oregon department of education november 2009. tomas flores - director, ode accounting services...
TRANSCRIPT
American Recovery and Reinvestment Act Reporting
Oregon Department of EducationNovember 2009
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Tomas Flores - Director, ODE Accounting ServicesOffice of Finance and Administration [email protected]
Barb Cruickshank – ODE Financial Reporting AnalystOffice of Finance and [email protected]
Michael Wiltfong – ODE State School Fund CoordinatorOffice of Finance and [email protected]
Today’s panel includes:
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1. Concerns and challenges from the first two collections
2. Upcoming fiscal monitoring and review
3. Next steps
ARRA reporting, lessons learned & where do we go from here.
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1) With late-breaking guidance and a very short timeline we were still able to develop a data collection to report stimulus impact
2) We were able to meet our federal reporting deadlines
3) We had 100% reporting compliance for all K-12 ARRA grants for the first quarter in 2009-10
4) The 2009-10 second quarter ARRA collections opens December 3, 2009 and closes December 30, 2009
ARRA reporting highlights…
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The Q1 2009-10 results are in and are available online at:
http://www.oregon.gov/recovery/
ARRA reporting highlights…
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Oregon’s recovery site is a great source for data and news…
ARRA reporting highlights…
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Oregon’s information can also be found on the federal Recovery Act site at:
http://www.recovery.gov
ARRA reporting highlights…
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The federal site also has interactive features and is a good source for updates and guidance.
ARRA reporting highlights…
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With all the challenges and short timelines, it was anticipated we would have some issues to address after the first quarter results were in…
ARRA reporting challenges…
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1) There are some concerns about items identified in the Infrastructure fields…
2) There are some concerns about items identified in the Vendor fields…
3) There are some concerns about the total number of FTE reported statewide…
SFSF reporting challenges…
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What is infrastructure according to Section 1512 and the U.S. Education Department?
“An infrastructure investment is financial support for a physical asset or structure needed for the operation of a larger enterprise. Therefore, infrastructure investments include support for tangible assets or structures such as roads, public buildings (including schools), mass transit systems, water and sewage systems, communication and utility systems and other assets or structures that provide a reliable flow of products and services essential to the defense and economic security of the United States, the smooth functioning of government at all levels, and society as a whole.”
SFSF and Infrastructure
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According to the USED definition of infrastructure, would you say the following qualify as infrastructure?
Salaries and benefits for teachers Text books Special Education Services Lawn service
SFSF and Infrastructure (continued)
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Guidance issued by the OMB provides the following definition:
A vendor:
(1) Provides the goods and services within normal business operations;
(2) Provides similar goods or services to many different purchasers;
(3) Operates in a competitive environment; (4) Provides goods or services that are ancillary to the
operation of the federal program; and(5) Is not subject to compliance requirements of the federal
program.
SFSF and Vendors
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According to the OMB definition of vendor, would you say the following qualify?
Charter school payments Retained teachers’ salaries Classroom supplies
SFSF and Vendors (continued)
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Please note:
Be very careful not to include items normally associated with routine maintenance as reimbursable GF expenditures under the ARRA
Charter school pass-through should not be included in the vendor fields
SFSF and Vendors (continued)
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Any questions up to this point?
SFSF and Vendors (continued)
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FederalReporting.gov will count jobs through FTE, not by positions. Thus, the estimate of the number of jobs reported should be expressed as “full-time equivalents” (FTE), which is calculated as total hours worked in jobs created or retained divided by the number of hours in a full-time schedule. Note the FTE estimates must be reported cumulatively each calendar quarter.
The September 10th guidance from the USED indicates a job may be counted regardless of whether or not the employee filling the position is paid for with Recovery Act funds as long as the job would not have been created or retained in the absence of the Recovery Act funding. That is, Recovery Act funds are being used to pay the employee or the availability of Recovery Act funds for other purposes is freeing up funds that are being used to pay the employee.
