Spring 2017 FISCAL WORKSHOP Bob Steponovich Ginese Quann Erin Finnell
11 ELEMENTS OF THE ALLOCATION PLAN 1. State Special Education Funding 2. Federal Special Education Funding 3. Partner Definition 4. Charter SELPA Administrative Fee 5. Set Aside Pool 6. Unspent Funds 7. Income Re-Allocation 8. Educationally Related Mental Health Services (ERMHS) 9. Risk Pool 10. Special Education Deficit 11. Low Incidence Materials and Services 2
ALLOCATION PLAN YEAR END / MOE STATE FUNDING YEAR-END CLOSE FEDERAL FUNDING REVENUES ADMINISTRATIVE FEE EXPENDITURES OVERVIEW SET ASIDE POOL UNSPENT FUNDS LOCAL CONTRIBUTION YEAR-END REPORT/MOE ERMHS FUNDING INCOME REALLOCATION LEGAL RISK POOL LOW INCIDENCE EXCESS COSTS
STATE FUNDING 2016-17 STATE SPECIAL EDUCATION FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Yes, the formula said you would get $100. But, we just didn t budget for that, so here s $98. Tell ya what. 2016-17 STATE RATE I ll hit you back if I find some available cash down the road. K? $507 SPED DEFICIT
STATE FUNDING 2016-17 STATE SPECIAL EDUCATION FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Rate Smoothing 2016-17 STATE RATE Pool $507 CEO Council Action May 2014 1 st funding with 2014-15 deficit restoration in February 2016. Smooth out unpredictability of budget rates. ~$980K balance close of current year CEO council action required to allocate funds from the rate smoothing pool.
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE 2016-17 STATE SPECIAL EDUCATION FUNDING Budget Update - $507 up from $503 SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE 2016-17 STATE RATE $507 Assumes a 2.0% deficit in 2016-17 2016-17 P-2 ADA (current year) Less Admin fee (6%,5%,4%) Less Set-Aside Contribution (1 st year only)
STATE FUNDING 2016-17 STATE SPECIAL EDUCATION FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE In July 2016, we recommended $503 per ADA. As of Feb 17: 2016-17 deficit higher than 2.71%, however confident that deficit will diminish 2015-16 deficit additional deficit restoral from 2.71% to 1.70% to Rate Smoothing Pool 2016-17 Special Education Deficit Charter SELPA Member Rate 2016-17 STATE RATE 1 2015-16 Charter Rate $516.93 $507 2 2016-17 COLA (0%) $ 0.00 3 2016-17 Charter Rate $516.93 4 February 2017 3.30% $500.00 5 June 2017 estimate 2.71% $503.00 6 February 2018 estimate 2.00% $507.00
STATE FUNDING 2016-17 FEDERAL SPECIAL EDUCATION FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE FEDERAL IDEA GRANT TO CALIFORNIA SELPA SHARE BASED ON: a. Historical base amount b. Prior year enrollment (85% weight) c. Prior year free and reduced counts (15% weight) CDE calculation of grants finalized December to February
STATE FUNDING 2016-17 FEDERAL SPECIAL EDUCATION FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL Federal funding distributed based on prior year enrollment (CBEDS October count). Must submit expenditures in order to receive cash. 3 reporting dates Start up Charters do not generate federal funding until Year 2 of membership in the Charter SELPA. UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Charters with unspent funds greater than 25% in the prior year are not eligible to participate. Charters may decline to participate voluntarily. Charters new to the SELPA, but in operation in the prior year, may generate and receive federal funding if CDE includes their enrollment in the SELPA federal calculation.
