March A monthly update from the State Department of

Education's (SCDE) Office of Finance to local school district

business officials. If you have any questions about

information in this issue, contact Shatika Spearman at 803-

734-8008, Felicia Poston at 803-734-8488 or Melissa Myers

at 803-734-8453.

SC DEPARTMENT OF EDUCATION CHIEF FINANCE OFFICE MARCH 2015-16

Please use the newly established e-mail for submitting

information to Financial Services at financesvcs@ed.sc.gov

Recently Posted Correspondence/Data

135-Day Pupil Accounting and Student

Accountability Memo

FY’16 135-Day Home Instruction Report Form

FY 16-17 Prior 45-Day Financial Requirements

FY’17 Ways and Means Budget Projections

FY’16 Imputed ITA for FY 16-17 EFA

FY’17 Proposed 2% State Minimum Salary

Schedule

Important Dates and Deadlines for School and

District Instructional Materials Coordinators

FY’15 MOE Compliance Calculator

Changes in Procurement Regulations for Child

Nutrition Programs

Transportation District Reimbursement Checks

Transportation Check Submission Forms

Requirements to Employ Retired Individuals

Office of Finance Contacts:

Financial Services – Sue Martinez, Ann Castro, and

Shatika Spearman

Grants Accounting – Felicia Poston

General Budget and Finance Questions – Mellanie

Jinnette and Kim Moss

Grants Accounting Staff Listing

For questions regarding specific grants, please refer to

the grants accounting staff listing located on the Grants

Accounting Section’s web page,

http://ed.sc.gov/finance/grants-accounting/contact-

information/grants-accounting-staff-assignment-list/

New Payments for March

Revenue Subfund Description

3155 955 DSS SNAP E&T Program

3193 919 Apple Tags

3502 302 ADEPT

Aid to Districts – No March Payments Will Be Made

for 3597

Please refer to Mellanie’s e-mail dated January 20, 2016.

In light of continued negotiations with US Department

of Education regarding State Maintenance of Effort for

IDEA, we are holding Aid to District payments. We are

working on a settlement and could possibly have to use a

larger portion of this payment for Maintenance of Effort.

We will let you know when these payments will resume

as soon as negotiations are complete. Please contact

Mellanie Jinnette at 803-734-3605 or via e-mail at

mjinnett@ed.sc.gov should you have any questions in

this regard.

CFO UPDATE

Adjustments for March

Student Health and Fitness allocations (3127/937) have

been reduced 1% until data has been collected regarding

health standard plans posting to district websites.

QZAB

Announcement regarding new available funding for

QZAB was e-mailed to Superintendents and School

Business Officials on March 4, 2016. Memo and

required forms are available at the following link:

http://ed.sc.gov/finance/financial-data/qualified-zone-

academy-bonds-qzabs/. Please complete and return

signed allocation forms via e-mail or regular mail to

Mellanie.

ISSUE 9

FINANCIAL SERVICES

GRANTS ACCOUNTING

OFFICE OF FINANCE MARCH 2016 PAGE 2

Nurse Grants/Allocations

Information regarding Nurses Grants/Allocations

is included in the SCASBO Conference

PowerPoint presentation which is posted on the

Financial Data webpage.

GAPS Update - Reimbursement of

Expenditures

Weekly payments processed on Wednesday –

cutoff for expenditure entry/approval for

inclusion in weekly payments is Friday at 5:00

pm most weeks - NOTE. This is a change from

Monday back to Friday of previous week.

Tuesday morning – reports are run and

figures prepared for Weekly Cash Draw

Wednesday – Checks cut/direct deposits

made

Please reconcile your books – If you have entered

expenditure and it was approved by your Finance

Approver before COB on Friday at 5pm, the

payment should be in your Treasurer’s Office by

the end of the next week.

PCS Update – Friday, April 29 – 135 Day Funding PCS automates the data collection required to determine

supplemental funding of staff’s salaries. Funding is based

on the first 135 days. As the deadline approaches for

districts to have their PCS updates completed in

preparation for the 135 day funding report, it is very

important that all records entered in PCS are accurate. Here

are a few key issues to consider as you are updating your

district’s PCS records:

Make sure records are properly coded with the correct

position code. This is especially vital to any position that

receives federal funding.

Please ensure that the following fields are updated for

funding:

1) Days in 1st 135 day field

2) FTE

3) Contract days

4) Salary

Spring 2016 SCASBO Conference Powerpoint

Presentation

The Finance/Auditing PowerPoint presentation has been

posted on the website at http://ed.sc.gov/finance/financial-

data/scasbo-presentations/spring-2016-scasbo-conference-

presentation/. If you were unable to attend the

conference, please review this information.

Calculation of Excess Cost (continued)

The change in the calculation method will require

that your district re-compute your excess cost

calculation using the current (fall 2015) child count

data. This revision must be submitted to the OSES

before your current year application can be

approved.

Please contact Susan Flanagan at (803) 734-8788,

sflanagn@ed.sc.gov , if you have questions.

