Consolidated Fiscal (OCFO) Requirements: Special Education and Federal Programs Components

1. Consolidated Fiscal (OCFO) Requirements:Special Education andFederal Programs Components Spring Fiscal Workshops

2. Office of the Chief Financial OfficerConsolidated Planning and Monitoring Rationale • Better support districts in meeting ambitious goals for overall growth and gap closure • Streamline work in all aspects of monitoring and compliance • Increases focus on academic support for districts • Analyzing 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.

3. 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

4. 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).

5. Maintenance of Effort • Includes exceptions to the requirements as follows: Voluntary department of staff Decrease in enrollment Termination of services to high cost student Termination of costly expenditures for long-term purchases Assumption 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

6. 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

7. 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.

8. 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

9. 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)

10. 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

11. 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)

12. 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.

13. 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.

14. 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.

15. 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.

16. Federal Programs Fiscal Update

17. Fiscal Items of Interest • Preliminary Estimates • Preliminary Allocations due from USEd around April 25th • Status Page • Check 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

18. Fiscal Items of Interest (continued) • 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

19. FY12 Funds Remaining • 8 systems with I-A funds • 1 system with I-D funds • 42 systems with II-A funds • 13 systems with III funds • 19 systems with VI-A funds

20. 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

21. 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 % brackets Level: 115 Up: 12 All went from 90% to 95% Down: 9 8 from 95% to 90%; 1 from 90% to 85%

22. 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

23. 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!

24. 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!

25. 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