Members of the Kentucky General Assembly and other interested parties have expressed concern for several years that some of the financial data collected and reported by the Kentucky Department of Education (KDE) does not contain a sufficient level of detail to adequately inform certain decisions or to allow valid comparisons with other states. In order to address this concern, KDE has been instructed to make revisions to the Chart of Accounts (COA) currently used by Kentucky school districts. This will require all local school districts to make revisions to their existing charts of accounts. Changes to the COAs and accurate coding will provide more accurate financial data, thereby allowing district program personnel to more effectively review their program’s impact on student achievement.
All financial data derived from the COA is submitted by districts to the state level and is based on segments which fall under broader organizational (org) codes. Districts may be utilizing the correct org code; however, the segments attached to the org code are sometimes incorrect. The revisions made by districts to their COAs will help clean up the reporting of data within the org codes, thus providing better quality data to KDE and the public.
KDE and MUNIS have worked together to provide three utilities that will not only benefit districts with revisions of their COAs, but can be used as often as needed by the districts. All districts using these utilities must be on MUNIS version 6.3b. A brief description of the utilities is listed below:
The first MUNIS utility will identify accounts that need more attention due to structure changes being implemented.
A second MUNIS utility will modify the change of general ledger accounts for the district and has the ability to be used with an excel spreadsheet. (This utility will make it possible to change multiple accounts during one process, rather than making account changes one account at a time.)
A final MUNIS utility will assist districts with compliance with the state account structure. (It will be helpful in checking to make sure accounts comply with the new COA and other guidelines provided by grant program staff at KDE)
Currently, there are ten (10) districts that will pilot the new MUNIS utilities and will be submitting their June 30, 2009 Annual Financial Reports (AFR) with account codes in compliance with the new COA. All other districts will be expected to have updated account codes by the time they submit their June 30, 2010 AFR. KDE will provide notification when the MUNIS utilities are ready for use in all districts.
Listed below are some of the educational and financial benefits to districts as a result of the changes in the COA:
Districts will have more specific and accurate data to make improved program and budgeting decisions.
The General Assembly, district program staff and administrators can tie program funding and expenditures to program outcomes as an indicator of program success. Program success could lead to additional program funding.
The changes promote public participation in the school system, while providing accessible, accurate school financial data. This will boost public confidence in district financial data at the district and state level.
Specific clarification of data elements will be supported by detailed definitions, which will provide consistency in reporting.
Districts, KDE and OEA can more accurately evaluate program efficiency and effectiveness.
Districts, the public and the General Assembly can compare revenues and expenditures across Kentucky and nationally.
Please contact Karen Conway at 502-564-3846, if you have any questions.