Budgeting

Objectives

Participants will learn:• Resources for budgeting• Distribution of state special ed funds• Projecting state and federal funds• Code structure for budgets• Developing a budget• Monitoring a budget• Roll forward and lapsed funds

Projecting State Special Education Funds

Important documents for getting started:– Student Attendance Accounting Handbook

(SAAH) http://www.tea.state.tx.us/school.finance/handbook/index.html

– Public Education Information Management System (PEIMS) http://www.tea.state.tx.us/peims/standards/index.html

– Financial Accountability System Resource

(FAR) Guidehttp://www.tea.state.tx.us/school.finance/audit/resguide12/index.html

Student Attendance Accounting Handbook (SAAH)

• Describes Foundation School Program (FSP) eligibility requirements of all students

• Contains chapter on special education

requirements

• Describes instructional arrangements

• Provides information to understand which students are eligible for State special education funds

PEIMS

• Understand data and coding structure

• Know submission dates (four times a year) and

how they relate to budgets and revenue

• Have system to get accurate data to PEIMS

clerk on time

Getting Started with Budgeting

• Chart – Distribution of State Funds for Students Receiving

Special Education (handout)

• District data will impact– Number of students by instructional arrangement– Adjusted allotment– Attendance– Days of instruction for students

DISTRIBUTION OF STATE FUNDSFOR STUDENTS RECEIVING SPECIAL EDUCATION

Example: Funds Generated by One Student if Adjusted Allotment (AA) = $3,000

Instructional Arrangement

Hmbnd Resrce* Speech Hospital VAC Off HomeCampus

ResidentC & T

Mainstrm(ADA)

(A) Days Present 180 180 180 180 180 180 180 180

(B) Average Hours per Day 1 2.859 0.25 4.5 5.5 4.25 5.5 6

(C) Total Contact Hours [A x B] 180 514.62 45 810 990 765 990 1,080

(D) Days Taught x 6 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080

(E) FTE [C / D] 0.1667 0.4765 0.0417 0.7500 0.9167 0.7083 0.9167 1.0000

(F) Funding Weight 5 3 5 3 2.3 2.7 4 1.1

(G) Weighted FTE [E x F] 0.8333 1.4295 0.2083 2.2500 2.1083 1.9125 3.6667 1.1000

(H) AA 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

(I) Sp Ed Funds Generated [G x H] 2,500 4,289 625 6,750 6,325 5,738 11,000 3,300

(J) ADA of This Student 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

(K) Sp Ed FTE [from E] 0.1667 0.4765 0.0417 0.7500 0.9167 0.7083 0.9167 0.0000

(L) Regular Program ADA [J-K] 0.8333 0.5235 0.9583 0.2500 0.0833 0.2917 0.0833 1.0000

(M) AA 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

(N) Reg Ed Funds Generated [L x M] 2,500 1,571 2,875 750 250 875 250 3,000

(O) Total Funds Generated [I + N] 5,000 5,860 3,500 7,500 6,575 6,613 11,250 6,300

* Same for self-contained, mild/moderate/severe, regular campus

Summary of Finances

• Includes two projections for State special education funds– LPE Legislative Payment Estimate– DPE District Planning Estimate

• Funds flow to LEAs based on these projections• Be cautious!• View district Summary of Finances at this site:

http://www.tea.state.tx.us/school.finance/funding/sofweb7.html

Projecting Federal Special Education Funds

• Tentative entitlements – approximately May

• Use previous year’s maximum entitlements if projection needed earlier– May want to reduce or if losing students or

maintaining numbers of students– Population and poverty amounts calculated

annually

• Maximum entitlements always unknown until approximately February

Partnering with Business Office

Know • Business office paper work process• Who gets what paper work• Who can provide copies of budgets• When is best time to get up-to-date budgets• What business office expects• Who is paid from each special education budget

Partnering with Business Office

• Include business office timelines in special ed written procedures

• Always meet timelines/deadlines• Know everyone’s role in budgeting State and

Federal special education funds• Every director’s role in budgeting will vary

depending on the district

Financial Accountability System Resource (FAR) Guide

• Provides coding structure for budget

• Review handout with budget codes

• FAR Guide available at this site:

http://www.tea.state.tx.us/school.finance/audit/resguide12/index.html

Financial Accountability System Resource (FAR) Guide

Accounting (budget) codes• Code structure• Basic system code composition• Function codes • Object codes

The Code Structure

X X X - X X - X X X X - X X - X X X - X - X X - X - X X

Major Detail AccountClassification

Major Detail

Indicates a mandatory code for State reporting purposes

Indicates a code that may be used at local option

Major Detail

Object Codes: Assets (1XXX) Liabilities (2XXX) Fund Equity (3XXX) Clearing Accounts (4XXX) Revenues/Income (5XXX) Expenditures/Expenses (6XXX) Other Resources/Non-Operating

Revenues/Residual Equity Transfers In (7XXX)

Other Uses/Non-Operating Expenses/Residual Equity Transfers Out (8XXX)

Fund Codes (1XX - 8XX)

Account Groups (9XX)

FunctionCodes (11 - 99)

