State FSP Special Allotments Monitoring DENISE DUSEK EDUCATION SERVICE CENTER, REGION 20 NOVEMBER 2016
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1 State FSP Special Allotments Monitoring DENISE DUSEK EDUCATION SERVICE CENTER, REGION 20 NOVEMBER 2016
2 State Funds Compliance Monitoring LEAs receive special allotments from the TEA's Foundation School Program (FSP) TEA is implementing a new monitoring program specifically designed to focus on ensuring the LEA's compliance and accountability related to these supplemental state allotment programs EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
3 State Funds Compliance Monitoring These supplemental state allotment programs have mandated direct expenditure requirements: Special Education: 52% Compensatory Education (SCE): 52% Bilingual Education: 52% Career and Technical Education (CTE): 58% Gifted and Talented Education (GT): 55% High School Education: 100% EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
4 19 TAC Maximum Allowable Indirect Cost (a) No more than 48% of each school district's Foundation School Program (FSP) special allotments under the Texas Education Code, Chapter 42, Subchapter C, may be expended for indirect costs related to the following programs: compensatory education, bilingual education and special language programs, and special education. No more than 45% of each school district's FSP special allotments under the Texas Education Code, Chapter 42, Subchapter C, may be expended for indirect costs related to gifted and talented education programs. No more than 42% of each school district's FSP special allotments under the Texas Education Code, Chapter 42, Subchapter C, may be expended for indirect costs related to career and technical education programs. Indirect costs may be attributed to the following expenditure function codes: 34 Student Transportation; 41 General Administration; 81 Facilities Acquisition and Construction; and the Function 90 series of the general fund, as defined in the Texas Education Agency publication, Financial Accountability System Resource Guide. c=&p_ploc=&pg=1&p_tac=&ti=19&pt=2&ch=105&rl=11 EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
5 19 TAC Maximum Allowable Indirect Cost Establishes maximum amount that can be spent on indirect costs related to certain special allotments funded by state funds [FSP (Foundation School Program)] EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
6 19 TAC Maximum Allowable Indirect Cost Special Allotment from FSP Maximum Amount to be spent on Indirect Costs Minimum Amount to be spent on Direct Costs State Compensatory Education (SCE) 48% 52% Bilingual Education and Special Language programs 48% 52% Special Education 48% 52% Gifted and Talented Education programs (GT) 45% 55% Career and Technical Education programs (CTE) 42% 58% EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
7 Summary of Finances (SOF) Illustrates the minimum percentage to be spent on direct costs in relation to 19 TAC EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
8 Summary of Finances (SOF) The terminology spend xx% of amount can be misleading It doesn t mean you only need to spend that percent of your special allotment It means that is the minimum percent to spend on direct costs to keep from violating the maximum percent allowed for indirect costs according to 19 TAC You may spend 100% on direct costs if you prefer EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
9 Special Allotment Monitoring Program (SAMP) TEA monitors compliance by looking at the percent the LEA spent on direct costs In addition to the five special allotments listed in 19 TAC , TEA also monitors for 100% direct cost spending for the High School Allotment EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
10 High School Allotment TEC HIGH SCHOOL ALLOTMENT. (a) A school district is entitled to an annual allotment of $275 for each student in average daily attendance in grades 9 through 12 in the district (c) An open enrollment charter school is entitled to an allotment under this section in the same manner as a school district. EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
11 High School Allotment TAC UNALLOWABLE EXPENDITURES A school district may not spend high school allotment funds on indirect or administrative costs or athletic programs. &p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=19&pt=2&ch=61&rl=1096 EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
12 Special Allotment Monitoring Program (SAMP) Two fold Compliance: Correct percentage spent Expenditures were allowable Refer to TEA s power point on ESC 20 webpage for allowable and unallowable expenditures and statutory citations EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
13 TEA s Presentation at ESC 20 on 10/27/16 TEA Resources on ESC 20 webpage: TEA s presentation describes allowable use of funds for each of the special allotments EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
14 Monitoring Compliance TEA will monitor compliance based on a three year average TEA provides flexibility with a three year average Independent auditors monitor compliance based on one year (not three year average) the year being audited for the annual audit LEAs should strive to be in compliance each year EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
