Reporting Bulletins are posted on Region V s web page at under Bulletins.

Reporting Bulletin FY2012-01 Date: August 5, 2011 Jill Guhlke and Cindy Seifert are readily available to field questions and provide assistance with UFARS accounting. You can expect a prompt response. Jill can be reached at (507) 386-4811. Cindy s phone number is (507) 386-4803. Dianna s New Baby We are happy to pass along the great news that Dianna had a baby boy! Riley Lon Groskreutz was born July 1, 2011at 10:39 a.m. He weighed 7 pounds 1.1 ounces and was 19.5 inches long. Mom, Dad, and baby are all doing fine. Reporting Bulletins are posted on Region V s web page at http://www.regionv.k12.mn.us/ under Bulletins. Topics Covered in this Bulletin (Use Ctrl + click to go to the Topic. Then use Alt + to go back to Table of Contents) MASBO Legislative Conference Update... 1 Referendum Timelines... 4 Levy Limitation and Certification Summer Levy System... 4 Career and Technical Education Levy... 4 Debt Service / OPEB Bond Payments Payable 2012 Levy... 5 Repeal of Safe Schools Set-Aside & MOE... 5 FY 2011 UFARS Data Uploads... 5 Property Tax Shift FY 2011... 6 Nonpublic Pupil Aids; Fiscal Year 2012 - Revised... 6 Small Schools Revenue... 7 EDRS 101 Beginners Training... 7 FY 2012 Interactive Projection Models (WHATIFs)... 8 Indirect Cost Rates Applicable for FY 2012... 8 OPEB Implicit Rate Subsidy Allocation and Reclassification... 8 SWIFT MMB Vendor Payment Website... 9 MASBO Legislative Conference Update Tom Melcher presented an E-12 Education Funding Update for MASBO members on July 27, 2011. Handouts from the session can be found on MASBO s website under Events > Calendar > Past Events > July 27, 2011 Legislative Update Meeting. http://mnasbo.org/events/legislativeupdatemtg072711.htm Highlights from the conference include: Cash Flow Aid Payment Shifts o 60-40 payment schedule begins in FY 2012 Cash Flow Charter Schools o 60-40 payment schedule begins in FY 2012 o Current payments accelerated July February o No state aid payments to charter schools in March June o Final payments accelerated; 75% paid on July 15 th (July 30 th this year due to state shutdown) 25% paid on October 30th Region V Computer Services Reporting Bulletin August 5, 2011 Page 1

Property Tax Shift o Tax shift remains at 48.6% for FY 2011 and later o Tax shift calculation changed to use gross levies before state paid tax credits are deducted o The additional aid reduction due to the methodology change will occur with the final payment for FY 2011 on October 30, 2011 State Aid Payment Delays MS 127A.46 repealed FY 2012 Revenue o $50 increase (1%) to $5,174 o Endowment calculation changes from resident ADM to adjusted ADM Charter schools become eligible effective with March 2012 payments FY 2013 Revenue o Additional $50 increase (1%) to $5,224 o New Small Schools Revenue funded with open and standing appropriation (note correct calculation shown below this differs from the information sent out by the MREA it is our understanding MREA is sending out a corrected calculation) School districts with fewer than 1,000 AMCPU qualify for revenue on a sliding scale Allowance / AMCPU = $522.40 x (1,000 AMCPU) / 1,000 Example a district with 200 AMCPU would receive $83,584 ($522.40 x 80% or $417.92 per AMCPU) Charter schools are not eligible for this revenue Early Graduation Scholarships o Beginning FY 2012, school districts and charter schools will no longer generate pupil units and associated funding for mid-year graduates who participate in the scholarship program o Beginning FY 2012, early graduation achievement scholarship program provides higher education scholarships: $2,500 for graduation one semester early $5,000 for graduation 2 semesters early $7,500 for graduation 3 or more semesters early o Allows the student to use the scholarship at any accredited higher education institution, inside or outside of Minnesota January 15 teacher contract deadline and penalty is eliminated Training & Experience Aid repealed effective for FY 2012 Two percent staff development set-aside requirement suspended for two more years (FY 2012 & FY 2013) Maintenance of effort requirement for licensed school support personnel eliminated Requirement to reserve $3 per pupil of the safe schools levy process for licensed school support staff eliminated (effective FY 2012) Region V Computer Services Reporting Bulletin August 5, 2011 Page 2

Fund Transfers During fiscal years 2012 and 2013 only, authorizes a school district to transfer money from one fund or account to another if certain conditions are met (MDE is working on a list of examples) o Cost driven funds are not available for transfer, e.g. Health and Safety o Transfers cannot be made from the Community Service Fund or the Food Service Fund under this section o School board resolution required stating the transfer will not diminish instructional opportunities for students o The district must apply to the Commissioner to make the transfer Length of School year o Replaces length of school year requirement based on days in 1997 calendar with a minimum number of hours for student instruction 425 hours for kindergarten 935 hours grades 1 6 1,020 hours grades 7-12 o Does not supersede the commissioner s approval authority of a four-day school week under section 124D.126 Integration Aid o Integration revenue statute is repealed beginning in FY 2014 o The current integration rule remains in effect with no sunset o School district levy limits for taxes payable in 2013 will include an amount equal to the district s certified integration levy for taxes payable in 2012 (not a good year to under-levy on Integration per Tom Melcher) o Integration Revenue Replacement Advisory Task Force to develop recommendations Homestead Market Value Credit o The credit is repealed effective for taxes payable in 2012 o To neutralize impact of the credit repeal on homeowners, a portion of each homestead s market value is excluded in determining net tax capacity-based taxes o Tax rates and equalizing factors adjusted for levies based on ANTC to neutralize the impact on education aids and levies (affects Tax Capacity levies) o This will not impact referendum market value-based taxes Career and Technical Education Levy o Beginning with taxes payable in 2012, increases the career and technical education levy to the greater (was lesser) of $80 times the district s ADM in grades 9 through 12 (was 10 through 12), or 35 percent (was 25) of approved expenditures o Limits the statewide levy to not more than $17,850,000 for taxes payable in 2012 calls for 35% rate to be reduced as needed to meet the caps o MDE is seeking clarification from the legislature on implementation of this levy, as the new formula generates more than $19 million of levy authority, even if the 35% is reduced to zero. Charter School Lease Aid grandfather provision is eliminated beginning in FY 2013 Region V Computer Services Reporting Bulletin August 5, 2011 Page 3

