Arkansas Department of Education Division of Elementary and Secondary Education Financial Coding Changes CM for 2022

Memo Information

Memo Number
FIN-21-037
Memo Date
4/6/2021
Memo Type
Regulatory
Unit
Fiscal & Administrative Services
Regulatory Authority
Ark. Code Ann. ยง 6-20-2207
Response Required
NO
Attention
Federal Programs; Superintendents; General Business Managers

Primary Contact Information

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No references available.

Memo Text

Revenue Code Change for Fund 6782:  43182 Title V, Part B, Subpart 1 -REAP (Rural Energy for America Program), SRSA-Small Rural School Achievement Program CFDA # 84.358. (Direct from federal level) (Fund 6782)

Carl Perkins Consortia Members Credit Expenditures when Reimbursements Received

For the State’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), it is important no double counting of revenue and expenditures occurs on federal and state reports.  As part of the Carl Perkins program, many School Districts are members of a consortium at a Coop.  This may lead to duplicate recording of revenue and expenditures when the district is reimbursed by the Coop.  With that in mind, ADE units involved have decided that the Coop will report the federal revenue and expenditures, and the District will not report revenue or expenditures in Fund 6570.  Rather, the District will receipt Carl Perkins reimbursements from a Coop as a reduction of expenditures.  At the school district level, Fund 6570 must show $0 expenditure and $0 revenue balances.

In summary, Perkins consortium members will reduce expenditure dollar for dollar per the reimbursement received from the Coop to show a $0 expenditure and revenue balance. 

ESSA.  Three new required Program codes.

038* ESA Additional compensation for teachers who assume identified leadership roles

039* ESA Social, emotional, behavioral supports and physical/mental health resources

040* ESA Access to postsecondary opportunities

238* ESA/Sp Ed Additional compensation for teachers who assume identified leadership roles

239* ESA/Sp Ed Social, emotional, behavioral supports and physical/mental health resources

240* ESA/SP Ed Access to postsecondary opportunities

6786* 45986  Title IV Student Support and Academic Enrichment. CFDA # 84.424A

  • Title IV SOF 6786 New Program Codes – Required FY ‘22

Title IV SOF 6786 Program Codes - Required

165

Administration (Section 4105(c))

167

Activities to support well-rounded educational opportunities (Section 4107)

168

Activities to support safe and healthy students (Section 4108)

169

Activities to support effective use of technology (Section 4109)

 

As of FY ‘21, only fund 6441 21st Century Community Learning Centers, approved transportation expenditure charges for the district to the federal fund.  Title I, 6501 will adopt this same method of coding effective of April 1, 2021 and forward.  Instead of moving fuel and/or other bus expenditures from operating to fund 6501 or charging 6501 rent for use of district extra trips transporting students home from after school tutoring and summer school; this expenditure calculation will be an allowable transfer of funds from fund 6501 to fund 2001 with the following code ONLY.   The ADE Federal Programs Unit will provide guidance on the calculation for such transportation expenditures and conduct monitoring to ensure amounts are allowable by program requirements.

 Transfer for Program/Grant Transportation Expenditure Calculation/cost for transporting students for program/grant. Out of Federal Fund INTO State Fund

 

Transfer OUT of FED Fund 6XXX to STATE Fund ‘2001’:     6501-5200-000-000-00         69326   

(4th digit in exp. object indicates the transfer is going to a Fund ‘2’)

Transfer IN to State 2001 Fund from Fund 6501  :                                                                                              

2001                                       52606   

(3rd digit in revenue code indicates the transfer ‘in’ came from a Fund ‘6’)

   

EDIT/Validation:  Transfers OUT 69326 must equal Transfers IN 52606.

 

Journal Entries.  Limit the number of entries in journal entries.  Do not combine entries related to multiple funds not related to the disbursement fund (0001).  Journal entries for fund 0001 are limited to just the JE related to this fund. 

Reminders of ‘fixes/corrections’ and rules/best practices prior to ‘22

  1. Writing Checks to Self - No.

It is a matter of transparency with spending public funds.  ADE units are are trying to work with districts in those areas where they legitimately need to recoup funds by allowing special fund transfers which will provide the needed transparency as well as allow the districts to compensate themselves for legitimate items that are allowed by the respective program.  Seek out this type of allowance in other funds that may have transfers restricted.

  • Checks for Concession Stand Cash.Make check payable to Concession Stand Cash.Do not receipt ‘startup change’ to revenue for the activity.Handbook01040 Change Cash. A sum of money set aside to provide change.
  • Checks for Athletic Gate Change Cash, make check payable to Athletic Gate Change Cash.
  • Writing checks to move cash from one checking account to the other, one suggestion:make check payable to XYZ Bank FS Acct # 123456 or ABC Bank Construction Acct #5647.
  • ***Most Important, keep backup, documentation of money going out and coming back in for audit purposes.
  • Do not write checks to move money from one fund to another charging to expenditure and revenue.Example paying OP from Federal Funds for transportation or anything else.
  • Do not write checks to self to move money off the balance sheet, receipt as revenue and then disburse as expenditure a second time.
  • Do not write checks to give employees or students ‘cash.’
  • Do not deduct from employee PR check any payment for Title I services, after-school child care cost, etc.Cannot write check to self.

Coding Details added for Tablets, Laptops and Computers (Supplies and Equipment):

66500 Supplies—Technology Related. Technology-related supplies include supplies that are typically used in conjunction with technology-related hardware or software. Some examples are CDs, flash or jump drives, parallel cables, and monitor stands. E-readers, including Kindles, and iPads, that fall below capitalization thresholds should be reported here as well. Software costs below the capitalization threshold should be reported here. Licenses and fees for services such as subscriptions to research materials over the Internet should be reported under 530 Communications. (Used primarily with valid functions in 1XXX instruction range, 2230, and 2580, but may also be used with 2620, 2650, and 2730.)