15 TEA s SAMP Monitoring Tool Currently being developed and tested See prototype on ESC 20 webpage Once finalized, the tool will be available on TEA s website Tool will automatically populate LEA s dollar amounts when the LEA s CDN is inserted The three fiscal years monitored will be determined by the release date of the SAMP monitoring tool EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
16 TEA s Monitoring Tool TEA Resources on ESC 20 webpage: See prototype of TEA s SAMP monitoring tool on the ESC 20 webpage The worksheet is a pdf, so interactive calculations are not possible with this sample EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
17 RESOURCES ESC 20 ESC 20 developed two Excel calculation tools for LEAs to use, since TEA s Special Allotments Variance Report (monitoring tool) is not available yet Three Year Average computation Prior Year computation for annual audit EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
18 ESC 20 s Monitoring Tools ESC 20 Templates on webpage: Two worksheets to determine compliance: Based on Three Year Average Based on One Year (for the annual audit) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
19 ESC 20 s Monitoring Tools Sample documents for training purposes are also available on the webpage EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
20 Expenditures EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
21 Data Source for Expenditures Use allocated data for expenditures: PEIMS Mid Year Collection OR PRF1D007 Actual Compliance Report General Fund Allocated TSDS PEIMS Mid Year Collection TSDS PEIMS Actual Compliance Report Allocated Funds EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
22 Allocated vs Unallocated Data Program Intent Codes (PICs) are used to account for the cost of instruction and other services that are directed toward a particular need of a specific set of students Examples: PIC 23 = Special Education PIC 21 = Gifted and Talented EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
23 Allocated vs Unallocated Data Use specific Basic or Enhanced PIC for any transaction that is clearly and directly attributable to that particular program intent Use PIC 99 Undistributed for all charges that cannot be clearly attributable to a specific program intent EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
24 Allocated vs Unallocated Data Unallocated PEIMS/TSDS report illustrates expenditures coded by the LEA to the various PICs Amounts should match local records Allocated PEIMS/TSDS report uses a formula to allocate costs recorded in PIC 99 Undistributed to the Basic and Enhanced Program Intent Codes according to instructional FTEs assigned to those PICs Expenditures for specific PICs in the Allocated report will be higher than those in the Unallocated report and in local records EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
25 Allocated vs Unallocated Data ALLOCATED SAMPLE FUNC CODE PIC 21 GT PIC 22 CTE PIC 23 SPED PIC 99 Undistrib ,826 7,986,900 36,445, , ,558 1,032, , ,451 1,078, , ,454 2,043, , ,978 4,233, , ,083 1,047, ,214 3, ,294 24, ,923 0 The system distributed (allocated) amounts in PIC 99 to specific PICs; reducing PIC 99 amt and increasing other PICs UNALLOCATED SAMPLE FUNC CODE PIC 21 GT PIC 22 CTE PIC 23 SPED PIC 99 Undistrib ,541 7,672,831 34,206,223 11,062, , ,612, , , ,105 2,721, ,715 73,230 1,322,077 3,565, ,015, , ,387 2,125,405 6,732, ,197 All amounts show exactly what LEA coded to the PICs matches local records EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
26 Data Source for Expenditures For monitoring compliance based on the three year average computation: Use PEIMS/TSDS reports from prior 3 consecutive years in which you have PEIMS/TSDS reports available Caution: Use the correct report Use allocated (not unallocated) data Use the correct year s report: The year of the Mid Year Collection report = expenditure data from prior fiscal year Example: Mid Year Collection Report = expenditure data EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
27 Data Source for Expenditures Expenditure Reports, if monitoring FY13, FY14, and FY15: Fiscal Year of Expenditures Report Year in PEIMS/TSDS PEIMS EDIT+ Report TSDS Report FY13 ( ) PRF1D007 FY14 ( ) PRF1D007 OR FY15 ( ) PRF1D007 When running TSDS report, select: Standard Reports: Actual Allocation ; Campus ID: All Campuses ; Fund Type: Allocated PDM (Allocated Funds Only) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
28 Data Source for Expenditures For monitoring compliance based on prior year for purposes of annual independent audit: Use local records because PEIMS/TSDS report is not yet available For audit being performed in of FY16 expenditures, use local records of expenditures EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
29 Data Source for Expenditures For certain PICs, use the sum of related PICs for that program: PIC SUM: 23 Special Education = PIC 23 Special Education + PIC 33 PreK Special Education 25 Bilingual Education = PIC 25 Bilingual Education + PIC 35 PreK Bilingual 24 Compensatory Education = PIC 24 Accelerated Education + PIC 26 AEP Services + PIC 28 DAEP Basic + PIC 29 DAEP Suppl + PIC 30 Title I, Part A + PIC 34 PreK Comp Ed EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