Charter School start-up aid is repealed beginning in FY 2013 Facilities and Technology Funding o Capital project levy referendum ballot language for renewals with no change in tax rate to indicate that voting yes would renew an existing capital projects referendum that is scheduled to expire (MDE is seeking clarification as the change in tax capacities will impact this due to the elimination of Homestead Market Value Credit) Student Transportation o Deletes cost per hour and cost per route from the options used to allocate costs among transportation categories Referendum Timelines The official deadline for most districts to notify counties of intent to ask for a referendum is Friday, August 26. Levy Limitation and Certification Summer Levy System Due to the State government shutdown and MDE hiring freeze, the Levy Limitation and Certification Report may not be available by September 8 th. Expect a 1 to 2 week delay. MDE is exploring options for delaying the September 30 th deadline. proposed certification School districts should schedule a board meeting late in September to accommodate the delay. Summer Levy System will not be available until late August Some levy information will need to be collected through another method; e.g Career and Technical Education (CTE) reporting requirements are covered in a separate section of this bulletin Career and Technical Education Levy July 28, 2011 memo from Dan Smith, Center for Postsecondary Success. It remains the Department s intent that districts need to submit only bottom-line estimated career and technical education expenditures for the 2011-2012 school year that will be incurred by the district. We will ask cooperative districts to report to the Department on estimated career and technical education expenditures for the 2011-2012 school year that will be incurred on behalf of each district by the cooperative or intermediate district. For this year only, we ask that this information be submitted via e-mail to Dan Smith at the Department, who will collect this information, give initial approval, and share the data with Program Finance. This information should be submitted to the Department by August 15, 2011 to allow for the approval and levy calculation processes. Please copy the following lines, add expenditure information for your district, and paste them into an e-mail to be sent to: dan.smith@state.mn.us, with a copy to: anne.danielson@state.mn.us. Region V Computer Services Reporting Bulletin August 5, 2011 Page 4

Debt Service / OPEB Bond Payments Payable 2012 Levy July 29, 2011- MN Dept of Education Business Managers (e-mail) Due to the delay in preparation of the Levy Information System caused by the state government shutdown, debt service /OPEB bond information is being provided to school districts in spreadsheet format on the MDE website. http://education.state.mn.us/mdeprod/idcplg?idcservice=get_file&ddocname=021579&re visionselectionmethod=latestreleased&rendition=primary Please review the list of outstanding bond issues for your district. If you have issued a new bond, refunded a bond issue, or a bond payment is listed incorrectly, contact Chris Kubesh at MDE to make the correction. (Bond payments being made from escrow accounts should not be included). Email documentation for each change by August 16, 2011 to chris.kubesh@state.mn.us. Debt Redemption / Other Post-Employment Benefits (OPEB) Excess Fund Balance Calculations Payable 2012 Levy A spreadsheet showing estimated reductions to Payable 2012 debt service (Fund 7) and OPEB debt service (Fund 47) levies has also been posted on the MDE website. http://education.state.mn.us/mdeprod/idcplg?idcservice=get_file&ddocname=010275&rev isionselectionmethod=latestreleased&rendition=primary Both above spreadsheets can be found on this web page: http://education.state.mn.us/mde/accountability_programs/program_finance/levy/index.html Repeal of Safe Schools Set-Aside & MOE August 2, 2011- Clarification from Tom Melcher (e-mail) There is no specific effective date for this section of the bill (Article 1, section 25), so it is effective July 1, 2011. The stricken language includes 2 requirements: 1) [repealed] requirement to set aside $3/PU for licensed school support staff. That still applies to FY 11, but if a district has a balance in that account at the end of FY 11, it can opt to transfer it to unreserved general during FY 12 or FY 13 under the new transfer language in the bill. 2) [repealed] requirement to annually certify that it is spending as much for licensed school support staff as it did in the previous year. Since this certification, as we ve implemented it, occurs during the subsequent fiscal year, we are deleting it from the summer levy screen this summer. FY 2011 UFARS Data Uploads August 1, 2011- Update from Lisa DeRemee, Supervisor, Financial Management, Facilities and Transportation Due to the shutdown and short staffing, the UFARS site is not yet open for FY 2011. We will be updating the message on the data submission site to this effect shortly. At this time, I can t give you a definite date; however, we will notify districts through the business manager listserv as soon as the site is open for submissions. Region V Computer Services Reporting Bulletin August 5, 2011 Page 5

