The Other Funds Funds 21, 41, 46, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track Brian Kahl DPI School Finance Auditor.

The Other FundsFunds 21, 41, 46, 60, 72, 73, 80 &

90

WASBO Accounting Conference

New Business Office Staff TrackBrian Kahl

DPI School Finance Auditor

Bruce AndersonDPI School Finance Consultant

March 2015

2

Agenda• The Main Funds• The Other Funds

– 21: Special Revenue Trust Fund– 41: Capital Expansion Fund– 46: Long Term Capital Improvement

Trust Fund – 60: Agency Fund– 72: Private Purpose Trust Fund– 73: Employee Benefit Trust Fund– 80: Community Service Fund– 90: Package & Cooperative Program

Fund"The Other Funds" - WASBO Acct Seminar March

2015

3

The Main Funds

• General Fund• Special Education• Debt Service

– Non-Referendum– Referendum

• Capital Projects• Food Service

F-10

F-27

F-38F-39F-49F-50

"The Other Funds" - WASBO Acct Seminar March 2015

4

The Other Funds• Special Revenue Trust Fund

• Capital Expansion Fund

• Long Term Capital Improvement Trust Fund

• Agency Fund

• Private Purpose Trust Fund

• Employee Benefit Trust

• Community Service Fund

• Package & Cooperative Program Fund– Packaged Services (CESA)– Other Package & Coop Pgm

F-21

F-60

F-80

F-90

F-73

F-41

F-91F-99


F-72

F-46

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Fund 21

• Account for trust funds that can be used for district operations

• Sources– Gifts– Donations from Private Parties

• Expended pursuant to donor specifications, if any

• May carry a fund balance"The Other Funds" - WASBO Acct Seminar March

2015

6

Fund 21

How to use this fund?• District or staff controlled

“activity” accounts• Fund raisers• Targeted donations• Tournaments or

Competitions


7

Fund 21

• Permanent Fund– Should be used to report resources

that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs

– Resources should benefit the government

– Need to keep the corpus intact


8

Fund 21

District/Staff “activity” funds• Activity groups where staff

decides how to raise funds and how to appropriate them– Athletic Fundraisers– School Fundraiser (Example –

Field Trips)– Band Uniforms– School Musical"The Other Funds" - WASBO Acct Seminar

March 2015

9

Fund 21

Why would you use Fund 21 instead of Fund 10?• Shared Cost (Deductible

Receipt if in Fund 10)• Carry balances from year to

year• Comply with donor wishes if

any restrictions placed on use of funds


10

Fund 21

Accounting Transactions• Ledger Accounts

– Revenues– Expenditures

• Balance Sheet Accounts– Assets– Liabilities– Equity (Fund Balance)


11

Fund 21

More information:• When to Use Fund 21

http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc

• WIAA and Other Tournaments and Competitions

http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc


http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc



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Fund 60

Agency Fund• Used primarily to account for

assets held by the district on behalf of pupil organizations

• Parent organization funds may be accounted for here– May not be a separate 501(c)

(3)


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Fund 60

Agency Fund• Only balance sheet accounts

(assets & liabilities) are reported in Budget and Annual reports

But…• Records of receipts and

disbursements must be maintained locally and will be examined during audit


14

Fund 60

Pupil Organizations• Funds are held by the district

for the benefit of the student organizations– District has a fiduciary

responsibility

• Students are the decision makers on how to raise money and how to spend it– Staff advisers only advise, do

not decide"The Other Funds" - WASBO Acct Seminar March 2015

15

Fund 60

Pupil Organizations• Student Council• Class of 20XX• National Honor Society• Yearbook• Drama Club• Foreign Language Club• Other Clubs


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Not Fund 60• Activities where staff make the

decisions are District Activities and accounted for elsewhere

• Examples:– Athletics– Musical– Band Uniforms– Field Trips– Shop Class– Sunshine Club / Coffee Fund*

• Should NOT appear anywhere on the district’s books. These are not district funds."The Other Funds" - WASBO Acct Seminar March

2015

17

Fund 60

Accounting Transactions• Assets

– 711000: Cash– 712000: Investments

• Liabilities– 814000: Due to Student

Organizations

• Equity– None


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Fund 60

Parent Organizations• District may establish agency funds for

parent organizations– Bank accounts in the name of the district– Same policies/procedures as for student

organizations

• Liability Acct 818000: Due to Parent

Organizations• Parent organizations may not use the

district’s tax ID number• Parent organizations may not be a

separate 501(c)(3)"The Other Funds" - WASBO Acct Seminar March 2015

19

Fund 60

More information:

• Agency Fund Guidelines documenthttp://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc

• Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf


http://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc

http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf

http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf

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Fund 41

Capital Expansion Fund• Projects financed with a tax levy

per Wis. Stats. 120.10(10m)– Levy is within the Revenue Limit

• Restricted to capital expenditures related to buildings and sites– Not equipment– Not furnishings

• Requires approval at Annual Meeting"The Other Funds" - WASBO Acct Seminar March

2015

21

Fund 41

Eligible expenditures defined:• For acquiring and remodeling

buildings and sites, and• Maintenance or repair

expenditures that• Extend or enhance the

service life of building, building components, sites and site components"The Other Funds" - WASBO Acct Seminar March

2015

22

Fund 41

Why use Fund 41?• Allows for depreciation of

expenses over length of time• In year of spending - Reduces

shared costs in aid formula– Can reduce the impact of

negative tertiary aid for districts in that position

– Smoothes out aid for positively aided districts.


23

Fund 41

Disadvantage• Restricts use of limited

revenues to qualifying capital expansion projects– Cannot be redirected to use for

general operations or routine maintenance

• Creates additional accounting / reporting requirements


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Yr Levy Expend. Amortized Expenditures Total Amount

1 $105,000 $100,000 $100,000 $100,000

2 $105,000 $100,000 $50,000 $50,000

3 $105,000 $100,000 $50,000 $33,333 $83,333

4 $105,000 $100,000 $33,333 $25,000 $58,333

5 $105,000 $100,000 $33,334 $25,000 $20,000 $78,333

6 $0 $25,000 $25,000 $20,000 $5,000 $50,000

7 $0 $0 $25,000 $20,000 $5,000 $50,000

8 $0 $0 $20,000 $5,000 $25,000

9 $0 $0 $20,000 $5,000 $25,000

10 $0 $0 $5,000 $5,000

T $525,000 $525,000 $100,000 $100,000 $100,000 $100,000 $100,000 $25,000 $525,000

Fund 41Amortizing Expenditures Over Time


25

Fund 41A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar

Click on: Accounting Issues and Coding Examples

or go directly to:http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc

http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt


http://sfs.dpi.wi.gov/sfs_wufar

http://sfs.dpi.wi.gov/sfs_wufaracct_code_ex

http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc

http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt

26

Fund 46Long-term Capital Improvement Trust

Fund (Fund 46)

A school board may establish a “trust” to fund capital improvement projects per their ten year long-term capital improvement plan.

-------------------------------------------

REQUIREMENTS - Getting Started1. Board approved 10 year capital

improvement plan.2. Board resolution to establish a trust.3. Creation of a segregated bank account.


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Fund 46REQUIREMENTS and RESTRICTIONS

● Funds may only be accessed five years after the establishment of the “trust” fund.

● �Funds must be physically deposited and held in a segregated bank/investment (separate and distinct from other district accounts) until they are expended for capital improvement projects per the district’s plan.

● �Funds invested as per sec. 66.0603, Wis. Stats.


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Fund 46REQUIREMENTS and REPORTING

The following must be reported to DPI:

1. Official Board minutes approving the long-term capital improvement plan.

2. Signed resolution creating the Long-term Capital Improvement Trust Fund or official minutes documenting the creation of the fund.

3. Documentation that confirms the existence of a segregated bank/investment account.

http://sfs.dpi.wi.gov/sfs_capital_projects_funds "The Other Funds" - WASBO Acct Seminar March

2015

http://sfs.dpi.wi.gov/sfs_capital_projects_funds

29

Fund 72

Private Purpose Trust Fund• Account for gifts and donations

specified for the benefit of private individuals and organizations not under the control of the school board– Board acts as Trustee of account– Example: Scholarship Fund– Expenditures are made pursuant

to donor specifications


30

Fund 73

Employee Benefit Trust Fund• Used to account for resources

held in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans

• Must be legally established in accordance with state statutes, federal law, and IRS requirements

• Legally irrevocable trust


31

Fund 73

Employee Benefit Trust Fund• Created as a mechanism for

districts to fund post-employment benefit obligations

• Districts not required to use this– May opt to “pay as you go,”

however, that does not help reduce the long-term liability

• Requires actuarial study to determine funding levels


32

Fund 73

Employee Benefit Trust Fund• District makes payments to

the trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations.

