Business Manager and CFO Roundtable Discussion Highlights
Explore the insights from the Business Manager and CFO Roundtable Discussion held on July 27, 2016, featuring discussions on upcoming events, recent correspondence updates, small group discussions, future meeting plans, and valuable sponsor profiles like Daikin Industries and Office Depot's Commitment to Learning. The event also highlighted the advantages of National IPA/TCPN Cooperative Purchasing in saving time and costs for entities.
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Business Manager and CFO Roundtable Discussion July 27, 2016 Hank Johnson Consultant
Agenda Introductions Upcoming Events Updates on Recent TEA Correspondence Current News and Updates/Reminders Small Group Discussions Discussion for Future Meetings Questions and Comments
The World Leader In HVAC Daikin Industries, a Fortune 1000 company is the largest air conditioning company in the world. Combining advanced technologies and R&D capabilities, Daikin is creating innovative products, systems and services that benefit the industry and the lives of our customers. And with more than six million square feet of manufacturing space and 5,000 dedicated employees in 75 countries on six continents, Daikin Applied is uniquely positioned to make sure our products and services are always within our customers reach.
Office Depot Business Solutions Division: About Office Depot and its Commitment to Learning With a "Commitment to Learning Office Depot s integrates education-focused contract division with a wealth of best-in-class partners across the instructional ecosystem of people, learning environments, content, data and materials. By listening to the unique needs of individual educators, the company creates solutions that directly address their student bodies. Committed to Learning" is more than a slogan for Office Depot; it s a pledge that Office Depot brings to life every day. The Committed to Learning philosophy is perhaps best exemplified by Office Depot s trusted network of Learning Consultants. These professionals, many of which are former educators, bring their experience to bear in collaborating with superintendents and curriculum developers. The group operates with a student- centric mindset that maximizes district budgets while delivering solutions and education-sector expertise to meet the changing needs of students today.
National IPA/TCPN Cooperative Purchasing saves you time and money. Participating in the cooperative buying power of more than 42,000 entities allows you to pay less for products and reduce administrative costs, which helps you do more with less. So why are National IPA/TCPN so effective at creating more economical buying opportunities for you? Because we offer strength in numbers and years of government purchasing experience, you can have confidence in every contract.
Contracts are competitively bid, evaluated and awarded by a government entity acting as the lead agency. Contracts are awarded utilizing industry best practices, processes and procedures, ensuring maximum value and absolute security with complete transparency of the process. Contracts are actively monitored through third-party compliance reviews. TCPN s lead agency maintains ISO 9001:2008 certification for bid process consistency. Most experienced cooperative team in public procurement, cooperative purchasing and supply chain management. Founding Member of National Coalition for Public Procurement. Robust portfolio of quality contracts. In these days of dwindling dollars, you want a partner who can help strengthen your buying position, reliably and consistently. Visit us online at nationalipa.org or tcpn.org.
Upcoming Events October 11th - Public Funds Investment Training The ESC Region 11 Business Center is hosting a Public Funds Investment Training presented by guest speaker Patrick Shinkle, Associate Director for the Center for Public Management at the University of North Texas. CPAs will receive 5 hours of CPE credit.
Recent TEA Correspondence: Indirect Cost Rates Available for SchoolYear 2016 2017 Approved indirect cost rates open-enrollment charter schools, independent school districts, and education service centers. Effective July 1, 2016, through June 30, 2017. Restricted and Unrestricted Indirect Cost Rates Restricted rate is used for grant programs covered by a supplement, not supplant provision Unrestricted rate is used for grant programs without such a provision.
