Tracking Stimulus Funding: Is Your Accounting Train on Track?

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Tracking Stimulus Funding Is Your Accounting
Train on Track?

• 2010 PASBO Conference
• Thursday, March 11, 2010, 900-1000 A.M.
• Hershey Lodge Convention Center
• Empire A-B-C

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School District Perspective

• Christopher Berdnik
• Chief Financial Officer/Chief Operations Officer
• School District of Pittsburgh
• Roberta Strauss
• Associate Director, Budget Development,
  Management and Operations
• School District of Pittsburgh

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ARRA began 2/17/2009

• Creation of a 4-Person Stimulus Team including
  the Superintendent, Deputy Superintendent, CAO,
  CFO/COO.
• Priorities were costed out and agreed upon over a
  series of meetings, and presented to the Board of
  School Directors in March and April 2009.

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PDE initially told us to expect

• Basic 5.05 million
• ARRA IDEA 7.85 million
• ARRA Title I 16.12 million
• SFSF 13.62 million
• Total 42.64 million

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Spending Plan

• Basic Ed SFSF 5 million was initially budgeted
  to save 100 low-seniority General Fund teaching
  positions.
• IDEA The ARRA IDEA allocation gave us our first
  opportunity to make use of the IDEA Maintenance
  of Effort provision.

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Spending Plan - IDEA

• Save 30 Special Ed Teaching Positions
• - used a higher average salary than for
  Basic Ed positions
• Hire 5 new Special Ed Curriculum Specialists
• Return students to District from Approved Private
  Facilities, using both contracts and new staff
• Expand Behavioral Support services
• Professional Development for Special Ed and
  Partner Teachers
• Equitable Participation, Charter Schools

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Spending Plan Title I

• 2/3 to be spent on the Literacy component of an
  innovative 2-year summer program for middle grade
  students, including waived set-asides from SES
  and School Choice transportation.
• 16 new positions (14 middle grade literacy
  interventionists and 2 central literacy staff)
• Non-public math instruction
• School-based parental involvement

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Spending Plan SFSF to LEAs

• Full-funding of afternoon activities to
  complement the summer literacy program, including
  new staff to manage the program
• IT and Assessment support to track summer program
  results
• School modernization costs

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Reality Check

• Pittsburghs actual SFSF to LEA allocation was
  zero.
• The RFP process for summer activities was
  redesigned to include literacy, with private
  funding requested for service providers with no
  Title I tie-in.
• Summer managers moved to funds available from
  IDEA MOE.
• No funds for school modernization.
• In February, the Federal portion of the basic
  subsidy had to be revised to include the entire
  18.6 million, which now supports 202 teacher
  salaries.

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Guidance Documents

• 12/18/09 Revised Federal Guidance
  http//www.whitehouse.gov/omb/assets/memoranda_201
  0/m10-08.pdf
• PA Department of Education Section 1512 Reporting
  Site
• http//www.portal.state.pa.us/portal/server.pt/co
  mmunity/american_recovery_and_reinvestment_act/176
  96/section_1512_reporting/613064
• The PDE Site contains the pdf documents,
  Step-by-Step Guide for eGrants and PDE Quick
  Guide for 1512 Revised Jobs Reporting, Jan 2010

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Initial Calendar for ARRA Section 1512 Reporting

• 9/18/09 One-Time Survey
• 10/5/09 Data Collection through 9/30/09
• 12/17/09 Data Collection through 12/31/09
• 12/23/09 Heads-up from PASBO that USDE changed
  the guidance for the 12/31 reports on 12/18/09
• 12/28/09 notice from PDE that changes to the
  12/31 reports would be required
• 1/6/10 notice from PDE that revised reports for
  12/31/09 would be due 1/13/10

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PDE e-grants menu top half
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PDE e-grants menu bottom half
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Expenditure Tracking

• ARRA funds have discrete coding within the
  Districts system, as all supplemental funds do.
• In July 2009, a team from the U.S. Department of
  Education, Office of Inspector General (OIG) came
  to Pittsburgh to review our control systems to
  ensure the proper administration of ARRA funds.

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Tracking job impact

• We maintain a Master Job Impact Excel document
  containing
• Employee identifier (e.g. IDEA Employee 15)
• Employee name
• Job title
• FTE
• Impact date
• Hours in a normal workday for each employee
• Standard number of workdays for each quarter
• Actual number of workdays for each quarter for
  each employee, with notes explaining differences
  from the maximum.

