Special Education Aid

Slide 1:Special Education AidFrom Start to Finish

03/27/2008 Lori Ames, School Finance Consultant

Slide 2:So much information……….so little time. SO LET’S GET STARTED!!!!!!!!!!!!

Slide 3:Where does it all start? YOUR GENERAL LEDGER You have an expense that needs to be coded and accounted for on your general ledger.

Slide 4:General Ledger Account Coding

There are five elements to a special education account code. Fund: If related to special education, the expense should show up in fund 27! Location (not required): Some districts elect to use a different location number to reflect fiscal agent cooperative expenses.

Slide 5:General Ledger Account Coding

Before you code any further, you have to ask yourself 3 questions. What am I purchasing? (salary, benefit, supply) What department is it for? (EC, OT, Admin) How is the expense to be funded? (State aid, local dollars, grant dollars)

Slide 6:General Ledger Account Coding

Now for the elements related to the questions…….. Object: Identifies what is being purchased Function: Identifies the department or program Project: Identifies the funding source

Slide 7:General Ledger Account Coding

Detailed Project Numbers: 011: Expense is locally funded and eligible for state special education categorical aid 019: Expense is locally funded and not eligible for state special education categorical aid. 340 (341, 347, etc……): Expense is funded with the district’s IDEA grants (The district files the claim directly with DPI and receives payments directly from DPI.)

Slide 8:General Ledger Account Coding

Detailed Project Numbers: 315 (state)/317 (federal): Expense is funded by either a state or federal grant that is administered by another school district. The other district files the claim with DPI, receives the payment from DPI, and transits the grant money to your district.

Slide 9:Project 315 & 317

When District makes the original expense to the vendor, since they know they are going to be reimbursed with federal grant funds from CESA, they should code the expense to project code 517. When CESA reimburses District A with grant funds, since they are the grant holder, they will code their reimbursement expense to project code 340. When District A receipts the money, they will code it to source 517. Notice how source code 517 equals project code 517 expenses? When CESA makes a grant claim and gets reimbursement from DPI, they will code the revenue to source 730. When District makes the original expense to the vendor, since they know they are going to be reimbursed with federal grant funds from CESA, they should code the expense to project code 517. When CESA reimburses District A with grant funds, since they are the grant holder, they will code their reimbursement expense to project code 340. When District A receipts the money, they will code it to source 517. Notice how source code 517 equals project code 517 expenses? When CESA makes a grant claim and gets reimbursement from DPI, they will code the revenue to source 730.

Slide 10:General Ledger Account Coding

Detailed Project Numbers: 515 (state)/517 (federal): Expense is funded by either a state or federal grant that is administered by CESA/CCDEB. CESA/CCDEB files the claim with DPI, receives the payment from DPI, and transits the grant money to your district.

Slide 11:Project 515 & 517

When District makes the original expense to the vendor, since they know they are going to be reimbursed with federal grant funds from CESA, they should code the expense to project code 517. When CESA reimburses District A with grant funds, since they are the grant holder, they will code their reimbursement expense to project code 340. When District A receipts the money, they will code it to source 517. Notice how source code 517 equals project code 517 expenses? When CESA makes a grant claim and gets reimbursement from DPI, they will code the revenue to source 730. When District makes the original expense to the vendor, since they know they are going to be reimbursed with federal grant funds from CESA, they should code the expense to project code 517. When CESA reimburses District A with grant funds, since they are the grant holder, they will code their reimbursement expense to project code 340. When District A receipts the money, they will code it to source 517. Notice how source code 517 equals project code 517 expenses? When CESA makes a grant claim and gets reimbursement from DPI, they will code the revenue to source 730.

Slide 12:General Ledger Account Coding

Detailed Project Numbers: 599: Expense is funded with a district grant other than an IDEA grant. The district files the claim directly with DPI and receives payments directly from DPI. An example of a grant reported in project code 599 would be an AODA grant or a Drug Free Schools Grant.

