E&D
Camie Lamica
May 14, 2015
What is E & D
• Excess & Deficiency
– Consists of over budget revenues received, under
budget expenditures, and prior year E & D balance
– Cumulative amount
E&D
• Also called the "surplus revenue" account, this is
the amount by which cash, accounts receivable,
and other assets exceed a regional school
district's liabilities and reserves as certified by the
Director of Accounts. The calculation is based on
a year-end balance sheet, which is submitted to
DOR by the district's auditor, accountant, or
comptroller as of June 30. The regional school
committee must apply certified amounts
exceeding five percent of the district's prior year
operating and capital costs to reduce the
assessment on member cities and towns.
Source: Department of Revenue
What does DOR need?
• Combining Balance Sheets for ALL account groups
• Cash Reconciliation amounts=Treasurer and
General Ledger
• Detail analysis of E & D
• Accounts Receivable amount received within 60
days of 6/30 year end
• Revenue Budget and actuals
• Unspent prior year encumbrance amount
Summary of All Fund Types
General Fund
Special Revenue Fund
•
Grants and Revolving
Capital Project Fund
Fiduciary Funds
* Trust and Agency
Where do you start?
•
•
•
•
Reconcile GL cash with Treasurer
Post all year end receivables and payables
Close out prior year encumbrances
Trial balances for each fund account should be
final
What do you need to do financials?
• Trial Balance FINAL for EACH fund by account
For EACH account
• Revenue and Expenditure Statement
• Balance Sheet
Balance Sheet
• Assets =
• Cash
• Due to/Due From
• Accounts Receivable
• Liabilities +
• Accounts Payable
• Accrued Payroll
• Withholding accounts
• Fund Balance
• Reserve for Encumbrance
• Reserve for Subsequent Year Budget
• Unreserved Fund Balance
What to check for?
• Always make sure Prior Year ENDING balance
is the same as the Current Year BEGINNING
balance
How do I put it together?
• Start with Fiduciary Funds – Trust & Agency
– Trust accounts – scholarships and other donations
– Agency accounts – student activity funds
• Revenue and Expenditure Statement
– For each Fund Account record prior year ending fund balance,
current year revenue, current year expenditures and verify
ending fund balance is same on the worksheet as Trial Balance
• Balance Sheet
– For each Fund Account record assets, liabilities, prior year
ending fund balance and current year ending fund balance on
the worksheet verifying same on Trial Balance
• Prepare Combining Fiduciary Fund Statements
T&A Worksheets
What’s next?
• Move to the Capital Project Funds and
prepare the Revenue & Expenditure
Statement and Balance Sheet for each one of
those accounts
• Then move to the Special Revenue Funds and
prepare both statements for all grants and
then all revolving accounts
• Prepare Combining Statements for EACH
FUND TYPE separately (CPF, SRF)
General Fund
• All GF budget operations and assessments
• Budget versus actual = revenue &
expenditures
• Assessments
• Detailed Fund Balance Analysis
• Prior year encumbrance remaining balance
• Current year encumbrance amount
GF Worksheets
Things to Remember
• Deficits – any deficit fund balance in ANY fund
account WILL BE DEDUCTED from the GF
ending fund balance to certify E & D amount
• 5% limit for E & D balance
• Circuit Breaker – FY2015 year end balance no
greater than FY2015 reimbursement
• October 31 filing deadline
DOR Certification
Resources
• Chapter 71, 16B ½
• 603 CMR 41.06