SACS Minutes, February 2014, Attachment B

PROPOSED SACS2014 SOFTWARE MODIFICATIONS

System Changes

Windows 7 Compatibility

• The California Department of Education (CDE) needs testers for early preliminary SACS2014 Budget build (this is before and in addition to beta testing). If interested, please send an email to sacsinfo@cde.ca.gov.
• Open Database Connectivity (ODBC) Database Connection string is no longer modifiable.
• Known printing issues. Workaround is to print to Microsoft XPS Document Writer or Adobe Portable Document Format (PDF).

Global Changes

Replace "Revenue Limit" descriptions with “LCFF”

Delete Fund Form

Form 09—Charter Schools Special Revenue Fund (modified accrual basis of accounting)
Discontinue Form 09 for separately reporting charter schools. Effective 2012–13, a separately reporting charter school should report a general fund and not a special revenue fund. This change does not apply to county office of educations (COEs) or districts that use Fund 09 to report their charter schools within their own financial statements. Applies to Budget and Unaudited Actual periods; was already applied to Interim periods in SACS2013ALL software.

Revise Fund Forms

• All Fund Forms—Fund Reconciliation Section.
  
  • Add new Deferred Outflows of Resources Section. Within the new section, add line for new Object 9490, Deferred Outflows of Resources, effective 2013–14, due to GASB 63.
  • Add new Deferred Inflows of Resources Section. Within the new section, add line for new Object 9690, Deferred Inflows of Resources, effective 2013–14, due to GASB 63.
  • Liabilities section:  Modify description of Object 9650 from “Deferred Revenue” to “Unearned Revenue,” effective 2013–14, due to GASB 65.
    
    
• Form 01—Revenue Limit Sources section.
  
  • Remove the following object lines, effective 2013–14:
    
    • Object 8015, Charter School General Purpose Entitlement – State Aid. Object is obsolete due to local control funding formula (LCFF).
    • Object 8092, PERS Reduction Transfer. Object is obsolete due to LCFF.
    • Remove the following detail lines for Object 8091,Revenue Limit Transfers – Current Year, move the resources into the “All Other” Object 8091 line, effective 2013–14:
      • Resource 2200, Continuation Education ADA Transfer. Resource is obsolete due to LCFF.
      • Resource 2430, Community Day Schools Transfer. Resource is obsolete due to LCFF.
      • Resource 6500, Special Education ADA Transfer. CDE expects that this will now be a Contribution (Object 8980) instead of an LCFF Transfer (Object 8091). Due to LCFF.
        
        
• Form 01—Other State Revenue section.
  • Remove the following detail lines for Object 8311, Other State Apportionments – Current Year, and move the resources into the “All Other” Object 8311 line, effective 2013–14:
    • Resource 2430, Community Day School Additional Funding – Current Year. Resource is obsolete due to LCFF.
    • Resources 6355–6360, ROC/P Entitlement – Current Year. Resources are not a part of the former ROC/P entitlement.
    • Resources 7090–7091, Economic Impact Aid. Resources are obsolete due to LCFF.
  • Remove the following detail lines for Object 8319, Other State Apportionments – Prior Years, and move the resources into the “All Other” Object 8319 line, effective 2013–14:
    • Resource 2430, Community Day School Additional Funding – Current Year. Resource is obsolete due to LCFF.
    • Resources 6355–6360, ROC/P Entitlement – Current Year. Resources are not a part of the former ROC/P entitlement.
  • Add detail line for reinstated Resource 7210, American Indian Early Childhood Education/Object 8590, All Other State Revenue, and remove Resource 7210 from the “All Other” Object 8590 line, effective 2013–14.  (Reinstated; formerly included in the flexibility provisions of SBX3 4 [Chapter 12, Statutes of 2009], as amended by SB 70 [Chapter 7, Statutes of 2011], but not made part of LCFF)
    
    
• Form 01—Other Local Revenue section. Unshade the Unrestricted columns in Object 8675, Transportation Fees From Individuals line, effective 2013–14, due to LCFF.

