Topics 2 Monthly Payment Prior Year Correction Attendance - - PowerPoint PPT Presentation

PRESENTED BY:

DAVID TRAMEL~ COORDINATOR SCHOOL FINANCIAL & ADMINISTRATIVE SERVICES TAMMY LEHMEN – DIRECTOR, SCHOOL FINANCE

Missouri Department

• f Elementary and Secondary Education

October 2017

Topics

 Monthly Payment  Prior Year Correction  Attendance Reporting  Calendar Options  Inclement Weather  Minimum Salary Requirements  Non-Certificated Educators

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Number of K-8 Districts

 There are 70 K-8 districts.

 ADA of those districts range from:

 32 to 657  Of those 70 districts:

 35 are Small School Hold Harmless.  1 is Large School Hold Harmless.  62 receive the Small Schools Grant.

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Classroom Trust Fund

4

Classroom Trust Fund (CTF)

 The Classroom Trust Fund payment is part of the

revenue available to fund the Foundation Formula.

 Revenue code 5319.  This payment represents the Gaming monies portion of

the Foundation Formula payment.

 The rest of the Foundation Formula is funded with State

General Revenue funds.

 Revenue code 5311.  The Classroom Trust Fund payment is paid on first

preceding year ADA.

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Classroom Trust Fund

 Shall be spent at discretion of local school district

 For the 2010-11 school year and for each subsequent year, all

proceeds a school district receives from the classroom trust fund in excess of the amount the district received from the classroom trust fund in the 2009-10 school year shall be placed to the credit of the district's teachers' and incidental funds.

 May be used for but not limited too:

 Teacher recruitment, retention, salaries  School construction, renovation, leasing  Technology, textbooks, instructional materials  School safety  Supplying additional funding for required programs

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Classroom Trust Fund

2015-2016 June 2015-2016 CTF was $389.1363 per 2014-2015 ADA 2016-17 June 2016-17 CTF was $404.9466 per 2015-16 ADA Budgeting for 2017-18 Appropriation $351,663,349 Estimate of the 2016-17 ADA is 850,000 Estimate of $413 per 2016-17 ADA

The state will only distribute funds that are actually collected into the Classroom Trust Fund

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Proposition C

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Proposition C

A $.01 state-wide general sales tax for education with a corresponding property tax reduction for school districts. Prop C sales tax revenue is collected locally, transmitted to the state and then passed on to school districts based on an amount per prior year Weighted Average Daily Attendance (WADA) amount.

Proposition C

2015-2016 June 2015-16 Proposition C - $947.63 per 2015-16 WADA 2016-17 June 2016-17 Proposition C - $979.04 per 2015-16 WADA Budgeting for 2017-18 Appropriation is $901,600,000 Estimate of the 2016-17 WADA is 912,000 Estimate of $988 per 2016-17 WADA

The state can only distribute what is appropriated for Proposition C.

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Foundation Formula

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Foundation Formula

 Appropriation for 2017-18 is $3,392,907,149  SAT to be used in the first payments of the year  Factors considered in the SAT estimate

 Change in thresholds  Unaccredited and Provisionally Accredited districts

able to include PK students in ADA for funding

 Summer School ADA

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State Adequacy Target (SAT)

Fiscal Years Calculated SAT Used SAT June Proration Percentage Prior Year Correction Proration Percentage 2007 - 2009 $6,117 $6,117 100.000000% 100.000000% 2010 $6,117 $6,117 98.661002% 98.272000% 2011 $6,124 $6,124 96.979260% 96.458193% 2012 $6,131 $6,131 94.150969% 93.550547% 2013 $6,423 $6,131 92.583743% 92.387206% 2014 $6,716 $6,131 93.282523% 92.787959% 2015 $6,580 $6,131 96.869553% 96.439251% Fiscal Years Calculated SAT June Proration Adjusted SAT Prior Year Correction Adjusted SAT 2016 $6,580 $6,145.826158666 $6,121.196418367 2017 $6,241 $6,198.711938359

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State Adequacy Target (SAT)

 HB 1689 changed 163.031 RSMo, beginning with

FY16, to specify what should happen if the Foundation Formula was not fully funded.

