Special Education Fiscal Overview Session 2

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Special Education Fiscal OverviewSession 2

• Kathy Guralski, School Finance Auditor
• Lori Ames, School Finance Consultant
• 11/28/06

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Agenda

• Project Code Accounting Review
• Accounting Examples
• District-Operated Programs
• Tuition Payments
• 66.03 Contracts
• Package Programs
• Deductible Receipts
• Questions Answers

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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.

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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

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Project Code

• Grant Funded
• Own 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

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Project Code

• Funded by a CESA/CCDEB as a result of a package
  program host district expense.
• 091 CESA Package Program
• 092 CCDEB Package Program

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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?

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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.

10
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)

11
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

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Directly incur costs

• Example
• 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

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Directly incur costs

• Example
• 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

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Directly incur costs

• Example
• 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

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Directly incur costs

• Example
• 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

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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.

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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

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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

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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)

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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)

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Expenditure Coding

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

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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.

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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

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Purchase service from another school district

• Example
• District A provides special education services
• District B resident student open enrolls or
  attends District A

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Purchase service from another school district

• Example 1
• District B pays flat tuition rate to District A
• Local funds - 27E 437000 382 019
• IDEA - 27E 437000 382 340
• Example 2
• District 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)

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Purchase service from another school district

• Example 3
• District 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)

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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 Services381 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

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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.)

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66.0301 cooperative agreement

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

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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

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66.0301 cooperative agreement

• Who 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

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66.0301 cooperative agreement

• Flow 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

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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

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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

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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

• Participating District

• Fiscal Agent
• Flow Through
• 27R 730

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Fiscal agent receives categorical aid in
following year

• Participating District

• Fiscal Agent
• Categorical Aid
• 27R 611

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

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Purchase service from CESA/CCDEB

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

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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

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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

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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

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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

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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

• Participating District

• Fiscal Agent
• Flow Through
• 27R 730

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CESA receives categorical aid in following year

• Participating District

• CESA
• Categorical Aid
• 27R 611

CESA transits to participating districts their
portion of the categorical aid

• CESA
• Categorical Aid
• 27E 491000 936 019

• Participating District
• 27R 516

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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

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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

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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

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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

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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

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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)

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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

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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.

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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.

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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.

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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

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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

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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.

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Resources

• Special Education Media-Site Session 3 Date
  to be Determined
• http//media2.wi.gov/dpi/viewer/?cid2352cf23-e13
  0-4a9c-b83f-8f8e90b15f41
• Open Enrollment
• http//www.dpi.wi.gov/sfs/doc/open_enrollment_wuf
  ar.doc
• Selected WUFAR Coding for Fund 27
• http//www.dpi.wi.gov/sfs/xls/spr_wufar_code.xls
• Function 430000
• http//www.dpi.wi.gov/sfs/doc/funct_430.doc

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Resources

• Coop Agreement 66.0301
• http//www.dpi.wi.gov/sfs/coop_agree.html
• Fiscal Agent Requirements
• http//www.dpi.wi.gov/sfs/doc/fisagnt.doc
• Fiscal Agent Agreement Account Coding
• http//www.dpi.wi.gov/sfs/xls/fisagagree.xls
• Fiscal Agent-Example of Level 3 Documentation
• http//www.dpi.wi.gov/sfs/doc/fisagnt_example.doc

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Contacts

• Beverly Kraus 608-266-1089
• beverly.krause_at_dpi.state.wi.us
• Lori Ames 608-266-3464
• lori.ames_at_dpi.state.wi.us
• Kathy Guralski 608-266-3862
• katherine.guralski_at_dpi.state.wi.us

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Questions?

• Click on the ask button above the speaker box,
  type in your question, and press send
• If you are asking a question after the live
  presentation, please insert your email address so
  a response can be sent directly to you.

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PRODUCED BYDaryl Miller