School Financial Reporting
◊
Leigh Ann Kerr, Assistant Director, School Business
Andrew Cox, Section Chief
Richard Smith, Accountant
Susan Holly, Salary Analyst
1
Agenda
• New Finance Officers - Session Two
• School Financial Reporting
• Salary Overview
• UERS/Reporting
• Cash Management Monitoring System
What We Do
 Collect the data
 Audit the data
 Analyze the data
 Provide Information
School Financial Reporting
Section Chief
Andrew Cox
UERS Reporting
Roxane Bernard
Richard Smith
Gwen Tucker
Vacant
Student Accounting
Sandra Johnson
Ozella Wiggins
Angela Harrison
Salary Audit
Tiandra Alli
Sue Holly
Who Does What?
 Andrew Cox: (919) 807-3708
Section Chief
 Roxane Bernard: (919) 807-3725
General Reporting Issues, Chart of Accounts,
MFR/AFR Issues
 Richard Smith: (919) 807-3729
Zero-Out, Data file, Invalid Account Codes
 Vacant: (919) 807-3716
Federal/State Expenditures and Adjustments,
Disability Reimbursements
Who Does What?
(Continued)
 Gwen Tucker: (919) 807-3715
Financial Business Systems
 Sue Holly: (919) 807-3735
Salary Analyst
 Tiandra Alli: (919) 807-3736
Salary Analyst
Who Does What?
(Continued)
 Sandra Johnson: (919) 807-3737
Student Accounting – SAR, RPG, GRS
 Ozella Wiggins: (919) 807-3757
Student Accounting – PMR (ADM, etc…)
 Angela Harrison: (919) 807-3734
Student Accounting – PPAR, GDVS
School Financial Reporting
Salary Overview
 Salary Manual & Salary Schedules
 Salary Manual contains legislative updates & all salary
related information.
 Salary schedules are approved annually by the General
Assembly and sets a minimum pay based on the
educator’s years of experience and education level.
 Attach A – lists certified budget codes and their
required licensure areas for salary calculation
purposes.
 online at
9
Salary Overview
 Chart of Accounts – provides the allowable current
year accounting codes for each program funded from
state or federal funds; shows how these funds were
expended.
 Most accurate COA can be found in AS400
(BUD) (updated daily). However, the COA is
also on the FBS website (updated monthly).
 Financial communication between LEAs & DPI.
10
Salary Overview
 Salary Administration System
 LicSal
License Information
 Renewal
 Initial Issue Date
 Expiration Date
 Teaching / Non-teaching experience
 Licensure Areas
 Degree(s) with date received
 Employment History
 Form G information
 Contact Helpdesk for access/login to LicSal at

(919) 807-HELP (4357)

Email:
11
Salary Overview
 LicSal


Voucher Inquiry – detailed check info.
 Net gross amount
 Days pd/emp
 %emp
 Dayspp
 Sch#
Avoid a number of BUD errors by referring to
voucher inquiry before submitting batches. Source of
“incorrect payline gross” denials.
12
Voucher Inquiry
Voucher Inquiry
Salary Overview
13
National Boards (NBPTS)
 National Board for Professional Teaching Standards (NBPTS)
 To qualify:
 Teacher must spend at least 70% of their time teaching in the classroom.


This does not mean they must be 100% employed. If a teacher is 50%
employed, 70% of that time must be spent in classroom instruction.
NO PAY DECREASE FOR TEACHERS THAT BECOME ASSISTANT
PRINCIPALS

Get to keep NBPTS if last assignment was classroom teacher.
 Other areas that qualify for NBPTS pay (70% not applicable):



Media Coordinator
Guidance Counselor
Career Development Coordinator

These 3 areas need to be coded to specific budget codes
14
National Boards (NBPTS)
 Additional questions regarding NBPTS, contact:
 Dr. Sonja Brown



