March 2022

Table of Contents

• Financial
• General Information
• Transportation
• Upcoming Deadlines
• Staff Contact Information
• Department of Education Resources

Financial

Special Education Excess Positive Balance Deduction from State Payment to School Districts

If you had a 2020-2021 special education excess positive balance, this amount is being deducted beginning with the March 2022 state foundation aid payment. These deductions will continue through the end of the fiscal year. Districts without an excess positive balance may also see a small change in their state aid payment (one-dollar increase or decrease) due to the March recalculation. Payment summaries can be found in the State Payment Information FY22.

If you have additional questions regarding this deduction, please contact John Parker at john.parker@iowa.gov or 515-281-8485.

School Budget Review Committee - Special Hearing Scheduled

A number of districts have inquired whether or not the School Budget Review Committee (SBRC) will hear requests for modified supplemental amount from districts electing to make $1,000 retention payments to staff not eligible for the $1,000 retention payment announced by the Governor. In an effort to consider requests within the fiscal year the costs were incurred, the SBRC will hold a special hearing on May 3, 2022.

1. The funding source of payments eligible to include in a request for modified supplemental amount only includes payments made from the unexpended, unobligated General Fund. Retention payments made with funds other than the unexpended, unobligated General Fund (i.e. ESSER, categorical funds, flexibility account) are not eligible.
2. Districts will be required to appear individually. Each request will be considered within the context of the local district.
3. In general, the required exhibits include: cover letter, board policy related to unspent balance, narrative of context/situation, reason existing sources were not used, proof of payment, board minutes authorizing the payment to staff, and board minutes authorizing the request to the SBRC.
   Be sure to use Object Code 1X9.
4. Requests may be made based on actual costs or costs that are anticipated to be paid in FY22. (If a request is approved based on an anticipated payment, the district will be required to provide additional documentation once the cost is incurred.)
5. The first step to appearing before the Committee is to complete an SBRC Hearing Request. Once received, a detailed list of exhibits will be provided.
6. The exhibit deadline is April 1, 2022; the last day to request to appear is also April 1, 2022.

If you have questions regarding this process, please contact Kassandra Cline, SBRC Liaison, at kassandra.cline@iowa.gov or 515-326-2242.

Teacher Salary Supplement Balance

HF 847 (Iowa Acts 2021) established a one year provision requiring that any unexpended, unobligated Teacher Salary Supplement (TSS) funds (Project 3204) remaining at the conclusion of FY22 that exceed five percent of the amount received for FY22 be allocated and paid to eligible employees based on their full- or part-time status (Iowa Code § 284.3A(5)). Distribution of these funds, if any, should be made to eligible individuals employed during the 2022-2023 school year. This requirement applies to both districts and area education agencies (AEAs).

This concept is not new. Iowa Administrative Code r. 281-98.24(1) has always required districts to fully expend the categorical in the year of allocation.

281 IAC 98.24(1) Appropriate use of categorical funding
Teacher salary supplement funding shall be fully expended in the fiscal year for which it is allocated; however, in the event that a small amount is remaining and it would not be cost-effective to reallocate the remainder to teachers in the fiscal year, the school district or area education agency shall carry forward the remainder and add it to the amount to be allocated to teachers in the subsequent fiscal year.

Districts and AEAs should also consider that they are under a single salary system and if the TSS balance is greater than 5%, perhaps a one-time adjustment needs to be made to the coding. Both general funds and TSS categorical funds are required to be combined to provide a single salary for which employees have contracted with the district for the total amount.

Iowa Code section 284.3A Teacher compensation — single salary system
2. a. For the school budget year beginning July 1, 2010, and each succeeding school year, school districts and area education agencies shall combine payments made to teachers under sections 257.10 and 257.37A with regular wages to create a combined salary. The teacher contract issued under section 279.13 must include the combined salary. If a school district or area education agency uses a salary schedule, a combined salary schedule shall be used for regular wages and for distribution of payments under sections 257.10 and 257.37A, incorporating the salary minimums required under a framework or comparable system approved pursuant to section 284.15. The combined salary schedule must use only the combined salary and cannot differentiate regular salaries and distribution of payments under sections 257.10 and 257.37A.

Administrative rules give deference to district methodology for the teacher salary supplement payment.

281 IAC 98.24(3) Deference.
Deference shall be given to the decisions of school districts’ boards of directors in accordance with Iowa Code section 257.10.

Required Action: Unique Entity Identifier (UEI)

The United States government is transitioning from the use of the DUNS number to a Unique Entity Identifier (UEI) as the primary means of entity identification for federal awards. UEIs are required pursuant to 2 CFR Part 25. This change is meant to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government.

The UEI will be issued through Sam.gov. Some entities may have already applied for a UEI in Sam.gov.

