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. Public Schools of North Carolina . . State Board of Education . . Department Of Public Instruction .

CASH MANAGEMENT

ZERO-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)

A. The Zero-Out Process
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