Office: (919) 807-3358
Fax: (919) 807-3362
Email: sonja.brown@dpi.nc.gov
15
Installment Pay Requirements
• Must be a 10 month employee to be
eligible for installments.
• Must opt-in at beginning of the year – not
midyear or otherwise.
• If employee is split funded, installments
must be paid proportionate to how the
person is paid during the year.
– Example: paid 50% State & 50% Federal
• Then 50% of installments must come out of state;
all installment pay should not come out of state
funds.
16
ROTC
 The contracts between the military and
LEAs for the ROTC programs require that
ROTC instructors are compensated at
their military active duty pay level (MIP).
 ROTC instructors should be coded to
5110-001-123.
 The state will pay up to 50% of the MIP.
17
ROTC
 Calculations:
1. ROTC mandated monthly salary x 50% = Amt to be paid btw
state & local or all local
 $6,327.94 x 50% = $3,163.97
2. Amt from step #1 ÷ Certified Salary = % payable out of state
funds (% of cert salary).
$3,163.97 ÷ $3,711 (A10) = 85.26% (pd out of state funds object
123)
3. 100% - % payable from state funds (#2) = % pd from local funds
(123 object code)
 100% - 85.26% = 14.74% pd from local funds
$3711 x 14.74% = $547.00
4. Mandated monthly salary (#1) – Certified Salary (#2) = Amount
paid out of local funds (object 187).
 $6,327.94 - $3,711 = $2,616.94 (coded to local object 187)
18
ROTC
Note:
Amount in step #1 (amt pd from state), + #3 (amt pd from
local 123) + #5 (amt pd from local 187) = total amt. of JROTC
mandated monthly salary.
o Total should be as close to MIP as possible.
o $3,163.97 + $2,616.94 + 547 = $6,327.91
o $6,327.94 - $6,327.91 = $0.03.
Amount pd from State obj. 123 + Local obj. 123 = Cert Salary
19
Correct & Incorrect SSNs
 Salary Analysts do not change SSNs.
 Incorrect SSNs come from the LEAs payroll data;
usually a result of miskeying.
 Notify Salary of incorrect SSNs.
 Analysts will move vouchers from incorrect SSN to
correct SSN (likely to clear audit exceptions).
 Analysts will also notify Licensure for them to delete
incorrect SSN from the system.
20
Audit Exception Causes & Prevention
 What is a Salary Audit Exception?
 DPI reviews the salaries of public school employees and
compares what they are paid to what they should be paid.



Certified salary in voucher inquiry is what DPI
says they should be paid and Payline Gross is
what the LEA is actually paying the employee.
When Certified Salary & Payline Gross differ
OR
When days pd/emp, or %emp do not mesh
with the certified salary, you get an audit
exception
 Audit Exceptions are only created on State and Federal
paid certified budget codes.
21
Audit Exception Causes & Prevention
 Held Harmless
 Form G
 LEA paying incorrectly (difference between cert







salary & payline gross)
Days pd/emp on adjustment vouchers
Incorrect days pd/emp, %emp, or absences.
Teacher Count for Principals
Experience added or decreased
Employee coded to incorrect/invalid budget code
(not certified to be paid from that code)–“Zero Salary
Probable Out of Field”
Timing Issues / No License Info.
BUDs
22
Audit Exception Causes & Prevention
 Held Harmless
 Teachers employed during the 2012-2013 school year who
did not work the required number of months to acquire
an additional year of experience on their license shall not
receive a decrease in salary. Their salary should be held
harmless.
 If an employee was not in pay status during the 2012-13
fiscal year, their salary is not held harmless and should be
paid based solely on their years of experience.
 If the employee was on an approved leave of absence
during the 2012-13 fiscal year, their salary should be held
harmless. Contact the Salary Analysts to manually certify
the salary.
23
Audit Exception Causes & Prevention
 Held Harmless
 Changes in years of experience, education, or area of
assignment are not held harmless.
 Principal salaries are not held harmless. Their salary
should be adjusted, either up or down, based on teacher
count.
24
Audit Exception Causes & Prevention
 Form G
 Licensure Section grants approval for pay to the
teacher/administrator who holds a master’s, advanced, or doctorate
degree in a non-teaching area and the degree is directly relevant to
the teacher’s/administrator’s area of assignment.

LEA and school specific.

Submit forms early; comply with Licensure deadlines.
 LEA paying incorrectly
 Difference in years of experience, education, and/or certification
area

Pay NEW employees that have never worked with your LEA before as an
A00 $3080 until you receive confirmation from Licensure and Salary
Administration (audit exception) that the employee should be paid at
the higher salary.