If you have not done so yet, please submit the UEI and other requested information to the Iowa Department of Education through this link. Additional information about this process was sent to all business managers on March 9 by Kassandra Cline.

If you have questions regarding this process, please contact Sara Gillen at sara.gillen@iowa.gov or 515-281-3002.

General Information

Special Education Reminders

Special Education Foster Care Claims

“Foster Care” is used as the title for this claim, but this could be misleading to school districts. It does not mean all students under foster care should be reported as such on a claim. This student status should only be used if all the following items are applicable:

• The student is served pursuant to an Individualized Education Program (IEP).
• Parental rights have not been terminated.
• The student's parents do not live in Iowa, or where the parents live cannot be determined after reasonable efforts to locate them.
• No Iowa school district counted the student on the special education weighted headcount in October of the current school year.

If any one of these items is not applicable, the district needs to bill the district where the parents lived on the dates served, or bill the district that counted the student on the special education count if the parents moved out of state or could not be located after due diligence. Use the Look Back Tool Application to find which district, if any, counted the student on the special education weighted headcount in October of the current school year.

Special Education Termination of Parental Rights Claims

This student status should only be used if all the following items are applicable:

• The student is served pursuant to an IEP.
• The parental rights of the student have been terminated.
• No Iowa school district counted the student on the special education weighted headcount in October of the current school year.

The district needs to bill the district where the parents lived on the dates served prior to termination of rights or bill the district that counted the student on the special education count if the parent's rights were terminated on the days served. Use the Look Back Tool Application to find which district, if any, counted the student on the special education weighted headcount in October of the current school year.

Special Education Nonpublic Claims

This student status should only be used if all the following items are applicable:

• The student is served pursuant to an IEP.
• The student is attending an accredited nonpublic school for general education services while receiving special education services from the public school district.
• The cost of providing special education services to the student exceeds the funds generated by the resident district for counting the student on its special education count (billed to the resident district if you are not the resident district) and those funds generated by your district by counting the student as nonpublic shared time on the certified enrollment (if services were provided in the public school and not at the nonpublic school location).

Special Education High-Cost Fund Claims

This student status should only be used if all the following items are applicable:

• The student is served pursuant to an IEP.
• The costs of educating the student exceed three times the state’s average per-pupil expenditure, as calculated annually by the Department of Education, plus the calculated amount of Medicaid eligible expenditures.
• The claim filed by the district or AEA does not qualify as a foster care claim, termination of rights claim, or a nonpublic claim under current Iowa law.

High-Cost Fund Claims are paid by the state from a set-aside portion of IDEA, Part B. The amount set aside might be less than the total of high-cost fund claims received. In that case, the amount paid to each district will be prorated. If a claim is filed late, funding will not be available to cover that high-cost fund claim because the available funding will already have been allocated to districts that timely filed.

Contracts and Agreements Between a District and Another Party

School districts may enter into written agreements with specified parties. Best practice would follow the guidelines noted in Iowa Code 28E, even if the agreement is not a 28E contract. All contracts and agreements obligating funds of the district must be signed by the board president. Contracts signed by other school officials may not be enforceable. It is always wise to have the district's attorney review a contract or agreement prior to signing.

If you have further questions, please contact Bill Roederer at bill.roederer@iowa.gov or 515-281-7972.

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.

Work-Based Learning Coordinator - Contracts and Coding

Work-based learning coordinators have varied roles and responsibilities from district to district.

If the position is also fulfilling a teacher function:
     *Use the appropriate 1XXX Function and Object 12X.

If the position is not also instructing students:
     *Use Function 2120 Guidance Services if using header or Function 2126 Guidance Services Placement if using detail. Use Object 12x if the work-based learning coordinator has an educational background, otherwise use Object 13x.

Questions related to account coding can be directed to Denise Ragias, denise.ragias@iowa.gov, 515-313-5942 or Janice Evans, janice.evans@iowa.gov, 515-281-4740.

For a district to be eligible to generate supplementary weighting for operational function sharing of a work-based learning coordinator, the following must apply:

1. The contract must specify a minimum of .2 FTE as a work-based learning coordinator in each shared district for a minimum .4 FTE (.2 FTE + .2 FTE) (Iowa Code § 257.11(5)).
2. A work-based learning coordinator may also be a teacher, but the position is not statutorily required to hold teacher licensure.
3. Staff that have duties as both a work-based learning coordinator and another role (i.e. teacher, counselor) will need to have the percentage of time related to both positions clearly stated on their employment contract. The contract should match the coding in Fall BEDS Staff.
4. The position must be coded in Fall BEDS Staff in the following manner:
         *Position: 633 Director/Coordinator/Department Head
         *Assignment: 50040 Work-Based Learning Coordinator

Questions related to Fall BEDS staff can be directed to Shelly Wolterman, shelly.wolterman@iowa.gov or 515-336-3859.

