CASH MANAGEMENT
CASH MANAGEMENTZERO-OUT OUTLINE
Section I :: 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.
Section II :: 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?
Things that affect the Zero-Out:
- Refunds
- Certain Expenditure Adjustments
- BUD transactions
- Any transaction that affects the Total Expenditure or Certification Amount.
Section III :: State Public School Fund (SPSF) and School Technology (ST)
SPSF & ST Zero-Out Notes
- 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
B. In-Depth Example
Section IV :: Federal Programs
A. The 22430000 Cash Advance Account.
B.
The Federal Zero-Out Process
C.
In-Depth Example
Federal Zero-Out Notes
- 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.
Section V :: Questions
Contact Richard Smith at 919.807.3729