FPP Handbook and COA
Changes Update
December 8, 2011 at 2pm

Financial Policies and Procedures Handbook http://www.cde.state.co.us/cdefinance/sfFPP.htm

Financial Policies and Procedures Handbook

Purpose of the FPP Handbook
• 1) To summarize state and federal general requirements regarding the management and reporting of financial data.
• 2) To ensure that educational financial data are reported in a comprehensive and consistent manner.
• 3) To provide information and guidance regarding the budgeting, accounting, reporting, auditing, investment and cash management of educational finances.

Purpose of the FPP Handbook
• The Handbook has been developed to conform to generally accepted accounting principles (GAAP) for governments and compliance with legal provisions.
• Any reference to “school district(s)” also includes
Charter Schools, Boards of Cooperative
Educational Services (BOCES), Charter School
Collaboratives, and Charter School Institute (CSI).

Financial Policies and Procedures
• C.R.S. 22-44-204(3) requires that the Financial
Policies and Procedures Handbook shall be used by every school district in the development of the budget, in the keeping of financial records and in the periodic presentation of financial information to the board of education of the district.
• The FPP Handbook includes (as the Red Book) the required statewide Chart of Accounts (COA).

Financial Policies and Procedures
• State Audit law also requires school district auditors to ensure, in their annual financial audit, that school districts are complying with the requirement to use the Handbook . C.R.S. 29-1-603(1).

FPP Handbook Table of Contents
• Procedures
• Budget
• Accounting and Reporting
• Audit
• Investment and Cash Management
• Glossary
• Appendices
• Contacts

FPP Handbook Changes
• Under “Accounting and Reporting” Section:
• A discussion of the new “Non-voter Approved Debt
Service Fund” was added.
• Fund code 39 should be used for Non-voter
Approved Debt.
• Fund 39 must not be comingled with any voter approved debt activities.

FPP Handbook Changes
• Under “Budget” Section:
• Clarification was added to the section on “District
Emergency Reserve”
• If you are considering – call me at 303-866-6610 to discuss.

FPP Handbook Changes
• Under “Accounting and Reporting” and “Audit”
Section:
• A discussion of the requirement that all charter schools must have a separate independent financial audit.
• A Federal finding that we could not avoid.
• A copy of the letter to charter schools and their authorizers is on CDE’s website under FPP.

FPP Handbook Changes
• Under “Glossary” Section:
• Add an item for “On-line Schools and Programs”
• Discusses the new requirement to track on-line school and program activities using a unique and specific location code (461 to 469)

FPP Handbook Changes
• Under “Accounting and Reporting” Section:
• Added additional information related to the
Financial Transparency Act requirements.

Financial Transparency Act
With the passage of HB10-1036, The
General Assembly enacted the "Public
School Financial Transparency Act", which directs local education providers to post financial information on-line, in a downloadable format, for free public access .

Local Education Provider
• School District
• Board of Cooperative Services
• State Charter School Institute
• District Charter School
• Institute Charter School

Compliance Timeline
Commencing July 1, 2010
• FY2009-10 and FY2010-11 Annual Budgets
– District Budget Document
– Uniform Budget Summary Sheet
• FY2009-10 Financial Audit
• Quarterly Financial Statements
• Salary Schedules or Policies

Compliance Timeline
Additionally commencing July 1, 2011
• Accounts Payable Check Registers
• Credit, Debit and Purchase Card Statements

Compliance Timeline
Additionally commencing July 1, 2012
• Investment Performance Reports

Compliance Timeline

Financial Transparency Act
22-44-304 (2) C.R.S.
Nothing shall direct or require a local education provider to post personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure pursuant to state or federal law.

Financial Transparency Act

Financial Transparency Act

Website Link

Budget – contents – mandatory
C.R.S. 22-44-105
• The budget shall be presented in the format established by the state board of education.
• The budget shall:
– Be presented in a summary format, understandable to layperson.
– Be presented in a summary format that allows for comparisons of revenues and expenditures among school districts by pupil.
– Be presented in a format that itemizes expenditures by fund, by pupil.

