Special Education - Fiscal Overv by fjhuangjun

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									   Special Education –
   Solving the Mystery
        Together
              08/17/07

Lori Ames, School Finance Consultant
            Agenda
• Special Education Funding Sources
• Special Education Expense Coding
• State Special Education Categorical Aid
• Adjustments to Aidable Expenses
• Special Education Fiscal Reporting
    Special Education Funding Sources
•   State Special Education Categorical Aid
•   High Cost Categorical Aid
•   Federal Special Education Aid
•   Medicaid
•   State Equalization Aid
•   Local Property Tax
State Spec Ed Categorical Aid
• Aidable costs may include, but are not
  limited to:
  – Salary/Fringe Benefits for:
     • Most Special Education Teachers and Assistants
     • Speech/Physical/Occupational Therapists
     • School Psychologists, Social Workers, Guidance
       Counselors, and Nurses
     • Special Education Administrative Staff
     • Special Transportation
  High Cost Categorical Aid
• School districts are eligible for aid if the district
  incurred, in the previous school year, more than
  $30,000 of non-administrative costs for providing
  special education and related services to a child,
  and those costs are not eligible for
  reimbursement under the state special
  education categorical aid program, the federal
  Individuals with Disabilities Education Act, or the
  federal Medicaid program
            http://www.dpi.wi.gov/sfs/highcost.html
Federal Special Education Aid/Grants
• The Individuals with Disabilities Education
  Act (IDEA) originally authorized funding of
  40% of average per-pupil expenditures to
  support special education services for
  children with disabilities. Most of the
  funding is distributed to local school
  districts in the form of flow-through aids or
  other discretionary grants.
     http://www.dpi.wi.gov/sped/fedgrant.html
            Medicaid
• A fairly small source of revenue for
  school districts is insurance
  reimbursement provided through the
  combined federal/state Medicaid
  program.
 http://dpi.wi.gov/sfs/doc/medicaid.doc
    State Equalization Aid
• Equalization is a state “cost sharing
  formula” which reduces local district
  reliance on local property taxes.
• The state shares in most costs incurred by
  Wisconsin school districts that are not
  reimbursed by other revenue sources.
  Eligible costs include special education
  and related services.
     http://www.dpi.wi.gov/sfs/equalaid.html
      Local Property Tax
• Special Education and related services not
  reimbursed through one of the programs
  mentioned above are funded by local
  property taxes.
• The extent to which local property taxes
  are used to fund special education costs in
  a particular district varies greatly and
  depends largely on the amount of state
  equalization aids received by the district.
Spec Ed Expense Coding

• All special education expenses,
  regardless of funding source must be
  accounted for in fund 27
• The function number and the project
  number are the most critical elements
  of the total account code
        Special Education
         Expense Coding
• Function Number
  – Identifies the special education program
    •   152000 – Early Childhood
    •   158000 – Cross Categorical
    •   156600 – Speech & Language
    •   159200 – Substitutes
  Spec Ed Expense Coding
• The Business Office and the Special
  Education Department will need to work
  closely together to ensure that staff
  members are being charged to the
  appropriate program or function.
• Appropriate staff licensure is important
  when assigning staff to various functions
          http://www.dpi.wi.gov/sfs/doc/valid_code_se.doc
        Project Coding
• The key to identifying the correct
  project code is ……

 ……understanding that the project
 code identifies how the expense is to
 be ultimately funded.
     Project Number – 011
• Use this project on all original object 100 –
  900 expenditures when:
  – the LEA is using only local dollars to fund the
    expenditure (no grant money reimbursement)

  – the expenditure is directly state special
    education categorically aidable
     Project 011-Aidable
     Expense Example
• The school district incurs salary &
  benefit expenses for an appropriately
  licensed Early Childhood teacher,
  funded w/ local dollars.

  Fund    Object    Function   Project
    27   100/200    152000      011
    Project Number - 019
• Use this project on all original object
  100-900 expenditures when:
  – the LEA is using only local dollars to fund
    the expenditure (no grant money
    reimbursement)

  – the expenditure is NOT directly state
    special education categorically aidable
  Project 019-Non-Aidable
     Expense Example
• The school district purchases supplies
  for an early childhood program w/local
  dollars.

