Fund Balance

Special Accounting Instructions-FY 2013 Adjustments for Excess Fund Balance

March 11, 2013

TO: Business Managers and Community Education Directors

The Minnesota Department of Education (MDE) recommends that districts with a FY 2013 adjustment for excess fund balance in Community Education or Early Childhood Family Education (ECFE) make a special accounting entry to defer revenue in the amount of the levy portion of this adjustment, which is reported on Line 2.13 of the 2012-13 Community Education and ECFE Aid Calculation reports.

FY 2013 levy adjustments for excess fund balance will be certified in the 2013 Payable 2014 levy cycle and not recognized until FY 2015. By deferring revenue in the amount of the adjustment, the district's June 30, 2013, fund balance will reflect 100 percent of its FY 2013 revenue reduction for excess fund balance. A district with a levy adjustment should make the following journal entry:

FY2013 Entries

Community Education

ECFE

Debit Levy Revenue

04-005-505-321-001-000

04-005-580-325-001-000

Credit Deferred Revenue

04-230-00

04-230-00

FY 2015 Entries

   

Credit Levy Revenue

04-005-505-321-001-000

04-005-580-325-001-000

Debit Deferred Revenue

04-230-00

04-230-00

Districts may substitute 000’s in the site and program dimensions.

Do not reverse the deferral until the levy adjustment is recognized:

In FY 2013 for FY 2011 adjustments for excess fund balance certified in 2011 and payable in 2012.

In FY 2014 for FY 2012 adjustments for excess fund balance certified in 2012 and payable in 2013.

In FY 2015 for FY 2013 adjustments certified in 2013, payable in 2014.