special education aid from start to finish 03/27/2008 lori ames, school finance consultant

Special Education AidSpecial Education AidFrom Start to FinishFrom Start to Finish

03/27/200803/27/2008

Lori Ames, School Finance Lori Ames, School Finance ConsultantConsultant

So much information……….so little time.So much information……….so little time.

SO LET’S GET STARTED!!!!!!!!!!!!

• Where does it all start?Where does it all start?

YOUR GENERAL LEDGERYOUR GENERAL LEDGER

• You have an expense that needs to be coded You have an expense that needs to be coded and accounted for on your general ledger.and accounted for on your general ledger.

General Ledger Account CodingGeneral Ledger Account Coding

• There are five elements to a special There are five elements to a special education account code.education account code.

– Fund:Fund: If related to special education, the If related to special education, the expense should show up in fund 27!expense should show up in fund 27!

– Location (not required):Location (not required): Some districts elect to Some districts elect to use a different location number to reflect fiscal use a different location number to reflect fiscal agent cooperative expenses.agent cooperative expenses.


• Before you code any further, you have to Before you code any further, you have to ask yourself ask yourself 33 questions. questions.

– What am I purchasing? (salary, benefit, supply)What am I purchasing? (salary, benefit, supply)

– What department is it for? (EC, OT, Admin)What department is it for? (EC, OT, Admin)

– How is the expense to be funded? (State aid, How is the expense to be funded? (State aid, local dollars, grant dollars)local dollars, grant dollars)


• Now for the elements related to the Now for the elements related to the questions……..questions……..

– ObjectObject:: Identifies what is being purchased Identifies what is being purchased

– Function:Function: Identifies the department or Identifies the department or program program

– Project:Project: Identifies the funding source Identifies the funding source


• Detailed Project Numbers:Detailed Project Numbers:

– 011:011: Expense is locally funded and eligible for Expense is locally funded and eligible for state special education categorical aidstate special education categorical aid

– 019:019: Expense is locally funded and Expense is locally funded and notnot eligible for state special education categorical eligible for state special education categorical aid.aid.

– 340 (341, 347, etc……):340 (341, 347, etc……): Expense is funded Expense is funded with the district’s IDEA grants (The district with the district’s IDEA grants (The district files the claim directly with DPI and receives files the claim directly with DPI and receives payments directly from DPI.)payments directly from DPI.)



– 315 (state)/317 (federal):315 (state)/317 (federal): Expense is Expense is funded by either a state or federal grant funded by either a state or federal grant that is administered by another school that is administered by another school district.district.

• The other district files the claim with DPI, The other district files the claim with DPI, receives the payment from DPI, and transits receives the payment from DPI, and transits the grant money to your district.the grant money to your district.

Project 315 & 317Project 315 & 317

District A – Incurs Original Vendor Expense - Project 317

VENDORDPI

District B files DPI Grant Claim & Receives Reimbursement – Source 730

District B – Reimburses District A using Federal Flow-Thru Funds – Project 340

District A – Receipts Reimbursement-Source 317

District A files claimWith District B.



– 515 (state)/517 (federal):515 (state)/517 (federal): Expense is funded Expense is funded by either a state or federal grant that is by either a state or federal grant that is administered by CESA/CCDEB. administered by CESA/CCDEB.

• CESA/CCDEB files the claim with DPI, receives CESA/CCDEB files the claim with DPI, receives the payment from DPI, and transits the grant the payment from DPI, and transits the grant money to your district.money to your district.

Project 515 & 517Project 515 & 517

District A – Incurs Original Vendor Expense - Project 517

VENDOR DPI

CESA files DPI Grant Claim & Receives Reimbursement – Source

730

CESA – Reimburses District A using Federal Flow-Thru Funds –

Project 340District A – Receipts Reimbursement-Source 517

CESA

District A files a claim with CESA.



– 599:599: Expense is funded with a district grant Expense is funded with a district grant other than an IDEA grant.other than an IDEA grant.

• The district files the claim directly with DPI and The district files the claim directly with DPI and receives payments directly from DPI.receives payments directly from DPI.

• An example of a grant reported in project code 599 An example of a grant reported in project code 599 would be an AODA grant or a Drug Free Schools would be an AODA grant or a Drug Free Schools Grant. Grant.



– 091 (CESA)/092 (CCDEB):091 (CESA)/092 (CCDEB): Expense is funded Expense is funded with local money from a CESA or CCDEB.with local money from a CESA or CCDEB.

