Superintendents Academy Special Education Fiscal Accountability Alabama State
Superintendent’s Academy Special Education: Fiscal Accountability Alabama State Department of Education Special Education Services
Presentation Objectives: v. Explain IDEA special education services funding provided for children ages 3 -21 v. Provide an overview of Fiscal regulations and requirements for special education funding v. Provide an overview of Fiscal Management responsibility required by the SEA and LEA
Primary Focus: Fiscal Regulations and Requirements § § Federal, State, Local IDEA Grant Allocations Allowable Expenditures IDEA Fiscal Monitoring
Important Fiscal Acronyms §CCEIS-Comprehensive Coordinated Early Intervening Services §EDGAR-Education Department General Administrative Regulations §GEPA-General Education Provisions Act §LEA-Local Education Agency §LRE-Least Restrictive Environment §MFS-Maintenance of State Financial Support §MOE-Maintenance of Effort §OMB-Office of Management and Budget
Important Fiscal Acronyms §OSEP-Office of Special Education Programs §PAR-Personnel Activity Report §SEA-State Education Agency §UG-Uniform Guidance (2 CFR 200)
Special Education must adhere to the following: Rules and Regulations ü Individuals with Disabilities Education Act (IDEA) ü Elementary & Secondary Education Act (ESEA) ü Education Department General Administrative Regulations (EDGAR) ü Uniform Guidance (UG) ü Alabama Administrative Code (AAC) ü Alabama State Laws ü Local Written Procedures
Federal Regulation IDEA The Individuals with Disabilities Education Act (IDEA) is a United States federal law that governs how states and public agencies provide early intervention, special education, and related services to children. 34 CFR 300
13 Disability Categories Under IDEA v. Autism (AUT) v. Deaf-Blindness (DB) v. Developmental Delay (DD) v. Emotional Disability (ED) v. Hearing Impairment (HI) v. Intellectual Disability (ID) v. Multiple Disabilities (MD)
13 Disability Categories Under IDEA Continued v Orthopedic Impairment (OI) v Other Health Impairment (OHI) v Specific Learning Disability (SLD) v Speech or Language Impairment (SLI) v Traumatic Brain Injury (TBI) v Visual Impairment (VI) Special Note: 504 nor Gifted is an IDEA disability category.
Federal Regulation v Establishes central responsibilities of states, local education agencies, and schools v Creates a grant program that funds special education and related services in public schools for children ages 3 -21
Grants Under IDEA Formula Grants v Part B, IDEA- OSEP, provides formula grants to states to assist in providing FAPE in the least restrictive environment for children with disabilities ages 3 -21. Regular: Section 611, AL Fund Source 3210 (ages 3 -21) Preschool: Section 619, AL Fund Source 3220 (ages 3 -5) OSEP. grads 360. org
Grants Under IDEA Formula Grants Continued v Part C, IDEA- OSEP, provides a formula grant to states to assist in providing early intervention services for infants and toddlers, birth through age two, and their families. OSEP. grads 360. org
Grants Under IDEA Formula Grants Continued v Part D, IDEA- OSEP, provides discretionary grants to institutions of higher education and other non-profit organizations to support research, demonstrations, technical assistance and dissemination, technology, personnel development, parent-training and information centers. Example: State Personnel Development Grant (SPDG) OSEP. grads 360. org
Federal Regulation EDGAR Education Department General Administrative Regulations http: //www 2. ed. gov/policy/fund/reg/edgar. Reg/edgar. html
EDGAR Regulations Include: Office of Management and Budget (OMB), ü Revised Administrative Requirements, ü Cost Principles, ü Audit Rules Governing All Federal Grants ü
EDGAR v Provides administrative requirements for ALL federal grant funds, including requirements for an agency’s financial management systems, procurement systems and inventory management systems v Failure to comply with EDGAR could lead to potentially repaying disallowed costs to the Education Department with non-federal funds
EDGAR Grants Management Systems
IDEA & EDGAR Regulations must be used together!!