• Forms 01, 09 and 62—Other State Revenue section.
  • Remove the following object lines, effective 2013–14:
    • Object 8434, Class Size Reduction, K–3. Object is obsolete due to LCFF.
    • Object 8425, Year Round Incentive. Object is obsolete due to LCFF.
  • Remove the following detail lines for Object 8311, Other State Apportionments – Current Year, and move the resources into the “All Other” Object 8311 line, effective 2013–14:
    • Resource 7230, Home-to-School Transportation.  Resource is obsolete due to LCFF.
    • Resource 7240, Special Ed Transportation. Resource is obsolete due to LCFF.
  • Remove the following detail lines for Object 8590, All Other State Revenue, and move the resources into the “All Other” Object 8590 line, effective 2013–14:
    • Resource 6200, Class Size Reduction Facilities.
    • Resources 6660, 6670, Drug/Alcohol/Tobacco Funds, for COEs.
    • Resources 6660, 6670, 6680, Drug/Alcohol/Tobacco Funds, for districts.
  • Add detail line for reinstated Resource 7370, Supplementary Programs: Specialized Secondary/Object 8590, All Other State Revenue, and remove Resource 7370 from the “All Other” Object 8590 line, effective 2013–14. (Reinstated; formerly included in the flexibility provisions of SBX3 4 [Chapter 12, Statutes of 2009], as amended by SB 70 [Chapter 7, Statutes of 2011], but not made part of LCFF)
  • Add detail line for Resource 7405, Common Core State Standards Implementation/Object 8590, All Other State Revenue, and remove Resource 7405 from the “All Other” Object 8590 line, effective 2013–14.

• Forms 01, 09, 40, and 62—Other State Revenue section.  Add detail line for Resource 6230, California Clean Energy Job Act/Object 8590, All Other State Revenue, and remove Resource 6230 from the “All Other” Object 8590 line, effective 2013–14.

• Forms 01, 09, 10, 11, 12 , 13, 14, 15, 16 ,17 ,18 ,19, 21, 25, 30, 35, 40, 49, 57, 61, 62, 63, 66, 67, and 73—Employee Benefits section.  Remove Object 3801–3802, PERS Reduction, object line, effective 2013–14.  Objects are obsolete due to LCFF.

• Forms 01, 09, 11, 13, 14, 15, 61, and 62—Contributions section. Remove Object 8997, Transfers of Restricted Balances, effective 2013–14.
  
  
• Forms 01, 17, 20, 21, 40, and 49 – Interfund Transfers Out section. Remove Object 7615, To: Deferred Maintenance Fund, effective 2013–14. The Deferred Maintenance state match requirement is no longer applicable.

• Forms 09 and 62—Revenue Limit Sources section.  Add line for Object 8011, State Aid – Current Year, effective 2013–14, due to LCFF.
  
  
• Forms 11 and 14—Add new LCFF Sources section.  Within the new section, add the following lines, effective 2013–14, due to LCFF.
  
  • Object 8091, LCFF Transfers – Current Year
  • Object 8099 LCFF/Revenue Limit Transfers – Prior Year
    
    
• Form 12—Other State Revenue section. State Preschool (Resources 6055, 6056, 6105, Object 8590) detail line, effective 2013–14:
  • Remove obsolete resources 6055 and 6056, and add them to the All Other State Revenue line, Object 8590, for COEs and districts
  • Remove the State Preschool (Resources 6055, 6056, 6105, Object 8590) detail line, and add resources 6055, 6056, and 6105 to the All Other State Revenue line, Object 8590, for joint power agencies (JPAs)
    
    
• Forms 13 and 61—Revenue Limit Sources section.  Remove the following lines, effective 2013–14, because the Meals for Needy Pupils Add-on is not included in LCFF:
  • Object 8091, All Other RL Transfers – Current Year
  • Object 8099, Revenue Limit Transfers – Prior Year
    
    
• Form 14—Interfund Transfers In section. Remove Object 8915, From: General, Special Reserve, & Building Funds, effective 2013–14. The Deferred Maintenance state match requirement is no longer applicable.
  
  
• Form 52—Uses section.  Add line for Object 7699, All Other Financing Uses, effective 2013–14.

Delete Supplemental Forms

Form CORR—Adults in Correctional Facilities
Discontinue this form effective 2013–14.  Data collected is no longer used by the CDE.  Applies to Unaudited Actual periods.

Form JUV—Juvenile Court and County Community Schools Account
Discontinue this form effective 2013–14, due to LCFF.  Applies to Budget and Unaudited Actual periods; form was already deleted from Interim periods in SACS2013ALL software.  COEs and coe-charters.

Forms RL, RLCC, and RLDC—Revenue Limit Summary
Discontinue these forms effective 2013–14, due to LCFF.  Applies to Budget and Unaudited Actual periods; form was already deleted from Interim periods in SACS2013ALL software.

Form TRAN—Annual Report of Pupil Transportation
Discontinue this form effective 2013–14, due to LCFF.  Applies to Unaudited Actual periods.

Revise Supplemental Forms

Form A/AI—Average Daily Attendance
Revise as needed due to LCFF.

Form CEA/CEB—Cashflow Worksheet
Add to the reductions in Column 4a and Line 13a:  Resource 6230, California Clean Energy Jobs Act; and Resource 6381, Linked Learning Pilot Program.

