This is the time of year to apply certain quality review checks to the fiscal year 2017 actual audited financial data also referred to as PEIMS Collection 2. The quality review checks should include but not be limited to:
- Minimum expenditure compliance related to Foundation School Program special programs
- Federal maintenance of effort compliance related to Title I and IDEA Part B
- Financial Accountability Rating System School FIRST and Charter FIRST performance
The Texas Education Agency Financial Compliance Division will be auditing the district’s expenditures to verify that the three-year aggregate eligible direct expenditures equal or exceed the aggregate percentages of the respective FSP special program allotments. Total direct costs which will be considered for compliance monitoring purposes are: Eligible expenditures coded by the school district to specific Enhanced Program Intent Codes (PICs) plus Allocations of expenditures to Enhanced PICs from Undistributed PIC (99) based upon instructional FTEs plus Expenditures associated with a school district as a member of a shared services arrangement which are coded to specific Enhanced PICs. If the district shows a deficiency in the amount of expenditures for one or more FSP special programs, apply additional procedures to verify the accuracy of the actual financial data. Also, determine how much more the district should spend for fiscal year 2018, if necessary to achieve compliance in the future with the three-year rolling averages for the FSP allotments. If your analysis indicates compliance and/or performance issues, this is the time to write a plan for the remainder of fiscal year 2018 to improve the district’s performance that will based upon fiscal year 2018 actual financial data.
School officials should complete the TEA provided compliance templates for Federal maintenance of effort compliance related to Title I and IDEA Part B. Do the templates indicate compliance using the fiscal year 2017 actual financial data and other data entered in the template. If not, is the district’s actual financial data coded accurately, and if yes, determine if the district will meet any of the allowed applicable exceptions, if any, and write a plan for organizing the documentation to provide to the Texas Education Agency for the applicable exceptions. If your analysis indicates compliance and/or performance issues, this is the time to write a plan for the remainder of fiscal year 2018 to improve the district’s performance that will based upon fiscal year 2018 actual financial data.
Regarding the Financial Accountability Rating System School FIRST and Charter FIRST performance, complete the calculations for rating year 2017-2018, based upon fiscal year 2017 data. Do the calculations indicate passing all of the indicators in FIRST? If not, is the district’s actual financial data coded accurately? If your analysis indicates compliance and/or performance issues, this is the time to write a plan for the remainder of fiscal year 2018 to improve the district’s performance that will based upon fiscal year 2018 actual financial data.
Lastly, be sure to submit the district’s annual compliance electronic report and electronic data to TEA by the required due dates. Also, charter schools must submit the TEA Charter annual audit report data template (beginning with fiscal year 2016).
Resources:
Summary of Finances: https://tea4avfawcett.tea.state.tx.us/Fsp/Reports/ReportSelection.aspx
School Finance 101: Texas Public School Funding
http://tea.texas.gov/Finance_and_Grants/State_Funding/Manuals/School__Finance_Manuals/
Auditing Module, Resource Guide (FASRG)
https://tea.texas.gov/Finance_and_Grants/Financial_Accountability/Financial__Accountability_System_Resource_Guide/
IDEA and Title I Compliance web page:
http://tea.texas.gov/index4.aspx?id=2147505847
Financial Accountability Rating System School FIRST and Charter FIRST performance:
http://tea.texas.gov/Finance_and_Grants/Financial_Accountability/Financial_Integrity_Rating_System_of_Texas_(FIRST)/Financial_Integrity_Rating_System_of_Texas/
TASBO School FIRST Template for school districts: http://www.tasbo.org/resource/tools-templates/schools-first