IDAHO DEPARTMENT OF EDUCATION Public School Finance

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IDAHO DEPARTMENT OF EDUCATIONPublic School
Finance

• Contacts
• Tim Hill, Deputy Superintendent 332-6840
  TDHill_at_sde.idaho.gov
• Myrna Holgate, Coordinator 332-6845
  MLHolgate_at_sde.idaho.gov
• Julie Oberle, Coordinator 332-6840
  JAOberle_at_sde.idaho.gov
• Greg Berg, Coordinator 332-6840
  GDBerg_at_sde.idaho.gov
• Kathryn Vincen, Coordinator 332-6840
  KLVincen_at_sde.idaho.gov
• FAX [phone]
• Web Site
• Idaho State Department of Education, School
  Finance www.sde.idaho.gov/site/finance_tech/
• Idaho State Department of Education
• www.sde.idaho.gov/

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Public School Finance

• IFARMS
• Other State Funding on Line 6 of the Foundation
  Program Calculation Worksheet
• Indirect Costs
• Tuition Rates
• Calendars (separate presentation)
• School Facility Maintenance (separate
  presentation)

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IFARMS

• Idaho Financial Accounting Reporting Management
  System (IFARMS)
• IFARMS Annual Report is a summary of the
  financial activity (revenue and expenditure) by
  fund for each district and charter school
  statewide
• IFARMS Manual is available on the School Finance
  website under FORMS

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IFARMScontinued

• IFARMS Annual Financial Report
• Forms sent electronically to districts and
  charters in April / May
• Documents will be available online in April
• Memos
• Annual Report Forms, with and without totals
• Balance Sheet Codes, Revenue Codes, and Fund
  Number/Function Program/Object Codes
• (Once on the School Finance website, click on the
  Forms link on the far left side of the webpage.)

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IFARMScontinued

• IFARMS Annual Financial Report
• Report due to School Finance by October 31st
• Report can be submitted electronically (cd,
  diskette, email) or on paper

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IFARMScontinued

• General Fund Revenue / Expenditures
• GF enhancements often reported as state special
  projects
• Idaho Reading Initiative
• Limited English Proficiency
• National Board Certified Incentives
• Gifted Talented
• Will recode as General Fund activity

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IFARMScontinued

• General Fixed Assets
• Report on page 100 of the Annual Financial Report
  at their historical cost
• If your capital outlay thresholds differ between
  the district records and audit report, use the
  lower threshold when reporting amounts on page
  100
• If possible, report amounts separately for
  elementary, secondary, administrative, and other
• Data used in the calculation of tuition rates

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IFARMScontinued

• Before submitting your annual report
• Reconcile your annual and audit reports prior to
  submitting
• Compare beginning and ending fund balances by
  fund
• Compare revenues and expenditures by fund
• Compare balance sheet information by fund
• Reasonableness check

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IFARMScontinued

• Audit report is currently due by November 10th
  per Idaho Code 33-701(6)
• November 15th payment may be delayed if audit
  report not received by due date

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IFARMScontinued

• Once we have the annual and audit reports, we
• Enter the data into our database
• Compare the IFARMS annual report balance sheet,
  revenue, expenditure, and fund balance data to
  the audit report data by fund
• If there are differences, we call for an
  explanation

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IFARMScontinued

• Once a districts financial data has been
  reconciled, we generate the yellow page
• A copy of the yellow page is sent to each
  district for review
• The yellow page is included in the Financial
  Summaries report available on our website

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Example of a Yellow Page
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IFARMScontinued

• Financial data from the districts
• Generates the Financial Summaries
• Included in the School Profiles Report
• Used to complete federal surveys
• Ranks Idahos educational spending as compared to
  other states
• Allocates Title I dollars to the State of Idaho

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IFARMScontinued

• Financial data from the districts, continued
• Basis for determining in-state and out-of-state
  tuition rates
• Used in the calculation of several of the tuition
  equivalencies
• Used by SDEs Special Education and Child
  Nutrition divisions
• Basis for calculating Indirect Cost Rates
• Basis for determining maintenance of effort
• Lots of public inquiries

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IFARMScontinued

• It is very important you use the correct fund
  numbers, revenue codes, and function/program
  codes when recording your financial activity
• Call if you are unsure how to code a transaction

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IFARMSconcluded

• Questions?

