spring budget workshop - New Mexico State Department of Education

Report
Capital Outlay Bureau
Spring Budget Workshop 2013
Cubero Elementary School – Grants-Cibola District
Presenters
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Antonio Ortíz - Director
Chris Thweatt - Financial Coordinator
Maria Fidalgo – Director, Audit & Accounting Bureau
Purpose:
To Educate School Districts Regarding Our:
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Roles and responsibilities
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Process of accessing capital outlay
funds administered by the PED
Capital Outlay Bureau Goals:
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Reduce turnaround time
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Improve customer service
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Streamline processes and
workflows
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Use information technology to
make documents user friendly
and easily accessible
Agenda
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Budget Issues
Operating Budget Management
System (OBMS)
Budgets
Reimbursement Requests
Capital Improvements Act
(SB-9)
Public School Buildings Act (HB33)
New Legislation – pending
Governor’s Signature
Miscellaneous Issues
Question & Answer Session
Budget Issues
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•
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Fund 31200 – Public School Capital Outlay Council
(PSCOC)
End of Fiscal Year Journal Entries
Cash Balances in Reimbursement Basis Funds
Budget Issues
Fund 31200 (PSCOC)
The following example assumes a school district with a
50% percentage of participation. The district share of the
PSCOC project is 50% and the PSCOC (State) share is
50%:
•Do not budget the PSCOC 50% amount in OBMS
•End of fiscal year PSFA provides work-inprogress (WIP)project balances
•District provides auditors with a journal entry with
those balances for financial statements
presentation
Budget Issues
End of Fiscal Year Journal Entries
• RfR submitted in current
• Reimbursement received in
year but reimbursement
received in the following
fiscal year
• Record a journal entry to
recognize receivable and
revenue
the following fiscal year,
only cash and accounts
receivable will be affected
- Dr. Accounts Receivable
Cr. Revenue
- Dr. Cash
Cr. Accounts Receivable
Budget Issues
Cash in Capital Outlay Funds
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Reimbursement basis funds should have zero
cash balances except for fund 31700
Unless:
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Money is owed to another fund, record interfund
due to/due from and process the interfund transfer
Money was received in advance, cash balance
should be identifiable/traceable to specific project
OBMS
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PED COB works with districts
and charters establishing
budgets and BARs for funds:
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27106 – 2010 GOB Public School
Library Acquisitions
27107 – 2012 GOB Public School
Library Acquisitions
27115 – Statewide Robotics
OBMS
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27171 – 2010 GOB Instructional
Materials
27174 – 2010 Pre-K Capital
31200 – PSCOC – Lease
Payment Assistance
31400 – Direct Appropriations
31700 – SB-9
OBMS
Budgeting Capital Outlay Funds
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Carryover state fund balances in 43204
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New awards of state funds budgeted in
43210 (fund 31400) and 43202 (fund
31700)
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2013-2014 Lease Assistance Awards
will not be projected. BAR upon receipt
of award letter
OBMS
Budgeting Capital Outlay Funds
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2013-2014 SB-9 State Match Award will
not be projected. BAR upon receipt of
award letter
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Estimated column should include all
outstanding revenue balances as of July 1,
2012
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This method is unique to capital funds
administered by the PED COB
OBMS
Budgeting Capital Outlay Funds
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COB will publish, on the COB webpage,
PED balances based on expenditures
submitted into OBMS in funds 27106,
27115, 27171, 27174, 31400 and 31700
as of March 27, 2013 to help your
district/charter calculate any potential
carryover
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Fund 31400 Direct Legislative
Appropriations authorized during the 2013
legislative session will use object code
43210
OBMS
Budgeting Capital Outlay Funds
2012 GOB Public School Library
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Award letters will be mailed in April 2013
Funds will revert June 30, 2016
Bonds are scheduled for sale on April 9,
2013
Budget in Projected
Funds will be available to districts/charters
beginning July 2013
Use prior year award first
OBMS
Budgeting Capital Outlay Funds
Scenario for fund 31700
• As of July 1, 2012 the Capital Outlay District has:
