kentucky department of education division of district support auditor training - june 3, 2014 news...
TRANSCRIPT
Kentucky Department of Education
Division of District Support
Auditor Training - June 3, 2014
NEWS YOU CAN USE
LaTonya Bell, MBA, CSFMAdministrative Branch Manager
Division of District Support
District Financial Management Branch
Phone: (502) 564-3846, ext. 4418
• Changes to Indirect Cost Rate Process
• Updated KY School District Insurance Guide
• Updates to Affordable Care Act Guide
• Booster Group Resources
NEWS YOU CAN USE
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Fiscal Year 2015 Rates
INDIRECT COST CALCULATIONS
• Federal review of rate methodology going on now
• Errors already found:
1. Apply the rates from July 1 – June 30
2. KBE must approve
3. Adjustment opportunity
• More changes could be required
FEDERAL REVIEW
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Rates must be applied the same way they are calculated
1. APPLY THE RATES JULY 1 – JUNE 30
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If a district used the FY 13 rate for Jul, Aug, or Sept 2013 the district must correct any overcharge
• Calculate the indirect costs using the FY 14 rate for those months
• Reduce future indirect costs in FY 14 to correct the total charged
1. APPLY THE RATES JULY 1 – JUNE 30
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• Agreement is between USDE and KDE
• Local boards should recognize the rate but approval is not required
2. KBE MUST APPROVE THE RATES
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• Impossible to get every district calculation correct simply by applying the account structure
• Districts must review and certify the rates by affirming adjustment amounts, if any
3. ADJUSTMENT OPPORTUNITY
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• Results of districts’ calculation must comply with OMB Circular A-87
http://www.whitehouse.gov/omb/circulars_a087_2004
HOW DO DISTRICTS KNOW WHAT ADJUSTMENTS TO MAKE?
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• “Instructions for Indirect Cost Adjustments for Calculating Indirect Cost Rates”
• KDE website
HOW DO DISTRICTS MAKE ADJUSTMENTS?
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• District must log into the system anyway• Check box
WHAT IF A DISTRICT HAS NO ADJUSTMENTS?
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• By completing the adjustment form:• Certify accuracy
CERTIFICATION
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INDIRECT COST INFORMATION• Indirect Cost Guide and other useful resources are located on
KDE’s website at www.education.ky.gov . Click on the following links:
• District/School Support• Overview• District Financial Reporting• Fund Balances, Revenues and Expenditures, COA, and
Indirect Cost Rates, etc….
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KDE CONTACT INFORMATION
Susan Barkley Karen ConwayAssistant Director Educational Financial AnalystDivision of District Support Division of District Support15th Floor, 500 Mero Street 15th Floor, 500 Mero StreetFrankfort, KY 40601 Frankfort, KY 40601Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. [email protected] [email protected]
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UPDATED INSURANCE GUIDE
REVISED SECTION 1• Procurement
• Multiyear Awards
• Insurance Consultant
• Agent of Record
• Step by step guide on page 10
• “Are you a Bid Law or MPC?”
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REVISED SECTIONS 2, 3, 4 & 6• Auto and Fleet Insurance
• General Liability Insurance
• Educators’ Legal Liability Insurance
• Coverage Amount
• Unemployment Insurance
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REVISED SECTIONS 7 & 9• Workers’ Compensation Insurance
• Student Accident Insurance
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REVISED INSURANCE GUIDE • Kentucky School District Insurance Guide Revised April 2014 is
located on KDE’s website at www.education.ky.gov . Click on the following links:
• District/School Support• Overview• District Financial Reporting• Finance Officer Training, Insurance Guidelines, etc….
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KDE CONTACT INFORMATION
Susan Barkley Renee ThomasAssistant Director Educational Financial AnalystDivision of District Support Division of District Support15th Floor, 500 Mero Street 15th Floor, 500 Mero StreetFrankfort, KY 40601 Frankfort, KY 40601Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. [email protected] [email protected]
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UPDATES TO AFFORDABLE CARE ACT
GUIDE
AFFORDABLE CARE ACT• Transition Relief for 2015:
• Large Employer Status
• Substantial Compliance
• Clarification of full-time status
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LARGE EMPLOYER• 2015 = 100 or more FT & FTEs
• 2016 = 50 or more FT & FTEs
• Most KY school districts are large
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SUBSTANTIAL COMPLIANCE• Threshold before penalty assessment:
• 2015 = 70% of full-time employees
• 2016 = 95% or no more than 5 full-time employees
• Penalty is
• Number of FT employees minus 30
• Multiplied by $167 per month
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CLARIFICATION OF FULL-TIME STATUS
• Hours of Services will not include:
• Hours worked as bona fide volunteers
• Seasonal employees < 6 months
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REVISED AFFORDABLE CARE ACT IMPLEMENTATION GUIDE • Affordable Care Act Implementation Guide Revised May 2014 is
located on KDE’s website at www.education.ky.gov . Click on the following links:
• District/School Support• Overview• District Financial Reporting• Health and Life Insurance Benefits and Flexible Spending
Accounts
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KDE CONTACT INFORMATION
Susan Barkley Melissa SullivanAssistant Director Educational Financial AnalystDivision of District Support Division of District Support15th Floor, 500 Mero Street 15th Floor, 500 Mero StreetFrankfort, KY 40601 Frankfort, KY 40601Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. [email protected] [email protected]
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BOOSTER RESOURCES
PARENT BOOSTER USA• Can gain tax-exempt status under their umbrella
• No Form 1023
• No IRS filing fee
• Support, training
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KDE WEBSITE• Redbook
• FAQs
• Videos
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REDBOOK INFORMATION• Accounting Procedures for School Activity Funds is located on
KDE’s website at www.education.ky.gov . Click on the following links:
• District/School Support• Overview• District Financial Reporting• Accounting Procedures for School Activity Funds
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KDE CONTACT INFORMATION
Susan BarkleyAssistant DirectorDivision of District Support15th Floor, 500 Mero StreetFrankfort, KY 40601Phone: (502) 564-3846, ext. [email protected]
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