2021 School Finance & Budget Webinar

 
CONTINUE READING
2021 School Finance & Budget Webinar
7/1/2021

                                          2021 School
                                           Finance &
                                        Budget Webinar

                                                 Revised 7.1.21

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     Webinar Link:
     https://www.education.ne.gov/fos/webinars/

     PowerPoint Slideshow Handout:
     https://www.education.ne.gov/fos/webinars/

2

     Auditor of Public Accounts

    Jeff Schreier – Senior Auditor-In-Charge
    jeff.schreier@nebraska.gov
    402.471.2111
    auditors.nebraska.gov

                                                            June 2021

3

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2021 School Finance & Budget Webinar
7/1/2021

        No major changes to budget forms for
        2021-2022

        Budget still due to State Auditor, NDE,
        and County Clerk by September 20th

                                         Good News!

4

        New Legislation

    • LB 148 – Applies to Budget Hearing only
       • Hearing shall be held separately from any regularly scheduled
         meeting and shall not be limited by time
       • At least 3 copies of the proposed budget must be available to the
         public
       • Presentation must be given outlining key provisions of the
         proposed budget, including, but not limited to, a comparison with
         the prior years budget
       • Any member of public desiring to speak on the proposed budget
         shall be allowed to address governing body and given a reasonable
         amount of time to do so.
       • Requires public body to record the method and dates of meeting
         notice in the minutes

5

       New Legislation

       • LB 644
          • Operative Date is not until January 1, 2022
          • No impact on 2021 budget season
          • More information to come next year

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2021 School Finance & Budget Webinar
7/1/2021

    New Legislation – Audit Reports

    • LB 368 – Audit Report Filing
    • If a political subdivision required to file a report
      with the Auditor of Public Accounts fails to file
      such report by the applicable due date, the
      Auditor of Public Accounts may assess the political
      subdivision a late fee of twenty dollars per day
      for each calendar day the required report remains
      not filed. … The total late fee assessed…shall not
      exceed two thousand dollars per filing.

    • School District audits due by November 5th

7

                                      • We make budget forms available as soon as
                                        possible
        When are                         • Must wait until the legislative session is
         Updated                           complete to ensure no updates needed to
                                           the forms
     Budget Forms                            • Odd Years – 90 day session
                                             • Even Years – 60 day session
        Available?                    • Please notify us if you identify any issues with
                                        the budget forms

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2021 School Finance & Budget Webinar
7/1/2021

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     Confirmation of receipt

     • If filed electronically by website
         • Receive confirmation
         • Please keep confirmation as support for filing

     • If filed by email or mail
         • No email response or confirmation

11

                                       • Sample form was added to budget document
                                         to bring in necessary information
        Property Tax                   • This is a sample form only, it is not a required
            Request                      form
                                       • If using sample form in budget document as
          Resolution                     final property tax request resolution, each
                                         School District should review to ensure the
                                         accuracy of all information included

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2021 School Finance & Budget Webinar
7/1/2021

     Budget Checklist

     • “Checklist” tab included in budget forms
     • Please review this checklist prior to submitting budget forms
          • Reduce the likelihood of hearing from our staff

     • No news is good news. If you do not hear from our office, no issues were
       identified during our review

13

 Tax Request Timeline
     •   September 1, 2021 – New fiscal year starts
     •   September 20, 2021 – Budget Adopted
     •   December 31, 2021 – Taxes Due
     •   May 1, 2022 – 1st half delinquent (April 1 for Big Three)
     •   September 1, 2022 – 2nd half delinquent (August 1 for Big Three)

     • What this means is School Districts are 8-9 months into the fiscal year before
       they start seeing a significant amount of property taxes come in that were
       levied as a part of that budget
         • Most likely not a significant impact if tax request remains consistent from
           year to year.
         • If tax request was increased significantly to fund the budget, could run into
           cash reserve problems

     • Money in budget ≠ Money in the bank

14

     Budget Error Corrections

     • Clerical, mathematical or accounting errors that:
        • Do not affect total amount budgeted by more
          than 1%
        • Do not increase property tax amount
        • Are within 30 days after adoption or
          notification by auditor
     • No required hearing
     • Must file corrected copy with State Auditor and
       County Clerk

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2021 School Finance & Budget Webinar
7/1/2021

