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 Examples  District-Operated Programs  Tuition Payments  Contracts  Package 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 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

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

Account/Project Coding You have a special education cost:  Directly incur costs  Provide service to another district  Purchase service from another school district  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 costs  Example Hire CD teacher  What is the source to fund the cost?  Categorical aid 27E /  IDEA Grant 27E /  Local 27E /  Who are you receiving the funding from?  DPI – Categorical SPED aid 27R 611  DPI – Flow Through 27R 730  Transfer from General Fund 27R

Directly incur costs  Example Incur supplies  What is the source to fund the cost?  IDEA Grant 27E  Local 27E  Who are you receiving the funding from?  DPI – IDEA source 730  Transfer from General Fund 27R

Directly incur costs  Example Contract for OT services  What is the source to fund the cost?  Categorical aid 27E  IDEA Grant 27E  Local 27E  Who are you receiving the funding from?  DPI – Categorical SPED aid 27R 611  DPI – Flow Through 27R 730  Transfer from General Fund 27R

Directly incur costs  Example Contract for Special Transportation Services  What is the source to fund the cost?  Categorical aid 27E  IDEA Grant 27E  Local 27E  Who are you receiving the funding from?  DPI – Flow Through 27R 730  DPI – Categorical SPED aid 27R 611  Transfer from General Fund 27R

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

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 )

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 )

Expenditure Coding Expenditure Payment for Transit of State Special Ed Categorical Aid:  To another LEA27E

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

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 1  District B pays flat tuition rate to District A  Local funds - 27E  IDEA - 27E  Example 2  District B pays flat tuition rate plus additional cost to District A (No IDEA funds)  27E  Special education aid transited to District B for amount of additional eligible cost (Source 316)

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  27E 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 Typical Functions:  General Tuition Co-Curricular General Tuition Open Enrollment Special Education - Non Open Enrollment 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 Examples:  Special Ed Payment to CESA 27E  Special Ed Payment to Another District (not O.E.) 27E  Non-Special Ed Payment to CESA 10E  Special Ed Payment to WTCS 27E  Special Ed - Open Enrollment 27E  Non-Special Ed Open Enrollment 10E  Non-Special Ed Payment to Private School 10E (371, 372, etc.)

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

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

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

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

Cost of program incurred CD Teacher  Fiscal Agent  Categorical Aid  27E /  Flow Through  27E /  Participating District  Cannot hire staff Supplies  Fiscal Agent  Not Eligible Categorical Aid  27E  Flow Through  27E  Participating District  Not Eligible Categorical Aid  27E  Flow Through  27E

Fiscal agent reimburses participating organization for any cost they incurred Supplies  Fiscal Agent  Not Eligible Categorical Aid  27E /  Flow Through  27E / 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 , 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  Participating District  27R 316

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.

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 /  Flow Through  27E /  Host District hires  Not Eligible Categorical Aid  27E /  Flow Through  27E / Supplies  CESA incurs  Not Eligible Categorical Aid  27E  Flow Through  27E  Host District incurs  Not Eligible Categorical Aid  27E  Flow Through  27E

CESA reimburses participating district for any cost they incurred CD Teacher  CESA  Categorical Aid  27E /  Identify 011 in package program  Flow Through  27E /  Host District  Categorical Aid  27R 546  Flow Through  27R 517 Supplies  CESA  Categorical Aid  27E /  Flow Through  27E /  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 , 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  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  From a CCDEB  From a CESA  27R 611  27R 316  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  From a CCDEB  From a CESA  27R 730  27R 317  27R 517

Who are you receiving the funding from? Revenue Receipt for Tuition/ 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 e130-4a9c-b83f-8f8e90b15f41 Open Enrollment wufar.doc Selected WUFAR Coding for Fund 27 Function

Resources Coop Agreement – Fiscal Agent Requirements Fiscal Agent Agreement Account Coding Fiscal Agent-Example of Level 3 Documentation

Contacts Beverly Kraus Lori Ames Kathy Guralski

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PRODUCED BY: Daryl Miller