Via Electronic Transmission
DATE: June 6, 2011
TO: Directors of Special Education Special Education Fiscal School Business Managers
FROM: Carol Hokenson, Manager Division of Program Finance
SUBJECT: Special Education Fiscal Clarification and Updates
Topics Index Page
FY 2010 2 Licensure – FY 2010 State Educational Record View and Submission (SERVS) Licensure Validation (SLV) Update 2 FY 2010 Special Education Aid Entitlement 3 FY 2010 Closeout of SERVS Financial/SLV/Uniform Financial and Reporting System (UFARS) 3
FY 2011 3 Licensure Validation – FY 2011 and FY 2012 3 Electronic Data Reporting System (EDRS) Federal and Individualized Education Program – Medical Assistance (IEP-MA) Coding Sheets 4
FY 2012 4 FY 2012 Special Education Excess Cost Aid Entitlement 4 SERVS Application Procedures for FY 2012 4 Licensure Verification 5 SERVS Budget 5 SERVS Financial Desk Expenditure Verification 5
Items of Clarification 6 Course Codes 640/641/642 for Professional Development 6 Requests to Determine Resident District 6 Special Education Coordinators/Due Process Facilitator – UFARS Object Code 143/EDRS Personnel Code 02 6 Tuition Billing for Summer Education in Care and Treatment Programs 7 Special Education Postsecondary Enrollment Options (PSEO) and Transition Programs 7 FY 2012 Federal Part B Section 611 and 619 Estimated Allocations 8 1 Coordinated Early Intervening Services (CEIS) FY 2012 Allocations 9 Federal Fiscal Year (FFY) 2009/State Fiscal Year (SFY 2010) Federal Funds 9 Special Education SERVS Financial Primary Contacts for FY 2012 10
This memorandum has information that can be of value to district staff who work in the areas of special education, SERVS Financial, EDRS, UFARS or Minnesota Automated Reporting Student System (MARSS). Please share this with those in your district who could benefit from the content of this memorandum.
FY 2010
Licensure – FY 2010 SLV Update
There are three phases for the Special FY 2010 Education Licensure Verification; namely,
Phase I: Districts submit licensure data to the Minnesota Department of Education (MDE). This phase has been completed. Seventy-four districts and charter schools were notified that data was either not submitted or did not upload into SLV. Phase III will address any district or charter school that did not submit licensure data through the reconciliation process.
Phase II: SLV programming validated licensure as appropriate to assignment. Sixty-two districts and charter schools were notified of licensure issues. They were encouraged to submit information related to the licensure issue to the Division of Program Finance for review and, if appropriate, correction. MDE staff will review the submitted documentation to determine if the documentation is sufficient to resolve the licensure issue. If approved, corrections to the data will be made by MDE staff.
Phase III: SLV will reconcile draws by Object Code from SERVS Financial to expenditure data submitted to SLV for selected object codes. These object codes are:
Administrators 110 Teachers 140 Coordinators* 143 Substitutes 145 Speech/Language 152, 374, 344 School Nurse 154, 375, 345 School Social Worker 156, 377 347 School Psychologist 157, 378, 348 School Counselor 165 Regional Low Incident Consultant 167 Developmentally Adaptive Physical Education (DAPE) Teacher 174 * Object Code 143 may have staff members that are not licensed by the Boards of Administration and Teaching. This object code does not have to reconcile to the penny.
Individual reports will be provided to the districts when the report becomes available. These will be distributed to the directors of Special Education and the Business Managers. There will be a time for districts and charter schools to submit corrections to the Division of Program Finance. Instructions will be provided when the reports are distributed.
2 FY 2010 Special Education Aid Entitlement
Final FY 2010, special education aid entitlement calculations including tuition appeals approved by June 3, 2011 will be reflected in the June 20, 2011, IDEAS payment. Any data and tuition appeals approved after June 3, 2011, will be reflected in future IDEAS payment as a prior year adjustment.
