School Finance Terminology
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