Capital Outlay Bureau Spring Budget Workshop
2013
Cubero Elementary School – Grants-Cibola District
Presenters
• Antonio Ortíz - Director• Chris Thweatt - Financial Coordinator• Maria Fidalgo – Director, Audit & Accounting Bureau
Purpose: To Educate School Districts Regarding
Our:
• Roles and responsibilities
• Process of accessing capital outlay funds administered by the PED
Capital Outlay Bureau Goals:• Reduce turnaround time
• Improve customer service
• Streamline processes and workflows
• Use information technology to make documents user friendly and easily accessible
Agenda• Budget Issues• Operating Budget Management
System (OBMS)• Budgets• Reimbursement Requests• Capital Improvements Act (SB-9)• Public School Buildings Act (HB-
33)• New Legislation – pending
Governor’s Signature• Miscellaneous Issues• Question & Answer Session
Budget Issues
• Fund 31200 – Public School Capital Outlay Council (PSCOC)
• End of Fiscal Year Journal Entries• Cash Balances in Reimbursement Basis Funds
Budget IssuesFund 31200 (PSCOC)
The following example assumes a school district with a 50% percentage of participation. The district share of the PSCOC project is 50% and the PSCOC (State) share is 50%:
• Do not budget the PSCOC 50% amount in OBMS• End of fiscal year PSFA provides work-in- progress (WIP)project balances• District provides auditors with a journal entry with those balances for financial statements presentation
Budget IssuesEnd of Fiscal Year Journal
Entries
• RfR submitted in current year but reimbursement received in the following fiscal year• Record a journal entry to recognize receivable and revenue
- Dr. Accounts ReceivableCr. Revenue
• Reimbursement received in the following fiscal year, only cash and accounts receivable will be affected
- Dr. Cash Cr. Accounts Receivable
Budget IssuesCash in Capital Outlay Funds
• Reimbursement basis funds should have zero cash balances except for fund 31700
• Unless: • Money is owed to another fund, record interfund
due to/due from and process the interfund transfer• Money was received in advance, cash balance
should be identifiable/traceable to specific project
OBMS
• PED COB works with districts and charters establishing budgets and BARs for funds: 27106 – 2010 GOB Public School
Library Acquisitions 27107 – 2012 GOB Public School
Library Acquisitions 27115 – Statewide Robotics
OBMS
27171 – 2010 GOB Instructional Materials
27174 – 2010 Pre-K Capital 31200 – PSCOC – Lease
Payment Assistance 31400 – Direct Appropriations 31700 – SB-9
OBMSBudgeting Capital Outlay Funds• Carryover state fund balances in 43204
• New awards of state funds budgeted in 43210 (fund 31400) and 43202 (fund 31700)
• 2013-2014 Lease Assistance Awards will not be projected. BAR upon receipt of award letter
OBMSBudgeting Capital Outlay Funds
• 2013-2014 SB-9 State Match Award will not be projected. BAR upon receipt of award letter
• Estimated column should include all outstanding revenue balances as of July 1, 2012• This method is unique to capital funds
administered by the PED COB
OBMSBudgeting Capital Outlay Funds• COB will publish, on the COB webpage,
PED balances based on expenditures submitted into OBMS in funds 27106, 27115, 27171, 27174, 31400 and 31700 as of March 27, 2013 to help your district/charter calculate any potential carryover
• Fund 31400 Direct Legislative Appropriations authorized during the 2013 legislative session will use object code 43210
OBMSBudgeting Capital Outlay Funds2012 GOB Public School Library
• Award letters will be mailed in April 2013• Funds will revert June 30, 2016• Bonds are scheduled for sale on April 9,
2013 • Budget in Projected• Funds will be available to districts/charters
beginning July 2013• Use prior year award first
OBMSBudgeting Capital Outlay Funds
Scenario for fund 31700• As of July 1, 2012 the Capital Outlay District has:
• Cash Balance (Ensuing audit verifies) - $100,000• Ad valorem taxes - $197,000
Revenue: Estimated
11111 - $100,000 41110 - $197,000 43202 - $ 0 43204 - $ 0
