1. Business Manager and CFO Roundtable Discussion
July 18, 2018
Hank Johnson
Consultant

2. Agenda Introductions Upcoming Events
Updates on Recent TEA Correspondence
Current News and Updates/Reminders
Discussion
Questions and Comments

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5. Upcoming Events October 16, 2018 - Public Funds Investment Training
The ESC Region 11 Business Center is hosting a Public Funds Investment Training presented by guest speaker Patrick Shinkle, Associate Director for the Center for Public Management at the University of North Texas. CPAs will receive 5 hours of CPE credit.

6. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
Preliminary Summary of Finances (SOF)
Funding elements for 2018–2019 remain the same as 2017– 2018 with the following exceptions:
Increase to the guaranteed yield for Tier II Level 1 (from $99.41 to $106.28),
Increase to the existing debt allotment (EDA) guaranteed yield from $35 to $37,
Increase to the small-sized district adjustment factor for districts with less than 300 square miles from to , and
Set a preliminary per capita rate of $

7. Funding Elements – 2018 & 2019 Funding Element 2017-18 2018-19
Basic Allotment
$5,140
EWL Tier 1
$514,000
EWL Tier 2 Level 2
$319,500
Tier 2 -Guaranteed Yield Level 1
$99.41
$106.28
Tier 2 - Guaranteed Yield Level 2
$31.95
Regular Program Adjustment Factor (RPAF)
1.0

8. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
2017 State-Certified Property Value: 
The state-certified property value used in the DPE column
Preliminary 2017 property value assigned by the Texas Comptroller’s Property Tax Assistance Division (PTAD).
For the LPE column:
The greater of the 2017 comptroller value or the 2016 value increased by 7.04%.

9. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
2018 Tax Year Estimated M&O Tax Collections: 
The maintenance and operations (M&O) tax collection amounts that appear in both the LPE and DPE columns:
The greater of either:
The LPE M&O tax collections, or
The 2017–2018 DPE M&O tax collections increased by 6.77%.

10. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
Adjustment to Compressed Tax Rate for Certain School Districts:
For school districts that had 2005 maintenance and operations (M&O) tax rates below the maximum allowed M&O tax rate of $1.50 per $100 of valuation, the school year adjustments to the CTR are automatically being applied (if applicable) in your district’s SOF. No further action is necessary for districts to receive an adjustment to the CTR.

11. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
Financial Hardship Grants: 
$50 million was appropriated for this purpose in school year 2018– 2019
TEA will determine eligibility and calculate the Hardship Grant amounts in the fall of 2018
Districts do not need to apply to TEA to receive a grant
The Agency does not currently have a list of districts eligible for the grants
TEA currently anticipates being able to award grants by no later than October 2018.

12. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
New Instructional Facilities Allotment (NIFA): 
House Bill 1081, 85th Texas Legislature, increased the amount the NIFA program can provide up to $1,000 per student in average daily attendance (ADA) in an eligible new campus in the first year of operation and up to $1,000 per each additional ADA in the second year of operation to help with any start-up costs associated with opening a new campus.
Districts are required to submit applications to the FSP subsystem of the Texas Education Agency Login (TEAL) before September 17,

13. Recent TEA Correspondence: 2018–2019 Preliminary Summary of Finances
Charter School Facility Funding:
Do not need to apply
Included in SOF
A revised calculation of the amount will occur in September immediately following the school year
Will be based on actual attendance data, and
The actual state average district I&S tax rate for the 2018 tax year
Any differences in funding between the estimated and near final amounts will be incorporated as part of the regular FSP settle-up process.

14. Recent TEA Correspondence: Charter School Facility Funding: House Bill 21
Charter schools do not need to apply to the TEA to receive the funding.
Eligibility - the most recent overall performance rating assigned must reflect at least acceptable performance.
Use of Funds:
to lease an instructional facility;
to pay property taxes imposed on an instructional facility;
to pay debt service on bonds issued to finance an instructional facility; or
for any other purpose related to the purchase, lease, sale, acquisition, or maintenance of an instructional facility

15. Recent TEA Correspondence: Charter School Facility Funding: House Bill 21
Estimate of amount for planning is approximately $200 per student in ADA. (This is an estimated amount for budget planning purposes only and is subject to change.)
Payments will be sent out on the foundation payment ledger, appearing on the summaries of finance (SOF) as a line item on the Other Programs Detail Report with its own detail report.
Once this rule is in effect, the SOF report will be updated to incorporate preliminary estimates of the funding allotment.
A revised calculation of the amount will occur in September 2019 immediately following the school year and will be based on actual attendance data.
Any differences in funding between the estimated and near final amounts will be incorporated as part of the regular Foundation School Program settle-up process.

