Special Education Time to De-mystify the Mystery

1. Special Education � Time to �De-mystify� the Mystery! 03/22/07 Lori Ames, School Finance Consultant Kathy Guralski, School Finance Auditor

2. Agenda Explanation of Account Code Elements Coding of Various Delivery Models State Special Education Categorical Aid Categorical Aid Eligibility Adjustments Special Education Fiscal Reporting

3. Special Education 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

4. Special Education Expense Coding Function Number Identifies the special education program 152000 � Early Childhood 158000 � Cross Categorical 156600 � Speech & Language 159200 � Substitutes

5. Special Education 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

6. 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.

7. 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

8. 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

9. 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

10. Project 019-Non-Aidable Expense Example The school district purchases supplies for an early childhood program w/local dollars. Fund Object Function Project

11. 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.

12. 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

13. 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.

14. Project 599 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

15. 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

16. 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

17. 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)

18. 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

19. 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)

20. 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

21. 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)

22. 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

23. Coding of Various Delivery Models You have a special education cost: Directly incur costs Provide service to another district Purchase service from another school district 66.0301 cooperative agreement Purchase service from CESA/CCDEB

24. Directly incur costs Your district hires all staff involved in providing the special education service to your district only and directly incurs all related special education costs (i.e. transportation, supplies)

25. Directly incur costs Who incurs the expenditure? Your district What is the source to fund the cost? Grants (specifically IDEA) Categorical aid Local Equalization aid Property taxes Who are you receiving the funding from? DPI IDEA grant passed through DPI Categorical aid Transfer from general fund

26. Directly incur costs Example Hire CD teacher What is the source to fund the cost? Categorical aid 27E 158000 100/200 011 IDEA Grant 27E 158000 100/200 340 Local 27E 158000 100/200 019 Who are you receiving the funding from? DPI � Categorical SPED aid 27R 611 DPI � Flow Through 27R 730 Transfer from General Fund 27R 411000 110

27. Directly incur costs Example Incur supplies What is the source to fund the cost? IDEA Grant 27E 158000 410 340 Local 27E 158000 410 019 Who are you receiving the funding from? DPI � IDEA source 730 Transfer from General Fund 27R 411000 110

28. Directly incur costs Example Contract for OT services What is the source to fund the cost? Categorical aid 27E 218100 310 011 IDEA Grant 27E 218100 310 340 Local 27E 218100 310 019 Who are you receiving the funding from? DPI � Categorical SPED aid 27R 611 DPI � Flow Through 27R 730 Transfer from General Fund 27R 411000 110

29. Directly incur costs Example Contract for Special Transportation Services What is the source to fund the cost? Categorical aid 27E 256000 341 011 IDEA Grant 27E 256000 341 340 Local 27E 256000 341 019 Who are you receiving the funding from? DPI � Flow Through 27R 730 DPI � Categorical SPED aid 27R 611 Transfer from General Fund 27R 411000 110

30. Provide special education program for nonresident students Your district hires all staff involved in providing the special education service and directly incurs all related special education costs (i.e. transportation, supplies). Tuition is paid by resident district for student attending the program.

31. Provide special education program for nonresident students What is the source to fund the cost? Tuition Categorical aid IDEA grant Local Who are you receiving the funding from? Another district DPI IDEA grant Categorical aid Transfer from general fund 27R 411000 110

32. Provide special education program for nonresident students District A provides special education services District B � resident student open enrolls to Distr. A Example 1 District A receives flat tuition rate from District B Source 347 no matter what funds District B uses No deductible receipt on SPED report No special education aid transited to District B

33. Provide special education program for nonresident students Example 2 District A receives flat tuition rate plus additional cost from District B (No IDEA) Source 347 No deductible receipt on SPED report Special education aid transited to District B for amount of additional eligible cost (27E 491000 936 019)

34. Provide special education program for nonresident students Example 3 District A receives flat tuition rate plus additional cost from District B. District B uses partly IDEA funds Source 347 Deductible receipt on SPED report for portion of additional cost attributable to 011 expenditures and reimbursed by District B with IDEA grant dollars Special education aid transited to District B for amount of additional eligible cost not reimbursed by Flow Through dollars (27E 491000 936 019)

35. Expenditure Coding Expenditure Payment for Transit of State Special Ed Categorical Aid: To another LEA 27E 491000 936 019

36. Purchase service from another school district Your district does not incur the special education costs directly but rather sends students to participate in a program provided by another district.