Transportation

Bus Evacuation Drills

All students who are transported in a school vehicle are required to be instructed in safe riding practices and must participate in emergency evacuation drills at least twice per school year, per Iowa Administrative Code 281 – 43.40. This includes all students who are transported any time during the year, which would include not only bus routes but also activity trips and field trips. The rule requires the drills to be performed once in the fall and once in the spring. Additionally, documentation of the drills must be maintained at the local level for five years and made available upon request.

If you have additional questions, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.

School Bus Driver Licensing Information

As a reminder, if a school bus driver is operating a vehicle with a capacity of 16 passengers or more, including the driver, the driver is required to have a Commercial Driver’s License (CDL). If a school bus driver is driving a vehicle with a capacity of 15 passengers or fewer, including the driver, the minimum requirement is a Chauffeur’s Class D3 license. This has been the standard requirement for years and has not changed.

If you need further clarification, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.

Use of 12-Passenger Vans for Student Transportation

In October 2019, new legislation made the use of larger vans legal in the State of Iowa by Iowa schools. The legislation allows the use of new vans up to 10-passenger and used vans up to 12-passenger (see Iowa Code section 321.373(3)). Be sure to draw the distinction between a new and a used van, dependent on passenger capacity. If your school acquires a NEW 11 or 12-passenger van, it will NOT be allowed for use for student transportation and the school bus inspector will put it out-of-service for this purpose.

Any van over 10-passenger for student transportation must be acquired in used condition. The definition of "used" is spelled out in Iowa Administrative Code 281 – 44.5(1)(b)(2) and emphasized below:

b. The manufacturer’s rated capacity of this vehicle, which shall be determined only by the original equipment manufacturer (OEM) on the date of manufacture, shall not exceed 12 persons including the driver. The capacity rating may not be changed or modified except by the original equipment manufacturer.

Secondary stage or vehicle conversion manufacturers shall not establish vehicle capacity.
(1) Vehicles with a capacity of ten or fewer passengers including the driver may be acquired new or used.
(2) Vehicles with a capacity of 11 or 12 passengers including the driver shall only be acquired used. For purposes of this sub-rule, a used vehicle is defined as a vehicle that has had a title transfer from a dealer to one or more previous retail owners.

Why must 11 or 12-passenger vans be purchased in used condition?

Federal law requires that any vehicle over 10-passenger capacity being used for student transportation must be built to yellow school bus specifications. Vans do not meet those specifications. This means that 10-passenger vans are allowed and anything larger must be a yellow school bus. However, federal vehicle regulations only apply to new vehicles. The Iowa Legislature chose to allow schools to use vans up to 12-passenger, but the only way to allow that was for the 11 and 12-passenger vans to be purchased in a used condition.

Also, when acquiring any van, be sure it was manufactured as nothing larger than 10-passenger (if buying new) or 12-passenger (when buying used). The passenger capacity is determined by the manufacturer at the time the vehicle is built. Taking seats out of a vehicle does not change the legal passenger capacity. For example, if you acquire a 15-passenger van and take the rear seat out of it to allow for only 12 passengers, legally, it's still a 15-passenger van. So, just be certain of what you are getting before adding a van to your fleet.

If you have additional questions, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.

Bus Inspection Reminders

School bus inspections are conducted twice a year at your facility. While we do remind you of upcoming inspections, the School Bus Inspection Schedules are available at any time. Please make sure to review the posted schedule and inform all necessary personnel of the inspection date. Any change of date must be arranged through the bus inspector for your region.

In addition to Department of Education (Department) inspections, school bus drivers are required to perform a pre-trip inspection prior to, and a post-trip inspection after, every trip of a school bus. Refer to Iowa Administrative Code 281 – 43.41. The twice-yearly inspections performed by the Department inspectors reveal that most vehicle deficiencies identified are related to items that should be found during the pre- and post-trip inspections performed by school bus drivers. This includes keeping the interior of the bus clean.

Pre-trip and post-trip inspections are a means of finding the day-to-day issues that happen during normal use of the school vehicles. If you have questions about the proper way to perform these daily inspections, please contact your Department inspector or our office. Sample pre-trip inspection forms are available from the Forms – Inspections page of the Department website.

If you have additional questions, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.

Upcoming Deadlines

Staff Contact Information

Bureau of School Business Operations

Department of Education Resources

• Iowa Department of Education Departmental Directory
• Iowa Department of Education Alphabetical Directory
• Iowa Department of Education Customer Service Guide
• Previous School Business Alerts

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. 14^th 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.