     Adopted budget different than publication

     • Statute 13-506
     • If budget adopted is different than what was published, need to
       publish a summary in same manner as original publication within
       20 days after adoption

16

     Budget Amendments

     • Amendments must be made prior to end of the fiscal year
     • Must file amendment with State Auditor, NDE, and County Clerks
     • Example and instructions can be found on State Auditor website
     • Required to submit:
        • Pages of Budget that changed; do not need complete budget
        • Board Minutes approving amendment
        • Proof of Publication for Amendment Hearing

17

 • Form listing all agreements due by September 20;
   Typically filed w/ budget forms
     • Must include all interlocal agreements the school
       was involved w/ during the period July 1, 2020 –
       June 30, 2021
                                                               Interlocal
 • Not required to file actual agreements at this time, but   Agreements
   you should know where they are filed at your school

 • Penalty for filing form late
     • Notice of delinquent filing can be by fax, email or
       mail
     • Beginning on date of notice, late fee of $20 day
     • Late fee shall not exceed $2,000 per delinquency
     • If fail to report, State Auditor can perform audit
       and charge costs of audit to subdivision

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2021 School Finance & Budget Webinar
7/1/2021

 • What are they?
    • Agreements the School has with another
      government entity. (Do not include Non-Profits)
    • Examples would be an agreement between:
        • School and ESU
        • School and another School                          Interlocal
        • School and City                                   Agreements
 • How to find them
    • Look at vendors list –Are you paying another
      government entity
    • Look at receipts –Are you receiving payment from
      another government entity based on an agreement
    • Not always associated with receipt or
      disbursement, watch for agreements that share /
      exchange services

19

     Questions?

Nebraska Auditor of Public Accounts
Jeff Schreier – Senior Auditor-In-Charge
402.471.2111
Jeff.Schreier@nebraska.gov
auditors.nebraska.gov

20

                                                        State Aid

                                                        Kevin Lyons

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2021 School Finance & Budget Webinar
7/1/2021

           Lump-Sum Payment for
     2020/21 Positive Prior Year Correction

                    Equal to or Greater than $1,000
                    • On or before July 15 - NDE notifies district

                    • Must respond by August 15

                    • On or before September 15 - District notification of
                    board approval

                    Less than $1,000
                    • NDE makes payment without application

22

  Statement of Change in School District
 Boundaries due to Annexation by a City
                or Village

                               Forms available upon request

                                 Kevin Lyons
                                 Director of School Finance
                                 kevin.lyons@nebraska.gov
                                 402-450-1418

                                  Forms Due: AUGUST 20

23

      TEEOSA Document
                                                              Decodes
                                                              the components of
                                                              Equalization Aid

                                                              Resource
                                                              for more detailed
                                                              information

                                                              Available
                                                               on NDE’s website

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2021 School Finance & Budget Webinar
7/1/2021

          PORTAL     TEEOSA DATA SYSTEMS

                                 CDC (Consolidated Data
                                 Collection)
                                    • Instructional Program Hours
                                    • Pupil Transportation Report
            NDE

                                           Due Date: June 15
                                         Audit Window: June 30

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                     TEEOSA DATA SYSTEMS
          PORTAL

                                                    ADVISER
                                        Nebraska Public and State Operated
                                        Districts: submission of data from their
                                        local Student Information System (SIS)
                                        to Advisor.
                                            • Fall Membership
                                            • Average Daily Membership

            NDE                         NDE’s Focus
                                           • State Aid
                                           • SPED

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     2021/22 Recalculation
                   CERTIFICATION
         • Fall Membership
         • Assessed Valuation
         • 2019/20 Annual Financial Report (AFR)

                                        RECALCULATION
                         • Average Daily Membership (ADM)
                         • Certified Valuation
                         • Amended 2019/20 Annual Financial Report (AFR)
                           Due: July 15th

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2021 School Finance & Budget Webinar
7/1/2021

     2021/22 Recalculation

         2021/22 Certification

                                                         2021/22 Recalculation

                                     Local Effort Rate
                                     Balancing Factor

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     Prior Year Correction

                                                          2020/21
                                      DIFFERENCE

          2020/21 Certification                          Prior Year
                                                         Correction

