Kentucky Department of Education Division of District Support KDE RESOURCES- NEW ITEMS

Changes to Indirect Cost Rate Process Updated KY School District Insurance Guide Updates to Affordable Care Act Guide Update to Redbook FAQ Financial Management Manual NEW ITEMS 2

Fiscal Year 2015 Rates INDIRECT COST CALCULATIONS

Federal review of rate methodology going on now Errors already found: 1.Apply the rates from July 1 – June 30 2.KBE must approve 3.Adjustment opportunity More changes could be required FEDERAL REVIEW 4

Rates must be applied the same way they are calculated 1. APPLY THE RATES JULY 1 – JUNE 30 5

If a district used the FY 13 rate for Jul, Aug, or Sept 2013 the district must correct any overcharge Calculate the indirect costs using the FY 14 rate for those months Reduce future indirect costs in FY 14 to correct the total charged 1. APPLY THE RATES JULY 1 – JUNE 30 6

KBE has approved all district rates for FY 15 On KDE website 2. KBE MUST APPROVE THE RATES 7

Districts must review and certify the rates by affirming adjustment amounts, if any Will be performed in Feb/Mar timeframe each year 3. ADJUSTMENT OPPORTUNITY 8

KDE CONTACT INFORMATION Susan BarkleyKaren Conway Assistant DirectorEducational Financial AnalystDivision of District Support 15 th Floor, 500 Mero Street15 th Floor, 500 Mero StreetFrankfort, KY Phone: (502) , ext. 4437Phone: (502) , ext

KENTUCKY SCHOOL DISTRICT INSURANCE GUIDE - UPDATE

The following information has been revised in Section 1 of the Insurance Guide Procurement  Multiyear Awards  Insurance Consultant  Agent of Record  This section also includes a step by step guide on page 10. “Are you Bid Law or MPC? REVISED INSURANCE GUIDE INFORMATION

MULTIYEAR AWARDS 12  Board has right to change Agent of Record at any time.  Insurance policies can be cancelled at any time by the district, in conformity with the cancellation provision in the contract  The insurance carrier should send you a renewal notice with a price for the upcoming year(s). This will assist the district in determining whether or not to re-bid the contract.

INSURANCE CONSULTANT/AGENT OF RECORD 13  Insurance consultants may be used by the district but the service should be obtained through a bid.  Must make a cost/benefit determination for hiring an insurance consultant  Districts are not required to issue an agent of record letter, and an agent of record letter is not required to obtain quotes.  Selection of Agent of Record should be based on services, not price.  The Agent of Record is prohibited from providing a ‘rebate’ on the premium paid to the insurance company

The following information has been revised in Sections 2, 3, 4 and 6 of the Insurance Guide  Auto and Fleet Insurance  General Liability Insurance  Educators’ Legal Liability Insurance  Coverage Amount  Unemployment Insurance REVISED INSURANCE GUIDE INFORMATION

AUTO AND FLEET INSURANCE 15  All districts must purchase additional liability and indemnity insurance for KISTA covered buses.

GENERAL LIABILITY INSURANCE 16  Districts should ensure that authorized volunteers are covered under the General Liability Insurance

EDUCATORS’ LEGAL LIABILITY INSURANCE 17  This insurance protects a school district from certain legal claims stemming from inappropriate or illegal actions by staff, teachers, or board members (KRS )  Coverage amounts vary by school district. Neither state statute or administrative regulation prescribe coverage amounts, so local boards should determine how much insurance to purchase

UNEMPLOYMENT INSURANCE 18  Public school districts must provide unemployment insurance benefits to their employees (KRS Chapter 341)  Since unemployment insurance is provided through payment of a ‘tax’ instead of a premium, this service cannot be bid by an insurance company

The following information has been revised in Sections 7 and 9 of the Insurance Guide  Workers’ Compensation Insurance  Student Accident Insurance REVISED INSURANCE GUIDE INFORMATION

WORKERS COMPENSATION INSURANCE 20  Policies are written in two parts.  The first provides coverage for injuries, regardless of fault, that occur to the employees acting within the course and scope of employment.  The second part provides liability coverage for action brought by employees, family members, relatives, and third parties against districts.

STUDENT ACCIDENT INSURANCE 21 A Student Accident Insurance plan may be adopted in an effort to reduce general liability losses. Participation may result in a reduction in premiums. This is a secondary coverage to family insurance plans to help with co-payments and deductibles and will only pay eligible medical expenses not covered by those plans.

The Kentucky School District Insurance Guide can be located on KDE’s website at Click on the following links: District/School Support Overview District Financial Reporting Finance Officer Training, Insurance Guidelines, etc…. REVISED INSURANCE GUIDE (APRIL 2014)

Susan Barkley Assistant Director Division of District Support 15 th Floor, 500 Mero Street Frankfort, Ky Phone: (502) , extension 4437 Renee Thomas Educational Financial Analyst Division of District Support 15 th Floor, 500 Mero Street Frankfort, Ky Phone: (502) , extension 4454 KDE CONTACT INFORMATION

UPDATES TO AFFORDABLE CARE ACT GUIDE

AFFORDABLE CARE ACT Transition Relief for 2015: Large Employer Status Substantial Compliance Clarification of full-time status 25

LARGE EMPLOYER 2015 = 100 or more FT & FTEs 2016 = 50 or more FT & FTEs Most KY school districts are large 26

SUBSTANTIAL COMPLIANCE Threshold before penalty assessment: 2015 = 70% of full-time employees 2016 = 95% or no more than 5 full-time employees Penalty is Number of FT employees minus 30 Multiplied by $167 per month 27

CLARIFICATION OF FULL-TIME STATUS Hours of Services will not include: Hours worked as bona fide volunteers Seasonal employees < 6 months 28

REVISED AFFORDABLE CARE ACT IMPLEMENTATION GUIDE Affordable Care Act Implementation Guide Revised May 2014 is located on KDE’s website at Click on the following links: District/School Support Overview District Financial Reporting Health and Life Insurance Benefits and Flexible Spending Accounts 29

KDE CONTACT INFORMATION Susan BarkleyMelissa Sullivan Assistant DirectorEducational Financial AnalystDivision of District Support 15 th Floor, 500 Mero Street15 th Floor, 500 Mero StreetFrankfort, KY Phone: (502) , ext. 4437Phone: (502) , ext

31 REDBOOK UPDATED FAQS

TRANSPORTATION FOR STUDENT GROUPS 32 Costs directly and solely attributable to the group only Driver salary/benefits Fuel Other items if appropriately calculated and documented NO depreciation Don’t simply use the cost per mile for SEEK purposes

KDE CONTACT INFORMATION Susan Barkley Assistant Director Division of District Support 15 th Floor, 500 Mero Street Frankfort, KY Phone: (502) , ext

34 FINANCIAL MANAGEMENT MANUAL

35 An electronic “table of contents” for many finance topics and resources On KDE website at: Finance Officer Training, Insurance Guidelines, Key Financial Indicators, Financial Management Calendar, Finance Newsletters and Who Does What in DDS

Includes: – Revenue Sources – Budgeting and Financial Accounting – SBDM Financial Management – Restricted Funds/Balances – Debt Management – Procurement – Miscellaneous topics – Copies of reports to be filed

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