Slide 13:General Ledger Account Coding

Detailed Project Numbers: 091 (CESA)/092 (CCDEB): Expense is funded with local money from a CESA or CCDEB. This type of arrangement is considered a “package program,” and the district is is considered a “host district.” The district’s expenses are funded in full. Relatively few package programs exist in the State.

Slide 14:General Ledger Account Coding

How do I know if certain account elements can be used together? Check out the new Fund 27 Matrix http://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xls

Slide 15:State Spec Ed Aid Eligibility

How do I know if my expense is eligible for state special education aid? Expenses can be coded to project code 011 assuming: the type of expense is aid eligible; any claimed salary/benefits are supported by an appropriately licensed staff member or allocated appropriately to fund 27; the entity hasn’t been reimbursed for the project code 011 expense with grant money.

Slide 16:State Spec Ed Aid Eligibility

Eligible Expenses Salary & Fringe Benefits for: most special education teachers & assistants; speech/physical/occupational therapists; psychologists, social workers, nurses, guidance counselors special education administrative staff special transportation

Slide 17:State Spec Ed Aid Eligibility

Appropriate Licensure The staff member must hold the appropriate licensure for the function he/she is being charged to. http://dpi.wi.gov/sfs/doc/valid_code_se.doc

Slide 18:State Spec Ed Aid Eligibility

How do we identify licenses that are not valid? Entities complete the PI 1202 fall staffing report identifying the staff member, FTE, and assignment (including function). This report is static and does not get updated during the year. Teacher licensing compares the staff assignment from the PI 1202 report against the staff member’s license.

Slide 19:State Spec Ed Aid Eligibility

How do we identify licenses that are not valid? A list of staff members that do not hold a valid license for their assignment is generated and made available for entity staff and auditors. Auditors are required to submit to DPI an excel document identifying the amount of salary and benefits paid for each staff member listed on the “no valid license list.”

Slide 20:State Spec Ed Aid Eligibility

How do we identify licenses that are not valid? The identified salary and benefit amounts are withheld in the categorical aid calculation. Aid is withheld until the DPI special education licensing team approves the individual’s license status.

Slide 21:State Spec Ed Aid Eligibility

Appropriate Allocation Salaries and benefits of these professionals must be allocated between regular education (fund 10) and special education (fund 27) based on time and costs. psychologists social workers nurses (registered nurses, licensed by WI Dept of Regulation and Licensing) guidance counselors http://www.dpi.wi.gov/sfs/ltrjan12_06.html

Slide 22:State Spec Ed Aid Eligibility

How do we identify inappropriate allocations? Auditors will verify that staff time/costs have been: done on an annual basis for each individual staff member claimed; documented for review by the entity’s auditor and potentially DPI; based on a method that is both rational and defensible.

Slide 23:State Spec Ed Aid Eligibility

How do we identify inappropriate allocations? Auditors are required to submit to DPI an excel document identifying the amount of salary and benefits paid for each staff member that has been inappropriately allocated. The identified salary and benefit amounts are withheld in the categorical aid calculation until the DPI pupil services team approves the individual’s allocation status.

Slide 24:State Spec Ed Aid Eligibility

STAY TUNED!!! A pending law will alter the process you use to allocate guidance, nurse, psychologist, and social work positions to fund 27. We will provide you detailed information as soon as we have it!

Slide 25:State Spec Ed Aid Eligibility

Eligible Expenses Purchased Services (Directly Aidable) Occupational Therapy Physical Therapy Homebound Travel Special Transportation Out of State Tuition (special approval required)

Slide 26:State Spec Ed Aid Eligibility

Eligible Expenses Supplies Only supplies for the special transportation vehicle

Slide 27:State Spec Ed Aid Eligibility

Eligible Expenses Equipment Only equipment for the special transportation vehicle Special permission is required to purchase a bus and apply for state special education aid.