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE 2016-17 FEDERAL SPECIAL EDUCATION FUNDING Budget Update - $127 up from $125 SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE 2016-17 FEDERAL RATE $127 Federal grant finalized late this year October 2015 CBEDS count Less Admin Fee (6%,5%,4%) Work w/cde early on LEAs to include
BUDGET YEAR 2017-18
STATE FUNDING FEDERAL FUNDING 2017-18 STATE SPECIAL EDUCATION FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE 2017-18 STATE RATE $514 Estimate assumes a 2% deficit for 17-18 2017-18 P-2 ADA Less Admin fee (6%,5%,4%) Less Set-Aside Contribution (1 st year only)
STATE FUNDING FEDERAL FUNDING 2017-18 FEDERAL SPECIAL EDUCATION FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE 2017-18 FEDERAL RATE $125 October 2016 CBEDS count Less Admin Fee (6%,5%,4%)
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL Single Charter Partner One charter in the Charter SELPA One vote per charter Administrative Fee based on date of charter entry into the Charter SELPA UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Organization Partner 2+ charters in the Charter SELPA One vote per charter Administrative Fee based on date of CMO/Non-Profit entry into the Charter SELPA
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Reserve for SELPA-wide Protection SELPA funding declines as a result of the action of a member SELPA required to return funding No recourse to recover the funds bankruptcy/closure Model Change in 2016-17 Previous Shared model = severable risk model Shared risk = lower required balance needed 15-16 member contribution = $2.50/ADA (P-2 15-16) New member contribution = one time $5.00/ADA contribution (P2 1 st year) Actions Close 15-16 under previous rules (i.e. final adjustment, interest, return to departing charters) 15-16 members returning in 16-17 = return amounts above $2.50 per ADA Maximum existing member contribution = $25K Transfer $200K from Legal Risk Pool Balance @ year end ~$550K
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE *CEO Council NO Action Item CHANGE May 2017 Unspent special education funds are not anticipated and, in fact, are not common. Less than 25% Unspent Budget Justification for Federal Funds Possible IRT (fiscal & program) Review Greater than 25% Unspent No Federal Funds Next Year Modification of State Funding Reimbursement Based Funding IRT (fiscal & program) Review
2016-17 STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE Level 2 IEP Based ERMHS Services $8 ERMHS Million Educationally Related Mental Health Services Level 3 Site-Based Structured Therapeutic ERMHS Program Level 3 NPS ERMHS in NPS Level 3 NPS-Residential Room and Board for ERMHS Services Any Eligibility ED ED ED $100,000 Transportation 80% of the lesser of: $3,300 per service $250 per ADA Budget Request 80% of ERMHS Allowed Cost $3 Million 90% of ERMHS Allowed Cost 100% of Room & Board Costs *By September 15 of each year, there will be a finding of sufficiency of funding that sets the Level 2 rate at a range from $2,000 to $3,000 (or higher) and provides for Level 2 transportation cost funding and Level 2 indirect to be claimed. By May 2017, SELPA will make an additional finding of sufficiency to fund more than 80%.
STATE FUNDING 2016-17 FEDERAL FUNDING ADMINISTRATIVE FEE Level 2 Level 3 Site-Based Level 3 NPS Level 3 NPS-Residential SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL IEP Based ERMHS Services ERMHS 80% 90% of the lesser of: $ 3,300 per service $ 250 per ADA Budget Request Educationally Related Mental Health Services Structured Therapeutic ERMHS Program 80% 90% of ERMHS Allowed Cost ERMHS in NPS 90% of ERMHS Allowed Cost Room and Board for ERMHS Services 100% of Room & Board Costs LOW INCIDENCE
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING ERMHS Educationally Related Mental Health Services LEGAL RISK POOL LOW INCIDENCE
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE *CEO NO Council CHANGE Action Item May 2017? Eligible legal costs associated with a due process filing Increasing balance past 4 years Projected ending 16-17 = $1M 50% 60% reimbursement $20K $30K maximum claim Up to $10K $18K reimbursement
STATE FUNDING FEDERAL FUNDING ADMINISTRATIVE FEE SET ASIDE POOL UNSPENT FUNDS ERMHS FUNDING LEGAL RISK POOL LOW INCIDENCE BUDGET UPDATE $134,000 available $600 minimum claim $433 reimbursement per claim is the starting point Additional funding may be provided based on claims/reimbursements submitted Finding of additional funding to be made May/June 2017 SPED DEFICIT
ALLOCATION PLAN YEAR END / MOE STATE FUNDING YEAR-END CLOSE FEDERAL FUNDING REVENUES ADMINISTRATIVE FEE EXPENDITURES OVERVIEW SET ASIDE POOL UNSPENT FUNDS LOCAL CONTRIBUTION YEAR END REPORT/MOE ERMHS FUNDING INCOME REALLOCATION LEGAL RISK POOL LOW INCIDENCE EXCESS COSTS
YEAR END CLOSE AT A GLANCE YEAR-END CLOSE REVENUES EXPENDITURES Sept 5 Year End/MOE Report w/final state expenditures due April MOE Pre-Test: Practice close, test for any MOE issues or unspent funds April Submit P-2 ADA to authorizer/state LOCAL CONTRIBUTION MOE INCOME REALLOCATION August 7 SELPA will report final income & accruals for all sources & publish Year End/MOE Report April 2 nd Interim Federal Expenditure report EXCESS COSTS July 13 Final Expenditure report for: ERMHS and Federal May 1 Final Low Incidence and Legal Risk Pool claims submitted June SELPA will report final state/federal income
REVENUES 2016-17 FEDERAL STATE SET ASIDE RETURN OTHER STATE ERMHS Resource 3310 Object 8181 Resource 6500 Object 8792 Resource 6500 Object 8792 Resource 6500 Object 8792 Resource 6512 Object 8590 $127 2015-16 CBEDS Less Admin Eligible Partners $507 2016-17 P-2 ADA Less Admin/ Set-Aside (new charters only) 2015-16 Partners returning in 2016-17 Amount above $2.50/ADA 2015-16 P-2 ADA Low Incidence Legal Risk Pool Level 2 State Resource 3327 Object 8182 Level 3 Details on website Federal*
EXPENDITURES Direct Costs Direct Instruction & Administration of Special Ed SpEd Administrators, Teachers, Admin Support, Aides (Salaries + Benefits), Contracted Services Books, Supplies Capital Outlay Expenditures Allocated Costs Direct Support Indirect Costs Peripheral/Related to SpEd Instruction Principal, Librarian, School Secretary, Nurse, Maintenance, Transportation CSAM Guidelines: FTE, Classroom Units, Students Transported Reasonable Schoolwide General Management Accounting, Payroll, HR, IT Assigned Rate - Set by CDE Ranges <2% to >10% Statewide Avg. = 5.25%
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE Documenting Salary & Wages Any staff funded (partially or completely) from a restricted source (e.g. SpEd revenue) needs to have time documentation on record Substitute systems = PAR sampling, schedule (CDE approval) Federal Requirements Single Cost Objective Example: Ed Specialist who is full time special education, but part state part federal funded. Multiple Cost Objective Example: Psychologist who is part time special education, part time general education. INCOME REALLOCATION EXCESS COSTS STATE = State Documented Method (Activity Worksheets) Guidelines provided for federal funding OK to use for state funding Info and samples from CSAM in Year End Resource Guide See CSAM Procedure 905 for full details Periodic Certification required at least semiannually State that the employee worked solely on that single cost objective during the period. Personnel Activity Report (PAR) required monthly Report of daily activity by hours or hours/% of hours spent in each objective.
