March 2025

Inside this issue:

• Update: HF2612 Implementation FAQs
• GASB 101 Clarification
• Paying for Special Education Director: SBRC Permission
• Special Education Excess Positive Balance Deduction from State Payment to School Districts
• Iowa Chart of Account Coding Updates
• Reminder: Coding for School Meal Accounts
• Reminder: Medicaid Coding
• Educational Savings Accounts
• Exclusion and Suspension Checks
• Bus Evacuation Drills
• Reminder: School Bus Driver Licensing Information
• Reminder: Bus Inspections
• Inspector Tip of the Month: Seatbelt Latches
• Inspector Corner: Vaping on School Buses

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

Featured

Update: HF2612 Implementation FAQs

HF2612 (Iowa Acts 2024) was enacted with a multi-year implementation process. The HF2612 Implementation FAQs, available on the Department’s HF2612 Implementation web page, has been updated. Highlights include additional information regarding the coding of special education support services funds beginning July 1, 2026 and coding flexibilities of educational and media services funding. 

Tip: Search for “03/03/2025” to easily locate all of the newly added questions and answers.

GASB 101 Clarification

The February 2025 SBA included an article titled: “GASB 101 Compensated Absences”. The article provided interpretation of GASB Statement No. 101 (GASB 101) and noted “certain salary-related payments that are directly and incrementally associated with payments for leave” and included the cost for the employer’s portion of Iowa Public Employees' Retirement System (IPERS) as an example, which was incorrect. 

GASB 101 specifies that only certain salary-related payments that are directly and incrementally associated with the leave payments (e.g., Social Security and Medicare taxes) should be included in the measurement of the liabilities.

Clarification: IPERS contributions are not an example of salary-related payments that should be accrued along with compensated absences. IPERS is a defined benefit pension which is excluded in accordance with GASB 101. 

GASB 101 Pronouncement states:

26. Salary-related payments related to defined benefit pensions or defined benefit OPEB should not be included in the measurement of liabilities for compensated absences, even if they meet the criteria in paragraph 23.

Recent Questions

Paying for Special Education Director: SBRC Permission

Question: Is paying for a special education director from special education sources only allowable if permission is granted from the School Budget Review Committee (SBRC)?

Answer: It depends.

The cost of a special education director paid from weighted special education funding generated by students on a leveled Individualized Education Program (IEP) (i.e., Level 1, Level 2, Level 3) is only allowable if permission from the SBRC is granted pursuant to Iowa Administrative Code r. 289-6.9.

The cost of a special education director may be paid from the 10% retained special education support services funds beginning July 1, 2025 without SBRC approval.

Financial

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

If a district had a 2023-2024 special education excess positive balance, this amount is being deducted beginning with the March 2025 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 FY25.

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

Coding

Iowa Chart of Account Coding Updates

The Iowa Chart of Account Coding, found on the Department's Uniform Financial Accounting web page, is regularly updated to reflect changes necessary to meet fiscal reporting needs.

February 2025

Reminder: 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
• Determining and recording bad debt
• Applying revenue to student meal debts 
• Funds donated from private sources
• Funds from the 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 10X)

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)

Determining and recording 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 10X)

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"(6). 

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 Cash (Fund 10, Account 10X)

Debit Cash (Fund 61, Account 10X)

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)

Further questions can be directed to Bobby Wilson at bobby.wilson@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.

Reminder: Medicaid Coding

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 (Fund 10, Program 2XX, Project 4634)

Credit original expenditure code (Fund 10, Program 2XX, Project 330X, Object XXX)

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

Debit Intergovernmental Receivables (Fund 10, Project 4634, Account 141) revenue retained by LEA/AEA

Debit Intergovernmental Receivables (Fund 10, Project 3321, Account 141) state share amount due to HHS

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

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 Department’s Uniform Financial Accounting web page for additional journal entry examples.

Further questions can be directed to Bobby Wilson at bobby.wilson@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 Iowa’s Students First Education Savings Account (ESA) program can be found on the Department's Students First Education Savings Accounts web page.

School-Based Medicaid

For School-Based Medicaid policy questions, contact Tashina Hornaday, Medical Policy Program Manager at Iowa Health and Human Services, at tashina.hornaday@hhs.iowa.gov or 515-201-3553.

For Medicaid procedure questions, contact Melissa Walker, Administrative Consultant of School Health at the Department of Education, at melissa.walker@iowa.gov or 515-864-6701.

Exclusion and Suspension Checks

Iowa Medicaid school-based providers are required to check two sources each month to capture employee exclusions and reinstatements: the federal list available on the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) web page and the state’s list, available on the Iowa Medicaid Program Integrity web page.

A search of these sources is to occur monthly to confirm individuals whose services are billed to Medicaid are not excluded. It is important that a district does not bill for services provided by an excluded or suspended individual.

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, pursuant to Iowa Administrative Code r. 281 – 43.26. 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.

Further questions regarding bus evacuation drills may be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.

Reminder: School Bus Driver Licensing Information

Drivers operating a school bus with a capacity of 16 passengers or more, including the driver, are required to have a Commercial Driver’s License (CDL) with the “P” (passenger) and “S” (school bus) endorsements. Drivers operating a vehicle with a capacity of 15 passengers or fewer, including the driver, as a school bus, must have at least a Class D (chauffeur) license with a “3” (passenger) endorsement. Additional information regarding CDL and Class D license requirements can be found on the Iowa Department of Transportation website.

Further questions regarding school bus driver licensing requirements may be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.

Reminder: Bus Inspections

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, per Iowa Administrative Code r. 281 – 43.27, 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. 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. Sample pre-trip inspection forms are available on the Department’s Transportation Forms web page. Questions about the proper way to perform daily inspections can be directed to the assigned Department inspector. 

Bus Inspector Contact Information:

Further questions regarding school bus inspections may also be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.

Inspector Tip of the Month: Seatbelt Latches

The Department of Education school bus inspection team has been finding seatbelt latches that are not accessible to students. As drivers, mechanics, transportation directors, and other transportation professionals clean bus interiors or repair seats or heaters, they should ensure that seatbelt latches are placed back in the intended position and not tucked beneath the seat cushion. 

Student transportation professionals should also inspect any other child safety restraint systems (CSRS) owned by the transportation provider for cleanliness and condition. The expiration date of the CSRS should also be checked. The National Highway Traffic Safety Administration (NHTSA) provides training videos that can be found on the NHTSA CSRS on School Buses Videos website.

Inspector Corner: Vaping on School Buses

The Department’s school bus inspectors have found vaping devices on Iowa school buses. According to a School Transportation News article, “Amid Youth Vaping Epidemic, Prevention Efforts Begin to Target School Buses”, published February 7, 2025, school buses represent a critical opportunity in the fight against youth vaping.

The Iowa Department of Health and Human Services provides information on vaping at the Help For Parents and Guardians website. The Centers for Disease Control and Prevention (CDC) also has information for parents, caregivers, educators, and transportation providers at the Protecting Youth From the Harms of Vaping website.

Drivers should be aware of student conduct requirements regarding the use of vaping devices and know the proper local procedure to follow if issues arise involving vaping on the school bus.

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.