• Fund 73 pays the retiree benefits"The Other Funds" - WASBO Acct Seminar March

2015

33

Fund 73

Why use Fund 73?• To reduce the district’s long-

term unfunded obligations.

• Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met.


34

Fund 73

More information:• Employee Benefit Trust Fund

webpagehttp://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund

• Employee Benefit Fund Requirements webpage

http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/EBFRequirements.doc

• Fund 73 OPEB Transaction Accounting Samples http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/doc/Fund_73_account_descriptions.doc


http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund



http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/doc/Fund_73_account_descriptions.doc

http://sfs.dpi.wi.gov/sites/default/files/imce/sfs/doc/Fund_73_account_descriptions.doc

35

Fund 80• Statutory authority: 120.13 (19)

COMMUNITY PROGRAMS AND SERVICES.• General Outline of Community Service

Activities:

• Access to Community Service Fund activities cannot be limited to pupils enrolled in the district's K-12 educational programs.

• Other funds, such as the General Fund and Special Projects Fund, carry out the day to day K-12 educational operations of the district.

• All activities associated with a well-rounded curriculum (curricular and extra-curricular activities) are to be accounted for in these funds (General Fund and Special Projects Fund)and the Pupil Activity Fund (Fund 60).


36

Fund 80• The levy for Fund 80 was removed from

revenue limit control starting in the 2000-01 school year [s. 121.91(2m)(e)1.]

As a result, the Fund 80 levy is completely funded by local taxpayers.

• It has never been a factor in the equalization aid calculation.

• The Department(DPI) is required to define ineligible costs for Community Programs and Services by administrative rule.

• PI-80 emergency rules took effect on July 1, 2014.


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Fund 80 New Rule• Ineligible costs means school district costs that

are not the actual, additional costs to operate community programs and services.

• First, costs are ineligible if they are not costs to operate community programs and services. Community programs and services do not include any program that is limited to only school district pupils or any program or service whose schedule presents a significant barrier for age-appropriate school district residents to participate in the program or service.

• Second, costs must not only be costs to operate community programs and services to be eligible but also must be actual, additional costs. Ineligible costs include costs that would be incurred by the school district if the community programs and services were not provided by the school district."The Other Funds" - WASBO Acct Seminar March 2015

38

Fund 80 New Rule• PI 80.02 Definitions. In this chapter: • “Community programs and services” does not

include:– Any program or service that is limited to only

school district pupils.– Any program or service whose schedule

presents a significant barrier for age-appropriate school district residents to participate in the program or service.

• “Ineligible costs” means school district costs that are not the actual, additional costs to operate community programs and services under s. 120.13 (19), Stats. “Ineligible costs” includes costs that would be incurred by the school district if the community programs and services were not provided by the school district."The Other Funds" - WASBO Acct Seminar March

2015

39

Fund 80 New Rule

• Provides you with some basic information about the impact of transitioning from DPI guidelines, to criteria, and now to administrative rules.

• It is important to understand that an emergency rule has the power of law until the process has been completed.

• The legislature will review the rule and have the ability to modify the rule in the spring of 2015.


40

Fund 80 New Rule• What does “actual” and “additional”

costs mean to a school district?• A cost, that if the ability to operate the

Community Service Fund (Fund 80) ended; a school district, would not have to move those costs to the General Fund (Fund 10) to continue the regular curricular and extracurricular programs for its students.

• A few examples:– Before school and after school childcare

open to any district resident.– Adult technology classes held at the

local public library.– Adult literacy classes held at a township

hall within the school district."The Other Funds" - WASBO Acct Seminar March 2015

41

Fund 80 New Rule• What does “actual” and “additional” costs mean to a

school district?

• A more complex example: The summer baseball program for all interested resident students uses the school district’s ball diamond for games, after the high school season is over.– District employees do the mowing, mark the

field, and clean up after the game. The field does not have lights and the concession stand is not operating.

• Each District employee logs their time related to this program and based on past records the total hours/game are determined and charged to Fund 80.

