Fl ori d a Departm e nt of E d ucati on Office of Early Learning Fi scal G u i d ance 240. 08 Calculating Inte rest to Re m it to O E L
FISCAL ISSUE
The remittance to the Office of Early Learning (OEL) of appropriate interest earnings on funds
maintained by the early learning coalitions (coalitions) and other subrecipients.
PURPOSE
This instruction provides a proposed methodology for calculating interest on funds received under a
grant agreement or contract and maintained by the coalitions and other subrecipients, for the purpose of
returning appropriate interest earnings to the Office of Early Learning.
AUDIENCE
This instruction should be shared with staff and supervisors responsible for coalition financial
management and operations.
INFORMATION
Section 216.181(16)(b), Florida Statutes, allows for the advancing of appropriated funds to not-for-profit
corporations such as the coalitions. Any interest earned on these funds is to be returned to the advancing
agency. Coalitions must return interest income in accordance with the grant agreement and Fiscal
Guidance 240.01. Many coalitions combine dollars received from the State of Florida with other
revenue in a combined interest earning bank account. Therefore, it is not readily apparent how much of
the total interest earned and credited to a coalition’s account each month should be attributed to funds
received from the State of Florida.
In this Fiscal Guidance, the Office of Early Learning is proposing an optional methodology for
coalitions to use in calculating the amount of interest attributable to School Readiness, Voluntary
Prekindergarten Education (VPK), and Outreach and Awareness and Monitoring Initiative (OAMI)
funds. This methodology would only need to be utilized by coalitions who combine School Readiness,
VPK, and OAMI funds received from the state with other funds in an interest bearing account. When a
coalition sets up multiple bank accounts to sequester School Readiness, VPK, OAMI and other funds
into their own individual accounts, this methodology would NOT apply. In such cases, a coalition
would continue to remit the exact amount of interest earned each month on School Readiness, VPK, and
OAMI funds to the Office of Early Learning in accordance with FG 240.01.
For those coalitions who combine funds, the proposed methodology for calculating interest to remit to
the Office of Early Learning is described in the next section.
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OEL – 240.08 CALCULATING INTEREST TO REMIT TO OEL
INSTRUCTIONS
1. For a given month, take the beginning balance from the coalition’s bank statement.
2. Through reconciliation to the coalition’s General Ledger, calculate the percentage distribution of
the beginning balance among School Readiness, VPK, OAMI, and Other.
3. For the same month, take the ending balance from the coalition’s bank statement.
4. Through reconciliation to the coalition’s General Ledger, calculate the percentage distribution of
the ending balance among School Readiness, VPK, OAMI, and Other.
5. Average the beginning balance and ending balance percentage distributions for School Readiness,
VPK, OAMI, and Other to calculate the percentage distribution for each category.
6. Take the amount of interest paid for the month from the coalition’s bank statement.
7. Allocate interest earned between School Readiness, VPK, OAMI, and Other using the average
percentage distributions calculated in Step #5.
Example of how to apply this methodology –
 Take the beginning balance from the bank statement – example $1,000,000.00.
 Percentage distributions of the beginning balance among School Readiness, VPK, OAMI, and
Other:
School Readiness
VPK
OAMI
Other
Total
$540,000.00
$330,000.00
$20,000
$110,000.00
$1,000,000.00
54.00%
33.00%
2.00%
11.00%
100.00%
 Take the ending balance from the bank statement – example $850,000.00.
 Percentage distributions of the ending balance among School Readiness, VPK, OAMI and Other:
School Readiness
VPK
OAMI
Other
Total
$460,000.00
$280,000.00
$10,000
$100,000.00
$850,000.00
54.12%
32.94%
1.18%
11.76%
100.00%
 Calculate the average of the beginning balance and ending balance percentage distributions:
School Readiness
VPK
OAMI
Other
Total
Beginning
54.00%
33.00%
2.00%
11.00%
100.00%
Ending
54.12%
32.94%
1.18%
11.76%
100.00%
Average
54.06%
32.97%
1.59%
11.38%
100.00%
 Take the amount of interest paid from the bank statement – example $4,000.00.
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OEL – 240.08 CALCULATING INTEREST TO REMIT TO OEL
 Allocate interest earned between School Readiness, VPK, OAMI and Other:
School Readiness
VPK
OAMI
Other
Total
Percentage
54.06%
32.97%
1.59%
11.38%
100.00%
Allocation
$2,162.40
$1,318.80
$63.60
$455.20
$4,000.00
Interest Total from SR ($2,162.40) + VPK ($1,318.80) + OAMI ($63.60) =
$3,544.80
In this example, of the $4,000.00 in interest earned during the month the coalition would allocate
$3,544.80 of this interest to School Readiness, VPK, and OAMI funds and return this amount to the
Office of Early Learning.
NOTE: For consistency purposes, the calculated average percentages were rounded to the nearest whole
number at the second decimal place for application to the interest earned.
HISTORY
This guidance replaces the prior version identified as Fiscal Guidance 14.01. Reissued November 26,
2014
If you have questions or concerns regarding the guidance provided here, please contact the
OEL Financial Administration and Budget Services Office at (850) 717-8628
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