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Line 6 of the Foundation Program Calculation
Worksheet
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Line 6 Funding May Include

• District to Agency Contracts
• Special Education Tuition Equivalency
• Court-Ordered Tuition Equivalency
• Juvenile Detention Center Tuition Equivalency
• Summer Juvenile Detention Center Tuition
  Equivalency
• Serious Emotional Disturbance (SED) Allowance

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District to Agency Contracts

• Idaho Code 33-2004
• Received when a district contracts with a public
  or private agency to educate exceptional students
• Payment
• Best 28 Weeks ADA
• x Prior Year Per Pupil State Support
• District to Agency Contract Reimbursement

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District to Agency Contractscontinued

• Prior Year Per Pupil State Support
• (Prior Year Base Support Prior Year Benefit
  Apportionment) / Best 28 Weeks ADA
• Initially paid with the February 15th payment and
  final payment is made July 15th
• Nine districts were paid 123,640 on 2/15/09
• In FY 2008, 219,608.48 was paid to 11 districts

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District to Agency Contractscontinued

• So you have qualifying kids, now what?
• Contact the SDE Special Education Bureau (Lester
  Wyer, 332-6916)
• Specific forms must be completed (available
  online)
• Special Education Bureau reviews the forms and
  forwards the necessary data to School Finance
• School Finance receives a list of districts, the
  educating agency, and the number of students
• School Finance pulls the attendance data needed
  from the attendance forms submitted each period

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Exceptional Child Tuition Equivalency

• Idaho Code 33-1002B(3)
• Received when a district is educating a student
  who
• 1) is on the 12/1 Special Education child count
• 2) resides in a licensed facility due to the
  nature and severity of the disability and
• 3) whose parents live in another Idaho district

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Exceptional Child Tuition Equivalency continued

• Payment
• Number of Qualifying Students from the 12/1
  Child Count
• x (42 of Prior Years Gross Annual Tuition Rate
  Prior Year Excess Cost Rate)
• Exceptional Child Tuition Equivalency
• Paid with the February 15th payment
• 19 districts were paid 1,292,453 on 2/15/09 11
  districts received 993,058 in FY 2008 22
  districts received 1,418,512 in FY 2007

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Exceptional Child Tuition Equivalency continued

• So you have qualifying kids, now what?
• Work with SDEs Special Education Bureau (Lester
  Wyer, 332-6916)
• Special Ed has an application available online
  that must be completed (students are listed
  individually)
• Special Ed reviews the application and verifies
  that students listed are on the 12/1 child count
• School Finance receives a summarized list of
  districts and the number of qualifying students

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Excess Cost Rates

• Determined annually using Special Education
  expenditure information taken from the annual
  financial reports and the 12/1 child count
• 2007-2008 Excess Cost Rate 7,401
• 2006-2007 Excess Cost Rate 6,853
• 2005-2006 Excess Cost Rate 6,437
• 2004-2005 Excess Cost Rate 6,124
• 2003-2004 Excess Cost Rate 5,612

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CourtOrdered Tuition Equivalency

• Idaho Code 33-1002B(1)
• Received when a district educates students placed
  into a licensed home or facility by an Idaho
  court-order
• Beginning with the 2001-2002 school year, Idaho
  Code was amended to include licensed homes, which
  includes foster homes
• 1,100,842 paid to 51 districts in FY 2008
  1,213,994 paid to 45 districts in FY 2007 and
  1,229,003 paid to 48 districts in FY 2006

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Court-Ordered Tuition Equivalencycontinued

• To receive payment, a district must submit the
  court-ordered tuition equivalency form
• The form will be emailed to districts in April
• The form should be returned AFTER the last day of
  school or after the eligible child(ren) is no
  longer living in the licensed home or facility
• Forms returned prior to the last day of school
  showing perfect attendance through the end of the
  school year will be returned

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Court-Ordered Tuition Equivalency continued

• The form must include the number of days present
  for each student, their grade level, and the name
  of the home or facility
• Talk to your school counselors
• Contact your regional Health and Welfare office
• Paid with the July 15th payment
• Funding is in addition to the regular
  support-unit funding for these students

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Court-Ordered Tuition Equivalency continued

• When contacting your regional Health and Welfare
  office
• DO NOT wait until the end of the school year to
  contact HW and expect an immediate reply
• Be specific in your request (names, dates)
• HW needs time to compile the listing of students
• Once you receive the listing, you need to
  determine
• Was the student attending school in your
  district?
• If the student was attending in your district,
  how many days of attendance did that student have
  for the school year while in foster care

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Court-Ordered Tuition Equivalencycontinued

• Once School Finance has received the completed
  form, we
• Calculate the total days of attendance for
  elementary students
• Calculate the total days of attendance for
  secondary students
• Multiply the total number of attendance days by
  the applicable elementary or secondary prior
  years daily tuition rate
• Daily rate 42 of the gross monthly tuition
  rate divided by 20 days

