SC DEPARTMENT OF EDUCATION CHIEF FINANCE OFFICE DECEMBER 2015-16 Issue 6

Please use the newly established email for submitting Grants Accounting Staff Listing information to Financial Services at [email protected] For questions regarding specific grants, please refer to the grants accounting staff listing located December 2015 A monthly update from the State Department of on the Grants Accounting Section’s web page, Education's (SCDE) Office of Finance to local school district http://ed.sc.gov/finance/grants- business officials. If you have any questions about information in accounting/contact-information/grants- this issue, contact Shatika Spearman at 803-734-8008, Felicia accounting-staff-assignment-list/ Poston at 803-734-8488 or Melissa Myers at 803-734-8453.

 December Checks  Checks will be released Tuesday, December 15, 2015. Proviso Billing Rate The daily rate for FY 15-16 is $3.70.

Recently Posted Memos

Transportation District Reimbursement Checks

Transportation Check Submission Forms FINANCIAL

45-Day Pupil Accounting and Student Accountability SERVICES Certification Memo/Form

In$ite 2014-15 Poverty Definition and Comparative Data If you have not already provided your In$ite file or general ledger for 2014-15, please do so as School Closings Due to Extreme Weather soon as possible. The preferred method is via email to Mellanie. Food Service Employer Contributions Rate Change

Requirements to Employ Retired Individuals FY 2014-2015 Administrative Cost Reporting As a reminder, in compliance with Proviso 1.47 districts are to post their Administrative Cost Report to their website no later than 60 days after

the December 1 audit submission. Please provide us with a copy of the report or a link to the report on your website. The functions that are to be reported (across all funds) are: 223, 231, 232, 252, 254, 257, 259, 263, 264 and 266.

While there is no specific format for this The Office of Finance wishes you reporting, at a minimum, the report should include the function, function description and all a safe, happy and healthy expenditure amount. Christmas and New Year!

OFFICE OF FINANCE DECEMBER 2015 PAGE 2

FY 2014-2015 Administrative Cost Reporting (continued)

See example.

Function Number Description Amount

223 Supervision of Special Programs 312,823.09 224 Improvement of Instruction In-service and Staff Training 7,817.43 231 Board of Education 280,152.90 232 Office of Superintendent 258,541.70 251 Student Transportation (Federal/District Mandated) 41,961.08 252 Fiscal Services 351,762.66 254 Operation and Maintenance of School District 1,778,756.97 257 Internal Services 93,910.69 258 Security 59,379.72 264 Staff Services 241,196.94 266 Technology and Data Processing Services 253,994.11

3,680,297.29

When providing a copy to us, please ensure the report is on your district stationery. If you have any questions, please don’t hesitate to contact Mellanie. The deadline for posting is January 31, 2016.

NBC Teachers With Renewed Certificates – Additional Funding Additional funding for National Board Teachers Poverty Definition that renewed their certificates will be included in After further consideration and deliberation and re- the December 15th payments. reading the proviso that governs EFA, we will NOT update the poverty add-on weighting using the new definition for the 2015-16 school year. We will continue to use the 2013-14 definition of free/reduced lunch and/or Medicaid. Realize Verification of New National Board however that we will NOT have school level data as Certified (NBC) Teachers this year. Reminder – Verification of listing of new NBC teachers is due to Sue We will have a poverty index for you to use to Martinez by Friday, December 18. calculate the individual school level allocations – Email list to [email protected]. especially in the charter world.

OFFICE OF FINANCE DECEMBER 2015 PAGE 3

TRAINING TUTORIALS FOR GAPS Poverty Definition (continued) (continued) We would like for you to continue to identify those migrant and LEP students and with our Revenue and  GAPS for Grant Coordinators - Fiscal Affairs partner, will continue throughout the http://www.kaltura.com/tiny/nq6dy year to provide you with comparative data as we  GAPS for Grant Finance Personnel - move toward the new definition in 2016-17. http://www.kaltura.com/tiny/uyviq

 GAPS for Grant Coordinators – Budget Amendments – http://www.kaltura.com/tiny/x4flw GRANTS ACCOUNTING  How to Run Reports - . http://ed.sc.gov/finance/grants- accounting/gaps/gaps-instructions-and- 2016 IDEA Awards guidelines/how-to-run-reports-in-gaps/

Please refer to email dated December 4, 2015, regarding the release of IDEA FY 2016 611(School) and 619 (Preschool) awards. INSTRUCTIONAL

The due date of the IDEA FY 16 grant applications is MATERIALS January 15, 2016. Instructional Materials Caravan Registration Information regarding registration for the Instructional Materials Caravan can be found at http://www.mysctextbooks.com/whatsnew.aspx under the heading “Caravan and Training.” To

register, please use the following link: https://scde.formstack.com/forms/caravan_and_ TRAINING TUTORIALS FOR GAPS training_registration

