Commonwealth Payments & Reporting Process

Commonwealth Payments &

Reporting Process

Presented by:

Anita Butcher Jonathan HollenbachStaff Accountant Staff AccountantSchool Finance Division School Finance DivisionLabor, Education and Community Services Labor, Education and Community ServicesComptroller’s Office Comptroller’s Office

Voice: (717) 783-9010 Voice: (717) 783-9008 Facsimile: (717) 787-3593 Facsimile: (717) 787-3593

E-mail: [email protected] E-mail: [email protected]

PASBO – 51st Annual Conference March 2006

What services are provided by the Labor, Education and Community Services (LECS) Comptroller’s

Office?

• The LECS Comptroller’s Office provides accounting and audit services to three agencies.– The Department of Education– The Department of Labor and Industry– The Department of Community and Economic Development

• The LECS Comptroller’s Office performs a dual function in carrying out their responsibilities and duties.

– First, on behalf of the Secretary of the Budget, they are to ensure that appropriation commitment and spending does not exceed the Governor’s established budget, and that all funds administered by agencies are expended and accounted for properly.

– Second, they are the chief financial accounting officers of the agencies served. As such, they are a valuable resource to agency heads and agency staff concerning matters relating to financial and service contracting policies and procedures.

– Third, Section 1501 of the Fiscal Code assigns explicit authority to LECS Comptroller’s Office for approving and disapproving requisitions for payments drawn on the Treasury Department.

What Divisions within LECS process payments to School Districts?

– Federal Subsidies Division

– Document Review and Control

– School Finance Division

The Division of School Finance is part of what

organization?

The Office of the Budget,

Comptroller Operations

Is the Office of the Budget

a division of the Department of

Education?• No, it is a separate agency. The Labor, Education and Community Services (LECS) Comptroller’s Office is separate for the purpose of providing checks and balances within the state government.

• School Finance is just a facet of the Comptroller’s Office, that also includes Federal Accounting, an Audit Division, Special Accounting, General Accounting, Document Review and Control, Administration, and Labor & Industry Federal Accounting.

Are all State Subsidy payments processed

by the School Finance Division?

• No!

• Federal Accounting processes Project payments and Food Service Reimbursement Claims.

• Document Review and Control processes State Subsidy Payments and Early Intervention.

Where can I go to find information on payments?

• Through the Financial Accounting Information (FAI) system

• User registration request via ePDE Web Portal

• ePDE help desk (717) 783-6788.• Penn-Link notifications of payments, as

well as, deductions.• Yearly document packet sent in June

What information can I obtain from FAI?

• Project Information

• Quarterly Reconciliation of Cash on Hand

• Payment Detail Information (10 year history)

• Audit Confirmation Reports

• Account Coding for Payments

What information can I obtain from the LECS Comptroller’s Office

Website?

The LECS Website Address is:www.pde.state.pa.us/School_Acct

• Forms, Instructions and Procedures• Payment Schedules• Bank Deposit Change Forms• Access Services to the ePDE Web Portal • Accounting Guidance• Annual Financial Report• Manual of Accounting• Tuition Rates

It is our goal to have you find the content of our webpage informative and easy to navigate. Any suggestions you may have will be gladly accepted at

[email protected]

mailto:[email protected]

What is a Unipay?

• A Unipay is an accumulation of School Finance payments all processed and transferred at the same time in a given month.

• The Unipay is paid on the last Thursday of each month.

If this day happens to be a holiday, the payment will be transferred on the previous day.

• The June 1st Unipay will pay on June 1st, or the first business day preceding the 1st.

What programs are processed by the

School Finance Division that are NOT

included with the Unipay?• Social Security payments are paid on the

first Thursday of each month.

• School Employees’ Retirement payments are paid quarterly, around the middle of the month.(September, December, March, and June).

• I.U. Nonpublic Services (Aug 1st, Oct 1st, Feb 1st)

Month Treasury Payment Date

January - Unipay 01/26/2006February – Non-Public 02/01/2006

February – Unipay 02/23/2006March – Unipay 03/30/2006

April – Unipay 04/27/2006May – Unipay 05/25/2006

June 1st – Unipay 06/01/2006June – Unipay 06/29/2006July – Unipay 07/27/2006

August – Non-Public 08/01/2006August – Unipay 08/31/2006

September – Unipay 09/28/2006October – Non-Public 9/29/2006

October – Unipay 10/26/2006November – Unipay 11/30/2006December – Unipay 12/28/2006