                                                           2021/22
          2020/21 Recalculation                          TEEOSA Aid

29

                LEP Poverty
          Expenditure Requirement

            2020/21                                 2022/23
           Expenditures                            Expenditures
      • 117.65% level of             • Report this fall
        Expenditures                    • Sept 1 – Oct 15
      • Coding                       • CDC Collection –
      • Reports available              Estimated Expenditures
        identifying required level     for LEP and Poverty
      • Assist with 2019/20 AFR

30

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7/1/2021

      Fall Membership Reporting

        • Section 79-528:
           • Fall school district
             membership reported as of
             October 1

        • Section 79-1003:
           • Qualified early childhood
             education fall membership
             reported as of October 1

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                      Kevin Lyons
              Director of School Finance
     School Finance and Organizational Services
              kevin.lyons@nebraska.gov
                     402-450-1418

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                                School District
                                Budget & LC-2

                                     Janice Eret

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                                                        11
7/1/2021

                                  • Budget Text
  Budget                          • Budget Timelines
  Information
                                  • Expenditure Exclusion Templates
  Available on
  FOS Website                     • State Board Filing Deadlines
                                  • Expenditure Exclusions Approved
                                    by State Board of Education
                                  • Link to Auditor of Public Accounts
                                    Website

34

                      Budgeting Reminders
 • Enter the correct State Aid           • County Treasurer’s Balance
   Amount from State Aid                    • Estimate from prior years
   Certification Document

                                         • Beginning and Ending Balances
                                            • Use actual balances from audit
 • Motor Vehicle Taxes                      • Second column of worksheet can
                                              be used to reach the desired levy.
     • Similar to previous year

35

                        Budget Worksheets

                                        • Use Budget Worksheet pages to
                                          enter budget information

                                        • Formulas move info to the
                                          Cover Page and the Summary
                                          Pages

                                        • Do not key into the Summary
                                          Pages (p. 2‐4)

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7/1/2021

              Lid Computation Form (LC-2)
                Activation Code to access in NDE Portal
                     • New activation code every year

                New Superintendent this year?
                     • Register in NDE Portal
                     • Obtain Activation Code for LC‐2

                Need help with NDE Portal?
                  888‐285‐0556 ADVISERHelp@nebraskacloud.org

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                                                        Confirm your budget
                                                          meets spending
                                                      limitations & allowable
                                                        reserve percentage

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            Access Unused Budget Authority

                                                                     4,245,444

     Access to Prior Year’s Unused Budget Authority
     [Maximum Amount: $52,872]

                                                                     4,245,444
     Provides Additional
     Budget Authority for                                            4,245,444

     2020/21                                           Must manually enter
                                                      amount on Line A‐355

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7/1/2021

         Need More Budget Authority?
 • Hold public vote to exceed       • Amount approved by public is
   Certified Budget Authority         for one school fiscal year.

 • Ballot language must include     • Must budget the total amount
   statement to include access to     approved to carry over for
   expenditure exclusions             future years.

                                    • Include voter‐approved amount
                                      into Section B of LC‐2

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     New Section in LC-2

41

      Levy Overrides

                                                           1.25
                                                             5
                                                          2018/19
                                                          2023/24

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                                                                           14
7/1/2021

 Total Allowable
     Reserves
                                                     Employee
                                Depreciation        Benefit Fund
 • Budgeted figure                 Fund              Necessary
                                                    Cash Reserve
 • Helps with district
  cash flow
                                       General Fund
 • Not cash in the bank                 Necessary
                                       Cash Reserve

43

 Calculation of Total Allowable Reserves

     Allowable Reserve Percentage is based on a District’s ADM

        General Fund Budget                    $10,000,000

        Allowable Reserve Percentage                    35%

        Total Allowable Reserves               $ 3,500,000

44

      LC-2 Error
      Messages              • Access to Prior Year’s Unused
                              Budget Authority Exceeded

                            • Budget Authority Exceeded
     LC‐2 Cannot be
     submitted with         • Allowable Reserves Exceeded
     error messages!
                            • Levy Info Doesn’t Match

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                                                                        15
7/1/2021

     Property Tax
      Resolution
 Specifies tax request
 for each taxing fund

     Pre-populates info
      through Budget
         Document

 Due to County Clerk
   by October 12

46

                          • LC‐2 Upload Feature appears after
     Submitting             clicking “District Approval.”

     the budget           • Budget documents as pdf must be
     documents              uploaded through the LC‐2.
                            • Upload a single pdf with all documents
       to NDE
                          • Confirmation email sent after budget
                            documents are uploaded

                          • Mailed budget documents will not be
                            accepted.

