Errata #1 2011-2012 Special Education Consolidated Grant Application SAS# SPEDAA12 Posted June 28, 2011 Revision to Part 2: Program Guidelines and Use of Funds Page 26 of 94, Budget Requirements section, first paragraph: Use the FAR Module of the Financial Accountability System Resource Guide, located at http://www.tea.state.tx.us/index4.aspx?id=1222, to determine appropriate accounting codes. Failure of the LEA to properly classify cost items may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity and cost and not its accounting treatment. Use the Financial Accounting and Reporting (FAR) Module of the Financial Accountability System Resource Guide (FASRG), located at http://www.tea.state.tx.us/index4.aspx?id=1222, to determine appropriate accounting codes. Failure of the LEA to properly classify cost items may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). Page 28 of 94, Reminders section, second bullet (SSAs) in section: For SSAs, identify the needs for the member districts in the various class object categories and then use class object code 6493 to indicate the amount of funds being flowed to the member district. For SSAs, identify the needs of the fiscal agent and its member districts in the various class object categories throughout the application. The cost items indicated in the application should be a composite of all amounts requested by the fiscal agent and its member districts. The 6493 Payments to Member Districts row of the BS6006 Part 2 Budgeted Costs is a footnote to be used by the fiscal agent to indicate the total amount anticipated to be paid to its member districts. The SPECIAL EDUCATION SAS #SPEDAA12 PAGE 1 OF 11
6493 footnote represents the amount of funds that will not be retained by the fiscal agent for SSA purposes. Page 28 of 94, Reminders section, third bullet (software) in section, fourth paragraph: Software and data management systems may be coded to class object codes 6200, 6300 or 6600 depending on the specific circumstances of the transaction. The LEA should consult the Financial Accountability System Resource Guide (FASRG) located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of School Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the special education grant applications pertains only to the allowability of the activity and cost and not its accounting treatment. Software and data management systems may be coded to class object codes 6200, 6300 or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). Page 29 of 94, Reminders section, third bullet (software) in section, fifth paragraph: LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. Page 29 of 94, Reminders section, fourth bullet (MOE) in section, second paragraph: Agencies that do not maintain effort will be liable in an audit or review for repayment of the amount by which they failed to expend to equal the prior year s expenditures, up to the total amount of the agency s IDEA-B grant. LEAs that do not maintain fiscal effort will be liable in an audit or review for repayment of the amount by which the LEA failed to maintain fiscal effort, up to the amount of the LEA s IDEA-B SPECIAL EDUCATION SAS #SPEDAA12 PAGE 2 OF 11
Formula entitlement for the non-compliant year. This repayment must be made from non-federal funds or from Federal funds for which accountability to the Federal government is not required. Page 29 of 94, Reminders section, last bullet (CEIS) in section: If an LEA reserves CEIS funds but later decides not to use the funds, the LEA should submit an amendment to zero out the CEIS funds. All LEAs that reserve CEIS funds will be required to submit the Special Education SC5100 EIS Data Collection form to report the number of students served. If an LEA voluntarily reserves CEIS funds but later decides not to use the funds for coordinated early intervening services, the LEA should submit an amendment to zero out the CEIS funds. All LEAs that reserve CEIS funds will be required to submit the Special Education SC5100 CEIS Data Collection form annually for three years following the use of CEIS funds. Page 31 of 94, Coordinated Early Intervening Services; Description section, last sentence: All LEAs that reserve CEIS funds will be required to submit the Special Education SC5100 EIS Data Collection form to report the number of students served. All LEAs that reserve CEIS funds are required to submit the Special Education SC5100 CEIS Data Collection form annually for three years following the use of CEIS funds. Page 33 of 94, Coordinated Early Intervening Services; Data Collection and Reporting Requirements section, first sentence: Each LEA that develops and maintains coordinated early intervening services under 34CFR 300.226 must annually report to TEA on the following: Each LEA that reserves IDEA-B funds for CEIS must report to TEA on the following: Page 33 of 94, Coordinated Early Intervening Services; Data Collection and Reporting Requirements section, end of section: The LEA must use the SC5100 EIS Data Collection form to report these counts. This form is to be submitted with the IDEA-B Special Education Consolidated grant application by January 31 of each applicable year. SPECIAL EDUCATION SAS #SPEDAA12 PAGE 3 OF 11