  Fund    Object    Function   Project
    27     410      152000      019
     Project Number - 340
• Use this appropriate IDEA grant project
  code of “341-349” on all original object
  100-900 expenditures when:
  – This expenditure is charged directly to an
    IDEA (flow-through, entitlement, etc..) grant.

  – The LEA name on the grant is the same as
    this LEA.
      Project 340 Grant
      Expense Example
• The LEA purchases supplies for an
  early childhood program that is
  reimbursed by grant dollars direct to
  this LEA.

  Fund    Object    Function   Project
   27      410      152000      340
     Project Number - 599
• Use this project code on all original object
  100-900 expenditures when:
  – This expenditure is charged directly to a grant
    such as AODA, Drug Free, etc….

  – The LEA name on the grant is the same as
    this LEA.
     Project 599 Grant
     Expense Example
• The LEA purchases supplies for an
  early childhood program that is
  reimbursed by non-IDEA grant dollars
  direct to this LEA.

  Fund   Object    Function   Project
   27     410      152000      599
 Project Number – 315/317
• Use these projects, 315 (State) or 317
  (Federal) on all original object 100-900
  expenditures when:
  – The expenditure is then charged to a
    state/federal grant of another LEA

  – The LEA name on the state/federal grant is
    another school district (NOT this LEA)
    Project 315/317Grant
     Expense Example
• The LEA purchases supplies for an
  early childhood program that is
  reimbursed by another school district
  using federal grant dollars

  Fund    Object    Function   Project
   27      410      152000      317
 Project Number – 515/517
• Use these projects, 515 (State) or 517
  (Federal) on all original object 100-900
  expenditures when:
  – The expenditure is then charged to a
    state/federal grant.

  – The LEA name on the state/federal grant is a
    “CESA” or a “CCDEB”, NOT this LEA
    Project 515/517Grant
     Expense Example
• The LEA purchases supplies for an
  early childhood program that is
  reimbursed by a CESA or CCDEB
  using federal grant dollars

  Fund   Object    Function   Project
   27     410      152000      517
     Project Number - 091
• Use this project on all original object 100-
  900 expenditures when:
  – The LEA is using only local dollars to fund the
    expenditure (no grant money reimbursement)

  – The expenditure is directly reimbursed by a
    payment from CESA (using CESA local
    dollars – no grant money)
 Project 091 CESA Package
     Program Example
• The host district of a CESA package
  program purchases supplies for an
  early childhood program that is
  reimbursed w/local dollars by CESA.

  Fund   Object    Function   Project
   27     410      152000      091
     Project Number – 092
• Use this project on all original object 100-
  900 expenditures when:
  – The LEA is using only local dollars to fund the
    expenditure (no grant money reimbursement)

  – The expenditure is directly reimbursed by a
    payment from a CCDEB (using CCDEB local
    dollars – no grant money)
    Project 092 CCDEB
 Package Program Example
• The host district of a CCDEB package
  program purchases supplies for an
  early childhood program that is
  reimbursed w/local dollars by a
  CCDEB.
  Fund   Object    Function   Project
   27     410      152000      092
Why is Coding Important?

• DPI uses the account codes to
  determine aidable expenses and
  ultimately calculate your district’s state
  special education categorical aid
    How Do I Know If An
    Expense is Aidable?
• Refer to the “Special Education Categorical
  Aid Claim Directions” document for
  definitions of aidable expenses.

http://dpi.wi.gov/sfs/xls/se_claim_directions.xls
        Special Education
         Categorical Aid
• Entities eligible to receive state special
  education categorical aid:
  – School Districts

