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School District Revenues. SF101A-School Finance - Revenues. Benny L. Gooden. ASBO. July 9, 2012. Reasons for Attendance. ASBO Certification Credit Personal Knowledge Base Revenue portion of Tier 1 initial training Tier 1 annual update or Tier 2 annual training

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School District Revenues

SF101A-School Finance - Revenues

Benny L. Gooden

ASBO

July 9, 2012


Reasons for attendance
Reasons for Attendance

  • ASBO Certification Credit

  • Personal Knowledge Base

  • Revenue portion of Tier 1 initial training

  • Tier 1 annual update or Tier 2 annual training

  • Professional Interaction with Colleagues

  • To avoid the wrath of the State Board of Education

  • To add excitement to an otherwise dull life


Plan for the Day

  • Sources of Revenue

  • Issues in making projections

  • Revenue Trends

  • Related Issues/Legislative Updates etc.

  • Issues which lead to Trouble


Legal Authority for School District Revenue in Arkansas

  • Constitution of Arkansas (1874 as Amended)

    • Article 14

      § 1. Free school system

      § 2. School fund—use –Purposes

      § 3. School tax—Budget—Approval of tax rate

      Amendments 11, 40 & 74

      § 4. Supervision of schools


Legal Authority…continued

  • Constitutional Amendments

    • Amendment 40—Budget publication/restricted use of school funds

    • Amendment 59—Tax rate rollbacks after reappraisals

    • Amendment 74—25 mill uniform rate of tax

    • Amendment 79—Property tax relief


Selected Statutory Guidelines for School District Finance-

  • Powers & Duties of Board of Directors

    • Attend meetings of school board.

    • Determine mission and direction of district.

    • Adhere to state and federal laws.

    • Enact, enforce and obey policies.

    • Employ staff.

    • Understand and oversee school district finances.

    • Manage facilities.

    • Approve curriculum and ensure that it is taught.

    • Visit district schools and classrooms.

    • Obtain training and professional development.

    • Do “all other things necessary and lawful..”

      § 6-13-620 A.C.A.

Revised 2009


(6)Understand and oversee school district finances required by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

  • (A) Reviewing, adopting and publishing the school district’s budget;

  • (B) Overseeing and monitoring the school district finances, including:

    • Revenues

    • Expenditures

    • Investments

    • Debts

    • Obligations

    • Inventory

    • Real Property


(6)Understand and oversee school district finances …… by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

  • (C) Borrowing money as necessary, but in no case shall the school board of directors permit the school district to end the fiscal year with a negative legal balance;

  • (D) Entering into contracts for goods and services necessary to operate the school district;

  • (E) Buying, selling, renting, and leasing real property and personal property on behalf of the school district;

  • (F) Receiving, reviewing, and approving each annual financial audit report and presenting it to the public.


Selected by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

Statutory Guidelines…continued

  • Publication of budget--Amt. 40 § 6-13-622

  • Appointment of Treasurer § 6-13-701

  • Deposit of School Funds § 6-20-222

  • Requirements for financial reporting§ 6-20-2103 & § 6-20-2201 et.seq

    Records as required by ADE

  • District debt-current & bond § 6-20-401

    § 6-20-801 et.seq. § 6-20-1201 et.seq.

  • Public School Funding Act § 6-20-2301 et.seq.

Penalty


Selected by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

Statutory Guidelines..continued

  • Board disbursing officer § 6-13-618

  • Best Financial Practices § 6-15-2301

  • Classified School Employee Minimum Salary Act § 6-17-2203

  • Teacher compensation guidelines § 6-17-2104 and § 6-17-2403

  • Independent Audit deadlines § 6-20-180

  • Training Requirements § 6-20-1805

  • Educational Excellence Trust Funds § 6-5-307


Certifications by Superintendent by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:Two of many…..

6 pages

8 pages

X 9

X 9


State revenue local revenue

State Revenue by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:Local Revenue

Arkansas schools receive more than 90% of resources in these categories.


The Big Question: by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:


Total Revenue by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

How muchTotal Revenue will your school district receive in 2012-2013?

What effect does Legislative action or changes in local economic conditions have on resources for the coming year?