SFSF and FTE reporting
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Reported statewide FTE retained/created in Q1 2009-10 collection: 2,811 FTE
SFSF and FTE reporting (continued)
Total cumulative SFSF Infrastructure dollars: $1,084,200 0.39%
Total cumulative SFSF Vendor dollars: $1,816,742 0.66%
$2,900,942 1.05%
Total cumulative SFSF dollars available: $275,360,098
Balance: $272,459,156 98.95%
Total cumulative FTE reported in Q1 2009-10: 2,811
Average dollar amount per FTE: $96,926
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Per federal guidance, the following formula is used to calculate FTE :
Cumulative Recovery Act Funded Hours Worked (Qtr 1…n) = FTECumulative Hours in a Full-time Schedule (Qtr 1…n)
Example:
SFSF and FTE reporting (continued)
Cumulative Hours Worked Q1 Q2 Q3 Q4
Teacher with full-time schedule + summer teaching 520 1040 1560 2080
Full-time Schedule 520 1040 1560 1733
FTE: 1.00 1.00 1.00 1.20
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SFSF and FTE reporting (continued)
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SFSF and FTE reporting (continued)
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Note the denominator changes as we progress by each quarter
You may have to use several different FTE denominators in your equations depending on work schedules
Review FTE based on the amount of “available” ARRA funds
SFSF and FTE reporting (continued)
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The State is reporting expenditures on a cash basis. So, if you have not yet requested reimbursement from a grant, the “Amount Received” field on the data collection page for that grant will show “$0.” However, if you have created or retained jobs with the expectation of reimbursement, report the jobs created or retained in the appropriate fields in the data collection. Then provide a brief explanation in the narrative as to why you reported jobs but show no expenditures.
SFSF and FTE reporting (continued)
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Base your FTE calculations on the “but for” clause. It is but for ARRA funds that we were able to retain/create said amount of FTE.
FTE retention/creation is typically calculated on an annual projection when budgeting.
SFSF and FTE reporting (continued)
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Unfortunately, the quarterly stimulus reporting doesn’t satisfy the monitoring and reviewing requirements identified in the ARRA for the SEA.
The department will be implementing a financial data collection for the SFSF grant similar to the Annual Actual Expenditures collection.
This collection will likely be in place in the next few months.
SFSF and Fiscal reporting
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A few suggestions on how to account for ARRA funds:
The districts that have a ‘sub’ Area of Responsibility provided through their computer service provider may opt to assign a unique ‘sub’ AofR for the SFSF expenditures. This seems to be the least invasive method as the ‘sub’ AofR is dropped on the electronic submission, but it still allows those districts to track the unique expenditures.
Some districts are assigning a bogus AofR and having it roll to an allowable AofR for submission purposes. This works, but will complicate things and skew data if a subject, Special Education, Early Intervening Services or English as a Second Language AofR should need to be used.
SFSF & Fiscal reporting (continued)
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A few more suggestions on how to account for ARRA funds:
Other districts are setting up a separate 100 General Fund for SFSF monies only, i.e. Fund 101 or 102. Upon submission this fund would need to be rolled to Fund 100. This is relatively easy as long as the roll up process is automated, so the submitter does not have to remember each year.
All districts need to set up separate 200 Funds for the IDEA
Stimulus or Title I Stimulus Funds.
Some districts are just keeping a separate spreadsheet that tracks the SFSF expenditures.
SFSF & Fiscal reporting (continued)
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Any questions or concerns?
Time for a break?
ARRA and SFSF reporting
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Helpful information is available under the Special Education Funding website at the following URL:
http://www.ode.state.or.us/search/page/?=894
If you have questions, please contact:
Eric [email protected]
Guidance on reducing MOE level in 2009-10
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Paying Tuition for a Student NOT Included in Your District’s 1st Period Cumulative ADM Report:
Use Object code 371, 372, 373 or 374 – Tuition
A regular student attending an out-of-district charter school (although probably not paying tuition for this student as the charter school would become the resident district and receive State School Fund allotment). More likely a student placed out of state or a graduate receiving a scholarship.
PBAM coding updates
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Paying Tuition for a Student Included in Your District’s 1st Period Cumulative ADM Report:
1. Use Object code 310 - Instructional, Professional and Technical Services
A special education student attending a charter school that you are paying special education tuition fees
to the charter school.
PBAM coding updates (continued)
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2. In the cost per student calculations, (Report Card and AYP) Object series 37X is excluded.
3. If a student is not in the district’s 1st Period Cumulative ADM report, the expenditures associated with that student should and will be excluded.
PBAM coding updates (continued)
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New source code 2103, will be available for the 2009-10 Actuals Revenue collection, so ODE can pull this code/amount for use in the State School Fund formula calculation.
Senate Bill 64 was passed in the 2009 legislative session. It requires ESD’s to distribute any excess local revenue to their constituent districts. Excess ESD local revenue is local revenue (property taxes) which exceeds the calculated Formula Revenue for the ESD. These revenues that the school districts receive become part of the State School Fund formula (a deduction under Local Revenues) beginning in 2009-10.
At this time, this affects the 15 constituent districts for the following 3 ESD’s (Grant ESD, North Central ESD [Gilliam and Wheeler counties] and Wallowa ESD).
