1. Business Manager and CFO Roundtable Discussion
October 26, 2016
Hank Johnson
Consultant

2. Agenda Sponsor Introductions Upcoming Events
Child Nutrition - Update on TDA Audits
Updates on Recent TEA Correspondence
Current News and Updates/Reminders
Small Group Discussions
Discussion for Future Meetings
Questions and Comments

3. ESC Region 11 Business Services
Sponsor
ESC Region 11 Business Services
The mission of ESC Region 11 Business Services is to improve the financial management and business practices of public schools in Texas.  We meet the growing business demands of districts and charters by clustering them into an efficient model built on timely, accurate, and professional processes.

4. Upcoming Events
State (FSP) Special Allotment Monitoring Program – /13/ :00am - 04:00pm
Learn about the new Special Allotment Monitoring Program (SAMP) being implemented by TEA. Gain an understanding of how TEA will audit your supplemental state allotments for regulatory compliance from TEA Financial Compliance Division specialists Sunny Sadler and Justin Jons. Review mandated spending requirements and program intent codes used to calculate your three-year average and refresh your understanding and knowledge of student attendance compliance audits.
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5. Upcoming Events
Child Nutrition Procurement Training - January 10, (tentative)
CN Directors & Business Managers
Free
Register on ESC Region 11 website
This training will provide guidance for upcoming TDA procurement audits and highlight purchasing requirements

6. Child Nutrition Program Procurement
ESC Region 11 CN Team:
Jocelyn Karbo –
Paul Gerba –
Karen Garey –
Traliece Bradford –
Provide CN consultants by CE

7. Administrative Review Process
Conducted by the Texas Department of Agriculture (TDA)
All Contracting Entities (CEs) are reviewed on a three year cycle.
Change from Coordinated Review Effort (CRE) to Administrative Review (AR) process
AR - risk-based review
AR - longer process than the CRE
first year of new three year cycle
Nicole’s slide

8. Administrative Review Process – Training Topics
Procurement Pilot
Procurement Pilot - Lessons Learned
Procurement Review Instrument
General Procurement Standards
Nicole’s slide

9. Administrative Review Process – Training Topics
FSMCs
Co-Ops
Processing of USDA Foods
Small Purchases
Sealed Bids & RFPs
Procurement Review
Nicole’s slide

10. Administrative Review Process – Who needs to be available
Superintendent, CFO, Business Manager, CND, Procurement Specialist, FSMC personnel, Co-Op personnel, 3rd party entities, Consultants, etc.
One point of contact to organize all these personnel and documentation
Nicole’s slide

11. Recent TEA Correspondence: 2015­–2016 Per Capita Distributions from the Available School Fund
Available School Fund (ASF):
ASF per capita rate for 2015–2016
increase to $ from $

12. Recent TEA Correspondence: Final 2015–2016 School FIRST Rating
Available in the online School FIRST system
Available to the public
Based the district’s financial data for fiscal year 2015
Financial indicators specified in 19 Texas Administrative Code
Final rating are considered for LEAs accreditation

13. Recent TEA Correspondence: Final 2015–2016 School FIRST Rating
Reporting requirements
Public meeting to discuss and distribute
Within 2 months
Advertised twice in newspaper
No more than 30 days before meeting
No fewer than 14 days before meeting
Can be included in regular Board meeting
Template for report available at: FIRST web page or FIRST Rating for Charter Schools web page

14. Recent TEA Correspondence: 2016–2017 Significant Expansion of Enrollment—Open-Enrollment Charter Schools
Open-enrollment charter schools awarded 2016–2017
No Child Left Behind (NCLB), and/or
Individual with Disabilities Education Act, Part B (IDEA-B)
May qualify for additional funding under those grants if:
They meet specific criteria defining significant expansion of enrollment.
Significant Expansion of Enrollment Criteria for NCLB
A minimum total student enrollment of 300
At least a 50% increase in the ages 5–17 student enrollment

15. Recent TEA Correspondence: 2016–2017 Significant Expansion of Enrollment—Open-Enrollment Charter Schools
Significant expansion of enrollment for IDEA-B, must meet both of the following criteria:
A minimum total student enrollment of 50
At least a 50% increase in the total student enrollment from previously reported student counts

16. Recent TEA Correspondence: House Bill 2610 Funding Implications for the 2016–2017 school year
FSP funding will be proportionately reduced for
Attendance on any campus less than 75,600 minutes
Net of adjustments for an approved waiver from the TEA
Minutes will be determined on your submitted campus calendars.
If LEA has applied for and received approval for waived minutes of instruction, then the sum of operational and waiver minutes must be at least 75,600.

17. Recent TEA Correspondence: House Bill 2610 Funding Implications for the 2016–2017 school year
Student Attendance
For a student to be eligible for full-day funding
the student must be offered and provided at least 240 minutes of instruction (classroom) time.
For student to be eligible for half-day funding
the student must be offered and provided at least 120 minutes of instruction (classroom) time.
There is no change to the way student attendance is taken.
The Student Attendance Accounting Handbook has been updated and can be found by following this url:

18. Recent TEA Correspondence: House Bill 2610 Funding Implications for the 2016–2017 school year
Waivers:
School districts must provide 75,600 minutes beginning with this current school year.
Dropout recovery campuses can apply for one-time waiver for
i.e. charters, alternative education programs and disciplinary alternative education programs, if
operated with less than 75,600 minutes in prior years, and
continuing with the same number of operational minutes in 2016­– 2017

19. Recent TEA Correspondence: House Bill 2610 Funding Implications for the 2016–2017 school year
Waivers (Continued):
Half-day prekindergarten programs operating with less than 37,800 minutes in prior years automatically granted a one-time waiver for the 2016­–2017 school year if:
Continues with the same number of operational minutes in 2016­– 2017), and
Provides a minimum of 120 minutes of classroom time per day.
Receive full prekindergarten funding

20. Recent TEA Correspondence: House Bill 2610 Funding Implications for the 2016–2017 school year
Calendar Reporting
Beginning with the 2016­–2017 school year,
Districts and charter schools are required to submit calendars for all campuses to the Texas Education Agency (TEA)
The submission will be part of the third Public Education Information Management System (PEIMS) submission due June 22, 2017.

