Year End - Cash Basis-Year End - Cash Basis

Year End - Cash Basis - PowerPoint

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This document outlines the Washington school district year-end close process for producing accurate, timely cash-basis financial statements, centered on the OSPI F-196 report (school year ended 8/31/2022). It explains that the F-196 is used by the Legislature and OSPI for analysis and will be audited by the State Auditor’s Office (SAO). Required components include the F-196, several supplemental schedules (Long-Term Liabilities, Distorting Items, Indirects, and Resource-to-Program Expenditures), plus the Notes to the Financial Statements and the SEFA (Schedule of Expenditures of Federal Awards).<br /><br />Key deadlines are emphasized: districts submit the F-196 to the ESD by Oct 25; ESD review by Nov 1; district certification to ESD by Nov 8; ESD certification to OSPI by Nov 15. Late reporting can delay apportionment payments.<br /><br />The training highlights cash-basis implications for small districts (<1,000 FTE): revenues are recorded only when cash is received and expenditures only when paid—no year-end accruals. Therefore, timing matters for grant claims, payroll, vendor payments, and federal/state reimbursable programs.<br /><br />A nine-step close checklist is presented. Pre–Aug 31 tasks include completing OSPI’s Recovery Tool (to estimate carryovers and avoid recoveries), maximizing grant claims by Aug 15, validating time-and-effort, posting August payroll, running accounts payable, balancing categorical spending to allocations, and completing reconciliations and receipts by 8/31. Post–Sept 1 work focuses on August treasurer and balance sheet reconciliations tied to the F-197.<br /><br />Year-end adjustments include USDA commodities entries and reclassifying non–to/from transportation costs out of Program 99. Districts must also classify ending fund balance using OSPI’s Fund Balance Reporting Tool and record needed journal entries. Final steps cover exporting/mapping data to EDS, resolving F-196 edits, preparing supplemental schedules (including indirect cost and distorting items), and producing the SEFA and customized financial statement notes with strong documentation and second-review evidence.

Keywords

Washington school district year-end close

OSPI F-196 report

cash-basis financial statements

State Auditor’s Office audit

F-196 submission and certification deadlines

ESD review process

small district cash accounting (<1,000 FTE)

F-197 treasurer and balance sheet reconciliations

supplemental schedules (long-term liabilities, distorting items, indirects)

SEFA Schedule of Expenditures of Federal Awards