Data Reports Due Date

The Pupil Accounting Membership and Attendance and

Student Accountability Cumulative Class Reports memo

and Home Instruction Form were emailed to finance

officers on March 21 and were recently posted. A copy

will be emailed to your District Technology Directors.

The due date is April 4, 2016.

Calculation of Excess Cost

On March 16 you should have received an e-mail

referencing a memo from John Payne, Director, Office of

Special Education Services (OSES), regarding Calculation

of Excess Costs. Links are provided within the memo to

assist you in understanding the requirements.

AUDITING SERVICES

TRAINING TUTORIALS FOR GAPS

New – Budget Decrease Workflow

http://ed.sc.gov/finance/grants-accounting/gaps/workflow-

procedures/budget-decrease-workflow/

How to Run Reports

http://ed.sc.gov/finance/grants-accounting/gaps/gaps-

instructions-and-guidelines/how-to-run-reports-in-gaps/

Heads of Organizational Units The SC Department of Education has established new object

codes to charge expenditures related to the heads of certain

organizational units reporting directly to the District

Superintendent. These changes are a result of the most

current review of our LEA indirect cost methodology by the

USDE Office of the Chief Financial Officer. Employees that

should be charged to these new object codes include the

Chief Financial Officer, Chief Human Resources Officer,

Chief Audit Director, and the heads of any other

organizational units charged to the function 260 series which

consists of 262 Planning, 263 Information Services, 264

Staff Services, and 266 Technology and Data Processing

Services.

Our current indirect cost methodology already reports the

heads of other organizational units reporting directly to the

Superintendent as being charged in a manner directed by the

USDE. Exclude a Deputy Superintendent who serves as the

Chief Operating Officer and the Assistant Superintendent of

Instruction.

OFFICE OF FINANCE MARCH 2016 PAGE 3

Budgets/GAPS

Paper Budget Submissions

• Working with specific budget offices to

discontinue this requirement

• Title programs will discontinue this

requirement in FY 17

Budget Decrease Functionality

• Rolled out in February 2016

• Only Available when an allocation is

decreased.

Examples:

- De-obligation of previously

awarded grant funds

- Title I amount carried forward

to next year

IMPORTANT DEADLINES

Please refer to the SCASBO

Conference PowerPoint Presentation

to get important information

regarding upcoming deadlines.

Again, the link is

http://ed.sc.gov/finance/financial-

data/scasbo-presentations/spring-

2016-scasbo-conference-presentation/

Effect of Implementation of DOTS on GAPS (continued)

The DOTS WAA access (e-mail account) must be tied to the

District’s Adult Education Org Name under the Category

“Other”.

The GAPS WAA access (e-mail account) must be tied to the

District’s Org Name under the Category “PK-12”.

Also, any District user that needs access to any other SCDE Web

Applications must use the District’s Org Name under the

Category “PK-12”.

Effect of Implementation of DOTS on

GAPS

This will only affect SCDE WEB

APPLICATION users that will be assigned a

role for DOTS (Diploma Online Tracking

System) with the Adult Education School

Location and will also need access to the

GAPS (Grants Accounting Processing

System).

For any user that needs access to the DOTS

system and GAPS, there will be a need for a

second e-mail address for that individual.

The e-mail address that is linked to the

DOTS system shouldn’t have the GAPS role

tied to it.

Time and Effort Clarification for Food Service

Employees

Food Service employees are exempt from the

requirement to prepare personnel activity reports or

certifications. However, if the food service

employee also works on another federal cost

objective, the employee must complete the required

time and effort reporting.

Substitute System for PAR’s

The USDE recently established guidance allowing an

SEA to permit an LEA to use substitute

documentation such as a teacher’s course schedule as

adequate documentation for the time and effort of an

individual who works on multiple activities or cost

objectives but does so on a predetermined schedule.

An individual documenting time and effort under the

substitute system would be permitted to certify time

and effort on a semiannual basis, provided the LEA's

substitute system meets requirements.

In order to use the substitute system, the LEA must

certify to the SEA that only eligible employees will

participate in the substitute system and that the

system used to document employee work schedules

includes sufficient controls to ensure that the

schedules are accurate.

Additionally, the certification must include a full

disclosure of any known deficiencies with the system

or known challenges with implementing the substitute

system.

To review this guidance in full along with examples

of acceptable substitute system, see

http://www2.ed.gov/policy/fund/guid/gposbul/time-

and-effort-reporting.html.

Data Collection Form

The Federal Audit Clearinghouse website is

accessible for the submission of the OMB data

collection form. Please submit the form to the

clearinghouse at

and upload

the form also to LARS.

GASB 68 – Food Service Fund

If the Food Service Fund is an Enterprise fund, an

allocation of the net pension liability must be shown in the

Food Service Fund if fringe benefits are charged.

However, if no fringe benefits are paid out of the Food

Service Enterprise Fund, no allocation is required.

Time and Effort Requirements

The SCDE Terms and Conditions and Assurances require

employees whose salary is charged in whole or in part to a

federal cost objective must complete either the monthly

personnel activity report (PAR) or the semi‐annual

certification. Certifications are required for those whose

salary is charged 100% to a federal cost objective. The

PAR is required for any employee whose salary is charged

less than 100% to a federal cost objective or to multiple

federal cost objectives.

