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Schoolwide Accounting

John DunnDirector of Financial Review

Title II A ConferenceMarch 5, 2008

Georgia Department of Education Kathy Cox, Superintendent of Schools

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PlanningHow do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation?

1. Develop a coordinated work team for schoolwide planning and implementation among the following:

a. LEA Title I Coordinator b. School Title I Coordinator c. LEA Financial Representative

d. School Financial Representative e. School Principal

f. Comprehensive Schoolwide Plan Representative(s)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Planning (continued) How do LEAs and schools reform their accounting procedures to comply with

schoolwide consolidation?

2. Link LEA schoolwide budgetary planning and expenditure functions to school-level accounting and administration of schoolwide funds.

3. Each LEA decides which Federal funds it will consolidate into Schoolwide Title I from among the following eligible sources:a. Title I, Part A, Improving the Academic Achievement of the

Disadvantagedb. Title II, Part A, Preparing, Training and Recruiting High Quality

Teachers and Principals c. Title III Language Instruction for Limited English Proficient and

Immigrant Studentsd. Title IV, Part A, Safe and Drug-Free Schools Programe. Title V, Part A, Innovative Programs

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Planning (continued)How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation?

3. Each LEA decides which Federal funds it will consolidate into Schoolwide Title I from among the following eligible sources: (continued)f. Title VI, Part B Rural and Low Income Schools

The LEA shall comply with the following exceptions:a. Title I, Part B Reading First is specifically excludedb. Title I, Part C Migrant: must meet restrictionc. Title VII, Indian, Native Hawaiian and Alaska Native: must meet restrictionsd. Individuals with Disabilities Education Act (IDEA), Part B: must meet

restrictions

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Planning (continued)How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation?

3. Each LEA decides which Federal funds it will consolidate into Schoolwide Title I from among the following eligible sources: (continued)

LEAs are encouraged to consolidate as many eligible formual federal program funds as possible. Competitive grants are encouraged to be excluded.

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (Continued)

4. Develop allocations for funding each of the schoolwide schools in the district: > The LEA may use any reasonable method to demonstrate how the funds in a schoolwide program have been expended. Three such options are illustrated on the following slides. a. The process to determine the amount allocated can be different for each Federal grant. b. The district can use formula allocations, similar to ones used in Title I. c. The amount can also be determined through allocations based on the needs of the school as determined by the school’s improvement plan.

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4. Develop allocations for funding each of the schoolwide schools in the district (continued):

> Complete the SCHOOLWIDE FEDERAL ALLOCATION PLAN form to calculate the total amount of Federal funding and percentages for each schoolwide school.

a. The completed form will show the total federal funds and the percentage participation from each grant for each schoolwide school.

b. The calculated percentages will be used as the basis in performing the monthly allocations in accordance with OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments.

Accounting (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (Continued)

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4. Develop allocations for funding each of the schoolwide schools in the district (continued):

> Complete the SCHOOLWIDE FEDERAL ALLOCATION PLAN form to calculate the total amount of Federal funding and percentages for each schoolwide school (continued).

c. Completion of this form should be done for each schoolwide school.

d. The amount of Federal funds and the contributing Federal funds can vary between schools based on the school’s improvement plan and the system consolidated application.

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

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4. Develop allocations for funding each of the schoolwide schools in the district (continued):

> Federal funds combined in a schoolwide program lose their

specific program identity at the school level and may be used

for any costs of the schoolwide program.

> In Georgia, state and local funds must be accounted for

separately in order to satisfy requirements under the Quality

Basic Education Act (QBE) and other programs.

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

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Budgeting

5. Develop a budget for each schoolwide school

a. Use the total funding from the SCHOOLWIDE FEDERAL ALLOCATION PLAN form to develop a consolidated budget for each schoolwide school.

b. The basis of the budget should be the school’s schoolwide programplan and the system consolidated application.

c. The budget should support the goals and curriculum objectives needed to carry out the schoolwide plan.

d. The budget should be developed and implemented in close on-going consultation with all said schoolwide LEA and school-level officials.

