kentucky department of education division of district support kde resources- new items
TRANSCRIPT
Kentucky Department of Education
Division of District Support
KDE RESOURCES-NEW ITEMS
• Changes to Indirect Cost Rate Process
• Updated KY School District Insurance Guide
• Updates to Affordable Care Act Guide
• Update to Redbook FAQ
• Financial Management Manual
NEW ITEMS
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Fiscal Year 2015 Rates
INDIRECT COST CALCULATIONS
• Federal review of rate methodology going on now
• Errors already found:
1. Apply the rates from July 1 – June 30
2. KBE must approve
3. Adjustment opportunity
• More changes could be required
FEDERAL REVIEW
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Rates must be applied the same way they are calculated
1. APPLY THE RATES JULY 1 – JUNE 30
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If a district used the FY 13 rate for Jul, Aug, or Sept 2013 the district must correct any overcharge
• Calculate the indirect costs using the FY 14 rate for those months
• Reduce future indirect costs in FY 14 to correct the total charged
1. APPLY THE RATES JULY 1 – JUNE 30
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• KBE has approved all district rates for FY 15
• On KDE website
2. KBE MUST APPROVE THE RATES
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• Districts must review and certify the rates by affirming adjustment amounts, if any
• Will be performed in Feb/Mar timeframe each year
3. ADJUSTMENT OPPORTUNITY
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KDE CONTACT INFORMATION
Susan Barkley Karen ConwayAssistant Director Educational Financial AnalystDivision of District Support Division of District Support15th Floor, 500 Mero Street 15th Floor, 500 Mero StreetFrankfort, KY 40601 Frankfort, KY 40601Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. [email protected] [email protected]
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KENTUCKY SCHOOL DISTRICT INSURANCE GUIDE - UPDATE
The following information has been revised in Section 1 of the Insurance Guide
Procurement Multiyear Awards
Insurance Consultant
Agent of Record
This section also includes a step by step guide on page 10. “Are you Bid Law or MPC?
REVISED INSURANCE GUIDE INFORMATION
MULTIYEAR AWARDS
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Board has right to change Agent of Record at any time.
Insurance policies can be cancelled at any time by the district, in conformity with the cancellation provision in the contract
The insurance carrier should send you a renewal notice with a price for the upcoming year(s). This will assist the district in determining whether or not to re-bid the contract.
INSURANCE CONSULTANT/AGENT OF RECORD
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Insurance consultants may be used by the district but the service should be obtained through a bid.
Must make a cost/benefit determination for hiring an insurance consultant
Districts are not required to issue an agent of record letter, and an agent of record letter is not required to obtain quotes.
Selection of Agent of Record should be based on services, not price.
The Agent of Record is prohibited from providing a ‘rebate’ on the premium paid to the insurance company
The following information has been revised in Sections 2, 3, 4 and 6 of the Insurance Guide
Auto and Fleet Insurance General Liability Insurance Educators’ Legal Liability Insurance
Coverage Amount
Unemployment Insurance
REVISED INSURANCE GUIDE INFORMATION
AUTO AND FLEET INSURANCE
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All districts must purchase additional liability and indemnity insurance for KISTA covered buses.
GENERAL LIABILITY INSURANCE
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Districts should ensure that authorized volunteers are covered under the General Liability Insurance
EDUCATORS’ LEGAL LIABILITY INSURANCE
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This insurance protects a school district from certain legal claims stemming from inappropriate or illegal actions by staff, teachers, or board members (KRS 160.160)
Coverage amounts vary by school district. Neither state statute or administrative regulation prescribe coverage amounts, so local boards should determine how much insurance to purchase
UNEMPLOYMENT INSURANCE
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Public school districts must provide unemployment insurance benefits to their employees (KRS Chapter 341)
Since unemployment insurance is provided through payment of a ‘tax’ instead of a premium, this service cannot be bid by an insurance company
The following information has been revised in Sections 7 and 9 of the Insurance Guide
Workers’ Compensation Insurance Student Accident Insurance
REVISED INSURANCE GUIDE INFORMATION
WORKERS COMPENSATION INSURANCE
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Policies are written in two parts.