$297,000
OBMSBudgeting Capital Outlay Funds
Also, as of July 1, 2013 the Capital Outlay District has outstanding prior year balances:
• SB-9 State Match – 2011-2012 - $50,000 2010-2011 - $49,000
2009-2010 - $51,000Revenue:
Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 0 43204 - $150,000
$447,000
OBMSBudgeting Capital Outlay Funds
On February 22, 2013 an award is made:• SB-9 State Match – 2012-2013 - $50,000
Revenue: Estimated
11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000
$497,000
OBMSBudgeting Capital Outlay Funds
For ‘12-’13 there are expenditures of $175,000:Revenue:
Estimated 11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000
$497,000Expenditures:
54315 - $ 75,000 (cash) 54500 - $100,000 (SB-9 State Match reimbursements)
$175,000
OBMSBudgeting Capital Outlay Funds
The ‘12-’13 SB-9 State Match expenditures of $100,000 tell us:Revenue:
Estimated Projected 11111 - $100,000 41110 - $197,000 43202 - $ 50,000 43204 - $150,000 43204 - $100,000 (12-13 & 11-
12)$497,000 $100,000
Expenditures: 54315 - $ 75,000 (cash) 54500 - $100,000 (SB-9 State Match reimbursements)
$175,000
OBMSBudgeting Capital Outlay Funds
Estimated cash balance on June 30, 2013 is $25,000:Revenue:
Estimated Projected 11111 - $100,000 11111 - $ 25,000 41110 - $197,000 41110 - $ 0 43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000 (12-13 & 11-
12)
$497,000 $125,000Expenditure:
54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $125,000
$175,000 $125,000
OBMSBudgeting Capital Outlay Funds
‘13-’14 projected ad valorem of $200,000 self populates:Revenue:
Estimated Projected 11111 - $100,000 11111 - $ 25,000 41110 - $197,000 41110 - $200,000 (self
populates)
43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000 (12-13 & 11-
12)
$497,000 $325,000Expenditure:
54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $325,000
$175,000 $325,000
OBMSBudgeting Capital Outlay Funds
Unused $197,000 ad valorem carries over to cash:Revenue:
Estimated Projected 11111 - $100,000 11111 - $222,000 41110 - $197,000 41110 - $200,000 (self
populates)
43202 - $ 50,000 43202 - $ 0 43204 - $150,000 43204 - $100,000 (12-13 & 11-
12)
$497,000 $522,000Expenditure:
54315 - $ 75,000 (cash) 54500 - $100,000 54500 - $522,000
$175,000 $522,000
OBMSBudgeting Capital Outlay Funds
For capital funds:
Estimated Revenue minus Estimated Expenditures Equals
Projected cash plus projected prior year balances (43204)
(use previous slide as an example)
Reimbursement Requests in OBMS:• Fund 27106 – 2010 GOB Public
School Library Acquisitions
• Fund 27107 – 2012 GOB Public School Library Acquisitions
• Fund 27115 – Statewide Robotics
• Fund 27171 – 2010 GOB Instructional Materials
Reimbursement Requests in OBMS:
• Fund 27174 – 2010 Pre-K Capital
• Fund 31400• Fund 31700 – Expend older years first• Fund 31200 - PSCOC lease
payment is NOT processed through OBMS but to Gerald Pertner with PSFA – (505) 988-5989
Reimbursement RequestsRequired Documentation
• Collect all required documentation from checklist:• Reimbursement Request Form• Expenditures Report• Copies of invoices• Proof of Payment
• Ensure expenditures meet legislative intent• Expenditures should be submitted in the year
incurred
Reimbursement RequestsRequired Documentation
• Reimbursement Request Form – Authorized Signature
• Signature Authorization Form
• Wire Transfer Form
• Expenditure Report
• Invoice and proof of payment
• Update CPMS for fund 31400 only
Reimbursement RequestsSteps of Program Review
• Ensure funds are expended with goods and services received on or before the reversion date
• Ensure draw request is ≥ $1,500 for STB’s and GOB’s
• Submit approved request to Fiscal Grants Management Bureau
Reimbursement RequestsProjects Expiring June 30, 2013
• 2009 Construction Projects and 2011 Non-Construction Projects Please note that final draw requests must be received
no later than July 6, 2013 for projects expiring June 30, 2013, or any remaining balance will be reverted.