Form CAT—Schedule for Categoricals
Remove Line 1b, Restricted Balance Transfers (Object 8997), and renumber lines accordingly in the following worksheets:

• State and Local — Categoricals Subject to Deferred Revenues
• State and Local — Categoricals Subject to Restricted Ending Balances

Form GANN—Appropriations Limit Calculations
Revise as needed due to LCFF.

Form MYP/MYPI—Multiyear Projections

• Adjust the dollar amounts used in the Unrestricted/Restricted worksheet, Reserve Standard Percentage Level (Line F3d for COEs only) and Reserve Standard – By Amount (Line F3f for COEs and districts, and Line F7 for JPAs), based on the COLA adjustment made to the Criteria and Standards Review form.
• Unrestricted worksheet only.  Section A, Revenues and Other Financing Sources. 
  Applies to districts only. 
  Remove all the detail lines of Line A.1, LCFF/Revenue Limit Sources, and unlock subsequent years 1 and 2 to allow key entry.  Applies to Budget periods; was already applied to Interim periods in SACS2013ALL software.
• Unrestricted/Restricted worksheet.  Section E, Available Reserves. 
  COEs and districts. 
  Line E.1.e, Negative Restricted Ending Balance.  Modify columns C and E to extract from Restricted worksheet Line D.3.e.2, Unassigned/Unappropriated if amount is negative. If extracted, then no longer allow key entry.
• Unrestricted/Restricted worksheet. Section E, Available Reserves. 
  COEs and districts. 
  Line E.1.e, Negative Restricted Ending Balance. Columns B and D. Eliminate the internal form checks “Cannot be positive; revise” and “Data entry required.”
• Restricted and Unrestricted/Restricted worksheets. Section E, Available Reserves. 
  Applies to COEs only. 
  • Restricted worksheet:  Remove Line E.1.d, Allowable Reserves – JUV/CCS/ROP, and shade Line E.3, Total Available Reserves. Due to LCFF.
  • Unrestricted/Restricted worksheet:  Remove Line E.1.d, Allowable Reserves – JUV/CCS/ROP, and exclude Line E.1.d from the calculation on Line E.3, Total Available Reserves – by Amount.  Due to LCFF.
• Restricted and Unrestricted/Restricted worksheets. Section F, Recommended Reserves.
  COEs and districts. 
  Line F.1.b.2, Special education pass-through funds. Add a new warning internal form check and pop up message to flag if pass-through projections are not entered in columns C and D, and if a No response is selected in Line F.1.a, Do you choose to exclude from the reserve calculation the pass-through funds distributed to SELPA members? As with all other internal form checks, the user can still close the form without fixing the condition. This condition does not have to be fixed to complete an official export.

Form NCMOE—No Child Left Behind Maintenance of Effort

• Section I, Expenditures
  Line B, Less all federal expenditures not allowed for MOE
  Remove obsolete Resource 3355, Special Ed: IDEA LCI Growth, Part B, Sec 611, from exception list.
• Section II, Expenditures
  Remove Line C9, PERS Reduction, due to LCFF.
• Section IV, Education Jobs Fund Expenditures to Meet MOE Requirement
  Remove entire Section IV and (renumber remaining sections) due to expiration of the expenditure period for Education Jobs Fund carryover dollars. Funds were available for obligation through September 30, 2012.

Form SEA—Special Education Revenue Allocations
Section I, Total SELPA Revenues

• Remove Line I.A.3, Federal IDEA, Part B, Local Assistance Grants, and renumber lines accordingly.
• Modify description of Line I.E, Program Specialist/Regionalized Services Apportionment, to “Program Specialist/Regionalized Services for NSS Apportionment.”
• Modify description of Line I.F, Low Incidence Materials and Equipment Apportionment, to “Low Incidence Materials, Services, and Career Technical Education Apportionment.”
• Modify description of Line I.H, NPS/LCI Extraordinary Cost Pool Apportionment, to “Extraordinary Cost Pool for NPS/LCI and NSS Mental Health Services Apportionment.”
• Modify description of Line I.J, Grand Total Apportionment, Taxes, IDEA, and Excess ERAF, to “Grand Total Apportionment, Taxes, and Excess ERAF.”
• Remove Line I.L, NSS (Necessary Small SELPA) Extraordinary Cost Pool for Mental Health Services Apportionment, and renumber lines accordingly.