• This type of arrangement is considered a “package This type of arrangement is considered a “package program,” and the district is is considered a “host program,” and the district is is considered a “host district.” The district’s expenses are funded in full.district.” The district’s expenses are funded in full.

• Relatively few package programs exist in the Relatively few package programs exist in the State.State.


• How do I know if certain account elements How do I know if certain account elements can be used together?can be used together?

– Check out the new Fund 27 MatrixCheck out the new Fund 27 Matrix

http://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xlshttp://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xls

State Spec Ed Aid EligibilityState Spec Ed Aid Eligibility

• How do I know if my expense is eligible for How do I know if my expense is eligible for state special education aid? state special education aid?

– Expenses can be coded to project code 011 Expenses can be coded to project code 011 assuming:assuming:

• the type of expense is aid eligible;the type of expense is aid eligible;

• any claimed salary/benefits are supported by an any claimed salary/benefits are supported by an appropriately licensed staff member or allocated appropriately licensed staff member or allocated appropriately to fund 27;appropriately to fund 27;

• the entity hasn’t been reimbursed for the project the entity hasn’t been reimbursed for the project code 011 expense with grant money.code 011 expense with grant money.


• Eligible ExpensesEligible Expenses

– Salary & Fringe Benefits for:Salary & Fringe Benefits for:

• most special education teachers & assistants;most special education teachers & assistants;

• speech/physical/occupational therapists;speech/physical/occupational therapists;

• psychologists, social workers, nurses, guidance psychologists, social workers, nurses, guidance counselors counselors

• special education administrative staffspecial education administrative staff

• special transportationspecial transportation


• Appropriate LicensureAppropriate Licensure

– The staff member must hold the The staff member must hold the appropriate licensure for the function appropriate licensure for the function he/she is being charged to.he/she is being charged to.

http://dpi.wi.gov/sfs/doc/valid_code_se.dochttp://dpi.wi.gov/sfs/doc/valid_code_se.doc


• How do we identify licenses that are not How do we identify licenses that are not valid?valid?

– Entities complete the PI 1202 fall staffing Entities complete the PI 1202 fall staffing report identifying the staff member, FTE, and report identifying the staff member, FTE, and assignment (including function). This report is assignment (including function). This report is static and does not get updated during the static and does not get updated during the year.year.

– Teacher licensing compares the staff Teacher licensing compares the staff assignment from the PI 1202 report against assignment from the PI 1202 report against the staff member’s license.the staff member’s license.



– A list of staff members that do not hold a valid A list of staff members that do not hold a valid license for their assignment is generated and license for their assignment is generated and made available for entity staff and auditors.made available for entity staff and auditors.

– Auditors are required to submit to DPI an Auditors are required to submit to DPI an excel document identifying the amount of excel document identifying the amount of salary and benefits paid for each staff salary and benefits paid for each staff member listed on the “no valid license list.”member listed on the “no valid license list.”



– The identified salary and benefit amounts are The identified salary and benefit amounts are withheld in the categorical aid calculation.withheld in the categorical aid calculation.

– Aid is withheld until the DPI special education Aid is withheld until the DPI special education licensing team approves the individual’s licensing team approves the individual’s license status.license status.


• Appropriate AllocationAppropriate Allocation

– Salaries and benefits of these professionals Salaries and benefits of these professionals must be allocated between regular education must be allocated between regular education (fund 10) and special education (fund 27) (fund 10) and special education (fund 27) based on time and costs.based on time and costs.

• psychologistspsychologists• social workerssocial workers• nurses (registered nurses, licensed by WI Dept of nurses (registered nurses, licensed by WI Dept of

Regulation and Licensing)Regulation and Licensing)• guidance counselorsguidance counselors

– http://www.dpi.wi.gov/sfs/ltrjan12_06.htmlhttp://www.dpi.wi.gov/sfs/ltrjan12_06.html


• How do we identify inappropriate How do we identify inappropriate allocations?allocations?

– Auditors will verify that staff time/costs have Auditors will verify that staff time/costs have been:been:

• done on an done on an annualannual basis for each individual staff basis for each individual staff member claimed;member claimed;

• documented for review by the entity’s auditor and documented for review by the entity’s auditor and potentially DPI;potentially DPI;

• based on a method that is both rational and based on a method that is both rational and defensible.defensible.


• How do we identify inappropriate How do we identify inappropriate allocations?allocations?

– Auditors are required to submit to DPI an Auditors are required to submit to DPI an excel document identifying the amount of excel document identifying the amount of salary and benefits paid for each staff salary and benefits paid for each staff member that has been inappropriately member that has been inappropriately allocated.allocated.

