1 Illinois State Board of Education 1 FY2016 Annual Financial - PowerPoint PPT Presentation

1 Illinois State Board of Education 1 FY2016 Annual Financial Report (AFR) Presenters: Christine Kolaz Debra Hemberger Scott Durr

Illinois State Board of Education 2 Presentation Topics Common Call-in questions  Reminders  Legislation  Other Information  Due Dates  Downloading the AFR 

Illinois State Board of Education 3 Common Call in Questions Depreciating Transportation Capital Outlay  Expenditures General State Aid Formula 

Illinois State Board of Education 4 Common Call in Questions cont.. Capital Improvements vs Operations & Maintenance for Construction Projects All expenditures for construction must be accounted for in the Capital  Improvements Fund (cost usually associated with long-term financing). All expenditures for regular maintenance should be recorded in the  Operations & Maintenance Fund. School Boards should have an approved capitalization threshold in  place to determine these types of expenditures.

Illinois State Board of Education 5 Common Call in Questions Inter-Fund Loan Transfers and Reconciling Cash Fund Accounts Some districts are recording these transactions  incorrectly in the Assets/Liability section of the AFR. District must record in the fund, where money is  borrowed from and where it is payable to at the end of the fiscal year.

Illinois State Board of Education 6 Common Call in Questions Inter-Fund Loan Transfers and Reconciling Cash Fund Accounts Inter-fund loans have to be repaid within 3 years.  Cannot make inter-fund loans or transfers from  restricted funds or accounts (ex: municipal retirement/social security, tort fund, health life safety, or transportation fund. (105 ILCS 5/10-22.33 Inter-fund Loans for exceptions)

Illinois State Board of Education 7 Common Call in Questions Declaring Interest Income Section 100.50 of the Administrative Rules (Inter-fund  Transfers) § A. 4) Unless otherwise provided by statute or specified by board resolution adopted prior to June 30 of a fiscal year, interest earnings shall be added to and become part of principal as of June 30 of the fiscal year.

Illinois State Board of Education 8 FY16 AFR Reminders Revenue Account for: Race To the Top –  Preschool Expansion Grant Account: (4902) Tuition Payment for Charter Schools- Acct: (1115)  Question on the Audit Questionnaire, (No. 14,  Page 2), At least one of the following forms was filed with ISBE late: The FY15 AFR, FY15 Annual Statement of Affairs or FY16 Budget (Explain in the comments box below).

Illinois State Board of Education 9 FY16 AFR Reminders cont..  Indirect Cost Rate Calculation (page 30, line 10) Food Services – Enter only Food cost here  Submit all AFR and revised AFR documents through the Attachment Manager to “ Annual Financial Report ” or email: AFR@isbe.net  If applicable break links before submitting AFR form to show values in all cells

Illinois State Board of Education 10 Example - Breaking Links

Illinois State Board of Education 11 Legislation  SB1403 & HB4022 Now SB231 & SB 16  Changes funding formula  Does not include site based accounting

Illinois State Board of Education 12 Single Audit - Federal Compliance Report Forms  These forms are available for districts who require a Single Audit to be completed.  Please do not remove any sheets from the AFR and do not rename any of the tabs.  New threshold amount is $750,000

Illinois State Board of Education 13 Discuss Reports with the District  When discussing the audit with the district, please suggest the district compare the following reports with the prior year’s values. Profile Score and Designation  Administrative Cost Percentage  Operating Expense Per Pupil/Per Capita Tuition Charge and 9  Month Average Daily Attendance (OEPP/PCTC 9 MO ADA) Indirect Cost Rates (ICR)   Any questionable differences should be brought to ISBE’s attention immediately.

Illinois State Board of Education 14 Due Dates  AFRs are due to the ROE/ISC by October 15, annually  AFRs are due to ISBE by November 15, annually (unless an extension is granted)  Extension of Time can be granted by the ROE/ISC up to December 15, annually  ROEs are to submit their extension approval immediately to ISBE Note: Any due date that falls on a Saturday will be due on the Friday before. Any due date that falls on a Sunday will be due on the Monday after.

Illinois State Board of Education 15 Downloading & Submitting the AFR AFR Form: http://www.isbe.net/sfms/afr/afr.htm School Business Services Division: http://www.isbe.net/sbss/default.htm

Illinois State Board of Education 16 16 Questions? School Business Services Division Office Phone: 217/785-8779 Office Fax: 217-782-6096 Division Email: finance1@isbe.net Christine Kolaz: ckolaz@isbe.net Debbie Hemberger: dhemberg@isbe.net Scott Durr: sdurr@isbe.net