1. Special Education – Fiscal Overview Session 2 Kathy Guralski, School Finance Auditor Lori Ames, School Finance Consultant 11/28/06

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3. Agenda Project Code Accounting Review Accounting Examples  District-Operated Programs  Tuition Payments  66.03 Contracts  Package Programs Deductible Receipts Questions & Answers

4. 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.

5. 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

6. 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

7. 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

8. Account/Project Coding You have a special education cost:  Directly incur costs  Provide service to another district  Purchase service from another school district  66.0301 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?

9. 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.

10. 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)

11. 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

12. Directly incur costs  Example Hire CD teacher  What is the source to fund the cost?  Categorical aid 27E 158000 100/200 011  IDEA Grant 27E 158000 100/200 340  Local 27E 158000 100/200 019  Who are you receiving the funding from?  DPI – Categorical SPED aid 27R 611  DPI – Flow Through 27R 730  Transfer from General Fund 27R 411000 110

13. Directly incur costs  Example Incur supplies  What is the source to fund the cost?  IDEA Grant 27E 158000 410 340  Local 27E 158000 410 019  Who are you receiving the funding from?  DPI – IDEA source 730  Transfer from General Fund 27R 411000 110

14. Directly incur costs  Example Contract for OT services  What is the source to fund the cost?  Categorical aid 27E 218100 310 011  IDEA Grant 27E 218100 310 340  Local 27E 218100 310 019  Who are you receiving the funding from?  DPI – Categorical SPED aid 27R 611  DPI – Flow Through 27R 730  Transfer from General Fund 27R 411000 110

15. Directly incur costs  Example Contract for Special Transportation Services  What is the source to fund the cost?  Categorical aid 27E 256000 341 011  IDEA Grant 27E 256000 341 340  Local 27E 256000 341 019  Who are you receiving the funding from?  DPI – Flow Through 27R 730  DPI – Categorical SPED aid 27R 611  Transfer from General Fund 27R 411000 110

16. 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.

17. 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 411000 110

18. 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

19. 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 491000 936 019)

20. 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 491000 936 019)

21. Expenditure Coding Expenditure Payment for Transit of State Special Ed Categorical Aid:  To another LEA27E 491000 936 019

22. 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.

23. 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 411000 110

24. Purchase service from another school district  Example District A provides special education services District B – resident student open enrolls or attends District A

25. Purchase service from another school district  Example 1  District B pays flat tuition rate to District A  Local funds - 27E 437000 382 019  IDEA - 27E 437000 382 340  Example 2  District B pays flat tuition rate plus additional cost to District A (No IDEA funds)  27E 437000 382 019  Special education aid transited to District B for amount of additional eligible cost (Source 316)

26. 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 437000 382 019  27E 437000 382 340 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)

27. PURCHASED SERVICE When someone else is providing the instructional services costs should be recorded in 430 000. Typical Functions:  431 000 General Tuition 433 000 Co-Curricular 435 000 General Tuition Open Enrollment 436 000 Special Education - Non Open Enrollment 437 000 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

28. PURCHASED SERVICE When someone else is providing the instructional services costs should be recorded in 430 000. Examples:  Special Ed Payment to CESA 27E 436 000 386  Special Ed Payment to Another District (not O.E.) 27E 436 000 382  Non-Special Ed Payment to CESA 10E 431 000 386  Special Ed Payment to WTCS 27E 436 000 389  Special Ed - Open Enrollment 27E 437 000 382  Non-Special Ed Open Enrollment 10E 435 000 382  Non-Special Ed Payment to Private School 10E 431 000 370 (371, 372, etc.)

29. 66.0301 cooperative agreement Your district enters into a 66.0301 agreement to provide special education services to all districts within the cooperative agreement.