Property Tax Shift FY 2011 July 29, 2011- MN Dept of Education Business Managers (e-mail) The tax shift spreadsheet currently posted at the link below was created in January 2011 based on certified levy, and does not reflect any county auditor adjustments reported to MDE or the legislative change for tax shift included in Laws 2011 1SP, Chapter 11, Article 5, Section 2. It is not final and should not be used to record tax shift accounting entries. http://education.state.mn.us/mde/accountability_programs/program_finance/index.html Based on amendments to M.S. 123B.75, beginning with FY 2011, state-paid tax credits are no longer included in the calculation of the tax shift. As a result, in coming years, the gross tax shift, adjustment to state aids, and accounting entries will be finalized each year in late June or early July. Statewide, there is a one-time state savings (increase in state aid adjustments) of about $13 million in FY 2012. Our plan to provide information to school districts based on is a two step process. 1. The spreadsheet will be revised to include county auditor adjustments and reposted. Any state aid adjustments, positive or negative, will be implemented in the August 30 and/or September 30 final state aid payments. 2. The spreadsheet will be revised to eliminate state-paid tax credits from the calculation. The district will use the information on this report to record year-end accounting entries to record the shift of levy revenue from FY 2012 to FY 2011. Additional adjustments to state aid will occur in the October 30 final state aid payments, as directed by Laws 2011 1SP, Chapter 11, Article 5, Section 11. You will be notified through the business manager s listserv when each version is available. Each of the two spreadsheets pre and post legislative change - will be posted with differentiation as to which is pre and post change. Nonpublic Pupil Aids; Fiscal Year 2012 - Revised July 28, 2011 memo from Greg Sogarrd, Education Finance Specialist REVISED AUTHORIZED RATES OF ENTITLEMENT: a. The authorized rates of entitlement per eligible pupil to be used in computing district allotments for nonpublic pupil aids for school year 2011-2012 are as follows: Textbooks, Standardized Tests, and... $ 81.40 Individualized Instructional Materials Pupil Health Services... $ 58.29 Secondary Pupil Guidance and Counseling Services... $203.65 b. Rates may be readjusted on or about October 15 when the actual appropriation and program PUPIL REQUESTS: due no later than September 15, 2011 STUDENT REPORT (ED-01650): submitted to the public school district by October 1, 2011 DISTRICT REPORT: due to department by October 15, 2011 Advance payments for district reports received by October 15, 2011, will be made on November 30, 2011. Region V Computer Services Reporting Bulletin August 5, 2011 Page 6

Small Schools Revenue The Special Session established a small schools revenue program for FY 2013 and later for school districts with less than 1,000 pupil units. Charter schools are not included. Sec. 17. Minnesota Statutes 2010, section 126C.10, is amended by adding a subdivision to read: Subd. 2c. Small schools revenue. A school district, not including a charter school, is eligible for small schools revenue equal to the product of: 1. $5,224; 2. the district's adjusted marginal cost pupil units for that year; 3. the greater of zero or the ratio of (i) 1,000 less the district's adjusted marginal cost pupil units for that year, to (ii) 1,000; and 4. 0.10. Following is the detailed revenue calculation per Subd. 2c. (using an example of 200 AMCPU) $5,225 x 200 = $1,044,800 1,000 200 = 800 800 / 1,000 =.8 $1,044,800 x.8 = $835,840 $835,840 x.1 = $83,584 Following is the simplified revenue calculation provided by Tom Melcher. Allowance / AMCPU = $522.50 x (1,000 AMCPU) / 1,000 A district with 200 AMCPU would multiple $522.40 times 80% to arrive at $417.92 times 200 PU or $83,584 in new revenue. EDRS 101 Beginners Training August 3, 2011- to Special Ed Directors, MN Dept of Education (e-mail) All of the trainings are morning sessions at the Minnesota Department of Education in Roseville, Minnesota in Computer Lab H-2. You will need to go to the main entrance (not the conference centers) to sign in at the security desk. The dates for the EDRS 101 Beginners Training are: Thursday, September 8, 2011 Thursday, September 22, 2011 Thursday, October 6, 2011 Thursday, October 20, 2011 Thursday, November 3, 2011 Thursday, November 17, 2011 If you have any questions about the EDRS training please contact Mike Matlock at 651-582- 8379 or mike.matlock@state.mn.us If you have any questions about registration for the EDRS training please contact Glenda Meixell at 651-582-8713 or glenda.meixell@state.mn.us Region V Computer Services Reporting Bulletin August 5, 2011 Page 7

FY 2012 Interactive Projection Models (WHATIFs) July 27, 2011- MN Dept of Education Business Managers (e-mail)...for more information view FY 2012 Interactive Projection Models (WHATIFs) for General Education and Charter School and the multi-year FY 2010 - FY 2015 General Education Interactive Projection Model (WHATIF) on this web page: http://education.state.mn.us/mde/accountability_programs/program_finance/general_educatio n/whatifs/index.html Region V s Master Revenue Projection 2012 model has been updated to match the MDE s FY 2012 WHATIF model dated July 28, 2011. The revenue projection model can be found on Region V s website at http://www.regionv.k12.mn.us/. Click on DOWNLOADS > Finance Spreadsheets. The site is password protected. Region V sent an email to districts on July 21, 2011 with the user name and password information. Please contact Region V if you need this information. Indirect Cost Rates Applicable for FY 2012 June 8, 2011memo from David Day, Education Finance Specialist The restricted and unrestricted indirect cost rates applicable to your district, charter school or cooperative for FY 2012 have been calculated. These rates were computed from your FY 2010 UFARS financial data as reported to the Minnesota Department of Education. The rates are available on the website at: http://education.state.mn.us. Click on Accountability Programs > Program Finance > Financial Management > Reports, then scroll down to Federal Programs- Indirect Cost Rates. OPEB Implicit Rate Subsidy Allocation and Reclassification If your insurance plan covers both active employees and current retirees under the same premium, an implicit rate subsidy may have been calculated in your actuarial determination. The health insurance payment for retirees must be paid based on the value of the premium that was used in the determination rather than the actual cost of the premium. You may be able to determine this value from your actuarial study or you may need to contact your actuary. Since the premiums for active employees are subsidizing the retiree portion of the insurance plan, any variance between the value of the premium and premium actually charged the district goes back to the district and is accounted for by a reduction to the active employee costs for health insurance. Region V has a spreadsheet to assist districts with the recording of financial transactions relating to other post-employment benefits (OPEB) expenditures. The district supplies the Implicit Rate and then the spreadsheet allocates the subsidy across the object code 220 health insurance account codes. It then creates the Journal Entry with an offset to object code 291 OPEB (Payas-you-go). The journal entry can be imported into SMART Finance. Contact either Cindy or Jill for assistance. Jill can be reached at (507) 386-4811. Cindy s phone number is (507) 386-4803. Region V Computer Services Reporting Bulletin August 5, 2011 Page 8

