Special Education Fiscal Overview Session 1

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Special Education Fiscal OverviewSession 1

• Kathy Guralski, School Finance Auditor
• Lori Ames, School Finance Consultant
• 11/07/06

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Agenda

• Sources of Special Education Funding
• Overview of Expense Coding
• Reporting of Fund 27 Expenses
• State Special Education Categorical Aid
• Potential Aid Eligibility Adjustments

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Special Education Funding Sources

• State Special Education Categorical Aid
• High Cost Categorical Aid
• Federal Special Education Aid
• Medicaid
• State Equalization Aid
• Local Property Tax

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Special Education Categorical Aid

• Aidable costs may include, but are not limited
  to
• Salary/Fringe Benefits for
• Most Special Education Teachers and Assistants
• Speech/Physical/Occupational Therapists
• School Psychologists, Social Workers, Guidance
  Counselors, and Nurses
• Special Education Administrative Staff
• Special Transportation
• http//www.dpi.wi.gov/sfs/se_aid.html

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High Cost Categorical Aid

• School districts are eligible for aid if the
  district incurred, in the previous school year,
  more than 30,000 of non-administrative costs for
  providing special education and related services
  to a child, and those costs are not eligible for
  reimbursement under the state special education
  categorical aid program, the federal Individuals
  with Disabilities Education Act, or the federal
  Medicaid program
• http//www.dpi.wi.gov/sfs/highcost.html

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Federal Special Education Aid/Grants

• The Individuals with Disabilities Education Act
  (IDEA) originally authorized funding of 40 of
  average per-pupil expenditures to support special
  education services for children with
  disabilities. Most of the funding is distributed
  to local school districts in the form of
  flow-through aids or other discretionary grants.
• http//www.dpi.wi.gov/sped/fedgrant.html

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Medicaid

• A fairly small source of revenue for school
  districts is insurance reimbursement provided
  through the combined federal/state Medicaid
  program.
• http//dpi.wi.gov/sfs/doc/medicaid.doc

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State Equalization Aid

• Equalization is a state cost sharing formula
  which reduces local district reliance on local
  property taxes.
• The state shares in most costs incurred by
  Wisconsin school districts that are not
  reimbursed by other revenue sources. Eligible
  costs include special education and related
  services.
• http//www.dpi.wi.gov/sfs/equalaid.html

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Local Property Tax

• Special Education and related services not
  reimbursed through one of the programs mentioned
  above are funded by local property taxes.
• The extent to which local property taxes are used
  to fund special education costs in a particular
  district varies greatly and depends largely on
  the amount of state equalization aids received by
  the district.

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Special Education Expense Coding

• All special education expenses, regardless of
  funding source must be accounted for in fund 27
• The function number and the project number are
  the most critical elements of the total account
  code

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Special Education Expense Coding

• Function Number
• Identifies the special education program
• 152000 Early Childhood
• 158000 Cross Categorical
• 156600 Speech Language
• 159200 Substitutes

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Special Education Expense Coding

• The Business Office and the Special Education
  Department will need to work closely together to
  ensure that staff members are being charged to
  the appropriate program or function.
• Appropriate staff licensure is important when
  assigning staff to various functions

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Special Education Expense Coding

• Project number
• Identifies the aid eligibility status and funding
  source
• 011 317
• 019 340
• 091 515
• 092 517
• 315 599

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Project Number 011

• Use this project on all original object 100 900
  expenditures paid to a vendor when
• the LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• the expenditure is directly state special
  education categorically aidable

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Project Number - 019

• Use this project on all original object 100-900
  expenditures paid to a vendor when
• the LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• the expenditure is NOT directly state special
  education categorically aidable

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Project Number - 091

• Use this project on all original object 100-900
  expenditures paid to a vendor when
• The district is using only local dollars to fund
  the expenditure (no grant money reimbursement)
• The expenditure is directly reimbursed by a check
  from CESA (using CESA local dollars no grant
  money)

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Project Number - 092

• Use this project on all original object 100-900
  expenditures paid to a vendor when
• The district is using only local dollars to fund
  the expenditure (no grant money reimbursement)
• The expenditure is directly reimbursed by a check
  from a CCDEB (using CCDEB local dollars no
  grant money)

