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PUBLIC SCHOOLS

Bookkeeping Plus offers public school accounting and consulting, including financial statements, bookkeeping, budgeting, grant management, payroll, and audit preparation.  Services also include SBOA regulatory compliance in fields such as internal control and extra-curricular accounting.

BOOKKEEPING

Bookkeeping Plus can provide accounting services for public schools at every level up to CFO (permanently or temporarily), leaving school staff free to focus on delivering a quality education to its students. 

TRACKING

  • Assist with tracking of the Free and Reduced (F&R) Lunch program

  • For F&R, file the monthly reports necessary to receive the state and federal funds

  • Track grant monies

  • Assist with tracking of fees charged to students

EXPENSES & ACCOUNTS PAYABLE

PURCHASING

  • Code invoices to proper funds and chart of accounts

  • Enter invoices from vendors and suppliers

  • Reconcile invoices to statements

  • Pay monthly recurring invoices

  • Maintain prepaid-expense schedules

  • Post monthly expense accrual entries

  • Make payments to vendors (check writing)

  • Track A/P including aging

  • Set up purchase order system in the software program

  • Prepare and maintain purchase orders

  • Match invoices to POs

REVENUES

OTHER FUNCTIONS

  • Enter deposits into accounting system

  • Track receipt of operating funds and grant monies

  • Order forms as needed

  • Set up filing system

  • Set up processes and procedures for SBOA compliance

FINANCIAL STATEMENTS & REPORTS

For public schools, BPI prepares the financial statements (Balance Sheet, P&L) and generates the required reports for SBOA or others.

CASH FLOW MANAGEMENT

A particular challenge for public schools is managing their cash flow. Bookkeeping Plus works with the client to address this issue, as part of our function of providing professional advice. There are a number of services we can provide for our clients.

  • Provide reports such as Statement of Cash Flows

  • Work with client to project cash needs and manage bank account balances

  • Prepare a report of “cash flow projected against adopted budget”

FINANCIAL STATEMENTS

RECONCILIATIONS

  • Prepare accrual and/or cash basis statements

  • Prepare statements monthly, quarterly

  • Reports include Balance Sheet, Profit and Loss, Budget to Actual, Previous Year Comparison

  • Provide information to regulators or CPAs upon client request

  • Bank and credit card accounts

  • Prove all balance sheet accounts monthly

  • Review profit-and-loss accounts monthly for accuracy

  • Re-class to accounts or grants as requested or needed

FINANCIAL REPORTS

  • Periodic financial statements and reports as detailed above

  • Reports for the school’s board of directors

  • Information for the third-party Tax Preparer

  • Information for auditors

  • Custom reports as needed

REGULATORY REPORTS

  • Form 369, Fixed Assets

  • Form 100R, Employee List

  • County Treasurer Report

  • Form 9, Biannual Report

  • Annual financial report

  • Maintenance of Effort (MOE) calculations

  • Division of Local Government Finance (DLGF) budget

  • Other reports to regulatory entities or authorizers as requested

BUDGETING

Putting together a realistic, workable budget is probably one of a public school’s most important financial responsibilities, and one of BPI’s major services to its clients.

CREATING THE BUDGET

A well-crafted budget is almost a work of art in a field otherwise dominated by numbers and charts.  Public schools in Indiana are different than other types of entities in that applicable state law and rules from the Indiana DLGF, State Board of Accounts (SBOA), or others must be successfully addressed in any budget.

Properly estimating revenue and expenditures starts with identifying revenue sources and estimating the dollar amounts. Next, you need a broad knowledge of the different types of expenses to expect. In this regard, you must be able to distinguish between fixed and variable expenses, and the extent to which the latter is actually subject to modification efforts.

Bookkeeping Plus works to help school management implement strategies for keeping operating expenses under control, and to recognize in which areas they have the flexibility to use managerial discretion.

OPERATING WITHIN BUDGET GUIDELINES

Throughout the year, BPI assists the school in staying within the budget guidelines, and provides Budget-to-Actual reports. We also work with the client to project cash needs and manage bank account balances. In regard to cash flow, sometimes timing is everything, and is often the hardest to affect. That is where BPI’s experience makes a difference.

PAYROLL & RETIREMENT

BPI can process payroll for public schools in conjunction with their third-party payroll service, and generate the necessary reconciliations and reports.

PAYROLL PROCESSING

BPI can prepare and input the payroll information to be processed by a third-party payroll company. This includes calculating the deductions for benefits such as health insurance and life insurance, as well as retirement contributions by employer and employee. 

We then make the payroll entries directly into the systems of the third-party payroll providers, and subsequently prepare the desired reports. After the payroll is processed by the payroll company, we input the payroll into the client's accounting software by department and grant allocation.

Our service includes tracking teacher contracts, which involves taking the total number of working days and converting it to an annual payroll calendar so that the teacher is paid throughout the year. If the teacher’s job is terminated, we prorate it accordingly.

We also prepare the monthly benefit reconciliations for each deduction or benefit category.

INPRS RETIREMENT SAVINGS PLANS

The Indiana Public Retirement System (INPRS) provides a retirement savings plan for certified teachers at public schools. The Teachers’ Retirement Fund (TRF) allows teachers or their employing schools, or both, to contribute to the plan. There is also a fund for non-teacher employees of schools (i.e. administrators and staff) called the Public Employees’ Retirement Fund (PERF).