47

 Need to Amend
                          • Refinancing bonds to get a lower
   the 2020/21              interest rate?
     Budget?
                          • Summer building projects costing
                            more than expected?

                          • Lunch & Activities Funds are
       Must hold            frequently amended in the summer
      hearing to
     amend before         • Now is the time to review year‐to‐
      August 31             date spending on all funds.

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7/1/2021

                  Amending the Budget

 • All Funds must be amended             • Documents required:
   before being overspent                   • Proof of Publication
                                            • Board Minutes
                                            • Page 2 of Budget Document
 • Hearing Notice To Amend
     • Budget as originally adopted
     • Proposed amended budget               • Submit documentation to:
     • Rationale for amending                   • State Auditor
     • Include statement “Will not impact       • County Clerks
       the tax request for the current year”    • NDE

49

 Amend LC-2 when these
 funds are amended:

 • General Fund
 • Depreciation Fund
 • Employee Benefit Fund Cash
   Reserve

 Allowable Reserves Will Be
 Impacted

50

                               Expenditure exclusion requests sent in?
     Budgeting                 Use LC‐2 while working on budget.
     Checklist
                               Is the budget within spending & levy
                                limits?
                               Does the LC‐2 & budget match
                               Does hearing notice match the budget
                                doc?
                               Publish hearing notices

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7/1/2021

                   Did the hearing notice actually get
     Budgeting      printed in newspaper?

     Checklist     Reserve adequate time for public
                    comment at budget hearing
                   Approve LC‐2 after board approves
                    budget
                   Submit budget doc to NDE, APA, Clerks
                   Submit Tax Resolution to County
                   Tax Request set correctly?

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                   • Review budgets to avoid
                     overspending

     End of Year   • If spending authority remains in
                     General Fund, may want to transfer
       Budget        to other funds:
                        Depreciation Fund
     Reminders          Employee Benefit Fund
                        School Nutrition Fund
                        Activity Fund
                   • Unspent General Fund budgeted
                     authority will increase 2021/22
                     Beginning General Fund Cash
                     Balance.

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                               Budget
                           Levy & Spending
                              Exclusions

                            Michelle Cartwright

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                                                                 18
7/1/2021

                    General Fund Exclusions

     Levy Exclusions                            Expenditure Exclusions

     • Allows districts to levy more            • Allows districts to spend more
      than the $1.05 levy limit                  than their Certified Budget

     • Found on Budget Schedule B                authority

     • No State Board Approval                  • Most need State Board Approval

      needed

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                                    • Bond Principal & Interest
                                       • General Fund
     Levy                              • Bond Fund
                                       • Qualified Capital Purpose Undertaking Fund

     Exclusions                     • Voluntary Terminations
                                       • General Fund

                                    • Judgments not covered by liability
                                      Insurance
                                       • General Fund

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 General Fund Expenditure Exclusions
            State Board Approval Not Required for:
        • Special Education Budget
               • Includes SPED Transportation

        • SPED‐Related Student Services (21XXs, excludes 219X’s)
               • Physical Therapy
               • Occupational Therapy
               • Visual Impaired
               • Psychological Services
               • Speech Path & Audiology

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7/1/2021

        General Fund Expenditure Exclusions
               State Board Approval Not Required for:
 • Special Grant Funds
       • Programs pre‐approved each year by State Board
       • Found in LC‐2 (Sec B, line B‐110)
       • 60+ listed, commonly used programs
           • Title Programs
           • IDEA (use PY to estimate)
           • State Programs
           • ESSERs I,II, and III

58

 Supplemental                            * Insurance Settlements
 Grants on the                           * Inter‐fund Loans
 Special Grant                           * Reimbursements for Wards of the Court
 List                                    * Repayments to County Governments for
                                           Previous Overpayments
                                         * Short Term Borrowing
 Appear at bottom of Special             * Grants from City or County Government
 Grant Fund List with *
                                         * Grants from Corporations, Foundations,
 Need State Board Approval                 or Other Private Interests
     >email requests to Michelle
     >include name, amount, & purpose

59

 Pre-populated
 Grants on LC-2                           • New Elementary Attendance Site(s)