The LEA must report these counts via the Special Education SC5100 CEIS Data Collection form associated with the Special Education Consolidated Grant application. The deadline to submit the SC5100 is November 30 of each applicable year. Page 40 of 94, Maintenance of Effort section, notation in box: Note: LEAs are responsible for maintaining effort and for documenting maintenance of effort (MOE). TEA will verify each LEA s MOE using information obtained from the PEIMS database. TEA staff will notify the applicant if fiscal effort has not been maintained. The final grant amount will be reduced in exact proportion by which the LEA fails to meet 100 percent of the combined fiscal effort per student and aggregate expenditures. Note: LEAs are responsible for maintaining fiscal effort and for documenting maintenance of effort (MOE). TEA will verify each LEA s MOE using information obtained from the PEIMS database. TEA staff will notify the LEA if fiscal effort has not been maintained. LEAs that do not maintain fiscal effort will be liable for repayment of the amount by which the LEA failed to maintain fiscal effort, up to the amount of the LEA s IDEA-B Formula entitlement for the non-compliant year. This repayment must be made from non-federal funds or from Federal funds for which accountability to the Federal government is not required. Page 40 of 94, Maintenance of Effort section, last two paragraphs: Removed because the text is located in the Supplement Not Supplant section on page 16. Page 47 of 94, Payroll Costs 6100 section, 13 th bullet (RtI Personnel) in section, last sentence: Costs would need to be split-funded to use IDEA-B funds for the students with disabilities and CEIS funds for the nondisabled, struggling students. Costs must be split-funded to use IDEA-B funds for the students with disabilities and CEIS funds for the nondisabled, struggling students. If the same person provides services to both the nondisabled, struggling (CEIS) students and the students with disabilities, the person must be dually certified but cannot perform both the special education function and the CEIS function at the same time. Page 50 of 94, Allowables Chart for 6100 Payroll: The following positions have N for fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C: Occupational Therapist SPECIAL EDUCATION SAS #SPEDAA12 PAGE 4 OF 11
Physical Therapist Physical Therapy Assistant The following positions have 2 for fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C (which means allowable with deaf fund sources with justification): Occupational Therapist Physical Therapist Physical Therapy Assistant Page 54 of 94, Professional and Contracted Services 6200 section, sixth bullet (RtI Personnel) in section, last sentence: These costs would need to be split-funded to use IDEA-B funds for the students with disabilities and CEIS funds for the nondisabled, struggling students. Costs must be split-funded to use IDEA-B funds for the students with disabilities and CEIS funds for the nondisabled, struggling students. If the same person provides services to both the nondisabled, struggling (CEIS) students and the students with disabilities, the person must be dually certified but cannot perform both the special education function and the CEIS function at the same time. Page 59 of 94, Notation 5 for Allowables Chart for 6200 Professional and Contracted Services: Allowable data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FARG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of School Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity and cost and not its accounting treatment. LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. Allowable. Data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by SPECIAL EDUCATION SAS #SPEDAA12 PAGE 5 OF 11
quantity) or accounting treatment (class/object category). LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. Page 59 of 94, Supplies and Materials 6300 section, fourth bullet (software) of section: Software may be coded to either 6200, 6300, or 6600, depending on the specific circumstances of the transaction. The LEA should consult the FARG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of School Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the special education grant applications pertains only to the allowability of the activity and cost and not its accounting treatment. Allowable software and data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). Page 60 of 94, Supplies and Materials 6300 section, sixth bullet (software) of section: LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. Page 62 of 94, Allowables Chart for 6300 Supplies and Materials: Computer Hardware/Software & Peripherals and Adaptive Devices for Student Use, SPED only (noncapitalized). SPECIAL EDUCATION SAS #SPEDAA12 PAGE 6 OF 11
Computer Hardware/Software & Peripherals and Adaptive Devices for Student Use, SPED only (noncapitalized). Must be supplemental to those provided for or used by all students. Page 62 of 94, Allowables Chart for 6300 Supplies and Materials: Add: Drop-out Prevention Software: N for all fund sources Page 64 of 94, Allowables Chart for 6300 Supplies and Materials: Physical Therapy/Occupational Therapy Equipment (noncapitalized) has N for the fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C. Physical Therapy/Occupational Therapy Equipment (noncapitalized) has 2 (which means allowable with deaf fund sources with justification) for the fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C. Page 65 of 94, Allowables Chart for 6300 Supplies and Materials: Software Packages for Core Curriculum or Credit Recovery (noncapitalized). Software Packages for Core Curriculum, Credit Recovery, or Drop-Out Prevention (noncapitalized). Page 67 of 94, Notation 5 for Allowables Chart for 6300 Supplies and Materials: Allowable data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FARG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of School Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity and cost and not its accounting treatment. LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. Allowable. Data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains SPECIAL EDUCATION SAS #SPEDAA12 PAGE 7 OF 11