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Juvenile Detention Center Tuition Equivalency

• Idaho Code 33-1002B(2)
• Received when a district educates students placed
  into a juvenile detention facility by an Idaho
  court-order
• To claim the equivalency, submit the long-form
  attendance report along with the other
  attendance reports due that period
• Calculation is very similar to the Court-Ordered
  Tuition Equivalency calculation
• 581,403 paid for the 2007-2008 school year,
  68,202 paid for the 2008 summer session

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Juvenile Detention Center Tuition
Equivalencycontinued

• Payment
• -Regular Juvenile Detention Center Tuition
  Equiv. - Multiply the total number of days by
  42 of the prior years gross monthly tuition
  rate (elementary or secondary) / by 20 days
• -Summer Juvenile Detention Center Tuition
  Equiv. - Multiply the total number of days by ½
  of 42 of the prior years gross monthly tuition
  rate (elementary or secondary) / by 20 days
• Regular Tuition Equivalency paid with the July
  15th payment
• Summer Tuition Equivalency paid with the February
  15th payment

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Serious Emotional Disturbance (SED) Allowance

• Idaho Code 33-2005
• Received when a district is educating a higher
  than average percentage of SED students
• To receive a SED payment, a district needs only
  to submit an accurate 12/1 child count to the
  Special Education Bureau (Lester Wyer)

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Serious Emotional Disturbance (SED)
Allowancecontinued

• Special Ed determines the statewide SED
• Total SED students statewide (from the 12/1
  child count) / Total statewide enrollment SED
• Special Ed then multiplies that by the
  districts enrollment to determine the expected
  number of SED students for that district
• If the actual number of SED students at the
  district is higher than the expected number of
  SED students, the excess is multiplied by the
  prior years excess cost rate
• 36 districts received 2,562,597 on 2/15/09 40
  districts received 2,204,819 in FY 2008 35
  districts received 1,971,010 in FY 2007 and 29
  districts received 1,841,853 in FY 2006

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Serious Emotional Disturbance (SED)
Allowancecontinued
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Other State FundingConcluded

• Questions?

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Other Indirect Costs

• An indirect cost rate is a reasonable means of
  determining the of allowable general
  administrative expense that each federal grant
  should cover
• Now issuing 2009-2010 indirect cost rates to
  those schools requesting the rate
• An indirect cost rate is the ratio of total
  indirect costs to total direct costs, based on
  actual expenditures, exclusive of items such as
  capital outlay and debt service
• A manual is available on our website under Forms
  at www.sde.idaho.gov/site/finance_tech/forms.htm

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Other Tuition Rates

• We will be calculating 2009-2010 rates in the
  next few weeks using 2007-2008 financial data
• Idaho Code 33-1405 requires a district to charge
  out-of-state student tuition to those students
  whose home district is outside of Idaho
• Can request a waiver from the State Board of
  Education for any portion of the tuition rate
• Waiver must be submitted before April 1

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CALENDARS

• Required by Idaho Code 33-512
• Due to School Finance by May 15th for the
  2009-2010 school year
• 2009-2010 calendar forms and a Calendar Manual
  are available on our website at
  www.sde.idaho.gov/financeandtechnology/forms.asp
• Forms were emailed to Superintendents on January
  26, 2009
• Include a copy of the school calendar given to
  patrons
• Call 332-6840 with any questions

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Minimum Instructional Hours asRequired by Idaho
Code 33-512

• Grades 9-12 - 990 instructional hours
• Grades 4-8 - 900 instructional hours
• Grades 1-3 - 810 instructional hours
• Kindergarten - 450 instructional hours

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Instructional Hours May Be Reduced For Staff
Development

• Up to 22 hours for actual qualified staff
  development activities (11 hours for
  kindergarten)
• Staff development is time set aside for the
  training of teachers to allow for the development
  of teaching skills
• Teacher prep days, work days, parent teacher
  conferences, and mentor time are examples of
  activities not considered to be staff development
  activities
• Staff development hours are not limited to the
  length of the normal school day and may occur
  prior to the first day and after the last day of
  school for students
• You can have as many staff development hours as
  you want, but only 22 hours count as
  instructional time

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Instructional Hours May be Reduced for Emergency
Closures

• Up to a total of 11 hours for emergency school
  closures due to adverse weather conditions and
  facility failures
• For instructional hour purposes only, a closure
  due to widespread sickness is not a qualified
  emergency closure

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Instructional Hours may be reduced for Grade 12
Students