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Project Number 315/317

• Use these projects, 315 (State) or 317 (Federal)
  on all original object 100-900 expenditures paid
  to a vendor when
• The expenditure is then charged to a
  state/federal grant of another LEA
• The LEA name on the state/federal grant is
  another school district (NOT this LEA)

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Project Number - 340

• Use this appropriate IDEA grant project code of
  341-349 on all original object 100-900
  expenditures paid to a vendor when
• this expenditure is charged directly to an IDEA
  (flow-through, entitlement, etc..) grant
• the LEA name on the grant is the same as this LEA

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Project Number 515/517

• Use these projects, 515 (State) or 517 (Federal)
  on all original object 100-900 expenditures paid
  to a vendor when
• The expenditure is then charged to a
  state/federal grant
• The LEA name on the state/federal grant is a
  CESA or a CCDEB, NOT this LEA

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Project Number - 599

• Use this project code on all original object
  100-900 expenditures paid to a vendor when
• this expenditure is charged directly to a grant
  such as AODA, Drug Free, etc.
• the LEA name on the grant is the same as this LEA

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Resources for Expense Coding

• WUFAR (full document expense matrix)
• http//www.dpi.wi.gov/sfs/wufar.html
• Special Education Transaction Coding
• http//www.dpi.wi.gov/sfs/doc/sped.doc

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Special Education Fiscal Reporting

• Districts are required to submit both a special
  education budget and annual report that is
  currently separate from the full SAFR budget and
  annual report
• The special education budget/annual program is
  located on either a staff members individual
  hard drive or on a network drive within the
  district.

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Special Education Fiscal Reporting

• The current special education budget/annual
  software program is outdated and can no longer be
  updated.
• As a result, you will find that updates to the
  WUFAR and changes to special education law can
  not be reflected in the current report.
  Alternative reporting is sometimes used.
• The School Financial Services Team is currently
  in the design phase of creating a new special
  education fiscal report.

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Special Education Categorical Aid

• Entities eligible to receive state special
  education categorical aid
• School Districts
• CESAs
• CCDEBs
• 2R Charter Schools

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Special Education Categorical Aid

• Based on the information reported in the special
  education annual report, the districts special
  education categorical aid is calculated
• the aid is paid based on prior year aidable
  expenditures (aid paid in 2006-07 is based on
  expenditures from 2005-06)

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Special Education Categorical Aid

• Not all expenses accounted for in fund 27 are
  aidable, but the special ed annual report should
  tie to the total expenses reported in SAFR fund
  27.
• Aid is paid to the entity that is incurring the
• original/direct expense meaning the entity
  that is employing and paying the individual

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Special Education Categorical Aid

• Although many different function numbers may be
  used in fund 27, only the following functions may
  contain aidable expenses
• (152000,156100,156200,156600,156700,156800,158000
  ,159100, 159200, 159300, 174100, 174200, 212000,
  213000, 214000, 215000, 218100, 218200, 223300,
  256000, 270000, 436000)
• Eligible expenses are identified in the document
  titled Special Education Claim Directions
• http//www.dpi.wi.gov/sfs/xls/se_claim_directions
  .xls

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Special Education Categorical Aid

• For a staff members salary and fringe benefits
  to be eligible for aid, he/she must hold the
  appropriate license for the function they are
  being expensed in.
• 152000 license code subject 808 or 809
• 212000 license code position 50
• Valid Reporting and License Codes for Special
  Education Staff
• http//www.dpi.wi.gov/sfs/pdf/valid_code_se.pdf

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Special Education Categorical Aid

• Due to the high amount of eligible expenses, the
  amount of aid paid is prorated to approximately
  28.
• Aid is paid in multiple payments (Nov 15, Dec
  15, Jan 15, Feb 15, March 15, and June 25)

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Special Education Categorical aid on HOLD?
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Special Education Categorical aid on HOLD?

• What may cause categorical aid to be withheld on
  an individuals salaries and benefits
• No Valid License
• Inappropriate allocation of salaries/benefits to
  fund 27 for social workers, psychologists,
  nursing, and guidance

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No Valid License

• PI 1202
• Filed by district with DPI in fall
• List by staff, FTE, and teaching position
• No updates during the year

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No Valid License

• No Valid License listing on June 30th
• Identifies staff not properly licensed for the
  teaching assignment listed on the PI 1202
• Auditor required to report to DPI salaries,
  benefits, and account structure (even in funds
  other than 27) for all individuals on no valid
  license listing.