– The identified salary and benefit amounts are The identified salary and benefit amounts are withheld in the categorical aid calculation until withheld in the categorical aid calculation until the DPI pupil services team approves the the DPI pupil services team approves the individual’s allocation status.individual’s allocation status.


STAY TUNED!!!STAY TUNED!!!

• A pending law will alter the process you A pending law will alter the process you use to allocate guidance, nurse, use to allocate guidance, nurse, psychologist, and social work positions to psychologist, and social work positions to fund 27.fund 27.

• We will provide you detailed information as We will provide you detailed information as soon as we have it!soon as we have it!



– Purchased Services (Directly Aidable)Purchased Services (Directly Aidable)

• Occupational TherapyOccupational Therapy

• Physical TherapyPhysical Therapy

• Homebound TravelHomebound Travel

• Special TransportationSpecial Transportation

• Out of State Tuition (special approval required)Out of State Tuition (special approval required)



– SuppliesSupplies

• Only supplies for the special transportation vehicleOnly supplies for the special transportation vehicle



– EquipmentEquipment

• Only equipment for the special transportation Only equipment for the special transportation vehiclevehicle

• Special permission is required to purchase a bus Special permission is required to purchase a bus and apply for state special education aid.and apply for state special education aid.



– InsuranceInsurance

• Property insurance for the special transportation Property insurance for the special transportation vehiclevehicle

• Unemployment insurance for the cost of Unemployment insurance for the cost of unemployment checks issued to former special unemployment checks issued to former special education staff within one year IMMEDIATELY education staff within one year IMMEDIATELY following terminationfollowing termination



– Dues & FeesDues & Fees

• Special Transportation - specifically any entry fees Special Transportation - specifically any entry fees to activities for special education students on field to activities for special education students on field tripstrips


• What do I do if I can’t remember anything What do I do if I can’t remember anything you just told me?you just told me?

– Check out the revised claim directions that Check out the revised claim directions that provide information on all eligible costsprovide information on all eligible costs

http://www.dpi.wi.gov/sfs/doc/se_claim_directions.dochttp://www.dpi.wi.gov/sfs/doc/se_claim_directions.doc

Special Education ReportSpecial Education Report

• Report Access:Report Access:

– The spec ed budget/annual reports are not The spec ed budget/annual reports are not online reports.online reports.

– The program should already be resident on The program should already be resident on one of the district’s computers or on a one of the district’s computers or on a district’s network drive.district’s network drive.

– Districts are able to “re-download” the Districts are able to “re-download” the program, but be aware of how to handle the program, but be aware of how to handle the data files from prior year reports.data files from prior year reports.


• Report Completion:Report Completion:

– Input Spec Ed ExpensesInput Spec Ed Expenses

• Only those functions with the potential for aidable Only those functions with the potential for aidable costs are entered in detail.costs are entered in detail.

• If you have an expense that does not have a detail If you have an expense that does not have a detail line, and the function begins with a 1, then report line, and the function begins with a 1, then report the expenses in function 199999.the expenses in function 199999.

• If you have an expense that does not have a detail If you have an expense that does not have a detail line, and the function begins with a 2, then report line, and the function begins with a 2, then report the expenses in function 299999.the expenses in function 299999.



– Input Spec Ed ExpensesInput Spec Ed Expenses

• Although nurse and guidance salary/benefit Although nurse and guidance salary/benefit expenses have the potential to be aidable, there is expenses have the potential to be aidable, there is no detail line on the report for data entry.no detail line on the report for data entry.

• If you have aidable guidance and nurse expenses If you have aidable guidance and nurse expenses coded to project code 011 on your ledger, please coded to project code 011 on your ledger, please enter these expenses in enter these expenses in function 299999, project function 299999, project 019.019.



– Input School Age Parent Program ExpensesInput School Age Parent Program Expenses

• Districts need to report expenditures as well as Districts need to report expenditures as well as numbers served.numbers served.

• Just a reminder that expenses for SAP Just a reminder that expenses for SAP Homebound are only aidable for services provided Homebound are only aidable for services provided to “Moms.”to “Moms.”



– Input selected revenue accountsInput selected revenue accounts

• Enter revenue for source 346 and 347Enter revenue for source 346 and 347

• These two revenue accounts are the only ones These two revenue accounts are the only ones requested because they are used in the requested because they are used in the maintenance of effort calculation.maintenance of effort calculation.



– Identify entities to whom you’ve made grant Identify entities to whom you’ve made grant paymentspayments

• Not only do you need to report the payment in the Not only do you need to report the payment in the correct account number, you also need to identify correct account number, you also need to identify who you paid and how much.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.



