Advisory Committee on Financial Management

Advisory Committee on Financial Management, Accounting and Reporting

Approved Minutes – February 20, 2013

Members in attendance: Tracey Fiereck , Dianna Groskreutz, Janet Halonen, Chuck Herdegen, Stella Johnson, Willie Larson, Heide Miller, David Peterson, Sarah Slaby, Jeff Yeager

MDE staff in attendance: David Day, Karen Dykoski, Greg Hein, Sarah Miller, Patti Scott The meeting was called to order by new chairperson Janet Halonen at 12:06 p.m. The agenda was approved after removing a planned presentation by Nancy Schultzenberg who was unable to attend the board meeting.

Approval of the December 12, 2012 Meeting Minutes: The minutes were approved after making two small revisions.

Committee members were introduced. New members were Heide Miller (Chisago Lakes Public School District, ISD 2144), Chuck Herdegen (Finance Manager for Charter Schools) and Willie Larson (Red Lake Public School District, ISD 38).

Dianna Groskreutz was nominated and accepted the position of vice chairperson. Per past practice, she will become the chairperson next year.

The 2013 meeting schedule was adopted. The meetings will be held at MDE from noon until 4 p.m. on the following dates:

a. April 16

b. June 12

c. August 14

d. October 9

e. December 11

The capital subcommittee reported on their discussions and recommendations. They are currently recommending the addition of two new programs: instructional technology and non-instructional technology. There were various opinions regarding the capitalization thresholds used at school districts. It is difficult to attain uniformity when thresholds vary greatly. There was discussion regarding creating object codes that would be used for items that were “capital”, but were not capitalized due to threshold limits. It was suggested that 500 series Object Codes would be used for capitalized items and the 400 series would be used for items under the threshold, but that do not qualify as supplies. In the next subcommittee session the topic of software and licensing will be discussed. A discussion of the use of operating capital (Finance Code 302) with Object Code 820 was discussed.

Greg Hein showed the advisory board a schematic developed for staff development funds. There has been confusion about the use of finance codes 306, 307, 308 and 316. This grid should help clarify the coding of staff development.

David Day showed the board a rough draft of a schematic being developed to clarify the coding for kindergarten, pre-kindergarten and preschool programs.

Sarah Miller talked to the group about the student activity manual (MAFA). The federal guidance was passed out as a possible resource. The federal guidance does not make a distinction between under board control and not under board control as the UFARS manual does. The possibility of forming a subcommittee to look at rewriting the MAFA section of the UFARS manual was discussed. David Day mentioned that Dennis Hoogeveen and Chris Blackburn were interested in participating on the project. Dianna Groskreutz and Sarah Slaby volunteered from the Advisory Board.

Patti Scott presented to the Advisory Board potential edits to the FY 2013 UFARS submission process. Possible changes included:

1. Warning if the organization code used is not active in the MDE system

2. Precluding charter schools from using certain finance codes

3. Precluding charter schools from using certain source codes

4. Limiting certain source codes to certain funds

5. Developing a grid similar to the Chapter 10 grid for source codes (FY 2014)

6. For Balance Sheet Codes 400-499, the ending balance from the previous year must equal beginning balance of current year

7. Precluding charter schools from using certain fund balance codes

8. Currently Object Codes 395 and 895 are not allowed be zero – old COBOL programming. Object Code 395 is okay as written. Object Code 895 will be researched further and not be revised for FY 2013.

9. Balance Sheet Codes 463 and 464 are mutually exclusive – Warning

10. Course Code 667 can only be used with Finance Codes 401 and 414

11. Fund 2-3rd year – Food Service Fund Balance Report – update programming logic to General Ledger numbers 460, 463 and 464 (striking 422)

12. Adding the software vendor in the header-optional in FY 2013 and mandatory in

FY 2014

Call for agenda items for next meeting:

1. Fund balance penalties for Fund 04 – effective date

2. School Budget collection

3. Clarification in the next school business bulletin – last year’s audit findings for student activities

The meeting was adjourned at 2:45 p.m.