The first provides coverage for injuries, regardless of fault, that occur to the employees acting within the course and scope of employment.
The second part provides liability coverage for action brought by employees, family members, relatives, and third parties against districts.
STUDENT ACCIDENT INSURANCE
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• A Student Accident Insurance plan may be adopted in an effort to reduce general liability losses. Participation may result in a reduction in premiums. This is a secondary coverage to family insurance plans to help with co-payments and deductibles and will only pay eligible medical expenses not covered by those plans.
• The Kentucky School District Insurance Guide can be located on KDE’s website at www.education.ky.gov. Click on the following links:
• District/School Support
• Overview
• District Financial Reporting
• Finance Officer Training, Insurance Guidelines, etc….
REVISED INSURANCE GUIDE (APRIL 2014)
Susan Barkley
Assistant Director
Division of District Support
15th Floor, 500 Mero Street
Frankfort, Ky 40601
Phone: (502) 564-3846, extension 4437
Renee Thomas
Educational Financial Analyst
Division of District Support
15th Floor, 500 Mero Street
Frankfort, Ky 40601
Phone: (502) 564-3846, extension 4454
KDE CONTACT INFORMATION
UPDATES TO AFFORDABLE CARE ACT
GUIDE
AFFORDABLE CARE ACT• Transition Relief for 2015:
• Large Employer Status
• Substantial Compliance
• Clarification of full-time status
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LARGE EMPLOYER• 2015 = 100 or more FT & FTEs
• 2016 = 50 or more FT & FTEs
• Most KY school districts are large
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SUBSTANTIAL COMPLIANCE• Threshold before penalty assessment:
• 2015 = 70% of full-time employees
• 2016 = 95% or no more than 5 full-time employees
• Penalty is
• Number of FT employees minus 30
• Multiplied by $167 per month
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CLARIFICATION OF FULL-TIME STATUS
• Hours of Services will not include:
• Hours worked as bona fide volunteers
• Seasonal employees < 6 months
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REVISED AFFORDABLE CARE ACT IMPLEMENTATION GUIDE • Affordable Care Act Implementation Guide Revised May 2014 is
located on KDE’s website at www.education.ky.gov . Click on the following links:
• District/School Support• Overview• District Financial Reporting• Health and Life Insurance Benefits and Flexible Spending
Accounts
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KDE CONTACT INFORMATION
Susan Barkley Melissa SullivanAssistant Director Educational Financial AnalystDivision of District Support Division of District Support15th Floor, 500 Mero Street 15th Floor, 500 Mero StreetFrankfort, KY 40601 Frankfort, KY 40601Phone: (502) 564-3846, ext. 4437 Phone: (502) 564-3846, ext. [email protected] [email protected]
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REDBOOKUPDATED FAQS
TRANSPORTATION FOR STUDENT GROUPS
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• Costs directly and solely attributable to the group only
• Driver salary/benefits
• Fuel
• Other items if appropriately calculated and documented
• NO depreciation
• Don’t simply use the cost per mile for SEEK purposes
KDE CONTACT INFORMATION
Susan BarkleyAssistant DirectorDivision of District Support15th Floor, 500 Mero StreetFrankfort, KY 40601Phone: (502) 564-3846, ext. [email protected]
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FINANCIAL MANAGEMENT MANUAL
FINANCIAL MANAGEMENT MANUAL
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• An electronic “table of contents” for many finance topics and resources
• On KDE website at:
Finance Officer Training, Insurance Guidelines, Key Financial Indicators, Financial Management Calendar, Finance Newsletters and Who Does What in DDS
• Includes:– Revenue Sources– Budgeting and Financial Accounting– SBDM Financial Management– Restricted Funds/Balances– Debt Management– Procurement– Miscellaneous topics– Copies of reports to be filed
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