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Letter Head: Jack O'Connell, State Superintendent of Public Instruction, Phone number 916-319-0800

August 20, 2003

Attachment for Letter: Special Education Maintenance of Effort Requirement (MOE) (Dated 20-Aug-2003)
Special Education Accounting Issues For MOE
Transactions Between local educational agencies (LEAs)
  1. Pass-through of Apportionment (Resource 6500 Special Ed)

Revenue recognized by AU, expenditures by sub-recipient.

Original Recipient

Sub-Recipient

01-6500-0-5001-0000- 8311

N/A

Receive revenue

N/A

01-6500-0-5001-9200-7221, 2, 3

01-6500-0-5001-0000-8791, 2, 3

Transfer out apportionment

Transfer in of apportionment

N/A

01-6500-0- 5XXX-XXXX-XXXX

N/A

Expenditures for program

  1. Pass-through of All Other Resources (Federal, State, or Local)

Revenue and expenditures are those of sub-recipient.

Original Recipient

Sub-Recipient

01-3310-0-5001-0000-8287

N/A

Receipt of federal IDEA money to be passed

N/A

01-3310-0-5001-9200-7211, 2, 3

01-3310-0-5001-0000- 8181

Pass-through of resource

Receipt of resource

N/A

01-3310-0- 5XXX-XXXX-XXXX

N/A

Expenditure for program

01-7810-0-5001-0000-8587  

N/A

Receipt of state money to be passed

N/A

01-7810-0-5001-9200-7211, 2, 3

01-7810-0-5001-0000- 8590

Pass-through of resource

Receipt of resource

N/A

01-7810-0- 5XXX-XXXX-XXXX

N/A

Expenditure for program

01-9010-0-5001-0000-8697  

N/A

Receipt of local money to be passed

N/A

01-9010-0-5001-9200-7221, 2, 3

01-9010-0-5001-0000- 8699

Pass-through of resource

Receipt of resource

N/A

01-9010-0- 5XXX-XXXX-XXXX

N/A

Expenditure for program

  1. Contract for Services

Revenue and expenditures are recognized by original recipient.   

Original Recipient (claims ada)

Sub-Recipient  

01-6500-0-5001-0000- 8311

N/A

Receipt of resource revenue

N/A

01-6500-0- 5750-1110 - 5800

  01-9010-0-0000-0000-8677 (8285 federal)

Pay for services provided to recipient

Payment for providing services

N/A

01-9010-0-7110-XXXX-XXXX

N/A

Expenditure to provide the service

  1. Charging/Paying Excess Costs

Expenditures claimed by service provider. Excess payment cost is a double count of expenditures within the SELPA.

Service Provider (claims ada)

LEA paying tuition to provider

01-6500-0- 5750-1110-1100 (etc)

N/A

LEA provides instruction to severely disabled students and claims ada for these students.

N/A

01-6500-0- 5001-0000-8710

  01-6500-0-5750-9200-7142

LEA providing instruction receives tuition from LEA of residence

LEA does not claim ada but has agreed to pay excess costs to primary LEA for excess costs of services provided

N/A

01-6500-0- 5XXX-XXXX-5800

N/A

Proposed that we change object of expenditures for tuition payments to LEA outside SELPA  

N/A

Other options:


Excess costs for special education transportation provided by one entity for another:

Service Provider  

LEA paying excess cost to provider

01-7240-0- 5750-3600-2200 (etc)

N/A

LEA provides SH/OH transportation

N/A

for severely disabled students and

N/A

claims "pupils transported" for these

N/A

students.

N/A

01-7240-0- 5001-0000-8710

  01-1100-0-5750-9200-7142

LEA providing instruction receives tuition from LEA of residence

LEA uses Lottery money to pay agreed excess cost amounts to the provider of the transportation services.   They do not claim transportation costs on their TRAN because these are not their students.

N/A

01-1100-0- 5XXX-XXXX-5800

N/A

Proposed that we change object of

N/A

expenditures for tuition payments to

N/A

LEA outside SELPA  

N/A

Other options:

Other Accounting Issues for MOE
  1. Use of Goal field
Workability Program coding error
01-3405-0-3800-3110-1200 Workability I
01-3410-0-3800-2100-1300 Dept of Rehabilitation, Workability II
This entry is not correct.   If a LEA uses a Vocational Education goal, the costs will not be included in special education expenditures.   These students are special education students, not Vocational Education students, so a special ed goal should be used.

Vocational Education coding error
01-3505-0-5770-3110-1200 Carl Perkins Voc Ed grant  
This entry is not correct.   The vocational education grants and programs are for vocational education students. It may be that a class contains a student with an IEP, but the teacher funded with this money is teaching primarily vocational education students and this salary should not be coded as a special education cost but as a vocational education cost.   The teacher and the supplies are vocational education costs.

Juvenile Court/County Community School
01-6500-0-5770-1190-1100 Resource specialist works with one student in Juvenile Court School classroom
01-2400-0-3600-1000-2100 TA hired to work in Juvenile Court classroom
01-2400-0-3500-1000-1100 Teacher hired for County Community School
These lines are appropriate accounting for the Juvenile Court or County Community School programs.   It is possible that a student served in a juvenile court school has an IEP. However, expenditures of Juvenile Court/Community Day Schools apportionment should be coded to the goal (population) of Juvenile Court/Community Day School ada.   The JUV Report will not capture expenditures coded to Goal 5XXX.   If there are supplemental special education costs for the student in a JUV setting, those supplemental costs could be spent out of special education funding and be directly charged to a special education goal.   However, these are special education costs and not Juvenile Court School costs, and will not appear in the JUV report, which measures how state JUV apportionment has been spent.   
  1. Allocation of special education costs

Cost allocated per PCR

01-0000-0-0000-3120-2200 psychologist
01-0000-0-0000-2700-1300 principal
01-0000-0-0000-8100-2200 custodian
01-7230-0-0000-3600-5800 Home to School Transportation costs

Some LEAs do not initially code support expenditures to a goal, either in the budget or in the actual transactions.

01-0000-0-5001-3120-PCRA by FTE
01-0000-0-5001-2700-PCRA by FTE
01-0000-0-5001-8100-PCRA by CU
01-7230-0-5001-3600-PCRA by PT

Special education costs are allocated to the special education goal by the PCR per allocation factors at the time of the unaudited actual reporting.   These direct support costs are not captured in the comparison of unaudited actuals to next year's budget because the budget does not include PCR allocations.   However, the subsequent report, comparing two years of unaudited actual data, will include the allocated costs.

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