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Master Job Impact Worksheet
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Master Job Impact Worksheet
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Master Job Impact Worksheet
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Job Impact Document

• The job impact document allows us the flexibility
  to calculate answers to whatever questions we are
  being asked for reporting purposes.

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Vendors, Charter Schools, Non-Public

• We have made telephone contacts to each charter
  school, vendor, and non-public school
  representative each quarter, asked the required
  questions and backed up the answers with e-mail
  verifications. Impacted staff are included on
  the master document and reported.
• To comply with reporting for the Food Service
  Equipment grant, we verified information about
  each piece of equipment that was purchased via
  phone contacts with the vendor.

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Summer program vendors

• Since the service provider list for the summer
  literacy program is substantial and will be
  generating many new jobs in a short period of
  time, a job information sheet has been included
  with the contract package for each vendor.
• The summer program vendors will submit job
  information on a monthly basis.

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More Federal Review

• In January 2010, a team from the U.S. Government
  Accountability Office conducted a one-hour
  conference call to discuss our State ARRA job
  reporting methodology and the types of contacts
  and support that we receive from PDE.
• We expressed our strong preference for the
  revised version of the 12/31/09 reports.

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Example of revised reporting data entered into
e-grant
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PAEdTrak System Announced 3/3/10

• E-grants will not be used to collect ARRA
  reporting for the 3/31/10 quarter.
• User registrations had to be entered by 3/10/10
  in the PAEdTrak system.

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Title II/D EETT Award

• On February 12, Pittsburgh was awarded 2,999,994
  in ARRA Title II/D funds, which was the entire
  amount of our application.
• The Classrooms for the Future program, currently
  in 3 schools, will expand at 2 of those schools,
  extend to 2 more, plus the PPS/PFT Promise
  Academy.
• Professional development, whole-school wireless
  access, and distance learning equipment
• 2 Technology Integration Coaches 1 Computer
  Repair Technician 1 Network Administrator

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Post-Stimulus Plans

• While it is doubtful that all of the new
  activities can be maintained post-ARRA, the
  program to bring Emotional Support students back
  into the Districts classrooms is having a major
  positive impact in the Districts cost-effective
  delivery of Special Education services.

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Intermediate Unit Perspective

• John E. Brenchley
• Director of Management Services
• BLaST IU 17

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IDEA

• Tracking Stimulus Funding Is Your Accounting
  Train on Track?

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IDEA and IUs

• IUs are identified by PA as the LEAs to the
  Federal Government
• Distributed based on project applications
• Direct IU services
• Pass through to districts
• Every IU has differences

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Review of Maintenance of Effort, 50 rule and
Budgeting for IDEA Stimulus FundsReporting
Issues/concerns
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Maintenance of Effort (MoE)

• A federal requirement that requires grant
  recipients and/or sub-recipients to maintain a
  certain level of state/local fiscal effort to be
  eligible for full participation in federal grant
  funding.
• Grant recipients or sub-recipients not meeting
  MoE requirements face loss of a portion of their
  federal funds.

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300.203 - Exceptions to MoE for IDEA

• The voluntary departure or departure for just
  cause of special education personnel.
• Decrease in enrollment of children with
  disabilities.
• A high cost child moves out of the district,
  ages out, or no longer needs the program.
• The purchase of costly capital expenditures, such
  as a special education bus, is paid off.
• The assumption of cost by the high cost fund
  operated by the SEA.
  

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MoE Quick Reference

• Add together the Total ARRA IDEA Funds plus the
  2009-10 Regular IDEA Funds Allocation
• Compare to the 2008-09 Allocation.
• All of the maintenance of fiscal effort relief
  that comes as a result of ARRA funds will apply
  to fiscal year 2009-10.
• LEAs may use up to 50 of the increase to reduce
  the level of state and local expenditures.

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MoE Quick Reference

• LEAs must use the freed-up local or state funds
  for activities that could be supported under the
  ESEA.
• If the LEA takes advantage of this provision, the
  required MoE for future years is reduced
  consistent with the reduction it took, unless the
  LEA increases the amount of its state and local
  expenditures on its own.
• Be prepared to collect and report information on
  the use of the freed-up funds.

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300.205 Adjustments to Local Efforts

• The 50 rule
• If an LEA receives an increase in its IDEA
  allocation from one fiscal year to the next, the
  LEA may reduce its MoE obligations by half of the
  increase.
• Freed-up funds must be used to carry out
  activities that could be supported with funds
  under the ESEA.