SWIFT MMB Vendor Payment Website IDEAS Checkstub Elimination and Access to Minnesota Management and Budget (MMB) Vendor Payment Website School Business Bulletin No. 45, June 2011 Beginning with the July 15, 2011 payment period, the IDEAS checkstub will be eliminated from the MDE Minnesota Funding Reports (MFR) website. As an alternative, we strongly suggest that for receipting state aids, districts and charter schools access, print, and save the full IDEAS Combined Payment Report for the period. The report is available at http://education.state.mn.us/mfrsystem/index.do After choosing your district or school, choose by Report Category and IDEAS Combined Payment Report. This report provides more complete information as to the state aid entitlement basis resulting in the current payment, aid that has been received to date, adjustments to gross payments occurring in the period, and a projection of future payments based on entitlements in the report that will include pending state aid adjustments. Part two of the report provides the UFARS coding used to receipt payment for the current school year, and for the prior year, if payment is made in the period. School district and charter school staff may also want to access the Minnesota Management and Budget (MMB) vendor payment website for information regarding all payments made through State of Minnesota agencies to the district or school at the link provided below. This site includes not only state and federal payments from the Department of Education, but also any payments from the Department of Human Services for third party billing, or any incidental payments from other state agencies. Access to the information requires entry of the taxpayer identification number and a PIN number. Your school district or charter school was assigned a PIN number when electronic fund transfers from Minnesota Management and Budget were initiated. If you do not have the PIN number, call or email the EFT Helpline at 651-201-8106 efthelpline.mmb@state.mn.us. You will need the full name, address, district number and/or Federal Tax ID to allow MMB staff to provide the assigned PIN. https://www2.mainserver.state.mn.us/vendorpmts/login.html For questions or information on the elimination of the IDEAS Checkstub or the Minnesota Management and Budget (MMB) vendor payment website, please contact Sarah Miller at sarah.c.miller@state.mn.us or 651-582-8370. ******** Follow these steps to access payment information in the SWIFT payment system. 1. Enter User ID and Password 2. Main Menu 3. Review Payment Information 4. Invoices 5. Enter date range 6. All invoices paid within that range are displayed 7. Click on the individual invoice number to bring up the screen shot that contains the detail (provides payment status, amount and description) Region V Computer Services Reporting Bulletin August 5, 2011 Page 9

Reporting Bulletin FY2012-02 Date: September 8, 2011 Jill Guhlke and Cindy Seifert are readily available to field questions and provide assistance with UFARS accounting. You can expect a prompt response. Jill can be reached at (507) 386-4811. Cindy s phone number is (507) 386-4803. Dianna is on maternity leave until September 26th (then she can be reached at (507) 386-4804). Reporting Bulletins are posted on Region V s web page at http://www.regionv.k12.mn.us/ under Bulletins. Note- We are still unable to submit UFARS data to the state. We will submit files to the MDE as soon as the site opens. UFARS files will be submitted in the order UFARS Data Release Forms were received by Region V. We recommend that districts send in a release form to us as soon as possible. Topics Covered in this Bulletin (Use Ctrl + click to go to the Topic. Then use Alt + to go back to Table of Contents) Guidance for Transfer of Funds... 1 Staff Development Legislation Changes and Reporting Requirements... 5 Payable 2012 Tax Rates Revised... 6 Obligation of Funds Deadline... 7 Dates of Importance for Referendum Elections... 7 Reports Due... 8 Guidance for Transfer of Funds August 31, 2011 memorandum from Tom Melcher, Director, MDE, Program Finance Division This memorandum provides guidance to districts seeking approval to complete permanent transfers for FY 2012 and FY 2013 under the authority granted in Laws 2011, 1 st Special Session, Chapter 11, Article 5, Section 11. The Request for Fund Transfer is posted to the department website at: http://education.state.mn.us/mde/accountability_programs/program_finance/financial_management/i ndex.html. Transfers may not be approved under this authority that would affect June 30, 2011 year end balances. Existing statute provides the following process for districts to seek commissioner approval to make permanent fund transfers outside of those permitted under Minnesota Statutes, section 123B.79: Minnesota Statutes, section 123B.80 EXCEPTIONS FOR PERMANENT FUND TRANSFERS. Subdivision 1. Commissioner's authorization. The commissioner may authorize a board to transfer money from any fund or account to another fund or account according to this section. Subd. 2. Application. A board requesting authority to transfer money must apply to the commissioner and provide information requested. The application must indicate the law or rule prohibiting Region V Computer Services Reporting Bulletin - September 8, 2011 Page 1

