South Dakota Association of School Business Officials Spring C onference April , 2010

South Dakota Association of School Business Officials

Spring ConferenceApril, 2010

State Aid Changes & Annual Reporting

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Department of Education:Susan WoodmanseyBobbi Leiferman

Presenters:2

Good teaching must be slow enough so that it is not confusing, and fast enough so that it is not boring.

Sidney J. Harris

Goal for Today’s Conference Session3

Changes to State Aid in FY2011

HB1248 Student count for general aid funding is either; the Fall

2010 state aid fall enrollment count OR the average of state aid fall enrollment of the two previous years (Fall 2008 and Fall 2009).

http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

Full funding for growing enrollment districts – no threshold of 5% or 25 students – paid $4,804.60 + Small School Adjustment (if applicable) for every student in excess of averaged count.

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HB1108 Allows districts an “adjusted” ending general fund balance of 40%

of annual general fund expenditures, as of 6/30/2010.

“Adjusted” fund balance is the actual reported fund balance on 6/30/2010 for the general fund less all applicable deductions, such as; cumulative opt out amount, cumulative consolidation incentive, contributions & donations, federal ARRA revenues, etc. See current year calculations at

http://doe.sd.gov/ofm/stateAid/index.asp

New baseline % established in FY2011 and until 2015 districts allowed % as of end of FY2011 or 40%, whichever is less.

Fund balance percentage allowed may always be at least 25%.

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SB22 Holds the general aid per student allocation steady at

$4,804.60.

Holds the special education disability levels steady as well; Level 1 = $4,057 Level 2 = $9,471 Level 3 = $15,220 Level 4 = $13,164 Level 5 = $16,539 Level 6 = $8,438

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SB67 Sets new maximum general fund levies for taxes payable

in calendar year 2011:

Agricultural property = $2.554 per thousand Non Ag Z = eliminated Owner Occupied = $3.965 per thousand Non-Agricultural = $8.491 per thousand

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2010 Legislative Changes for Special Education

HB1020 Allows school district to transfer local funds out of the Special

Education Fund – in an amount not to exceed 50% of the annual increase in federal IDEA funding.

Funds transferred must be expended in FY2010 (before 6/30/2010).

Districts are NOT transferring federal funds – federal funds (such as Part B 611, 619 and ARRA) must continue to be expended within the Special Education Fund of the district

Maximum amounts allowed to be transferred may be found at the following web site:

http://doe.sd.gov/oess/specialed/flowthrough.asp

Although this permission will extend beyond FY2010 it is probable that due to allocation of ARRA in FY2010 there will not be an increase in funding to districts going into FY2011.

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HB1020 Districts will be expected to be able to provide DOE with an detailed

expenditure report of the transferred amount.

Transferred amount will be included for local MOE purposes in FY2011 (comparing FY09 to FY2010). Example – district transfers $65,000 from SE fund to CO fund, that $65,000 will be added to the local funds expended in SE fund to determine MOE. In the following school year the district’s local MOE amount will be only those local funds expended from the SE fund.

This legislation included an emergency clause and therefore makes this available to use immediately.

Districts must assume that if local funds are available to be transferred out of the special education fund that it would not be requesting funding from the extraordinary cost fund or able to explain to the ECF board why the district transferred local funds. Transfers must come from the “excess” and not the “need” of the SE Fund.

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HB1021 Similar to HB1020 this bill included an emergency clause

and is effective immediately.

This bill allows school districts to use federal funds to purchase special education related equipment.

Districts – upon approval from DOE – would receipt the federal funds directly to the Capital Outlay fund and record that expenditure within the Capital Outlay fund.

State & local funds must be receipted to the district’s Special Education fund and may not be expended for equipment - other than - assistive technology tied to the student’s IEP. (SDCL 13-37-8.10 and 13-37-16).

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Other Legislative Changes

HB1181

SB196

SB47

HB 1181 eliminates any incentives for future consolidations. Any district already receiving, or due to receive, incentives under current law will continue to receive them.

SB196 is the general budget bill and cut funding ($500,000) for Educational Service Agencies (ESAs), cut the DDN portion of the state’s Technology in Schools budget by $300,000 and also reduced the amount of general fund increase to state’s technical institutes by 50 percent.

Allows all remaining FY2010 state aid funding for Special Education to be carried over for FY2011.

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2010 Legislation – Failed but Maybe Not Forgotten?

HB1150 HB 1150 gained momentum but ultimately failed during the

2010 legislative session. This bill revised the small school adjustment calculations for students enrolling in small districts (less than 600 students) by open enrollment.