  – CESAs

  – CCDEBs

  – 2R Charter Schools
       Special Education
        Categorical Aid
• Based on the information reported in the
  special education annual report, the
  district’s special education categorical aid
  is calculated
• the aid is paid based on prior year aidable
  expenditures (aid paid in 2007-08 is based
  on expenditures from 2006-07)
Special Education Categorical Aid
• Categorical aid may be received either
  directly or indirectly:
  – Direct: Your district receives aid directly from
    DPI as a result of an expense coded to an
    011 project
  – Indirect: Your district reimburses another
    entity with local funds for expenses that the
    other entity coded to an 011 project. The
    other entity transits your share of the aid to
    our district.
      Special Education
       Categorical Aid
• Due to the high amount of eligible
  expenses, the amount of aid paid is
  prorated to approximately 29%.
• Aid is paid in multiple payments (Nov
  15%, Dec 15%, Jan 15%, Feb 15%,
  March 15%, and June 25%)
    Special Education Fiscal
           Reporting
• Districts are required to submit both a
  special education budget and annual
  report that is currently separate from the
  full SAFR budget and annual report
• The special education budget/annual
  program is located on either a staff
  member’s individual hard drive or on a
  network drive within the district.
 Spec Ed Fiscal Reporting

• District data is entered in the resident
  program.
• Since the report is not web-based, the
  district must create a text file containing
  the data. (part of the program)
• The text file is emailed to:
    DPIsfsreports@dpi.state.wi.us
Adjustments to Aid Eligible
       Expenses
• No Valid License – staff members are
  not appropriately licensed for the
  program.
• Additional Questioned Cost -

• Inappropriate allocation of
  salaries/benefits - social workers,
  psychologists, nursing, and guidance
       No Valid License

• PI 1202
  – Report filed by district with DPI in fall

  – List by staff, FTE, and teaching position

  – No updates during the year
         No Valid License

• “No Valid License” listing on June 30th
  – Identifies staff not properly licensed for the
    teaching assignment listed on the PI 1202

  – Auditor required to report to DPI salaries,
    benefits, and account structure (even in funds
    other than 27) for all individuals on “no valid
    license” listing.
        No Valid License

• “No Valid License” listing on June 30th
  – Available in reporting portal
         No Valid License

• “No Valid License” listing on June 30th
  – When teaching position of an individual was
    incorrectly reported on PI-1202
     • Obtain, for auditor, a written representation from
       the Special Education Director or other appropriate
       person stating that the reported assignment (PI-
       1202) was incorrect. Include previously reported
       teaching assignment and correct teaching
       assignment for individual.
        No Valid License
• “No Valid License” listing on June 30th
  – DPI special education licensing follows up
    on the licensing status
     • May result in phone call to district

  – Aid is withheld until DPI special education
    licensing approves the individual
Additional Questioned Cost

• “Valid License” listing on June 30th
  – Available in Reporting Portal

• Auditor performs a payroll test and
  determines if salary and related
  benefits are properly reported for staff
  on the list
  Additional Questioned Cost

• Any individual not reported in proper account
  coding for their teaching assignment (per PI-
  1202 and valid license list) is:
  – Reviewed by Auditor for correct teaching assignment
    (through inquiry)
     • If teaching assignment is in agreement with license – salaries
       and benefits are moved to appropriate WUFAR accounts (no
       filing with DPI)

     • If teaching assignment is not in agreement with license –
       salaries and benefits are reported to DPI as questioned cost
Additional Questioned Cost

• DPI special education licensing follows
  up on the licensing status
  – May result in phone call to District

• Aid is withheld until DPI special
  education licensing approves the
  individuals
    Allocation of Salaries and
       Benefits to Fund 27
• Salaries and benefits of professionals working in
  both the regular education and special education
  areas must be allocated between fund 10 and
  fund 27 based on time and costs
  – School Social Worker
  – School Psychologist
  – School Nurses (Registered Nurses, licensed by WI
    Department of Regulation and Licensing)
  – School Counselors
   Allocation of Salaries and
      Benefits to Fund 27
• January 12, 2006 Letter
  – http://www.dpi.wi.gov/sfs/ltrjan12_06.html
  – Types of activities that would be eligible for
    special education aid
  – Methodologies in determining time and cost
     • Must be done for each individual staff member
       claimed
     • Documentation must be maintained
     • Must be rational and defensible method of
       allocation
  Allocation of Salaries and
      Benefits to fund 27
                                  Special Education
                General Ledger    Claim Form
Social Worker   Function 212000    Function 212000
                                   Project 011