the desired transfer. The application must be signed by the superintendent and approved by the school board. Subd. 3. Approval standard. The commissioner may approve a request only when an event has occurred in a district that could not have been foreseen by the district. The event must relate directly to the fund or account involved and to the amount to be transferred. The 2011 legislature enacted a temporary exception to the approval standard set in Minnesota Statutes, section 123B.80, subdivision 3, for FY 2012 and FY 2013. Laws 2011, 1 st Special Session, Chapter 11, Article 5, Section 11 states: Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY. (a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal years 2012 and 2013 only, the commissioner must approve a request for a fund transfer if the transfer does not increase state aid obligations to the district or result in additional property tax authority for the district. This section does not permit transfers from the community service fund or the food service fund. (b) A school board may approve a fund transfer under paragraph (a) only after adopting a resolution stating the fund transfer will not diminish instructional opportunities for students. For FY 2012 and FY 2013 only, a board may request authority to make a permanent transfer without the need to identify an unforeseen event directly related to the fund or account involved, as long as the transfer meets the following criteria: 1. The transfer must not affect June 30, 2011 fund balances; 2. The transfer cannot be from Fund 02- Food Service, or Fund 04- Community Service; 3. The transfer cannot increase state aid obligations to the district; 4. The transfer cannot result in additional property tax authority for the district; 5. The application for transfer must cite the law or rule prohibiting the desired transfer and identify the fiscal year affected by the transfer, the amount and specific accounts from/to which funds are to be transferred, and be signed by the superintendent and approved by the school board. 6. The application must be made by submitting the Request for Fund Transfer form under Laws 2011 and must include a copy of the school board resolution stating that the fund transfer requested in the application will not diminish instructional opportunities for students, along with a copy of board meeting minutes documenting adoption of the resolution. The table below summarizes transfer authority permitted under Laws 2011, 1 st Special Session, Chapter 11, Article 5, Section 11, for reserved/restricted accounts in Fund 01, General Fund. Region V Computer Services Reporting Bulletin - September 8, 2011 Page 2

FIN Code RESERVE # RESERVE NAME Statute Prohibiting Transfer TRANSFER ALLOWED in FY 2012 and FY 2013 with Commissioner's Approval 306,307, 308 403 Staff Development Minn.. Stat. 122A.61 YES 385 405 Deferred Maintenance Minn.. Stat. 123B.591 YES 406 Health & Safety Minn.. Stat. 123B.57 Subd 3 NO 407 Capital Projects Minn.. Stat. 123B.63 Subd 4 NO 310 408 Cooperative Minn.. Stat. 123A.27 YES 409 Alternative Facilities Minn.. Stat. 123B.59 Subd.8 NO 413 Building Projects with Lease Levy Minn.. Stat. 126C.40 NO 414 Operating Debt No current authorization NO 416 Levy Reduction Minn.. Stat. 475.61 Subd 4 NO 390 417 Taconite Building Maintenance Minn.. Stat. 298.28 Subd 4 (b)(ii) YES 327 423 Certain Teacher Programs Minn.. Stat. 124D.31 YES 302 424 Operating Capital Minn.. Stat. 126C.10 Subd 14 YES 371 426 $25 Taconite Minn.. Stat. 298.28 Subd 4 (d) YES 427 Disabled Access Minn.. Stat. 123B.58 NO 330 428 Learning & Development Minn.. Stat. 126C.12 Subd 4-5 YES 303 434 Area Learning Center (ALC) Minn.. Stat. 123A.05 Subd 2 YES 304 435 Contracted Alternative Programs Minn.. Stat. 124D.69 Subd 2 YES 305 436 State Approved Alternative Programs Minn.. Stat. 126C.05 Subd 15 YES 388 438 Gifted & Talented Minn.. Stat. 126C.10 Subd 2b YES 317 441 Basic Skills Minn.. Stat. 126C.15 YES 830 445 Career Tech Minn.. Stat. 124D.4531 NO 339 449 Safe Schools Levy Minn.. Stat. 126C.44 YES 345 450 Transition for Pre-Kindergarten Minn.. Stat. 126C.10 subd 31b YES 451 QZAB and QSCB Future Payback Restricted by Debt Covenants NO 452 OPEB Liabilities not held in a trust Minn.. Stat. 475.52 Subd 6 NO 453 Unfunded Severance and Retirement Levy Minn.. Stat. 126C.41 Subd 6 Transfers from the following funds impact levy authority and/or state aid and therefore cannot be approved under the authority granted under Laws 2011, 1 st Special Session, Chapter 11, Article 5, Section 11: Transfers from the Debt Service Fund (07) to another fund. Minnesota Statutes, section 475.61, subdivision 3 (e) requires that excess debt redemption funds be used to reduce levies. Subdivision 4 (a) of this section requires that any surplus funds remaining after obligations are paid in full are to be used to reduce levies and state aids, except for any surplus on retired obligations authorized on or after July 1, 2005, which the district may appropriate to any other general purpose without any reduction in state aid or levies. NO Transfers from the Building Construction Fund (06) to another fund. Minnesota Statutes, section 475.65 requires any balance remaining after projects have been completed and paid for to become part of the debt service fund and used to reduce levies and aids, unless devoted to any other public use authorized by law, and approved by resolution adopted or vote taken in the manner required to Region V Computer Services Reporting Bulletin - September 8, 2011 Page 3