30. 66.0301 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

31. 66.0301 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

32. 66.0301 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

33. Cost of program incurred CD Teacher  Fiscal Agent  Categorical Aid  27E 158000 100/200 011  Flow Through  27E 158000 100/200 340  Participating District  Cannot hire staff Supplies  Fiscal Agent  Not Eligible Categorical Aid  27E 158000 410 019  Flow Through  27E 158000 410 340  Participating District  Not Eligible Categorical Aid  27E 158000 410 019  Flow Through  27E 158000 410 317

34. Fiscal agent reimburses participating organization for any cost they incurred Supplies  Fiscal Agent  Not Eligible Categorical Aid  27E 436000/200000 382 019  Flow Through  27E 436000/200000 382 340 Supplies  Participating District  Not Eligible Categorical Aid  27R346  Flow Through  27R317

35. 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 436000,200000 382 019 Fiscal agent files aid claims Fiscal agent receives federal grant in current year  Fiscal Agent  Flow Through  27R 730  Participating District

36. 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 491000 936 019  Participating District  27R 316

37. 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.

38. 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

39. 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

40. Cost of program incurred CD Teacher  CESA hires  Categorical Aid  27E 158000 100/200 011  Flow Through  27E 158000 100/200 340  Host District hires  Not Eligible Categorical Aid  27E 158000 100/200 091  Flow Through  27E 158000 100/200 517 Supplies  CESA incurs  Not Eligible Categorical Aid  27E 158000 410 019  Flow Through  27E 158000 410 340  Host District incurs  Not Eligible Categorical Aid  27E 158000 410 091  Flow Through  27E 158000 410 517

41. CESA reimburses participating district for any cost they incurred CD Teacher  CESA  Categorical Aid  27E 436000/200000 382 019  Identify 011 in package program  Flow Through  27E 436000/200000 382 340  Host District  Categorical Aid  27R 546  Flow Through  27R 517 Supplies  CESA  Categorical Aid  27E 436000/200000 382 019  Flow Through  27E 436000/200000 382 340  Host District  Categorical Aid  27R 546  Flow Through  27R 517

42. CESA agent bills all participating districts for their portion of the program  CESA  Categorical Aid  27R 240  Participating District  Categorical Aid  27E 436000,200000 386 019 CESA files aid claims CESA receives federal grant in current year  Fiscal Agent  Flow Through  27R 730  Participating District

43. 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 491000 936 019  Participating District  27R 516

44. 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

45. 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 66.0301  From a CCDEB  From a CESA  27R 611  27R 316  27R 516

46. 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 66.0301  From a CCDEB  From a CESA  27R 730  27R 317  27R 517

47. Who are you receiving the funding from? Revenue Receipt for Tuition/66.0301 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

48. 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

49. 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)

50. 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

51. 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.

52. 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.

53. 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.

54. 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

55. 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

56. 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.

57. Resources Special Education Media-Site – Session 3 – Date to be Determined http://media2.wi.gov/dpi/viewer/?cid=2352cf23- e130-4a9c-b83f-8f8e90b15f41 Open Enrollment http://www.dpi.wi.gov/sfs/doc/open_enrollment_ wufar.doc Selected WUFAR Coding for Fund 27 http://www.dpi.wi.gov/sfs/xls/spr_wufar_code.xls Function 430000 http://www.dpi.wi.gov/sfs/doc/funct_430.doc

58. Resources Coop Agreement – 66.0301 http://www.dpi.wi.gov/sfs/coop_agree.html Fiscal Agent Requirements http://www.dpi.wi.gov/sfs/doc/fisagnt.doc Fiscal Agent Agreement Account Coding http://www.dpi.wi.gov/sfs/xls/fisagagree.xls Fiscal Agent-Example of Level 3 Documentation http://www.dpi.wi.gov/sfs/doc/fisagnt_example.doc

59. Contacts Beverly Kraus 608-266-1089 beverly.krause@dpi.state.wi.us Lori Ames 608-266-3464 lori.ames@dpi.state.wi.us Kathy Guralski 608-266-3862 katherine.guralski@dpi.state.wi.us

60. Questions? Click on the “ask” button above the speaker box, type in your question, and press “send” If you are asking a question after the live presentation, please insert your email address so a response can be sent directly to you.

61. PRODUCED BY: Daryl Miller