 Any year the formula appropriation is insufficient

to fully fund the entitlement calculation DESE shall adjust the SAT to accommodate the appropriation level.

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Threshold

2015-16 Free & Reduced Lunch 41.00% Special Education (IEP) 12.60% Limited English Proficiency (LEP) 2.10% 2016-17 & 2017-18 Free & Reduced Lunch 36.12% Special Education (IEP) 12.16% Limited English Proficiency (LEP) 1.94%

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How to calculate the monthly payment and prior year corrections

Monthly Payments

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Monthly Formula Payment

 To determine the October payment amount, take

approximately 4/12ths (.33) of the State Monies (Line 17B) less the amount the district received through October .

 The above method can be used to determine the payment

amount in any month during the school year.

 If a prior year correction was processed during the month

the amount of the positive or negative prior year correction will need to be added to or subtracted from the monthly amount calculated through the above method.

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Monthly Formula Payment

October Basic Formula Apportionment = $ 3,730,470 .33 of the October Apportionment = $ 932,617 Amount paid to district July through September (taken from August transmittal sheet)

• $ 613,015

October Payment = $ 319,602 Prior Year Correction (if applicable) +/- $ 0 October Payment = $ 319,602

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Prior Year Correction

 The 2016-2017 Basic Formula Apportionment will be

recalculated at least twice during the 2017-2018 school year.

 November or December will most likely be the first time

the recalculation is completed and will reflect the largest correction.

 A second prior year correction will likely be done in May.

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Prior Year Correction

 To calculate the prior year correction, start with the June

Basic Formula Calculation page. There are two items which may need to be updated.

• Change the line 1 WADA to the greater of the 2014-2015,

2015-2016 or 2016-2017 actual WADA.

• Change the SAT to what was used in the recalculation.

 Calculation sheets are not currently available for the prior

year corrections.

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Prior Year Correction

 2016-2017 Basic Formula, Line 17B

 June 2017 Calculation

$1,036,437

 2017-2018 Recalculation

$1,068,273

 Difference/Correction

$ 31,836 Note: A district may receive a negative correction even though the district’s data did not change.

 A 6% interest penalty applies to the district’s overpayment

if the June calculation was greater than 5% of what the district should have received for 2016-2017.

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Small Schools Grant

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Small Schools Grant Payment

 To be eligible for the Small Schools Grant the

district ADA for the prior year must be less than

• r equal to 350

 $10M will be distributed to districts using an

amount per ADA to Districts with prior year ADA ≤ 350.

 $5M will be distributed to districts with tax

rates ≥ $3.43 on a tax-rate-weighted ADA basis.

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Small Schools Grant Payment

2015-2016 June 2015-16 Small Schools was:

 $10,000,000 portion - $277.2395 per ADA  $5,000,000 portion - $158.7543 per tax rate weighted ADA

2016-17 June 2016-17 Small Schools was:

 $10,000,000 portion - $277.7350 per ADA  $5,000,000 portion - $154.9317 per tax rate weighted ADA

Budgeting for 2017-18

 $10,000,000 portion - $277 per ADA  $5,000,000 portion – $154 per tax rate weighted ADA

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What is different about a K8 district’s WADA?

K8 Districts WADA

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WADA

Weighted ADA Calculation 2016-2017

• 1. a.

Regular Term ADA K-8 72.539

• 1. b.

Regular Term ADA 9-12 19.992

• 1. c.

Regular Term Total 92.531

• 2. a.

Summer Term ADA K-8 3.183

• 2. b.

Summer Term ADA 9-12

• 2. c.

Summer Term Total 3.183

• 3. a.

Total ADA K-8 (Line 1. a. + Line 2. a.) 75.722

• 3. b.

Total ADA 9-12 (Line 1. b. + Line 2. b.) 19.992

• 3. c.