Brought to light a need to do a better job of documenting students sent and received through open enrollment. Is the correct public school district reported as the resident district

(resident district may not be a non-public or BIE)? Is the correct enrollment status reported (O-open enrolled)? If a student changes residence – are the appropriate corrections

made to the student enrollment data for this student? Should the state aid fall enrollment report identify and verify the

data for these students?

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Budgeting for FY2011

General Aid

Sparse Districts

Special Education

DOE has prepared a number of documents to assist in budgeting for fiscal year 2011: http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

An updated State Aid Issue Brief (a narrative explanation of the funding formula and its history) http://doe.sd.gov/stateaid/index.asp

History of Per Student Allocations and Levies http://doe.sd.gov/stateaid/index.asp

Estimate Sparsity Funding http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

Budgeting for Special Education http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

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Annual Financial Reporting - ARRA

FY2010 State Fiscal Stabilization Funds

The annual financial report expenditure of ARRA funds MUST compare to the expenditure report submitted to DOE in October, 2009.

If a district reported using the funds for capital outlay expenditures – the revenues must reflect a receipt of 4199 (SFSF revenue code) into the Capital Outlay Fund.

If a district doesn’t remember how the expenditures were reported – check out the following web site:

http://doe.sd.gov/stimulus/ (listed under State Specific Information)

Use of an operational units within the accounting software to track these funds (each must be tracked separately) is highly recommended.

DOE is responsible to monitor our school districts and will plan to visit selected districts to review for compliance.

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Monitoring of FY2010 SFSF

Full compliance with federal regulations?

To assure full compliance DOE will be required to conduct an on-site visit to review the following:

Recordkeeping, Documentation, Reporting Funds Tracked Separately? Fully Disclose How Funds Were Expended? Total Cost of Activity? Share of the Cost Provided by Other Sources?

Documents Reviewed During on On-site Visit Application, Use of Funds, Expenditure Reports, Fiscal Oversight and

Reporting Information

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More Annual Financial Reporting – ARRA

FY2011 State Fiscal Stabilization Funds

Eligible districts will receive full allocation of SFSF in one payment – plan to use in the first quarter of FY2011.

Estimated district allocations are posted to our web site - http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

FY2011 Expenditure reports – as well as FY2011 jobs funded information – will be due in October 6, 2010. The expenditure report is posted to the above referenced web site.

Please review unallowable uses of SFSF funds on the below web site:

http://doe.sd.gov/stimulus/

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More on ARRA Funds

IDEA ARRA A district has 2 years to expend this funding amount.

Funds are paid to districts on a reimbursement basis – a district must submit a claim to receive payment.

Districts must use these funds prior to requesting additional state aid from the Extraordinary Cost Fund.

These funds must be tracked separately from the regular IDEA 611 and 619 funds received (again use of an operational units within the accounting software is recommended).

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Contact Information for ARRA Fraud

Suspect Fraud?

Anyone suspecting fraud, waste or abuse involving Department of Education funds or programs should call or write the Inspector General's Hotline (choose the method of contact which best suits you):

Send an email message to [email protected]

Call the OIG Hotline's toll free number 1-800-MIS-USED. The Hotline's operating hours are Monday, Wednesday and Friday 9:00 AM until 11:00 AM, Eastern Time; Tuesday and Thursday, 1:00 PM until 3:00 PM, Eastern Time except for holidays.

Visit www.ed.gov/misused for more information

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Quick Review of Guidance from Last Year’s Session…Do You Remember?

Special Education

Districts must track all federal funds expended in the Special Education or any fund. Use accounting software (operational units) to track both revenues and expenditures for each federal grant.

To comply with CMIA (Cash Management and Investment Act) if receiving FY2010 IDEA funds in 10 equal payments – you must be expending each month’s allocation within allowable timelines. A district may carryover part of the FY2010 allocation – notify DOE Office of Grants Management. All FY2011 IDEA funds will be paid on a reimbursement basis.

Special education MOE requires a district to expend at least as much as previous year; (1) in total local funds, (2) in total local and state funds; (3) in local funds per child count or (4) in local and state funds/per child count. If a district can document that it meet any one of the aforementioned four options – the district makes MOE.

Budgeting for SE FY2011: levy effort in formula is $1.20 per thousand; maximum levy allowed $1.40 per thousand; excess FB is 20% or $50,000, whichever is greater and uses STATE child counts as provided by DOE.

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New Revenue Codes in FY2010 for ARRA Funds

ARRA Revenue Codes

Revenue Code Name CFDA # Description

4195ARRA-Title I Grant to LEA 84.389A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for the educational needs of disadvantaged students (Title I, Part A ESEA of 1965).

