Sonoma County Office of Education s1

SONOMA COUNTY OFFICE OF EDUCATION

SCOE BIZ Business Services

Bulletin No. 14-11 February 2014 February 25, 2014 To: District/Charter Business Services From: Judy Thomson, Director Fiscal Services

State of the State The 2014-15 Governor's Budget revised the current-year revenue forecast up by $2.9 billion, or 3%, from the forecast which was a foundation of the 2013-14 Budget Act. Revenues for the first seven months of the fiscal year have tax receipts running $131 million, or 0.2%, ahead of the Governor's Budget estimate. The Department of Finance is reporting that the economic recovery continues.

2013-14 P-1 Apportionment The 2013-14 P-1 Principal Apportionment is now available at: http://www.cde.ca.gov/fg/aa/pa/pa1314.asp . Because the CDE is still working to incorporate many of the LCFF provisions into its apportionment systems, the P-1 Apportionment is merely a means to continue allocating funds in accordance with Ed Code Section 41332 and should not be used as a basis for budgeting. The P-1 Apportionment is based upon 2012-13 annual funding rates with an increase of approximately 4.6% (continued from the Advance Apportionment and is a proxy for LCFF “gap” funding that will be reflected in P-2 Apportionment calcs) but with adjustments for 2013-14 ADA, property taxes, and EPA.

The CDE intends to calculate LEA funding using the new LCFF formula at the 2013–14 Second Principal (P-2) Apportionment, which will be certified on or before July 2, 2014.

2013-14 Cash - Update The principal apportionment payment schedule prior to any deferrals is attached. LEAs should review year-end cash flow estimates due to the following: o The May deferral exceeded the total statewide May payment resulting in full deferral of May funding to July. There will be no May State Aid payment. o Adjustments and Prior Year Recomputations (2012-13) are significant due to RDA Asset Liquidation. o EPA is distributed quarterly. The 4th quarter payment will be received by June 30, 2014.

2013-14 P-2 Revenue and Attendance Data Collection Software – Update The release of the Revenue and Attendance Data Collection Software that reflects LCFF changes: o Will be released in mid to late March 2014 and be due to SCOE by April 4, 2014. o A webinar is being planned following the software release o The changes related to LCFF data elements are: I. Charter physical location (data required for the unduplicated count cap) II. All data entry screens will appear based on the type of LEA III. Changes to ADA reporting ~ conforms ADA to how students are funded under LCFF a. All district and charter ADA will be reported by grade span b. Grid format to report ADA; not linear. c. Eliminated many of the separate ADA collection lines for LEAs Attendance personnel and business managers will be kept informed as more details become available. 2013-14 Education Protection Account (EPA) ~ Reminder Using a 2013-14 EPA revenue estimate of $5.6 billion, the CDE calculated estimated EPA entitlements based on 2012– 13 P-2 revenue limits and general purpose entitlements using a factor of 17.92%.

Reminder: Proposition 30 requires an LEA’s governing board to make spending determinations for EPA funds at an open public meeting and that LEAs report on their Web sites an accounting of how much money was received from the EPA and how that money was spent. For additional information on EPA calculations, payment schedules, spending restrictions, SACS financial reporting and more, please refer to frequently asked questions posted on the CDE Web site at http://www.cde.ca.gov/fg/aa/pa/epa.asp.

LCFF Accounting Changes Please see attached handout.

FCMAT LCFF calculator version 15.1 If you have Windows XP, you may not use Internet Explorer as your web browser to download the LCFF calculator from the FCMAT website. Instead, you may use either Google Chrome or Firefox web browsers to download the LCFF calculator.

California Longitudinal Pupil Achievement Data System (CALPADS) – Fall 1 amendment window extended CDE is providing all LEAs the opportunity to request additional time during a late correction window. The late correction window will follow the close of the Fall 1 amendment window and will end on March 21, 2014. LEAs that want to use the late correction window must submit a service request to the CALPADS Service Desk in order for the snapshot reports to be enabled. In the service request, LEAs are required to indicate why additional time is needed and provide an estimate for when the LEA plans to recertify. LEAs that have already submitted an extension request do not need to send in another. LEAs must recertify their Fall 1 submission by no later than March 21, 2014. LEAs with questions regarding CALPADS should contact the CALPADS Service Desk through the CALPADS Service Request Form or through email at [email protected]. The Service Desk may also be reached by phone at (916) 325-9210.