 NEW – GAPS: Amendment Workflow - The caravan will be held from January 14-29, http://ed.sc.gov/finance/grants- 2016. accounting/gaps/gaps-instructions-and- guidelines/grants-accounting-amendment- workflow/ AUDITING SERVICES

 GAPS: Entering Expenditure Refunds for Sub- Recipients - http://www.kaltura.com/index.php/extwidget/previ FY 2014-2015 Audit Submissions ew/partner_id/1675021/uiconf_id/24189501/entry The annual financial statement audit, supportive information, and supplemental schedule template _id/1_4k82p9pn/embed/auto? was due to the SCDE by December 1. LEAs who

have not submitted their audit report will receive  GAPS for District Finance Personnel: correspondence from the State Superintendent of Expenditures – Education to the District Superintendent or http://www.kaltura.com/index.php/extwidget/previ Charter School Director, Local Governing Board, ew/partner_id/1675021/uiconf_id/24189501/entry and the Legislative Delegation on noncompliance _id/1_e8x22wsj/embed/auto with the audit statute. Since the Federal Audit Clearinghouse website was down, a deadline of December 31 has been established for the submission of the data collection form.

OFFICE OF FINANCE DECEMBER 2015 PAGE 4

Heads of Organizational Units LEA Audit Reporting System (LARS) The SC Department of Education has established new An instructional video on how to access object codes to charge expenditures related to the heads of LARS has been posted on the Office of certain organizational units reporting directly to the District Auditing Services web page at LEA District Superintendent. These changes are a result of the most User

current review of our LEA indirect cost methodology by the If you will be a user of the system and do not USDE Office of the Chief Financial Officer. Employees have rights under the SCDE’s Web Access that should be charged to these new object codes include the Administrative tool, please get with the Web Chief Financial Officer, Chief Human Resources Officer, Access Coordinator from your LEA or Chief Audit Director, and the heads of any other sponsoring district from your LEA and organizational units charged to the function 260 series CATE centers to have access granted to access the SCDE’s member center. which consists of 262 Planning, 263 Information Services,

264 Staff Services, and 266 Technology and Data The annual audit report, data collection form, Processing Services. Our current indirect cost methodology supportive information, and the SCDE already reports the heads of other organizational units Supplemental Schedules for each fund type reporting directly to the Superintendent as being charged in are due to the SCDE by December 1 after the a manner directed by the USDE. Exclude a Deputy close of each fiscal year. The Federal Audit Superintendent who serves as the Chief Operating Officer Clearinghouse is temporarily offline for maintenance and testing. We will monitor the and the Assistant Superintendent of Instruction. accessibility of the site and establish a new deadline for submission of the data collection Charge expenditures for the heads of the organizational form ONLY if the site is still offline by units stated above to the following object codes with the December 1, 2015. correct function code classification. (Ex. Salaries for the CFO would be charged to 252-180). Please refer to correspondence that was distributed to all SBO’s on Time and Effort Requirements December 10, 2015. This memo rescinds the previous The SCDE Terms and Conditions and memo dated February 4, 2015 instructing LEAs to charge Assurances require employees whose salary is expenditures to the head of a component unit to function charged in whole or in part to a federal cost 261. All other new classifications in the February 4, 2015 objective must complete either the monthly memo are still valid. personnel activity report (PAR) or the semi‐ annual certification. Certifications are required for those whose salary is charged 100% to a federal cost objective. The PAR is GASB 68 – Food Service Fund required for any employee whose salary is If the Food Service Fund is an Enterprise fund, an allocation charged less than 100% to a federal cost of the net pension liability must be shown in the Food Service objective or to multiple federal cost Fund if fringe benefits are charged. However, if no fringe objectives. benefits are paid out of the Food Service Enterprise Fund, no allocation is required. For federal awards made after December 26, 2014, please adhere to the requirements in the Uniform Grant Guidance and 2 CFR Part 200. Due to Schedules Please review the schedule of funds due back to the state The link to the electronic Code of Federal and federal government to ensure accuracy. Any payments Regulations is http://www.ecfr.gov/cgi- not due back because of funding flexibility or carryover bin/text- provisions should not be stated on the schedule. Payments idx?SID=51fe36054afd11b20bac5931e4e104 made in error cannot be returned. e5&node=pt2.1.200&rgn=div5

GRANTS ACCOUNTING

OFFICE OF FINANCE DECEMBER 2015 PAGE 5

Time and Effort Requirements (continued) Substitute System for PAR’s An example of a PAR and certification are now located on (continued) our website at http://ed.sc.gov/finance/auditing/information-memos-and- To review this guidance in full along with forms/memos-and-forms/sample-personnel-activity- examples of acceptable substitute system, report/ and http://ed.sc.gov/finance/auditing/information- see memos-and-forms/memos-and-forms/sample-certification/ http://www2.ed.gov/policy/fund/guid/gpos respectively. bul/time-and-effort-reporting.html.