Total ADA K-12 (Line 1. c. + Line 2. c.) 95.7139

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There are several unique items that apply only to K-8 districts in the Weighted ADA calculation.

WADA

4 FRL Count (Screen 15) 52 5 Threshold Percentage 41 6 Minus Total ADA (Line 3.c.) x Threshold Percentage 39.243 7 Equals Count to be weighted (Line 4 - Line 6) 12.757 8 FRL Weighted Calculation (Line 7 x 25.00%) 3.1893

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Line 3.c = Total ADA K-12 The FRL Count when reported by the high school district flows back to the K-8. So K-12 ADA can be used for weighting purposes.

9 IEP Count (Screen 11) 16 10 Threshold Percentage 12.6 11 Minus Total ADA (Line 3.a.) x Threshold Percentage 9.5409 12 Equals Count to be weighted (Line 9 - Line 11) 6.4591 13 IEP Weighted Calculation (Line 12 x 75.00%) 4.8443

Line 3.a = Total ADA K-8 IEP count remains with the high school district so K-8 ADA is used for weighting purposes.

WADA

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14 LEP Count (LEP Census) 15 Threshold Percentage 2.1 16 Minus Total ADA (Line 3.a.) x Threshold Percentage 1.5902 17 Equals Count to be weighted (Line 14 - Line 16) 18 LEP Weighted Calculation (Line 17 x 60.00%) 19 Weighted ADA (Line 3.c. + Line 8 + Line 13 + Line 18) 103.75 20 Weighed ADA (Line 19) - Summer School ADA (Line 2.c.) 100.56 21 Formula Weighted ADA (highest of 3 years of Line 20 + current Summer School ADA)

Line 3.a = Total ADA K-8 LEP count remains with the high school district so K-8 ADA is used for weighting purposes.

Information Available to Districts

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School Finance Website

 What information can be found on the School Finance

Website?

 The Monthly Finance Memo  Please read each month.  Sign up for the Finance listserv  Finance Topics and Procedures

 General Guidance

 Attendance Reporting  Certificated Salary Compliance  Inclement Weather  Local Effort  PK Eligibility for State Aid  School Calendar Requirements 30

School Finance Website

 Accounting Manual

 Missouri Financial Accounting Manual  FY 2019 Accounting Structure Changes

 Audit

 Audit Requirements

 Budgeting

 Fund Balance Analysis  School Budget  Model Budget

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School Finance Website

 Coding Procedures  Advanced Funding Accounting Procedures  Coding Salary Cost to the Capital Projects Fund  Equipment vs. Supply  General Obligation Bonds  Guaranteed Energy Savings Performance Contracts  Indirect Cost Rates  Lease Purchase  Loans  Local Match Requirements  MOHEFA Direct Deposit  Refunds and Reimbursements  Salary Coding Guidance

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School Finance Website

 Coding Procedures (continued)  Supplemental Educational Services (SES) Fiscal Guidance  Technology Coding Guidance  Transfers  Vocational Projects for Resale  Worksheet for Calculation of Adjusted Expenditures  Statutory Deadlines  Statutory Deadlines  Tax Rate  Tax Rate Information  Election Dates and Required Passing Percentages

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School Calendar Options

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School Calendar Options

 A traditional calendar may be adopted which requires the

school board to provide a minimum term of at least 174 days and 1,044 hours of instruction, 171.031.1, RSMo

• Minimum required hours in a school day of 3 hours per Section

160.041.1, RSMo

• Maximum possible hours in a school day of 7 hours per Section

171.031.7, RSMo

 A calendar of less than 174 days may be adopted by the

school board that provides a minimum of at least 1,044 hours of instruction, 171.029.1, RSMo

• Minimum required hours in a school day of 4 hours per Section

160.041.1, RSMo

• Maximum possible hours in a school day of 8 hours per Section

171.031.7, RSMo

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School Calendar Options

 A calendar of 142 days (four days per week) may be

adopted by the school board that provides a minimum of at least 1,044 hours of instruction, 171.031.1, RSMo

