March 2024

Inside this issue:

• School Safety Improvement Fund Account Coding
• Special Education Excess Positive Balance Deduction from State Payment to School Districts
• Open Enrollment Transportation Assistance
• Iowa Chart of Account Coding Updates
• Friendly Reminders: Coding for School Meal Accounts
• Medicaid Coding Reminders
• Educational Savings Accounts
• Statewide IPTA Regional Meetings
• 60th Annual IPTA Conference | July 15-17
• Bus Evacuation Drills
• Reminder: School Bus Driver Licensing Information
• Bus Inspection Reminders
• Upcoming: IASBO Presentation | March 7
• Quarter 3 Claims and Remaining Title Program Balances | April 30

Department of Education Resources

• Iowa Department of Education Departmental Directory
• Iowa Department of Education Alphabetical Directory
• Iowa Department of Education Customer Service Guide
• Previous Editions of the School Business Alert Newsletter

Upcoming Deadlines

Staff Contact Information

Recent Question

School Safety Improvement Fund Account Coding

Question: Must the School Safety Improvement Fund revenue be deposited into the General Fund?

Answer: No, the School Safety Improvement Fund revenue may be deposited directly into the fund that incurred the expenditures for which the reimbursement was received. Code revenue to Source/Project 4034 and expenditures to Project 4034 with the applicable facility code.

For additional information, please visit the Governor’s School Safety Initiative webpage on the Department’s website. 

For questions regarding account coding, 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.

Financial

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

If a district had a 2022-2023 special education excess positive balance, this amount is being deducted beginning with the March 2024 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 FY24.

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

Open Enrollment Transportation Assistance

The transportation reimbursement amount for the 2023-2024 school year for qualifying open enrolled families is $669 per student. 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:

1. Provide transportation for the pupil(s) to a stop on the bus line of the receiving district.
2. 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.
3. The resident district may provide a parent/guardian with a cash reimbursement of $669 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).

Additional information is available on the Department’s website, including the Open Enrollment Handbook and Open Enrollment Transportation Assistance handout for income guidelines.

For 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 Stacie Stokes at stacie.stokes@iowa.gov or 515-210-5288.

Coding

Iowa Chart of Account Coding Updates

The Iowa Chart of Account Coding, found on the Uniform Financial Accounting page of the Department website, is regularly updated to reflect changes necessary to meet fiscal reporting needs. The most recent update is provided below.

February 2024

Friendly Reminders: Coding for School Meal Accounts

The Department has been asked a variety of account coding questions relating to school meal accounts in the Nutrition Fund. This article is organized into multiple subtopics as provided below.

• Deposits made to a school meal account
• How to determine and record bad debt 
• Applying revenue to student meal debts 
• Funds donated from private sources
• Funds from a General Fund flexibility account transfer

Deposits made to a school meal account

Deposits made into a school meal account are considered unearned revenues and must be recorded in the Nutrition Fund balance sheet Account 483 - Unearned Revenues. These monies are properly accounted for as a liability (e.g., in the event refunds are requested when a student/adult leaves the district). As students/adults make purchases using funds from their meal account, the purchase becomes a sale with Source 16XX. Districts should record student/adult sales monthly using reports or data from the Point of Sale (POS) system.

Deposit payments made into individual/family food service account

Debit Cash (Fund 61, Account 1XX)

Credit Unearned Revenues (Fund 61, Account 483)

Record student/adult purchases as meal sales monthly using data from POS system

Debit Unearned Revenues (Fund 61, Account 483)

Credit Meal Sale (Fund 61, Source 16XX)

How to determine and record bad debt 

At the end of a school year, districts should make an adjusting journal entry to account for accounts receivable (Account 153) in the Nutrition Fund using reports or data from the POS system.

Bad debts are unpaid meal accounts which are no longer collectible or are too costly to be collected. Review the district’s board policy which defines parameters for determining when a liability is uncollectible and should be considered a bad debt. Once a debt is determined to be a bad debt, the district may set up an estimated bad debt account for the amount deemed uncollectible in the Nutrition Fund balance sheet Account 154, allowance for uncollectible accounts receivable. Balance sheet Account 154 is a contra asset account that reduces the amount of the gross accounts receivable amount on the district's balance sheet.