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Cash Balance (Ensuing audit verifies) - $100,000
Ad valorem taxes - $197,000
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $
0
43204 - $
0
$297,000
OBMS
Budgeting Capital Outlay Funds
Also, as of July 1, 2013 the Capital Outlay District has outstanding
prior year balances:
• SB-9 State Match – 2011-2012 - $50,000
2010-2011 - $49,000
2009-2010 - $51,000
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $
0
43204 - $150,000
$447,000
OBMS
Budgeting Capital Outlay Funds
On February 22, 2013 an award is made:
• SB-9 State Match – 2012-2013 - $50,000
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
$497,000
OBMS
Budgeting Capital Outlay Funds
For ‘12-’13 there are expenditures of $175,000:
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
$497,000
Expenditures:
54315 - $ 75,000 (cash)
54500 - $100,000 (SB-9 State Match reimbursements)
$175,000
OBMS
Budgeting Capital Outlay Funds
The ‘12-’13 SB-9 State Match expenditures of $100,000 tell us:
Revenue:
Estimated
Projected
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
43204 - $100,000 (12-13 & 11-12)
$497,000
$100,000
Expenditures:
54315 - $ 75,000 (cash)
54500 - $100,000 (SB-9 State Match reimbursements)
$175,000
OBMS
Budgeting Capital Outlay Funds
Estimated cash balance on June 30, 2013 is $25,000:
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
$497,000
Expenditure:
54315 - $ 75,000 (cash)
54500 - $100,000
$175,000
Projected
11111 - $ 25,000
41110 - $
0
43202 - $
0
43204 - $100,000 (12-13 & 11-12)
$125,000
54500 - $125,000
$125,000
OBMS
Budgeting Capital Outlay Funds
‘13-’14 projected ad valorem of $200,000 self populates:
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
$497,000
Expenditure:
54315 - $ 75,000 (cash)
54500 - $100,000
$175,000
Projected
11111 - $ 25,000
41110 - $200,000 (self populates)
43202 - $
0
43204 - $100,000 (12-13 & 11-12)
$325,000
54500 - $325,000
$325,000
OBMS
Budgeting Capital Outlay Funds
Unused $197,000 ad valorem carries over to cash:
Revenue:
Estimated
11111 - $100,000
41110 - $197,000
43202 - $ 50,000
43204 - $150,000
$497,000
Expenditure:
54315 - $ 75,000 (cash)
54500 - $100,000
$175,000
Projected
11111 - $222,000
41110 - $200,000 (self populates)
43202 - $
0
43204 - $100,000 (12-13 & 11-12)
$522,000
54500 - $522,000
$522,000
OBMS
Budgeting Capital Outlay Funds
For capital funds:
Estimated Revenue minus Estimated Expenditures
Equals
Projected cash plus projected prior year balances (43204)
(use previous slide as an example)
Reimbursement Requests
in OBMS:
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Fund 27106 – 2010 GOB Public
School Library Acquisitions
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Fund 27107 – 2012 GOB Public
School Library Acquisitions
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Fund 27115 – Statewide
Robotics
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Fund 27171 – 2010 GOB
Instructional Materials
Reimbursement Requests
in OBMS:
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Fund 27174 – 2010 Pre-K
Capital
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Fund 31400
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Fund 31700 – Expend older
years first
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Fund 31200 - PSCOC lease
payment is NOT processed
through OBMS but to Gerald
Pertner with PSFA – (505)
988-5989
Reimbursement Requests
Required Documentation
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Collect all required documentation from
checklist:
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Reimbursement Request Form
Expenditures Report
Copies of invoices
Proof of Payment
Ensure expenditures meet legislative intent
Expenditures should be submitted in the year
incurred
Reimbursement Requests
Required Documentation
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Reimbursement Request Form – Authorized
Signature
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Signature Authorization Form
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Wire Transfer Form
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Expenditure Report
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Invoice and proof of payment
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Update CPMS for fund 31400 only
Reimbursement Requests
Steps of Program Review
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Ensure funds are
expended with goods and
services received on or
before the reversion date
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Ensure draw request is ≥
$1,500 for STB’s and
GOB’s
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Submit approved request
to Fiscal Grants
Management Bureau
Reimbursement Requests
Projects Expiring June 30, 2013
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2009 Construction Projects and 2011 Non-Construction
Projects
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Please note that final draw requests must be received
no later than July 6, 2013 for projects expiring June 30,
2013, or any remaining balance will be reverted.