Budget – contents – mandatory
C.R.S. 22-44-105
– Describe the expenditure
– Show amount budgeted for current fiscal year
– Show the amount estimated to be expended for the current fiscal year
– Show amount budgeted for ensuing fiscal year
– Summarize revenues by revenue source
– Summarize expenditures by function (program), fund and object

Budget – contents – mandatory
C.R.S. 22-44-105
– Include a uniform summary sheet for each fund that details the following:
• Beginning fund balance and estimated ending fund balance
• Anticipated fund revenue by source
• Anticipated transfers and allocation to and from the fund
• Anticipated expenditures by program and object
• Amount of reserves

FY2010-11 SUMMARY BUDGET
SCHOOL DISTRICT
Budgeted Pupil Count
BEGINNING FUND BALANCE
(Includes ALL Reserves)
REVENUES
Local Sources
Intermediate Sources
State Sources
Federal Sources
TOTAL REVENUES
DISTRICT
CODE
18
11 Insurance
10 Charter School
General Fund Fund
Reserve / Risk-
Management
19
Colorado
Preschool
Program
21
Capital Reserve
0.0
Object/ Source
1000 - 1999
2000 - 2999
3000 - 3999
4000 - 4999
TOTAL BEGINNING FUND BALANCE & REVENUES
TOTAL ALLOCATIONS TO/FROM OTHER FUNDS
TRANSFERS TO/FROM OTHER FUNDS
Other Sources
AVAILABLE BEGINNING FUND BALANCE &
REVENUES (Plus or Minus (if Revenue) Allocations and Transfers)
5600,5700, 5800
5200 - 5300
5100,5400,
5500,5900,
5990, 5991
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

QUARTERLY FINANCIAL REPORT 22-45-102(1)(b)(I-IV)
Statue requires the board of education to review the financial condition of the district at least quarterly during the fiscal year. The board shall required the appropriate district personnel to submit a financial report covering the fiscal actions involving the general fund and any other funds that the board may request, at least quarterly.
GENERAL FUND
BEGINNING FUND BALANCE
REVENUE
EXPENDITURES
ENDING FUND BALANCE
FY20XX-20XX (Prior Year)
For Period Ending September 30, 20XX
BUDGET ACTUAL
PERCENTAGE OF
BUDGET
250,000.00
3,000,000.00
3,000,000.00
250,000.00
250,000.00
650,000.00
750,000.00
150,000.00
21.67%
25.00%
60.00%
FY20XX-20XX (Current Year)
BUDGET
250,000.00
3,120,000.00
3,080,000.00
290,000.00
For Period Ending September 30, 20XX
ACTUAL
PERCENTAGE OF EXPECTED YEAR END
BUDGET BALANCE
260,000.00
680,000.00
760,000.00
180,000.00
21.79%
24.68%
62.07% 300,000.00
CAPITAL
RESERVE
BEGINNING FUND BALANCE
REVENUE
EXPENDITURES
ENDING FUND BALANCE
FY20XX-20XX (Prior Year)
For Period Ending September 30, 20XX
BUDGET ACTUAL
PERCENTAGE OF
BUDGET
10,000.00
131,000.00
130,000.00
11,000.00
10,000.00
32,751.00
8,000.00
34,751.00
25.00%
6.15%
315.92%
FY20XX-20XX (Current Year)
BUDGET
For Period Ending September 30, 20XX
ACTUAL
PERCENTAGE OF EXPECTED YEAR END
BUDGET BALANCE
11,000.00
131,000.00
133,000.00
9,000.00
11,000.00
32,751.00
40,000.00
3,751.00
25.00%
30.08%
41.68%
Specific Resolution Needed for Use of Portion of BFB
9,000.00

Website Link

District Website Links
Adams 12 Five Star
Website
Colorado Springs 11
Website
The Academy of Charter Schools
Website
Don’t make the page hard to find, it should be no more then 1-2 mouse clicks from the homepage.