37. Purchase service from another school district What is the source to fund the cost? Categorical aid IDEA grant Local Who are you receiving the funding from? DPI IDEA grant Categorical aid Transfer from general fund 27R 411000 110

38. Purchase service from another school district Example District A provides special education services District B � resident student open enrolls or attends District A

39. Purchase service from another school district Example 1 District B pays flat tuition rate to District A Local funds - 27E 437000 382 019 IDEA - 27E 437000 382 340 Example 2 District B pays flat tuition rate plus additional cost to District A (No IDEA funds) 27E 437000 382 019 Special education aid transited to District B for amount of additional eligible cost (Source 316)

40. Purchase service from another school district Example 3 District B pays flat tuition rate plus additional cost to District A. District B uses partly IDEA funds 27E 437000 382 019 27E 437000 382 340 portion of additional cost reimbursed by District B with IDEA grant dollars Special education aid transited to District B for amount of additional eligible cost not reimbursed by Flow Through dollars (source 316) Receipt of IDEA grant (source 730)

41. PURCHASED SERVICE When someone else is providing the instructional services costs should be recorded in 430 000. Typical Functions: 431 000 General Tuition 433 000 Co-Curricular 435 000 General Tuition Open Enrollment 436 000 Special Education - Non Open Enrollment 437 000 Special Education - Open Enrollment � Typical Objects: 370 Private Educational Services381 Payment to Municipality 382 Interdistrict Payment Within Wisconsin (Other districts, etc) 386 Payment to CESA 387 Payment of State (Universities, etc) 389 Payment to WTCS 390 Other Funds

42. PURCHASED SERVICE When someone else is providing the instructional services costs should be recorded in 430 000. Examples: Special Ed Payment to CESA 27E 436 000 386 Special Ed Payment to Another District (not O.E.) 27E 436 000 382 Non-Special Ed Payment to CESA 10E 431 000 386 Special Ed Payment to WTCS 27E 436 000 389 Special Ed - Open Enrollment 27E 437 000 382 Non-Special Ed Open Enrollment 10E 435 000 382 Non-Special Ed Payment to Private School 10E 431 000 370 (371, 372, etc.)

43. 66.0301 cooperative agreement Your district enters into a 66.0301 agreement to provide special education services to all districts within the cooperative agreement.

44. 66.0301 cooperative agreement One district is operator and fiscal agent Only fiscal agent may hire staff All program or project accounting is done on fiscal agent books Maintains records for financial and compliance audit Submits all reports (categorical aid claim) Fiscal agent policy clarify responsibilities of the fiscal agent and put in writing terms conditions where agreement would be terminated Administrative fees for the fiscal agent

45. 66.0301 cooperative agreement Who is paying vendor? Fiscal agent is making all purchases for the participating organizations The participating organization is also making purchases and submitting copies of all supporting documentation or transaction detail to the fiscal agent

46. Cost of program incurred CD Teacher Fiscal Agent Categorical Aid 27E 158000 100/200 011 Flow Through 27E 158000 100/200 340 Participating District Cannot hire staff Supplies Fiscal Agent Not Eligible Categorical Aid 27E 158000 410 019 Flow Through 27E 158000 410 340 Participating District Not Eligible Categorical Aid 27E 158000 410 019 Flow Through 27E 158000 410 317

47. Fiscal agent reimburses participating organization for any cost they incurred Supplies Fiscal Agent Not Eligible Categorical Aid 27E 436000/200000 382 019 Flow Through 27E 436000/200000 382 340 Supplies Participating District Not Eligible Categorical Aid 27R346 Flow Through 27R317

48. Fiscal agent bills all participating districts for their portion of the program Fiscal Agent Categorical Aid 27R 346 Participating District Not Eligible Categorical Aid 27E 436000,200000 382 019

49. Fiscal agent receives categorical aid in following year Fiscal Agent Categorical Aid 27R 611 Participating District

50. Purchase service from CESA/CCDEB Your district does not incur the special education costs directly but rather sends students to participate in a program provided by a CESA or CCDEB.

