An Audit Certification Form submission is required pursuant to Act 104 (HB 101) and must be submitted no later than 12/31/2022. The form requires the signatures of the Chief School Administrator and the Board Secretary to certify that, in the auditor’s opinion, the financial information reported within the AFR is materially consistent with the LEA’s audited financial statements. The Audit Certification Template is provided within the CFRS-AFR program. A new audit certification form must be uploaded to the CFRS-AFR application when a REVISED AFR is submitted.
Athletic/Activity Funds may only be reported as Special Revenue Fund 29 if the following conditions outlined in GASB #54 are met. Please refer to Accounting Bulletin 2010-02 for further information.
Expenditures are limited to costs specifically for the intended athletic/activity program, which may not include expenditures for capital projects or debt service.
The revenue source, typically gate receipts, must comprise a substantial portion (at least 50%) of the inflow of this fund. Note: transfers from other funds may not be considered a revenue source, regardless of their origination.
If these criteria are met and Fund 29 is utilized, then ALL athletic/activity expenditures of the school must be accounted for within this fund.
If these conditions are not met, all athletic/activity expenditures must be accounted for in the general fund of the school.
The Capital Reserve Funds are reported as Funds #31 and #32 within the Capital Projects fund. Although classified as Capital Projects fund types, the capital reserve funds are still subject to more stringent legislative restrictions. Please refer to Chapter 6 of the Accounting Manual and Accounting Bulletins 2000-05, 2003-01, and 2007-01 for more detailed information.
Capital Reserve - Fund #31: The establishment and use of this fund is governed by the PA School Code, Sections 690 and 1850.
A fund created under section 690 is used only by School Districts to account for the receipts of a special tax levied for a particular purpose.
Transfers of these tax receipts from the General Fund to Fund #31 should be properly coded to expenditure detail code 5230-931.
A fund created under section 1850 is allowable for use by AVTS/CTC schools only.
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There is no manual entry area available on the Revenue Detail data entry screens to report incoming fund transfers to this Capital Reserve Fund. The amount entered in the General Fund Expenditure Detail section, code 5230-931 as outgoing transfers to Fund #31 will be automatically populated onto the Revenue Detail screen as the Fund #31 incoming transfer amount in account 9310.
Capital Reserve - Fund #32: The establishment and use of this fund is governed by the Municipal Code, Sections 1431-1436.
The only allowable deposits into this fund include the interest earnings of the fund itself, and interfund transfers from the General Fund. Transfers can be made from General Fund appropriations with surplus money throughout the year, or year-end General Fund surplus money.
There is no manual entry area available on the Revenue Detail data entry screens to report incoming fund transfers to this Capital Reserve Fund. The amount entered in the General Fund Expenditure Detail section, code 5230-932 as outgoing transfers to Fund #32 will be automatically populated onto the Revenue Detail screen as the Fund #32 incoming transfer amount in account 9300.
All expenditures of this fund must be accounted for within the fund itself. Transfers out of this fund are not allowed for any purpose.
Given that transfers out are not allowable, it is only appropriate to book an amount as “Due to other funds” if an interfund reimbursement is anticipated. Interfund reimbursements may be recorded only for allowable uses of the capital reserve fund. Any such reimbursements must be accounted for accurately as detailed in “Interfund Reimbursements” found below. Reimbursements ARE NOT accounted for or reported as interfund transfers.
Expenditures are limited to capital improvements, replacement and additions to public works and improvements, for deferred maintenance thereof, and for the purchase or replacement of school buses and
for no other purpose. The purchase of items such as computers or furniture would not be considered capital improvements and therefore would not be allowable uses of the capital reserve fund,
Debt service payments are an allowable use of this fund, but the expenditure must be reported within Fund #32. Moneys may not be transferred to another fund to make the debt service payments.
Capital Projects Fund #39 is utilized within the AFR to report the total of all capital projects fund activity not specifically associated with Funds #31 and #32.
Food Service Fund: Proprietary Fund #51
A Food Service Fund should be utilized to account for any food service activity that involves a user charge.
All user charges must be recognized as revenue within this fund. If a food service management contractor collects the meal charges, these funds must be reported as school revenue and may not be netted against the management fees.
To account for bad debt expenses in the Food Service Fund, code transfers out of the General Fund using 5251-939. And code the transfer into the Food Service Fund using 9310.
Food Service Expenditures: Contracted food service management expenditures should be coded only to objects 571 and 572. The use of any objects in the 300 series for food service management is incorrect.
Higher Education Programs for Secondary Students (Function 1700) This function should only include costs applicable to programs provided to your secondary students. Adult education costs and community college sponsorship costs should be coded to Function 1600.
Interfund Reimbursements are repayments to a fund that initially paid an expense/expenditure from the fund that was ultimately responsible for the expense/expenditure. Reimbursements are not to be confused with interfund transfers, advances, or loans. Examples are as follows:
Example 1: Capital Projects Fund reimburses the General Fund in the same fiscal year
The initial expenditure is recorded in the General Fund. When the Capital Projects Fund reimburses the General Fund, the General Fund expenditure is reduced and the Capital Projects Fund recognizes the expenditure in the appropriate function/object.