<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Exchange Server">
<!-- converted from rtf -->
<style><!-- .EmailQuote { margin-left: 1pt; padding-left: 4pt; border-left: #800000 2px solid; } --></style>
</head>
<body>
<font face="Arial, sans-serif" size="3">
<div> </div>
<div> </div>
<div style="padding-right: -36pt; text-align: center; "><font face="Tahoma, sans-serif" size="4"><b>Chart of Accounts Committee Meeting</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif" size="4"><b>Monday April 12, 2010</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif" size="4"><b>10 AM to Noon</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif" size="4"> </font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"><b>COSA Building </b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"><b>707 13th St SE, Suite B</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"><b>Salem, OR 97301</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"> </font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"><b>Minutes and Subsequent Interviews</b></font></div>
<div style="text-align: center; "><font face="Tahoma, sans-serif"> </font></div>
<div><font face="Tahoma, sans-serif" size="2">Present: Andre Schellhaas, Beaverton SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Barb Cruickshank, ODE </font></div>
<div style="padding-left: 36pt; text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2">Carol Ann Kirby, Portland Public Schools</font></div>
<div> <font face="Tahoma, sans-serif" size="2">Debbie Bell, Corvallis SD </font></div>
<div><font face="Tahoma, sans-serif" size="2"> Elizabeth Michaels, Tigard Tualatin SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> LeAnn Smith, Beaverton SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Mike Wiltfong, ODE</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Terry Long, Gervais SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Tim Belanger, Oregon Trail SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Wes Rogers, Oregon City SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> </font></div>
<div><font face="Tahoma, sans-serif" size="2">Absent: Angie Peterman, OSBA</font></div>
<div style="padding-left: 36pt; text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2">Bonnie Maplethorpe, Tigard Tualatin SD</font></div>
<div> <font face="Tahoma, sans-serif" size="2">Brian Reeder, ODE</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Chuck Swank, Grove, Mueller and Swank P.C.</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Claire Cotton, Sutherlin SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> David Moore, Canby SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Doug Darden, LBL ESD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Gary Ellwanger, ODE</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Jane Nofziger, Linn Benton Lincoln ESD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Louise Kallstrom, Astoria SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Mike Schofield, NW Regional ESD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Rod Danielson, Coos Bay SD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Shari Lewis, Portland Public Schools</font></div>
<div><font face="Tahoma, sans-serif" size="2"> Tim Collier, NW Regional ESD</font></div>
<div><font face="Tahoma, sans-serif" size="2"> </font></div>
<div><font face="Tahoma, sans-serif">The changes proposed for the 2010 PBAM will take effect on July 1, 2011 and will be available for the 2011-12 Budget process.</font></div>
<div style="text-align: center; "> </div>
<div style="text-indent: 18pt; "><font face="Tahoma, sans-serif">1.) In response to GASB 54, the Chart of Accounts Committee provided the following<font size="2">:</font></font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2"><b>a.</b> The Secretary of State – Audits Division office was contacted. The SOS requires that GASB 54 be followed as the basic financial statements must be reported in accordance with
GAAP. Since SOS only gets involved after the fact, they have not addressed any specifics related to GASB 54. I was directed to the Department of Revenue for any issues regarding Local Budget Law. </font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2"><b>b.</b> After checking with Lee Peterson at the Department of Revenue regarding legal issues, it is recommended that if a district has a fund that under GASB 54 does not qualify as
a Special Revenue Fund which needs to have a specific and continuous revenue source not including the beginning fund balance or transfers and the district does not want to roll that fund into the General Fund (an example would be a PERS Stability Fund), it
could be funded by a diversion of local Ad Valorem Taxes to the Special Revenue Fund.</font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2"><b>c. </b>This action will require a change in wording in the Resolutions Imposing and Categorizing Taxes. See the updated resolutions below.</font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2"> </font></div>
<div><font face="Calibri, sans-serif" size="2"><b>SAMPLE RESOLUTION IMPOSING THE TAX:</b></font></div>
<div><font face="Calibri, sans-serif" size="2">BE IT RESOLVED, that the Board of Directors of ___________ School District hereby imposes the taxes provided for in the adopted budget:</font></div>
<ol style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 72pt; ">
<font face="Calibri, sans-serif" size="2">
<li>In the amount <u><b>or</b></u> at the rate of $x.xxxx per $1,000 of assessed value for operations; </li><li>In the amount <u><b>or</b></u> at the rate of $x.xxxx per $1,000 of assessed value for local option tax; and that these taxes are hereby imposed and categorized for tax year 2010-2011 upon the assessed value of all taxable property within the district.</li><li>In the amount of $1,000,000 for bonds;</li></font>
</ol>
<div><font face="Times New Roman, serif" size="2"> </font></div>
<div><font face="Calibri, sans-serif" size="2">and that these taxes are hereby imposed and categorized for tax year 2010-2011 upon the assessed value of all taxable property within the district as follows:</font></div>
<div style="padding-left: 54pt; "><font face="Times New Roman, serif" size="2"> </font></div>
<div><font face="Times New Roman, serif" size="2"> </font></div>
<div><font face="Times New Roman, serif" size="2"> </font></div>
<div><font face="Calibri, sans-serif" size="2"><b>SAMPLE RESOLUTION CATEGORIZING THE TAX: </b></font></div>
<div><font face="Calibri, sans-serif" size="2"> <b>Education Limitation Excluded from Limitation</b></font></div>