Revise Criteria and Standards

Form 01CS/01CSI—Criteria and Standards Review —Budget and Interim periods

• Adjusted deficit spending and fund balance levels for COEs, and reserve levels for all local education agencies (LEAs), based on prior year's revenue limit COLA.
• Deficit Spending Criterion 6/8, COE/District/JPA—Budget period only
  Section 6A/8A, Calculating the Deficit Spending Standard Percentage Levels—Modify Section 1, Available Reserve Amounts, by removing the following lines and renumbering lines accordingly:
  • Line 1a, Designated for Economic Uncertainties (Funds 01 and 17, Object9770), due to GASB 54.
  • Line 1b, Undesignated Amounts (Funds 01 and 17, Object 9790), due to GASB 54.
  • Line 2b, Less Special Education Pass-Through Funds (Fund01, Resources 3300–3499 and 6500–6540, Objects 7211–7213 and7221–7223).
• Supplemental Information S6, Long-term Commitments—Budget and Interim periods
  Section S5A, Identification of Long-term Commitments. Add a Total line to sum the total principal balances as of 07/01/2014.
• In September 2013, a Criteria and Standards committee meeting was convened to incorporate changes to various Criteria affected by the enactment of LCFF and local control accountability plan (LCAP). In November 2013, the SBE approved the proposed updates to the Criteria and Standards.
  • Update the Standard language for the following Criteria.  (See CDE Criteria and Standards Web Page [http://www.cde.ca.gov/fg/fi/ss/] for updated language.)
  • LCFF Revenue
  • Salaries and Benefits
  • Facilities Maintenance
• Delete all references to “Juvenile Court/County Community Schools” and “ROC/P,” including footnotes. These programs are now unrestricted and rolled into LCFF.
• Add new Supplemental Information Items S9 and S10.  For Budget periods only. Applies to COEs and districts.
  • S9, LCAP—Confirm that the LEA’s governing board has adopted an LCAP or approved an update to the LCAP effective for the budget year.
  • S10, LCAP Expenditures—Confirm that the budget includes the expenditures to implement the LCAP or annual update to the LCAP.
• Revise the following criteria as needed based on LCFF changes made to Form A:
  • Average Daily Attendance (ADA)
  • ADA to Enrollment
  • LCFF Revenue

Technical Review Checks (TRCs)—Delete

• Delete the following TRCs related to Form RL/RLCC/RLDC, effective 2013–14, due to LCFF. Applies to Budget and Unaudited Actual periods; they are now deleted for all periods and data types.
  • ADA-RL-COMPARISON
  • RL-CALC
  • RL-CALC-C
  • RL-LOCAL-REVENUES
  • RL-PERS-REDUCTION
  • RL-PERS-REDUCTION-C
  • RL-STATE-AID-NET
  • RL-STATE-AID-EPA
  • RL-SUPP-PROVIDE
  • PERS-REDUCTION
    
    
• Delete the following TRCs related to Form JUV, effective 2013–14, due to LCFF. Applies to Budget and Unaudited Actual periods; they are now deleted for all periods and data types.  COEs and coe-charters.
  • JUV-CAP-OUTLAY
  • JUV-CCS-COMPARISON
  • JUV-END-BAL
  • JUV-IMPORT
    
    
• Delete the following TRCs related to Form TRAN, effective 2013–14, due to LCFF.  Applies to Unaudited Actual periods.
  • TRAN-COST-PER-MILE
  • TRAN-COST-PER-PUPIL
  • TRAN-IMPORT
  • TRAN-NO-PUPIL-DATA
  • TRAN-PUPIL-DATA
    
    
• Delete the following TRCs related to Form CORR, effective 2013–14.  Applies to Unaudited Actual periods.
  • CORR-ADA
  • CORR-NO-ADA

Technical Review Checks—Revise

CEFB=FD-EQUITY—Modify to include Deferred Outflows of Resources (objects 9490–9499) and Deferred Inflows of Resources (objects 9690–9699), due to GASB 63.

CHK-FUND09-ACTIVITY (Applies to separately reporting charter schools only)—Modify check to flag activity in Fund 09 data for all objects, for all data types, for separately reporting charter schools. Effective 2012–13, a separately reporting charter school should report a general fund and not a special revenue fund. This change does not apply to COEs or districts that use Fund09 to report their charter schools within their own financial statements.

Revise Reports

Reports CNVRT/ENTRY/GSA/GSNA—Government-Wide Reports
Revise as needed due to GASB 63 and GASB 65.

Report PGM—Program By Resource Report

• Modify description of Object 9650 from “Deferred Revenue” to “Unearned Revenue,” due to GASB 65.
• Add new line for Object 9690, Deferred Outflows of Resources, due to GASB 63.

Reports SEMA/SEMB/SEMAI—Special Education Maintenance of Effort

LEA MOE Calc and SELPA MOE Calc worksheets.  Remove the local-only base year option in Section 3, Part B, Subpart 2.