February 2022
February 2022 Income Surtax Payments
Message from the Department of Management:
The February 2022 income surtax payment is the second and final income surtax payment for the 2020 income tax year. The payment represents one-quarter of the amount of income surtaxes collected for your district, plus or minus any adjustments made by the Department of Revenue.
This payment is based upon the income surtax rates established for your 2020-2021 budget. If your district did not have a surtax for the Physical Plant and Equipment (PPEL) Fund, the entire payment should be credited to the General Fund. On the other hand, if you had both General Fund and PPEL surtax, then split the income surtax in accordance with the rates. The PPEL Income Surtax rate can be found on line 19.4 of the Aid and Levy Worksheet. The General Fund income surtax rates can be found on lines 10.15 and 11.4. The Department of Management has provided a summary, including the split between funds, which is posted on the State Payment Information FY22 webpage.
Open Enrollment Transportation Assistance
The transportation reimbursement for the 2021-2022 school year for qualifying open enrolled families is $643.Transportation assistance is only available to families who open enroll between contiguous districts. The cost of transportation reimbursement incurred by the resident district should be deducted from the tuition sent to the receiving district. If the application for transportation assistance is filed after the beginning of the school year, the cost of providing the transportation should be pro-rated. If a parent/guardian qualifies for school transportation assistance, the resident district has the authority to determine how the transportation assistance will be provided. The type of transportation assistance provided by the district is not a determination of the parent/guardian.
The resident district may meet its statutory obligation in one of three ways:
- Provide transportation for the pupil(s) to a stop on the bus line of the receiving district.
- Allow the receiving district to enter the resident district to pick up the pupil(s) if the receiving district requests this arrangement. If either the sending or receiving district does not approve the arrangement, the resident district is still obligated to provide transportation assistance.
- The resident district may provide a parent/guardian with a cash reimbursement of $643 per child each year for up to four children in a family. The maximum number of children can include only one secondary (9-12) child and up to three elementary (K-8) children (281 IAC 17.9).
Income guidelines can be found in the Open Enrollment Handbook on the Iowa Department of Education website.
If you need additional information on transportation assistance, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.
For additional information on open enrollment, please contact Sara Nickel at sara.nickel@iowa.gov or 515-971-7558.
Entry-Level Driver Training (ELDT) Coming Your Way
The new Federally mandated Entry-Level Driver Training (ELDT) program began on February 7, 2022. Originally scheduled to begin on this date in 2020, it was delayed for two years. This new training requirement will set the baseline training standards for any CDL driver applying to:
- Obtain a Class A or Class B CDL for the first time;
- Upgrade an existing Class B CDL to a Class A CDL; or
- Obtain a school bus (S), passenger (P) or hazardous materials (H) endorsement for the first time.
The actual training will include both theory (knowledge) and behind the wheel (BTW) training, and must be completed using a trainer on the Training Provider Registry (TPR). Full and complete information on the ELDT can be found on the Federal Motor Carrier Safety Administration website. This 32-minute video was produced last spring for local regional meetings in Iowa and also helps to explain the process and procedures.
If you need additional information or have any questions, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.
Property Taxes and Utility Excise Replacement Tax
Many districts have miscoded their Utility property taxes to the Utility Excise Replacement tax. There is a difference in the type of taxes – the former is a property tax and the latter is not a property tax. Federal reporting and the districts’ own budget process are affected by related coding choices.
Gas and Electric or Utility Replacement or Excise Tax (IC 437A) - Source 1171 (Current) Utility (not gas and electric) or Delinquent Utility - Source 111x
To assist districts, the FY22 Utility Excise Replacement Taxes have been added to the Iowa Department of Education (Department) website. Go to Certified Annual Reports - see the category "Data Used to File FY22 CAR" and look for the document: 2021-2022 Utility Replacement Tax Payments. Only utility items labeled "Gas and Electric" or "Utility Replacement" or "Excise Tax" should be coded as Utility Excise Replacement Taxes, Source 1171. Items labeled "Utilities" or "Current/Delinquent Utilities" are coded as regular property tax, Source 1110 (1111).
There is also a document on the Uniform Financial Accounting webpage named Property Taxes - Types and Coding that has helpful information on how to code the different types of taxes. In addition, the School Resources webpage on the Department of Management's website has a document named Outstanding Property Tax Levies and Maximum Levy Limits FY2022 which includes the estimates for FY22. FY23 estimates will be posted this summer and the district should check those estimated amounts to assist with FY23 coding.