                                          • 2020/21 Early Childhood Education
 Need State Board Approval                  Grants

 Remains in the base for                  • Retirement Incentive/Staff Development
 calculation of future                      for newly consolidated districts
 budget authority

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                                                                                          20
7/1/2021

        New Elementary Attendance Site(s)
                      Exclusion is for costs related to first
                      year of operating a new elementary
                      attendance site(s).
                        • District would have to qualify for the
                          State Aid Elementary Site Allowance
                        • Salaries for all staff in the new site(s)
                          (certificated and non‐certificated)
                        • Utilities
                        • Building maintenance

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         Early Childhood Education Grants

                   Eligible if 2021/22 is first year early
                   childhood membership is included in
                   district’s formula students.
                     • Expenditure exclusion is equal to 2020/21
                       Early Childhood Grant increased by 2.5%
                       BAGR (Basic Allowable Growth Rate)

                     • Eligible districts will be contacted by NDE

                     • Template Available on FOS Website

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     Early Childhood Education Grant Template

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                                                                           21
7/1/2021

       Retirement Incentive & Staff Development

                                   Only newly merged or reorganized
                                   districts for the 2021/22 school year are
                                   eligible
                                   • No districts qualify this year

                                   • Exclusion is for costs related to establishing a
                                     retirement incentive program and staff
                                     development assistance

64

 Schedule A

 Need State Board Approval
     >email requests to Michelle

65

        Repairs to Infrastructure Damaged by
                  a Natural Disaster

                                     Must be declared a disaster by Governor
                                     or FEMA

                                     • Flooding

                                     • Tornados

                                     • Wildfires

66

                                                                                             22
7/1/2021

        Judgments Not Covered by
            Liability Insurance

                 • Judgment entered against a District
                   that obligates the district to pay

                 • Does not include Orders from the
                   Commission of Industrial Relations
                   (CIR)

67

        Distance Education Courses

                 • To qualify, a district must be
                   providing distance education course
                   through ESU Coordinating Council to
                   other schools

                 • Exclusion is the amount actually
                   received as payment from another
                   school

68

     Voluntary Termination Agreements

                       Exclusion is for amount paid for
                       agreements during the 2021/22 year
                       • For certificated teachers only
                           • Up to $35,000 per person
                               • Does not have to be cash could be insurance coverage

                           • Incentives paid within 5 years or prior to teacher
                             being Medicare eligible – whichever comes first
                           • Must show 5‐year savings
                           • Cannot be included in a collective bargaining
                             agreement
                       • Template available on FOS website

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7/1/2021

          Retirement Contribution Increase

                                 Exclusion is for the difference
                                 between the district’s contribution
                                 rate of 9.88% and the statutory rate
                                 of 7.35%
                                 • Template available on FOS website

70

             Native American Impact Aid

                          Aid received each year may fluctuate,
                          request what you anticipate to receive.
                          Available to districts:
                          • with Native American land within
                            district boundaries
                          • and receive Federal Impact Aid due to
                            students residing on Native American
                            Land.

71

 Available
 Templates

 >Found on FOS
 Website
 >Calculate for you

     https://www.education.ne.gov/fos/budgeting‐school‐district/

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7/1/2021

                     Send requests to NDE via email
                       • Provide details of the grant
     Requesting          request
                          • Name and purpose of grant
     State Board          • Amount of grant
                       • Use templates provided on FOS
                         Website
      Approval         • Round all amounts

                     May include in budget planning
                     before State Board Approval is
                     posted.

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                           Filing            State Board
     Timeline to          Deadline          Meeting Date

     Request
                        July 20, 2021       August 6, 2021

     State Board       August 17, 2021     September 3, 2021

     Approval         September 21, 2021    October 8, 2021

                       October 19, 2021    November 15, 2021

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     Email Exclusion Requests To:

     michelle.cartwright@nebraska.gov

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                                                                    25
7/1/2021

 State Board
 Approval on
 FOS Website

 Posted within 5
 working days after
 State Board Meeting

76

               Enrollment Option Program

 https://www.education.ne.gov/fos/enrollment‐option‐application‐instructions‐faqs/