Psychologist    Function 215000    Function 215000
                                   Project 011

Nurse           Function 214000    Function 299999
                                   Project 019

Guidance        Function 213000    Function 299999
Counselor                          Project 019
    Allocation of Salaries and
       Benefits to Fund 27
• Identify these costs in the cover e-mail with the
  upload file attachments as follows:
   – For (LEA Name), the “011-state aidable” guidance
     counselor and school nurse salary/fringe costs
     reported in function 299 999 under project “019” on
     the PI 1505SE are:
      • School Guidance Counselor
         – Object 100 – Salary: (Amount)
         – Object 200 – Fringes: (Amount)
      • School Nurse
         – Object 100 – Salary: (Amount)
         – Object 200 – Fringes: (Amount)
  Allocation of Salaries and
     Benefits to Fund 27
• Included in Auditor payroll test will be
  individuals from the categories of
  psychologist, social worker, guidance
  counselor, and nurse
• Supply auditor with instructions to staff on
  how to determine what time is aidable
• Provide auditor with documentation of
  methodology used
    Allocation of Salaries and
        Benefits to fund 27
• Auditor reports to DPI as questioned cost
  the salaries and benefits of individual in
  question
• DPI special education licensing follows up
  on the licensing status
  – May result in phone call to District

• Aid is withheld until DPI special education
  licensing approves the individual
  Spec Ed Fiscal Report
• Common Errors in the Special
  Education Annual Report:
  – Spec Ed Annual = SAFR Annual Report
  – Grant payments and expenses between
    entities do not equal.
  – Deductible receipts are not identified
 Spec Ed Annual = SAFR
         Annual
                     Spec Ed            SAFR
218200.100           21,000             21,000
218200.200            4,200             4,200
218200.300            3,000             2,500
218200.400             800                800
218200.500            1,000             1,000
             Total   30,000             29,500

        Function total out of balance
 Spec Ed Annual = SAFR
         Annual
                     Spec Ed           SAFR
218200.100           21,000            21,000
218200.200            4,200            4,200
218200.300            3,000            3,800
218200.400             800                 0
218200.500            1,000            1,000
             Total   30,000            30,000

         Object Total out of Balance
Grant Payments Between Entities
• Example Assumptions:
  – 3rd party grant scenario

  – District A incurs the original expense to be
    reimbursed

  – District B is the grant holder

  – Federal flow-thru grant
Grant Payments Between Entities
 VENDOR                                                      DPI


                    District B files DPI Grant Claim &
                   Receives Reimbursement – Source
                                     730




       District A – Incurs Original
      Vendor Expense - Project 317
                                      District B – Reimburses District A
                                      using Federal Flow-Thru Funds –
         District A – Receipts                    Project 340
      Reimbursement-Source 317
Grant Payments Between Entities
• On the special education report:
  – District A enters nothing but the expense
    in the appropriate account number, project
    317

  – District B answers “yes” to paying another
    LEA for services from a grant, identifies
    District A, and the amount paid

                District A Project 317 =
      District A Source 317 = District B Object 340
Grant Payments Between Entities
• Example Assumptions:
  – 3rd party grant scenario

  – District A incurs the original expense to be
    reimbursed

  – CESA is the grant holder

  – Federal flow-thru grant
Grant Payments Between Entities
 VENDOR                                                   DPI


                     CESA files DPI Grant Claim &
                   Receives Reimbursement – Source
                                 730



                                                  CESA

       District A – Incurs Original
      Vendor Expense - Project 517
                                    CESA – Reimburses District A using
                                     Federal Flow-Thru Funds – Project
         District A – Receipts                      340
      Reimbursement-Source 517
Grant Payments Between Entities
• On the special education report:
  – District A enters nothing but the expense
    in the appropriate account number, project
    517

  – CESA answers “yes” to paying another
    LEA for services from a grant, identifies
    District A, and the amount paid

               District A Project 517 =
       District A Source 517 = CESA Object 340
       Special Education Report
   Not Aidable
27.000.211.152000.011                          Aidable
                                              27.000.386.436000.019

