September 2022
Reminder: Notifying the SBRC of a Negative Unspent Balance
Districts should calculate their unspent authorized budget (UAB) at the end of each fiscal year to determine if the district ended the year with a negative unspent balance. The determination of whether or not the district ended the year with a positive or negative unspent balance is not contingent upon any anticipated award of modified supplemental amount (MSA) from the School Budget Review Committee (SBRC) (e.g., MSA related to special education deficit, excess Limited English Proficiency (LEP) instructional program costs).
Districts that ended the year with a negative unspent balance are required to notify the SBRC in writing by October 17, 2022 (289 IAC 6.5(3)). The notification requirement is satisfied through the completion of an SBRC Hearing Request form or providing an email to Kassandra Cline (see below). Please include the amount by which the district was negative within the district’s notification. Districts incurring a negative unspent balance larger than the amount of their special education deficit will be required to submit a corrective action plan to the SBRC for the December 13, 2022 hearing. Upon receipt of the notification to appear, the district will receive further exhibit guidance.
Questions regarding the SBRC may be directed to Kassandra Cline, SBRC Liaison, at kassandra.cline@iowa.gov or 515-326-2242.
Iowa Chart of Account Coding Updates
The Iowa Chart of Account Coding on the Department website is regularly updated to reflect changes necessary to meet fiscal reporting needs. The most recent update is provided below.
August 2022
Source/Project 3124
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Charter School: School Board - State Board Model or Founding Board - State Board Model Only (Aug22)
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Source/Project 4301
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Emergency Relief Program (ERP) Disaster Recovery Assistance for Commodity and Crop Producers (P.L. 117-43) (Extending Government Funding and Delivering Emergency Assistance Act)
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Source/Project 4041
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American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER III) (Health Careers Registered Apprenticeship Grant Program (IWD) (FAL/CFDA 84.425U) (Formerly Education Jobs Fund) (FAL/CFDA 84.410) (Sep10) (Apr14) (Aug22)
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Account 200
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Non-Current Assets (Funds 01,02,08, Fiduciary & Proprietary only) (name change) (Aug22)
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Account 290
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Other Non-Current Assets
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Account 293
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Net Pension Asset (Funds 01, 02, 09, Proprietary only) (Aug22)
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If you have further questions, please contact Kathy Bowers at kathy.bowers@iowa.gov or 515-210-9674, Jina Brincks at jina.brincks@iowa.gov or 515-313-5942, or Song Luong at song.luong1@iowa.gov or 515-205-0259.
Deferred Inflow/Account Receivable
On Friday, September 2, 2022, an email was sent to 60 districts that were anticipated to have received an FY22 receivable in FY23. The accounting period in which funds are available for use (i.e., received in the district's bank account) will impact how the funds are recorded. Funds that are received after the 60-day accrual period are recorded as a receivable, account 141 and a deferred inflow, account 623 on the balance sheet.
Below is an example of how to record a receivable and deferred inflow for any revenue received after the 60-day accrual period.
FY22: Record the receivable and deferred inflow.
DR Account 141, Project XXXX
CR Account 623, Project XXXX
FY23: Upon funds being received, reverse the receivable and deferred inflow entry.
DR Account 623, Project XXXX
CR Account 141, Project XXXX
FY23: Record the revenue to the appropriate project/source.
DR Cash
CR Project/Source XXXX
If you have further questions, please contact Kathy Bowers at kathy.bowers@iowa.gov or 515-210-9674, Jina Brincks at jina.brincks@iowa.gov or 515-313-5942, or Song Luong at song.luong1@iowa.gov or 515-205-0259.
Teacher Retention Payments
Please review account codes to ensure all Teacher Retention expenditures (project 4048) are coded to the same function and program as the Teacher Retention revenue received (source 4048). If the expenditures are less than the revenue received, it is possible a refund is due to the Department as there is no carryforward provision for these funds for this purpose.
If you have further questions, please contact Kathy Bowers at kathy.bowers@iowa.gov or 515-210-9674, Jina Brincks at jina.brincks@iowa.gov or 515-313-5942, or Song Luong at song.luong1@iowa.gov or 515-205-0259.
GASB 68 Net Pension Asset
IPERS reported a net pension asset in their FY21 ACFR due to high investment returns. If your district ends with a Net Pension Asset with the GASB 68 IPERS entries, code to balance sheet account 293, Net Pension Asset (Funds 01, 02, 09, Proprietary only).
