Consolidated Fiscal (OCFO) Requirements:Consolidated Fiscal (OCFO) Requirements:Special Education andSpecial Education and

Federal Programs Components Federal Programs Components

Spring Fiscal WorkshopsSpring Fiscal Workshops

Office of the Chief Financial OfficerConsolidated Planning and Monitoring

Rationale

Better support districts in meeting ambitious goals for overall growth and gap closureStreamline work in all aspects of monitoring and complianceIncreases focus on academic support for districtsAnalyzing and utilizing all of available financial resources

Districts will continue to be supported throughout the transition in planning, monitoring and finance.AJT and CORE staff will be available in the processes of closing out district finances and developing spending plans for 2013-14. 

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Office of the Chief Financial Officer

Bringing together 6 divisions under coordinated leadership

• Local finance• TDOE accounting / fiscal• State • IDEA • ESEA • Perkins • Other – PK, miscellaneous grants

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Maintenance of Effort and Excess Cost

What is maintenance of effort (MOE)?

A federal requirement that is designed to look at the local support for the education of children with disabilities over a specified period of time.

Requires that LEAs spend at least as much of local or state and local funds on the education of children with disabilities as they did in the prior year (either in total or per capita).

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Maintenance of Effort Includes exceptions to the requirements as follows:

Voluntary department of staffDecrease in enrollmentTermination of services to high cost studentTermination of costly expenditures for long-term

purchasesAssumption of cost by the high cost fund operated by

the SEA

Includes adjustments to local fiscal efforts in certain years:

During year in which allocation received by an LEA exceeds that from the previous fiscal year, reductions in MOE may be taken in an amount not more than 50 percent of the excess in allocation

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Maintenance of Effort

What funds are included in the calculation?

Any expenditures from State/local funds for the special education programs and or services to eligible special education students

No federal funds may be included Do not include services to gifted students

May funds be excluded once MOE has been met?

No, the calculation must include all special education expenditures regardless of the total amount spent

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Excess Cost

What is excess cost?  The costs of special education that are above and

beyond the costs of the regular education of students with disabilities

Generally requires that the LEA spend in aggregate at least as much on the non-special education of children with disabilities that they spend on non-disabled children at that educational level, before spending IDEA federal funds on the excess cost of eligible students with disabilities.

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Excess Cost

Delves into the total cost to educate any child in elementary and secondary schools within the district

Looks at all costs: administrative, operational, and instructional of the general education program within the district

Determines that the LEA is spending at least the minimum of these costs on special education students prior to using Federal IDEA funds for the excess costs of providing FAPE

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Excess Cost

LEAs can meet these costs requirements by taking into account the following expenditures:

Elementary/Secondary funds from the State Special Education Expenditure Report

Instructional costs for the time sped students spend in the regular classroom

A prorated amount of administrative and operational costs (based on the number of special education students within the LEA)

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High Cost

What is High Cost?

Expenditures from local/state funds for the high cost of providing services to children with disabilities not including those that are Functionally Delayed and Intellectually Gifted.

Any reimbursement received must be budgeted and expended as Special Education General Purpose Funds in the 71200 and 72220 series for audit purposes

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High Cost

What is needed for High Cost Reimbursement?

Certification signed by the Director of Schools

Completion of the appropriate form(s)

Provide supporting documentation for the amount(s) requested on each form(s)

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High Cost

Priority 1 are for special needs children placed in State Department of Education

Priority 2 are for special needs children placed in a state agency for the first year of service in a school system.

Priority 3 are for special needs children placed and served by the Local Education Agency whose costs are three times or more than the State Average per pupil expenditure of $9,123 for FY 2012 ($27,369)

Priority 4 are for special needs children who are the responsibility of the school system when the additional cost is 250% greater than the total funds to be deducted on a specific student.

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High Cost

What is new this year?

Providing documentation for the General Purpose Special Education expenditures such as invoices for contracted services, calculation and reasoning for transportation expenses, purchase orders for specialized equipment, etc.

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Parentally Placed Proportionate Share

What is it?

