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Special Education – Fiscal Overview Session 1

Special Education – Fiscal Overview Session 1. Kathy Guralski, School Finance Auditor Lori Ames, School Finance Consultant 11/07/06. Audio Difficulties?. Make sure the volume is turned up (volume button beneath the speaker’s picture)

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Special Education – Fiscal Overview Session 1

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  1. Special Education – Fiscal OverviewSession 1 Kathy Guralski, School Finance Auditor Lori Ames, School Finance Consultant 11/07/06

  2. Audio Difficulties? • Make sure the volume is turned up (volume button beneath the speaker’s picture) • Make sure the volume on the computer is turned up (volume icon located on the right hand side of your computer taskbar) • Contact your IT department

  3. Agenda • Sources of Special Education Funding • Overview of Expense Coding • Reporting of Fund 27 Expenses • State Special Education Categorical Aid • Potential Aid Eligibility Adjustments

  4. Special Education Funding Sources • State Special Education Categorical Aid • High Cost Categorical Aid • Federal Special Education Aid • Medicaid • State Equalization Aid • Local Property Tax

  5. Special Education 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 http://www.dpi.wi.gov/sfs/se_aid.html

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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.

  11. 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

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

  13. 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

  14. Special Education Expense Coding • Project number • Identifies the aid eligibility status and funding source • 011 317 019 340 091 515 092 517 315 599

  15. Project Number – 011 • Use this project on all original object 100 – 900 expenditures paid to a vendor 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

  16. Project Number - 019 • Use this project on all original object 100-900 expenditures paid to a vendor 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

  17. Project Number - 091 • Use this project on all original object 100-900 expenditures paid to a vendor when: • The district is using only local dollars to fund the expenditure (no grant money reimbursement) • The expenditure is directly reimbursed by a check from CESA (using CESA local dollars – no grant money)

  18. Project Number - 092 • Use this project on all original object 100-900 expenditures paid to a vendor when: • The district is using only local dollars to fund the expenditure (no grant money reimbursement) • The expenditure is directly reimbursed by a check from a CCDEB (using CCDEB local dollars – no grant money)

  19. Project Number – 315/317 • Use these projects, 315 (State) or 317 (Federal) on all original object 100-900 expenditures paid to a vendor 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)

  20. Project Number - 340 • Use this appropriate IDEA grant project code of “341-349” on all original object 100-900 expenditures paid to a vendor 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

  21. Project Number – 515/517 • Use these projects, 515 (State) or 517 (Federal) on all original object 100-900 expenditures paid to a vendor 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

  22. Project Number - 599 • Use this project code on all original object 100-900 expenditures paid to a vendor 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

  23. Resources for Expense Coding • 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

  24. 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.

  25. 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. • The School Financial Services Team is currently in the design phase of creating a new special education fiscal report.

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

  27. 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)

  28. Special Education Categorical Aid • Not all expenses accounted for in fund 27 are aidable, but the special ed annual report should tie to the total expenses reported in SAFR fund 27. • Aid is paid to the entity that is incurring the original/direct expense – meaning the entity that is employing and paying the individual

  29. 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

  30. 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

  31. 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%)

  32. Special Education Categorical aid on “HOLD?”

  33. Special Education Categorical aid on “HOLD?” • What may cause categorical aid to be withheld on an individual’s salaries and benefits • “No Valid License” • Inappropriate allocation of salaries/benefits to fund 27 for social workers, psychologists, nursing, and guidance

  34. “No Valid License” • PI 1202 • Filed by district with DPI in fall • List by staff, FTE, and teaching position • No updates during the year

  35. “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.

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

  37. “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.

  38. “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

  39. “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

  40. “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

  41. “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

  42. 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

  43. 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

  44. Reporting allocation of salaries and benefits to fund 27 Special Education General Ledger Claim Form

  45. Reporting 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)

  46. Audit of 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

  47. Inappropriate allocation of salaries/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

  48. Resources • License Listing – Go to School Finance Reporting Portal, District, Financial Data Home • “Special Education” Pupil Transportation http://www.dpi.wi.gov/sfs/se_report.html • Special Education Media-Site – Session 2 – November 17 @ 10:00am http://media2.wi.gov/dpi/viewer/?cid=2352cf23-e130-4a9c-b83f-8f8e90b15f41

  49. 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

  50. Questions? • Click on the “ask” button above the speaker box, type in your question, and press “send” • If you are asking a question after the live presentation, please insert your email address so a response can be sent directly to you.

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