– Identify any Deductible ReceiptsIdentify any Deductible Receipts

• A deductible receipt is created when an entity A deductible receipt is created when an entity incurs an aidable expense (coded to project 011) incurs an aidable expense (coded to project 011) that is ultimately reimbursed by that is ultimately reimbursed by another entityanother entity with with grant funds.grant funds.

• Since DPI calculates aid based on expenses Since DPI calculates aid based on expenses coded to project code 011, you need to tell me if coded to project code 011, you need to tell me if some of those expenses have already been some of those expenses have already been reimbursed by grant money.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.



– Identify any deductible receiptsIdentify any deductible receipts

• Just a reminder that the Just a reminder that the flat rateflat rate amount of an amount of an open enrollment tuition is open enrollment tuition is notnot considered a considered a deductible receipt. Any deductible receipt. Any additionaladditional student specific student specific open enrollment tuition open enrollment tuition maymay be a deductible receipt be a deductible receipt if the original expense was coded to project 011.if the original expense was coded to project 011.


• Report Submittal:Report Submittal:

– Report submittal involves sending an email to Report submittal involves sending an email to the department with a text file attached.the department with a text file attached.

– If you need to report project code 011 If you need to report project code 011 guidance and nurse expenses, then additional guidance and nurse expenses, then additional information must be included in the body of information must be included in the body of the email. (wording is available on the web)the email. (wording is available on the web)

http://www.dpi.wi.gov/sfs/se_report.htmlhttp://www.dpi.wi.gov/sfs/se_report.html

Spec Ed Report AuditingSpec Ed Report Auditing

• Report Auditing/Amending:Report Auditing/Amending:

– Auditing is done to ensure the accuracy of Auditing is done to ensure the accuracy of both the project 011 expenses and aid both the project 011 expenses and aid payments.payments.

– Any detected errors may require changes to Any detected errors may require changes to either the SAFR annual report or the Spec Ed either the SAFR annual report or the Spec Ed Annual ReportAnnual Report

• SAFR – changes made onlineSAFR – changes made online• SE Report – changes made locally and faxed 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.


• Common Reporting Errors:Common Reporting Errors:

– SAFR does not equal the SE Annual ReportSAFR does not equal the SE Annual Report

Sample:Sample:ERROR: 218200 SE Does Not Equal 218200 SAFRERROR: 218200 SE Does Not Equal 218200 SAFR

AMT SAFR: $21,541.54AMT SAFR: $21,541.54

AMT SE: $21,541.54AMT SE: $21,541.54

AMT Difference: $0.00AMT Difference: $0.00

MESSAGE: Expenses reported in this function series should MESSAGE: Expenses reported in this function series should equal at both the function and equal at both the function and objectobject level between the SE and level between the SE and full SAFR report.full SAFR report.

HYPERLINK: Click here for correction instructions - HYPERLINK: Click here for correction instructions - http://www.dpi.wi.gov/sfs/doc/sesacompare.dochttp://www.dpi.wi.gov/sfs/doc/sesacompare.doc



– SAFR does not equal the SE Annual ReportSAFR does not equal the SE Annual Report

• The district will need to determine which report is The district will need to determine which report is accurate and either correct the SAFR Report, the accurate and either correct the SAFR Report, the SE Annual Report, or both.SE Annual Report, or both.



– Not Reporting Grant Payments by EntityNot Reporting Grant Payments by Entity

Sample:Sample:ERROR: Grant Payment MadeERROR: Grant Payment Made

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



– Not Reporting Grant Payments by EntityNot Reporting Grant Payments by Entity

• This error gets back to needing to answer “yes” to This error gets back to needing to answer “yes” to the question in your report, identifying the entity the question in your report, identifying the entity you paid, and identifying how much you paid them.you paid, and identifying how much you paid them.

• Please note that the amount you paid them should Please note that the amount you paid them should be equal to or greater than the amount they be equal to or greater than the amount they reported as a deductible receipt.reported as a deductible receipt.



– No Record of Grant Payment ReceivedNo Record of Grant Payment Received

Sample:Sample:

ERROR: No Record of Grant Payment ReceivedERROR: No Record of Grant Payment Received

Amount Received: $500Amount Received: $500

From: CESAFrom: CESA

MESSAGE: CESA indicated that they sent you a grant payment, MESSAGE: CESA indicated that they sent you a grant payment, but I do not see either a deductible receipt reported or but I do not see either a deductible receipt reported or expenditures with a project code of 515 or 517 totaling this expenditures with a project code of 515 or 517 totaling this amount.amount.

