ESSA, FESR, and Transparency in Financial Reporting

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1 ESSA, FESR, and Transparency in Financial Reporting August 30, 2017 Amy Rowell GaDOE Financial Review GaDOE Data Collection Conference 8/25/2017 1

2 AGENDA Every Student Succeeds Act Financial Efficiency Star Rating HB 139 Transparency in School District Finance Transparency Nationwide Limitations to Data 8/25/2017 2

3 Every Student Succeeds Act (ESSA) 3

4 ESSA School Level Reporting The per pupil expenditures of Federal, State, and local funds, including actual personnel expenditures and actual nonpersonnel expenditures of Federal, State, and local funds, disaggregated by source of funds, for each local educational agency and each school in the State for the preceding fiscal year. 8/25/2017 4

5 ESSA School Level Reporting Do school districts have the data required? YES! State Board Rule requires school districts to record the financial expenditures by Fund, Function, Program, Object, Facility/School codes. O.C.G.A also requires reporting to GaDOE, even if a charter system, charter school, or strategic waiver system. 8/25/2017 5

6 ESSA School Level Reporting Expenditure Account Code String (And this isn t even the Complete Account Code!) 8/25/2017 6

7 ESSA School Level Reporting What will the reporting look like? It is up to each state to determine how the ESSA report card per pupil expenditures will be reported. 8/25/2017 7

8 ESSA Minimum Expenditures 8/25/2017 8

9 ESSA School Level Reporting School Level Expenditures 1000, 2100, 2210, 2213, 2220, 2400 Includes Personnel and Non Personnel Expenditures What are centralized Expenditures? Determined by each State. 2230, 2300, 2500, 2700 What costs fall in both categories? Depending on activity? 2100, 2210, 2213, 2600, 2800, /25/2017 9

10 ESSA Minimum Expenditures 8/25/

11 Financial Efficiency Star Rating 11

12 Star Rating O.C.G.A requires that the Governor s Office of Student Achievement (GOSA), in coordination with GaDOE, create a financial efficiency rating. The law requires that GOSA and the GaDOE collaborate to adopt and annually review, and revise as necessary, indicators of the quality of learning by students, financial efficiency, and school climate for individual schools and for school systems. The rating must be based upon five stars. 8/25/

13 Star Rating 8/25/

14 Financial Efficiency Star Rating School Per Pupil Expenditures = School expenditures + (District expenditures*proportional enrollment percentage) Fall FTE Enrollment 8/25/

15 Financial Efficiency Star Rating Expenditures Per Pupil calculated as a 3 year average FY 2016 Star Rating = 3 year average of Per Pupil Expenditures 3 year average of CCRPI Score FY 2014, FY 2015, FY /25/

16 Financial Efficiency Star Rating 8/25/

17 HB 139 Financial Transparency 17

18 HB Transparency Intent: to provide transparency and accuracy of financial information at the local school system and school levels to the greatest extent practicable. Similar to HB 659 that was vetoed in 2016 Requires GaDOE to disclose certain financial information of the school districts and schools Template to be ready by January 1, 2018 Disclosure of information by October /25/

19 HB Transparency School site budget and expenditure information: Cost of all materials, equipment, and other nonstaff support; Salary and benefit expenditures for all staff; Cost of all professional development, including training, materials, and tuition provided for instructional staff on an annual basis; Total cost of facility maintenance and small projects; Total expenditures of new construction or major renovation, based on the school system facility plan; and The per student expenditures delineated by ESSA. 8/25/

20 HB Transparency School system level information: Annual budget of the local board of education Ratios of expenditures to revenues for all general and special revenue funds; Total dollar amount of local property tax revenue the school system collected in addition to the actual millage rate levied; and Total dollar amount of all other tax revenue that is collected by the school system. 8/25/

21 HB Transparency School District included links to the following on Department of Education s website: Annual budget submitted to the State Board of Education pursuant to Code Section ; Annual personnel report prepared by the state auditor pursuant to code Section ; Most recent five years of audits conducted by the DOAA pursuant to Code Section and any additional independent audits conducted pursuant to Code Section Any findings of irregularities or budget deficits SPLOST Schedule 8/25/

22 HB Transparency School Level included links to the following on Department of Education s website: Financial Efficiency Ratings for the school published by GOSA And all the information required to be linked by the school system level. (just provide the same link at the school level and district level to all the information on DOAA, GaDOE, and GOSA websites) 8/25/

23 HB Transparency What does GaDOE have to do? Develop rules and regulations for reporting no later than January 1, 2018 Publish all information by October 31, 2018 What information? FY 2017 financial data? FY 2018 financial data? What audits will be available? SPLOST schedule for FY 2018 is not due to DOAA until December 15, 2018? Publish annually the underlying fiscal data that inform the financial efficiency rating calculated by GOSA with an explanation of the fiscal data that inform the rating on a disaggregated basis. 8/25/

24 HB Transparency What does GOSA have to do? Report the percentage of students with each state funded characteristic at the local school system and school levels. Online sortable database for each local school system and school on the per student expenditures used to determining the financial efficiency rating. Online sortable database for each local school system and school on the per student expenditures used for reporting in accordance with ESSA. Report the relative financial performance of local school systems and schools. 8/25/

25 HB Transparency Lastly, what do all state and local government entities have to do? Cooperate with and assist each other in complying with this part. Department of Education Department of Audits and Accounts Governor s Office of Planning and Budget Governor s Office of Student Achievement 8/25/

26 HB Transparency 8/25/

27 HB Transparency 8/25/

28 Is Georgia Alone in Financial Transparency Requirements? NO!!! 8/25/

29 Transparency Nationwide Edunomics Georgetown University 8/25/

30 Transparency Nationwide Colorado Department of Education 8/25/

31 Transparency Nationwide Texas Education Agency 8/25/

32 Are there limitations to the financial data reported? YES!!! 8/25/

33 Financial Data Limitations Maintenance and Building Costs Salary Costs Student Needs Programs that span more than one school Costs that are not recurring each year Higher concentration of set asides Centralized vs Decentralized Operations Overall Flexibility 8/25/

34 Financial Data Considerations As Revenue Increases Expenditures Increase Is a school system fiscally irresponsible if costs are rising? It depends! TRS Employer Rates Increasing Significantly FY % FY % FY % Classified Health Insurance Employer Premiums Increasing FY 17 $ pmpm FY 18 $ pmpm FY 19 $945 pmpm pmpm per member, per month Increasing Enrollment 8/25/

35 Financial Data Important to assess where money is going and compare to results Financial data should be considered in conjunction with other information of the school district. 8/25/

36 Contact Information Amy Rowell Georgia Department of Education Financial Review Division 1652 Twin Towers East 205 Jesse Hill Jr Drive Atlanta, GA /25/

Richard Woods, Georgia s School Superintendent Educating Georgia s Future gadoe.org

Richard Woods, Georgia s School Superintendent Educating Georgia s Future gadoe.org GASBO 2017 GaDOE General Updates November 8 9, 2017 Amy Rowell Financial Review 11/5/2017 1 AGENDA Initial FY 2018 Budget Military Counselors Salary Survey ESSA Financial Efficiency Star Rating HB 139