• The related costs for mower fuel and field paint is based on past years records and are charged to Fund 80


42

Fund 80 New Rule• What does “actual” and “additional” costs

mean to a school district?• An example of an expense not meeting this

standard: An adult ballroom dance class is held one night a week for 6 weeks in the middle school gym. It has the facility for a 3 hour period of time.

• The class instructor or a participant sweeps the floor before the class starts.

• The custodial staff do not clean the gym or restrooms in this part of the building until after everyone from the class has left the school.

• There can be no custodial time or related costs charged to Fund 80 for this class as there was no actual or additional cost incurred.


43

Fund 80 New Rule• 2013 Act 306 requires that Fund 80

expenditures be audited by the school district’s auditor.

• NOTE: Current law already directs DPI to exclude from Shared Costs (for General Aid purposes) any CPS expenditures.

– If a CPS expenditure audit determines that a district had inappropriately coded CPS expenditures to Fund 10, those expenditures would have to be removed from Fund 10 and would decrease the district’s Shared Costs for General Aid purposes.


44

Fund 80 New Rule• 2013 Act 306 requires DPI to determine if

ineligible CPS expenditures exist – If so, DPI must reduce the district’s allowable

revenue limit authority the following year by the amount of the ineligible CPS expenditures; structured as a negative exemption rather than a reduction to the district’s base.

• This first applies to the Revenue Limit calculation for the 2015-16 school year, based on 2014-15 expenditures.– The audit process will be more detailed than it

was this past school year. – After the Legislature has finalized PI 80, the

school auditors will be given formal procedures after May 15, 2015.


45

Fund 80 New Rule• Preparing for an CPS audit;• Each program or service will need to be

documented within the district’s accounting system. – Supporting documentation will be part of

the audit process.• Wisconsin Uniform Financial Accounting

Requirements (WUFAR) will assist each district in this process

• Community Service Fund Information http://sfs.dpi.wi.gov/sfs_comm_serv website provides the most recent information regarding Fund 80.– Question and Answers – Complete Fund 80 PowerPoint


http://sfs.dpi.wi.gov/sfs_comm_serv

46

Fund 90

Package and Cooperative Program Fund• Used to account for

expenditures made by a host district for programs and services offered to other districts– Fund 91: Through a CESA– Fund 99: Others


47

Fund 91

Host District• CESA acts as fiscal agent for

the districts in the cooperative– Other districts pay CESA their

share– Host district pays CESA for its

share• Expenditure to F-10

– CESA reimburses host district for all program expenditures

– No fund balance allowed"The Other Funds" - WASBO Acct Seminar March 2015

48

Fund 99Fiscal Agent District• District that acts as the fiscal agent

for the districts in the cooperative– Other districts pay host district

their share– Host district transfers from F-10 its

share of costs• Revenue to F-99• Expenditure to F-10

– Pays all expenditures for program– No fund balance allowed


49

Fund 99

Examples of Cooperative Services

• Hockey Co-op• Swim Team Co-op• Transportation Services• Business Education Program

• REQUIRES completion of a “66:30 Agreement”

Wis. Stats. 66.0301"The Other Funds" - WASBO Acct Seminar March 2015

50

Fund 90

Package & Cooperative Services

• NOTE: Shared Special Education services are recorded in F-27 not in F-90.


51

Fund 90

More information:• Cooperative Service

Agreement 66.0301 webpage

http://sfs.dpi.wi.gov/sfs_coop_agree


http://sfs.dpi.wi.gov/sfs_coop_agree

52

THANK YOU!Questions?

Contact Information Bruce Anderson, Consultant 267-9707 Carey Bradley, Consultant 267-3752 Dan Bush, Consultant 267-9212 Karen Kucharz Robbe, Consultant 266-3464 Victoria Chung, Accountant 267-9205 Brian Kahl, Auditor 266-3862 Gene Fornecker, Auditor 267-7882 Derek Sliter , Auditor 267-9218 Debi Towns, Assistant Director 267-9209 Bob Soldner, Director 266-6968 School Financial Services

http://sfs.dpi.wi.gov/ "The Other Funds" - WASBO Acct Seminar March 2015

http://sfs.dpi.wi.gov/

The Other Funds Funds 21, 41, 46, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track Brian Kahl DPI School Finance Auditor.

Documents

funds funds

permanent fund

trust funds

funds wasbo acct seminar

use of funds

employee benefit trust

package coop pgm f

school finance consultant