66520 Technology-related Device Supplies. Technology-related devices and equipment that are not specifically listed as a TED (66521) or TLC (66523) include printers, copiers, cameras, recording devices, and other devices with some level of complexity to operate.  The cost is < $1,000. 

66521 Technology Educational Device (TED) supplies. A tablet or laptop or computer or any type of direct instruction delivery device (i.e. classroom projector or smartboard) that is used by a student or classroom teacher to support learning. The intent of the TED is to be utilized in a classroom (in-school or virtual) setting. The cost is < $1,000.  (Added 3-12-2021, required FY ’22)

Special Note on TEDs:

A printer, copier, school office tablet/laptop/computer and any technology devices not used in the classroom do not qualify as a TED. These items are not considered to directly support student learning in an instructional capacity (i.e. a classroom printer's value to instruction is indirect because paper is still needed for learning).

  • TEDs with a cost of less than $1,000 are coded to 66521.
  • TEDs with a cost of $1,000 or more are coded as a fixed asset to 67341.

TEDs are used with functions in 1000 range and 2230. REQUIRED FY22.

66523 Tablet, Laptop or Computer (TLC). – NON-INSTRUCTION – include tablets (iPads, etc.), laptops (Macbooks, etc.) and “portable” computers (Chromebooks, etc.) that are not used for direct learning. The cost is < $1,000.  TLCs are typically purchased for principals and administrators. TLCs are used with valid functions in 2100-2700 range excluding 2230. REQUIRED FY22.

67340 Technology-Related Hardware. Expenditures for technology-related equipment and technology infrastructure. These costs include those associated with the purchase of network equipment, servers, PCs, printers, other peripherals, and devices. Technology-related supplies (cost <$1000) should be coded to object code 66521, Technology Educational Device (TED) supplies. (Used with all functions, but primarily with 1XXX instructional range, 2230, and 2580.)  Technology-related devices and equipment that are not specifically listed as a TED (67341) or TLC (67343) include printers, copiers, cameras, recording devices, and other devices with some level of complexity to operate. The cost is >=$1000.

67341 Technology Educational Device (TED). A tablet or laptop or computer or any type of direct instruction delivery device (i.e. classroom projector or smartboard) that is used by a student or classroom teacher to support learning. The intent of the TED is to be utilized in a classroom (in-school or virtual) setting. The cost is >= $1,000.   See “Special Note on TEDs” listed under object code 66521.

67343 Tablet, Laptop or Computer (TLC). – NON-INSTRUCTION – include tablets (iPads, etc.), laptops (Macbooks, etc.) and “portable” computers (Chromebooks, etc.) that are not used for direct learning. The cost is >= $1,000. TLCs are typically purchased for principals and administrators. TLCs are used with valid functions in 2100-2700 range excluding 2230. REQUIRED FY22.

67350   Technology Software.  Expenditures for purchased software used for educational or administrative purposes that exceed the capitalization threshold. Expenditures for software that meet the standards for classification as a supply should be coded to object code 66500, Supplies—Technology Related. (Used with all functions, but primarily with 1000, 2230, and 2580.)    

Capitalized Software & Licenses & Maintenance Agreements include all types of intangible technology-related software, programs, licenses, service contracts, and maintenance agreements required to be capitalized.  Capitalization rules are dictated by the answers to two questions:

  1. Is the cost of the intangible product $1000 or more?

    If not, do not capitalize.  Otherwise, continue to Q2.

  2. Does the intangible product have a useful life longer than one year?

If not, do not capitalize.  Otherwise, capitalize.

Example #1:

A new instructional software includes a contract price of $20,000 invoiced as follows:

  • $8,900 for initial installation and training
  • $2,100 for the first three years of support
  • $9,000 for 100 user licenses (renewed annually)

Q1 is “Yes” and Q2 is “Yes” so the $20,000 purchase is capitalized.

Example #2:

The same software receives an invoice (as contracted) for $9,000 as follows:

  • $9,000 for the annual renewal

Q1 is “Yes” but Q2 is “No” so the purchase is not capitalized.

Example #3:

A Microsoft Office license is purchased for $275 to be installed on a work computer. The license should be support and operational for over five years with no renewal costs.

Q1 is “No” but even though Q2 is “Yes”, the purchase is not capitalized.

Example #4:

An instruction program costs $2,500 annually to purchase with no other charges for installation or licensing or support.

Q1 is “Yes” but Q2 is “No” so the purchase is not capitalized.

66520 Technology-related Device

 

REMINDERS:

 

EMPLOYEE LEAVE.  START AND END DATE OF LEAVE IS REQUIRED.  Do not ever ‘disable’ a calendar to enter leave.  Verify start and end day is not null before posting.

 

Revenue code 19800 is not valid with any federal fund.  Refund of an overpayment from a previous year to a federal fund should be receipted as a ‘reduction of an expenditure’ in the current year. 

NEVER post revenue to Disbursement Fund 0001.

Rebates for ‘e-Rate’ are a reduction of expenditure if received within the same year as the expenditure being reimbursed; otherwise, it is 19800 is reimbursement is received the following fiscal year – per NCES guidelines.

 

Verify accruals.  Verify revenue earned and due ‘before’ making a revenue accrual JE.  If revenue accruals are not received by the final close of the year in August when submitting cycle 9 the accrual most likely is an invalid revenue accrual (exception federal expenditure reimbursements from ADE which are verified by the ADE finance office before close of year).

 

Recent codes added as requested by districts:

Object: 68920 Student Cash Awards and Scholarships.  Added: 12/15/2020

 

Function:  1333 EAST Initiative (Environmental and Spatial Technology) Added: 03/11/2021

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