2006 Unipay Schedule

2006 Social Security Schedule


January 01/05/2006February 02/02/2006

March 03/02/2006April 04/06/2006May 05/04/2006June 06/01/2006July 07/06/2006

August 08/03/2006September 09/07/2006

October 10/05/2006November 11/02/2006December 12/07/2006

2006 Retirement Schedule


March 03/16/2006

June 06/16/2006

September 09/18/2006

December 12/18/2006

What payments do the School Finance Division process, and when can LEA’s expect

Major State Subsidy Payments?Programs School Code Payment

DateApproved Private Schools/ PA Charter Schools

1376.1 Monthly

Authority Rental & Sinking Funds

2574 and 2575 Upon Application

Basic Education Funding 2502.xx Aug, Oct, Dec, Feb, Apr, June 1st

Reimbursement for Charter School Expenses

2591.1 Aug, Oct, Dec,Feb, Apr, June1st

PA Accountability Grants

2599.2 July

Drivers Education 2504.1 Upon Application

Education of Indigent Children

2502.2/2509.2 Upon Application

What payments do the School Finance Division process, and when can LEA’s expect major

state subsidy payments? (Continued)

Program School Code

Payment Date

Homebound Instruction 2510.1 JuneIncarcerated Education 1306.2(c) Oct, Mar and

JuneIU Nonpublic Services 972.1A(d) Aug 1st, Oct 1st,

Feb 1st

IU Operating 968 July and January

IU Special Education 2509.1 Aug, Nov and June

IU Transportation 2509.1 Aug, Jan and June



Program School Code

Payment Date

Licensed Practical Nursing

2507 Sept, Dec, Mar and June

Nonpublic Schools Transportation

2509.3 December & June

Payments in Lieu of Taxes

604 April

Private Residential Rehabilitative Institutions

964.1 Aug (adv), Bal due pd upon final audit

School Improvement Grants

1709B Upon Application

School Employee’s Social Security

24 PA C.S. 8329

Monthly



Program School Code

Payment Date

School Employees’ Retirement

24 PA C.S. 8535

Quarterly

Education Assistance Program

1512-C Upon Application

Special Education 2509.xx Jul, Sept, Nov, Jan, Mar & June

Transportation 2543 Aug, (Sept, Oct, Nov – based upon receipt of prior yr reports), Dec, March and June



Programs School Code Payment Date

Tuition for Orphans and Children Placed in Private Homes

1305 / 1306 June

Vocational Education 2517c Aug, Oct, Dec, Feb, April and June 1st

What is the Basic Education Funding Payment Schedule?

Payment Schedule

August Estimated current year gross allocation minus estimated deductions*times 15 percent.

October Same as August

December Estimated current year gross allocation minus estimated deductions*times 15 percent minus IU Operating

deduction.

February Same as August and October

April Same as August, October and February

June 1 Basic Education Funding Formula by State Law.

Total gross allocation minus deductions (if applicable) equals adjusted gross allocation. This amount minus first five (5) payments minus deductions (current year deductions and prior year adjustments) equals the final payment.

*Estimated deductions – 110 percent of prior year IU Transportation, IU Institutionalized Children, PRRI, Approved Private Schools, and Scranton & Scotland school tuition deductions (exception: change in law affecting deduction calculations)

Monthly Payment Cycle

• JulyApproved Private SchoolsAuthority Rental and Sinking FundsCommunity CollegesIntermediate Unit OperatingSchool Employees’ Social SecuritySpecial EducationPA Accountability Grant

• AugustApproved Private SchoolsAuthority Rentals and Sinking FundsBasic Education FundingCommunity CollegesIntermediate Unit TransportationIntermediate Unit Special EducationNonpublic School ServicesPrivate Residential Rehabilitative InstitutesReimbursement for Charter School ExpensesSchool Employees’ Social SecuritySchool District TransportationVocational Education

• SeptemberApproved Private SchoolsAuthority Rentals and Sinking FundsLicensed Practical NursingPA Charter SchoolsPrivate Residential Rehabilitative InstitutesPupil TransportationSchool Employees’ Social SecuritySchool Employees’ RetirementSpecial Education

• OctoberApproved Private SchoolsAuthority Rentals and Sinking FundsBasic Education FundingIncarcerated EducationNonpublic School ServicesPA Charter SchoolsPupil TransportationSchool Employees’ Social SecuritySchool District TransportationVocational EducationReimbursement for Charter School Expenses