FY 2010 Closeout of SERVS Financial/SLV/UFARS
Once Phase III is completed and all recoveries (overpayments) are received by MDE, then the Division of Program Finance will complete the UFARS/SERVS reconciliation process. If a district has already reconciled UFARS to SERVS at the Finance Dimension and object code, then any recoveries from the SLV licensure should not negative impact the prior reconciliation since SERVS Financial will be less than UFARS.
FY 2011
FY 2011 tuition invoices will be calculated very close to July 30, 2011. This information is for information purposes only and should be used to review the accuracy of your MARSS and EDRS data. The special education aid entitlement will not be updated to IDEAs. Data used for the July tuition calculation includes:
• FY 2011 EDRS data. • FY 2010 UFARS. • FY 2011 July End of Year (EOY) Minnesota Automated Reporting Student System (MARSS) Submission. • FY 2011 Special Education Aid. • FY 2010 Excess Cost Aid. • Transportation will not be calculated. • .Extended School Year (ESY) will only be calculated for the Intermediate Districts.
The next FY 2011 special education aid entitlement calculations including tuitition adjustments will be reflected in the August 30, 2011, IDEAS payment.
Licensure Validation – FY 2011 and FY 2012
Licensure data will be validated by entering the data on EDRS. The federal data (payroll and contracted services) from FY 2009 have been forwarded to FY 2011 and FY 2012. Districts need to update these data by adding new lines for recently employed staff and deleting lines for staff no longer employed by the district or charter school.
The FY 2011 data will be used to validate the licensure information for federal expenditures for salaries reported on SERVS Financial. When your data is being finalized through the audit process, districts will need to update their SERVS Financial budget by UFARS Object Code and their licensure data on EDRS. Districts can save time by waiting for final data before updating FY 2011 EDRS licensure data. The Federal Code Sheet and code sheets for Licensed Staff Validation and Individualized Education Program – Medical Assistance (IEP-MA) and Contracted Student Placements can be found on the MDE website as indicated below:
3 EDRS Federal and IEP-MA Coding Sheets
Three federal EDRS coding sheets have been posted to MDE’s website at Program Finance > Special Education > EDRS Funding. The code sheets are for:
IEP-MA Non-Licensed Staff o Reporting staff that are not licensed by the Board of Teaching or Board of Administrators Licensed Staff Validation and IEP-MA Staff o Licensure validation for SERVS Financial and IEP-MA data. Staff licensed by the Boards of Teaching and Administration. Districts can save a great deal of time for those staff that is reported on EDRS, such as paraprofessionals, Occupational and Physical Therapist, to just change the Funding Source Code from B to 2. Contracted Student Placements
FY 2012
State special education aid entitlements including tuition adjustments will be reflected in the July 15, 2011, IDEAS payment.
FY 2012 Special Education Excess Cost Aid Entitlement
Pursuant to Minnesota Statutes Section 127A.45, a district’s estimated entitlement for special education excess cost aid equals 74 percent of the district’s entitlement for the current fiscal year. A district’s estimated aid entitlement for the current fiscal year is calculated by multiplying:
1. The percent of the state total excess cost aid that the district’s final entitlement constituted in the last year for which final data exists, in this case FY 2010, TIMES 2. The state total excess cost aid for the current fiscal year, FY 2012.
FY 2012 tuition invoices will be calculated very close to July 1, 2011, as possible using: • FY 2012 EDRS data – districts are encouraged to update the EDRS data. • FY 2010 UFARS. • FY 2011 June EOY MARSS Submission. • FY 2012 Special Education Aid. • FY 2010 Excess Cost Aid.