SAVE TIME, MONEY, & HEADACHE!
25
Audit Exception Causes & Prevention
 Days pd/emp on adjustment vouchers
 Days pd/emp should not be on adjustment vouchers.
Submit IPC batch to change days pd/emp to zero.
 Negative checks should not have negative days
pd/emp.

Creates underpayment
 Incorrect days pd/emp, %emp, or absences
 Submit IPC batch to correct.
 Teacher Count for Principals
 Be sure NOT to award 1 for 3 starting FY2009-2010.
26
Audit Exception Causes & Prevention
 Teacher Count for Principals
 Teacher Count calculated at 3pp (September),
7pp (January) and 11pp (May). Any changes to
count have to be made before these pay periods and
salary is retro to July 1st.
 Teacher Count includes state funded teachers,
student service personnel, and Assistant Principals
with at least 5 months of service.
 Refer to Salary Manual pg. C-4 – “Determining
Teacher Count”.
27
Audit Exception Causes & Prevention
 Experience added or decreased
 Can verify years of experience and salary with Salary
Analyst. May need to contact Licensure if question
regarding years on license.

Licensure – (919) 807-3310
 Employee coded to incorrect/invalid budget code (not
certified to be paid from that code)
 “Zero

Salary Probable Out of Field”
Salary system could not calculate a salary, therefore a zero
certified salary was assigned.



Incorrect budget code
Manual Teacher Orientation certification needed
No License information available.
 Submit BUD batch to change budget code according to
certification area and position responsibilities.
 Refer to Attach A for position descriptions.
28
Audit Exception Causes & Prevention
 Timing Issues
 The LEA receives documentation from the teacher
(a copy of the degree) and assigns the new salary in
the LEA system at M-10.
 The Licensure Section has not updated license
information on employment inquiry screen in the
LicSal system.
 As a result, you get an audit exception because DPI
would still pay at A-10 instead of M-10.


The adjustment will be made to the salary once the
Licensure Section has updated the teacher’s license
information.
It’s best to continue paying at the lower rate until the
license has posted.
29
Audit Exception Causes & Prevention
 BUDs
 Moving Partials

Negative record does not have to match
days pd/emp or %emp.
 Refunding Overpayments


Days pd/emp should be zero
Or be sure to change the % employed to
calculate with certified salary.
30
Audit Exception Causes & Prevention
 Notes
 Audit exceptions are now popping earlier for those on
installments. They are currently showing for your
review well before June 30th.
 Expiring PRCs (ex. PRC 155 in 2013)


Underpayments must be paid from local funds. Notify Sue
or Tiandra with voucher#, budget code, and amount paid
to manually clear underpayment.
Overpayments must be submitted to DPI with paper 202
and paper check.
31
Audit Exception Causes & Prevention

Notes


Supplemental coding, especially for federal,
should be coded to the correct object code
without days pd/emp and absences.
To see a list of individuals on the web by LEA
that currently have Form G approval.



Log onto LicSal
Click on Licensure
Scroll down and click on “Form G
approval list”
32
Audit Exception Causes & Prevention

Notes

Substitute Teachers &
Non-Certified Personnel



The State sets the minimum & maximum salaries
by grade for non-cert employees.
The LEA determines the specific salary amount.
When non-certified personnel become certified
make sure to move the sub vouchers to the certified
budget code.
33
BUD
 Functions performed in BUD:

UTR – transfer within same fund


REF – refund from one fund to a different fund


Moving from Fund 1 (State) to Fund 2 (Local)
PYR – refund from one fund to a different fund in the prior
year


Moving from PRC 001 and 007 within State Funds
Usually refunding overpayments from local funds.
BUD process once batch is sent
34
BUD
 Functions performed in BUD:

IPC (Instructional Personnel Changes) –
to change non-financial information on
vouchers such as:
 Days pd/emp, dayspp
 %employed
 School location
 Absences
 Installment indicators (remove or add)
35
BUD - IPC
36
BUD – IPC Notes
 The net gross amount field is the only field
that should have a negative sign to indicate the
Negative (FROM) record.
 Once the system locates the match in the
Negative record, the Positive (TO) record
overlays the original record. Make sure that all
other fields are completed. For example: If
you have absences on the original record, and
did not key them on the positive record, your
absences will be deleted.
37
BUD Cheat Sheet
Field
Full Transfer
Partial Transfer
Full Refund
Partial refund
IPC
Unit
X
X
X
X
X
SSN
X
X
X
X
X
School
X
X
X
X
X
Voucher Number
X
X
X
X
X
Voucher PP
X
X
X
X
X
Budge Code
X
X
X
X
X
Payline Gross
X
X
X
X
X
Days Paid
X
X
X
Days Employed
X
X
X
Salary Adjustment
X
X
X
Percent Employed
X
X
X
Note: Items marked with an ‘x’ must match voucher inquiry on negative record.
38
BUD Reminders
 Please be sure to check voucher inquiry
before submitting BUD batches since voucher
detail information can change daily. This will
reduce the chances of denied batches.
 You cannot split vouchers in BUD within the
same budget code. Contact Sue or Tiandra to
split a voucher before transmitting a BUD batch
on the voucher.
 Please email both Sue & Tiandra if you have
Negative Net Gross batches. Batch will
automatically deny if you don’t.
39
BUD Reminders
 If manually keying a batch always use “F6” to create your
offsetting entry for Transfers (UTR), Refunds (REF), and
Instructional Personnel Changes (IPC).
 When refunding or transferring a dollar amount only,
not involving changing percent or days pd/emp, you
should always key “0” days pd/emp. If you do not
change the days pd/emp to “0”, you could create an
exception, add additional experience on employment
history, or create an allotment overdraft.
40
Allotment: Months Allocated vs. Months Used
 Position Allotment Overdrafts
 LEA used more positions than was allotted for the year.
 View Positions Allotted vs. Months Used on LicSal website
(Allotment Reports).



Allotment Overdrafts should be refunded through BUD.
Refund both days & money.
Always leave at least 1 day pd/emp on voucher if employee is on
installments.
 Running total updated instantly after changes to days
pd/emp on a voucher.
••Continue to check your prior year audit exceptions and
allotment balances for changes to avoid penalties.
41
Allotment: Months Allocated vs. Months Used
 Overdraft Calculations
 Everyone except Admin. are paid based on 21.5 days in the
pay period.



