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As with any profession, there are terms used for many methods, reports, etc that are used. Over the years, some remain the same, however, for the most part, many are added. Below is are some of the more used terms in school finance.
Aid and Levy
Aid and Levy
The Iowa School Aid formula provides funding to local school districts and area education agencies (AEAs). A school district’s operating budget funded through the school aid formula is called the school district’s combined district cost. The combined district cost is funded through state aid, the uniform levy, and the additional levy (sometimes referred to as the local second effort).
Accounting Basis
Iowa school districts and AEAs (area education agency) are required to use modified accrual for governmental funds and full accrual for proprietary funds. This is the same basis of accounting as the fund financial statements in an audit.Accounting Basis
Accrual Basis
The basis of accounting and budgeting under which most financial transactions are recorded when they occur regardless of when the payment is actual received or disbursed. It includes incurred expenses (including salaries) and all receivables in the year in which the services and/or goods were received. The entire annual salary for each employee is included in the fiscal year in which the services are rendered. All Iowa school districts and AEAs are required to be in compliance with Governmental GAAP and use the accrual/modified accrual basis of accounting and budgeting for all parts of the CAR - COA, audit, all official annual and periodic financial reports and certified budgets. All school districts and AEAs shall use 60 days as the cut-off period for revenue recognition. The CAR-COA, CAR-SES, and similar department data collections are reported at the fund level prior to any adjusting entries necessary to complete the entity-wide statements for the annual audit.Accrual Basis
The budget adopted (voted) on by the Board of Education after publication and public hearing.
Annual report filed by school districts in Iowa. Report provides specifics on ridership, costs incurred, revenue received, and, lastly, a cost per student.
The maximum amount a district may expend from the General Fund for the budget year. The amount is the sum of the combined district cost plus the unspent balance from the prior budget year plus the actual miscellaneous income received during the budget year plus the instructional support program and educational improvement program. The authorized budget is also commonly referred to as the maximum spending authority.
Comprised of both the Fall & Spring BEDS and the Fall BEDS Staff --- report collecting staffing, student, and policy data from public school districts. Data from the reports are used to meet state and federal reporting requirements, respond to legislative request for information, and support education research.
Budget Amendment
The annual aid/levy process has the budget broken down into 4 expenditure categories: instructional, support services, non instruction and other. Expenditures can't exceed in the any of the 4 areas or in total. Should there be a time when the District anticipates the expenditures may exceed the budgeted amount, a budget amendment is required prior to exceeding the amount in the category and/or in total.Budget Amendment
Report of financial data required by Iowa Code to be filed annually with the Department of Education by each school district and area education agency. The CAR is due no later than September 15 following the close of the fiscal year.
Cash Reserve Levy
A property tax levy which a local school board may implement in order to provide cash to fund its maximum authorized budget and/or to provide cash flow. This levy does not increase the budget authority. This levy is limited by law and may also be reduced by the SBRC.Cash Reserve Levy
Annual report of enrolled resident students used for the Iowa School Finance Formula calculation. The certified enrollment count is taken on the first day of each October every year, or the following Monday if the first falls on a weekend.
Provides the school districts and AEAs with detail for use in their accounting systems.
Concurrent Enrollment
A course offered by a community college pursuant to a contract with the public school district where a qualifying high school student may enroll in the community college course, and receive both community college credit and high school credit for that course. Some, not all, concurrent enrollment courses are eligible for supplementary weighting.Concurrent Enrollment
Signed in 2015 and is a federal K-12 education law that replaced No Child Left Behind Act. The law maintains a focus on equity for all students, while giving states and local school districts much more ownership over systems of school accountability and support.
An IASB ratio that provides a picture in time of the financial health of a school district. Calculated by dividing the sum of the assigned and unassigned General Fund balances by the actual General Fund revenue (less AEA flow thru) of the school district for the fiscal year.
Codified set of currently effective accounting and reporting standards and principles. Governmental GAAP is established by the Governmental Accounting Standards Board (GASB) after a lengthy process of public review. Governmental entities cannot follow GAAP established by the Financial Accounting Standards Board (FASB) unless GASB so states. Iowa school districts and AEAs are required by law to be in compliance with Governmental GAAP for both accounting and budgeting. Uniform Financial Accounting embodies the Governmental GAAP that districts and AEAs shall follow.
Announced by Governor Kim Reynolds August 7, 2020, $6.9 million from the Governor's Emergency Education Relief (GEER) Fund has been reserved for institutions of higher education (IHE) to improve connectivity for students and provide professional development for faculty in online instruction.
Examination of the financial records, accounts, transactions, accounting practices, compliance with laws and regulations and internal controls of the district or AEA by an external auditor/CPA who is not an employee of the district. Audits performed by the Office of the Auditor of the State are also independent audits. An independent audit is required of all school districts and AEAs annually, due by March 31 following the end of the fiscal year, and auditor selection requires an RFP process.
A school district may establish an instructional support program to provide additional funding. The Board may adopt a resolution for a period not exceeding five years without a public vote, unless it receives a proper petition to submit the question to a vote. The public may vote for the program for a period not exceeding ten years. The instructional support program may be funded by all property tax or a combination of property tax and income surtax. The instructional support program must be accounted for in the General Fund and may be used for any purpose allowed from the General Fund but not for supplanting other funding streams.
A student who has a language background other than English, and the proficiency in English is such that the probability of the student's academic success in an English-only classroom is below that of an academically successful peer with an English language background. There is special weighting attributed to Limited English Proficient students.
All revenues and receipts into the General Fund but not including state foundation aid, categorical funding that is part of the formula, foundation property tax, or additional property tax generated through the school foundation formula. It does not include cash reserve levy property taxes.
SBRC is a non-partisan body established by legislature with authority and responsibilities in school budgeting and accounting. The SBRC is an independent agency separate from the Department of Education and Department of Management.
Annual report comprised of those students served under special instruction. Ending result of report provides the balance of funds at the end of each fiscal year for the district.
A manual which is a compilation of relevant legal and authoritative citations and references in the area of school business management in the State of Iowa.
Iowa school districts are required to follow this manual. The manual is based on a federal handbook for accounting. It discussed accounting theory for school districts. following generally accepted accounting principles (GAAP) for governmental entities.
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