• NovemberApproved Private SchoolsAuthority Rentals and Sinking FundsIntermediate Unit Special EducationPA Charter SchoolsPupil TransportationSchool Employees’ Social SecuritySpecial Education

• DecemberApproved Private SchoolsAuthority Rentals and Sinking FundsBasic Education FundingCommunity CollegesEducation Assistance ProgramImprovement GrantsIncarcerated EducationLicensed Practical NursingPupil & Nonpublic TransportationSchool Employees’ Social SecuritySchool Employees’ RetirementSchool District TransportationVocational Education

• JanuaryApproved Private SchoolsAuthority Rentals and Sinking FundsIntermediate Unit OperatingIntermediate Unit TransportationPA Charter SchoolsSchool Employees’ Social SecuritySpecial Education

• FebruaryApproved Private SchoolsAuthority Rentals and Sinking FundsBasic Education FundingPA Charter SchoolsNonpublic School ServicesPrivate Residential Rehabilitative InstituteReimbursement for Charter School Expenses

• December Reimbursement for Charter School Expenses PA Charter Schools


• MarchApproved Private SchoolAuthority Rentals and Sinking Funds

Community CollegesEducation Assistance ProgramLicensed Practical NursingSchool Employees’ Social SecuritySchool Employees’ RetirementPupil TransportationSpecial EducationVocational Education(Adult & Travel)Reimbursement for Charter School ExpensesPA Charter Schools

• MayApproved Private SchoolsAuthority Rentals and Sinking FundsEducation Assistance ProgramIntermediate Unit TransportationPA Charter SchoolsSchool Employees’ Social Security

• June 1st

Basic Education FundingIntermediate Unit Special EducationVocational EducationReimbursement for Charter School Expenses

• February School Employees’ Social Security

Vocational Education


Incarcerated Education

• April Approved Private Schools

Authority Rentals and Sinking Funds

Basic Education Funding


PA Charter Schools

Payment in Lieu of Taxes

Reimbursement for Charter School Expenses

School Employees’ Social Security

Vocational Education


• JuneApproved Private SchoolsAudit Adjustments/Subsidy RevisionsAuthority Rentals and Sinking FundsCommunity CollegesPA Charter SchoolsDriver’s EducationExtraordinary Special Education ContingencyHomebound EducationSchool Improvement GrantsLicensed Practical NursingPayment in Lieu of TaxesPublic and Nonpublic TransportationSchool Employees’ Social SecuritySchool Employees’ RetirementSchool District Special EducationSchool District TransportationTuition for Orphans and Children Placed in Private Homes

I have received the funds,

now how should I record them?

You will receive a payment letter and/or deduction letter via PennLink roughly one week before each payment. It will include instructions on the correct revenue codes to use. It is important that you SAVE THESE LETTERS

for audit purposes.

The following page lists common Revenue Codes and Program Area Codes. Program Area Codes can also be

found listed with each payment on the FAI system.

