IDEA Requirement The excess cost requirement has been a part of the

Individuals with Disability Education Act since the original PL 94-142 of 1975.

These current federal regulations address excess cost:

• 34 CFR 300.16,

• 34 CFR 202, and

• Appendix A to Part 300 (formula and example).

34 CFR 300.16 – Excess Costs Excess costs means those costs that are in excess of the average

annual per-student expenditure in an LEA during the preceding school year for an elementary school or secondary school student, as may be appropriate, and that must be computed after deducting –

a) Amounts received – 1) Under Part B of the Act; 2) Under Part A of title I of the ESEA; and 3) Under Parts A and B of title III of the ESEA and;

b) Any State or local funds expended for programs that would qualify for assistance under any of the parts described in paragraph a) of this section, but excluding any amounts for capital outlay or debt service. (See appendix A to part 300 for an example of how excess costs must be calculated.)

APPE

APPE – Average Per Pupil Expenditure

APPE is an acronym frequently used by the Office of Special Education Programs (OSEP) in IDEA excess cost guidance documents.

34 CFR 300.202(b) – Use of Amounts

(Excess cost requirement) b) Excess cost requirement – 1) General. (i) The excess cost requirement prevents an LEA from using funds

provided under Part B of the Act to pay for all of the costs directly attributable to the education of a child with a disability, subject to paragraph (b)(1)(ii) of this section.

(ii) The excess cost requirement does not prevent an LEA from using Part B funds to pay for all of the costs directly attributable to the education of a child with a disability in any of the ages 3, 4, 5, 18, 19, 20, or 21, if no local or State funds are available for nondisabled children of these ages. However, the LEA must comply with the nonsupplanting and other requirements of this part in providing the education and services for these children.

2) (i) An LEA meets the excess cost requirement if it has spent at least a minimum average amount for the education of its children with disabilities before funds under Part B of the Act are used.

(ii) The amount described in paragraph (b)(2)(i) of this section is determined in accordance with the definition of excess costs in §300.16. That amount may not include capital outlay or debt service.

Supplement Not Supplant Local Funds

IDEA funds are for the excess cost of providing special education and related services to students with disabilities

All students are entitled to desks, books, supplies, the excess cost occurs when a student’s disability creates additional costs e.g. adapted desk, audio books, or additional supplies to address academic and behavioral needs.

• LEAs can’t use IDEA funds to cover ALL expenses for educating students with disabilities (Exceptions for PreK and 18-21 populations are noted in 300.202(b)(1)(ii)).

Verification Process Per OSEP, assurances alone are not sufficient to meet the IDEA excess cost requirement.

Each district must calculate its excess cost threshold and submit the completed worksheet to ISBE.

Establishing the excess cost threshold is the first step in ensuring that IDEA funds are expended for excess costs.

A standard excess cost worksheet provides a uniform process for all districts to calculate their excess cost threshold.

The verification process is part of compliance with federal regulations regarding the use of federal funds (34 CFR 76.700 and 76.731).

Excess Cost Formula Appendix A to Part 300 includes a formula for calculating the IDEA excess cost threshold by:

- calculating for total expenditures,

- subtracting certain expenditures,

- computing for an average annual per pupil amount, and

- Determining the minimum amount of local (state/local) funds that must be expended on special education and related services for students with disabilities.

Excess Cost Worksheet

Illinois’s IDEA excess cost worksheet follows the Appendix A formula and includes Illinois data sources for completing the worksheet.

The worksheet is in an Excel format with prompts directing the districts to the correct data sources.

09/24/15 IDEA EXCESS COST

2015-2016 FY'16

District:

Name of Person

Completing

Report:

RCDT Code: Email:

1 A

2 Total Expenditures Elementary (K-8) Secondary (9-12) Total

3

(All Programs

except Pre-K) Member Districts attach Expenditure Detail Report

4 Educational Fund (10) AFR line 114, column K (900) $0.00

5 (less Pre-K lines 7, 9, 11, 20, 23, 25)

6 Operations & Maintenance Fund (20) AFR line 150 , column K (900) $0.00

7

8 Transportation Fund (40) AFR line 204, column K (900) $0.00

9

10 Municipal Retirement/SS Fund (50) AFR line 288, column K (900) $0.00

11 (less Pre-K lines 210, 212, 214)

12 Tort Fund (80) AFR line 331, column K (900) $0.00

13

14 "Total Coop. Expenditures" (shaded total) from the Expenditure Detail Report $0.00

15 A Total $0.00 $0.00 $0.00

16 B

17 Capital Outlay/Non-Capitalized Equipment & Debt Service Elementary (K-8) Secondary (9-12) Total

18 (All Programs except Pre-K)

19 Educational Fund (10) AFR line 114, columns G (500) & I (700) + line 112 column K (900) $0.00

20

(less Pre-K lines 7, 9, 11, 20, 23, 25, only

columns G(500) and I(700)

21 Operations & Maint. Fund (20)

AFR line 150, columns G (500) & I (700) +

line 148, column K (900) $0.00

22

23 Transportation Fund (40) AFR line 204, columns G (500) & I (700) + line 202, column K (900) $0.00

24

25 Municipal Retirement/SS Fund (50) AFR line 286, column K(900) $0.00

26

27 Tort Fund (80)

AFR line 331, columns G(500) & I(700) + line 329,

column K(900) $0.00

Elementary and Secondary 34 CFR 300.16 defines excess costs as, “…costs that are in excess of the average annual per-student expenditure in an LEA during the preceding school year for an elementary school or secondary school student…”

Appendix A further states that 300.16 requires separate excess cost calculations for elementary and secondary schools.