Second Interim Reporting Along with the SACS Second Interim Reporting forms, please provide the following support documents: o FCMAT LCFF Calculator version 15.1 ~ which includes: 1. Estimated Enrollment and ADA by grade level for 2013-14, 2014-15 and 2015-16 2. Estimated Unduplicated Count percentage or number for 2013-14, 2014-15 and 2015-16 3. Gap funding percentage used in LCFF Calculation o Balancing Spreadsheet ~ see attached o Cash Flow Statement (SACS or alternate form) o Multi-Year Projection Worksheet with narrative/justifications/assumptions (SACS software form, SCOE’s template, or district’s own form). The MYP must report unrestricted, restricted and combined totals. o District Narrative and budget assumptions, as submitted to your Board o District Narrative of Special Funds, if not included in the items above o AB2756 Reporting Requirements form

California School Accounting Manual (CSAM) The California Department of Education (CDE) has posted the 2013 edition of the California School Accounting Manual to the CDE Web site at http://www.cde.ca.gov/fg/ac/co/. The edition includes routine updates to account codes and accounting terminology pursuant to GASB Statements 63 and 65. Note that accounting changes relating to LCFF have not yet been established and are not reflected in this edition. 2013-14 Audit On February 10, 2014, The Education Audit Appeals Panel (EAAP) adopted the 2013-14 supplemental emergency audit guide regulations which can be found at http://eaap.ca.gov/audit-guide/rulemaking-activities/ . See attached for more details. Some of the highlights in brief are as follows:

Removed from the 2013-14 audit guide: o K-3 CSR procedures o Public hearing procedures for the Tier III funds

Added to the 2013-14 audit guide: o EPA – Verify funds have been properly expended (not used for any administrative cost). For greater detail, see http://www.cde.ca.gov/fg/ac/ac/sacsfaq.asp o Proposition 39 ~ California Clean Energy Jobs Act o Charter School Facility Grant o LCFF ~ Each LEA will be asked to confirm its awareness of the requirements of LCFF and will provide a written certification to the auditor. o Unduplicated Local Control Funding Formula Pupil counts will be sample tested- documentation determining student eligibility will be examined

Amended in the 2013-14 audit guide: o Instructional time procedures to reflect new requirements under LCFF ~ The 5 day reduction in the school year is in effect through 2014-15, so the following may be reduced by the equivalence of five days during that time. o Districts that participated in the Longer Day and Longer Year funding OR meet LCFF Target funding must offer 180 days and the minutes stated in statute. o Districts that participated in the Longer Day and Longer Year fund are no longer required to meet the greater of its 1982-83 minutes or the minutes set in statute … they only must meet the minutes in statute ( EC Section 46201) o Instructional materials public hearing (EC Section 60119) procedures are amended to only be a compliance verification, not a disallowance of funds o Note: Instructional time requirements do not change for charter schools.

Developer Fees~ 2014 Change Government Code Section (G.C.) 65995(b)(3) provides for a biennial adjustment to the maximum developer fees that can be imposed by school districts on new development. In January 2014, SAB took action to adjust developer fees for new residential and commercial/industrial construction. School districts are authorized to levy up to $3.36 per square foot on new residential construction and 54¢ per square foot on new commercial/industrial construction. The new rates are effective immediately. Please note that this does not necessarily mean that all districts can automatically increase their rates. The district's developer fee justification report must be updated, if necessary, to reflect the maximum rate that the district can charge per Education Code Section 17620 and G.C. 65995. The District’s Governing Board will need to adopt a resolution before the district can increase the fees. The increase becomes effective, and can be levied, 60 days after the resolution has been adopted. Dates to Remember: 02/15/2014 Audit Certification due to SCOE verifying the Board has approved their 2012-13 Audit 02/24/2014 Prior year ADA corrections must be sent to SCOE (to be incorporated in the 13-14 P-2 apportionment) 02/28/2014 Deadline for CARS – 2013 Winter data collection 03/15/2014 Second Interim is due to SCOE 03/15/2014 Certification of Corrective Action due to SCOE verifying the Board has adopted corrections of audit findings from 2012-13 audit. 04/01/2014 Submit to SCOE verification that the Board has approved a contract for audit services for 2013-14 04/04/2014 2013-14 Data Collection due to SCOE 04/18/2014 2013-14 P-2 Attendance due to SCOE