The District Did Not Refinance in the Current or Prior Year
If the district has not refinanced in the current or prior year, reclassify any capital debt proceeds to Fund 49. Reclassify any principal or interest payments from function 282000 to function 281000 (or function 289000 WRS).
The District Refinanced a Long Term Obligation Last Year
If the district has a beginning fund balance restricted for debt refinancing (B-936310-001) carried forward from last year, reclassify interest expense from function 281000 (or function 289000 WRS) to function 282000 in the exact amount needed to "spend down" the beginning reserve for debt refinancing.
The District Refinanced a Long Term Obligation in the Current Year
If the district contacted the Department of Public Instruction (DPI) during the year to request the proper entries to report the refinancing, verify that the proper accounts have been used. Verify that the principal payoff, interest and refinancing costs of the old issue are reported in function 282000:
- Any excess proceeds (source 800’s) over refinancing expenditures (function 282000) should be reported at year end as restricted for Debt Refinancing B-936310-002.
- Review the guidelines for debt refinancing transactions provided under the WUFAR Accounting Issues and Coding Examples.
Contact a DPI SFS auditor to request the proper entries to record a debt refinancing. Please have available the final closing statement of sources and uses provided to the district by its bond council.