authorize bonds for such new use and purpose. Note: this means that a decision to reuse surplus building construction funds is subject to the same procedural requirements as the project for which funds were originally authorized; for example, a referendum to authorize the repurposing of bond proceeds previously approved by district voters; or submission of a review and comment, and school board approval for a new project funded from surplus non-voter-approved bond or levy proceeds. Identified below is an example of accounting treatment for transfer transactions approved under 123B.80. Two new Uniform Financial Accounting and Reporting Standards (UFARS) codes, Object Code 911 and Source Code 651, have been established and must be used to record commissioner-approved transfers. NOTE: Transfers using these codes may only occur between funds and reserve accounts where transfers have been approved by the Commissioner of the Minnesota Department of Education. Transfer must use designated new object / source codes along with the related finance code. Object 911- Commissioner Approved Transfers - Out Source 651- Commissioner Approved Transfers - In Transaction example: Proposed entry within Fund 01 FD-ORG-PRO- FIN- OBJ DR CR E 01-005- 950-302- 911 XXX R 01-005- 000-000- 651 XX Region V Computer Services Reporting Bulletin - September 8, 2011 Page 4

Staff Development Legislation Changes and Reporting Requirements August 31, 2011 memorandum from Tom Melcher, Director, MDE, Program Finance Division and Steve Dibb, Acting Director of School Improvement What are the legislative changes in staff development? 1. The requirement to spend the two percent set-aside for staff development has been temporarily suspended. Under Laws of Minnesota for 2011, First Special Session, Chapter 11, Article 1, Section 35, school districts may use revenue reserved for staff development under Minnesota Statutes, section 122A.61, subdivision 1, according to the requirements of general education revenue under Minnesota Statutes, section 126C.13, subdivision 5 for Fiscal Year (FY) 2012 and FY 2013 only. Also, a vote of the teachers is not required to waive the staff development two percent spending requirement for FY 2012 and FY 2013. If a district decides to use a portion of the revenue for staff development, it may do so without regard to usual requirements of this subdivision, including the requirements to allocate 50 percent of the revenue amount to sites on a per teacher basis and for the school board to have the discretion to use funds for any general fund purpose. However, recommended best practices and continuity of staff development programs would call for the school board allocating some funds for staff development and using the 50-25-25 formula established in Minnesota Statutes, section 122A.61, subdivision 1. The reporting requirements under Minnesota Statutes, section 122A.60, subdivision 5, have not been waived. A report is to be submitted to the Minnesota Department of Education (MDE) with staff development results, activities and expenditures for the previous year by October 15. The commissioner provides a legislative report each year on district and school staff development progress and expenditure data to the House of Representatives and Senate education committees. 2. Transfer of carry-over staff development funds. School districts may transfer carry-over staff development funds from district, school or exemplary grant accounts under Laws of Minnesota for 2011, First Special Session, Chapter 11, Article 5, Section 11. During fiscal years 2012 and 2013 only, a school district may transfer money from one fund or account to another if the following conditions are met: a. The transfer must not increase state aid obligations or increase local property taxes; b. Transfers cannot be made from the community service fund or the food service fund under this section; c. The school board must adopt a resolution stating that the transfer will not diminish instructional opportunities for students; d. The district must apply to the Commissioner to make the transfer. The application must include the amount to be transferred and the funds/accounts involved. It must be signed by the superintendent and approved by the school board. What has not changed? Minn. Stat. 122A.60 Staff Development Program. 1. District and schools develop staff development plans. Districts and schools are required to develop, implement, evaluate and report staff development plans. Region V Computer Services Reporting Bulletin - September 8, 2011 Page 5

2. District and schools establish staff development committees. The school board must establish an advisory staff development committee to develop the plan, assist site staff development teams in developing a site plan consistent with the goals of the plan and evaluate staff development efforts at the site level. 3. Districts and schools submit an annual report of staff development goals, activities and results. A report is submitted to MDE with staff development results, activities and expenditures for the previous year by October 15. The commissioner provides a legislative report each year on district and school staff development progress and expenditure data. In the event that the 2011 MCA assessment data has not been released by the time the online report is to be submitted by the October 15 deadline, MDE recommends that districts use trend data from previous years as well as local assessment data to report on student achievement. Reports can include a statement informing readers that the 2011 MCA results had not been released as of the publishing date of the report. 4. Staff development decision making policies. The district should use the district staff development committee to form policies around staff development programs and use of funds. These processes should be transparent, well documented and include any information on ongoing actions. Many staff development decisions are made at the local level and coherent with Minnesota staff development statutes. If you have any questions, contact Deborah Luedtke at deborah.luedtke@state.mn.us or at 651-582-8440. Payable 2012 Tax Rates Revised September 1, 2011 memorandum from Tom Melcher, Director, MDE, Program Finance Division 2010 Adjusted Net Tax Capacity and Payable 2012 Tax Rates Revised for Homestead Market Value Exclusion Pursuant to Laws 2011, First Special Session, Chapter 7, Article 6, Sections 2, 3, 5, 6 and 27, a portion of homestead market value is excluded from the calculation of net tax capacity to help offset the impact to homeowners of the repeal of the homestead market value credit. This change reduced the 2010 adjusted net tax capacities that were certified by the Department of Revenue in June. (Note: referendum market values were not impacted by the law change.) These new adjusted net tax capacities will be used in calculating payable 2012 levy limitations. The attached spreadsheet shows the reduction in net tax capacity and adjusted net tax capacity for each school district. The new certification is also available on the Department of Revenue s website at: http://taxes.state.mn.us/property_tax_administrators/pages/other_supporting_content_antc_main.aspx The legislation also directs the Commissioner of Education to adjust tax rates and equalizing factors to neutralize the impact on education aids and levies. The attached spreadsheet shows the calculation of the converted rates and equalizing factors that will be used to calculate levies for taxes payable in 2012 and later years. Both spreadsheets will also be available on the MDE website at(http://education.state.mn.us/mde/index.html) > Accountability Programs > Program Finance >Levy. Region V Computer Services Reporting Bulletin - September 8, 2011 Page 6