51. Purchase service from CESA/CCDEB CESA is operator and fiscal agent CESA may package a program Host district may hire staff All program or project accounting is done on fiscal agent books Maintains records for financial and compliance audit Submits all reports (categorical aid claim) Fiscal agent policy clarify responsibilities of the fiscal agent and put in writing terms conditions where agreement would be terminated Administrative fees for the fiscal agent

52. Purchase service from CESA/CCDEB Flow of activity Cost of program incurred CESA reimburses participating district for any cost they incurred CESA bills all participating districts for their portion of the program CESA files aid claims CESA receives federal grant in current year CESA receives categorical aid in following year CESA transits to participating districts their portion of the categorical aid

53. Cost of program incurred CD Teacher CESA hires Categorical Aid 27E 158000 100/200 011 Flow Through 27E 158000 100/200 340 Host District hires Not Eligible Categorical Aid 27E 158000 100/200 091 Flow Through 27E 158000 100/200 517 Supplies CESA incurs Not Eligible Categorical Aid 27E 158000 410 019 Flow Through 27E 158000 410 340 Host District incurs Not Eligible Categorical Aid 27E 158000 410 091 Flow Through 27E 158000 410 517

54. CESA reimburses participating district for any cost they incurred CD Teacher CESA Categorical Aid 27E 436000/200000 382 019 Identify 011 in package program Flow Through 27E 436000/200000 382 340 Host District Categorical Aid 27R 546 Flow Through 27R 517 Supplies CESA Categorical Aid 27E 436000/200000 382 019 Flow Through 27E 436000/200000 382 340 Host District Categorical Aid 27R 546 Flow Through 27R 517

55. CESA agent bills all participating districts for their portion of the program CESA Categorical Aid 27R 240 Participating District Categorical Aid 27E 436000,200000 386 019

56. CESA receives categorical aid in following year CESA Categorical Aid 27R 611 Participating District

57. Who are you receiving the funding from? Revenue Receipt for Transit of State Special Ed Categorical Aid Direct from DPI to �Fiscal Agent LEA� From Another School District Tuition and/or 66.0301 From a CCDEB From a CESA 27R 611 27R 316 27R 513 27R 516

58. Who are you receiving the funding from? Revenue Receipt for Transit of Federal Aid Direct from DPI to �Fiscal Agent LEA� From Another School District Tuition and/or 66.0301 From a CCDEB From a CESA 27R 730 27R 317 27R 517 27R 517

59. Who are you receiving the funding from? Revenue Receipt for Tuition/66.0301 Billings for Special Ed Services From another school district � non open enrollment From another school district � open enrollment From a CCDEB From a CESA 27R 346 27R 347 27R 536 27R 546

60. Who are you receiving the funding from? Revenue Receipt for Package Program billings for Special Ed services From a CCDEB From a CESA 27R 536 27R 546

61. Special Education Categorical Aid Entities eligible to receive state special education categorical aid: School Districts CESAs CCDEBs 2R Charter Schools

62. 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 2006-07 is based on expenditures from 2005-06)

63. Special Education Categorical Aid Categorical 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 for expenses that the other entity coded to an 011 project. The other entity transits your share of the aid to your district.

64. Special Education Categorical Aid Although many different function numbers may be used in fund 27, only the following functions may contain aidable expenses: (152000,156100,156200,156600,156700,156800,158000,159100, 159200, 159300, 174100, 174200, 212000, 213000, 214000, 215000, 218100, 218200, 223300, 256000, 270000, 436000) Eligible expenses are identified in the document titled �Special Education Claim Directions� http://www.dpi.wi.gov/sfs/xls/se_claim_directions.xls

65. Special Education Categorical Aid For a staff member�s salary and fringe benefits to be eligible for aid, he/she must hold the appropriate license for the function they are being expensed in. 152000 � license code subject 808 or 809 212000 � license code position 50 �Valid Reporting and License Codes for Special Education Staff� http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf

66. Special Education Categorical Aid Due to the high amount of eligible expenses, the amount of aid paid is prorated to approximately 28%. Aid is paid in multiple payments (Nov 15%, Dec 15%, Jan 15%, Feb 15%, March 15%, and June 25%)

67. 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.