SERVS Application Procedures for FY 2012
The SERVS Financial Applications will be posted to the “Grants Management Section of SERVS Financial before June 7, 2011. The SERVS Financial instructions are now a separate attachment in the Grants Directory for your convenience. LEAs can submit applications for Special Education Finance Codes once they are posted. The applications for discretionary funds will be posted shortly thereafter. The application has been reduced from 32 pages to three with just a memorandum that contains the U.S. Department of Education grant number, CFDA number and relevant information to that Finance Dimension. The third page of the application has the information required to be completed. The “Program Contact” on that form needs to be the director of special education for that LEA. Once the application and budget have been approved an official approval memo will be attached to your application as a supplemental document. 4 The assurances will now be a part of the LEA accepting the special education funds; much like the districts had this past year with the Title I application procedures. The individual with signature authority will have the checkboxes to indicate the districts assurances prior to the funds becoming available for budgeting.
Licensure Verification
Local Education Agencies (LEAs) will have to update licensure data on EDRS for FY 2012 prior to submitting a SERVS Financial Budget to MDE that contains any licensure object codes (please see chart on page two for the affected object codes). Budgeted expenditures on Object Code 143 may not reconcile with staff expenditures reported on EDRS because individuals may not have the Boards of Teaching or Administration licensure; however, all special education coordinators must to be entered on EDRS. Please page six the discussion of appropriate duties of coordinators.
SERVS Budget
When the EDRS data has been updated, LEAs may then submit a budget containing the object codes noted above. The primary contact will review the licensure data on EDRS prior to approving the budget. Any budget on SERVS Financial that does not have data entered on EDRS to support licensed staff will be put into resubmit status by the primary contacts. (Please note that the primary contacts have changed and the listing is at the end of this memorandum.) Any changes or amendments to the SERVS Financial Budget that involves MDE licensed personnel will have to be verified by the primary contact to ensure that the data are correct on EDRS prior to approving the budget. Amendments may be:
•More than 10 percent changes in budget. •New Object Codes. •Changes in budget justification.
The SERVS Financial Budget will no longer require full time equivalents (FTEs) or program codes, except for Object Code 143. The justification for the licensure Object Codes should be a brief description to assure to the primary contacts that the expenditure is necessary, reasonable and essential. The FTE, expenditure and licensure data will come from EDRS. All other Object Codes in the 100 series will need to have the estimated FTEs, days or hours that are anticipated for services included in the SERVS budget.
Starting in FY 2012, the primary contact will be able to approve the budget to be “Funded and Active” so the delay between submission and funds being available to the LEA should be minimized.
Just as a reminder, the LEA should never reduce a budget amount for an object code below the amount already drawn. This has been a major problem in FY 2011 with the correction and revision process. If the budget is submitted with less in the budget for that object code than has been drawn, the entire budget will be in error and no funds may be drawn, even at the Course Code/Finance Dimension level.
SERVS Financial Desk Expenditure Verification
Starting July 1, 2011, the Division of Program Finance will conduct desk audits to verify expenditures to match the draw requests. Submission of the “Expenditure Guidelines” or “Activity Report by Finance Code” should be sufficient for the desk verification process. Once notified, the LEA will have 10 business days to respond to provide the necessary documentation. 5 Items of Clarification
Course Codes 640/641/642 for Professional Development
Special education did not require the use of Course Codes 640/641/642 for professional development activities for FY 2010. There is a need for these data for reporting purposes; therefore, for FY 2011 all professional development activities funded with federal special education funds will require a Course Code. Course Code 640 should be used for professional development activities that are funded with current year activities. Course Code 640 = Course Code 000 Course Code 641 should be used for the professional development activities that are funded with first prior year funds. Course Code 641 = Course Code 011 Course Code 642 should be used for the professional development activities that are funded with second prior year funds. Course Code 642 = Course Code 012
Requests to Determine Resident District
The Division of Program Finance receives numerous requests to assist in determining the resident district of students. To avoid the string of e-mails asking pertinent questions, the division has created an informal questionnaire entitled “Determining Resident District” for districts to complete when making a request for assistance to determine a resident district. The form can be found on MDE website. Access the form.
