School Finance Badge #02: Year-End Financial Reporting-School Finance Badge #2

School Finance Badge #2 - PowerPoint

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Year-end financial reporting for Washington school districts requires early planning and careful reconciliation to meet OSPI and audit deadlines. Districts should build a timeline working backward from key due dates: F-196 to the ESD by October 25, ESD review by November 2, district certification by November 9, ESD submission to OSPI by November 16, and the SEFA to the State Auditor’s Office (SAO) by November 30 (dates may vary). Notes to the financial statements are due when SAO arrives for audit.<br /><br />Before the August 31 fiscal year-end, districts should complete preliminary recovery/carryover and maintenance of effort calculations, reconcile balance sheet accounts through July, clean up purchase orders, take physical inventories, validate account coding, review ASB club balances, and identify contracts that may fall under GASB lease (87) or SBITA (96) rules, including interest rates and present value schedules.<br /><br />After August 31, districts finalize year-end adjustments. Under modified accrual, expenditures are recorded when goods/services are received, so accounts payable must be accrued for items received by August 31 but paid later, and payroll must be accrued for wages/benefits earned before September 1 (with exceptions such as certain teacher contract time). Revenue is recognized when measurable and available (generally within 60 days), requiring accounts receivable and grant accrual entries, and identification of unearned revenue for cash received before services are provided.<br /><br />A major focus is reconciling every balance sheet account (assets, liabilities, and fund balance) to external support (bank statements, treasurer reports, inventories, schedules). Fund balance must be properly classified using OSPI tools. Additional requirements include ASB reconciliation and public posting, capital projects fund balance reporting by source/use, and completing the schedule of long-term liabilities (including material leases/SBITAs). Strong documentation—by fund and by account—is essential for the audit and final submissions.

Keywords

Washington school districts

year-end financial reporting

OSPI F-196 deadlines

ESD submission timeline

SEFA reporting

State Auditor’s Office audit

modified accrual accounting

balance sheet reconciliation

GASB 87 leases

GASB 96 SBITA