  • ADM increased or decreased

  • Assessed valuation changed


Guessing is by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:not Preferred

  • Using systematic techniques to develop reasonable and defensible estimates of school revenue…


Why are by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:accurate projections important?

  • To provide a stable fiscal environment

  • To gain the confidence of board of education, staff and community

  • To verify the revenue calculations of others

  • To avoid fiscal distress


All categories of revenue must be considered
All Categories of Revenue by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:Must be Considered

  • Local

  • State

  • Federal


Local revenue
Local Revenue by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:


Factors Determining Local Revenue by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

  • Assessed Valuation

  • Tax Rate (Millage)

  • Collection Rate

  • Other Local Revenue/Miscellaneous Funds


Assessed Valuation by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

  • Real Property Residential Business/Industrial Agricultural/Timber

    Minerals

  • Personal Property Business Vehicles/Aircraft Livestock

  • Utility Property


Abstract of Assessed by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:ValuationSource: County Assessor/Clerk


Current Taxes/ by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

40% 36%Pullback

From Abstract of Assessments

Source: ADE Website


How Does 40% Pullback work in Arkansas school finance? by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

ASSESSMENT YEAR

JAN

JAN

JAN

JAN

JAN

60% Current

40% Pullback

40% Pullback

60% Current

40% Pullback

60% Current

60% Current

40% Pullback

Ending Soon !!!!!

JULY

JULY

JULY

JULY

FISCAL YEAR

Each FISCAL year contains: Taxes due and payable in that FY (Current Tax)

Taxes due and payable in the next FY (40% Pullback)


A 40 pullback transition vocabulary
A 40% Pullback by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:Transition Vocabulary

  • Revenue receipts: include local taxes actually collected from July 1-June 30 regardless of assessment year.

  • Deferred: revenues in excess of 40% to which district is entitled for future fiscal year.

  • Accrued: revenues included in the imputed 40% from the future fiscal year, but not actually received.

  • Phase-out: Adjustments made to accrued revenues during a period of up to ten (10) years following June 30, 2012.

Know status

Know status

Defined by § 6-20-401


Transition options to end 40 pullback
Transition options to end 40% Pullback by law to ensure alignment with the school district’s academic and facility needs and goals, including without limitation:

  • Immediate—Absorb either accrual or deferral revenue in the current year budget.

    Advantage: This makes change in one year.

    Disadvantage: There will be an apparent increase or decrease in the legal fund balance.

  • Phase in—Accrual may be reduced by 10% per year, i.e. 36% in 2011-2012, 32% in 2012-2013, etc.

    Advantage: Effect in one year is minimized.

    Disadvantage: Accounting can become problematic for a number of years.


Revenue estimation after the 40 pullback concept is eliminated
Revenue Estimation after the 40% Pullback Concept is eliminated

  • Look at collection trends from several past years.

  • Determine tax revenue received as current taxes in the July 1-December 30 period.

  • Determine tax revenue received as current taxes in the January 1 – June 30 period.

  • Make estimates based on past history-TRENDS.

  • Consider changes in assessed valuation in estimating for future fiscal year.


During the 40 pullback transition remember
During the 40% Pullback Transition—Remember: eliminated

  • The immediate or gradual transition away from 40% pullback does not result in additional revenue—nor does it result in less revenue.

  • The effect is only a matter of timing for the recognition of revenues resulting from ad valorem taxes.

  • This point must be made clear to educators, school board members and the public.


Abstract of Assessment eliminated

ADE Certification Signature

ADE Certification Signature


Assessment Abstract Issues eliminated

  • Signatures by appropriate officials

  • Accuracy of Data

  • Amendments during the year

If you don’t check it, who will?


Establishing eliminatedTrend Data

  • Assessed Valuation-by Category

  • Collection Rates Current Tax Delinquent Tax

    Amendment 79-Homestead Credit Excess Commissions 36% 40% Pullback—If Applicable

  • Interest on taxes held by Collector

  • Timing of Revenue Receipts

  • Average Daily Membership (ADM)