Public School Capital Improvements Act
(SB-9 State Match)
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SB-9 funds will be distributed to charter schools
on a membership basis using 40th day of prior
school year
No distribution to charters schools which
commenced instruction this school year
State charter schools included
Funds distributed on reimbursement basis
Expenditures are not reimbursable if incurred
more than 60 days prior to the date the bonds are
sold
Public School Capital Improvements Act
(SB-9 Local Tax)
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Charter School needs shall be
included in all SB-9 elections held
after July 1, 2009
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If charter school provides
information timely to district to
include in resolution
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Information identifies how the
revenues will be used
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Distributed by county treasurer to
each charter school
Public School Buildings Act
HB-33
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School Districts shall include
the needs of charter schools
after July 1, 2007
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If charter school provides
information timely to district to
include in resolution
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Information identifies how the
revenues will be used
Public School Buildings Act
(HB-33)
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Capital needs included in
districts 5-year master facilities
plan for local charters
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State charters include in their
5-year plan
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Distributed by county treasurer
to each charter school
2013 Legislative Session
SB 333 – School Leases and Interests, Conflicts
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Requires that the facilities of a new charter school or a charter
school relocating must attain a condition rating equal to or
better than the average New Mexico facility condition index for
that school year, within 18 months of occupancy or relocation
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Requires the PSCOC to develop a standardized lease to be
used by charter schools entering into a lease after July 1, 2013
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Requires the PSCOC to review and approve lease payment
assistance of a school district that is leasing space to a charter
school up to the local market rate as long as it does not exceed
the rate provided in statute
2013 Legislative Session
SB 333 – School Leases and Interests, Conflicts
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Requires a chartering authority to annually review and approve
charter school conflict of interest disclosure statements
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Disallows a person to be an employee of a charter school if the
individual or an immediate family member is an owner, agent
of, contractor, or has a for-profit in which the charter school
contracts for professional goods, services or facilities
SB 231 – School District & Charter School Investments
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Allows state-chartered charter schools to make investments of
public money and deposits with local qualified depositories
2013 Legislative Session
SB 60 – Severance Tax Bond Projects
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$13,000.0 – school bus purchase
$298.3 – statewide robot systems
176 additional projects totaling $12,600.3
to school districts and charter
schools
$2,500.0 – pre-kindergarten
classrooms
• PSFA will administer this fund
HB 353 – Reauthorized Projects
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1 Project
Miscellaneous Issues
Charter School Reports for HB-33 and SB-9
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Proposed expenditure reports due December 1st
of each year
Report shall include the proposed uses
Submit to the PED and the chartering authority
Within 20 days, the PED shall advise if, in its
opinion, the expenditures are consistent with the
law
Report prior year expenses to the PED and the
chartering authority by January 31
Miscellaneous Issues
Disposition of Property
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Need Approval Prior to Disposition
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Approving Entity Determined by Value and
Whether Property is Personal or Real
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Checklist on COB Website
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PED Form 947 Along With Supporting
Documentation
Miscellaneous Issues
Disposition of Property
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SAO – Ralen Randel (505) 476-3800
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SBF – Stephanie Schardin (505) 827-4980
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PED – Chris Thweatt (505) 827-6609 or
Lisa Romero (505) 827-7646
Miscellaneous Issues
Closing Out Prior-Year Awards
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2010 GOB Public School Library Acquisitions
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2010 Pre-K Capital
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SB-9 (2008-2010)
Miscellaneous Issues
Required Election Documents SB-9 & HB-33
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Signed Minutes
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Signed Resolution
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Legal Publication of Resolution
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Legal Publication of Notice of
Election
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Legal Publication of Canvass
Results
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Signed Certification of Canvass
(Documents due April 12, 2013)
Miscellaneous Issues
Lease Purchase Process
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You must obtain PSFA approval before
submitting to the PED
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Cover letter
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School Board or Governing Body minutes
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Certification of attorney
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Copy of proposed lease purchase
arrangement
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List source of funds
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Charter schools submit to Charter School
Division and school districts submit to COB
Summary
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Balances for 27106, 27115,
27171, 27174, 31400, and
31700 are on the COB
webpage
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Understanding new changes to
the direct appropriation process
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How to obtain reimbursement
for all capital outlay projects
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SB-9 and HB-33 Updates
Evaluation & Questions
Contact Us
Antonio Ortiz – Director
(505) 827-6613
[email protected]
Chris Thweatt – Financial
Coordinator
(505) 827-6609
Christopher[email protected]
Lisa Romero – Financial
Coordinator
(505) 827-7646
[email protected]

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