Summary of Finances Overview

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Summary of Finances Overview

• Education Service Center Region 12
• October 22, 2009 Waco, TX
• Leo Lopez Helen Daniels
• TEA, School Finance

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Disclaimer

• Nothing communicated in this presentation
  supersedes the Texas Education Code (TEC) or the
  Texas Administrative Code (TAC).

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Agenda

• Whats new in 2009-10
• Understanding the SOF
• LPE vs. DPE
• Data sources
• Calendar
• Settle-up
• Deadlines
• Resources
• Questions

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Whats new in 2009-10

• Just a few items of interest

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Whats new in 2009-10

• SFSF-Foundation School Fund Grant
• Is calculated as the gain from HB3646
• Is withheld from Foundation School Fund
• You need to apply to gain access to funds
• SFSF-ASF Per Capita Grant
• Pays for part of the total 262 per 2009 ADA
• Is withheld from state ASF Payments
• Funds are included in total applied for above

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Whats new in 2009-10

• There are no current plans to update SOF in
  Spring 2010 using your districts budgeted MO
  tax collections.
• The purpose is to stabilize cash flows for both
  the state and for school districts.
• This means that the states estimates of MO tax
  collections will remain for twelve months.

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Whats new in 2009-10

• Technology Allotment
• Approximately 29.43 per LPE ADA
• Will be paid in May 2010
• Payment will include over/under from 2009
• High School Allotment
• Moved from fund 428 to fund 199 (PIC 31)
• Is also part of new target under HB3646

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Understanding the SOF

• Legislative Planning Estimate (LPE) vs.
• District Planning Estimate (DPE)

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Two columns whats the difference?

• DPE is used to estimate settle-up from
  September through August.
• After the school year, we begin to bring in
  actual data into DPE.

• LPE is used to flow cash to districts from
  September through August.
• During the school year, LPE calculations are
  based on estimates.

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Two columns whats the difference?

• Changes to DPE side during the school year will
  not affect your districts cash flow
• Actual data is used in DPE (NF /FIN) column and
  settled-up against estimates in LPE column.

• Changes to LPE side will affect your districts
  cash flow.
• After final August payment, LPE side is frozen in
  time, with no more updates to left side.

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Understanding the SOF

• What are the main data elements?
• Where does the data come from?

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Data elements and their sources

• Pupil counts
• Property values
• MO tax collections

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Data elements and their sources

• Pupil counts
• Pupil Projections
• PEIMS
• Property values
• Comptrollers Property Tax Division (PTAD)
• Values are from the prior tax year (2008 values
  are used for 2009-10 school year)
• Values are final prior to school year

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Data elements and their sources

• MO tax collections
• TEA internal estimates
• District submitted Tax Information Survey
• Audited schedule of delinquent taxes receivables
  (J1)
• 2009-10 MO tax collections
• (2008 Local DPV 1.0298 ) 2008 MO tax rate
  three year average collection rate / 100

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Understanding the SOF

• When does the data get consumed?

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Updates for pupil counts

• The process to establish pupil counts for 2009-10
  (and 2010-11)
• Pupil Projections Module was open in Fall 2008
  for district corrections of TEA estimates
• Pupil Projections were approved by the
  Legislative Budget Board (LBB) in Spring 2009
• Pupil counts do not change during the course of a
  funding year.

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Updates for pupil counts

• Once the school year is complete, in September of
  the following school year, we obtain access to
  PEIMS submissions.
• Near Final settle-up incorporates actual
  student attendance at that time.

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Updates for tax collections

• 2009-10 uses the formula referenced earlier
  during the course of the funding year.
• The Tax Information Survey will be open in Summer
  2010, for use in next years near final
  settle-up.
• In March / April 2010, we will obtain access to
  audited tax collections for Final settle-up.

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Understanding the SOF

• Near Final, Final and Current SOF and
  settle-up

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Near Final SOF / settle-up

• Primary data updates
• Final student attendance
• District submitted tax collection information
• Transportation allotments
• Projected balance computed by using
• NF foundation allotment
• Adjustments to date
• Payments to date

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Final SOF / Settle-up

• Primary data updates
• Audited tax collection information
• Miscellaneous data (TSB / TSD transfers, EYS,
  PEG, NIFA, etc)
• Is last statewide data update
• Projected balance is
• Computed the same way as for near final.
• In addition to the near final balance.

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Current SOF

• Primary data updates
• Are specific to individual districts or groups of
  districts.
• Include items such as ADA audits / DPV appeals.
• Projected balance (usually at or close to 0)
• Is computed the same way as on previous reports.
• Is displayed assuming all prior balances are
  accounted for.

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Understanding the SOF

• How a prior year settle-up can affect your
  current years payment schedule

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Settle-up and Payment Schedule

• Check 2009-10 Payment Schedule for changes on a
  monthly basis.
• If there are prior year recoveries posted to
  2009-10, overpayments are repaid over the course
  of remaining payments.

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Understanding the SOF

• How to reconcile adjustments and payments from
  your SOF to your ledgers

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Settle-up adjustments and ledgers

• Ledgers are not like bank statements.
• Negative adjustments dont affect current year
  earnings
• They do not represent lump sum withdrawals of
  overpayments.
• Negative adjustments must continue to be
  incorporated to arrive at final balance even
  after it appears the negative balance has been
  paid back to TEA.

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Settle-up adjustments and ledgers

• Volunteers with real settle-up questions?
• Volunteers with real ledger questions?

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Important Deadlines

• How to keep informed of and meet deadlines

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Deadlines

• The best way to make sure you dont miss any
  deadlines is to sign up for School Finance
  Listserve.
• Make sure email address associated with TEASE
  account is current.
• Ignorance is no excuse for missing a deadline.

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Deadlines

• 2008-09
• Tax Information Survey August 31, 2009
• 2009-10
• Chapter 41 specific deadlines are in manual.
• Charters have 10 days after end of six weeks to
  get six weeks reports submitted via FSP.

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Resources

• What is at your districts disposal regarding
  state funding?

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Resources available to you

• Helen Daniels, State Funding Director
• Helen.Daniels_at_tea.state.tx.us
• 512.463.9268
• Twanna Buford, Facilities Transportation
  Manager
• Twanna.Buford_at_tea.state.tx.us
• 512.463.9238

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Resources available to you

• Leo Lopez, Foundation School Program Manager
• Leo.Lopez_at_tea.state.tx.us
• 512.463.9242
• Summary of Finances and supporting documents
• http//ritter.tea.state.tx.us/school.finance/fundi
  ng/sofweb7.html
• Omar

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Questions?

• Ask away, Helen will now take all of your
  questions!