Historical eliminated

Trends

in

Assessed

Valuation

Growth in dollars and

Percent

5-year averages


Trends are eliminated

Influenced by

A variety of

Factors

Economy

Unusual activity

Appraisal Cycles

Mistakes


Review Trends in Context eliminated

  • Past History

  • Environmental Changes

  • Economic Growth or Decline

  • Population Changes

  • Reappraisal Cycles

  • Legislative Action


Assessed Valuation/Tax Rate eliminated

  • Verify Assessed Valuation as Certified by County Assessor and Clerk to ADE

  • Verify Tax Rate as Certified by the Quorum Court in accordance with ballot language approved at Annual School Election

  • Verify millage allocation as approved by voters


Other Property Tax Issues eliminated

  • Mandatory Reappraisals

    • 3-year vs. 5-year cycle

    • Limits on annual additions to individual property assessments Amendment 79

    • “Frozen” assessments for those 65/over

  • Amendment 59 rollbacks

  • 10 % maximum increase from all sources


Review of Assessed Valuation eliminated From A Sample District

  • Year 1

    Real $ 94,533,310

    Personal $ 36,722,125

    Utility$ 6,562,305

    Total $ 137,817,740

  • Year 2

    Real $ 83,400,923

    -11,132,387 -11.77%

    Personal $ 48,638,552

    +11,916,427 +32.45%

    Utility $ 7,092,685

    + 530,380 +8.08%

    Total $ 139,132,160

Increase of $ 1,314,420 +.95%


Property Taxes Include: eliminated

  • Current Taxes *

  • Amendment 79 Replacement

    Homestead Credit (* Included in both current taxes and 36% pullback)

  • 36% Pullback *

  • Delinquent Taxes

  • Excess Commissions

  • Interest on taxes held by Collector

Ending Soon

Or NOT

All these comprise “Net Revenue”

All used to calculate 98% factor for Foundation Aid


Collection Rate eliminatedDetermination

  • Delinquent Taxes

  • Tax Collector/Treasurer

  • Excess Commissions

  • Assessor

  • Never Collected Total Tax – Deductions = Current Tax & 36% Pullback

    • Monitor Property Tax Rebate Payments

Why is

This Important?

Ending Soon


Estimating Collection Rate eliminated

1.48% Never Collected

3.49% Delinquent

.75% Tax Collector/Treasurer

2.10% Excess Commissions

2.0 % Assessor’s Office

90.18% Current Taxes/36% Pullback

Includes Homestead Rebate

100% Total

NOW

Ending Soon

Source: Fort Smith Public Schools


Tax Rate Considerations eliminated

  • Timeline for Budget of Expenditures and Proposed Tax Rate Publication

  • 60 days prior to annual school election

  • Multiple County Districts

  • Consolidation/Annexation of Districts

    Multiple rates in merged districts

  • ADE Certification of Bonded Debt Payment and Available Mills


Property Tax Timelines eliminated

July Jan July Jan July

Publication

Publication

Publication

Tax Pmt Deadline

Tax Pmt Deadline

Assessments

Assessments

Tax Bills Issued

Tax Bills Issued

School Election

School Election

Fiscal Year

Fiscal Year

Fiscal Year

Year 1

Year 2


Calculation of Revenue: eliminatedChecking your estimate

  • Assessed Valuation X Millage Rate

    Total Property Tax Revenue X Collection Rate

    Allocated as: Current Taxes 36% Pullback

    Amdt. 79-Homestead Credit Plus: Delinquent Taxes Excess Commissions

    Important: Total must not exceed 100%

    of collection in any year!

Ending Soon


Millage Rates-Schools eliminated

  • 25 mills for maintenance and operation (Amendment 74)

  • Additional maintenance and operation (Approved by Voters)

  • Debt Service Mills to pay debt (Approved by Voters)

    Regular bonds/Mandatory Call bonds

  • Dedicated Maintenance and operation (Approved by Voters)


Voted Millage vs. Actual Application- A Sample District eliminated

  • Voted Millage

    • 6.90 Debt Service

    • 25.00 M & O

    • N/A Dedicated M & O

    • 31.90 Total

  • Actual Application

    • 6.45 Required Debt

    • 25.45 M & O Avail.

      • 25.00 Amdt 74

      • N/A Ded/M & O

      • .45 Excess Debt

      • 31.90 Total


Property Tax Reminders eliminated

  • 36% Pullback is at 100% Collection

  • Delinquent tax, Excess Commissions, Fee Office Costs and taxes not collected are taken from Current Tax Estimates

  • M & O Tax Rate must be 25 mills or higher

    The BEST estimate is one supported by past collection history!