Obligation of Funds Deadline Be sure to obligate your funds in Finance 151 and Formula 433, 470 and471 by September 30th. They must be spent by November 14th. Dates of Importance for Referendum Elections From MSBA Website Dates of importance for November 8, 2011 referendum elections are as follows: August 26, 2011 Last day to adopt resolution calling the referendum election. If the election is held in conjunction with a school district or city general election. August 26, 2011 Last day to notify county auditors and the Commissioner of the date of the election and the questions to be voted on. If the election is held in conjunction with a school district or city general election. Last day to cancel referendum election for general election day. (74 days before the general election). September 16, 2011 Last day to adopt resolution calling the referendum if the election is not held in conjunction with a school district or city general election (53 days before general education). September 16, 2011 Last day to notify county auditors and the Commissioner of the date of the election and tax questions to be voted on if the election is stand alone. September 23, 2011 First day absentee ballots must be available for November election held in conjunction with school district or city general election. (46 days prior to election). Last day to cancel stand alone referendum election. October 9, 2011 First day district may mail required notice (no more than 30 days prior to election). First day absentee ballots must be available for stand alone election. Because this date falls on a Sunday, districts should post notice and have the absentee ballots available by Friday, October 7. October 18, 2011 Last day to preregister for November election (at least 21 days prior to date of election). October 24, 2011 Last day to mail required notice and to provide a copy of required notice to Commissioner of Education and county auditors (at least 15 days prior to date of election). October 25, 2011 Last day to publish first notice of November election. October 29, 2011 Last day to post notice of November election (at least 10 days prior to date of Region V Computer Services Reporting Bulletin - September 8, 2011 Page 7

election). Because this date falls on a Saturday, districts should post notice by Friday, October 28. Campaign finance reports are due if more than $750 spent. November 1, 2011 Last day to publish second notice of November election. November 4, 2011 Last day to post sample ballot for November election (at least 4 days prior to date of election). November 7, 2011 Last day to apply for absentee ballot for November election (day prior to date of election). November 8, 2011 Election Day. November 11-18, 2011 November election canvassing period. 15 days after canvass. Last day to notify Commissioner of results of election. Reports Due This list is not inclusive refer to MDE Data Submissions for additional reporting requirements. Link to Data Submissions: http://education.state.mn.us/websitecontent/submissions.jsp Note- We are still unable to submit UFARS data to the state. We will submit files to the MDE as soon as the site opens. UFARS files will be submitted in the order UFARS Data Release Forms were received by Region V. We recommend that districts send in a release form to us as soon as possible. Sept 13 Electronic MARSS submission to the MDE (End of Year FY 2011) Sept 15 Electronic Initial Upload of UFARS data (audited or unaudited)--see note above Sept 15 Transportation Allocation Spreadsheet Sept 19 ARRA Reporting Survey Sept 27 Electronic CHARTER SCHOOLS MARSS submission to MDE (Fall 2012) Sept 29 DS Carl Perkins Data Collection Oct 1 EDRS Estimated ADM and LEP Projections Oct 1 Annual Report - Curriculum, Instruction and Student Achievement (published or posted on district website with published notice) Oct 7 DS & Paper Certify Proposed Property Tax Levy for Payable to MDE (Levy certified online with signature submitted via paper form) Oct 7 DS & Paper Certify Proposed Property Tax Levy Payable to County Auditor (Levy certified online with signature submitted via paper form) Oct 11 Electronic MARSS submission to the MDE (Fall 2012) Oct 15 ED-01650E Program Report for Nonpublic Aids Oct 15 DS Annual Staff Development Report Oct 15 DS Athletic Data Reporting Oct 25 Electronic Final MARSS Submission to the MDE (End of Year 2011) Oct 31 Q-Comp Site Goal Update Form Region V Computer Services Reporting Bulletin - September 8, 2011 Page 8

Oct 31 Unclaimed Property Report Nov 1 ED-00226E Community Education Annual Report Nov 15 ED-00199E Certificate of Assurance of Compliance with State and Federal Law Nov 15 Electronic MARSS submission to the MDE (Fall 2012) Nov 15 ED-00027E Nonpublic Fall Report Nov 22 Electronic STAR submission to the MDE (Fall 2012) Nov 30 ED-00110E District Revenue and Expenditure Budget Publication for FY 2012 (within one week of the acceptance of the final audit by the board, or November 30, whichever is earlier) Nov 30 DS UFARS Fiscal Compliance Table Nov 30 Electronic Final Audited UFARS Submission Dec 1 DS 0-4 Census Data Reporting Dec 16 Electronic Final MARSS submission to the MDE (Fall 2012) Dec 31 DS Compulsory Attendance Compliance Report Jan 2 School District Audit Report Distributed to MDE, State Auditor E = Report is found on-line DS = Data Submissions. Go to the Department of Education s website at www.education.state.mn.us and click on Data, and then select Data Submissions. Scroll down to locate the report. Region V Computer Services Reporting Bulletin - September 8, 2011 Page 9

