Special Education – Fiscal Overview

Session 2

Kathy Guralski, School Finance Auditor

Lori Ames, School Finance Consultant

11/28/06

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Agenda

Project Code Accounting Review

Accounting ExamplesDistrict-Operated ProgramsTuition Payments66.03 ContractsPackage Programs

Deductible Receipts

Questions & Answers

Project Coding

The key to identifying the correct project code is ……

……understanding that the project code identifies how the expense is to be ultimately funded.

Project Code

How is the expense funded?Locally Funded

011 Aidable Expense 019 Non-Aidable Expense

Grant Funded Project code depends upon which entity is the

grant holder

Project Code

Grant FundedOwn District Files the Claim

340 Series – IDEA grants 599 – Other grants

Another School District Files the Claim 316 State Grant (SE Report – 315) 317 Federal Grant

CESA/CCDEB Files the Claim 516 State Grant (SE Report – 515) 517 Federal Grant

Project Code

Funded by a CESA/CCDEB as a result of a package program host district expense.

091 – CESA Package Program092 – CCDEB Package Program

Account/Project Coding You have a special education cost:

Directly incur costs Provide service to another district Purchase service from another school district 66.0301 cooperative agreement Purchase service from CESA/CCDEB

The project code you use may depend on: Who incurs the expenditure? What is the source to fund the cost? Who are you receiving the funding from?

Account/Project Coding

All special education related costs to your district are reported in fund 27 irregardless of the type of funding or type of program offered.

Directly incur costs

Your district hires all staff involved in providing the special education service to your district only and directly incurs all related special education costs (i.e. transportation, supplies)

Directly incur costs Who incurs the expenditure?

Your district What is the source to fund the cost?

Grants (specifically IDEA) Categorical aid Local

Equalization aid Property taxes

Who are you receiving the funding from? DPI

IDEA grant passed through DPI Categorical aid

Transfer from general fund

Directly incur costsExample

Hire CD teacher What is the source to fund the cost?

Categorical aid 27E 158000 100/200 011 IDEA Grant 27E 158000 100/200 340 Local 27E 158000 100/200 019

Who are you receiving the funding from? DPI – Categorical SPED aid 27R 611 DPI – Flow Through 27R 730 Transfer from General Fund 27R 411000 110

Directly incur costsExample

Incur supplies What is the source to fund the cost?

IDEA Grant 27E 158000 410 340 Local 27E 158000 410 019

Who are you receiving the funding from? DPI – IDEA source 730 Transfer from General Fund 27R 411000 110

Directly incur costsExample

Contract for OT services What is the source to fund the cost?

Categorical aid 27E 218100 310 011 IDEA Grant 27E 218100 310 340 Local 27E 218100 310 019

Who are you receiving the funding from? DPI – Categorical SPED aid 27R 611 DPI – Flow Through 27R 730 Transfer from General Fund 27R 411000 110

Directly incur costsExample

Contract for Special Transportation Services What is the source to fund the cost?

Categorical aid 27E 256000 341 011 IDEA Grant 27E 256000 341 340 Local 27E 256000 341 019

Who are you receiving the funding from? DPI – Flow Through 27R 730 DPI – Categorical SPED aid 27R 611 Transfer from General Fund 27R 411000 110

Provide special education program for nonresident students

Your district hires all staff involved in providing the special education service and directly incurs all related special education costs (i.e. transportation, supplies). Tuition is paid by resident district for student attending the program.