Recent TEA Correspondence: 2014 2015 Final IDEA-B LEA MOE Compliance Reviews Results are in the GFFC Reports and Data Collections TEASE or TEAL Compliant, or Noncompliant LEAs Will receive instructions on how to refund the amount due Separate letter from TEA
Recent TEA Correspondence: Jobs and Education for Texans (JET) Grant Program Texas Workforce Commission (TWC) announced the availability of $10 million in job-training funding 2016-17 biennium. For the purchase of equipment needed for use in career and technical programs Prepare students for high-demand jobs in Texas. Independent school districts are now eligible If the district has entered into a partnership with a public junior college or public technical institute. Competitive grant
Recent TEA Correspondence: 201516 Reporting Requirements for Community and Student Engagement Reminder that Texas Education Code, 39.0545, Requires each district and charter school to annually evaluate its performance and the performance of each of its campuses in the area of community and student engagement Each district and charter must assign a performance rating: exemplary, recognized, acceptable, or unacceptable to itself and to each of its campuses.
Recent TEA Correspondence: 2016 Tax Information Survey Submit tax collection data opened for data submission June 1, 2016 closes at midnight on August 31, 2016 Not applicable to charter schools Important More accurate calculation of 2015 2016 near-finalSummary of Finances (SOF) estimates September 2016 Otherwise: Tax collection data implemented from J1 schedule as part of its annual financial and compliance report -2015 2016 SOFuntil April 2017
Recent TEA Correspondence: Adjustment to the Compressed Tax Rate Eligibility Criteria: CTR must be below $1.00. Current year M&O tax rate must be higher than your current CTR plus $0.06. For the 2015 2016 and 2016 2017 school years Must request that the Texas Education Agency (TEA) make this adjustment.
Recent TEA Correspondence: Adjustment to the Compressed Tax Rate Effect of Adjustment to the CTR: Shifts tax effort out of Tier 2 into Tier 1 Increase the adjusted allotment used to calculate the Tier I entitlement Increase the local share of Tier I Reduce overall recapture Reduce the allotment under Additional State Aid for Tax Reduction (ASATR)
Recent TEA Correspondence: Adjustment to the Compressed Tax Rate Shift From $31.95 per WADA per penny of tax effort To $51.40 (adjusted) per penny of tax effort
Recent TEA Correspondence: Risk assessment level for school year 2016 2017 TEA is required to evaluate each sub-recipient s (ISD and Open Enrollment Charters) risk of noncompliance with federal statutes, regulations, and the terms and conditions of the sub-award To determine the appropriate sub-recipient monitoring Access your risk level through TEASE or TEAL
Recent TEA Correspondence: New Campus Charter Schools Established by ISD Start-Up Grant Funding School districts planning to open a charter campus as early as the 2017 school year, May be eligible for up to $800,000.00 in federal funding to assist with initial start-up costs Eligible to apply for funding under the 2017-2019 CSP Start-Up Grant a district must: Amend local district policies for authorizing campus or campus program charters: to ensure that they meet Absolute Priorities 1 and 2 of the 2015 CSP Grant, as well as the requirements of Texas Education Code (TEC) Chapter 12, Subchapter C; and Submit amended policies to the TEA for review by August 31, 2016.
Recent TEA Correspondence: 2016- 2017 Teacher Shortage Areas and Loan Forgiveness Programs The approved shortage areas for the 2016-2017 school year are: Bilingual/English as a Second Language Elementary and Secondary Levels Career and Technical Education Computer Science/Technology Applications Mathematics Science Special Education Elementary and Secondary Levels
Update: Summary of Finances 2015-2016 Summary of Finances Near-Final September 2016 Student attendance Tax collection if survey is completed by August 31 Final April 2017 Tax Collections reported in annual financial report
Update: SOF Template New Template June 24, 2016 Correction to M&O hold harmless calculation Increase per capita to $388
Update: Review 2015-2016 Estimates Projections: Compare actual tax collections to estimates Compare annual attendance Recalculate state funding Recalculate recapture
Update: 2015 Preliminary Property Values 2015 preliminary property values Property values - Possibly overstated or understated Work with appraisal district to verify accuracy Overstated consider property value audit Understated consider leave as is
Update: 2016-2017 Budget Projections: 2016-2017 Students Enrollment Compare to 2015-2016 final Attendance Compare to 2015-2016 final Weighted Average Daily Attendance
Update: 2016-2017 Budget Projections: 2016-2017 Revenue Property values - Certified Roll due July 25 Tax revenue calculations - Revisit State funding - Recalculate ASATR Recapture
Update: EDGAR FAQs Clarifications: 6.4 Clarification on travel or registration fees for employees of member LEAs of the SSA . 9.8 Record retention clarifies conflicting information stating that required retention is 5 years, not 3 years.