If you have further questions, please contact Kathy Bowers at kathy.bowers@iowa.gov or 515-210-9674, Jina Brincks at jina.brincks@iowa.gov or 515-313-5942, or Song Luong at song.luong1@iowa.gov or 515-205-0259.
FY23 State Payments: Statewide Voluntary Preschool Program
Iowa Code 256C.5(4) provides funding to the Department from preschool foundation aid to pay for state administration and oversight of the preschool program. This funding is critical for the ongoing implementation and monitoring of the program.
This is an on-behalf payment. The district will record the amount as preschool revenue with an equal amount recorded as a preschool expenditure. The amount is $33.17 per preschool budget enrollment. The deduction for the on-behalf payment will be spread throughout the 10 state aid payments, September through June. This is a reduction to cash flow (state aid) sent directly to the district but does not result in general fund spending authority in excess of state aid received, because it is recorded by the district as both an on-behalf revenue and expenditure. The on-behalf revenue will be recorded in source and project 3117, program 460, and the expenditure in an equal amount will be recorded in function 233X, program 460, project 3117, object 31X.
The FY23 Preschool Funding document for preschool amounts is posted to the State Payment Information for FY23 page of the Department’s website. The amount remains at the $33.17 per preschool budget enrollment.
If you have further questions, please contact Song Luong at song.luong1@iowa.gov or 515-205-0259.
Certified Annual Report, Special Education Supplement, Annual Transportation Report - Due September 15
Reminders from August 2022 School Business Alert publication:
Certified Annual Report (CAR), Special Education Supplement (SES), and Annual Transportation Report (ATR) are due September 15.
Limited English Proficient (LEP) Allowable Costs Application for MSA
The LEP Allowable Costs application, due October 17, 2022, is available on the Iowa Education Portal as an optional application. If eligible (see Line 21 of the application), districts may request a MSA from the SBRC for the costs in excess of weightings and other resources for providing its LEP program.
The LEP Allowable Costs application is populated using district data from the Certified Annual Report (FY21 and FY22 CAR), Student Reporting in Iowa (fall 2021 and spring 2022), Certified Enrollment (fall 2021), and Fall BEDS Staff (fall 2021). The application includes only those students who were served in an English Language Learner (ELL) program during the 2021-2022 school year.
Requirements for submission:
- Enter data, if applicable, in the following lines:
- Line 19: Enter revenue not captured (Enter any revenue not already reflected in the application. An example is revenue received from other districts.)
- Line 20: Enter expenditures captured in the calculation that are not eligible to include.
- Line 22: Enter the amount of MSA the district is requesting.
- Board minutes approving the request, including the amount.
- Recommend approval at the September or October board meeting.
- Upload board minutes to the application.
- If board minutes are not available prior to the October 17 due date, certify the request, complete the “File Upload Promise Date,” which is generally two business days after the board meeting at which related action will occur, and then upload board minutes by the date provided.
- Board action template: LEP Allowable Costs- The district’s administration is authorized to submit a request to the SBRC for a modified supplemental amount of $XXX due to excess costs of providing the LEP program in the prior year. Ayes: ______, Nays: ________The motion _______ by a vote of _____.
Additional note: The application will update in “real time” based on data input to the CAR once Stage 3 is completed. If you are moving between the applications, it may be necessary to refresh the LEP Allowable Costs application to ensure the most recent data is reflecting.
If you have further questions regarding the LEP Allowable Costs application, please contact Scott Dryer at 515-402-8700 or scott.dryer@iowa.gov.
School Bus Driver Authorization
The new school year brings a number of reminders in regard to school transportation.
- Within the Driver Authorization System (DAS) application, add one or more local contacts.
- Driver authorizations must be current to allow your school bus drivers to legally drive the school bus.
- Update your DAS as needed, including deleting the drivers who no longer drive for your school.
- Print a current authorization for each of your school bus drivers to carry with them when driving the bus.
Vehicle Information System Application
Contact Information
All entities utilizing the Vehicle Information System (VIS) are requested to add local contacts within the application for each of the following areas:
- Vehicle Information System (main-required)
- Transportation Director
- Lead Mechanic
- Billing/Accounts Receivable
After logging in to the VIS, the entry area for contacts is accessed through the navigation bar located at the top of the page. In the near future, the Department will be enabling enhancements, such as automated bus inspection notification emails, that will rely on the contact information provided in the system.