Provide special education program for nonresident students

What is the source to fund the cost? Tuition Categorical aid IDEA grant Local

Who are you receiving the funding from? Another district DPI

IDEA grant Categorical aid

Transfer from general fund 27R 411000 110

Provide special education program for nonresident students

District A provides special education services

District B – resident student open enrolls to Distr. A

Example 1 District A receives flat tuition rate from District B

Source 347 no matter what funds District B uses No deductible receipt on SPED report No special education aid transited to District B

Provide special education program for nonresident students

Example 2 District A receives flat tuition rate plus additional cost

from District B (No IDEA) Source 347 No deductible receipt on SPED report Special education aid transited to District B for

amount of additional eligible cost (27E 491000 936 019)

Provide special education program for nonresident students

Example 3 District A receives flat tuition rate plus additional cost

from District B. District B uses partly IDEA funds Source 347 Deductible receipt on SPED report for portion of

additional cost attributable to 011 expenditures and reimbursed by District B with IDEA grant dollars

Special education aid transited to District B for amount of additional eligible cost not reimbursed by Flow Through dollars (27E 491000 936 019)

Expenditure Coding

Expenditure Payment for Transit of State Special Ed Categorical Aid:To another LEA 27E 491000 936 019

Purchase service from another school district

Your district does not incur the special education costs directly but rather sends students to participate in a program provided by another district.

Purchase service from another school district

What is the source to fund the cost? Categorical aid IDEA grant Local

Who are you receiving the funding from? DPI

IDEA grant Categorical aid

Transfer from general fund 27R 411000 110

Purchase service from another school district

Example District A provides special education

services District B – resident student open enrolls

or attends District A

Purchase service from another school district

Example 1District B pays flat tuition rate to District A

Local funds - 27E 437000 382 019 IDEA - 27E 437000 382 340

Example 2District B pays flat tuition rate plus additional

cost to District A (No IDEA funds) 27E 437000 382 019 Special education aid transited to District

B for amount of additional eligible cost (Source 316)

Purchase service from another school district

Example 3District B pays flat tuition rate plus additional

cost to District A. District B uses partly IDEA funds

27E 437000 382 019 27E 437000 382 340 portion of additional

cost reimbursed by District B with IDEA grant dollars

Special education aid transited to District B for amount of additional eligible cost not reimbursed by Flow Through dollars (source 316)

Receipt of IDEA grant (source 730)

PURCHASED SERVICE

When someone else is providing the instructional services costs should be recorded in 430 000.

Typical Functions: 431 000 General Tuition

433 000 Co-Curricular 435 000 General Tuition Open Enrollment 436 000 Special Education - Non Open Enrollment 437 000 Special Education - Open Enrollment  

Typical Objects: 370 Private Educational Services

381 Payment to Municipality 382 Interdistrict Payment Within Wisconsin (Other districts, etc) 386 Payment to CESA 387 Payment of State (Universities, etc) 389 Payment to WTCS 390 Other Funds

PURCHASED SERVICE

When someone else is providing the instructional services costs should be recorded in 430 000.

Examples: Special Ed Payment to CESA 27E 436 000 386 Special Ed Payment to Another District (not O.E.) 27E 436 000

382 Non-Special Ed Payment to CESA 10E 431 000 386 Special Ed Payment to WTCS 27E 436 000 389 Special Ed - Open Enrollment 27E 437 000 382 Non-Special Ed Open Enrollment 10E 435 000 382 Non-Special Ed Payment to Private School 10E 431 000 370

(371, 372, etc.)

66.0301 cooperative agreement

Your district enters into a 66.0301 agreement to provide special education services to all districts within the cooperative agreement.

66.0301 cooperative agreement One district is operator and fiscal agent

Only fiscal agent may hire staff All program or project accounting is done on fiscal

agent books Maintains records for financial and compliance audit Submits all reports (categorical aid claim)

Fiscal agent policy clarify responsibilities of the fiscal agent and put in

writing terms conditions where agreement would be terminated Administrative fees for the fiscal agent

66.0301 cooperative agreementWho is paying vendor?