YEAR-END CLOSE REVENUES Special Ed Revenues Special Ed Expenditures EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS Special Ed Revenues Local Contribution Federal State Special Ed Expenditures Indirect Direct Support Direct Costs *not to scale Statewide, 40% of costs are funded from local sources for school districts 10-20% average for charters EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS Unspent Funds! Are there missing expenses? Have all of vendors sent invoices? Organizational Partner can you use income reallocation? EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
Capture Revenues Capture Direct Costs Allocate Costs Calculate Local Contribution Complete SELPA Year-End Report Review MOE
MAINTENANCE OF EFFORT (MOE) YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION TWO PART REQUIREMENT TO RECEIVE FEDERAL FUNDS YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS Federal requirement to spend $1 more in STATE AND LOCAL FUNDS in current year as was spent in prior year. Federal requirement to budget in the next year $1 more in STATE AND LOCAL funds than was spent in current year. EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS Four Tests 1. State and local expenditures 2. State and local expenditures/per SpEd pupil (above / pupil count) 3. Local expenditures 4. Local expenditures/per SpEd pupil (above / pupil count) Four Exemptions 1. Staffing savings 2. SpEd Pupil Count decline 3. One time decline related to student services change 4. Decline due to one time expenditure such as capital outlay EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS 2 TYPES OF EXPENDITURES USE OF CHANGE SPECIAL EDUCATION FUNDS Direct Costs Organization Partners may re-allocate income among their charters Manage MOE Manage Unspent Funds NO Allocated costs State or Federal funds can be used for any special education eligible expenditure to support the special education program including assessments, costs related to IEP services, and special education administration. Manage local contribution among charters Board authority needed Federal funds must be fully spent by June 30 each year. We recommend salaries or contracted services to ensure the funds are fully spent. See the expenditure section for additional details on eligible expenditures. Sample resolution on website Low Incidence funds are limited to materials or services for students who have a low incidence disability and have been identified as a necessary material or service on the IEP. See our Year-End Reference Guide for more details EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION/CARRYOVER LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES TESTING INDICATORS EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION EXCESS COSTS EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
YEAR-END CLOSE REVENUES EXPENDITURES PASS Review the percentage of increase Review budget year LOCAL CONTRIBUTION YEAR END REPORT/MOE INCOME REALLOCATION MOE Use of allocated costs EXCESS COSTS DON T PASS Application of allowable exemptions Income Reallocation EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
EXCESS COSTS YEAR-END CLOSE Example: REVENUES EXPENDITURES LOCAL CONTRIBUTION YEAR END REPORT/MOE (10 SWD x 25% of time in SpEd = 2.5 FTE) $1M total GenEd costs / 250 total students = $4,000 $4,000 per x 2.5 SpEd FTE = $10,000 SpEd Expenses Requirement to spend state and local dollars on special education students at a level equal to what is spent on general education students, prior to spending federal dollars. INCOME REALLOCATION EXCESS COSTS from State & Local Charter SELPA will perform this annual calculation on your behalf. $10,000 Minimum spent from State and Local CDE now requires the CFO/CBO of each LEA sign the calculation and the SELPA will submit to CDE by November 1. *FTE comes from SEIS time spent in special education. EL DORADO COUNTY CHARTER SELPA WWW.EDCOECHARTERSELPA.ORG
Unspent Funds Didn t Pass MOE Cash Discrepancies CALL SELPA BUSINESS TEAM Any Other Questions
FISCAL COMMUNICATION 1. Fiscal Committee Meetings (web): Jun 2017, Oct 2017 & May 2018 2. Program/Business Roundtables (web): Oct 2017 & Feb 2018 3. Fiscal Workshops: Jul - Aug 2017 & Apr 2018 4. Website 45
FISCAL EMAIL COMMUNICATION 46