16. Recent TEA Correspondence: New Expenditure Code (Object 6491) for all statutorily required public notices
TEA added a new expenditure code: Object 6491
Senate Bill (SB) 622 requirement
School districts must reflect in their proposed budget a line item specifically for expenditures to publish all statutorily required public notices in the newspaper by the school district or their representatives.

17. Recent TEA Correspondence: Public Comments on Proposed Rulemaking
TEA requested school districts and open-enrollment charter school publish on its website:
Links to TEA's web pages that house proposed rules of the commissioner of education
State Board of Education (SBOE), and
State Board for Educator Certification (SBEC).
The intent of publishing these links is to encourage public participation in the process of making rule changes.
Comment periods are now closed for most proposed rules.

18. Recent TEA Correspondence: Risk assessment level for school year 2018–2019
TEA is required to evaluate each sub-recipient’s (ISD and Open Enrollment Charters) risk of noncompliance with federal statutes, regulations, and the terms and conditions of the sub-award
To determine the appropriate sub-recipient monitoring
Access your risk level through TEASE or TEAL

19. Recent TEA Correspondence: General Application of Assurances (GAA), Updated for ESSA
All applicants for federal grants administered by TEA:
Are required to submit new General Application of Assurances (GAA), updated to reflect statutory changes under the Every Student Succeeds Act (ESSA)
Must be completed and submitted Before TEA can issue a Notice of Grant Award (NOGA).
Failure to respond may result in a referral to the agency’s risk assessment for federal monitoring, which increases your likelihood of being selected for in-depth grant monitoring.
TEA has updated the GAA to reflect the following requirements:
Any applicant, other than a state educational agency that submits a plan or application under this chapter, shall have on file with the state educational agency a single set of assurances, applicable to each program for which a plan or application is submitted.
Access your risk level through TEAL

20. Recent TEA Correspondence: Request for Competitive Letters of Interest for New GEAR UP Texas Cohort
Grant opportunity for LEAs to participate in Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP).
To be awarded for implementation in the fall of the school year.
Selected grantees will be awarded up to $350,000 the first year;
Successful grantees will be awarded up to seven annual grants starting Fall 2018 and ending Fall 2024.
Letter of Intent to File is due July 20.

21. Recent TEA Correspondence: Competitive grant opportunity from US Department of Justice: STOP School Violence
The STOP School Violence Prevention and Mental Health Training Program grant
Available through the US Department of Justice’s Bureau of Justice Assistance (BJA).
The grant’s purpose is to support efforts to reduce and prevent school violence.
Application is due July 23.
Requires local match funding.

22. Recent TEA Correspondence: Indirect Cost Rates Available for School Year 2018–2019
Approved indirect cost rates
open-enrollment charter schools, and
independent school districts.
Effective July 1, 2018, through June 30, 2019.
GFFC Reports and Data Collections secure TEAL application includes a 2018–2019 Indirect Cost Rate Notification Letter for each independent school district and open-enrollment charter school.

23. Recent TEA Correspondence:  Local Share of Foundation School Program Cost
Adoption of an ad valorem property tax rate
Locally elected school district board members
Required under Texas Education Code (TEC) §42.252(d),
A school district must raise its total local share of the Foundation School Program to be eligible to receive foundation school fund payments.

24. Recent TEA Correspondence:  Local Share of Foundation School Program Cost
A district to be eligible to receive foundation school fund payments for the 2018–2019 school year
The adopted M&O tax rate should be equal to or greater than the level described under TEC §42.252(a).
The TEA will not flow foundation school fund payments to school districts whose adopted M&O tax rates are below the required level.
Distribution of available school fund payments, however, would continue without interruption.
Additionally, any recapture payments owed by school districts as required under Chapter 41 of the TEC should also continue without interruption.

