Transcript asbo Spring Conference April, 2010

1
South Dakota Association of
School Business Officials
Spring Conference
April, 2010
State Aid Changes & Annual Reporting
2
Presenters:
Department of Education:
Susan Woodmansey
Bobbi Leiferman
3
Goal for Today’s Conference Session
Good teaching must be slow enough so that it is not confusing, and fast
enough so that it is not boring.
Sidney J. Harris
Changes to State Aid in FY2011
4
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.
Changes to State Aid in FY2011
5
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%.
Changes to State Aid in FY2011
6
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
Changes to State Aid in FY2011
7
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
2010 Legislative Changes for Special Education
8
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.
2010 Legislative Changes for Special Education
9
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.
2010 Legislative Changes for Special Education
10
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).
Other Legislative Changes
11
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.
2010 Legislation – Failed but Maybe Not Forgotten?
12
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?
Budgeting for FY2011
13
General Aid

DOE has prepared a number of documents to assist in
budgeting for fiscal year 2011:


An updated State Aid Issue Brief (a narrative explanation
of the funding formula and its history)


Special
Education

http://doe.sd.gov/stateaid/index.asp
Estimate Sparsity Funding


http://doe.sd.gov/stateaid/index.asp
History of Per Student Allocations and Levies

Sparse Districts
http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp
http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp
Budgeting for Special Education

http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp
Annual Financial Reporting - ARRA
14
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.
Monitoring of FY2010 SFSF
15
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
More Annual Financial Reporting – ARRA
16
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/
More on ARRA Funds
17
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).
Contact Information for ARRA Fraud
18
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
Quick Review of Guidance from Last Year’s
Session…Do You Remember?
19
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.
New Revenue Codes in FY2010 for ARRA Funds
20
ARRA
Revenue
Codes
Revenue
Code
Name
CFDA #
4195
ARRA-Title I Grant to
LEA
Description
Revenue received under the American Recovery and Reinvestment Act
2009 to provide short term funding (2 to 3 years) for the educational needs
84.389A of disadvantaged students (Title I, Part A ESEA of 1965).
4196
ARRA - IDEA, Part B,
611
Revenue received under the American Recovery and Reinvestment Act
2009 to provide short term funding (2 to 3 years) for special education and
84.391A related services.
4197
ARRA - IDEA, Part B,
619 Preschool
Revenue received under the American Recovery and Reinvestment Act
2009 to provide short term funding (2 to 3 years) for preschool special
84.392A education and related services.
4198
ARRA - 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.
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.
4199
ARRA - State Fiscal
Stabilization Funds
4193
ARRA – 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.
Annual Financial Reporting – Coding Concerns
21
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.
Annual Financial Reporting – Coding Concerns
22
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
Annual Report FY2010 Changes
23
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.
Do you know about new administrative rules that
have been proposed?
24
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.
Contact Information
25
Susan Woodmansey
Bobbi Leiferman

Phone number (605) 773-4748

Phone number (605) 773-5407

Fax number (605) 773-6139

Fax number (605) 773-6139


Email – personal
[email protected]

Email – personal
[email protected]
Address:
Department of Education

800 Governors Drive
Email – annual report files
[email protected]
Pierre, SD 57501-2294

New summer work schedule:
7 a.m. to 6 p.m. Monday-Thursday
(starting after Memorial Day)

Same work schedule:
7:30 a.m. to 4:30 p.m. Mon-Fri
26
South Dakota Department of Education is Moving!
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!
27
Questions?