May 24, 2011

TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:  New Accounting Codes and Reporting Changes

Recent developments for tracking of funds have prompted the creation of an additional fund code and an additional program intent code.

New Fund Code 287 - Education Jobs Fund

As a result of the availability of funds under the Education Jobs (Ed Jobs) Fund, a new fund code is required for tracking purposes.  This fund code is to be used immediately for any fiscal year 2010-11 activity.  If the district is already using this fund number locally, that activity must be transferred to another locally-defined fund.  The new fund will not be rolled into fund 289 for PEIMS purposes—it will be available for the 2011-12 Mid-Year submission relating to actual financial data for fiscal year 2010-11.

The following description of the fund will be included in the next revision of the Financial Accountability System Resource Guide (Resource Guide).  Until that time, it will be posted as an addendum with version 14 of the Resource Guide.  This fund code is required to be used by both school districts and open-enrollment charter schools.

R  287 Education Jobs Fund

This fund classification is to be used to account, on a project basis, for funds granted to retain, recall, or rehire campus-level employees, and to hire new campus-level employees, in order to provide early childhood, elementary, or secondary educational and related services. (P.L. 111-226, Title I, Education Jobs Fund) (84.410) (U.S. Department of Education).

A frequently-asked-questions document is posted on the TEA web site at:

http://www.tea.state.tx.us/index2.aspx?id=2147500542

You may also refer to previous TEA correspondence dated May 6, 2011 related to the Education Jobs Fund Grant.

New Program Intent Code 32 - Prekindergarten

This program intent code (PIC) is to be used beginning in fiscal year 2011-12 with any fund for which there are specifically identifiable prekindergarten expenditures.  The addition of this PIC will affect the Fall 2011-2012 PEIMS submission (collection 1), due to its effect on the staff payroll records and, to a lesser extent, the budgeted financial data. 

The following description of the PIC will be included in the next revision of the Resource Guide.  Until that time, it will be posted as an addendum with version 14 of the Resource Guide.  This PIC is required to be used by both school districts and open-enrollment charter schools.

R  32 Prekindergarten (Pre-K)

The costs incurred for prekindergarten programs designed to develop skills necessary for success in the regular public school curriculum, including language, mathematics, and social skills.

The types of expenditures to be recorded using this PIC would include payroll costs, professional and contracted services, supplies and materials, other operating expenses, and capital outlay directly related to prekindergarten services.

GASB 54 Reminder

Please be reminded that fiscal year 2010-11 is the year of implementation for GASB 54, which requires a different set of accounts for reporting fund balance.  Please refer to sections 1.2.9 and 1.4.6 of Module 1, Financial Accounting and Reporting, in the Resource Guide for a description of the account codes to be used, along with the required financial statement disclosures.  The complete set of fund balance accounts can be found on the Electronic Submissions website: 

http://www.tea.state.tx.us/index4.aspx?id=3968

GASB 54 applies to school districts, governmental charter holders, and college and university charter holders; it does not apply to 501(c)(3)/non-profit charter holders.

Optional Schedule J-3, Schedule of Optimum Fund Balance

As a result of the Commissioner’s letter dated March 16, 2011, the J-3 Optimum Fund Balance schedule is an optional item for the annual data feed submission.  It is TEA’s intention to avoid penalizing districts for an inability to maintain optimum fund balances due to the projected reduced revenues from the state.  This change is effective for the fiscal year 2010-11 financial audit.  This schedule applies to school districts, governmental charter holders, and college and university charter holders; it does not apply to 501(c)(3)/non-profit charter holders.  The link to the Commissioner’s letter can be found at:

http://ritter.tea.state.tx.us/taa/finaudit031611.html

Information and Assistance

For additional information about these changes, please refer to the TEA’s Resource Guide website at:

http://www.tea.state.tx.us/index4.aspx?id=1222

For questions on these topics, contact the Division of Financial Audits at (512) 463-9095.

Sincerely,

Rita Chase

Director of Financial Audits