Slide 28:State Spec Ed Aid Eligibility

Eligible Expenses Insurance Property insurance for the special transportation vehicle Unemployment insurance for the cost of unemployment checks issued to former special education staff within one year IMMEDIATELY following termination

Slide 29:State Spec Ed Aid Eligibility

Eligible Expenses Dues & Fees Special Transportation - specifically any entry fees to activities for special education students on field trips

Slide 30:State Spec Ed Aid Eligibility

What do I do if I can’t remember anything you just told me? Check out the revised claim directions that provide information on all eligible costs http://www.dpi.wi.gov/sfs/doc/se_claim_directions.doc

Slide 31:Special Education Report

Report Access: The spec ed budget/annual reports are not online reports. The program should already be resident on one of the district’s computers or on a district’s network drive. Districts are able to “re-download” the program, but be aware of how to handle the data files from prior year reports.

Slide 32:Special Education Report

Report Completion: Input Spec Ed Expenses Only those functions with the potential for aidable costs are entered in detail. If you have an expense that does not have a detail line, and the function begins with a 1, then report the expenses in function 199999. If you have an expense that does not have a detail line, and the function begins with a 2, then report the expenses in function 299999.

Slide 33:Special Education Report

Report Completion: Input Spec Ed Expenses Although nurse and guidance salary/benefit expenses have the potential to be aidable, there is no detail line on the report for data entry. If you have aidable guidance and nurse expenses coded to project code 011 on your ledger, please enter these expenses in function 299999, project 019.

Slide 34:Special Education Report

Report Completion: Input School Age Parent Program Expenses Districts need to report expenditures as well as numbers served. Just a reminder that expenses for SAP Homebound are only aidable for services provided to “Moms.”

Slide 35:Special Education Report

Report Completion: Input selected revenue accounts Enter revenue for source 346 and 347 These two revenue accounts are the only ones requested because they are used in the maintenance of effort calculation.

Slide 36:Special Education Report

Report Completion: Identify entities to whom you’ve made grant payments Not only do you need to report the payment in the correct account number, you also need to identify who you paid and how much.

If you paid another entity using grant money, you need to answer “yes” to this question!

If you paid another entity using grant funds, then you need to identify the entity and how much you paid them.

Slide 39:Special Education Report

Report Completion: Identify any Deductible Receipts A deductible receipt is created when an entity incurs an aidable expense (coded to project 011) that is ultimately reimbursed by another entity with grant funds. Since DPI calculates aid based on expenses coded to project code 011, you need to tell me if some of those expenses have already been reimbursed by grant money.

If someone paid you for an expense that you coded to project code 011, then you must answer “yes” to this question.

Identify the deductible receipt amount in the function the project code 011 expense was initially charged.

Identify the entity that paid you using grant funds as well as how much they paid you that reimbursed an expense you had coded to project 011. The dollar amount on this screen should match the amount in the 27D function lines.

Slide 43:Special Education Report

Report Completion: Identify any deductible receipts Just a reminder that the flat rate amount of an open enrollment tuition is not considered a deductible receipt. Any additional student specific open enrollment tuition may be a deductible receipt if the original expense was coded to project 011.

Slide 44:Special Education Report

Report Submittal: Report submittal involves sending an email to the department with a text file attached. If you need to report project code 011 guidance and nurse expenses, then additional information must be included in the body of the email. (wording is available on the web) http://www.dpi.wi.gov/sfs/se_report.html

Slide 45:Spec Ed Report Auditing

Report Auditing/Amending: Auditing is done to ensure the accuracy of both the project 011 expenses and aid payments. Any detected errors may require changes to either the SAFR annual report or the Spec Ed Annual Report SAFR – changes made online SE Report – changes made locally and faxed

You know you have the right amendment report because it only shows you the account numbers that have changed.