Local OptionCodes 1 and 2 (XX)

OrganizationCodes (001 - 999)

FiscalYearCode (0 - 9)

ProgramIntentCodes

(11 - 99)

Local OptionCode 3 (X)

Local OptionCodes 4 and 5 (XX)

Ready To Start Budgeting

First things first . . .• Budget personnel first• Meet with staff and stakeholders to develop

budget for remaining funds and new personnel• Use surveys, demographic data, and student

achievement data to help budget for priorities• Budget for the unexpected

Prior End-of-Year Budgets

Review previous year’s budgets to get a feel for current year budget– Less likely to forget to budget for expenditure– Gives indication on continuing expenditures

that must be budgeted

State Special Education Funds

Budget for . . .• 15% indirect funds (sometimes referred to

administrative cost) (TAC 105.11)

• If SSA, budget for centralized costs– Determine budget for centralized costs– Have process to determine how much each district

pays– Each member district must budget 85% of State

special education funds for direct services (TAC 89.1125)

Local Special Education Funds

Local special education funds• Funds district contributes over and above state

special education funds• Use for special education expenditures not

allowed from state and federal special education funds

• When reducing these funds, be aware these funds can impact MOE significantly

Federal Special Education Funds

Budget for . . .• Residential set aside

– 25% of tentative base entitlement of IDEA-B Formula

• Private school proportionate sharehttp://www.tea.state.tx.us/special.ed/private/psguide.pdf

• Early intervening services (EIS)– Up to 15% of IDEA-B Formula maximum

Federal Special Education Funds

Budget for . . .• Schoolwide program (if applicable)

• Related services to maximize Medicaid reimbursement

• Federal indirect cost

Which Budget To Use

• Use the following to help decide where to budget expenditures

– Allowables and unallowables for state and federal funds

– Previous budgets

– Funding pyramid of fund sources

Laws, Rules, Regulations Budgeting Funds

Excess cost of serving students with disabilities (34 CFR §300.184)

Early intervening services (34 CFR § 300.226 )

FederalSpecial

Education Funds

Services over/above what is funded with state/local

funds

Must be spent on the excess cost of serving students with disabilities (34 CFR §300.184)

At least 85% must be spent for services for students with disabilities (TEC §42.151(h), TAC §89.1125 and TAC §105.11)

StateSpecial

Education Block Grant

Special services, materials, supplies, and equipment

directly related to the development and

implementation of IEPs not ordinarily purchased for the

regular classroom.

Generated by all students enrolled in the district (TEC §42.003)

FoundationSchool Program

(FSP)

Services, materials, supplies, and equipment provided to all students

Maintenance of Effort(34 CFR §203)

Local FundsLEA may not spend less

from local funds below the level for the preceding

fiscal year to meet MOE.

Supplement vs. Supplant

Special education funds must be used to supplement and increase the level of federal, state, and local funds expended for special education and related services provided to children with disabilities and in no case to supplant those federal, state, and local funds

(34 § CFR 300.162)

Budgeting Cycles

FUND BUDGETING CYCLE

IDEA-B Formula/IDEA-B Formula (Deaf) 7/1 through 6/30

IDEA-B Preschool/IDEA-B Preschool (Deaf) 7/1 through 6/30

IDEA-B Discretionary 7/1 through 8/31

State Deaf 9/1 through 8/31

IDEA-B Deaf-Blind Discretionary 10/1 through 9/30

IDEA-D Deaf-Blind 10/1 through 9/30

IDEA-C Early Intervention (Deaf) 7/1 through 9/30

State Special Education Block Grant LEA fiscal year

Flow of Funds

State special education funds• Summary of finances• No application

Federal special education funds• WebSAS application due no later than first

business day in September• Submit expenditure reports for reimbursement

Monitor Budget

• Develop a written process– Who does what, i.e. you, secretary, staff– Who has authority to spend funds, approve

expenditures, etc.

• Maintain NOGAs and TEA award letters• Know when to amend budgets

– Match local budget to WebSAS/eGrants budget– Monitor emails for auto-communications regarding

application status in WebSAS/eGrants– Review budgets on regular basis

• Prevent lapsed funds

Lapsed Funds

• Department of Education (USDE) views Lapsed Funds as a significant risk factor

• Lapsed Funds and large Roll Forward amounts could indicate:– Lack of programmatic and financial planning– Lack of internal controls over obligations– Inability to liquidate obligations in a timely manner– Poor financial systems– Poor cash management practices

Resources

– Student Attendance Accounting Handbook

(SAAH) http://www.tea.state.tx.us/school.finance/handbook/index.html

– Public Education Information Management

System (PEIMS)http://www.tea.state.tx.us/peims/standards/index.html

– Financial Accountability System Resource

(FAR) Guidehttp://www.tea.state.tx.us/school.finance/audit/resguide12/

index.html

– WebSAS Administrators Guide

http://www.tea.state.tx.us/special.ed/funding/pdf/admin08.pdf

Summary

During this module, participants learned:• Resources for budgeting• Distribution of state special ed funds• Projecting state and federal funds• Code structure for budgets• Developing a budget• Monitoring a budget• Roll forward and lapsed funds