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Discussion

• Im going to use my IDEA stimulus money to buy
  new chemistry books.
• Whats wrong with this??
• Why might someone think this is it right?

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PA School District IDEA MoE Revenue Calculation
Local/State Funds IDEA Supplemental Funds IDEA
Existing Funds
Current State/Local and Federal Funding of
Special Ed
Total 2,800,000
1,800,000
1,000,000
2008-09
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PA School District IDEA MoE Revenue Calculation
Local/State Funds IDEA Supplemental Funds IDEA
Existing Funds
The Total ARRA IDEA Allocation (plus the Regular
2009-10 IDEA allocation) is used to determine the
Maximum LEA Maintenance of Effort Reduction Amount
Current State/Local and Federal Funding of
Special Ed
MoE Revenue Calculation for IDEA Stimulus Funds
50 (400,000)
Total 2,800,000
1,800,000
50 (400,000)
Increase in Stimulus Funds 800,000
1,000,000
2008-09
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PA School District IDEA MoE Revenue Calculation
Local/State Funds IDEA Supplemental Funds IDEA
Existing Funds
Total Special Ed Costs including Stimulus Funds
Current State/Local and Federal Funding of
Special Ed
MoE Revenue Calculation for IDEA Stimulus Funds
Total 3,200,000
50 (400,000)
50 (400,000)
Total 2,800,000
1,800,000
50 (400,000)
50 (400,000)
1,400,000
Increase in Stimulus Funds 800,000
1,000,000
1,000,000
2008-09
2009-10
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PA School District IDEA MoE Revenue Calculation
Local/State Funds IDEA Supplemental Funds IDEA
Existing Funds
Total Special Ed Costs including Stimulus Funds
Current State/Local and Federal Funding of
Special Ed
All IDEA Funds must be used for expenditures
allowable under IDEA guidelines.
LEA MoE Reduction (Freed-up Local Funds)
Total 3,200,000
50 (400,000)
Total 2,800,000
1,800,000
(400,000)
50 (400,000)
1,400,000
Local funds freed up under the MoE 50 Rule
must be used to carry out activities authorized
under the ESEA/NCLB.
1,000,000
1,000,000
2008-09
2009-10
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Example of Expenditure of IDEA Stimulus Funds
Local Funds IDEA Supplemental Funds IDEA
Existing Funds
LEA MoE Reduction Amount (Freed-up Local Funds)
Current State/Local and Federal Funding of
Special Ed

• District Purchase of a Computer Lab
• 20 of the students that will use the lab have
  IEPs
• 20 of the cost of the computer lab would be an
  allowable expenditure of IDEA Stimulus Funds
• 80 of the computer lab can be paid for with
  Local Funds freed up through 50 MoE Rule Under
  34 CFR 300.205

Total 3,200,000
50 (400,000)
1,400,000
100 of IDEA Stimulus Funds must be spent on IDEA
allowable expenditures
400,000
50 (400,000)
1,000,000
2009-10
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IU 17 Example - Montgomery

• 08/09 IDEA 137 k
• 09/10 IDEA and Stimulus IDEA 304 k
• Increase 167 k
• 50 83.5 k
• Special Ed cost historically 972 k

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Montgomery cont

• 83.5 new IDEA expenses
• Assistive Tech
• New special ed hires
• Additional IU services
• Special ed proportional share (e.g. computer lab,
  etc.)
• Submit invoice with Stimulus IDEA
• Use one of the back up forms for ease of
  reporting (spreadsheet breaking out data)

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Montgomery cont

• 83.5 k 50 rule
• Submit invoice with Stimulus 50 rule
• Use part of the 971 k not identified previously
  as IDEA or ACCESS expenditures
• Put that data on the spreadsheet
• What if its not fully paid
• Need to report on the amount received

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Montgomery cont

• Freed up money needs to be accounted for
  identify big ticket items for ease (textbook
  series, regular ed portion of computer lab,
  etc.)
• Spreadsheet maintained for documentation purposes

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Reporting Requirements/Considerations

• Quarterly reports due on PAEDTrak
• Spread sheets will help to organize data
• Schedule of federal awards separate funding
  similar to the way you account for IDEA now

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Considerations cont.

• Employees supported by stimulus need to be coded
  as federal
• Social Security
• Access billers
• Need to know who is billing

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Questions/Discussion