77

              Enrollment Option Application
                                        • Application revised every year
                                        • Use most current version
                                        • Spanish version now available for:
                                           • Application
                                           • Instructions
                                           • FAQ’s
                                        • Districts retain application until student
                                          graduates or reaches age 21
                                        • Don’t hesitate to reach out to NDE with
                                          questions
                                           • Michelle Cartwright
                                               • michelle.cartwright@nebraska.gov / 402.450.0867
                                           • Kevin Lyons
                                               • kevin.lyons@nebraska.gov / 402.450.1418

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7/1/2021

                           Annual Financial
                               Report

                                       Bryce Wilson

79

      AFR Coding Information

         Acct Structure/USERS’ Manual
           • Available ‐ FOS Website
           • Identifies major changes at the front

         Final Master Code List for 2020/21
           • Posted in June on FOS Website
           • Additional codes
              • Legislative Changes
              • New State or Federal Programs

80

     2020/21 Master Code List
 • ESSER Functions:
      • Revenue 4996, 4997, 4998
      • Expenditure 6996, 6997, 6998

 • GEERS funds – 4530 Other Federal Categorical Receipts

 • Functions Eliminated: 4515, 4512, 4519 and 6405

 • Object codes 431/432 Non‐Technology and Technology Related Repairs and Maintenance –
   added to most function codes
 • Object code 510 Student Transportation Services added to most Federal grant expense
   codes as well as Poverty and LEP functions
 • Object code 621 Utility Energy Services added to most functions

 • Object code 626 Fuel added to most functions

81

                                                                                               27
7/1/2021

 Clarification: Object Codes XX0 & XX6
 XX0 Non‐Instructional Staff                        XX6 Professional Directors
 • Non‐certificated professional &                 • Non‐certificated professional
   support staff                                     employees
 • Work in non‐instructional areas                 • Work in non‐instructional areas
 • Non‐supervisory professional                    • Include only individuals that
   personnel                                         direct/supervise departments
 • May hold a professional degree,                 • Holds a professional degree, license,
   license, certificate                              certificate
 • Examples of job types:                          • Examples of job titles:
     • Clerical staff     • Transportation staff    • Business Manager        • Technology Director
     • Kitchen staff      • Custodial workers       • Finance Director/CFO    • Network Admin
     • Accounting clerk   • Nurse                   • Director of Personnel   • Head Dietician

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        Next Step….
        • Upload test file into Test Site When Available
             Confirm coding used will be accepted by AFR System

             Identify codes that are invalid

             Contact us if you have questions about Invalid Code
              message

83

                                                                When system has
                                                              completed processing
                                                                info, click “View
                                                              Data” to move to next
                                                                       steps

 PROCESS COMPLETE

84

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7/1/2021

                                                        Three Steps in AFR Upload
                                                        Process:
                  District Number: 99‐9998‐000          • Building/Contents Value
                    District Name: SAMPLETOWN           • Beginning/Ending
                   District Phone: (402)999‐9999
                                                          Balances
                                                        • Reports

                                          Not Started

85

                 Report Display Page

     NEW Report – SPED Expenses Qualifying for State
            Reimbursement (FFR eligible)

86

      Per Pupil Costs – School Level

87

                                                                                         29
7/1/2021

     Issues with Per Pupil Cost Components
     Building and content information not entered correctly
     when submitting 2019/20 AFR
     Pre‐School costs coded inappropriately:
        Some districts coded to Function 1100 Regular Instruction
        Should be coded to either:
          1190 Early Childhood Education
          1195 Regular Instruction Birth to Age 5 Flex

88

      Value of Building & Contents
 Included in Per Pupil Cost Calculations
      • 3% of Total Value of Building & Contents

 Enter Value of Building & Contents by District and by School
 – Insurable value may help determine value
 District includes all facilities other than actual school
 instructional buildings
      • Bus Barn
      • Administration Building – if separate
      • Athletic Fields

89

Allocating District Expenses

 School level allocations
      • Districts determines amount for each school
         Account reported with school number (12-0125-003)
         More accurate information
      • NDE automatically allocates by ADM if reported
        with district number (12-0125-000)
         Districts can change NDE allocations if not
          appropriate

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                                                                          30
7/1/2021

      2019/20 AFR Amendments
     Similar amendment process to prior years(Must be
     submitted to us by July 15st):
       • Submit proposed amendment information
          Coding and amounts to be changed
          School Level information

       • District auditor emails statement to NDE
          Use audit firm email
          Brief description of need to amend
          Confirm the amendment is appropriate