68. Special Education Fiscal Reporting The current special education budget/annual software program is outdated and can no longer be updated. As a result, you will find that updates to the WUFAR and changes to special education law can not be reflected in the current report. Alternative reporting is sometimes used.

69. Common Errors in the Special Education Fiscal Report Total expenses in the special education annual report do not equal the total expenses reported in the full SAFR annual report. Grant payments and expenses between districts do not equal. Deductible receipts are not identified

70. SAFR vs. Sped Ed Annual Total expenses reported in the special ed annual report should tie to the total expenses reported in SAFR fund 27. Function level Object level

71. Grant Payments Between Entities For entity that is not the grant holder: Code expenses to the appropriate 315, 317, 515, 517 project number When reimbursed by the other grant-holding entity, receipt the funds into the corresponding source (315, 317, 515, or 517)

72. Grant Payments Between Entities For the district who is the grant-holder: Code the reimbursement to the appropriate project (340 or 599) In the special education report, answer �yes� to paying another LEA for services from your grants, identify the entity, and the amount paid

73. Grant Payments Between Entities How does DPI verify grant payments between entities? Special Education Report Edit Verify the amount paid and reported by the reimbursing district is equal to the amount reported by the non-grant holding district in the appropriate 315, 317, 515, or 517 project lines.

74. Grant Payments Between Entities Example District A purchases Early Childhood supplies ($100) that will ultimately be reimbursed by CESA using Flow-Thru Funds District A Expense: 27E.xxx.410.152000.517= $100 District A Revenue: 27R.517 = $100 CESA Expenses: 27.E.382.436000.340 = $100 Project 517 Expenses = 517 Revenues = Project 340 Expenses

75. Grant Payments Between Entities Example On the special education report: District A � enters nothing but the expense in the appropriate account number CESA - answers �yes� to paying another LEA for services from a grant, identifies District �A�, and the amount paid ($100)

76. Deductible Receipts 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.

77. Deductible Receipts 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.

78. Deductible Receipts How should entities report deductible receipts? The district incurring the original expense should: Code the original expense with the appropriate project. (mostly likely 011 and 019) Code the reimbursement to the appropriate 315, 317, 515, or 517 source code. In the special education report: Answer �yes� to receiving deductible receipts, identify the entity, and the amount receipted (only the 011 amount) On the 27D line, enter the amount of 011 expenses that were reimbursed by another entity with grant funds

79. Deductible Receipts How should entities report deductible receipts? The district reimbursing the original expense with grant dollars should: Code the reimbursement expense with the appropriate project. (mostly likely 340 or 599) In the special education report, answer �yes� to paying another LEA for services from their grants, identify the entity, and the amount paid

80. Deductible Receipts How does DPI verify deductible receipts? Special Education Report Edit Verify the amount paid and reported by the reimbursing district is equal to or less than the amount received and reported on the deductible receipt question and on the 27D lines by the entity incurring the original expense.

81. 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 District B Expense: 27E.xxx.382.436000.340 $700

82. 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)

83. Special Education 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 SAFR Budget Report.

84. 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_directions.xls

85. Resources Valid Teacher Licenses & Reporting Codes http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf �Special Education� Pupil Transportation http://www.dpi.wi.gov/sfs/se_report.html Special Education Media-Site Presentations http://media2.wi.gov/DPI/Catalog/Front.aspx?cid=2352cf23-e130-4a9c-b83f-8f8e90b15f41

86. Resources Open Enrollment http://www.dpi.wi.gov/sfs/doc/open_enrollment_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

87. 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_example.doc

88. Contacts Beverly Kraus 608-266-1089 beverly.krause@dpi.state.wi.us Lori Ames 608-266-3464 lori.ames@dpi.state.wi.us Kathy Guralski 608-266-3862 katherine.guralski@dpi.state.wi.us