Ending Soon


Other Local Revenue eliminated

  • Payments in lieu of Taxes

  • Mineral leases, Severance Tax, etc.

  • Contributions

  • Interest

  • Private, Foundation, Corporate Grants

  • Rentals of district facilities

  • Fees for tuition, services, etc.

  • All Activity Funds *Maintained Separately

  • Vending/beverage contracts


Payments in lieu of taxes
Payments in Lieu of Taxes eliminated

  • Act 9 of 1960 authorized issuance of exempt bonds to finance industrial development.

  • Cities and Counties must authorize with notification of affected taxing entities.

  • Payments in lieu of taxes are negotiable.

  • Payments made by financing recipients are distributed by the County Collector.

  • Revenues are included as “miscellaneous funds” for the purpose of Foundation Aid calculations.


Miscellaneous Funds eliminatedDefined by Act 825 of 2007

Clarified by Act 266 of 2011

  • Federal forest reserves

  • Federal grazing rights

  • Federal mineral rights

  • Federal impact aid

  • Federal flood control

  • Wildlife refuge funds

  • Severance taxes

  • Revenue in lieu of taxes

  • Local sales and use taxes dedicated to Education

§ 6-20-2303


Miscellaneous Funds included in Foundation Aid calculation eliminated

  • Average of previous five-years

  • If a district did not receive a category of miscellaneous funds in the previous year, then that category of miscellaneous funds will not be included in the calculation for the next school year.

  • Payments in lieu of taxes only are counted in proportion of URT to total millage rate.

  • Calculations are made annually.


Local Revenue Issues to Cause eliminatedInsomnia—or Worse

  • Reappraisal of residential property with a decline in value

  • (Re)determination of the reappraisal cycle

  • Litigation regarding gas well values/determination of well values

  • Taxpayer challenges to values

  • Economic impact of recession

  • Tax Increment Financing Districts (TIF)


Local Revenue-Recording eliminated

  • Pentamation Reports from Levels II and III

  • Recorded using Revenue Code Series 1xxxx

Refer to Financial Accounting Handbook provided by ADE to secure latest revenue codes. Additional changes may be announced in Commissioner’s Memos.


State revenue
State Revenue eliminated


ADE State Aid Notice eliminatedSource: Arkansas Department ofEducation

Keep all State Aid Notices for future reference


Revised State Aid Notice eliminated

Compare changes to original and ask

“Why?”


State Foundation Aid is a combination of: eliminated

EXAMPLES

Local Funds per student based on local assessed valuation x URT x 98%

$ 2,816

State Funds to bring total aid to

established adequacy level per student

$ 3,451

$ 6,267*

Rate for 2012-2013


Amendment 74 eliminated Approved in 1996

  • 25 mill Uniform Tax for Maintenance and Operation @ 98% Collection Assessed Valuation X .025 X 98%

This revenue source should grow 3-4% annually in a normal economic environment as statewide assessed valuations increase. Based on the Arkansas Supreme Court decision, state general revenue can be decreased when URT revenues exceed required funding for “adequacy.”


2012-2013 Foundation Funding per ADM eliminated

$ 6,267*

Aid Per Student

The Foundation Aid per Student is not subject to adjustment for fluctuations in state revenue. However a higher amount must be approved by the General Assembly each biennium as “Adequacy” is defined.


State Foundation Aid eliminatedfor each school district is determined by:

  • Legislative Appropriation for Foundation Aid per student—Determined to be “ADEQUATE”

  • Uniform Tax (Amendment 74) Assessed Valuation x 25 mills x 98%

  • 100 % of Miscellaneous Funds (Five-year average)

  • TOTAL÷Prior Year’s ADM (3 quarters)

  • Used to compute Total Aid


2012-2013 Example eliminated

Foundation Aid “Adequacy” $ 6,267

AV $139,132,160 X URT .025 X 98%

$ 3,408,737

Miscellaneous Funds $ 73,200

TOTAL LOCAL RESOURCES $ 3,482,437

3 Qtr. ADM for prior year 1,236.54


2012-2013 Example…cont. eliminated

Total Local Resources $ 3,482,437

÷

Students (ADM) 1,236.54

LOCAL RESOURCES PER ADM $ 2,816

Adequate Foundation Aid $ 6,267

State Aid per ADM $ 3,451

Total State Foundation Aid ?????