For federal awards made after December 26, 2014, please

adhere to the requirements in the Uniform Grant Guidance

and 2 CFR Part 200.

The link to the electronic Code of Federal Regulations is

http://www.ecfr.gov/cgi-bin/text-

idx?SID=51fe36054afd11b20bac5931e4e104e5&node=pt2

.1.200&rgn=div5

An example of a PAR and certification are now located on

our website at

http://ed.sc.gov/finance/auditing/information-memos-and-

forms/memos-and-forms/sample-personnel-activity-report/

and http://ed.sc.gov/finance/auditing/information-memos-

and-forms/memos-and-forms/sample-certification/

respectively.

OFFICE OF FINANCE MARCH 2016 PAGE 4

Heads of Organizational Units (continued) Charge expenditures for the heads of the organizational

units stated above to the following object codes with the

correct function code classification. (Ex. Salaries for the

CFO would be charged to 252-180). Please refer to

correspondence that was distributed to all SBO’s on

December 10, 2015. This memo rescinds the previous

memo dated February 4, 2015 instructing LEAs to charge

expenditures to the head of a component unit to function

261. All other new classifications in the February 4, 2015

memo are still valid.

GRANTS ACCOUNTING

Miscellaneous Revenue Codes and Subfunds

Source of Fund Revenue

Code

Subfund

Misc. State

Restricted

3199 800 series *

Misc. EIA 3599 399

Misc. State 3999 General Fund (100)

Misc. Lottery 3699 969

Misc. Federal 4999 800 series *

*Districts choose any subfund available for

use in the 800 series.

Request for Proposal for Audit Services

Section 200.509 of the Uniform Grant Guidance

requires the auditee to include in the RFP a request for

a copy of an organization’s peer review report which

the auditor is required to provide under Generally

Accepted Governmental Auditing Standards.

Miscellaneous Revenue Codes and Subfunds

When allocations to school districts exceed $500,000

from a single source of funds, a unique revenue code and

subfund are assigned to those funds and guidelines for

those funds will appear in the Funding Manual produced

by the Office of Finance.

If total allocations do not exceed $500,000, miscellaneous

revenue codes and sub funds will be used as follows:

Uniform Grant Guidance

The Office of Auditing Services has developed a

document that highlights some of the major changes as

a result of the Uniform Grant Guidance.

The document can be found on our website at

http://ed.sc.gov/finance/auditing/information-memos-

and-forms/tutorials-and-presentations/what-is-

uniform-grant-guidance/.

Please be sure that you are updating your entity’s

policies and procedures due to guidelines under the

uniform grant guidance.

Please refer to the presentation from the 2015 Fall

SCASBO Conference,

http://ed.sc.gov/finance/auditing/information-memos-

and-forms/tutorials-and-presentations/fall-scasbo-

2015-uniform-grant-guidance-indirect-costs-and-other-

compliance-issues/

Financial Manuals

FY 2015-2016 Funding Manual

http://ed.sc.gov/finance/financial-services/manual-handbooks-and-guidelines/funding-manuals/fy-2015-2016-funding-

manual/

Accounting Handbook FY 2015 - 2016 Financial Accounting Handbook - South Carolina Department of Education

Student Accountability

http://ed.sc.gov/agency/cfo/finance/Financial-Services/documents/studentaccountabilitymanual.pdf

PCS Manual

PCS Manual - South Carolina Department of Education

Audit Guide

FY 2014-2015 Annual Audit Guide - South Carolina Department of Education

OFFICE OF FINANCE MARCH 2016 PAGE 5

EFA/State Funding

Release Dates

2015-2016

March 22 May 20

April 22 June 22

Due Dates for SCDE Reports 2015-2016 Listed below are reports required by the Office of Finance and their due dates for 2015-16. Reports listed below that are identified by a dollar sign ($) indicate that allocations are based on the information submitted in these reports. To avoid delays in the distribution of the allocations, please ensure that all reports are received in the Chief Financial Office by the specified due date.

April 4 INITIAL MEMBERSHIP/ATTENDANCE 135 DAY REPORT

INITIAL STUDENT ACCOUNTABILITY 135 DAY REPORT

April 29 PCS UPDATES FOR 135 DAY FUNDING ($)

April 29 MEMBERSHIP/ATTENDANCE CERTIFY 135 DAY REPORT ($)

STUDENT ACCOUNTABILITY CERTIFY 135 DAY REPORT ($)

HOME INSTRUCTION REPORT ($)

June 30 FINAL CHANGES TO PCS FY 2015-16 TECHNOLOGY PROFICIENCY

June 30 FLEXIBILITY REQUEST 2015-16

Questions concerning the above reports may be directed to Shatika Spearman at (803) 734-8008 in the Office of Finance.

Kimberly Moss

Financial Newsletter Editor

OFFICE OF FINANCE MARCH 2016 PAGE 6