The minimum dollar amount that your LEA should be expending for the 2014 fiscal year.

This set aside will be determined by the state and provided to Local Education Agencies to budget appropriately in the consolidated application.

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Parentally Placed Proportionate Share

What is new this year?

ePlan has a section in the application to complete requesting information regarding parentally placed private school services

In ePlan, Local Education Agencies who have Parentally Placed Proportionate Share amounts will state how they are budgeting services and if they have any carryover from the last fiscal year to expenditure in the current year.

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Federal Programs Fiscal Update

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Fiscal Items of Interest

Preliminary EstimatesPreliminary Allocations due from USEd around April 25th

Status PageCheck Fiscal Items-Use Late Reporting Form, if needed

http://www.tn.gov/education/fedprog/fpfiscalinfo.shtml FACTS compliance-Use Grant Status/Grant Transaction

Reports https://www.k-12.state.tn.us/facts 5% of allocation differential allowed between payments and

expenditures by March 31 (or with note) 5 systems on hold for 12/31 report

eReporting quarterly AFR LEAs submitted by April 15th

Comparisons between line item expenditures and approved final budgets

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Release of Funds Form on website and in ePlan Document Library

FY 13 Budget Amendments Latest submission date-April 30th, 2013 Transfer flexibility

Comparability forms http://www.tn.gov/education/fedprog/fpadministration.shtml

Maintenance of Effort Compares local spending from last year to the

previous year-must be at least 90%-results

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Fiscal Items of Interest (continued)

FY12 Funds Remaining

8 systems with I-A funds1 system with I-D funds42 systems with II-A funds13 systems with III funds19 systems with VI-A funds

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Poverty Percentages and Impact

Federally defined Poverty Determines Initial Allocations to States

http://www.census.gov/hhes/www/poverty/poverty.html

Poverty ONLY %68 sys: -.06 to-8.46%

(31 went down less than 1%)68 sys: +.01 to 8.42%

(17 sys went up less than 1%)

Children in poverty: FY12-253.241 to FY13-260,224=increase of

6,983

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Hold Harmless Impact

Hold Harmless brackets• 85%=less than 15% poverty 6 systems• 90%=15% to 29.9% poverty 84 systems• 95%=30% or more poverty 45 systems

Hold Harmless % bracketsLevel: 115Up: 12 All went from 90% to 95%Down: 9 8 from 95% to 90%; 1 from 90% to 85%

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Poverty and Population

School age children: Poverty % is 23.94% this year from 23.29% last year TN Percent of National Poverty TN % dropped from 2.33% to 2.29% TN 5-17 population• FY12: 1,087,338 (FY10 Census)• FY13: 1,087,119 (FY11 Census

update)• Drop of 119 students

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What Do I Do Next?

Closely monitor FY12 funds-help your program folks close them out if possible

Monitor FY13 funds• Amend quickly if program needs require• Assure all line items needed this summer

are on FY14 ePlan budget • Help program personnel to budget these

and FY14 funds on correct line items in ePlan

• Release any funds LEA cannot/will not spend prior to September 30 if above allowed CAP

• Submit FACTS and eReporting quarterly reports for April and July deadlines!

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What Do I Do Next?

FY14 Funds• ePlan collaboration for correct budgeting

“new” funds• Assist, if requested, with submission of

budget on ePlan• CFO approval of budget on ePlan when

allowable-be aware of timelines and deadlines

• Efficient reimbursement requests when funds have been spent

• Maintain a positive outlook!

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Consolidated Fiscal Team (OCFO) Presenters

Kathi Rowe-IDEA, Part B• 615-253-1987 kathi.rowe@tn.gov

Brett Printz-IDEA, Preschool• 615-253-5698 brett.printz@tn.gov

Brenda Staggs-ESEA Grants• 615-532-2490 brenda.staggs@tn.gov

George Amin-ESEA Grants• 615-253-5711 george.amin@tn.gov

Rosa Jennings-ESEA Grants• 615-253-2187 rosa.jennings@tn.gov

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