ADE Director's Communication Memo Form


Memo Number : IA-05-123

Date Created : 06/30/2005

Attention:

Superintendents
Co-op Directors
other: District Business/Financial Officers

Type of Memo: Informational
Response Required: No
   
Section:   Internal Administration - Dr. Bobbie Davis
Subject:
Coding Changes for FY06

Regulatory Authority:
Act 2283 of 2005 and Act 52 of 2nd Extraordinary Session of 2003

Contact Person:
Danita Hyrkas

Phone Number:
501-682-5199

E-mail:
dhyrkas@arkedu.k12.ar.us

In compliance with Acts 2283 and 730 of 2005, the following codes have been added to Arkansas Handbook IIr2 and are required for all NSLA (National School Lunch Act) programs beginning with FY06 expenditures for fund sources 1281 and 2281. Expenditures for these program codes should align with those in the district’s ACSIP plan.

Program Code
NSLA, Literacy, Math, Sci. Specialists/Coaches (code section 6.06.1) 001
NSLA, Professional Devel. Lit., Math/Sci (code sections 6.06.2) 002
NSLA, High Qualified Classroom Teachers (code section 6.06.3) 003
NSLA, Before & After Academic Program (code section 6.06.4) 004
NSLA, Pre-K (code section 6.06.) 005
NSLA, Tutors (code section 6.06.6) 006
NSLA, Teacher’s Aides (code section 6.06.7) 007
NSLA, CRT. Counselors, Lic. Social Workers, Nurses (code section 6.06.8) 008
NSLA, Curriculum Specialist (code section 6.06.9) 009
NSLA, Parent Education (code section 6.06.10) 010
NSLA, Summer Programs (code section 6.06.11) 011
NSLA, Early Intervention Program (code section 6.06.12) 012
NSLA, School Improvement Plan (code section 6.06.13) 013
NSLA, Other activities approved by the ADE (code section 6.06.14) 014

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Transportation Allocation
For FY 04 the average transportation cost per mile was $2.91, and therefore, that per mile cost will be the transportation allocation for FY05 to determine athletic transportation costs.
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Highest degree information for certified employees will be collected in Cycle 2, October 15, 2005.
The Degree screen in FinancePlus requires the following information:
Type: BA, MS, etc.
Highest: The highest degree obtained by the employee must be marked by an asterisk in the APSCN software.
School: The college or university where degree was awarded
Date: The date the degree was awarded
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Athletic Allocation Percentage

In compliance with Act 52 of the second Extraordinary Session of 2003, an allocated amount of maintenance and operation property insurance, utility, and maintenance of facility/grounds expenditures must be charged out to “Athletics.” Attached to this memo is a spreadsheet with calculated allocation percentages for each district. The methodology used was recommended by a committee of finance practitioners and legislative audit. This derived percentage is based on the relationship between total certified salary and benefits to athletic certified salary and benefits for functions 1150 – 1159 and 2216. Use the “Pct Athletic Salary” column for the district allocation percentage. A journal entry must be made to reduce the regular maintenance and operation expenditures and increase athletic maintenance and operation expenditures for the following:

Property Insurance – Use Allocation Percentage (ex: acct. codes 65200-65299)
Utilities – Use Allocation Percentage (ex: acct. codes 64100-64119; 66200-66299)
Maintenance of Facilities/Grounds – Use Allocation Percentage (ex: acct. codes 64200-64999)

Also in compliance with Act 52, the following must have actual maintenance and operation expenditures charged out to Athletics:

Salaries – Actual Expenditures
Fringe Benefits – Actual Expenditures
Travel (including bus-related operation and maintenance) – actual or average state mile calculation of $2.91 per mile.
Equipment – Actual Expenditures
Meals – Actual Expenditures
Supplies – Actual Expenditures
Medical Insurance – Actual Expenditures

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In addition to expenditures, transfers for Categorical Funding will be collected In Cycle 1, September 15, 2005. The categorical funds and their F/SOF codes are as follows:

1. Alternative Learning – 2275

2. English Language Learners - 2276

3. Professional Development - 2223

4. National School Lunch Student Funding – 2281

In Cycle 1 districts will be asked to verify their vending contract fund source(s) for use by APSCN to generate detailed reports on vending revenue and expenditures as required by law.

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New FY 06 function codes assigned to WorkForce Programs for Handbook IIr2 include:

1351 Appliance Technology
1352 Auto Service Technology
1353 Auto Collision Repair
1354 Drafting
1355 Electronics
1356 Machine Tool Technology

New FY06 Function Code assigned for Handbook IIr2:
2297 Literacy Coach

The following account definitions have changed due to changes in coding at the federal level:

61500 Additional compensation such as bonuses or incentives
61510 Certified
61520 Classified

61600 Workshops
61610 Certified
61620 Classified

65910 Services Purchased from LEA within the State. Payments to another school district or cooperative within the State for services rendered, excluding tuition and transportation fees. This code should be used so that all interdistrict payments can be eliminated when consolidating reports from multiple school districts at state and federal levels (when a question arises about whether to code such payments to the 63000 series of objects or to this code). (Formerly 65920.)

65920 Services Purchased from LEA outside the State. Payments to a school district outside the State for services rendered, excluding tuition and transportation fees. This code should be used so that all interdistrict payments can be eliminated when consolidating reports from multiple school districts at state and federal levels (when a question arises about whether to code such payments to the 63000 series of objects or to this code). (Formerly 65930.)

Update to Revenue Code Description:
17500 (Formerly Contracted Services) Revenue from Enterprise Activities. Revenue (gross) from vending machines, school stores, soft drink machines, and so on, not related to the regular food service program. These revenues are normally associated with activities at the campus level that generate incremental local revenues for campus use.

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IMPORTANT NOTICE

It is vital to state and federal reporting that all financial data is entered into the APSCN reporting system accurately. One major concern over the past few years has been the inaccurate reporting of FTEs during Cycle 1 and the AFR (Pages 36&37). Accurately reported FTEs are critical in order to calculate average teacher salaries and pupil-to-teacher ratios. When incorrect data must be corrected, the publication of state reports is delayed; especially the publishing of the ASR (Annual Financial Report). If the errors are not detected, the publication goes out with incorrect data about the district and is made available for the public, legislative committees, state board, etc. Since financial accountability continues to be a priority at both the state and federal levels, the accuracy of district reports is vital.

Therefore, it is requested that the Cycle 1 Coordinator, and any other person(s) responsible for entering data into the APSCN system check, recheck, and then verify the accuracy of the FTE data before submitting Cycle 1. Districts must pay close attention to the ASR supplement report, which gives the average teacher salary based on the FTEs entered on Page 37. If salaries on this report do not appear to be reasonable, further analysis is essential before proceeding with the submission of Cycle 1.

Attachments:

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