If you have any coding questions, please contact Janice Evans at janice.evans@iowa.gov or 515-281-4740, or Denise Ragias at denise.ragias@iowa.gov or 515 313-5942.
Statewide Voluntary Preschool Program Funds
School districts should communicate regularly with community partners to share guidance based on statute and administrative rules regarding use of Statewide Voluntary Preschool Program (SWVPP) funds. If documentation of SWVPP expenditures is not currently included in a district's community partner agreement, it is recommended to add related documentation as a contractual agreement. The frequency of review for each agreement, recommended, at minimum, to be annually, should also be detailed within each agreement. The local agreement should also clearly indicate the documentation necessary to demonstrate, for auditing purposes, that SWVPP funds have been expended for appropriate uses, the frequency that such documentation must be provided to the district, and potential implications if the terms for providing documentation are not addressed.
By statute, the district must flow SWVPP funds to its community partners; however, if a community partner does not expend the full amount allocated, the remaining unexpended funds for a given fiscal year must be returned to the district at the close of the given fiscal year (281 IAC 98.13(2)(b)-(c)). The district could also require the return of any funds that do not have the documentation necessary to show that the funds were used appropriately.
For more information, review the SWVPP Finance FAQ.
Medicaid - Federal Share Enhanced Rate Continues until June 30
CARES Act funding included an increase of 6.2 percent in the federal share of state Medicaid programs starting January 2020 and continuing through June 30, 2022, and possibly longer. On October 1, 2021, the federal share, without the additional COVID-19 dollars, increased from 61.75 percent to 62.14 percent. Claims paid July 2020-September 2020 had a federal share of 67.95 percent and a state share of 31.05 percent. For claims paid October 1, 2021 through June 30, 2022, the federal share is 68.34 percent and the state share is 31.66 percent. Additional information related to the continuation of the increased federal share beyond June 30, 2022 will be shared by the Department through the School Business Alert.
If you have further questions or need additional clarification, please contact Jim Donoghue at 515-281-8505, 515-326-1032, or at jim.donoghue@iowa.gov.
Reminder: Complete and Return Business Associate Agreement
Business Associate Agreements (BAA) between the Department of Education and each LEA or AEA enrolled Medicaid provider were sent out January 20 to be completed, signed, and returned. These agreements are required by Iowa DHS and were a result of the Department’s work with Iowa DHS regarding DHS releasing Medicaid eligibility information for IEP/IFSP cases. If you have not yet done so, please complete the form, electronically sign, date, and submit the form.
If you have further questions regarding the BAA, please contact Jim Donoghue at 515-281-8505, 515-326-1032, or at jim.donoghue@iowa.gov.
Medicaid Exclusion/Suspension Verification Reports Webinar
Iowa Medicaid school-based providers must comply with checking two sources each month to capture employee exclusions and reinstatements: the federal list provided on the HHS-OIG website and the state’s list, which is found on the Iowa Medicaid Program Integrity website. A brief webinar explaining the expectation and demonstrating the process will be posted this month on the Department’s website Medicaid page. An improved documentation template has been posted on the Department’s website; however, you can continue to use the original one.
For any questions or assistance checking the Exclusions database or Suspension list, please contact Jim Donoghue at 515-281-8505, 515-326-1032, or at jim.donoghue@iowa.gov.
ISASP Testing Protocols and Administering to Home School Students
As districts are preparing for the upcoming Iowa Statewide Assessment of Student Progress (ISASP) testing window, please be sure that you have discussed the testing protocols and security guidance provided by the publisher. This discussion should include not only building level administrators and staff who will be included in the assessment process, but also staff who may be working with home school families to complete the assessment. Please remember the ISASP is not to be sent home for completion by students outside of the school building, the area education agency (AEA), or other location designated for testing and is to be supervised by district or AEA personnel who have completed the required training modules for those administering the assessment.
Individuals or districts with questions are welcome to contact Buffy Campbell, the Department of Education's Home Schooling (Private Instruction) contact. Depending on the nature of the inquiry, you will be referred to the best possible resource to assist you.
If you have further questions, please contact Buffy Campbell at buffy.campbell@iowa.gov or 515-954-8651.
