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

South Dakota Association of School Business Officials Spring C onference April , 2010. State Aid Changes & Annual Reporting. Presenters:. Department of Education: Susan Woodmansey Bobbi Leiferman. Goal for Today’s Conference Session.

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

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  1. South Dakota Association of School Business OfficialsSpring ConferenceApril, 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

  4. 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.

  5. Changes to State Aid in FY2011 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%.

  6. Changes to State Aid in FY2011 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

  7. Changes to State Aid in FY2011 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

  8. 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 beexpended 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.

  9. 2010 Legislative Changes for Special Education 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.

  10. 2010 Legislative Changes for Special Education 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).

  11. 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.

  12. 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?

  13. 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

  14. 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.

  15. 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

  16. 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/

  17. 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).

  18. 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 oig.hotline@ed.gov • 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

  19. 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.

  20. New Revenue Codes in FY2010 for ARRA Funds ARRA Revenue Codes

  21. 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.

  22. 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

  23. 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.

  24. 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.

  25. Contact Information Susan Woodmansey Bobbi Leiferman • Phone number (605) 773-4748 • Fax number (605) 773-6139 • Email – personal susan.woodmansey@state.sd.us • 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 bobbi.leiferman@state.sd.us • Email – annual report files decadata@state.sd.us • 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 ofJune 15, 2010 is: 800 Governors Drive, Pierre, SD 57501-2294 No change to fax number (605) 773-6139 or phone numbers!

  27. Questions?

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