Slide 47:Spec Ed Report Auditing

Common Reporting Errors: SAFR does not equal the SE Annual Report Sample: ERROR: 218200 SE Does Not Equal 218200 SAFR AMT SAFR: $21,541.54 AMT SE: $21,541.54 AMT Difference: $0.00 MESSAGE: Expenses reported in this function series should equal at both the function and object level between the SE and full SAFR report. HYPERLINK: Click here for correction instructions - http://www.dpi.wi.gov/sfs/doc/sesacompare.doc

Slide 48:Spec Ed Report Auditing

Common Reporting Errors: SAFR does not equal the SE Annual Report The district will need to determine which report is accurate and either correct the SAFR Report, the SE Annual Report, or both.

Slide 49:Spec Ed Report Auditing

Common Reporting Errors: Not Reporting Grant Payments by Entity Sample: ERROR: Grant Payment Made AMT: $12,729.27 (at least) MADE TO: CESA MESSAGE: CESA reported a deductible receipt from you in the amount listed above. Did you make a grant payment to CESA? If you did, you will need to amend your special education annual report to reflect that you made a grant payment to them. If not, please contact CESA to let them know your payment was not grant dollars. Please let me know your findings via email. Thank you.

Slide 50:Spec Ed Report Auditing

Common Reporting Errors: Not Reporting Grant Payments by Entity This error gets back to needing to answer “yes” to the question in your report, identifying the entity you paid, and identifying how much you paid them. Please note that the amount you paid them should be equal to or greater than the amount they reported as a deductible receipt.

Slide 51:Spec Ed Report Auditing

Common Reporting Errors: No Record of Grant Payment Received Sample: ERROR: No Record of Grant Payment Received Amount Received: $500 From: CESA MESSAGE: CESA indicated that they sent you a grant payment, but I do not see either a deductible receipt reported or expenditures with a project code of 515 or 517 totaling this amount. HYPERLINK: Click here for correction instructions - http://www.dpi.wi.gov/sfs/doc/grant_receipt.doc

Slide 52:Spec Ed Report Auditing

Common Reporting Errors: To report grant payments received, the district must either: code the original expense to project code 315,317,515, or 517 (grant payment equals the expenses coded to the previous projects) OR Report a deductible receipt for only the expense that was coded to project code 011 (grant payment made may be equal to or more than the deductible receipt)

Slide 53:Aid Calculation & Payments

Normal aid calculation involves:

Slide 54:Special Ed Aid Payments

Due to the high dollar amount of eligible expenses, the amount of aid paid is prorated to approximately 28.5%. Aid is paid in multiple payments (Nov 15%, Dec 15%, Jan 15%, Feb 15%, March 15%, and June 25%)

Slide 55:Special Ed Aid Payments

Because payments start before data auditing is finished, aid eligibility and therefore aid payment amounts may constantly change. Districts can see aid payments, aid computations, and aid adjustments at the following link. http://www.dpi.wi.gov/sfs/sped_worksheets.html

Slide 56:What’s New on the Horizon?

We are planning to roll out a new on-line special education report beginning with the 2008-09 budget!!!!!!!!!!! It will be what we consider “Phase1” of the entire special education redesign process. We are in the design process and are including other entities such as school districts and CESA’s in our discussions.We are in the design process and are including other entities such as school districts and CESA’s in our discussions.

Slide 57:Resources

Fund 27 Matrix http://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xls Special Education Transaction Coding http://www.dpi.wi.gov/sfs/doc/sped.doc Special Education Claim Directions http://www.dpi.wi.gov/sfs/xls/se_claim_directions.xls

Slide 58:Resources

Valid Teacher Licenses & Reporting Codes http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf “Special Education” Pupil Transportation http://dpi.wi.gov/sfs/xls/setrpl00.xls Special Education Media-Site Presentations http://media2.wi.gov/DPI/Catalog/Front.aspx?cid=2352cf23-e130-4a9c-b83f-8f8e90b15f41

Slide 59:Contacts

Lori Ames 608-266-3464 lori.ames@dpi.wi.gov Kathy Guralski 608-266-3862 kathryn.guralski@dpi.wi.gov Janette Gosdeck 608-267-9218 janette.gosdeck@dpi.wi.gov