4196ARRA - IDEA, Part B, 611 84.391A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for special education and related services.

4197ARRA - IDEA, Part B, 619 Preschool 84.392A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for preschool special education and related services.

4198ARRA - School Lunch Equip 10.579

Revenue received under the American Recovery and Reinvestment Act 2009 to obtain or replace equipment for school food service programs.

4199ARRA - State Fiscal Stabilization Funds 84.394

Revenue received under the American Recovery and Reinvestment Act 2009 to provide relief to state and local government budgets in order minimize and avoid reductions in education.

4193ARRA – State Diesel Grant 66.040

Revenue received under the American Recovery and Reinvestment Act 2009 to provide resources to reduce toxic emissions from diesel exhaust of public school buses.

4194

ARRA – Child Care & Development Block Grant 93.713

Revenue received under the American Recovery an Reinvestment Act 2009 to provide equipment to child care facilities to improve the quality of care.

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Annual Financial Reporting – Coding Concerns

Title I Expenditure Coding

Appropriate Use of Title I Expenditure Functions:

1273 – Title I Instructional Services 2116 – Title I Attendance & Soc. Work Activities 2128 – Title I Parental Involvement Activities 2214 – Title I Professional Development Services 2440 – Title I Program Administration 2548 – Title I Operation & Mtn. of Plant 2556 – Title I Student Transportation 2626 – Title I Program Evaluation 3711 – Title I Non-Public School Instructional Sv. 3721 – Title I Non-Public School Support Sv.

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Annual Financial Reporting – Coding Concerns

Examples of Coding Issues From FY2009 Annual Reports

May not use expenditure function 2227 to purchase classroom computers.

Coding for leases Capital lease vs Operating lease New guidance – special education fund may NOT be used for operating

leases; SDCL 13-16-6….”Capital outlay fund..meet expenditures which results in the acquisition or lease of or additional to real property, plant or equipment.”

Special Education Coding – allocate to SE disabilities in 2700s

Multi-District Coding – should use regular instructional function and object level rather than 1292.

Use of 1293 or 1294 – available only to Elk Mt. and Big Stone School Districts Use of 1121 – breakout middle/jr high expenditures from high school

Breakout Summer School to 1112/1122/1132 – allows for these costs to be excluded from cost per student

Coding for debt service payments; textbooks Review account activity for inappropriate function levels

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Annual Report FY2010 Changes

New Survey Submission

New Assurance

Special Education Maintenance of Effort (MOE) form will be added to the annual financial reporting site next fall.

Later next fall the FY2009 and then verified FY2010 special education financial data will be downloaded into this form. District business officials will again be asked to complete the calculation and submit to DOE to affirm their accountability regarding special education MOE.

The FY2010 annual report sign off will also include a new assurance statement regarding the auditing requirements. If the district is not in compliance it will be required to submit a plan of intent to come into compliance.

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Do you know about new administrative rules that have been proposed?

Reporting Deadlines

Preschool Enrollment

First reading of new administrative rules which established benchmarks (deadlines) for the submission of student data was done at the State Board of Education meeting in March. Amend ARSD 24:17:03:02 (establishes benchmarks for

student data submission – state aid fall enrollment count is final on last day of October)

Amend ARSD 24:17:03:06 (change # days for mandatory dropping of students, changed from 20 to 15 days)

New rule for minimum data requirements for submission of school calendars

New rule regarding start and end dates for student enrollments

Also first reading of new administrative rules regarding submission of preschool enrollment data from all public school districts.

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Contact Information

Phone number (605) 773-4748

Fax number (605) 773-6139 Email – personal

[email protected]

Address: Department of Education

800 Governors Drive

Pierre, SD 57501-2294

New summer work schedule: 7 a.m. to 6 p.m. Monday-Thursday (starting after Memorial Day)

Phone number (605) 773-5407

Fax number (605) 773-6139 Email – personal

[email protected]

Email – annual report files

[email protected]

Same work schedule:7:30 a.m. to 4:30 p.m. Mon-Fri

Susan Woodmansey Bobbi Leiferman

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New address, as of June 15, 2010 is: 800 Governors Drive, Pierre, SD 57501-2294 No change to fax number (605) 773-6139 or phone numbers!

South Dakota Department of Education is Moving!26

Questions?27

South Dakota Association of School Business Officials Spring C onference April , 2010

Documents

Transcript of South Dakota Association of School Business Officials Spring C onference April , 2010