30 Revenue EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
31 Data Source for Revenue Use Summary of Finances (SOF) for revenue data The SOF version (payment cycle) depends on whether you are monitoring for the three year average calculation or the prior year computation for your annual independent audit EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
32 Data Source for Revenue For monitoring compliance based on the three year average computation: For each fiscal year, use the version (payment cycle) of the SOF that is the most recent Final version For each fiscal year, use revenue from the Final column (not the LPE column) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
33 Data Source for Revenue For three year average computation, use final Final Version of SOF for each fiscal year used in the calculation EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
34 Data Source for Revenue For three year average computation, use revenue indicated in the Final column of the SOF for each fiscal year s SOF (Do not use the LPE column) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
35 ESC 20 Monitoring Tool Revenue reports, if monitoring FY13, FY14, and FY15: Fiscal Year of Revenue Summary of Finances Report Payment Cycle Section Column FY13 ( ) FY14 ( ) FY15 ( ) Last Final Tier I Allotments; Program Intent Codes Allotments (page 2 in pdf version) Final (Don t use LPE column) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
36 Data Source for Revenue For monitoring compliance based on prior year for purposes of annual independent audit: Use the most recent Near Final payment cycle available (since Final versions are not available yet) Use revenue from the NF column (not the LPE column) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
37 Data Source for Revenue For monitoring prior year for annual audit, use most recent Near Final version of the SOF EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
38 Data Source for Revenue For monitoring prior year for annual audit, use revenue indicated in the NF column (Do not use the LPE column) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
39 Data Source for Revenue Caution: Use correct data Use correct fiscal year for the SOF Use latest version (payment cycle) Use correct column do not use LPE column For each PIC, ensure you are going by the PIC and not the line number Line 31 is PIC 21 GT; PIC 31 is High School Allotment, Line 37 EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
40 Data Source for Revenue Don t confuse the Line number (row) with the PIC number EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
41 Consequences of Non Compliance Based on the level of underutilization, TEA will: Provide corrective action plans, or Conduct further monitoring review activities to seek LEA statutory compliance EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
42 In depth Analysis If you need to analyze spending, the following PEIMS/TSDS reports provide greater detail since they include class object codes as well as PIC and Function Codes: PEIMS Mid Year Collection EDIT+ PRF1D003 Actual Allocated Expenditures by Program and Object within Function General Fund (allocated data) OR TSDS Mid Year Collection PDM Actual Expenditures by Program and Object within Function (allocated funds only) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
43 In depth Analysis Detailed Expenditure Reports, if monitoring FY13, FY14, and FY15: Expenditures for Fiscal Year: Report Year in PEIMS/TSDS: PEIMS EDIT+ Report: TSDS Report: FY13 ( ) PRF1D003 FY14 ( ) PRF1D003 OR FY15 ( ) PRF1D003 PDM (General Fund Allocated Only) When running TSDS report, select: Standard Reports: Actual ; Campus ID: All Campuses ; Fund Type: General Fund Allocated EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
44 Special Allotments vs MOE Special Allotments State FSP State Law Looks at percentage spent on direct costs vs indirect costs Uses allocated expenditure data Uses final Final payment cycle from SOF Uses Final/NF column of revenue in SOF Maintenance of Effort for IDEA B Federal Regulation Looks at maintaining the same level of spending on special education from the general fund from one year to the next Uses unallocated expenditure data Uses first Near Final payment cycle from SOF Uses LPE column of revenue in SOF EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
45 RESOURCES ESC 20 Administrative & Instructional Services Support State FSP Special Allotments Resources from TEA s presentation at ESC 20 on 10/27/16 ESC 20 Template for monitoring three year average ESC 20 Template for monitoring one year for the annual audit EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
46 CONTACT ESC 20 TEA Denise Dusek Sunny Sadler Federal Funding Specialist Division of Financial Compliance (210) (512) EDUCATION SERVICE CENTER, REGION 20 NOVEMBER
State FSP Special Allotments Monitoring DENISE DUSEK
State FSP Special Allotments Monitoring DENISE DUSEK EDUCATION SERVICE CENTER, REGION 20 NOVEMBER 2016 State Funds Compliance Monitoring LEAs receive special allotments from the TEA's Foundation School
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