• Minimum required hours in a school day of 4 hours per Section

160.041.1, RSMo

• Maximum possible hours in a school day of 8 hours per Section

171.031.7, RSMo

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School Calendar

 There is a day requirement  Three calendar options that have been discussed  Districts cannot operate under hours only  Districts will report the planned calendar to the

department by August 15 of each year

 Once the type of calendar has been established by the

district the number of days of planned attendance can’t be changed

 Districts planned calendars will be used when determining

if a district has gone the required number of days in a year

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School Calendar

 A school day ending before the minimum required hours

• n class time does not count toward the day requirement

and the hours do not count toward the 1,044 hour requirement

 The day is not a legal day  The hours and day do not count for state aid purposes  Hours are not reported as a part of the school district’s

calendar and the attendance hours are not reported for the ADA calculation for state aid purposes

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Inclement Weather

 Inclement Weather, for the purpose of this section, shall be

defined as ice, snow, extreme cold, flooding, or a tornado, but such term shall not include excessive heat.

 Days missed for reasons other than inclement weather have to

be made up

 Districts are required to make up the first 6 days lost due to

inclement weather and are required to make up the 7th day and are forgiven the 8th, required to make up the 9th and are forgiven the 10th and so forth until 10 days have been made up

 Specific information and frequently asked questions regarding

inclement weather can be located at https://dese.mo.gov/sites/default/files/sf- CInclementWeather.pdf

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Minimum Salary Requirements

 Beginning Teacher – Minimum Salary $25,000  Master’s Degree with 10 years experience

$33,000

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Minimum Salary Requirements

 Substitute teachers filling a regular classroom teacher’s

position as the teacher-of-record for the class must be paid the minimum salary

 All teachers are to receive at least their full-time

equivalent proration of the applicable minimum salary

 Minimum salary requirements include study hall teachers,

in school suspension teachers and all others for whom the students’ hours are included in the average daily attendance calculation for state aid

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Minimum Salary Requirements

 Section 163.021.3, RSMo, specifies that the

penalty for noncompliance with Section 163.172, RSMo, is the reduction of the Basic Formula to the 1993-94 amount.

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Non-Certificated Educators

 Attendance Hours for any educators without a valid

certificate will be disallowed for state aid payment purposes.

 A substitute certificate meets the requirement of a

certificate when the employee is functioning as a substitute teacher in the absence of the teacher of record

• r is employed as the teacher of record.

 A report is available which will identify educators within

the district that do not have a valid certificate on file with DESE.

 To access this report in the Data Collection system, go to the

left hand navigational tree and select Reports, then Special Reports, then Staff Certification

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Non-Certificated Educators

 At the end of the 2016-2017 year, DESE will prepare a list

• f educators meeting the following criteria:

 did not hold a valid Missouri educator certificate for the

Regular School year teaching assignment or;

 has a certificate pending but did not initiate the required

background check

 School districts notified they have an educator(s) that met

the above criteria must provide School Finance with the attendance hours by building and by grade for all students who were under the supervision of those educators since the educator did not have a valid certificate. These hours

• f attendance will be excluded from the total hours of

attendance for the school year.

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Non-Certificated Educators

 Questions regarding appropriate teacher certification

should be directed to Educator Certification.

 Questions regarding documentation for exclusion of

attendance hours should be directed to School Finance.

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Contact Information

School Finance 573-751-0357

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Name Title

David Tramel David.Tramel @dese.mo.gov Coordinator, Financial and Administrative Services Tammy Lehmen Tammy.Lehmen@dese.mo.gov Director, School Finance Contact for districts in counties 048 & Kansas City Charters, 055-079 & 347-347 Debra Clink Debra.Clink@dese.mo.gov Student Transportation Manager Contact for districts in counties 080-115 & St Louis Charters Taylor Richter Taylor.Richter@dese.mo.gov School Finance Consultant Contact for districts in counties 001-047 & 049-054

QUESTIONS?

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