Update: EDGAR FAQs New FAQs: 2.4 Audit procedures when the single audit is not required: Auditor will follow the required testing procedures regardless of single audit status Test a sample of all LEA transactions including federal grant transactions Auditor will not select and test specific federal grant transactions 3.8 Adds clarity to the timing of payments and the drawdowns for those payments. 3.9 Schedule of Expenditures of Federal Awards (SEFA) source documentation: Information may be included in the SEFA and not necessarily expected to be reflected in the general ledger, but location of source documentation must be described in local policy.
Update: EDGAR FAQs New FAQs: 3.10 Which areas or functions of grant management must have internal control procedures? All areas of grant management including administrative, fiscal, and programmatic functions must have internal controls. 3.11 How does an LEA document to its auditor or TEA that the LEA has appropriate internal controls in place? The primary documentation for internal controls is written policies and procedures and verification that the policies and procedures are actually implemented and reviewed on a periodic basis.
Update: EDGAR FAQs New FAQs: 5.8 Documentation of allowable travel expense: Supported by travel policies and procedures Include roles and responsibilities Description on how travel is relevant to the grant program 7.36, 7.37, 7.38, 7.39 and 7.40 New FAQs covering LEA purchasing guidelines including: Use of purchasing cooperatives, compliance certification The use of a federal grant share as a micro-purchase: TEA advises instead to follow local policy on total procurement standards Purchase orders are not an appropriate mechanism for determining the procurement method Vendor approval
Update: New Overtime Rules Final Regulations released May 18, 2016 Changes Fair Labor Standards Act Exempt vs Non-Exempt Increase annual salary threshold from $23,660 to $50,440 $47,476 Weekly threshold from $455 to $970 $913 Overtime
Update: New Overtime Rules Final Rule Effective December 1, 2016 Identify employees affected by new rule Plan for implementation Timekeeping Overtime budget
Update: New Overtime Rules Teachers 187 days or 38 weeks X $913 = $34,694 Central Office 226 day or 46 weeks X $913 = $41,998 Certified Support Part-Time professionals
Update: New Overtime Rules The Protecting Workplace Advancement and Opportunity Act (S. 2707 and H.R. 4773) bills: Pending in U.S. Congress If passed may nullify this rule
Update: Proposed Changes to Financial Accountability Rating System Released June 22, 2016 Indicator 5 revision Adds pension expense and net pension liability (NPL) instead of subtracting the variable from the calculation. Indicators 6, 9, and 10 revision Removes the pension expense and NPL from the calculation since these amounts are not applicable to these indicators. Indicator 10 would be revised to adds function code 81 - capital outlay to make the indicator more uniform for all districts. The proposed changes would be effective for the 2015-16 rating year and subsequent years.
Current News Courts issued opinion on current funding system: meets constitutional requirements: Governor Greg Abbott called it a victory for Texas taxpayers and the Texas Constitution HouseSpeaker has called for an interim study of components of the system Courts Opinion - Our Byzantine school funding system is undeniably imperfect, with immense room for improvement. But it satisfies minimum constitutional requirements What is next?
Small Group Discussion 2016-2017 Budget and Planning After court finding Expectations from 2017 legislative session What does multi-year planning now look like TREs? Status Quo?
Discussion for Future Meetings Future Topics Dates for Future Meetings