HYPERLINK: Click here for correction instructions - HYPERLINK: Click here for correction instructions - http://www.dpi.wi.gov/sfs/doc/grant_receipt.dochttp://www.dpi.wi.gov/sfs/doc/grant_receipt.doc



– To report grant payments received, the district must To report grant payments received, the district must either:either:

• code the original expense to project code 315,317,515, code the original expense to project code 315,317,515, or 517 (grant payment equals the expenses coded to or 517 (grant payment equals the expenses coded to the previous projects)the previous projects)

OROR

• Report a deductible receipt for only the expense that Report a deductible receipt for only the expense that was coded to project code 011 (grant payment made was coded to project code 011 (grant payment made may be equal to or more than the deductible receipt)may be equal to or more than the deductible receipt)

Aid Calculation & PaymentsAid Calculation & Payments

• Normal aid calculation involves:Normal aid calculation involves:

Gross Aidable ExpenseGross Aidable Expense

-- No Valid LicenseNo Valid License

-- Questioned CostQuestioned Cost

+/-+/- Miscellaneous AdjustmentsMiscellaneous Adjustments

== Net Aidable CostNet Aidable Cost

Special Ed Aid PaymentsSpecial Ed Aid Payments

• Due to the high dollar amount of eligible Due to the high dollar amount of eligible expenses, the amount of aid paid is expenses, the amount of aid paid is prorated to approximately 28.5%.prorated to approximately 28.5%.

• Aid is paid in multiple payments (Nov 15%, Aid is paid in multiple payments (Nov 15%, Dec 15%, Jan 15%, Feb 15%, March 15%, Dec 15%, Jan 15%, Feb 15%, March 15%, and June 25%)and June 25%)

Special Ed Aid PaymentsSpecial Ed Aid Payments

• Because payments start before data Because payments start before data auditing is finished, aid eligibility and auditing is finished, aid eligibility and therefore aid payment amounts may therefore aid payment amounts may constantly change.constantly change.

• Districts can see aid payments, aid Districts can see aid payments, aid computations, and aid adjustments at the computations, and aid adjustments at the following link.following link.

http://www.dpi.wi.gov/sfs/sped_worksheets.htmlhttp://www.dpi.wi.gov/sfs/sped_worksheets.html

What’s New on the Horizon?What’s New on the Horizon?

• We are planning to roll out a new on-We are planning to roll out a new on-line special education report beginning line special education report beginning with the 2008-09 budget!!!!!!!!!!!with the 2008-09 budget!!!!!!!!!!!

• It will be what we consider “Phase1” of the It will be what we consider “Phase1” of the entire special education redesign process.entire special education redesign process.

ResourcesResources

• Fund 27 MatrixFund 27 Matrix

http://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xlshttp://www.dpi.wi.gov/sfs/xls/fund_27_matrix.xls

• Special Education Transaction CodingSpecial Education Transaction Coding

http://www.dpi.wi.gov/sfs/doc/sped.dochttp://www.dpi.wi.gov/sfs/doc/sped.doc

• Special Education Claim DirectionsSpecial Education Claim Directions

http://www.dpi.wi.gov/sfs/xls/se_claim_directions.xlshttp://www.dpi.wi.gov/sfs/xls/se_claim_directions.xls

ResourcesResources

• Valid Teacher Licenses & Reporting CodesValid Teacher Licenses & Reporting Codes

http://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdfhttp://www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf

• ““Special Education” Pupil TransportationSpecial Education” Pupil Transportation

http://dpi.wi.gov/sfs/xls/setrpl00.xlshttp://dpi.wi.gov/sfs/xls/setrpl00.xls

• Special Education Media-Site PresentationsSpecial Education Media-Site Presentations

http://media2.wi.gov/DPI/Catalog/Front.aspx?cid=23http://media2.wi.gov/DPI/Catalog/Front.aspx?cid=2352cf23-e130-4a9c-b83f-8f8e90b15f4152cf23-e130-4a9c-b83f-8f8e90b15f41

ContactsContacts

• Lori Ames 608-266-3464Lori Ames [email protected]@dpi.wi.gov

• Kathy Guralski 608-266-3862Kathy Guralski [email protected]@dpi.wi.gov

• Janette Gosdeck 608-267-9218Janette Gosdeck [email protected]@dpi.wi.gov

special education aid from start to finish 03/27/2008 lori ames, school finance consultant

Documents

project code

special education account

type of expense

federal grant

program project

district files

grant money

state special education