Local Finance Update

Spring Fiscal WorkshopPickwick Landing State Park

April 16-18, 2013

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Year End Information

What you need to know for year-end

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Commodity Reporting(Refresher)

Commodity Reporting – Centralized

• Revenue code 47112 USDA – Commodities

• Expenditure code 71300-469 USDA – Commodities

• Value of commodities received only

• Transportation and processing expensed separately

• No separate eReporting requirements

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Commodity Reporting(Refresher)

Commodity Reporting – Non-Centralized

• Report on AFR Non-Centralized Cafeteria Report

• Separate line item on report – 84100

Commodity Report is eliminated in eReporting

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Growth Funds

Estimated payment made in January

Will be recalculated in June

Final payment by June 30

Growth over .55% funded in January

May change in June

$31 million available for growth funds in FY13

To fund 100% growth - $39 million

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Growth Funds

How is estimated growth calculated?• ADM’s from months 2 and 3 used

• BEP formula for current fiscal year is re-run with current year ADM’s

• Funds generated compared to January Revised

• Additional funds generated are “growth funds”

• Not simple per pupil multiplied by additional students

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BEP Reserve

Determined by MOE test after FY13 AFR and FY14 Budget are completed in eReporting

Equals amount local revenues collected fell short of budgeted amount

May be cumulative Equity account number 34555 – Restricted for Education

with a cost center (e.g. BEP) Other reserves designated BEP should be re-classified as

assigned, committed, etc. per Comptroller’s office Use for non-recurring expenditures Send Trial Balance showing the BEP reserve to Brenda

Pursley with a comment re: adjustment

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Career Ladder

Career Ladder Reserve used to determine Career Ladder payments

• 34560 Restricted for Instruction

• Verify beginning balance – adjust if necessary

• Journal entry out any other amounts in that reserve – reclassify to other accounts

• Automatically pulls into Career Ladder Report in eReporting

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Career Ladder

Career Ladder eligibility determined from December 1 PIRS report

• Negative reserve will be added to next year’s payment

• Positive reserve will be deducted from next year’s payment

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Extended Contract

Final payment for FY13 – week of May 6

Track extended contract funds received and payments made

Establish a reserve if necessary

34655 Restricted for Education – add a cost center (e.g. EXT)

Extended Contract now under Erin Ohara’s group – Data Quality• Karen Daniels – Karen.Daniels@tn.gov 615-532-1254• Laquisha Oliver – Laquisha.Oliver@tn.gov 615-532-6280

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Deferred Compensation

Differentiated or performance-based pay plans

Earned in one fiscal year, payable in the following• Performance –based bonus• Retention payments

34655 Committed for Education – add a cost center (e.g. DEF)

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eReporting Changes

New revenue code(s)

• 46810 Flood Control

New expenditure codes

• 188 Bonus payments

• 211 Local retirement (non-TCRS contributions)

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EIS, ADM’s and Funding

ADM’s for funding taken directly from EIS

Growth payments caused a number of LEA’s to review ADM’s

Look at April estimate – check ADM’s• Regular• Special Education• CTE

Must be approved by June 15 for final BEP allocaions and growth

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Miscellaneous Items

Close all Purchase Orders in federal funds prior to June 30

TCA 8-27-303 and Appropriations Bill prescribe portion of health insurance premium that must be paid for non-certified employees –minimum of 10% in calendar year 2013

Federal budget amendments do not have to be approved by County Commission – as long as no local match required

PIRS report must be completed and certified by June 15

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ePlan

Grants Management System

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Federal Projects - ePlan

Prepare for transition to ePlan for FY14

• ESEA and IDEA formula grants in FY14– Title I-A– Title I-D– Title II-A– Title III-A– Title VI– IDEA – Part B– IDEA – Preschool

• Other grants in FY15 and beyond

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Federal Projects - ePlan

• Transition to ePlan from FACTS

– No open purchase orders at June 30

– FACTS “locked” on June 30

– Reimbursement requests for expenditures prior to June 30 will be approved by your fiscal consultant or Local Finance (Nashville), then released through FACTS

– After all reimbursements for expenditures in FY 13 paid, remaining funds will transfer to ePlan as carryover

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Federal Projects - ePlan

• July 1

– All reimbursements requests for expenditures after July 1 will be through ePlan

– Carryover expenditures should be included in FY14 budget – particularly for July through September