<div><font face="Calibri, sans-serif" size="2">Permanent Rate Tax..……………………..$x.xxxx/$1,000</font></div>
<div><font face="Calibri, sans-serif" size="2">Local Option Tax……………………………..$x.xxxx/$1,000</font></div>
<div><font face="Calibri, sans-serif" size="2">Debt Service Levy…………………………………………………………………………………….$X,XXX,XXX</font></div>
<div><font face="Calibri, sans-serif" size="2"> </font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif" size="2"><b>d. </b><font size="3">ODE will revise their programming to include Fund 200, Source code 1110 – Ad Valorem Taxes Levied by a District in the State School Fund calculation. By capturing
both Fund 100 and 200, Source code 1110, the State School Fund total local revenue portion will remain unchanged.</font></font></div>
<div style="text-indent: 36pt; "><font face="Tahoma, sans-serif"><b>e. </b>Several audit firms are recommending that the board positively affirm that fund balances currently in a Special Revenue Fund should remain in the Special Revenue Fund. Checking with
your auditor may be a good idea.</font></div>
<div> </div>
<div style="text-indent: 18pt; "><font face="Tahoma, sans-serif">2.) Also to update the Chart of Accounts to align with the federal Fund Equity requirements in GASB 54 the following Fund Equity accounts have been edited, deleted or added. Fund Equity is
not submitted to ODE electronically, so you may use them as soon as your computer systems will allow.</font></div>
<div style="text-indent: 18pt; "><font face="Tahoma, sans-serif"> </font></div>
<div style="margin-bottom: 12pt; padding-left: 72pt; text-indent: -36pt; text-align: justify; ">
<font size="2">760 Other than Unassigned (Special Purposes)—Fund Balance. A reserve which represents the segregation of a portion of a fund balance to indicate that assets equal to the amount of the reserve are tied up and are, therefore, not available
for appropriation. It is recommended that a separate reserve be established for each special purpose. One example of a special purpose would be restricted federal programs.</font></div>
<div style="margin-bottom: 12pt; padding-left: 108pt; text-indent: -36pt; text-align: justify; ">
<font size="2">761 Non-spendable Fund Balance. Amounts that cannot be spent due to form; for example, inventories and prepaid amounts. Also, long-term loan and notes receivables, and property held for resale would be reported here unless the proceeds are
restricted, committed or assigned. OR Amounts that must be maintained intact legally or contractually (corpus or principal of a permanent fund).</font></div>
<div style="margin-bottom: 12pt; padding-left: 108pt; text-indent: -36pt; text-align: justify; ">
<font size="2">762 Restricted Fund Balance. Amounts constrained for a specific purpose by external parties, constitutional provision or enabling legislation.</font></div>
<div style="margin-bottom: 12pt; padding-left: 108pt; text-indent: -36pt; "><font size="2">763 Committed Fund Balance. Amounts constrained for a specific purpose by a government using its highest level of decision-making authority. It would require action
by the same group to remove or change the constraints placed on the resources. Action to constrain resources must occur prior to year-end; however, the amount can be determined in the subsequent period.<font color="#4F81BD"> </font></font></div>
<div style="margin-bottom: 12pt; padding-left: 108pt; text-indent: -36pt; "><font size="2">764 Assigned Fund Balance. Amounts intended to be used by the governing body for specific purposes. Amounts reported as assigned should not result in a deficit
in unassigned fund balance. In the general fund assigned fund balance represents the amount that is not restricted or committed.</font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 36pt; "><font size="2">770 Unassigned Fund Balance. In the general fund, amounts not contained in other classifications i.e. non-spendable, restricted, committed or assigned. The general fund
is the only fund that would report a positive amount in unassigned fund balance. For all governmental funds other than the general fund, amounts expended in excess of resources that are non-spendable, restricted, committed or assigned (a residual deficit).
In determining a residual deficit, no amount should be reported as assigned.</font></div>
<div> </div>
<ol start="3" style="margin-top: 0pt; margin-bottom: 0pt; ">
<font face="Tahoma, sans-serif">
<li>The Chart of Accounts Committee unanimously rejected the suggestion to assign specific fund codes to major Special Revenue Funds. The suggestion was made to eliminate sending in separate reports requested by Food Service and other governmental agencies.</li></font>
</ol>
<div> </div>
<ol start="4" style="margin-top: 0pt; margin-bottom: 0pt; ">
<font face="Tahoma, sans-serif">
<li>.Two years ago, Tim Belanger suggested that districts go back to the old coding where Function code 1111 was K-5 and to eliminate Function code 1112. The committee decided to research it at that time. To date there has been no resounding reasons to prevent
this change. The COA committee voted to make this change <b>effective July 1, 2011</b>, so your 2010-11 Budgets and Actuals will still use both Function codes 1111 and 1112.</li></font>
</ol>
<div> </div>
<div> </div>
<div>If you should have any questions, please contact Barb Cruickshank.</div>
<div> </div>
<div>Thank you,</div>
<div> </div>
<div><font face="Lucida Calligraphy, cursive" size="2" color="#0000FF">Barb Cruickshank<font face="Times New Roman, serif" color="#000000">
<br>
</font>Oregon Dept of Education<font face="Times New Roman, serif" color="#000000">
<br>
</font>(503) 947-5916<font face="Times New Roman, serif" color="#000000"> <br>
</font>(503) 378-5156 Fax<font face="Times New Roman, serif" color="#000000"> <br>
</font><a href="mailto:barbara.cruickshank@state.or.us"><u>barbara.cruickshank@state.or.us</u></a><font face="Times New Roman, serif" color="#000000"> </font></font></div>
<div> </div>
<div> </div>
</font>
<p>**********************************************************************<br />This email and any files transmitted with it are confidential and<br />intended solely for the use of the individual or entity to whom they<br />are addressed. If you have received this email in error please notify<br />the sender immediately and delete the communication and any attachments.</p><p>This footnote also confirms that this email message has been swept by<br />MIMEsweeper for the presence of computer viruses.<br />**********************************************************************</p>
</body>
</html>