State of Iowa Master Agreements
School districts and area education agencies may purchase goods and services through master agreements negotiated by the Iowa Department of Administrative Services (DAS). A wide variety of goods and services are available at rates that are already negotiated. Items range from copy paper to automobiles. Purchases from master agreements do not require a competitive bid process. The link to the DAS procurement website can be found here.
AEA Purchasing
AEA Purchasing is an initiative of the Iowa Association of Area Education Agencies (IAAEA) with the mission of combining the purchasing power of Iowa schools to offer aggressive pricing on materials, goods and services through a competitive bid process. Serving as a local purchasing cooperative for education, for over 20 years, AEA Purchasing has partnered with vendors from across the US – including Iowa and the Midwest – to supply schools with the products needed to operate their programs equitably, efficiently and effectively. From desks to groceries and everything in between, when a school makes a purchase using an AEA Purchasing contract, it is supporting all schools in Iowa by bringing purchase volumes up which, in turn, keeps prices low, enabling a sustainable investment to better serve Iowa students and communities. During the 2020-2021 school year, AEA purchasing contracts saved Iowa Schools approximately $9 million.
To learn more about the program's offerings and the advantages of cooperative purchasing, please contact Joni Puffett at joni@aeapurchasing.org or visit http://www.aeapurchasing.org.
School Budget Review Committee Hearing
The School Budget Review Committee (SBRC) met for a special hearing on Tuesday, January 25, 2022. The Committee reviewed informational items related to two requests for information from the December hearing: AEA follow-up related to special education balances and LEA follow-up related to updates of corrective action plans submitted due to late financial filings. The Committee approved funding for statewide voluntary preschool program (SWVPP) increased enrollment for eligible and requesting districts. The Committee also received fiscal updates from four districts that were required to appear.
Questions related to the SBRC may be directed to Kassandra Cline at kassandra.cline@iowa.gov or 515-326-2242.
NEW: “Local Government Distributions” Email List
Districts are invited to sign up for a new elist titled “Local Government Distributions”. The previous invitation to sign up for an “elist for SAVE” was sent in error and does not exist.
Directions to sign up: At the bottom of the Department of Revenue’s website (https://tax.iowa.gov), click Subscribe to Updates”. Then enter your email address and click on the “Local Government Distributions” option. If you have questions, please email barbara.lewison@iowa.gov or 515-314-5936 at the Department of Revenue.
Iowa School Business Management Academy
The Iowa School Business Management Academy will hold its Spring Academy April 20-22, 2022. Sessions for Levels I-IV will be held April 20-22; graduate level sessions will be offered April 21-22. Online registration is open.
Data for FY22 Certified Annual Financial Report
The 2021-2022 District AEA Flowthrough Amounts, 2021-2022 Sources for Local Projects and the 2021-2022 Preschool Funding (with Administrative reduction amounts) documents are available under the heading “Data Used to File FY22 CAR” on the Certified Annual Financial Reports (CAR) webpage.
For further information, please contact Denise Ragias at denise.ragias@iowa.gov or 515-313-5942.
Due Date |
What's Due |
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March 15 |
School Budget Review Committee Hearing |
March 31 |
Last date to submit LEA and AEA electronic annual audit of prior year to the Department and Auditor of State’s Office |
Bureau of School Business Operations
It is the policy of the Iowa Department of Education not to discriminate on the basis of race, creed, color, sexual orientation, gender identity, national origin, sex, disability, religion, age, political party affiliation, or actual or potential parental, family or marital status in its programs, activities, or employment practices as required by the Iowa Code sections 216.9 and 256.10(2), Titles VI and VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000d and 2000e), the Equal Pay Act of 1973 (29 U.S.C. § 206, et seq.), Title IX (Educational Amendments, 20 U.S.C.§§ 1681 – 1688), Section 504 (Rehabilitation Act of 1973, 29 U.S.C. § 794), and the Americans with Disabilities Act (42 U.S.C. § 12101, et seq.). If you have questions or complaints related to compliance with this policy by the Iowa Department of Education, please contact the legal counsel for the Iowa Department of Education, Grimes State Office Building, 400 E. 14th Street, Des Moines, IA 50319-0146, telephone number: 515-281-5295, or the Director of the Office for Civil Rights, U.S. Department of Education, Citigroup Center, 500 W. Madison Street, Suite 1475, Chicago, IL 60661-4544, telephone number: 312-730-1560, FAX number: 312-730-1576, TDD number: 877-521-2172, email: OCR.Chicago@ed.gov.
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