PBAM coding updates (continued)
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Source code 2102 - Education Service District Apportionment is no longer valid since ORS 334.350 to 334.400 has been removed.
Districts are currently using this code to record their ‘cash-in-lieu of’ local service plan, resolution services or service credits or for ESD contracts. The chart of accounts committee will change the title and definition to reflect general ESD revenues received by a school district.
PBAM coding updates (continued)
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Any questions or concerns?
PBAM coding updates (continued)
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Data collection for 2008-09 is currently open
1. We have had some challenges with saving text in the Biennium Overview field – it is my understanding this has been resolved
2. Remember to record expenditures for SIF under Area of Responsibility 350. That’s the only way ODE can review expenditure data
3. SIF carryover from 2008-09 can be spent until June 30, 2010. Unspent funds will need to be returned to the department
Questions?
School Improvement Funds
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What’s new for 2008-09:
2008-09 Annual ADM is just about ready to roll into SSF calculations and preliminary results indicate statewide Extended ADMw levels are very similar to last May – funding ratio shouldn’t swing much due to ADM.
2008-09 Staff position data is just about ready; however, I haven’t been able to do much analysis yet.
I plan to post separate estimates once this data is available as it will be easier to monitor district-level results and changes
State School Funds
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On to 800 lb gorilla in the room…
What will happen to the State School Funds in 2010-11 if the taxes established under HB2649 (individual) and HB3405 (corporate) are repealed in January’s special election?
State School Funds (continued)
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At this time we don’t know how the Legislature will react if one or both of the measures are defeated
◦ A “NO” vote on Measure 66 would result in reduced funding for state services by an estimated $472 million
◦ A “NO” vote on Measure 67 would result in reduced funding for state services by an estimated $261 million
State School Funds (continued)
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And then there’s the state’s revenue forecasts…
If the tax measures remain intact, we still need an ending-fund balance in excess of $300 million to activate the trigger. If this contingency is met, $200 million would go toward K-12 funding and the remainder would be added to the state’s ending-fund balance
State School Funds (continued)
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Questions/concerns:
1. Will the $2.94 billion appropriated for 2009-10 be adjusted if the tax measures are repealed?
2. What might the funding level be for 2010-11?
3. Will the state be able to meet the $2.57 billion SFSF MOE baseline?
4. How can I forecast what my funding levels might be given all the uncertainty?
State School Funds (continued)
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An easy formula to remember…
On an annual basis and based on current funding levels, every $1 million added to or subtracted from the State School Fund calculations equals an adjustment of approximately $1.45 per General Purpose Grant/Extended ADMw.
State School Funds (continued)
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Things to consider for next year’s funding
At this time:
1. I’m anticipating little change in the statewide Extended ADMw at this time
2. I’m anticipating little growth in statewide local revenues – forecasts indicate commercial will offset some of the residential growth
3. I’m anticipating little change in transportation costs next year unless fuel prices continue to increase
State School Funds (continued)
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Use 2009-10 SSF estimates as your baseline:
If the contingencies are met and we activate the trigger we will add approximately $120 million to the current state GF levels of $2.94 billion.
If we apply the $1.45/$1 million formula, the result would be approximately $174 added to your current GPG/ADMxw estimate.
State School Funds (continued)
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Use 2009-10 SSF estimates as your baseline:
If the contingencies are not met, and the trigger is not activated, state GF levels will at least be reduced from $3.06 billion to $2.86 billion.
If we apply the $1.45/$1 million formula, the result would be approximately $116 below your current GPG/ADMxw estimate.
Example: 2.94B - 2.86B = 80M 80 x 1.45 = 116
State School Funds (continued)
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Let’s say both tax measures are repealed and the GF ending-fund balance is dire, and the Legislature decides to rebalance the budget by reducing agency budgets based on their share of the General Fund. They may not have a choice. At approximately 40% of the total GF, K-12’s reduction could be around $293 million. If we subtract that amount from the $2.86 billion, the new amount would be around $2.57 billion, which is almost identical to funding levels in 2005-06.
It’s imperative we continue to message to the public what the potential could be if the tax measures are repealed.
State School Funds (continued)
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Let’s wrap this up with some positive news!
There are a number of indicators that show the recession has all but ended
Layoffs have slowed considerably
Confidence is slowly returning on a number of fronts
Hiring is still slow, but previous forecasts have indicated unemployment would be high until early-2010
Recessions require resourcefulness and there are many success stories out there
We faced similar challenges last year and we pulled through
State School Funds (continued)
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Any questions?
Issues not included in this presentation that you would like to discuss?
Thank you for attending!
State School Funds (continued)