Special_Education_Solving_the_Mystery_Together_1_
Document Sample
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