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No Valid License

• No Valid License listing on June 30th
• Available in reporting portal

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No Valid License

• No Valid License listing on June 30th
• When teaching position of an individual was
  incorrectly reported on PI-1202
• Obtain, for auditor, a written representation
  from the Special Education Director or other
  appropriate person stating that the reported
  assignment (PI-1202) was incorrect. Include
  previously reported teaching assignment and
  correct teaching assignment for individual.

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No Valid License

• No Valid License listing on June 30th
• DPI special education licensing follows up on the
  licensing status
• May result in phone call to district
• Aid is withheld until DPI special education
  licensing approves the individual

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Additional questioned cost

• Valid License listing on June 30th
• Available in Reporting Portal
• Auditor performs a payroll test and determines if
  salary and related benefits are properly reported
  for staff on the list

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Additional questioned cost

• Any individual not reported in proper account
  coding for their teaching assignment (per PI-1202
  and valid license list) is
• Reviewed by Auditor for correct teaching
  assignment (through inquiry)
• If teaching assignment is in agreement with
  license salaries and benefits are moved to
  appropriate WUFAR accounts (no filing with DPI)
• If teaching assignment is not in agreement with
  license salaries and benefits are reported to
  DPI as questioned cost

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Additional questioned cost

• DPI special education licensing follows up on the
  licensing status
• May result in phone call to District
• Aid is withheld until DPI special education
  licensing approves the individuals

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Allocation of salaries and benefits to fund 27

• Salaries and benefits of professionals working in
  both the regular education and special education
  areas must be allocated between fund 10 and fund
  27 based on time and costs
• School Social Worker
• School Psychologist
• School Nurses (Registered Nurses, licensed by WI
  Department of Regulation and Licensing)
• School Counselors

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Allocation of salaries and benefits to fund 27

• January 12, 2006 Letter
• http//www.dpi.wi.gov/sfs/ltrjan12_06.html
• Types of activities that would be eligible for
  special education aid
• Methodologies in determining time and cost
• Must be done for each individual staff member
  claimed
• Documentation must be maintained
• Must be rational and defensible method of
  allocation

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Reporting allocation of salaries and benefits to
fund 27

• Special Education
• General Ledger Claim Form

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Reporting allocation of salaries and benefits to
fund 27

• Identify these costs in the cover e-mail with the
  upload file attachments as follows
• For (LEA Name), the 011-state aidable guidance
  counselor and school nurse salary/fringe costs
  reported in function 299 999 under project 019
  on the PI 1505SE are
• School Guidance Counselor
• Object 100 Salary (Amount)
• Object 200 Fringes (Amount)
• School Nurse
• Object 100 Salary (Amount)
• Object 200 Fringes (Amount)

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Audit of allocation of salaries and benefits to
fund 27

• Included in Auditor payroll test will be
  individuals from the categories of psychologist,
  social worker, guidance counselor, and nurse
• Supply auditor with instructions to staff on how
  to determine what time is aidable
• Provide auditor with documentation of methodology
  used

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Inappropriate allocation of salaries/benefits to
fund 27

• Auditor reports to DPI as questioned cost the
  salaries and benefits of individual in question
• DPI special education licensing follows up on the
  licensing status
• May result in phone call to District
• Aid is withheld until DPI special education
  licensing approves the individual

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Resources

• License Listing Go to School Finance Reporting
  Portal, District, Financial Data Home
• Special Education Pupil Transportation
• http//www.dpi.wi.gov/sfs/se_report.html
• Special Education Media-Site Session 2
  November 17 _at_ 1000am
• http//media2.wi.gov/dpi/viewer/?cid2352cf23-e13
  0-4a9c-b83f-8f8e90b15f41

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Contacts

• Beverly Kraus 608-266-1089
• beverly.krause_at_dpi.state.wi.us
• Lori Ames 608-266-3464
• lori.ames_at_dpi.state.wi.us
• Kathy Guralski 608-266-3862
• katherine.guralski_at_dpi.state.wi.us

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