Issues Regarding ESSER Fund 15 Cash Requests vs Budgets
Explore challenges faced by new school officials inheriting ESSER budgets, the importance of budget amendments for cash requests, and the expedited approval process for cash requests this year. Learn about the significance of timely budget adjustments to ensure financial compliance.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Special issues regarding fund 15 ESSER cash requests vs budgets Fiscal year end accounting
ESSER Grants budgets vs actual expenditures I visit a lot of schools when new business officials need training or there is no business official at all. Many times, the districts also have new Superintendents. Many times both the new business official and Superintendent inherited the ESSER budgets. Sometimes the new administration Doesn t know what was in the ESSER budget Knows but has different goals for that money
ESSER Cash requests havent been made New business officials, for various reasons, created cash requests for dollars spent. Their fund 15 is in a negative cash position. We go to create cash requests ..BUT .. The District s actual expenditures do not match what is budgeted in that particular ESSER grant. The expenditures are legitimate ESSER expenditures, just not budgeted expenditures. A Budget amendment must be done before the cash request can be made. If not, they will not be approved.
If you are in this situation Get your budgets amendments in asap. Only your authorized representative can submit the amendment. The OPI is understaffed just like schools so amendments are taking some time to get approved, again, get them in as soon as you can. Once they are approved, get after your cash requests.
Cash requests have had faster approval time this year. Helena Elementary Title I cash request approval history.
Fiscal Year End Grant Coding issues Do you remember this slide from yesterday?
Your goal, should you accept, is to never have an amount in the difference column like below.
Federal and State Grants are Expenditure Driven grants. Expenditure driven means that, grantees are supposed to code revenue to match expenditures in the fiscal year in question .even if the cash wasn t received in that fiscal year.
If expenditures exceed revenues on June 30 A journal entry is used to increase revenue to match expenditures with a corresponding balance sheet entry to due from other governments which is an asset, like cash.
Pretend your Title I expenditures exceeded revenue on June 30 Debit balance sheet account 180 Due from other governments Credit proper Revenue account 4200 (Title I) When the monies are received in August: Debit balance sheet account 101 Cash Credit Balance sheet account 180 Due from other Governments
Pretend your Title I expenditures exceeded revenue on June 30 by $5,000 D 115 - 180 $5,000 C 115 - 4200 $5,000 When the monies are received in August: D 115 101 $5,000 C 115 - 180 $5,000 The different softwares handle this differently, contact them for advice.
If Revenues exceed Expenditures on June 30. How did that happen??? A journal entry is used to reduce the revenue to match the expenditures. A corresponding balance sheet entry that matches the reduction is made to Deferred Inflow
Pretend your Title I revenues exceeded June 30 expenditures. Debit (reduce) the revenue 4200 Credit (increase) Deferred Inflow Balance sheet 680 On July 1st, reverse the entries: Debit (reduce) Deferred Inflow, Balance sheet 680 Credit (increase the revenue) 4200 The assumption is that you will spend the amount you deferred and recoded as revenue in the new fiscal year.
Pretend your Title I revenues exceeded June 30 expenditures by $2,500 On June 30th D 115 4200 $2,500 C 115 680 $2,500 On July 1st, reverse the entries: D 115 680 $2,500 C 115 4200 $2,500
This district received an audit finding that recognized both situations just discussed
A district with due from other governments on their trustees report balance sheet
