CorrespondenceAdvisories, bulletins, and letters related primarily to local educational agency accounting and reporting issues.
2017–18 Approved Indirect Cost Rates Letter (Dated 4-Apr-2017)
The California Department of Education (CDE) has reviewed the 2015–16 standardized account code structure (SACS) expenditure data and has finalized the approved indirect cost rates. The rates are for use, as allowable, with 2017–18 federal and state programs.
2016 Edition of the California School Accounting Manual (CSAM) (Dated 11-Mar-2016)
Letter to county and district chief business officials and charter school administrators.Attachment 11-Mar-2016
Summary of Changes to CSAM 2016.
Bid Threshold Adjustment Letter (Dated 14-Dec-2016)
Annual Adjustment to Bid Threshold for Contracts Awarded by School Districts.
Willful Pupil Misconduct Letter (Dated 14-Dec-2016)
Annual Adjustment to Liability Limit of Parent or Guardian for Willful Pupil Misconduct.
New Financial Reporting Requirements for Pensions (Dated 02-Jul-2015)
Letter to county and district chief business officials and charter school administrators regarding Governmental Accounting Standards Board (GASB) Statement 68. The guidance in this letter supersedes the guidance in Management Advisory 96-03 from 1996 relating to accounting for on-behalf pension payments made by the state.
Attachment Revised 09-Feb-2017 (EXE) Spreadsheet application to calculate and create the journal entry necessary for local educational agencies to recognize the state’s on-behalf contribution to CalSTRS in their funds. Use of this application is optional.Download Instructions: Using the preceding link, a self-extracting zipped file named "strsonbehalf.exe" must be downloaded and saved to your "C:" drive. Once done, using your Windows Explorer, double click on the "strsonbehalf.exe" file on your "C:" drive. The file will unzip and put the state teacher retirement system (STRS) on-behalf analysis spreadsheet application in excel format (XLSM), into a default folder named C:\GASB68STRSOnBehalf.
Elimination of the Dual Budget Adoption Process (Dated 03-Oct-2014)
Letter to county superintendents and chief business officials.
Accounting for District Payments to County Offices of Education for District-Funded Students in County-Operated Programs (Dated 26-Jun-2014)
This guidance was sent via e-mail on June 26, 2014, to Standardized Account Code Structure (SACS) Forum participants and the ESSCO, COFS, and CDEfisc e-mail distribution lists.
Prescribed Format For 2014–15 Proposed Budgets in the Standardized Account Code Structure (Dated 25-Mar-2014; Revised 28-Mar-2014)
Letter to county and district superintendents, county and district chief business officials, and charter school administrators.
Revised Criteria and Standards for Fiscal Solvency for Budget and Interim Financial Reports Effective 2014–15 (Dated
This letter announces revisions to the Criteria and Standards adopted by the State Board November 2013, effective fiscal year 2014–15.Attachment A 23-Dec-2013
Summary of Revisions to Criteria and Standards for Fiscal Solvency Effective 2014–15.
Approved Substitute System for Time Accounting for Federal Programs (Dated 09-Apr-2013)
This letter provides a new substitute system for time accounting for federal programs for use by all local educational agencies (LEAs) approved by the United States Department of Education (USDE). This new substitute system is in addition to the substitute system previously approved for California LEAs in 1998.Attachment A (DOC; Dated 09-Apr-2013)
Sample Periodic Certification for an Employee Working on Multiple Cost Objectives on a Predetermined Schedule.Attachment B 09-Apr-2013
Sample Employee Predetermined Schedule.
Adult Education Fund and Deferred Maintenance Fund (Dated 19-Jul-2011)
This letter provides updated guidance concerning the Adult Education Fund and the Deferred Maintenance Fund and how local educational agencies (LEAs) may continue to use these funds in conformity with generally accepted accounting principles (GAAP).
New Fund for Special Education Local Plan Area Pass-Through Revenues (Dated 03-Mar-2011)
This letter describes the new special revenue fund for use by the Administrative Unit of a Special Education Local Plan Area to account for special education pass-through revenues.Attachment A 03-Mar-2011
Special Education Pass-through Fund Accounting Examples.
New Requirements for Reporting Fund Balance in Governmental Funds (DOC; Dated 07-Jan-2011)
This letter discusses key provisions of Governmental Accounting Standards Board (GASB) Statement 54, identifies implementation issues for local educational agencies (LEAs), and provides guidance on accounting for the new fund balance classifications in the standardized account code structure (SACS).