Use of IDEA grant funds must comply with EDGAR! For example: EDGAR permits attorney’s fees to be expensed under certain circumstances (2 CFR 200. 435). However, IDEA states that Part B funds may not be used to pay attorney’s fees or costs of a party related to action or proceeding under section 615 of the Act and subpart E [Procedural Safeguards] of the regulations (34 CFR 300. 517(b)). Therefore, IDEA funds may not be used to pay attorney’s fees.
EDGAR Required Policies and Procedures v Written Cash Management Procedures- UG Sections 200. 302(b)(6)and 200. 305 v Written Allowability Procedures- UG Section 200. 302(b)(7) v Written Conflicts of Interest Policy- UG Section 20. 318(c) v Written Procurement Procedures- UG Section 200. 319(c)
EDGAR Required Policies and Procedures v Written Method for Conducting Technical Evaluations of Proposals and Selecting Recipients-UG Section 200. 474 (b) v Procedures for managing equipment- UG Section 200. 313(d) v Time and Effort Policies and Procedures
IDEA Part B and Preschool Funding Both the State and LEAs are responsible for monitoring IDEA funds. There are many procedures and guidelines that must be in the LEAs’ official written and approved policies and procedures.
IDEA Fiscal Requirements ü Excess Cost ü Proportionate Share for Equitable Services of Parentally Placed Private School Students with Disabilities ü Coordinated Early Intervening Services (CEIS) ü Allowable Cost for IDEA ü Maintenance of Effort (MOE) ü Supplement not Supplant
Excess Cost Requirement “Excess cost” are those costs incurred in excess of the average annual per-student expenditure in an LEA during the preceding school year for an elementary or secondary school student.
FEDERAL “IDEA” ALLOCATIONS to LEAs *US Department of ED-OSEP grants IDEA Part B funds to ALSDE; *ALSDE sets aside necessary and allowable amounts for state level activities; the ALSDE must allocate the remainder of the grant as flow-through sub-awards to LEAs.
Framework of the IDEA LEA Allocation How allocations (sub-grants) are distributed to LEAs
IDEA Funds LEA Allocation Part B, IDEA (Section 611) Fund Source 3210 IDEA Part B funds are calculated using three groupings: *The base portion of the allocation is the LEA’s child count from FY 1999; *The remaining funds are then allocated using the LEA population (85%) and poverty data (15%). More specifically, the data used for population is the preceding year’s ADM and the data used for poverty is the preceding year’s direct certification count.
IDEA Funds LEA Allocation Part B, Preschool (Section 619) Fund Source 3220 IDEA Preschool funds are calculated using three groupings similar to Part B: *The base portion of the allocation is the LEA’s child count from FY 1997; *The data used for the LEA’s population (85%) is the preceding year’s Kindergarten ADM plus the Preschool Special Education child count; *The data used for poverty (15%) is the preceding year’s direct certification count
LEA Level Set-Asides: Use of IDEA Part B Funds Equitable Participation Services Set-Aside (Proportionate Share) 34 CFR 300. 133 LEA Administration General Parameters (Necessary, Reasonable, Allocable) 34 CFR 300. 202
Accountability Overview Private School Proportionate Share. Equitable Services Ensure LEAs properly determine and setaside the proportionate share of IDEA funds to be spent on equitable services for parentally-placed private school students with disabilities.
Accountability Overview Comprehensive Coordinated Early Intervening Services (CCEIS) and Coordinated Early Intervening Services (CEIS) REQUIRED: CCEIS requires LEAs identified as having significant disproportionality to reserve the maximum (15%) amount of the total IDEA funds allocated. This includes the Part B, IDEA (611) or function 3210 allocation and Preschool, IDEA (619) or function 3220 allocation. VOLUNTARY: CEIS permits LEAs to use up to 15% of IDEA funds allocated to develop and implement CEIS for at-risk students only.
