special education – fiscal overview session 1 kathy guralski, school finance auditor lori ames,...
TRANSCRIPT
Special Education – Fiscal Overview
Session 1
Kathy Guralski, School Finance Auditor
Lori Ames, School Finance Consultant
11/07/06
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Agenda
Sources of Special Education Funding
Overview of Expense Coding
Reporting of Fund 27 Expenses
State Special Education Categorical Aid
Potential Aid Eligibility Adjustments
Special Education Funding Sources
State Special Education Categorical Aid High Cost Categorical Aid Federal Special Education Aid Medicaid State Equalization Aid Local Property Tax
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
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
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
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
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
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.
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
Special Education Expense Coding
Function Number Identifies the special education program
152000 – Early Childhood 158000 – Cross Categorical 156600 – Speech & Language 159200 – Substitutes
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
Special Education Expense Coding
Project number
Identifies the aid eligibility status and funding source
011 317
019 340
091 515
092 517
315 599
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
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
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)
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)
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)
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
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
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
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
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.
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.
Special Education Categorical Aid
Entities eligible to receive state special education categorical aid:
School Districts
CESAs
CCDEBs
2R Charter Schools
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)
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
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
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 809212000 – license code position 50
“Valid Reporting and License Codes for Special Education Staff”
http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf
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%)
Special Education Categorical aid on “HOLD?”
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
“No Valid License”
PI 1202
Filed by district with DPI in fall
List by staff, FTE, and teaching position
No updates during the year
“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.
“No Valid License”
“No Valid License” listing on June 30th
Available in reporting portal
“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.
“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
“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
“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
“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
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
Allocation of salaries and benefits to fund 27 January 12, 2006 Letter
http://www.dpi.wi.gov/sfs/ltrjan12_06.htmlTypes of activities that would be eligible for
special education aidMethodologies 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
Reporting allocation of salaries and benefits to fund 27
Special Education
General Ledger Claim FormSocial Worker Function 212000 Function 212000
Project 011
Psychologist Function 215000 Function 215000
Project 011
Nurse Function 214000 Function 299999
Project 019
Guidance Counselor
Function 213000 Function 299999
Project 019
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)
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
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
Resources License Listing – Go to School Finance
Reporting Portal, District, Financial Data Home
“Special Education” Pupil Transportationhttp://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
Contacts
Beverly Kraus [email protected]
Lori Ames [email protected]
Kathy Guralski [email protected]
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