Attachment A 07-Jan-2011
Crosswalk of Previous Fund Balance Classifications to New Classifications.
Attachment B 07-Jan-2011
Ending Fund Balance Definitions.
Attachment C (XLS; Dated 07-Jan-2011)
Component of Ending Fund Balance Before and After.
Attachment D 07-Jan-2011
Sample Language for Required Note Disclosure on Minimum Fund Balance Policy.
Indirect Cost Plan for Local Educational Agencies for Rates Approved for Use in 2011–12 (Dated 09-Jul-2010)
Letter on Indirect Cost Plan for Local Educational Agencies.
Accounting for Supplemental Revenue Augmentation Funds (SRAF) Letter (Dated 26-Mar-2010)
Guidance to county offices of education (COEs) on accounting for SRAF transactions.
Interest Earned on Federal Funds Letters
Letters issued by the Audits and Investigations Division on federal administrative requirements for remitting interest earned on advances of federal program funds.
Please refer to the Nutrition Services Division Management Bulletin for information on Interest Earned on the Cafeteria Account/Fund.
Fiscal Issues Relating to Budget Reductions and Flexibility Provisions (DOC; Dated 17-Apr-2009)
This letter expands upon guidance in the California Department of Education’s (CDE) letter of February 25, 2009, regarding the CDE’s understanding and implementation of education trailer bill Senate Bill 4 of the 2009–10 Third Extraordinary Session (SBX3 4) (Chapter 12, Statutes of 2009).
Attachment A 17-Apr-2009
Attachment B 17-Apr-2009
2008–09 Budget Act Items Subject to Categorical Flexibility.
Resources Subject to Categorical Flexibility (Updated 05-Aug-2009)
SACS resource codes for budget items subject to categorical flexibility and their status.
Resources Subject to Restricted Balance Transfers (Updated 05-Aug-2009)
SACS resource codes for budget items eligible for June 30, 2008 restricted ending balance transfers and their status.
Retirement Incentive Program Approval (Dated 26-Jul-2007)
Guidelines for required California Department of Education (CDE) review of "golden handshake" offerings.
New Financial Reporting Requirements for Postemployment Benefits Other Than Pensions (DOC; Dated 26-Feb-2007)
Key provisions of GASB 45 and GASB 43 plus implications for administration of state and federal categorical programs and changes to accounting for OPEB in the standardized account code structure.
Attachment A | DOC (Dated 26-Feb-2007)
Definitions of Key Terms.
Attachment B (DOC; Dated 26-Feb-2007)
Illustrations of Accounting for Postemployment Benefits Other Than Pensions (OPEB).
Attachment C | DOC (Dated 26-Feb-2007)
Calculation of Annual OPEB Cost.
Attachment D | DOC (Dated 26-Feb-2007)
Attributing OPEB Contributions to The Components of the Annual Required Contribution (ARC).
Principal Apportionment Accounting Guidance (Dated 16-Feb-2007)
Changes to accounting guidance for certain programs funded through the principal apportionment process.
Attachment A 16-Feb-2007
Principal Apportionment Coding Changes for Fiscal Year 2007–08.
Indirect Cost and Accounting Changes Effective Beginning 2007–08 (Dated 15-Dec-2006)
This letter is a follow up to our letter dated November 7, 2005, titled "Indirect Cost Plan for Local Educational Agencies."
Consolidation of No Child Left Behind Funds for Administration (Dated 10-Mar-2006)
Accounting Guidance Relating to Consolidating Funds for Administration.
Illustrative Accounting Entries for Consolidation of Administrative Funds.
California's Indirect Cost Plan (Dated 07-Nov-2005)
Letter on Indirect Cost Plan for Local Educational Agencies.
Charter School Financial Reporting for 2004–05 (Dated 16-Sep-2005)
Reminder of the submission requirements for charter schools for the 2004–05 unaudited actual financial data reporting.
Charter School Financial Reporting for 2003–04 and Subsequent Fiscal Years (Dated 05-Apr-2004)
Reporting Requirements and allowable formats for charter schools.
Fiscal Issues Resulting from Budget Cuts and Appropriation Deferrals (Dated 15-Apr-2003)
How to budget, account for, and report the resulting transactions in 2002–03 and 2003–04.
Observations on the Financial Accountability
and Reporting Process (Dated 05-Mar-2001)
Insight about problem areas in financial reporting.