25. Recent TEA Correspondence: 2018 Tax Information Survey
Submit tax collection data
Open for data submission
Closes at midnight on August 31, 2018
Not applicable to charter schools
Important
More accurate calculation of 2017–2018 near-final Summary of Finances (SOF) estimates – September 2018
Otherwise: Tax collection data implemented from J1 schedule as part of its annual financial and compliance report -2017–2018 SOF until April 2019

26. Recent TEA Correspondence: New Campus Charter Schools Established by ISD – Start-Up Grant Funding
School districts planning to open a charter campus as early as the 2017 school year,
May be eligible for up to $800, in federal funding to assist with initial start-up costs
Eligible to apply for funding under the CSP Start-Up Grant a district must:
Amend local district policies for authorizing campus or campus program charters:
 to ensure that they meet Absolute Priorities 1 and 2 of the 2015 CSP Grant,
as well as the requirements of Texas Education Code (TEC) Chapter 12, Subchapter C; and
Submit amended policies to the TEA for review by August 31, 2018.

27. Recent TEA Correspondence: Texas’ Ed-Flex Authority Extended for 2018-2019
Texas approved to continue its Ed-Flex waiver authority
Texas has the authority to waive provisions of the following federal programs:
Title I, Part A (other than section 1111)
Title I, Part C
Title I, Part D
Title II, Part A
Title IV, Part A
Carl D. Perkins Career and Technical Education Act of 2006

28. Recent TEA Correspondence: Texas’ Ed-Flex Authority Extended for 2018-2019
Types of Waivers Available to LEAs
Statewide Administrative Waivers (Automatically granted):
Submission of an Amendment to Transfer Funds for Training Costs
Certification that an Employee is Funded from a Single Fund Source or Cost Objective
Statewide Programmatic Waivers (Requires Application)
Eligibility to Implement Title I, Part A, School-wide Programs
Waiver of Title I, Part A, 15% Roll Forward Limitation
Individual Programmatic Waivers (Requires Application)
Deadline for submitting an application for an individual programmatic waiver for is August 13, 2018

29. Recent TEA Correspondence: 2018-2019 Teacher Shortage Areas and Loan Forgiveness Programs
The approved shortage areas for the school year are: 
Bilingual/English as a Second Language – Elementary and Secondary Levels
Career and Technical Education including Computer Science/Technology Applications
Mathematics                           
Special Education – Elementary and Secondary Levels

30. Recent TEA Correspondence: Minutes of Operation—Updates for Half-Day Prekindergarten Programs
Update to Student Attendance Accounting Handbook (SAAH) for
Now includes breakfast and lunch as part of instructional time for half-day prekindergarten programs 
A change to the SAAH will be adopted:
To include breakfast and lunch as part of instructional time for half-day prekindergarten programs  

31. Update: Summary of Finances
Near-Final – September 2018
Student attendance
Tax collections – if survey is completed by August 31
Final
April 2019
Tax Collections reported in annual financial report

32. Update: SOF Template New Template July 9, 2018
Changes some of the May 1 updates
Decreases NIFA to $215
Decreases EDA to $37
Incorporates TEA’s position on “Local Share of Foundation School Program Costs”

33. Update: Review 2017-2018 Estimates
Projections:
Compare actual tax collections to estimates
Compare annual attendance
Recalculate state funding
Recalculate recapture

34. Update: 2017 Preliminary Property Values
Property values - Possibly overstated or understated
Work with appraisal district to verify accuracy
Overstated – consider property value audit
Understated – consider leave “as is”

35. Update: 2018-2019 Budget Projections: 2018-2019 Students
Enrollment – Compare to final
Attendance – Compare to final
Weighted Average Daily Attendance

36. Update: 2018-2019 Budget Projections: 2018-2019 Revenue
Property values - Certified Roll due July 25
Tax revenue calculations - Revisit
State funding - Recalculate
Recapture

37. Discussion
Topics from today
Topics for Future Meetings

38. Questions and Comments