Fiscal agent is making all purchases for the participating organizations

The participating organization is also making purchases and submitting copies of all supporting documentation or transaction detail to the fiscal agent

66.0301 cooperative agreementFlow of activity

Cost of program incurred Fiscal agent reimburses participating

organization for any cost they incurred Fiscal agent bills all participating districts for

their portion of the program Fiscal agent files aid claims Fiscal agent receives federal grant in current year Fiscal agent receives categorical aid in following

year Fiscal agent transits to participating districts

their portion of the categorical aid

Cost of program incurred

CD Teacher Fiscal Agent

Categorical Aid 27E 158000 100/200

011 Flow Through

27E 158000 100/200 340

Participating District Cannot hire staff

Supplies Fiscal Agent

Not Eligible Categorical Aid 27E 158000 410 019

Flow Through 27E 158000 410 340

Participating District Not Eligible Categorical Aid

27E 158000 410 019 Flow Through

27E 158000 410 317

Fiscal agent reimburses participating organization for any cost they incurred

Supplies Fiscal Agent

Not Eligible Categorical Aid 27E 436000/200000 382

019 Flow Through

27E 436000/200000 382 340

Supplies Participating District

Not Eligible Categorical Aid 27R346

Flow Through 27R317

Fiscal agent bills all participating districts for their portion of the program

Fiscal Agent Categorical Aid

27R 346

Participating District Not Eligible Categorical Aid

27E 436000,200000 382 019

Fiscal agent files aid claims

Fiscal agent receives federal grant in current year

Fiscal Agent Flow Through

27R 730

Participating District

Fiscal agent receives categorical aid in following year

Fiscal Agent Categorical Aid

27R 611

Participating District

Fiscal agent transits to participating districts their portion of the categorical aid

Fiscal Agent Not Eligible Categorical Aid

27E 491000 936 019

Participating District 27R 316

Purchase service from CESA/CCDEB CESA is operator and fiscal agent

CESA may package a program Host district may hire staff

All program or project accounting is done on fiscal agent books

Maintains records for financial and compliance audit Submits all reports (categorical aid claim)

Fiscal agent policy clarify responsibilities of the fiscal agent and put in

writing terms conditions where agreement would be terminated Administrative fees for the fiscal agent

Purchase service from CESA/CCDEB

Flow of activity Cost of program incurred CESA reimburses participating district for any

cost they incurred CESA bills all participating districts for their

portion of the program CESA files aid claims CESA receives federal grant in current year CESA receives categorical aid in following year CESA transits to participating districts their

portion of the categorical aid

Cost of program incurred

CD Teacher CESA hires

Categorical Aid 27E 158000 100/200 011

Flow Through 27E 158000 100/200 340

Host District hires Not Eligible Categorical Aid

27E 158000 100/200 091 Flow Through

27E 158000 100/200 517

Supplies CESA incurs

Not Eligible Categorical Aid 27E 158000 410 019

Flow Through 27E 158000 410 340

Host District incurs Not Eligible Categorical Aid

27E 158000 410 091 Flow Through

27E 158000 410 517

CESA reimburses participating district for any cost they incurred

CD Teacher CESA

Categorical Aid 27E 436000/200000 382

019 Identify 011 in package

program Flow Through

27E 436000/200000 382 340

Host District Categorical Aid

27R 546 Flow Through

27R 517

Supplies CESA

Categorical Aid 27E 436000/200000 382

019 Flow Through

27E 436000/200000 382 340

Host District Categorical Aid

27R 546 Flow Through

27R 517

CESA agent bills all participating districts for their portion of the program

CESA Categorical Aid

27R 240

Participating District Categorical Aid

27E 436000,200000 386 019

CESA files aid claims

CESA receives federal grant in current year

Fiscal Agent Flow Through

27R 730

Participating District

CESA receives categorical aid in following year

CESA Categorical Aid

27R 611

Participating District

CESA transits to participating districts their portion of the categorical aid

CESA Categorical Aid

27E 491000 936 019

Participating District 27R 516

Expenditure Coding

Expenditure payments by host district for “package program” billings for special education services:To a CCDEB

Appropriate function and object, project 092

To a CESA Appropriate function and object, project 091

Who are you receiving the funding from?

Revenue Receipt for Transit of State Special Ed Categorical Aid Direct from DPI to “Fiscal

Agent LEA” From Another School District

Tuition and/or 66.0301 From a CCDEB From a CESA

27R 611

27R 316

27R 516 27R 516

Who are you receiving the funding from?