91

     2019/20 AFR Amendments
     Complete Amendment Template

       School Level must be included
       Per Pupil Costs are not affected by amendments

92

 Reason for Amendments - SPED
     • SPED –
       • FFR/AFR discrepancies
       • Maintenance of Effort
       • Coding SPED costs to Regular Education (1100’s)

     • Coding contracted services to 1100’s or 1200’s
       • Should be included in 2100’s if paid with local funds

     • Coding more SPED expenditures to Federal Accts than
       Revenue
       • Decreases reimbursement from the State
       • Make sure costs for SPED for birth – Pre‐K is coded to IDEA
          • No state reimbursement for birth – Pre‐K

93

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7/1/2021

     AFR Submission – November 1

        • AFR System Opens October 1

        • Utilize the AFR System Reports to confirm
          financial information aligns with audit

        • Financial Info submitted must align with audit
          • Notification to district to adjust/correct info
          • Financial Information must be uploaded again

        • In the fall, upload as soon as possible to avoid
          the rush close to deadline

94

     AFR Submission Tips

     • Request auditor to provide a preliminary report of
       financial schedules to review reports
     • Closely review reports after AFR Submission
     • Districts with more schools may see delays in
       system
     • Contact us with questions

95

     Financial Reporting Online FAQ
https://www.education.ne.gov/fos/financial‐reporting‐faq/

                                                • Specific Coding
                                                  Guidance
                                                   Revenue
                                                   Disbursements
                                                   Object Code

                                                • Uploading AFR Info
                                                • Uploading Test Files
                                                • AFR Flat File Format

96

                                                                              32
7/1/2021

                                         RULE 1 UPDATE
     • Requires a statement written for the following:
        • A sample of expense allocations were tested verifying appropriate allocating
          to the school building level.

     • Reportable instances of non‐compliance should be included in the
       Independent Auditor’s Report on Internal Control.

     • Requires other supplemental schedules formatted as prescribed by
       the NDE.

     • The rest of the changes are technical updates.

97

     Response to Letter to Management
                    Big Horn Public Schools        Auditor’s Letter to
                      Big Horn, Nebraska
                Schedule of Findings & Responses   Management from District
                  Year Ended August 31, 2019
                                                   • Issues noted in audit
                                                   • Issues in the Letter to
                                                     Management

                                                   Ask auditor to add an
                                                   audit schedule
                                                   • non-compliant issues
                                                     and district responses

                                                           No further
                                                         action needed
                                                          by District!

98

               Federal Fund Overview
                                   COVID ‐19
     • CARES Act – Passed on March 27, 2020
        • Elementary and Secondary School Emergency Relief (ESSER) Fund
            • Includes Non‐Public School Funding
        • Governor’s Emergency Education Relief (GEER) Fund

     • Coronavirus Response and Relief Act – Passed December 21, 2020
        • ESSER II Funds
        • GEER II Funds
            • Includes Non‐Public School Funding

     • American Rescue Plan Act – March 11, 2021
        • Roughly 2.2 times the amounts of the Coronavirus Response and Relief Act
        • July 15th the second phase of the application process begins.

     • Single Audit???

99

                                                                                              33
7/1/2021

                                               Reimbursement
                                               and Monitoring
                                                  Updates

100

                           Reimbursement
      • Starting July 1st new reimbursement process started
        • Submit your reimbursement as always. Make sure you have your
          accounting detail attached to support claim. A reimbursement claim
          person will reach out to you if they need more detail.
        • Based on risk assessment developed by the department will determine
          the level of documentation required for reimbursements.

101

                             Monitoring
      • The monitoring will be for all grants awarded to the
        subrecipient for the year chosen.
      • Please ensure you keep separate files and documentation for
        each grant awarded.
      • Based on risk assessment developed by the department will
        determine how often you are monitored.
        • If noncompliance is discovered NDE will do its best to issue a funding
          with corrective action that will be followed up. This follows Federal
          guidance 2 CFR 200.338

102

                                                                                        34
7/1/2021

                   Monitoring Common Errors
      • Time and effort
           • Most common error we find is entities appear to use budgeted and not actual, T&E is actual time
             worked and paid for all activities.
           • Second most common error we find is entities charging salary only to a grant. This is unable per 2
             CFR 430 and 431
           • Last error we find is claims for reimbursement not matching accounting records

      • Policies and Procedures
           • Most common error is entities do not have all the required policies and procedures for grants. Need
             policies and procedures for the following; Equipment and inventory, Procurement, Record retention ,
             Suspension and Debarment, Financial Management, Program Income, Cost sharing or matching, and
             Compensation – Personal services and fringe benefits

      • Coding Issues
         • After a reimbursement is paid the allowable expenses are moved which then makes them
           unallowable.