Record estimated bad debt for uncollectible meal account

Debit Bad Debt Expense (Fund 61, Function 3110, Object 899)

Credit Allowance for Uncollectible Accounts Receivable (Fund 61, Account 154)

Applying revenue to student meal debts

1. Funds donated from private sources

Iowa Code subsection 283A.11(6) authorizes districts to deposit money received from private sources for purposes of paying student meal debt in the Nutrition Fund.

Deposit donated funds from private sources into the Nutrition Fund

Debit Cash (Fund 61, Account 1XX)

Credit Donation for Negative Nutrition Account (Fund 61, Source 1922)

Pay student meal debt with donated funds from private sources

If the debt is already included in the estimated bad debt (Account 154) -

Debit Allowance for Uncollectible Accounts Receivable (Fund 61, Account 154)

Credit Other Accounts Receivable (Fund 61, Account 153)

*Districts may use a district-assigned project code to track the donation.

OR

If the debt has not been included in the estimated bad debt (Account 154) -

Debit Bad Debt Expense (Fund 61, Function 3110, Object 899)

Credit Other Accounts Receivable (Fund 61, Account 153)

*Districts may use a district-assigned project code to track the donation.

2. Funds from the General Fund flexibility account

Districts may also deposit funds from the General Fund flexibility account into the unpaid student meals account per Iowa Code subsection 298A.2(2)"c". 

Moneys deposited in the flexibility account may be used by the school district during a budget year beginning on or after the calendar years in which the moneys were transferred to the flexibility account for any of the following:

(6) For deposit in the unpaid student meals account to be used for purposes of paying student meal debt accrued by individual students in accordance with section 283A.11, subsection 6. 

Transfer funds from the General Fund flexibility account into the Nutrition Fund

Debit Flexibility Account (Fund 10, Function 6261, Project 31XX, Object 910)

Credit Interfund Transfer from General Fund (Fund 61, Project 1922, Source 5210)

Pay student meal debt with funds from the General Fund flexibility account

If the debt is already included in the estimated bad debt (Account 154) -

Debit Allowance for Uncollectible Accounts Receivable (Fund 61, Account 154)

Credit Other Accounts Receivable (Fund 61, Account 153)

OR

If the debt has not been included in the estimated bad debt (Account 154) -

Debit Bad Debt Expense (Fund 61, Function 3110, Object 899)

Credit Other Accounts Receivable (Fund 61, Account 153)

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.

Medicaid Coding Reminders

Medicaid account coding is performed differently from the way most other account coding is completed by Area Education Agencies (AEAs) and Local Education Agencies (LEAs). Since the amount of reimbursement an AEA or LEA will receive from Medicaid for an expenditure is not known at the time the expenditure is incurred, a Medicaid expenditure is initially coded to the appropriate program and/or program levels of the students for whom the expenditure was incurred. When an LEA or AEA receives the Medicaid claim reimbursement, only a portion of the reimbursement is retained by the LEA/AEA. The state share portion of the reimbursement is paid to the Iowa Department of Health and Human Services (HHS).

Recording Medicaid reimbursement received

Option 1

Record amounts received with the portion due to HHS in the payable account separately

Debit Cash (Fund 10, Account 10X)

Credit Intergovernmental Payables (Fund 10, Program 2XX, Project 3321, Account 410) state share amount due to HHS

Credit Medical Assistance Program-Medicaid (Fund 10, Program 2XX, Project 4634, Source 4634) revenue retained by LEA/AEA

Record the amount repaid to HHS

Debit Intergovernmental Payables (Fund 10, Program 2XX, Project 3321, Account 410)

Credit Cash (Fund 10, Account 10X)

Option 2

Record amounts received including the portion due to HHS together with Medicaid revenue

Debit Cash (Fund 10, Account 10X)

Credit Medical Assistance Program-Medicaid (Fund 10, Program 2XX, Project 4634, Source 4634)