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Budgeting (continued)

6. Record the budget for each schoolwide school in the accounting records of the school district

a. Fund 400, “Schoolwide Programs Fund,” should be created for recording the expenditures for all schoolwide schools.

b. Through the use of facility codes, the district can record the budget of each schoolwide school. This will allow each

school budget to be tracked and to accomplish the intent of consolidating funds for schoolwide purposes.

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting

7. Allocation of the consolidated monthly expenditures:

a. At the end of each accounting month, the total monthly expenditures shall be allocated from the Fund 400 to the individual Federal funds as outlined on the SCHOOLWIDE FEDERAL ALLOCATION form. This will be accomplished through posting a monthly journal entry using account “1000-881” for each school.

b. The entry will consist of:1. a debit to “Fund 400, Cash 0101”2. a credit to “expenditure account Fund 400, Function 1000, Object 881”

c. In each of the participating federal grants, there shall be: 1. a debit to “expenditure account Function 1000, Object 881”

2. a credit to “Cash 0101”

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)

7. Allocation of the consolidated monthly expenditures (continued):

d. The entries will have the effect of zeroing out the expenditures in Fund 400 by school and charge each grant its proportional share of the expenditures of

the schoolwide program.

e. THE JOURNAL ENTRY MUST BE DONE SCHOOL BY SCHOOL.

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)

7. Allocation of the consolidated monthly expenditures (continued):

Journal Entry Example:

A schoolwide school is funded —

a. $90,000 from Title I (90%)b. $5,000 from Title II A (5%)c. $5,000 from Title IV A (5%)

======== $ 100,000 Total Participating Federal Funding

The monthly expenses for the schoolwide school are $10,000.

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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Accounting (continued)

7. Allocation of the consolidated monthly expenditures (continued):

Journal Entry Example (continued):

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

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  Zeros

 

   

  Moves

  expenses

  to each fund

 

   

8-400-0-9990-1000-881.00-1050-0-000000

$ (10,000.00)

8-400-0-0101-0000-000.00-0000-0-000000 10,000.00 Fund 400

8-402-0-1750-1000-881.00-1050-0-000000 9,000.00

8-402-0-0101-0000-000.00-0000-0-000000 (9,000.00)

8-414-0-1784-1000-881.00-1050-0-000000 500.00

8-414-0-0101-0000-000.00-0000-0-000000 (500.00)

8-462-0-1780-1000-881.00-1050-0-000000 500.00

8-462-0-0101-0000-000.00-0000-0-000000 $ (500.00)

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Accounting (continued)

7. Allocation of the consolidated monthly expenditures (continued):

Journal Entry Example (continued):

The journal entry will post monthly allocable expenditures to each Federal grant participating in the schoolwide school program.

This method will allow for tracking of the schoolwide school budget and each Federal grant.

By keeping the total expenditures of each Federal grant up-to-date, proper cash management and total grant expenditures can be tracked.

The following will be available to the grant administrator:a. monthly cash drawsb. year-end completion reportsc. calculation of grant carry-over amountsd. grants status reports

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

All Rights Reserved

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Accounting (continued)

7. Allocation of the consolidated monthly expenditures (continued):

Monthly cash draws are performed the same as in the past.

Complete the DE0147 Form on GAORS and record the cash draw in the proper grant when the money is received.

If the need arises to amend the amount of the schoolwide budget due to an increase of funds allocated to the school, the percentages would have to be recalculated.

The new funds would be amended into the schoolwide budget. Once the budget has been amended, the new percentages would be used from that point forward.

All previous allocations are not changed, only the future allocations.

How do LEAs and schools reform their accounting procedures to comply with schoolwide consolidation? (continued)

Georgia Department of Education Kathy Cox, Superintendent of Schools

All Rights Reserved