Negative amt. x 21.5 = # of days to be refunded.
Calculate daily rate of lowest paid person paid from
that PRC (their certified salary); preferably not on
installments.
Multiply daily rate x # of days to be refunded = net
gross amount to refund
 Administrative Personnel calculated on 22 days in the pay
period.
42
Contacts
 Sue Holly: (919) 807-3735
 Susan.Holly@dpi.nc.gov
 Tiandra Alli: (919) 807-3736
 Tiandra.Alli@dpi.nc.gov
 Licensure Section: (919) 807-3310
 Education & License Updates, Experience Changes, Form Gs
43
School Financial Reporting
Monthly Reports
 JHA351EG – State Allotment Balance Report
 JHA856EG – State Certification Report
 JHA305EG - Federal Budget Balance Report
 JHA314EG - Federal Cash Balance Report
 JHA360EG - State Zero Out Report
 JHA903EG - Federal Zero Out Report
 JHA899EG - DBS/MFR
 Financial Data Report Card
State JHA351EG Report
 State Expenditure Report
 Report is grouped by PRC’s
 Shows account code & transactions
 Shows transactions MTD & YTD
 Shows budget/allotment, total expenses, and
remaining balance
 R02 version includes encumbrances
JHA856EG Report
 State Certification Report
 Show certifications for each month
 Shows expenditures for each month
 Shows ending cash balance for the month
JHA305EG Report
 Federal Expenditure Report
 Report is grouped PRC
 Shows transactions
 Shows budget/allotment
 Shows MTD & YTD expenses
 Shows remaining balance
 R02 version includes encumbrances
JHA314EG Report
 Federal Cash Balance Report
 Shows beginning & ending cash balance
 Shows MTD & YTD certifications
 Shows MTD & YTD expenses
JHA360EG Report
 State Zero Out Report
 Shows beginning cash
 Shows MTD certifications
 Shows MTD expenditures
 Shows cash balance, which is the zero out amount
 Report equates certifications with expenditures
JHA903EG Report
 Federal Zero Out Report
 Shows Authority to Draw balance
 Shows zero out amount per PRC
 Shows total amount of federal zero out
Financial Data Report Card
 Shows your state zero out & percentage
 Shows invalid account codes that were moved by DPI
 Shows UERS payroll & general expense compliance
edits
JHA899EG (MFR) Report
 Monthly Financial Reports
 DBS/MFR Match Report
 Shows MTD & YTD comparison of LEA(MFR) &
DPI(DBS) data for Fund 1and Fund 3
 Differences on this report should be reconcile
monthly!!!
PGA10RP4-E
 MFR Error Messages
 List Posting Errors & Invalid Accounts
 Edits Local, State & Federal codes against the Chart of
Accounts
 Purpose Codes & Object Codes must be valid
 Any items on this report should be corrected by the
final 13th period
PGA10RP4-V
 MFR Verification Messages Issued
 Notification of unusual transaction or conditions: code
notices
 Items on this report do not have to be corrected if they
are valid transactions
 If items need to be corrected, then you correct them
on your ledger only
PGA10RP-1
 Records dropped due invalid data
 Types of invalid date:
 Fiscal year or period not current
 Fund code not 1-9
 First digit of purpose code not 1-9
 Expense codes only in Funds 1-8; PRC or object, purpose
codes cannot be 000
PGA10RP-2
 Information dropped per Finance Officer’s Request
 To request that certain funds, PRC’s be excluded for
per-pupil calculations, complete the “Funds and/or
PRC’s to exclude for MFR Process” form located on
DPI’s website:
www.ncpublicschools.org/docs/fbs/finance/reporting/amfr/excludeform.pdf
PGA10RP-5
 MFR Revenue & Expenditure Summary
 Shows revenue & expenditure codes including
installment differences by PRC
 Funds categorized by: State, Federal, Local
 Each Fund shows total revenues, expenditures, and
differences
 Differences could be encumbrances
 Are your state, federal, local flags correct?
Invalid Account Codes
Never bypass Invalid Code warning
Invalid codes must be corrected
Submit corrections in BUD or form 202
Do not combine federal & state codes on same form
202
 Cannot send form 202 for a refund without a check
 Review Financial Data Report Card & MFR




MSA System Training (DPI’s Ledger)
 View allotments & carry-over amounts
 View expenditure postings by PRC & account
 View BUD entries (refunds & transfers)
 Verify cash certifications
 View zero out entries
 Check funds/cash available to request
Monitoring & Compliance
Cash Management Monitoring System
 What is the Cash
Management Monitoring
System (CMMS)?
 CMMS is an online system
that went live on March 28,
2013
 CMMS was developed by
DPI to assist LEAs with
monitoring cash
management compliance.
Cash Management Monitoring System(continued)
 What is cash management compliance?
 The State and its sub-recipients must comply with the principles of
cash management; EDGAR 34 CFR § 80.21

Fiscal compliance requirements on grant recipients:



Three Day Rule, also known as the CMIA (Cash Management Improvement
Act)
NC Treasury State Agreement (TSA)
LEA’s requests for federal funds must be timed so that funds are on
deposit in the account with the State Treasurer no more than three (3)
business days prior to the date of the disbursement.
Cash Management Monitoring System(continued)
 What are the benefits of CMMS?
 Allows for cash management compliance self-monitoring by the
LEA and monitoring by DPI, Federal agencies, etc.
 Provides two key reports that can be used to determine if an LEA
has disbursed 100% of a requested federal draw within three
(3)business days of the cash receipt date


Audit Compliances Report
Daily Report (Summary)
Cash Management Monitoring System(continued)
Audit Compliances Report
Cash Management Monitoring System(continued)
Daily Report(Summary)
Cash Management Monitoring System(continued)
 How to subscribe to CMMS?
 To subscribe you must have a valid NCID and password.
 To obtain an NCID contact the NCID administrator for your LEA or Charter
School.
 To locate your administrator, go to: www.ncid.its.state.nc.us/LEAListing.asp.
Cash Management Monitoring System(concluded)
 If you have questions
regarding Cash Management
Monitoring or the Cash
Management Monitoring
System (CMMS), please
contact Karen Frazier:
 Karen.Frazier@dpi.nc.gov
 Telephone: 919-807-3738