103

 2021 Legislation
                                                          • LB 528 – Requires each district to include
                                                            in their hearing notice a link to the
                                                            Nebraska Education Profile (NEP) website.
                                                               • Provides information related to statewide
                                                                 receipts/expenditures
                                                               • Compares cost per pupil and performance with other
                                                                 schools
                                                               • https://nep.education.ne.gov/

                                                          • LB 644 – Property Tax Request Act
                                                               • Requires joint public hearing if increasing tax request more
                                                                 than 2% plus real growth
                                                               • Requires post card/mailing sent to all property taxpayers
                                                               • Changes filing date to September 30th
                                                               • Goes into effect for the 22/23 budget.

104

            Superintendent Transparency Act

                                                                 Superintendent
                                                                 Contract for
                                                                 2021/22 must be
               Upload through                                    on file with NDE
               CDC in the NDE                                    by August 1
               Portal
                                                         NDE Help Desk
                                                         1-888-285-0556

105

                                                                                                                                     35
7/1/2021

                Census Collection
                                         Count of district resident children age
                                          5‐18 as of June 30

                                         Factor in Calculation of County Fines
                                          & Licenses and Apportionment

 Crawford                                Prior year’s counts & percentage
 Decatur
                                          increase/decrease are included for
                                          comparison purposes
 Lucas
 Mills
                                         Due date July 10

                                         Audit window open from July 11 ‐ 20

                                         Questions? Contact:
                                             Janice Eret 402‐540‐0649
                                             Michelle Cartwright 402‐540‐0649

106

 Pupil                   Mileage Reimbursement Calculation:

 Transportation          • To qualify, must live 4 miles from school but
 Reimbursement             mileage reimbursement is paid from 3 miles
                         • Based on one‐way travel once a day

 Based on §79-611
                         Resident Students:
 Current State           • $1.596/mile      State Mileage Rate x 285%
 Mileage Rate is
 $.575                   Option Students:
                         • Must qualify for free lunch to receive mileage
 Mileage rates usually
                           reimbursement
 change January 1
                         • $.798/mile     State Mileage Rate x 142.5%

107

         Online Exempt School System
                              • Rule 13 Exempt students can
                                register online.

                              • School districts can check
                                enrollment status online.

108

                                                                                         36
7/1/2021

            Opportunities for
           Budget Assistance

109

 New Superintendent Orientations
                        North Platte
                           July 20th
                           8:30 a.m. – 3:00 p.m.
                        Milford – ESU #6
                           July 22nd
                           8:30 a.m. – 3:00 p.m.

         Both Sessions will be offered via Zoom &
                        in‐person.

110

      Budget Assistance

                       Administrators’ Days
                       July 28th & July 29th
                            • 8 a.m. – Noon
                            • 1 p.m. – 4 p.m.

                       Ruby room 2nd floor
                        Younes Center

111

                                                         37
7/1/2021

         Budget Assistance

                                       Call in to set up an
                                         appointment for
                                           budget help
                                                   or
                                      Email in budget and
                                      discuss during phone
                                               calls

112

                              New Location
      • Physical Address:
        • 500 S 84th St., 2nd Floor
          Lincoln, NE 68510‐2611

      • Mailing address:
        • PO Box 94987
          Lincoln, NE 68509‐4987

113

        Follow along on Twitter
                bryce wilson@NDE_Finance

        • School finance related reminders
        • Upcoming school finance due dates
        • Legislative updates

114

                                                                   38
7/1/2021

             NDE School Finance Team

      Bryce Wilson
      bryce.wilson@nebraska.gov          402-471-4320

      Kevin Lyons
      kevin.lyons@nebraska.gov           402-450-1418

      Janice Eret
      janice.eret@nebraska.gov           402-540-0649

      Michelle Cartwright
      michelle.cartwright@nebraska.gov   402-450-0867

115

                                         Thank You!
116

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