only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. Page 74 of 94, Capital Outlay section: Add bullet before the existing third bullet (software) of section: Allowable software and data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). Page 74 of 94, Capital Outlay section, existing third bullet (software) of section: LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. Page 74 of 94, Capital Outlay section: Add the following bullets after the existing third bullet (software) of section: IDEA-B funds can only be expended to meet the unique educational needs of an eligible child to enable that child to receive specially designed instruction towards IEP objectives. Routine cost items are not allowable. Allowable costs must meet the excess cost requirement of 34 CFR 300.202. Consult the applicable set of cost principles (OMB Circulars A-87, A-122, or A-21) for a list of allowable items. Page 76 of 94, Allowables Chart for 6600 Capital Outlay: SPECIAL EDUCATION SAS #SPEDAA12 PAGE 8 OF 11
Computer Hardware/Software & Peripherals and Adaptive Devices for Student Use, SPED only (capitalized). Computer Hardware/Software & Peripherals and Adaptive Devices for Student Use, SPED only (capitalized). Must be supplemental to those provided for or used by all students. Page 77 of 94, Allowables Chart for 6600 Capital Outlay: Add: Drop-out Prevention Software: N for all fund sources Page 78 of 94, Allowables Chart for 6600 Capital Outlay: The fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C have N for Physical Therapy/Occupational Therapy Equipment (capitalized). The fund sources IDEA-B Formula Deaf, IDEA-B Preschool Deaf, State Deaf, and IDEA-C have 2 (which means allowable with deaf fund sources with justification) for Physical Therapy/Occupational Therapy Equipment (capitalized). Page 79 of 94, Allowables Chart for 6600 Capital Outlay: Software Packages for Core Curriculum or Credit Recovery (capitalized). Software Packages for Core Curriculum, Credit Recovery, or Drop-Out Prevention (capitalized). Page 80 of 94, Allowables Chart for 6600 Capital Outlay: The State Deaf fund source for Vehicles for SPED students has N. The State Deaf fund source for Vehicles for SPED students has 5. Page 80 of 94, Notation 5 for Allowables Chart for 6600 Capital Outlay: SPECIAL EDUCATION SAS #SPEDAA12 PAGE 9 OF 11
Allowable. Passenger vehicles for transporting students with disabilities to and from school (including to and from community based instruction or to and from Regional Day School Programs for the Deaf) are allowable. A passenger vehicle is designed for carrying 10 persons or less. Therefore, the passenger vehicle purchased with IDEA-B funds must not exceed a seating capacity of 10 (excluding the driver). A bus is designed for carrying more than 10 persons and meets the stringent school bus safety standards issued by the Federal government, and recommended by the National Standards Conference on School Transportation. If the LEA needs to transport more than ten children, a bus must be used instead of a passenger vehicle. It is not allowable to purchase or use a personal vehicle with a seating capacity of more than 10 persons (excluding the driver) to transport students. Allowable. Passenger vehicles for transporting students with disabilities to and from school (including to and from community based instruction or to and from Regional Day School Programs for the Deaf) are allowable. According to Texas Transportation Code Section 541.201, a passenger vehicle is designed to accommodate 10 or fewer passengers, including the operator. Therefore, the passenger vehicle purchased with special education funds must not exceed a manufacturer s seating capacity of 10 (including the driver). A bus is designed for carrying more than 10 persons and meets the stringent school bus safety standards issued by the Federal government, and recommended by the National Standards Conference on School Transportation. If the LEA needs to transport nine or less children, a passenger vehicle may be used. If the LEA needs to transport ten or more children, a bus must be used instead of a passenger vehicle. It is not allowable to purchase a personal vehicle designed or rated by the manufacturer with a seating capacity of more than 10 persons (including the driver) to transport students. Page 81 of 94, Notation 7 for Allowables Chart for 6600 Capital Outlay: Allowable. Data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of School Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity and cost and not its accounting treatment. LEAs may not obligate or expend grant funds for multi-year software subscriptions because these business arrangements provide a benefit for a period longer than the grant period. Allowable. Data management systems may be coded to either 6200, 6300, or 6600 depending on the specific circumstances of the transaction. The LEA should consult the FAR Module of the FASRG located at http://www.tea.state.tx.us/index4.aspx?id=1222 or contact the Division of Financial Audits at 512-463-9095 for guidance. Failure of the LEA to properly classify the cost may result in an unfavorable audit finding. Approval of budgeted costs on the grant application pertains only to the allowability of the activity/cost item and not its cost calculation (unit cost multiplied by quantity) or accounting treatment (class/object category). LEAs may not obligate or expend grant funds for multi-year software subscriptions or multi-year maintenance fees because these business arrangements provide a benefit for a period longer than the grant period. However, the cost of a SPECIAL EDUCATION SAS #SPEDAA12 PAGE 10 OF 11
perpetual license is allowable as long as the maintenance fee associated with the perpetual license is paid annually during the appropriate grant period. SPECIAL EDUCATION SAS #SPEDAA12 PAGE 11 OF 11