– Budget amendment will be necessary when carryover determined

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Federal Projects - ePlan

Special Notes for ePlan transition

• Reimbursement requests are by line item

• Budget must be accurate

• Plan ahead for amendments

• Payroll must be requested like all other reimbursements – no automatic payroll requests

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First to the Top

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First to the Top

End date is July 27, 2014

Work completed by July 27, 2014, paid out by October 27, 2014

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FY14 State Budget

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FY14 Education Budget

Proposed budget based on governor’s original recommendation – amendments not reflected here

Total budget - $5.6 billion

Federal funds - $1.2 billion

State Funds - $4.4 billion• BEP - $4 billion• Other state expenditures - $.4 billion

96% passed through to LEA’s

934 pre-K classrooms – no inflationary increase for FY14

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BEP

Formula funded as calculated

Total addition to BEP in FY14 - $126,000,000

Increases to FY13 - $43,200,000• ADM’s

• Unit cost increases– Square footage cost– Travel– Transportation

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BEP

Salary unit cost• 1.5% increase to unit cost• New salary unit cost - $40,447• Included in April estimate• Cost - $35,800,000

State minimum salary schedule• 1.5% likely NOT to be added to schedule• No requirement for across the board raise if approved• Additional funds must be spent in instructional category• Flexibility in how additional salary funds expended – LEA

discretion

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BEP

Capital outlay • Inflationary growth from 2010 restored• $33.7 million additional funds • Included in April estimate

Health insurance• Funded at 10 months• Additional 6 months of 9.2% increase (from January 1, 2013)• Cost - $13,500,000 (included in April estimate)• Estimated increase in premium January 1, 2014 - $11,300,000

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Technology Funds (PARCC)

One-time appropriation of $51 million

Distributed outside of the BEP

Allocated per LEA share of non-classroom component of the BEP

Revenue code 46590 – with a cost center (e.g. TEC)

Funds not expended by June 30, 2014 may be carried over in 34555 Restricted for Education - with a cost center (e.g. TEC)

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Technology Funds (PARCC)

Tentative process

• LEA’s complete new version of technology readiness survey

• Identify specific testing-area needs in LEA

• State will provide template for the technology plan– How funds will be spent to address a known PARCC deficiency– May be able to use planning document for E-Rate filings

• State will review and approve technology plans

• Funds then released to LEA’s – method TBD

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Core Services

FY13 FY14

Extended Contract $10,000,000 $ 7,500,000 R

Growth Funds $31,000,000 $27,500,000 R

Family Resource Centers $ 3,050,000 $ 3,050,000 N

Connectivity $ 2,000,000 $ 2,000,000 R

York Institute $ 2,294,000 $ 2,294,000 N

Science Alliance Museums $ 750,000 $ 750,000 N

Public Television $ 2,786,800 $ 2,786,800 N

Governor’s Schools $ 1,900,000 $ 1,900,000 N

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Other Programs

FY13 FY14

Coordinated School Health $15,000,000 R $15,000,000 R

SSMS $ 2,700,000 R $ 2,700,000 R

Safe Schools $ 4,841,200 R $ 4,841,200 R

Governor’s Books from Birth $ 340,000 moved to General Services

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Legislative Update

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State Charter Authorization

Creates state charter authorizer to which charter operators may appeal if refused at LEA level

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Centralized Finance

Centralize all county finance activities under county finance office

Vote of county legislative body required to enact

Likely not going forward this year

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From last year

Kindergarten age – 5 years old by August 15, 2013

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Contacts

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CORE Offices

CORE Region Director Phone

First Tennessee Julie 423-434-6490

Knoxville Allen Pratt 865-594-6044

Southeast Sharon Harper 423-614-8755

Upper Cumberland Janice Fox 931-372-6795

Mid Cumberland Christie Southerland 615-532-6294

South Central Bill Byford 931-488-3050

Northwest Norma Gerrell 731-881-7565

Southwest/Memphis Marlon King 901-678-5685

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Fiscal Consultants

Consultant Phone

Ron Adelman 615-306-4062

Jackie Broyles 615-306-7429

Laura Cowan

Brad Davis 615-308-3616

Carol Newton 615-306-7974

Bobby Palmer 615-308-1592

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Local Finance/Local Disbursements

Maryanne Durski 615-532-9510 / 615-419-1605

Karen Justice 615-532-1662

Brenda Pursley 615-532-2838

Elfreda Tyler 615-741-8835

Spencer Yonce 615-532-7418

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Questions?