EDGAR-IDEA Federal Funds BIG PICTURE Maintenance of Effort Allowable Costs (MOE) LEAs must use IDEA funds to pay excess costs of An established amount providing special education of local or state and related services. local special education LEAs must make sure costs funding must be met yearly. are reasonable and allowable. A reduction of special LEAs must follow regulations to ensure that funds are handled in a way that will meet all requirements (posting, bidding, recording, tracking, written procedures, guidelines, etc. ). education funding is only allowed per certain mandates. THE Supplement not Supplant! LEAs must ensure IDEA funds supplement the level of other federal, state and local funds. In the absence of IDEA funds would the item still be “purchased”? If the answer is yes, then that is supplanting and IDEA funds cannot be used. Ensure that IDEA funds are only The state department of used to pay the excess costs of providing special education and education accounting related services. department will notify the LEA if the MOE needs adjustments. Do not comingle IDEA funds with state funds.
Allowable Costs For a cost to be allowable, it must be: ü Necessary-Is the expense necessary for the performance of the administration of the IDEA grant? ü Reasonable-Does the expense meet a valid, programmatic or administrative consideration? Is it a fair rate that can be proven and defended? Does it exceed what a district would normally incur in the absence of federal funds? ü Allocable- Cost must be in proportion to the value received and can only be for the benefit of special education. Authorized expenditures cannot benefit other programs other than through incidental benefit.
Educating Students with Special Needs May Include The Following… Related Services Transportation Services Occupational Therapists, Physical Therapists, Interpreters, Orientation Mobility Specialists, Behavior Specialists, etc. Equipment Hearing Systems, Braille Transcribers, Laptops, i. Pads, Calculators, Timers, Occupational Supports, Physical Education Equipment, etc. And Other Necessities Paraprofessionals, Professional Development, Consultants, Outside Evaluations, Transportation, Extended School Year Services, etc.
Allowable Cost Requirement Adequately documented expenditures must be clear. This includes the amount and exactly how the funds are used, the total cost of the project, and records showing performance and compliance that could facilitate an effective audit. (Statute of Limitations=5 Years) Retain Documents for 5 years Special note: AL is 5 yrs plus 1 yr= 6 years due to Alabama’s different fiscal and academic years
LEA Maintenance of Effort (MOE)Requirement §An LEA may not reduce the amount of local funds, or state and local funds that was spent for the education of children with disabilities, below the amount was spent during the preceding fiscal year. §To meet maintenance of fiscal effort requirement, an LEA must be able to document that it expended an equal amount of local funds or combination of state and local funds for special education and related services as it did in the preceding fiscal year. 34 CFR 300. 20
LEA Maintenance of Effort Eligibility Standard Component: For purposes of eligibility, the SEA must determine that the LEA has budgeted for the education of children with disabilities at least the same total or per capita amount from either local funds only or state and local funds as the LEA spent for that purpose from the same source for the most recent prior year for which information is available.
LEA Maintenance of Effort Compliance Standard Component: Four ways in which an LEA can meet MOE: 1. Local funds only, total expenditures 2. Local funds only, per pupil 3. State and local funds, total expenditures 4. State and local funds, per pupil Possible Consequence for Not Meeting MOE… repayment of funds by the LEA using nonfederal funds.
LEA Maintenance of Effort Can an LEA reduce its MOE? v. Yes, however with a few exceptions. The LEA’s Special Education Program Determination status must be in “Meets Requirements” which is designated by the ALSDE, SES.
LEA MOE Exceptions Include: ü The voluntary departure (by retirement or otherwise) or the departure for just cause of special education and related services ü personnel. ü A decrease in the enrollment of children with disabilities. ü Children with disabilities with an exceptionally costly program: left the LEA, aged out, or no longer need the program. ü The termination of costly expenditures for long-term purchases (equipment, construction, etc. ). ü The assumption of cost by the high-cost fund which is operated by the state. 34 CFR 300. 204
Supplement Not Supplant § IDEA Part B funds must be used to supplement state, local and other federal funds used for providing services to children with disabilities, and not supplant those funds. Note: Designed to ensure Part B funds are used to pay for something “EXTRA”. § If an LEA meets MOE, then the LEA meets supplement not supplant requirements. 34 CFR 300. 202
Time and Effort Requirement When is it Required? If IDEA Program funds are used for salaries, then time distribution records are required. Who Must Participate? üAll employees paid with federal funds and multiple cost objectives but must also look at the work being done. üSome employees paid with non-federal funds (when salaries are split funded). v. Not Required for Contracted Workers Documentation Required Personnel Activity Reports (PARs) ØCompleted at least monthly ØFinalized after work completed ØAccounts (dollar amount or percentage) for the total activity for which employee is compensated ØMust coincide with one or more pay period(s) ØReconcile-make adjustments so that the final amount charged is accurate, allowable and properly allocated.