2012-2013 Example…cont. eliminated

Total State Aid Per ADM $ 3,451

X

Prior Year ADM (3 Qtr.) 1,236.54

=

Total State Foundation Aid $ 4,267,299

Compare local calculations to State Aid Notice. Minor variations will likely result from rounding.


Requirements for Tracking Foundation Aid as it relates to Expenditures

  • A unique Fund/Source of Fund Code is required for the several categories of expenditures paid with Foundation Aid and selected other state funds.

  • Refer to FIN-09-047, FIN-10-008 and FIN-11-080 to clarify coding requirements.

  • The purpose of this distinction is purportedly to determine the actual amount of educational services purchased by the level of state funding determined as “Adequacy”.


Warning Signs Expenditures

Combinations of:

  • Declines in Average Daily Membership (ADM)

  • Changes in Assessed Valuation

All require individual analysis in each district


Counting Students Expenditures

  • Enrollment-Represents the number of students eligible to attend at any time.

  • ADA-Average Daily Attendance Represents the average number of students in attendance on each day.

  • ADM-Average Daily Membership Represents the average number of enrolled students in attendance and absent on each day.

Each statistic results in slightly different results in determining resources/expenditure per student


Student Data Calculation Expenditures

ADA ∑ Days Attended

Days in Session

Average Daily Attendance

=

∑ (∑ Days Attended)+(∑ Days Absent)

Days in Session

ADM

=

Average Daily Membership

  • Aggregate

  • Cumulative

  • Date Specific

Enrollment =


What about the 98% collection assumption used to compute Foundation Aid?

  • Beginning in 2007-2008 Act 272 of 2007 provides a “guarantee” of funding equal to the 98% collection from local ad valorem taxes as anticipated in the State Foundation Aid formula.

  • Adjustments will be made following calculations of actual collections.

  • Supplemental payments will be made from a Legislative appropriation.

  • Refunds of tax collections in excess of 98% will be required.

  • Act 633 of 2011 modified data collection.


State funding categories unrestricted
State Funding Categories Foundation Aid?Unrestricted

  • Foundation Funding Aid

  • General Facilities Funding

  • Supplemental Millage Incentive Funding

  • Special Needs Isolated Adequacy

  • Declining Enrollment Funding

  • Declining Enrollment Adequacy

  • Student Growth Funding

  • 98% of URT


State funding categories restricted
State Funding Categories Foundation Aid?Restricted

  • Alternative Learning Environment

  • English Language Learners

  • NSL State Categorical Funding

  • NSL Growth Funding

  • Professional Development

  • Bonded Debt Assistance

  • Isolated Funding

  • Special Needs Isolated Funding

  • Special Needs Isolated Transportation

  • Educational Excellence Trust Fund


National School Lunch Students (NSLA) Foundation Aid?

  • Eligibility for free or reduced-price meals

    • 90% or greater at $1,549 per student

    • 70% but less than 90% at $1,033 per student

    • Less than 70% at $517 per student

Paid in 2012-2013 based on student data from the previous October 1.

  • Consideration for districts with “significant growth”

  • Defined as 1% increase in three successive years.

  • Transition process for increase or decrease--3 years


Alternative Learning Environment Foundation Aid?(ALE)

  • Based on $4,228 per ADM for FTE students enrolled during the previous school year.

Subject to rules promulgated by the State Board of Education.


Secondary Vocational Center Foundation Aid?

  • Based on $3,250 per student served during the prior year.

Maybe—Unless the pie is divided into smaller pieces


English-language learner Foundation Aid?(ELL)

  • Based on $305 per student identified as an English-language learner

  • Proficiency is subject to “state-approved English proficiency assessment instrument”

Subject to rules promulgated by State Board of Education.


Professional Development Funding Foundation Aid?

  • Based on an amount up to $ 52 per student as determined by the previous school year ADM. ($42.38 in 2011-2012)

Subject to rules promulgated by State Board of Education


Additional Reporting Required for Selected Revenue Sources Foundation Aid?