Special Education Coordinators/Due Process Facilitator – UFARS Object Code 143/EDRS Personnel Code 02
During the SERVS Licensure Validation process, there has been noted, confusion about the licensure requirements of a coordinator versus an administrator (Director of Special Education.) A program coordinator is a Board of Teaching licensed special education teacher, school social worker, school psychologist or speech/language pathologist. A program coordinator assumes additional responsibilities beyond those of the classroom teacher but responsibilities may not include direct supervisor or performance evaluation of personnel (See Minnesota Statutes Section 125A.67 Subdivision 1, Subpart (b)). The program coordinator may function as a master teacher or mentor to others. Responsibilities generally relate to additional functions in facilitating special education day-to-day activities. The program coordinator may coordinate program planning, evaluation and implementation, in-service training and curriculum development and provide consultative support to teaching staff. The program coordinator may also do some of the following: advocate for students, coordinate due process procedures, attend Individualized Education Program/Individual Family Service Plan/Individual Interagency Intervention Plan (IEP/IFSP/IIIP) meetings and help to mediate differences between staff members relating to special education services as well as between parents and the district. Individuals who have these functions must have a special education teacher’s license.
For the purposes of state funding eligibility, the position of program coordinator does not include any of these supervisory functions: hires, transfers, suspensions, promotions, discharges, assignments, rewards, discipline, adjustments of grievances of other employees on behalf of the district or making recommendations in these areas. Individuals who have these functions must have a director of special education license.
6 A due process facilitator is a special education licensed teacher whose special responsibility is to design, monitor and coordinate district procedures and to assure that these procedures are in compliance with state and federal regulations with regard to special education and related services for children with disabilities.
Tuition Billing for Summer Education in Care and Treatment Programs
Residential Students placed for residential care and treatment (C & T) must be provided instruction in the summer if they are not performing at grade level (see Minn. Stat. §125A.515). The district in which the facility is located is responsible for providing this instruction and/or instruction during the regular school year. Summer instruction is not reported on MARSS unless the student has an IEP that requires extended school year (ESY); the special education services are reported as service hours. No student membership is reported. The district of residence is responsible for the costs of summer programming provided in residential care and treatment programs.
Day Treatment – Children’s Therapeutic Services and Supports (CTSS) Responsibility for instruction for students placed for day treatment is described in MARSS Procedure 27 – the district in which the student is living is responsible for providing instruction during the core school year. Students can receive instruction at an Area Learning Center (ALC); but while they are placed for treatment their options are limited to those described in the C & T statute; only seat-based student membership is generated. Students placed for day treatment during the summer are not subject to any statute-defined instructional requirements; hence no resident district should be responsible for educational services/costs from a day treatment program’s summer service. The district in which the student is living would be responsible to provide required ESY services.
Special Education – Postsecondary Enrollment Options (PSEO) and Transition Programs
Special Education students are eligible to participate in the PSEO program available to all 11th and 12th grade students in Minnesota under Minnesota Statutes Section 124D.09. View statute. Eligibility requirements for acceptance into the program are determined by the postsecondary institution. Special Education students who meet the eligibility requirements and have been accepted into a PSEO program are held to the same participation limitations as a non Special Education student as articulated in Minnesota Statutes 124D.09, subdivision 8:
Subd. 8. Limit on participation. A pupil who first enrolls in grade 11 may not enroll in postsecondary courses under this section for secondary credit for more than the equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in postsecondary courses under this section for secondary credit for more than the equivalent of one academic year. If a pupil in grade 11 or 12 first enrolls in a postsecondary course for secondary credit during the school year, the time of participation shall be reduced proportionately.