Required Updates
The VIS also requires regular monitoring to ensure all of your school buses are on the list and those you no longer use have been removed. School buses in this context are defined as all vehicles used to provide pupil transportation. Complete information on maintaining your VIS can be obtained by contacting Max Christensen at max.christensen@iowa.gov or 515-336-3965, or Holli Marolf at holli.marolf@iowa.gov or 515-281-5812.
Guidance, forms, links, training schedules, publications, code references, and other information pertaining to school transportation can be found on the School Transportation page of the Department’s website. If you have further questions, please contact Max or Holli.
Charter Students and Certified Enrollment
New this year! Iowa Code chapter 256E established two new charter school models: (1) School Board - State Board model and (2) Founding Board - State Board model. Hamburg Charter High School was established as a School Board - State Board model beginning with the 2022-2023 school year. This school is an attendance center of the district. Choice Charter School was established as a Founding Board - State Board charter school beginning with the 2022-2023 school year. Choice Charter is an attendance center separate from any district. Students attending either of these charter schools will be reported by the charter school and will show in the certified enrollment of the resident district.
The following Department staff can assist with questions:
Email Correspondence
It is becoming increasingly difficult to determine district names solely from email addresses. Many districts have shifted to use of abbreviated or mascot-related names, or share personnel and use the same email with both districts. Each of these, without additional identifying information, makes it difficult to determine the district from which the question pertains. When sending the Department an email, please include your school district name in your signature line or in the subject line. Including the district number is also helpful when the question is in reference to an application. Thank you for your assistance!
Watch for Upcoming PERM Audit Document Requests
Iowa Medicaid’s Payment Error Rate Measurement (PERM) project for federal FY24 will begin soon. Each state participates in this review every three years. If your district or AEA is selected, you will receive a request for documentation relating to paid Medicaid claims from a review contractor. Past practice dictates the contractor will make initial contact by reaching out to the general district phone number requesting contact information for the district person that should receive this request. Please let the switchboard operator know who should field these inquiries. After receiving the request, the district has 75 days to submit the requested documents. In the past Jim Donoghue has been able to track the requests and contact providers to assist. Please contact Jim if you receive a request for related information. Additional details may be reviewed in the information letter “IL 2369 -MC-FFS Participation in the Federal FY2024 Perm Program.”
If you have further questions, please contact Jim Donoghue at jim.donoghue@iowa.gov or 515-281-8505.
Medicaid Students Who Also Have Employer/Commercial Insurance
Please remind staff that Iowa Medicaid will bill any employer/commercial insurance that the Medicaid student holds. The IEP team or Medicaid lead for the district may not realize this and tell families that signing consent for billing Medicaid has nothing to do with their private insurance, which is not accurate. Iowa Medicaid practices “pay and chase,” meaning that after paying a claim from a district or AEA, if Iowa Medicaid identifies another insurer/ funder, they will send the paid claim information to that other funder and ask for reimbursement..
This is a required Medicaid practice. Section 1902(a)(25)(A) of the Social Security Act requires states to take all reasonable measures to ascertain the legal liability of “third parties” for health care items and services provided to Medicaid beneficiaries. As such, Iowa Medicaid Enterprise has no option but to bill third party insurers when policies exist. This is acknowledged on page 24 of the Medicaid application which reads, “You must agree to assign medical payments from a third party to the Medicaid agency for yourself and others who are eligible for Medicaid for whom you can legally assign benefits, cooperate in getting medical payments from third parties, give the Medicaid agency rights to pursue and get medical support from a spouse, and give the Medicaid agency rights to pursue and get money from other health insurance, legal settlements, or other third parties.”
If you have further questions, please contact Jim Donoghue at jim.donoghue@iowa.gov or 515-281-8505.
Due Date
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What's Due
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September 15
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Certified Annual Report (CAR), Special Education Supplement (SES), and Annual Transportation Report (ATR) Due
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September 16
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SBRC Exhibits Due for October 11 Hearing
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September 30
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Facilities, Elections & Sales Tax Data Collection Due
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October 3
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Board Resolutions for Whole Grade Share Supplemental Weighting
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October 11
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SBRC Hearing
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October 17
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Last Date to Notify the SBRC if District Incurred Negative Unspent Balance
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October 17
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SBRC Application for Modified Supplemental Amount (MSA) for Limited English Proficient Excess Costs Deadline
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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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