Revenue Receipt for Transit of Federal Aid Direct from DPI to “Fiscal

Agent LEA” From Another School District

Tuition and/or 66.0301 From a CCDEB From a CESA

27R 730

27R 317

27R 517 27R 517

Who are you receiving the funding from?

Revenue Receipt for Tuition/66.0301 Billings for Special Ed Services From another school district –

non open enrollment From another school district –

open enrollment From a CCDEB From a CESA

27R 346

27R 347

27R 536 27R 546

Who are you receiving the funding from?

Revenue Receipt for Package Program billings for Special Ed services From a CCDEB From a CESA

27R 536 27R 546

Grant Payments Between Entities

For entity that is not the grant holder:

Code expenses to the appropriate 316, 317, 516, 517 project number

When reimbursed by the other grant-holding entity, receipt the funds into the corresponding source (316, 317, 516, or 517)

Grant Payments Between Entities

For the district who is the grant-holder:

Code the reimbursement to the appropriate project (340 or 599)

In the special education report, answer “yes” to paying another LEA for services from your grants, identify the entity, and the amount paid

Grant Payments Between Entities

How does DPI verify grant payments between entities?

Special Education Report Edit

Verify the amount paid and reported by the reimbursing district is equal to the amount reported by the non-grant holding district in the appropriate 316, 317, 516, or 517 project lines.

Deductible Receipts

What is a deductable receipt?

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.

Deductible Receipts

Why does DPI care about deductible receipts?

DPI should not pay special education categorical aid on an aidable expense (coded to project 011) that has been reimbursed with state or federal grant funds.

Deductible Receipts

How should entities report deductible receipts? The district incurring the original expense should:

Code the original expense with the appropriate project. (mostly likely 011 and 019)

Code the reimbursement to the appropriate 316, 317, 516, or 517 source code.

In the special education report:

Answer “yes” to receiving deductable receipts, identify the entity, and the amount receipted (only the 011 amount)

On the 27D line, enter the amount of 011 expenses that were reimbursed by another entity with grant funds

Deductible Receipts

How should entities report deductible receipts?The district reimbursing the original expense

should:

Code the reimbursement expense with the appropriate project. (mostly likely 340 or 599)

In the special education report, answer “yes” to paying another LEA for services from their grants, identify the entity, and the amount paid

Deductible Receipts

How does DPI verify deductible receipts?

Special Education Report Edit

Verify the amount paid and reported by the reimbursing district is equal to or less than the amount received and reported on the deductible receipt question and on the 27D lines by the entity incurring the original expense.

Resources Special Education Media-Site – Session 3 –

Date to be Determined

http://media2.wi.gov/dpi/viewer/?cid=2352cf23-e130-4a9c-b83f-8f8e90b15f41

Open Enrollmenthttp://www.dpi.wi.gov/sfs/doc/open_enrollment_wufar.doc

Selected WUFAR Coding for Fund 27http://www.dpi.wi.gov/sfs/xls/spr_wufar_code.xls

Function 430000http://www.dpi.wi.gov/sfs/doc/funct_430.doc

Resources Coop Agreement – 66.0301

http://www.dpi.wi.gov/sfs/coop_agree.html

Fiscal Agent Requirementshttp://www.dpi.wi.gov/sfs/doc/fisagnt.doc

Fiscal Agent Agreement Account Codinghttp://www.dpi.wi.gov/sfs/xls/fisagagree.xls

Fiscal Agent-Example of Level 3 Documentationhttp://www.dpi.wi.gov/sfs/doc/fisagnt_example.doc

Contacts

Beverly Kraus 608-266-1089beverly.krause@dpi.state.wi.us

Lori Ames 608-266-3464lori.ames@dpi.state.wi.us

Kathy Guralski 608-266-3862katherine.guralski@dpi.state.wi.us

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PRODUCED BY:Daryl Miller