Time and Effort Requirement Semi-Annual Certification or Single Cost Objective at 100% Semi-Annual Certification Ø Employees who work with special education activities from 1 cost objective Ø Completed at least every six (6) months Ø Completed after work has concluded Ø Signed by an employee or supervisor with firsthand knowledge of the activity performed Ø Accounts for the total activity for which employee is compensated
Budget Requirements Electronic Grant Application Process e. GAP is the Federal Programs Consolidated Application, as well as the funding applications for Career Technical Education, Safe and Drug-Free Schools, Special Education, and Technology Initiatives. The e. GAP system allows LEAs to: üSubmit applications üDevelop plans üRequest funding üProvide electronic avenue to complete expenditure reports üMeet monitoring requirements
Electronic Grant Application Process “e. GAP” • The CSFO and the Special Education Coordinator should work together with the amount of special education funds allotted for IDEA Part B and the amount allotted for IDEA preschool. Those funds provide the framework for completing e. GAP. • e. GAP is required annually to record and document the planned expenditures of each LEA. • e. GAP is approved locally by the LEA, submitted electronically to the state (special education department) and hopefully approved. • After an approved IDEA budget, funds can be released to the LEA. • e. GAP may be amended if necessary during the school year. Amendments must go through the same approval process as the original e. GAP application.
IDEA Part B Assurances Educate Students Ages 3 -21 Student and Parent Rights • All students, by law, must • Ensure that children • All students within the • Ensure that each child be provided a Free Appropriate Public Education (FAPE). LEA’s jurisdiction, including parentallyplaced private school students, homeless students, homebound students and incarcerated students must be served. residing in the LEA are located, identified and evaluated (i. e. child find). Finances • Funds are managed and monitored according to federal and state regulations. • LEAs will comply with the requirements regarding has an individualized the management of funds. education program (IEP) which includes being • LEAs will develop evaluated at no cost to safeguards to monitor the parent. spending and use of all • Ensure that all qualifying IDEA funds. students are served.
Special Education Services Comprehensive Monitoring: A Step Towards Continuous Improvement
Local Education Agencies at Risk • ALSDE staff will conduct a Risk Assessment Annually as a form of monitoring. • ALSDE staff will assign a level of risk: • Elements Include: Risk Range Low <34 • Data integrity Medium 34 -67 • Indicator data High >67 • Fiscal data • Determination status • Other (i. e. Special Education Coordinator/Director experience, professional learning).
Risk Rubric FISCAL DATA Single Audit Review (Federal IDEA Findings/Corrections) Comprehensive Coordinated Early Intervening Services, CCEIS Subgrants/Financial Support - Timely Submission Subgrants/Financial Support Corrections Required Allocation of Funds-use of funds (carryover >31%) Total Points Risk Score 10
Special Education Is Multidimensional! The fiscal management of special education always imposes new questions, creates new instances, has new issues and requires additional support from you and your staff. Know your leadership support is making the difference in the life of a child with a disability!
ALSDE, Special Education Services Fiscal Team If you need assistance, contact a fiscal team representative at 334 -694 -4782 or via email: Erika Richburg erichburg@alsde. edu Curtis Gage cgage@alsde. edu Camilla Gibson cgibson@alsde. edu Sabrina May smay@alsde. edu
Thank You Erika Richburg, Education Administrator Special Education Services 334 -694 -4782 FAX 334 -694 -4978 erichburg@alsde. edu Note: All slide images were obtained from Google Images
- Slides: 52