REVENUE & PROGRAM CODES 2005-2006 FISCAL YEAR

REVENUE PROGRAM REVENUE PROGRAM DESCRIPTION CODE CODE DESCRIPTION CODE CODE

REIMBURSMENT OF CS 7140 793 ACT 30 PRRI 7299 595ACCOUNTABILITY GRANTS 7501 547 OOS SP ED REIMB (APS) 7271 599COMM COLLEGE 530 APPR PRIV SCH 596TUITION TRANSFER 6944 531 APPR PRIV SCH ADJ 6991 996INCARCERATED ED 6944 532 HOMEBOUND 7210 605AID DISTRESSED SD 7110 533 HOMEBOUND ADJ 7210 606INCARCERATED REV 6944 534 HOMEBOUND BAL DUE 7210 607BASIC ED FUNDING 7110 535 ED INDIGENT CH 7160 615BAS ED FUND BAL DUE 7110 539 IU SEC 1306 7160 623REPAYMENT OF LOAN 541 SEC 1305 & 1306 7160 624BASIC ADJ 7110 941 SEC 1305 & 1306 BAL 7160 626ACT 30 PRRI 7299 536 SEC 1305 & 1306 ADJ 7160 924PRRI DEDUCT ADJ 6991 944 IN LIEU OF TAXES 6114 625SECTION 2564 (TUIT DUE) 6944 537 IMPROVEMENT GRANT 7170 637IU OPERATING 7120 538 TECHNOLOGY NP SCHS 7900 640REV TUITION DED 6991 945 NONPUBLIC TRANSPORTATION 7310 675APPR PRIV SCH ADJ 6991 946 NP TRANSP BAL DUE 7310 676PA CHARTER SCH 544 NP TRANSP ADJ 7310 975PA CHARTER SCH ADJ 6991 545 TECH INITIATIVE (YSYM) 7599 794CS TRANSITIONAL7140 791 IU OPERATING 7120 690ACT 89 NP 7700 565 PERFORMANCE INCENTIVES 7150 692RENTAL SUBSIDY 7320 575 PHILA SCHOOL DIST 7599 666IU TRANSPORTATION 7310 580 RETIREMENT 7820 726SD TRANSPORTATION 7310 581 SOCIAL SECURITY 7810 725SD TRANSP BAL DUE 7310 582 REIMB OF ADDT BASIC 7340 540SD TRANSP ADJ 7310 981 VOCATIONAL ED 7220 751PA CHARTER SCH 543 VOCATIONAL ED ADJ 7220 951APPROVED PRIVATE SCH 546 TRAVEL VOC ED 7220 754SP ED CORDERO 7271 585 LPN PROGRAM 7220 755IU SP ED EXTRAORD 7271 586 ADULT VOC ED 7220 756IU INSTITUTION CH 7271 589 DRIVER ED 7240 775IU SP ED ADJ 7271 990 EDUCATION ASSISTANCE 7291 771SD SPECIAL ED 7271 591 EDUCATION ASSISTANCE 7291 770TUITION TRANSFER 6944 592 DISTRESSED SD 7110 780SD SPECIAL ED ADJ 7271 991 DISTRESSED SD ASST 7110 781PRRI SPECIAL ED ADJ 7299 994 EMPOWERMENT SD 7170 782SD SP ED EXTRAORD 7271 593 TEMP SPEC AID 7299 802IU SP ED CORE SERV 7271 594 APPR PRIV S AUDIT 998SP ED REV TUIT DED 6991 947 APPR PRIV S AUDIT 795SP ED WARDS OF STATE 7271 598

DEDUCTION DESCRIPTIONS AND CODES

DRIVER'S ED ADJUSTMENT PRIOR YEAR 5130 880 PRRI - REVISION 5130 880DRIVER'S ED CURRENT DEDUCTION 7240 RECOVERY CURRENT YEAR ADVANCE OF BASIC ED 7110BASIC EDUCATION REVISION 5130 880 RENTAL CURRENT YEAR DEDUCTION 7320BASIC EDUCATION CURRENT YR DEDUCTION 7110 RENTAL - REVISION OF PRIOR YEAR 5130 880TEACHER CERTIFICATION FORFEITURE CALC 5130 880 RETIREMENT 0000 230HOMEBOUND EDUCATION REVISION 5130 880 SCOTLAND SCHOOL CURRENT YEAR DEDUCTION 1100 569INCARCERATED EDUCATION 1441 561 SCOTLAND SCHOOL PRIOR YEAR REVISION 5130 880INCARCERATED EDUCATION REVISION 1441 561 SCRANTON SCHOOL FOR THE DEAF CURRENT YEAR 1290 569IU INSTITUTIONALIZED CHILDREN 1290 594 SCRANTON SCHOOL DEAF REVISION PRIOR YEAR 5130 880IU INSTITUTIONALIZED CH REVISION PRIOR YEAR 5130 880 SD SPECIAL ED - REVISION PRIOR YEAR 5130 880IU OPERATING 2900 595 SD SPECIAL ED REVISION CURRENT YEAR 7270IU OPERATING - CURRENT REVISION 2900 595 SD TRANSPORTATION REVISION CURRENT YEAR 7310IU SPECIAL CLASS 1290 594 SD TRANSP REVISION PRIOR YEAR 5130 880IU SPECIAL CLASS - REVISION 5130 880 TUITION TRANSFER - CHARTER SCHOOL 1000 562IU TRANSPORTATION 2700 516 TUITION TO OTHER LEAS 1000 561TRANSPORTATION - CURRENT YEAR REVISION 7310 VOCATIONAL EDUCATION DEDUCTS CURRENT 7220TRANSPORTATION - REVISION PRIOR YEAR 5130 880 VOCATIONAL EDUCATION - REVISION PRIOR YR 5130 880PRACTICAL NURSING - REVISION PRIOR YEAR 5130 880 1305/1306 - REVISION 5130 880MIGRANT CURRENT YEAR DEDUCTION 7250 SECTION 2564 DEDUCTION 1290 594

MONIES HELD FOR DELIQUENT PDE FORMS 2390 820

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Commonwealth Payments & Reporting Process