As with all such plans, there are specific requirements and prohibitions, and the procedures for paycheck deductions and payroll liability payments can be difficult to understand and implement. BPI has a payroll processing department dedicated to handling PERF and TRF payroll matters. We determine what rules and issues apply, make the necessary calculations, enter the paycheck deductions (contributions by employee), prepare the employer contributions, and send contribution funds to the plan.

We also prepare and send the various regular and annual reports required by PERF/TRF. Accuracy and timeliness are key, and BPI’s reputation for being able to successfully navigate the PERF/TRF maze is unparalleled.

403(b) RETIREMENT SAVINGS PLANS

A 403(b) is a retirement savings plan for which the employees of nonprofit organizations are eligible, including schools. Conceptually, it is similar to a 401(k) in that, generally speaking, salary is deferred into the plan before income tax is paid, grows on a tax-deferred basis, and is taxed upon withdrawal.

A 403(b) plan may be used as an alternative to an INPRS plan, in which the school matches the employee’s contribution. Another option is for an employee who is participating in INPRS to make additional contributions to a 403(b) plan, if the school has elected to have such a plan.

Obviously, the rules regarding eligibility, deductions, matching, and contribution caps get complicated in a hurry. Fortunately, BPI has many years of experience in making the necessary calculations, and ensuring that paycheck processing is accurate.

BPI also performs regular 403(b) reconciliations, and prepares the annual census report required by third-party administrators (TPAs) of 403(b) plans.

Besides 403(b), BPI has experience with many other retirement plans as well.

GRANT MANAGEMENT & REPORTS

Grants can be an important revenue source for public schools, sometimes difficult to allocate and report accurately. BPI has years of experience to offer in this area. Regarding federal and state grants, expenditures must be allocated to the proper source of grant revenue, and the accounting system must be set up and maintained to accurately reflect sources and uses of grant revenue.

SOURCES

Federal sources usually comprise a large portion of grant monies. These include such familiar federal programs as Title I, Title II, Title V, Textbook Reimbursement, and Free and Reduced Lunch program.

To a large extent, the Indiana State Department of Education (DOE) administers the federal funding programs. But it also disburses state funds established by law, and promulgates the formulas used to determine allocation of funds. BPI is very familiar with these complicated formulas and how to account for them properly.

BPI sets up the accounting system for its clients and helps them understand for what uses and purposes the grant funds may—or may not—be utilized.

REIMBURSEMENTS

Interestingly, most grant monies are received by the school as a reimbursement after the expenditure has been made. In another words, you must spend the grant money before you can ask for it. The tracking of these transactions, and the matching of a reimbursable expenditure to its authorizing grant, becomes very complicated very quickly. BPI has developed procedures for accurate tracking and timely application for reimbursements so as to smooth out, as much as possible, the sometimes-bumpy road of cash flow.

REPORTS

Not surprisingly, there is a multitude of reports required in regard to grant monies. Each of these reports has specific inclusion requirements and filing deadlines. For example, the DOE requires reports on Title I spending, reimbursements, and other issues, with certain filing parameters.

COMPLIANCE & AUDITS

Public schools are subject to extensive oversight and regulation. Compliance is an ongoing challenge that BPI can help you meet. To ensure compliance, annual audits are required by the SBOA, with reports due biannually to the DOE.

INDIANA STATE DEPARTMENT OF EDUCATION (DOE)

Oversight of schools starts with the Indiana State Department of Education (DOE). Most state and federal funding grants are administered through the DOE.

Every six months, schools are required to submit to DOE a report of revenues and expenditures called Form 9. Bookkeeping Plus prepares this report for its clients, and otherwise works to ensure that they use the proper forms and procedures required by the DOE and SBOA.

STATE BOARD OF ACCOUNTS (SBOA)

In Indiana, the SBOA promulgates a series of protocols that govern accounting methodology for schools. Compliance is mandatory, but due to the extensive nature of the regulations, it is not always easy to understand how the rules apply in a particular case or how they should be implemented.

BPI has the knowledge and experience of  what information to provide to the SBOA on behalf of each of our clients. We also work with the client to ensure that they remain in compliance. We set up the accounting system in compliance with the SBOA-designated chart of accounts and related regulations.

The SBOA also disseminates regulations for recordkeeping and records management. BPI helps the school ensure its compliance with the Indiana state standards.

AUDITS

Audits are required by state law, implemented and conducted by SBOA.  BPI has extensive experience with the audit process and what to expect. We strive to keep the accounts audit-ready throughout the year.

Prior to the audit, we prepare any necessary information and work with the client to make sure they are prepared. We then work with the auditors to ensure that they have all the information they need, and assist with any questions as they arise. With BPI as your accountant, the audit process goes much more smoothly, which also can reduce the cost to the school.

COMPLIANCE

We help schools set up their processes and procedures to stay in compliance with the SBOA.  We pride ourselves on the schools we work with on having zero or extremely low audit comments. We also have come on board as the accountant for a number of schools and turned around their problem compliance scores within the next audit period.

INTERNAL CONTROL LAW

Indiana has passed a new law requiring specific Internal Control procedures for government entities including public schools. BPI can design and set up a system of internal control. We can evaluate your current financial workflow procedures, and then recommend improved processes so as to help reduce errors and prevent fraud. In particular, we can help your school come into regulatory compliance in this area. 

EXTRA-CURRICULAR ACCOUNTING COMPLIANCE

BPI also offers compliance services in the field of Extra-Curricular Accounting.

WILL THESE SERVICES HELP YOU SUCCEED?

Call us and ask for CEO Beth Marsh.  She will personally listen, evaluate your needs at no charge, and honestly advise you on if Bookkeeping Plus is the best firm for you. 

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