21. Recent TEA Correspondence: Charter School Depository Contract
All charter holders and charters schools must submit a Depository Contract by December 1, 2016
Signed and Approved
Not acceptable*: A signed statement that there have been no changes to the depository contract
*Accepted in the past but not for the current year
Must submit the contract

22. Recent TEA Correspondence: 2015–2016 Near-Final Summary of Finances
Average Daily Attendance (ADA) and Full-Time Equivalents (FTEs)
Line 7 of the SOF shows the near-final calculation of students in weighted average daily attendance (WADA).
No adjustments for declining enrollment –2016 school year.
Property Value Decline
No adjustments for declining property value –2016 school year.
Tax Collections 
Adjustment to the Compressed Tax Rate for Certain School Districts

23. Recent TEA Correspondence: 2015–2016 Near-Final Summary of Finances
Per Capita Rate
New Instructional Facility Allotment (NIFA)
Transportation Allotment
High School Allotment
State Aid Reduction for WADA Sold
Near-final Chapter 41 Cost of Recapture Report. 
Staff Salary Allotment
Existing Debt Allotment (EDA)
Instructional Facilities Allotment (IFA)
Additional State Aid for Homestead Exemption (ASAHE) for facilities

24. Recent TEA Correspondence: Corrected 2015–2016 Near-Final Summary of Finances
Mainstream Average Daily Attendance (ADA)
Data submitted using Texas Student Data System (TSDS)
Incorrectly transformed at TEA
Resulting in an overstatement and possible overpayment
No impact if used EDIT+
Check the numbers

25. Recent TEA Correspondence: School Health and Related Services (SHARS) Reporting Requirement
LEAs must submit the SHARS Reimbursement Report if:
Received IDEA-B grant funding in the 2015–2016 school year
Regardless of whether they received SHARS
The form is available from the GFFC Reports and Data Collections application
Deadline for submitting the form is October 31, 2016.

26. Recent TEA Correspondence: School Health and Related Services (SHARS) Reporting Requirement
Options for completing the form
Option 1: LEA did not participate in the SHARS Medicaid
Option 2: LEA received SHARS Medicaid reimbursements but did not expend for special education services.
Option 3: The LEA received SHARS Medicaid reimbursements and made subsequent expenditures for special education services. 

27. Recent TEA Correspondence: School Health and Related Services (SHARS) Reporting Requirement
Validation
Maintain the supporting documentation
LEAs may be required to submit the supporting documentation to TEA in a validation process

28. Recent TEA Correspondence: Attendance Projections for the 2017-2018 and 2018-2019
System opened on October 15, 2016.
Review and submit the data by midnight on December 14, 2016.
If submitted, your ADA and FTE estimates will be used in state aid calculations for school years 2017–2018 and 2018–2019.
If not submitted, TEA will use the ADA and FTE estimates established in the Attendance Projections subsystem in state aid calculations for school years 2017–2018 and 2018–2019.
Affects payments

29. Recent TEA Correspondence: Comparability of Service
Comparability of Services Requirement for the 2016– 2017 school year:
November 11, 2016, Deadline – All LEAs
Comparability Computation Form (CCF) Exemption
An LEA is exempt from completing and submitting the CCF if it meets any of the following criteria:
Has only one campus per grade-span group
Has multiple campuses in the grade-span group but no overlap of grade levels

30. Recent TEA Correspondence: Comparability of Service
An LEA is exempt from completing and submitting the CCF if it meets any of the following criteria (Continured):
Has overlap of grade levels but no Title I, Part A campuses in the grade- span group
Uses exclusion criteria to exclude one or more campuses resulting in no basis for comparison
An exempt LEA is only required to complete and submit the CAD.

31. Recent TEA Correspondence: Comparability of Service
Completing the Comparability Computation Form (CCF)
Refer to the Title I, Part A Comparability of Services Guidance Handbook
available on the Title I, Part A Comparability of Services page of the TEA website

32. Recent TEA Correspondence: Comparability of Service
Potential Consequences of Failing to Comply
Temporarily withhold cash payments pending correction of the deficiency or more severe enforcement action.
Disallow all or part of the cost of an activity or action not in compliance.
Wholly or partly suspend or terminate the federal award.
Initiate suspension or debarment proceedings.
Withhold further federal awards for the program.
Take other remedies that may be legally available.

33. Update: Review 2016-2017 Estimates
Projections:
Compare actual tax levy
Compare enrollment and demographics (PEIMS data)
Compare annual attendance to first six weeks
Recalculate state funding
Recalculate recapture

34. Update: New Overtime Rules
Final Rule
Effective December 1, 2016
Identify employees affected by new rule
Plan for implementation
Timekeeping
Overtime budget

35. Small Group Discussion
Planning for the 2017 Legislative Session
Engaging Representatives and Senators
Local Boards and Superintendents
Monitoring activity during the session
Expectations:
What does your LEA want or need?
Local taxpayers
Parents

36. Discussion for Future Meetings
Future Topics
Dates for Future Meetings

37. Questions and Comments