Public School Capital Improvements Act (SB-9 State Match)
• SB-9 funds will be distributed to charter schools on a membership basis using 40th day of prior school year
• No distribution to charters schools which commenced instruction this school year
• State charter schools included• Funds distributed on reimbursement basis• Expenditures are not reimbursable if incurred
more than 60 days prior to the date the bonds are sold
Public School Capital Improvements Act (SB-9 Local Tax)
• Charter School needs shall be included in all SB-9 elections held after July 1, 2009
• If charter school provides information timely to district to include in resolution
• Information identifies how the revenues will be used
• Distributed by county treasurer to each charter school
Public School Buildings ActHB-33
• School Districts shall include the needs of charter schools after July 1, 2007
• If charter school provides information timely to district to include in resolution
• Information identifies how the revenues will be used
Public School Buildings Act (HB-33)
• Capital needs included in districts 5-year master facilities plan for local charters
• State charters include in their 5-year plan
• Distributed by county treasurer to each charter school
2013 Legislative SessionSB 333 – School Leases and Interests, Conflicts
• Requires that the facilities of a new charter school or a charter school relocating must attain a condition rating equal to or better than the average New Mexico facility condition index for that school year, within 18 months of occupancy or relocation
• Requires the PSCOC to develop a standardized lease to be used by charter schools entering into a lease after July 1, 2013
• Requires the PSCOC to review and approve lease payment assistance of a school district that is leasing space to a charter school up to the local market rate as long as it does not exceed the rate provided in statute
2013 Legislative SessionSB 333 – School Leases and Interests, Conflicts
• Requires a chartering authority to annually review and approve charter school conflict of interest disclosure statements
• Disallows a person to be an employee of a charter school if the individual or an immediate family member is an owner, agent of, contractor, or has a for-profit in which the charter school contracts for professional goods, services or facilities
SB 231 – School District & Charter School Investments• Allows state-chartered charter schools to make investments of
public money and deposits with local qualified depositories
2013 Legislative SessionSB 60 – Severance Tax Bond Projects• $13,000.0 – school bus purchase• $298.3 – statewide robot systems • 176 additional projects totaling $12,600.3 to school districts and charter schools• $2,500.0 – pre-kindergarten classrooms
• PSFA will administer this fundHB 353 – Reauthorized Projects• 1 Project
Miscellaneous IssuesCharter School Reports for HB-33 and SB-9
• Proposed expenditure reports due December 1st of each year
• Report shall include the proposed uses• Submit to the PED and the chartering authority• Within 20 days, the PED shall advise if, in its
opinion, the expenditures are consistent with the law
• Report prior year expenses to the PED and the chartering authority by January 31
Miscellaneous IssuesDisposition of Property
• Need Approval Prior to Disposition• Approving Entity Determined by Value and
Whether Property is Personal or Real• Checklist on COB Website• PED Form 947 Along With Supporting
Documentation
Miscellaneous IssuesDisposition of Property
• SAO – Ralen Randel (505) 476-3800
• SBF – Stephanie Schardin (505) 827-4980
• PED – Chris Thweatt (505) 827-6609 or Lisa Romero (505) 827-7646
Miscellaneous IssuesClosing Out Prior-Year Awards
• 2010 GOB Public School Library Acquisitions
• 2010 Pre-K Capital
• SB-9 (2008-2010)
Miscellaneous IssuesRequired Election Documents SB-9 &
HB-33• Signed Minutes• Signed Resolution• Legal Publication of Resolution• Legal Publication of Notice of
Election• Legal Publication of Canvass
Results• Signed Certification of Canvass
(Documents due April 12, 2013)
Miscellaneous IssuesLease Purchase Process
• You must obtain PSFA approval before submitting to the PED
• Cover letter • School Board or Governing Body minutes • Certification of attorney • Copy of proposed lease purchase
arrangement • List source of funds• Charter schools submit to Charter School
Division and school districts submit to COB
Summary • Balances for 27106, 27115,
27171, 27174, 31400, and 31700 are on the COB webpage
• Understanding new changes to the direct appropriation process
• How to obtain reimbursement for all capital outlay projects
• SB-9 and HB-33 Updates
Evaluation & Questions
Contact UsAntonio Ortiz – Director(505) [email protected]
Chris Thweatt – Financial Coordinator(505) [email protected]
Lisa Romero – Financial Coordinator(505) [email protected]