A student, including a Special Education student who is in an Individual Education Program (IEP), who has finished the 12th grade but has not completed all requirements to graduate and has not received a diploma, may be able to access PSEO through the Graduation Incentives Program outlined in Minnesota Statutes Section 124D.068. View statute. If the student has already participated in PSEO prior to completing their 12th grade year, they are not able to access any additional time. They cannot extend their eligibility beyond what is articulated in Minnesota Statutes Section 124D.09, subdivision 8 listed
7 above. If a Special Education student with an IEP has not participated in PSEO through the 12th grade and is now in an educational program that serves students ages 18-21 he or she can access PSEO for up to one academic year if they have not yet received a diploma and have not completed all the requirements of their IEP. Minnesota Statutes Section 124D.09, subdivision 8 states: A pupil who has completed course requirements for graduation but who has not received a diploma may participate in the program under this section.
Additionally, please note that according to Minnesota Statutes Section 124D.09, subdivision 9, postsecondary institutions may not enroll students in courses that are not college level under PSEO. An institution must not enroll secondary pupils, for postsecondary enrollment options purposes, in remedial, developmental, or other courses that are not college level. Once a pupil has been enrolled in a postsecondary course under this section, the pupil shall not be displaced by another student.
If a student’s IEP includes postsecondary coursework beyond what is allowable through the PSEO program, the district could enter into a contract with the postsecondary institution consistent with the student’s IEP. School districts may enter into contracts with postsecondary institutions to provide college-level coursework to its Special Education students with an IEP. A district can enter into a contract for transition services with institutions of higher education. Because the student is not receiving special education and related services in a K-12 public school facility it is considered a contracted student placement as defined by Minnesota Statutes Section 125A.76, subdivision 2 (3). View statute. A district may contract for individual student’s special education services with private and public agencies, (not another Minnesota School District). The district will report students who are placed outside the district facilities during the regular or extended school year as Service Code C on the Electronic Data Reporting System (EDRS). Districts are to enter only the costs of education on EDRS and do not deduct the general education revenue as EDRS perform that calculation. The district will receive 52 percent over and above the general education revenue in state special education regular program aid. The district must be sure that the student is entered appropriately on MARSS.
For the 2011-2012 academic year and beyond, Special Education students who participate in the PSEO program will be limited to the statutory participation limits explained here. This does not prevent the student from accessing postsecondary coursework through the student placement contract explained above.
If you have any questions relating to PSEO, please contact Jessica Espinosa at 651-582-8512 or [email protected] . If you have any questions concerning contracted student placements, please contact George Holt at 651-582-8889 or [email protected].
FY 2012 Federal Part B Section 611 and 619 Estimated Allocations
At the time of this writing, the final allocations from the United States Department of Education (DOE) have not been received for Sections 611 or 619 of Part B, Individuals with Disabilities Education Act (IDEA). Once the grant award has been received from DOE, the estimated allocations to the LEAs will be processed as soon as possible. The grant award documents are usually received on or near the start of the state fiscal year. The estimated allocations will be posted to MDE’s website at Program Finance/Special Education/Allocations.
Coordinated Early Intervening Services (CEIS) FY 2012 Allocations 8 The Division of Program Finance recently learned that Section 619 (Finance 420) funds may be included in the calculation of the 15 percent set-aside for CEIS activities. Though Section 619 funds will be used in the calculation, all the funds devoted to CEIS will come from Section 611 (Finance 419). This clarification will result in more funds available to use for CEIS activities.
The estimated allocation for CEIS activities will be made to SERVS Financial in October 2011. LEAs are reminded that these are subject to change when the final allocations are calculated based upon the December 1, 2011, child count and enrollment/poverty updates for FY 2012. The final allocations are anticipated to be calculated in February 2012. The Special Education Funding and Data workgroup will not make the adjustments for CEIS allocations after October 1, 2011 until Section 611 and 619 funds are finalized.
