Finance Officers' Newsletter July 22, 2016

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July 22, 2016     


Financial and Business Services is made up of five divisions: School Business Administration,
Financial Services, Safe & Healthy Schools Support, Licensure and Office of
Charter Schools. All divisions report to Philip W. Price, CFO

Webinar Reminder

If you have specific questions for the Finance Information Sharing & Questions webinar held on Tuesday’s at 9:00 to 9:30 please send those in time to allow us to research if necessary prior to the webinar. The email address is

Health Plan and Retirement Rates

For FY 2016-17, school districts and participating charter schools should budget $5,659 as the annual (fiscal year) cost for the Health Plan.  The retirement rate should be at 16.33% (per Section 36.20.(b) of the Budget Bill).  State funding will be distributed when OSBM decides to establish those rates and releases funds to us from the Reserve for Future Benefits.  The use of the higher rates is also referenced in the Budget: 

Section 36.24.(b) of S.L. 2016-94: If the Director of the Budget determines that the additional cost‑controlling measures adopted by the Board of Trustees and the State Treasurer as directed in subsection (a) of this section are sufficient to reduce the projected employer premium increases to four percent (4%) or less in both the 2018 and 2019 plan years, then the Director of the Budget is authorized to reallocate funds in the Reserve for Future Benefit Needs to individual State agency budgets. The projected employer premium increases should be calculated assuming the Reserve for Future Benefit Needs is reallocated.

Federal Cash Zero Out

During the Budget Update session at the FBS conference, it was communicated that the Federal Cash Zero Out process will be discontinued, effective immediately.  Due to the need for some LEAs to have the time to review and/or modify their current procedures, this action will be delayed until further notice.  Any questions or comments on this item should be directed to Alexis Schauss at

FY 2016 - 13th Month MFR File – Reminder (LEAs Only)

This is a reminder that we will pull your FY 2016 13th month MFR File on Wednesday evening, July 27, 2016.  Please make sure your LEA is signed into FY 16. 

The 13th month information is very important because the information represents your "Per Pupil" calculation and the information is reported in the NC School Report Cards.  All 115 LEAs will need to upload their FY 2016 13th Month MFR files by Wednesday, July 27, 2016. 

Please do the following before building the 13th Month MFR file (Please make sure that you are signed into FY 16): 

(1) Book the Period 12 zero-out entry to your GL in June (Period 12).

(2) Correct all of your MFR errors, including local account codes.

(3) Review the AFR/MFR Recommendations located on the Financial and Business Services web page:

(4) Local Fund 2 PRC 056 mirrors State Fund 1 PRC 056; otherwise, use Local Fund 2 PRC 706.

(5)  Your LEA will need to record your State Textbook expenditures through journal entries. (Rev. 1-3211-130-000 and Exp. 1-5110-130-412) 

If you have questions about your MFR file, please contact Roxane Bernard at (919) 807-3725 or or Richard Smith at 919-807-3729 or

Federal Overspent Programs (LEAs

Please wait until DPI sends your LEA a letter providing instructions on how to pay back any federal overspent programs from FY 15-16.  Your LEA cannot pay back federal overspent programs through the BUD system. 

Also, your LEA cannot prepare BUD entries to pay back Single Audit Questioned Costs.  Your LEA will need to send in a check from local funds to pay back federal questioned costs. 

Your LEA can pay back state overspent for FY 15-16 as a prior year refund within the BUD system. 

If you have additional questions, please contact Roxane Bernard at 919-807-3725 or or Richard Smith at 919-807-3729 or

Charter Schools - State PRC 036 First Installment (Charter Schools Only)

The Allotment section allotted the first state installment of PRC 036 for charter schools on Tuesday, July 19, 2016. 

New charter schools will need their certificate of occupancy approved by the Office of Charter Schools and their cash management and MSAS forms processed before they have access to their first installment of state funds. 

If you have questions about your MFR file, please contact Roxane Bernard at (919) 807-3725 or