Time and Effort Clarification for Food Service Employees Food Service employees are exempt from the Annual Audit Guide requirement to prepare personnel activity reports or Annual Audit Guide – The FY 2014-15 Annual certifications. However, if the food service employee Audit Guide has been posted to the SCDE also works on another federal cost objective, the website at employee must complete the required time and effort http://ed.sc.gov/finance/auditing/manuals- reporting. handbooks-and-guidelines/fy-2014-2015-annual- audit-guide/.

The template for submission of the SCDE Substitute System for PAR’s supplemental schedules is also located on the The USDE recently established guidance allowing an website under the 2014-2015 Audit Guide link. SEA to permit an LEA to use substitute documentation Please share this information with your such as a teacher’s course schedule as adequate independent auditors as it lists audit submission documentation for the time and effort of an individual requirements for FY 2014-15 audits. who works on multiple activities or cost objectives but does so on a predetermined schedule. An individual documenting time and effort under the substitute Annual Audit Templates system would be permitted to certify time and effort Some LEA’s report revenue and expenditures in on a semiannual basis, provided the LEA's substitute funds other than the 7 major funds listed on the system meets requirements. template provided by the SCDE to be uploaded into the LEA Audit Reporting System (LARS). In order to use the substitute system, the LEA must Please ensure that data from any additional certify to the SEA that only eligible employees will funds not listed on the template is combined participate in the substitute system and that the system with the major fund that it is most closely used to document employee work schedules includes related to for the upload of the template into sufficient controls to ensure that the schedules are LARS. This will ensure that all revenues and accurate. expenditures for a LEA are captured in the upload. Additionally, the certification must include a full disclosure of any known deficiencies with the system or known challenges with implementing the substitute system.

OFFICE OF FINANCE DECEMBER 2015 PAGE 6

Miscellaneous Revenue Codes and Subfunds When allocations to school districts exceed $500,000 from a single source of funds, a unique revenue code and subfund are assigned to those funds and guidelines for those funds will appear in the Funding Manual produced by the Office of Finance.

If total allocations do not exceed $500,000, miscellaneous revenue codes and sub funds will be used as follows:

Miscellaneous Revenue Codes and Subfunds

Source of Fund Revenue Subfund Code Misc. State 3199 800 series * Restricted Misc. EIA 3599 399 Misc. State 3999 General Fund (100) Misc. Lottery 3699 969 Misc. Federal 4999 800 series *

*Districts choose any subfund available for use in the 800 series.

Uniform Grant Guidance The Office of Auditing Services has developed a document that highlights some of the major changes as a result of the Uniform Grant Guidance. The document can be found on our website at http://ed.sc.gov/finance/auditing/information-memos-and-forms/tutorials-and-presentations/what-is-uniform- grant-guidance/.

Please be sure that you are updating your entity’s policies and procedures due to guidelines under the uniform grant guidance. Please refer to the presentation from the 2015 Fall SCASBO Conference, http://ed.sc.gov/finance/auditing/information-memos-and-forms/tutorials-and-presentations/fall-scasbo-2015- uniform-grant-guidance-indirect-costs-and-other-compliance-issues/

Financial Manuals

FY 2015-2016 Funding Manual http://ed.sc.gov/finance/financial -services/manual-handbooks-and-guidelines/funding-manuals/fy-2015-2016- funding-manual/

Accounting Handbook FY 2014 - 2015 Financial Accounting Handbook - South Carolina Department of Education

Student Accountability http://ed.sc.gov/agency/cfo/finance/Financial-Services/documents/studentaccountabilitymanual.pdf

PCS Manual PCS Manual - South Carolina Department of Education

Audit Guide FY 2014-2015 Annual Audit Guide - South Carolina Department of Education

OFFICE OF FINANCE DECEMBER 2015 PAGE 7

EFA/State Funding Release Dates 2015-2016

December 15 April 22 January 22 May 20 February 22 June 22 March 22

Due Dates for SCDE Reports 2015-2016

Listed below are reports required by the Office of Finance and their due dates for 2015-16. Reports listed below that are identified by a dollar sign ($) indicate that allocations are based on the information submitted in these reports. To avoid delays in the distribution of the allocations, please ensure that all reports are received in the Chief Financial Office by the specified due date.

April 4 INITIAL MEMBERSHIP/ATTENDANCE 135 DAY REPORT INITIAL STUDENT ACCOUNTABILITY 135 DAY REPORT

April 29 PCS UPDATES FOR 135 DAY FUNDING ($)

April 29 MEMBERSHIP/ATTENDANCE CERTIFY 135 DAY REPORT ($) STUDENT ACCOUNTABILITY CERTIFY 135 DAY REPORT ($) HOME INSTRUCTION REPORT ($)

June 30 FINAL CHANGES TO PCS FY 2015-16 TECHNOLOGY PROFICIENCY

June 30 FLEXIBILITY REQUEST 2015-16

Questions concerning the above reports may be directed to Shatika Spearman at (803) 734-8008 in the Office of Finance.

Kimberly Moss Financial Newsletter Editor