Students who are receiving direct (fact-to-face) CEIS services of a teacher, paraprofessional or other individual must be reported on MARSS with a Special Education Evaluation Status (SEES) of 08 – receiving CEIS Services. Students who participate in the Alternative Delivery of Specialized Instruction Services (ADSIS) (Minnesota Statutes Section 125A.50) are not reported with SEES 08 as there is a different format to report those students to MDE. Alternative Delivery is not CEIS and CEIS is not Alternative Delivery. The United States Office of Special Education does review and question these data so it is very important that all students receiving direct CEIS services are correctly reported on MARSS.
Federal Fiscal Year (FFY) 2009/State Fiscal Year (SFY 2010) Federal Funds Just a reminder to LEAs that the SFY 2010 funds must be obligated by September 30, 2011, and expended before mid December. The last date of the SFY 2010 fund draws has not been confirmed. LEAs are reminded to balance forward any FY 2011 unbudgeted funds to FY 2012 as soon as budgets and expenditures are finalized. Please refer to the chart below to determine when federal funds are obligated.
Obligation as Defined According To (34 Code of Federal Regulations (C.F.R.) § 76.707) If the obligation is for The obligation is made (a) Acquisition of supplies, materials, On the date on which the state or subgrantee makes a equipment. binding written commitment to acquire the property. (b) Personal services by an employee of the state When the services are performed. or sub grantee. (c) Services by a contractor who is not an On the date on which the state or subgrantee makes a employee of the state or sub grantee. binding written commitment to obtain the services. (d) Public utility services such as When the State or subgrantee receives the services. Electronic/Communication Services. (e) Travel. When the travel is taken. (f) Rent. When the state or sub grantee uses the property.
Special Education SERVS Financial Primary Contacts for FY 2012
Effective July 1, 2011 for FY 2012 9 UFARS MDE Finance TITLE CONTACT MDE CONTACT EMAIL Code NAME
Formula - 419 - IDEA Special Education Federal Part B MIKE [email protected] 419 Section 611 Regular Allocation MATLOCK s Formula - 420 - IDEA Special Education Federal Part B JEANNE 420 Section 619 Preschool Regular Allocation KRILE [email protected] MICHELLE 421 Formula - 421 - Regional Low Incidence Discretionary JONES [email protected] MICHELLE 422 Formula - 422 - Part C IEIC, Ages 0-2, Phase 2 Materials JONES [email protected] Formula - 425 - IDEA Special Education Federal Part B MIKE [email protected] 425 Section 611 CEIS Allocation MATLOCK s MICHELLE 423 Formula – 423 – IDEA Regional Part C JONES [email protected] Formula – 430 IDEA Part B, Section 619 Discretionary MICHELLE 430 Regional CSPD JONES [email protected] Formula - 432 - Regional Low Incidence CSPD MICHELLE 432 Discretionary JONES [email protected] Formula - 435 - Continuous Improvement Monitoring MICHELLE 435 Process (CIMP) 3-21 JONES [email protected] Formula - 437 - Section 619 Preschool Incentive Personnel MICHELLE 437 Development JONES [email protected] Formula - 440 - Regional Low Incidence Discretionary MICHELLE 440 Professional Development EC Autism Part B 619 (3-5) JONES [email protected] Formula - 480 - Special Education Federal Part B Section MIKE 480 611 Targeted Stimulus Allocation MATLOCK [email protected] Formula - 481 - IDEA Special Education Federal Part B MIKE 481 Section 611 CEIS Targeted Stimulus Allocation MATLOCK [email protected] Formula - 483 - IDEA Special Education Federal Part B Section 611 School-wide Title I - Targeted Stimulus MIKE 483 Allocation MATLOCK [email protected] Formula - 484 - IDEA Special Education Federal Part B JEANNE 484 Section 619 Preschool Targeted Stimulus Allocation KRILE [email protected] Formula - 486 - Part C ARRA Federal Stimulus Funds MICHELLE 486 Opportunity JONES [email protected] MICHELLE 487 Formula – 487 – Part C Targeted Stimulus Allocation JONES [email protected]
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