• Up to 11 hours for grade 12 students ONLY
• Many districts end the school year earlier for
  grade 12 students
• If your district elects to reduce the amount of
  instructional time for grade 12 students, a
  separate calendar must be completed for grade 12
• A calendar for grades 9-12 as well as a calendar
  specifically for grade 12 students is included in
  the packet of calendars emailed to your district

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When Planning a Shortened Session

• For Calendar purposes, ANY day shorter than your
  regular day of instruction is considered a
  shortened session and should be marked on your
  calendar with a circle
• All shortened days should be listed in the grid
  at the bottom of the calendar

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When Planning a Shortened Session continued

• For Attendance reporting purposes, a full day of
  attendance (1.0 ADA) is reported for students
  under instruction at least 4.0 hours (excluding
  recess, passing time, breaks, lunch, etc)
• For Attendance reporting purposes, a half-day of
  attendance (.5 ADA) is reported for students
  under instruction at least 2.5 hours but less
  than 4.0 hours
• For Attendance reporting purposes, kindergarten
  cannot have half-sessions of attendance the
  students are either under instruction a minimum
  of 2.5 hours or they are not counted in ADA

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When Planning a Shortened Session continued

• To maximize ADA, a district might want to keep
  instructional time for shortened sessions to at
  least 4.0 hours for grades 1 12 students and
  2.5 hours for kindergarteners
• Bussing schedules and other issues may preclude
  this from occurring
• Any day with less than 2.5 hours of instruction
  will still be counted towards the minimum
  instructional hours required, but no attendance
  would be reported for that day

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Calendars

• Notify School Finance of any changes made to your
  calendar during the school year
• Submit the Certificate of Closure with your
  attendance reports for any emergency closures you
  had during that attendance period along with a
  copy of your board minutes authorizing the
  emergency closure
• Please call with any questions you may have when
  completing the calendars

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School Facility Maintenance and Repairs

• Idaho Code 33-1019

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Idaho Code 33-1019 - Allocation for School
Building Maintenance (HB 743)

• Must allocate or spend at least 2 of the
  replacement value of student-occupied buildings
  for qualifying maintenance and repairs
• Replacement value square footage of
  student-occupied school buildings x 81.45
  replacement value (for FY 2009)

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Idaho Code 33-1019 - Allocation for School
Building Maintenance (HB 743)

• Square footage information collected each summer
  for the upcoming school year
• Exclude the square footage of student-occupied
  buildings less than one year old on the first day
  of school
• Square footage needed to calculate the state
  match
• If the full 2 allocation is not spent, the
  unspent dollars must be reserved for future years
• Excess expenditures may be carried forward in
  certain circumstances

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Coding of Expenditures

• Qualifying expenditures may be coded to any
  governmental fund using Function Codes 664 810
• Function Code 664 Maintenance Student
  Occupied Buildings
• Function Code 810 Capital Assets Student
  Occupied Buildings (Qualifying Expenditures)
• Non-qualifying repairs and maintenance
  expenditures and non-qualifying capital asset
  activities should be coded using Function Codes
  663 811
• Function Code 663 - Maintenance Non-Student
  Occupied
• Function Code 811 Capital Assets Non-Student
  Occupied ( Stud. Occ. Non-Qualifying
  Expenditures)

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Maintenance and/or Repairs for Serious or
Imminent Safety Hazards on the Property

• Maintenance and/or repairs outside the building
  must be formally declared serious or imminent
  safety hazards (Idaho Code 39-8004) by the
  Division of Building Safety to be qualifying
  expenditures
• Think you have a serious or imminent safety
  hazard? Call the Division of Building Safety at
  334-3950

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Excess Expenditures

• Expenditures exceeding twice your required
  allocation (4 floor) may be carried forward
  for up to 15 years to reduce future year
  allocations
• Expenditures greater than the required allocation
  but less than twice your required allocation may
  be used to reduce prior year unexpended
  allocations carried forward

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School Building Maintenance Report

• Due December 1
• Requesting the due date be changed to later in
  December or early January
• Must include
• Square footage of student-occupied school
  building floor space
• The funds and fund sources allocated for school
  building maintenance and any unexpended
  allocations carried forward from prior fiscal
  years
• Projects on which moneys were expended, including
  the amounts and categories
• The planned uses of the next years school
  building maintenance allocation

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In Summary

• You must allocate (not deposit) an amount equal
  to 2 of the replacement value of school
  buildings for qualifying school maintenance and
  repairs
• If qualifying school maintenance and repair
  expenditures dont equal the 2 replacement value
  of school buildings, the difference must remain
  allocated for the purposes of IC 33-1019(3)
• Consider using Fund 240 or Fund 430 to
  carry-forward unspent maintenance dollars

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