PSFU Website Links
Public School Finance Homepage
Website
FY2011-12 Funding Information
Website
Public School Finance Self-Study Training Sessions
Website

Chart of Accounts http://www.cde.state.co.us/cdefinance/sfCOA.htm

Chart of Accounts

Chart of Accounts Table of Contents
Introduction
Fund
Location
Special Reporting Element
Program
Object/Source/Balance Sheet
Job Classification
Grant/Project
Optional Dimensions
Appendices

Chart of Accounts Changes
Under “Fund”:
New Bolded Fund Code 39 – Nonvoter Approved Debt Service Fund
Funds 30, 32 – 38 roll to Fund 31 and Fund 39 rolls to itself.

Chart of Accounts Changes
Under “Location”:
The current 461 location code for reporting On-line Activity was expanded to bold codes 461 to 469
This was done to accommodate the tracking and reporting of on-line school and program detailed activities through the ADE financial data submission process.

Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Multiple Changes to Balance Sheet
Codes to be in compliance with GASB
Statement 54.
Changes retroactive to July 1, 2011.
Do not use new codes for FY10-11 ADE financial submissions.

Chart of Accounts Changes
Under “Program”:
Program Code 9300 for constitutional and legally mandated reserves
Codes are now tied to the GASB 54 restricted reserve coding
Therefore, substitute 93XX for 67XX under the restricted codes.
• such as 6721 equates to 9321

Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Modified the Definition of SWAP Object
Code 0960.
Is now – Payments to Outside Entity
Use with a grant code of 3130

Chart of Accounts Changes
Under “Appendices”:
The BOCES and Charter School appendices were updated to include information that sub-granting is not allowed.
In addition, a new ADE edit will not accept Fund 70 – 85 with grant codes of
3000 – 9999.
The entity that CDE provides with the funding is the responsible party for
Federal compliance purposes.

Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Effective for FY11-12 or later?
Based on the use of GASB Statement No.
48 (Sales of future revenues), No. 53
(Hedging derivatives), or No. 60 (Service concession arrangements) – is anyone proposing to implement GASB Statement
No. 63 (Statement of Net Position) early?
Not effective until FY2012-13

Chart of Accounts Changes
Effective for FY11-12 or later?
GASB Statement No. 63:
If anyone is and the activity relates to proprietary funds (not governmental funds) – we need to identify the possible “deferred outflow” or “deferred inflow” codes that should be established.

Chart of Accounts Changes
Effective for FY11-12 or later?
Under GASB Statement No. 63:
6790 – Net Investment in Capital Assets
6791 – Net Position – Restricted
6792 – Net Position - Unrestricted

Chart of Accounts Changes
Under “Grant/Project”:
Beginning FY2012-13
Districts will no longer have an option to use two grant codes for
Federal grants, such as 5031 & 6031
A specific grant code will be assigned that ties to CDE’s funding source (GBL).

Self Study
This file is available on CDE’s website.

Self Study Training Session http://www.cde.state.co.us/cdefinance/
TrainingMaterials.htm

Department Contact Information
Leanne Emm – Assistant Commissioner
303-866-6202 emm_l@cde.state.co.us
Mary Lynn Christel
– Principal Consultant
303-866-6818 christel_m@cde.state.co.us
Wendi Chapin
– Principal Consultant
303-866-6137 chapin_w@cde.state.co.us
Kirk Weber – Supervisor
303-866-6610 weber_k@cde.state.co.us
Terry Christensen – Senior Consultant
303-866-6847 christensen_t@cde.state.co.us
Adam Williams – Senior Consultant
303-866-6843 williams_a@cde.state.co.us

FPP Handbook & COA Changes

FPP Handbook & COA Changes
Please provide comments and information on how we can improve to weber_k@cde.state.co.us
Thanks!