  • General Facilities Funding

  • Distance Learning

  • Gifted and Talented

  • Student Growth

  • Declining Enrollment

  • Special Education Catastrophic Occurrences

  • Special Education Services

  • Technology Grants

  • Debt Service funding supplement

6-20-2201 A.C.A.


Spending requirements for categorical funds act 1220 of 2011
Spending Requirements for Categorical Funds Foundation Aid?Act 1220 of 2011

  • Effective by June 30, 2012

  • At least 85% of NSLA Funds must be spent

  • Transfer authority among categories is granted

  • Commissioner may grant waivers

  • Balance in categorical funds shall not exceed 20% of annual allocation

  • Provisions for 10% annual reduction required

  • Failure to comply results in deduction

Subject to rules promulgated by State Board of Education


Academic Facilities Partnership Funding Foundation Aid?

  • Requires current local school district facility master plan

  • Establishes standards for maintenance

  • Requires that 9% of Foundation funding be dedicated for facility costs

  • Establishes standards for academic facilities

  • Provides for designation of school districts in “academic facilities distress” with various sanctions and corrective action

  • Provides for state inspections

  • Provides Partnership funding for approved facilities


Academic Facilities Wealth Index Computation Act Foundation Aid?

Applicable wealth index is based on the value of one mill per student in each school district as determined by total assessed valuation of taxable real, personal and utility property divided by the ADM.

The results for all school districts are ranked from lowest to highest and allocated into percentiles, and assigning the 100th percentile to the district corresponding to the percentile of student millage rankings of 99.5 percentile.

State shares result from subtracting school district’s percentage share from 100% and assuming that districts at or above the 99.5 percentile are at that level.


Student Growth Funding Foundation Aid?

  • Beginning in 2007-2008 Student Growth Funding is computed on a quarterly basis by comparing each quarter ADM with the three quarter ADM of the preceding year.

  • Payments will be made based on a quarterly computation.

  • Increases based solely on consolidation or annexation are excluded.

  • A final adjustment will be made in the following fiscal year.

  • Overpayments must be refunded.


Declining Enrollment Funding Foundation Aid?

  • Requires a decline in ADM over the two immediately preceding school years.

  • Funding equals the difference between the average of the two immediately preceding year’s ADM and the ADM for the previous year multiplied by the current year Foundation funding amount.

No district shall receive both declining enrollment funding and student growth funding during the same fiscal year.


Other State Aid Issues Foundation Aid?

  • Educational Excellence Trust Fund Increase above highest year since 1991 must be used to increase salaries to certified staff including FICA and Teacher Retirement matching

  • Salary Schedule Requirements

  • Required Expenditures in targeted categories

Increases cannot be used for increments based on education or experience in 2005-2006 and thereafter. (Act 2165 of 2005)


State Revenue-Recording Foundation Aid?

  • Pentamation Reports recorded in Levels II and III reporting

  • Record State revenues using Revenue Code Series 3xxxx

Refer to ADE Handbook for correct code designations. Revisions will be announced through Commissioner’s Memos.


Federal revenue
Federal Revenue Foundation Aid?


Federal Aid Issues Foundation Aid?

  • Basic Premise: Federal Aid is categorical and tied to specific programs and purposes. If the Act approved by Congress, CFR language or ADE written interpretations do not authorize a particular use, Federal revenues must be segregated and used as specifically authorized.


Key Federal Items Foundation Aid?

  • Safeguard signed grant award letter.

  • Account for revenues as directed by ADE with Source of Funds code.

  • Be aware of timing….State FY, Federal FY, carryover provisions.

  • Keep careful records for all employees—especially pro-rated employees paid from Federal funds.


Federal Aid—Recording Foundation Aid?

  • Pentamation Reports recorded in Levels II and III reporting

  • Record Federal revenues using Revenue Code Series 4xxxx

Refer to ADE Handbook for correct code designations. Additional rules and changes will be announced in Commissioner’s Memos.


Use Available Resources Foundation Aid?


Resources Include: Foundation Aid?

  • Arkansas Department of Education

  • Training through Educational Service Cooperatives

  • ADE/Professional Group Listserve(s)

  • County Officials

  • Other School Leaders

  • Auditors

  • Publications

  • ASBO

  • AAEA


Trust, but Verify! Foundation Aid?



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