                         27.000.550.218100.517

 27.000.110.152000.011
                                27.000.310.221300.340


      27.000.410.221300.599
                                              27.000.410.156600.317

                   27.000.212.152000.011
                                But what happens if another entity
                                      27.000.220.152000.011
                                   reimburses your district for an
27.000.310.156600.515            expense coded to 011 using grant
                                              funds?
     Deductible Receipt
• What is a deductible receipt?
  – A deductible receipt is created when an
    entity incurs an aidable expense (coded to
    project 011) that is ultimately reimbursed
    by another entity with grant funds.
     Deductible Receipt
• Why does DPI care about deductible
  receipts?
  – DPI should not pay special education
    categorical aid on an aidable expense
    (coded to project 011) that has been
    reimbursed with state or federal grant
    funds.
     Deductible Receipt
         Example
• District A provides Early Childhood
  services to multiple districts. District
  B’s share of the program include salary
  ($400), benefits ($200), and materials
  ($100). District B reimburses District A
  using federal grant money.
     •   District A Expense: 27E.xxx.110.152000.011 $400
     •   District A Expense: 27E.xxx.2xx.152000.011 $200
     •   District A Expense: 27E.xxx.410.152000.019 $100
     •   District A Revenue: 27R.317 $700
     Deductible Receipt
         Example
• On the Special Education Report:
  – District A:
     • Answers “yes” to “did your district receive
       deductible receipts”
     • Identifies District “B” and the amount of the
       deductible receipt $600
     • Enters $600 in 27D152000 000 011
  – District B:
     • Answers “yes” to paying another LEA for
       services from a grant, identifies District “A”,
       and the amount paid ($700)
      Deductible Receipt-Open
            Enrollment
• District A serves the student and bills
  District B.
  – District B pays with local funds only
     • Flat Rate – no deductible receipt

     • Additional Cost – no deductible receipt
      Deductible Receipt-Open
            Enrollment
• District A serves the student and bills
  District B.
  – District B pays with grant funds
     • Flat Rate – no deductible receipt

     • Additional Cost – deductible receipt for the portion
       of the additional cost originally charged by District
       A to an 011 project number.
     Spec Ed Reporting
      Changes Ahead!
• The finance team is currently in the
  design phase of creating a new special
  education fiscal report.
• The goal is to integrate the fund 27
  detail with the full SAFR Budget/Annual
  Report beginning with the 2008-09
  Budget Report.
           Resources
• WUFAR (full document & expense matrix)
  http://www.dpi.wi.gov/sfs/wufar.html
• Special Education Transaction Coding
  http://www.dpi.wi.gov/sfs/doc/sped.doc
• Special Education Claim Directions
  http://www.dpi.wi.gov/sfs/xls/se_claim_dire
  ctions.xls
              Resources
• Valid Teacher Licenses & Reporting Codes
  http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf

• “Special Education” Pupil Transportation
  http://dpi.wi.gov/sfs/xls/setrpl00.xls

• Special Education Media-Site Presentations
  http://media2.wi.gov/DPI/Catalog/Front.aspx?cid=23
  52cf23-e130-4a9c-b83f-8f8e90b15f41
            Resources
• Open Enrollment
  http://www.dpi.wi.gov/sfs/doc/open_enroll
  ment_wufar.doc
• Function 430000
 http://www.dpi.wi.gov/sfs/doc/funct_430.doc

• Coop Agreement – 66.0301
  http://www.dpi.wi.gov/sfs/coop_agree.html
            Resources
• Fiscal Agent Requirements
  http://www.dpi.wi.gov/sfs/doc/fisagnt.doc
• Fiscal Agent Agreement Account Coding
  http://www.dpi.wi.gov/sfs/xls/fisagagree.xls
• Fiscal Agent-Example of Level 3
  Documentation
  http://www.dpi.wi.gov/sfs/doc/fisagnt_exa
  mple.doc
             Contacts
• Lori Ames 608-266-3464
     lori.ames@dpi.state.wi.us
• Kathy Guralski 608-266-3862
     kathryn.guralski@dpi.state.wi.us
• Janette Gosdeck 608-267-9218
     janette.gosdeck@dpi.state.wi.us

								
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