Reclassify amounts due to HHS in payable account (when HHS invoice is available at the end of the month)

Debit Medical Assistance Program-Medicaid (Fund 10, Program 2XX, Project 4634, Source 4634) 

Credit Intergovernmental Payables (Fund 10, Program 2XX, Project 3321, Account 410) 

Record the amount repaid to HHS

Debit Intergovernmental Payables (Fund 10, Program 2XX, Project 3321, Account 410)

Credit Cash (Fund 10, Account 10X)

Reclassify the expenditures originally coded to special education project codes

Debit new expenditure code using (Fund 10, Program 2XX, Project 4634)

Credit original expenditure code 

Record receivable if Medicaid not received by June 30 (estimate if amount is unknown)

Debit Intergovernmental Receivables (Fund 10, Project 4634, Account 141) for retained amount

Debit Intergovernmental Receivables (Fund 10, Project 3321, Account 141) for state portion

Credit Intergovernmental Payables (Fund 10, Project 3321, Account 410) for state portion

Credit Medicaid revenue (Fund 10, Project 4634, Source 4634) if received within 60 days after year end

OR

Credit Deferred Inflow (Fund 10, Project 4634, Account 623) if received more than 60 days after year end

Please see the “UFA Journal Entries” spreadsheet on the Uniform Financial Accounting page.

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.

General Information

Educational Savings Accounts

Information regarding the Students First Education Savings Account (ESA) program can be found here.

Transportation

Statewide IPTA Regional Meetings

The Iowa Pupil Transportation Association (IPTA) regional meetings will be held during the first three weeks of April. Meeting locations this year include: Cedar Rapids, Maquoketa, Fairfield, Mason City, Spencer, Fort Dodge, Denison, Red Oak, and Johnston. The IPTA has secured a number of speakers covering a variety of topics specific to school transportation personnel such as active shooter awareness, use of fully illuminated stoparms for improving school bus visibility, and learning about advanced strategies for student and driver protections. 

Pre-registration is preferred but not required; registration information can be found here. 

For additional information, go to the IPTA webpage or contact Chris Darling, Executive Director of the IPTA, at 2015ipta@gmail.com or 712-830-3242.

60th Annual IPTA Conference | July 15-17

The 60th annual IPTA Annual Conference will be held July 15-17 at the Airport Holiday Inn in Des Moines. The IPTA has an outstanding lineup of presenters, both local and national, who will provide valuable transportation-related information on new products, laws, rules, regulations, and best practices. The Tuesday trade show is the largest school transportation trade show in the State of Iowa. 

Registration information can be found here.

For additional information, go to the IPTA webpage or contact Chris Darling, Executive Director of the IPTA, at 2015ipta@gmail.com or 712-830-3242.

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, pursuant to Iowa Administrative Code 281 – 43.40. This includes all students who are transported any time during the year, which would include not only daily 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 questions, please contact Max Christensen at max.christensen@iowa.gov or 515-336-3965.

Reminder: School Bus Driver Licensing Information

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.

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

Bus Inspection Reminders

School bus inspections are conducted twice per year at each facility. While the Department does remind entities 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 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. Questions about the proper way to perform daily inspections can be directed to the assigned Department inspector. Sample pre-trip inspection forms are available on the Forms – Inspections page of the Department website.

Bus Inspector Contact Information:

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

Federal Programs

Upcoming: IASBO Presentation | March 7

The Federal Programs Bureau will present a session regarding the claims and reimbursement process on March 7, 2024 during the Iowa Association of School Business Officials (IASBO) Spring Conference. 

Quarter 3 Claims and Remaining Title Program Balances | April 30

Each claim period, a year-to-date (YTD) general ledger (GL) is required to be uploaded in CASA for each Title program. The quarter 3 YTD GL should reflect dates from 7/1/23 to 3/31/24. The quarter 3 claims window is from 4/1/24 to 4/30/24.

Best Practice: By the end of quarter 3, approximately half of the current year allocation should be spent. 

For questions, please contact Tim Glenn, Administrative Consultant, at tim.glenn@iowa.gov or 515-205-7650.

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.