Cash Management

Procedures

Procedures

Information on how to sign onto the cash management system and request funds, with sample menus and screens, etc.

Cash Management Procedures For LEAs October 4, 2018

Cash Management Guidelines For Charter Schools November 12, 2013

Zero-Out Outline

Zero-Out Outline

State Public School Fund, School Technology, and Federal Zero-Outs

The Zero-Out

  • Purpose is to equate LEA Certifications to LEA Expenditures each month.
  • DPI's goal for the LEAs is to have a zero-out amount no greater than 1% of their monthly expenditures.

Key Information to Remember

A. MSA System

  • Effective dates on MSA are IMPORTANT!
  • 2 Day Rule - Cash Certifications are recorded on MSA two business days before the Funds Requirement Date.

B. What affects the Zero-Out?

  • Refunds
  • Certain Expenditure Adjustments
  • BUD transactions
  • Any transaction that affects the Total Expenditure or Certification Amount.

State Public School Fund (SPSF) and School Technology (ST)

  • Formula (SPSF & ST)
    • Beginning Cash + MTD Certifications - MTD Expenditures
  • SPSF Certifications
    • MSA "43000000" Transactions for the Month
  • SPSF Expenditures
    • All Company 1000 Expenditures NOT in PRC 015 (School Tech)
  • School Tech Certifications
    • MSA "43200000" Transactions
  • School Tech Expenditures
    • All Expenditures for the month in PRC 015

Federal Programs

  • Formula (Federal)
    • Beginning Cash + MTD Certifications - MTD Expenditures
    • Calculated by Period Ending Balance for the Cash Advance Account (22430000) for each Federal PRC.
  • Federal Certifications
    • Federal Certifications create a CR entry in the 22430000 account.
  • Federal Expenditures
    • Federal Expenditures create a DR entry in the 22430000 account.
  • Zero-Out Amount
    • In most cases will be equal to 22430000 balance at the end of the month after expenditures have posted.
    • If the Zero-Out amount is greater than the Authority to Draw (11210000) account balance for a PRC, then only the remaining ATD balance will be drawn down.

Contact Gwendolyn Tucker at 919.807.3708

Zero-Out Examples

Zero-Out Examples

State Public School Fund

July 2002 :: Cash Balance

DESCRIPTION
DEBIT
CREDIT
1. Yearly Beginning Cash Balance
0.00
 
2. Monthly Payroll & Gen Exp Certs for July
2,000,000.00
 
3. SPSF Expenditures for July  
1,500,000.00
4. Ending Cash Balance (Zero-Out)
500,000.00
 

August 2002 :: Cash Balance

DESCRIPTION
DEBIT
CREDIT
1. Monthly Beginning Cash Balance
500,000.00
 
2. Monthly Payroll & Gen Exp Certs for August
1,500,000.00
 
3. July Zero-Out  
500,000.00
4. SPSF Expenditures for August  
2,000,000.00
5. Ending Cash Balance (Zero-Out)  
(500,000.00)

August 2002 :: Cash Balance (With Refund)

DESCRIPTION
DEBIT
CREDIT
1. Monthly Beginning Cash Balance
500,000.00
 
2. Monthly Payroll & Gen Exp Certs for August
1,500,000.00
 
3. July Zero-Out  
500,000.00
4. $10,000 Refund for PRC 072  
(10,000.00)
5. SPSF Expenditures for August  
2,000,000.00
6. Ending Cash Balance (Zero-Out)  
(490,000.00)

Federal

July 2002 :: PRC 017 Cash Advance Balance 22430000

DESCRIPTION
DEBIT
CREDIT
1. Yearly Beginning Cash Balance for PRC 017
0.00
 
2. Total Cash Draws for July
25,000.00
 
3. PRC 017 Expenditures for July  
23,000.00
4. Ending Cash Balance (Zero-Out)
2,000.00
 

August 2002 :: PRC 017 Cash Advance Balance 22430000

DESCRIPTION
DEBIT
CREDIT
1. August Beginning Cash Balance for PRC 017
2,000.00
 
2. Total Cash Draws for August
20,000.00
 
3. July PRC 017 Zero-Out  
2,000.00
4. PRC 017 Expenditures for August  
22,000.00
5. Ending Cash Balance (Zero-Out)
(2,000.00)
 
Forms