Reporting Bulletin FY2012-03 Date: June 28, 2012 Jill Guhlke, Cindy Seifert and Dianna Groskreutz are readily available to field questions and provide assistance with UFARS accounting. You can expect a prompt response. Jill can be reached at (507) 386-4811. Cindy s phone number is (507) 386-4803. Dianna s phone number is (507) 386-4804. Dianna Groskreutz will be out of the office on a FMLA leave beginning in August. Reporting Bulletins are posted on Region V s web page at http://www.regionv.k12.mn.us/ under Bulletins. Topics Covered in this Bulletin (Use Ctrl + click to go to the Topic. Then use Alt + to go back to Table of Contents) IRS Mileage Rate... 1 Prepare for Year-End Activities... 1 FY 2012 Submission Update... 1 Property Tax Shift FY 2012... 3 Levy Reporting... 3 Transportation Reporting... 4 MARSS End of Year FY 2012 Timelines... 5 Election Timelines... 5 Miscellaneous Reminders... 6 Reports Due... 6 IRS Mileage Rate The Internal Revenue Service Mileage Rate for 2012 is 55.5 cents. Prepare for Year-End Activities For FY 2012, the statutory deadlines on reporting and submitting data and audits are: No later than September 17, 2012 Initial Upload of UFARS data (audited or unaudited) No later than November 30, 2012 Final Upload of Audited UFARS data No later than November 30, 2012 Completion of Audited UFARS Compliance Table No later than December 31, 2012 Audit Report Submitted to MDE and State Auditor FY 2012 Submission Update June 21, 2012 memorandum from David Day, Education Finance Specialist, MDE New for 2012 Submission 1. Districts may submit completed financial audits and required supplemental information in standard printed and bound format via United States Mail or other courier service. OR Region V Computer Services Reporting Bulletin - June 28, 2012 Page 1

2. Districts may submit completed financial audits and required supplemental information via e-mail with attached files in PDF format using the naming convention identified here. As stated above, MDE is to receive all audit reports by December 31, 2012, if received after December 31, 2012, the postmark must be on or before December 31, 2012. Printed audit reports may be submitted via USPS or other courier (UPS, FedEx, etc.) and postmarked or time stamped by courier NO LATER than December 31, 2012. Beginning with 2012 audit submission process, MDE will accept electronic files (e-files) via e- mail, and using the standard file naming convention listed below and stored in a PDF format. To Submit E-files to MDE Each management letter (or COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE ) must be transmitted in a separate pdf file. Naming Conventions Audit reports may be submitted using the MDE e-mail address provided below and must use the following naming convention: A separate file for each of these reports (see examples below): 1. Audited District Financial Statements convention: FinStm.District 2. District Management Letters convention: MgtLltr.District 3. Student Activity Audits convention: FinStmt.Student 4. Student Activity Management Letter convention: MgtLt.Student 5. Other Reports convention: Other Other reports may be conveyance letters, letters indicating a management letter was not issued, additional files, etc. Fiscal Year District Number District Type District Name Report Name 4 characters 4 characters 2 characters Up to 12 characters in - FinStm.District length - MgtLltr.District - FinStmt.Student - MgtLt.Student - Other The naming convention for required files: Each element must be separated by a. (Period) Example: 2012.0001.03.Minneapolis.FinStm.District 2012.0001.03.Minneapolis.FinStm.Student 2012.0001.03.Minneapolis.MgtLtr.District 2012.0001.03.Minneapolis.MgtLtr.Student 2012.0001.03.Minneapolis.Other The e-mail addresses for electronic submission are: Minnesota Department of Education: MDE.FinMgt@state.mn.us Office of State Auditor: SingleAudit@osa.state.mn.us Region V Computer Services Reporting Bulletin - June 28, 2012 Page 2

Districts Submitting via USPS or Courier: Please submit one printed (hard) copy of the audit and other required documents to: Minnesota Department of Education Division of School Finance Attn: David Day (I-12) 1500 Highway 36 West Roseville, MN 55113-4266 Minnesota Statute, section 123B.77, subdivision 3, also requires each district to send a copy of the audit and all supplemental report to the Office of State Auditor. The Office of State Auditor requests all copies to be in electronic format and must be received no later than December 31, 2012. If you have any questions, please contact David Day at (651) 582-8384 or e-mail david.day@state.mn.us. Property Tax Shift FY 2012 The FY 2012 Property Tax Shift spreadsheet is not yet available on the MDE website. The tax shift percentage is 48.6%. We will update the link on the Region V website as soon as it becomes available. In general, most tax receipts received in May through July are recognized each year as revenue in July. Under Minnesota Statutes section 123B.75, subd. 5(b), a portion of these tax receipts is recognized in June of the calendar year in which it is received by the district. The early recognition of property tax revenue using an accounting entry that takes a portion of the school district s property tax revenue and moves it forward one fiscal year (i.e., taxes that would otherwise be revenue for Fiscal Year 2013 are shifted into Fiscal Year 2012) is referred to as the property tax shift. Levy Reporting June 21, 2012 memorandum from Tom Melcher, Director, MDE, Program Finance Division View memo for 2012 Payable 2013 Levy information at this link: http://education.state.mn.us/mde/schsup/schfin/levycertproc/ Access the following information for the levy verification process on the Minnesota Department of Education s (MDE) Website (http://education.state.mn.us). To get to the Levy-related information, select School Support > School Finance > Levy Certification Process. Here you will find: A copy of this memo Levy Limitation and Certification Calendar Capital Expenditure Disabled Access Revenue Application (ED-02081) Excess Debt Redemption Fund Balance Instructions Excess Debt Redemption Fund Balance Spreadsheet Region V Computer Services Reporting Bulletin - June 28, 2012 Page 3