 2000 3000 4000 5000 6000 District Sources Intermediate Sources State Sources Federal Sources Nonrevenue Receipts Balance Sheet Accounts

Who Uses The Data? National Center for Education Statistic Per Pupil Expenditure Maintenance of Effort United States Census Bureau Governor’s Budget Special Education – Program 239 Excess Cost Maintenance of Effort Child Nutrition – Program 700

Who Uses The Data? State Programs Gifted and Talented – Program 251 Alternative Education – Program 430 Administrative Cost General Fund Carryover Penalty Per Pupil Expenditure Legislative Requests

OCAS Coding Committee Formed in Spring 2012 14 Members 9 School Practitioners Roger Adair, Moore-Norman Career Tech Brenda Burkett, Norman Public Schools Donna Carlberg, Mid-Del Public Schools Tim Green, Bartlesville Public Schools Debbie Secrest, Seiling Public Schools Cindy Shiever, Enid Public Schools Ann Wade, Oklahoma ASBO Karl White, Enid Public Schools

OCAS Coding Committee 5 SDE Staff Members Joel Robision, Chief of Staff Mathangi Shankar, Director of Financial Services Nancy Hughes, Executive Director, Financial Accounting Pam Honeysuckle, Financial Specialist, Financial Accounting Iona Martin, Financial Specialist, Financial Accounting