As such, the IDEA excess cost worksheet includes separate columns for elementary and secondary excess cost calculations.

Preschool/Prekindergarten (Pre-K) The excess cost calculations are based on kindergarten through grade 12 data and do not include the Pre-K population. The excess cost worksheet includes prompts directing districts to exclude the Pre-K population.

*The excess cost worksheet uses the term Pre-K to include all students who have not yet entered kindergarten.

The IDEA preschool grants are for students with disabilities ages 3-5, including 5-year-old kindergartners with IEPs. When calculating the IDEA excess cost, include any IDEA preschool grant funds that were used to provide special education and related services to 5-year-old students in kindergarten.

18 through 21 Year-Old-Students Districts can use Part B funds to pay for ALL of the costs directly attributed to educating students with disabilities ages 18, 19, 20, or 21; if no local or State funds are available for nondisabled students of those ages (i.e. ALL costs for educating the students, including electricity, water, desks, materials, staff salaries/benefits, etc. are IDEA funded.) Districts are still held to nonsupplanting requirements. (34 CFR 300.202(b)(ii))

Data Sources Annual Financial Report (AFR) – Each Illinois district must complete and submit an AFR to ISBE each year.

Financial Reimbursement Information System (FRIS) – FRIS is a financial inquiry portal maintained by ISBE.

Local financial records – maintained by the districts for local revenue and expenditures not reported to ISBE.

Fall Enrollment Count – count of all K-12 district students.

IDEA Child Count – count of K-12 students with disabilities.

Previous Year Data Per 34 CFR 300.16 the excess cost annual per pupil expenditure is determined based on the preceding school year (expenditures and student population).

The excess cost worksheet and instructions direct districts to the data sources for the previous school year, with the exception of the IDEA child count data.

IDEA Flow Through Expenditure Detail Report

The IDEA excess cost worksheet requires all districts to enter AFR and FRIS data. When districts are part of a special education cooperative, the cooperatives submit the IDEA expenditures for reimbursement. As a result, the AFRs and FRIS do not reflect the amount of IDEA funds expended by each member district of the special education cooperatives.

Expenditure Detail Report (cont.) The IDEA excess cost calculation is based on the total federal IDEA allocation and must include each district’s IDEA expenditures. Districts that are members of special education cooperatives must use the IDEA Flow Through Expenditure Detail Report and enter that data in the IDEA Part B (Flow Through) in Sections A and D of the excess cost worksheet. The completed expenditure detail report must be submitted along with the final IDEA excess cost worksheet.

IDEA Flow-Through Expenditure Detail Report (2014-2015)

District Name: RCDT Code:

IDEA Allocation 2014-2015 FY 14 Carryover Total Expenditures 2014-2015 FY 16 Carryover

$ - $ -

Employee Purchased Supplies & Capital Other Non-Capital. Termination

Function Expenditure Salaries Benefits Services Materials Outlay Objects Equipment Benefits Row Totals

object 100 object 200 object 300 object 400 object 500 object 600 object 700 object 800

1000 Instruction $ -

$ -

2110 Attendance & SW Services $ -

$ -

2120 Guidance Services $ -

$ -

2130 Health Services $ -

$ -

2140 Psychological Services $ -

$ -

2150 Speech/Audiology Services $ -

$ -

2210 Improvement of Instruction $ -

$ -

2220 Educational Media Services $ -

$ -

2230 Assessment & Testing Services $ -

$ -

2300 General Administration $ -

$ -

2400 School Administration $ -

$ -

2510 Business Support Services $ -

$ -

Section A – Total Expenditures Section B – Cap. Outlay/Non-Cap. Equipment and Debt Service

Sections A & B of the IDEA excess cost worksheet direct district to specific lines of the AFR for the previous fiscal year.

*IDEA expenditures for member districts in special education cooperatives are not reflected in the AFRs. The FY15 AFRs are due at ISBE by October, 2015. Districts must use the FY15 AFR data to complete Sections A & B of the FY16 IDEA excess cost worksheet.

A

Total Expenditures Elementary (K-8) Secondary (9-12) Total

(All Programs except

Pre-K) Member Districts attach Expenditure Detail Report

Educational Fund (10) AFR line 114, column K (900) $0.00

(less Pre-K lines 7, 9, 11, 20, 23, 25)

Operations & Maintenance Fund (20) AFR line 150 , column K (900) $0.00

Transportation Fund (40) AFR line 204, column K (900) $0.00

Municipal Retirement/SS Fund (50) AFR line 288, column K (900) $0.00

(less Pre-K lines 210, 212, 214)

Tort Fund (80) AFR line 331, column K (900) $0.00

"Total Coop. Expenditures" (shaded total) from the Expenditure Detail Report $0.00

A Total $0.00 $0.00 $0.00

B

Capital Outlay/Non-Capitalized Equipment & Debt Service Elementary (K-8) Secondary (9-12) Total

(All Programs except Pre-K)

Educational Fund (10) AFR line 114, columns G (500) & I (700) + line 112 column K (900) $0.00

(less Pre-K lines 7, 9, 11, 20, 23, 25, only columns G(500)

and I(700)

Operations & Maint. Fund

(20) AFR line 150, columns G (500) & I (700) + line 148, column

K (900) $0.00

Transportation Fund (40) AFR line 204, columns G (500) & I (700) + line 202, column K (900) $0.00

Municipal Retirement/SS Fund (50) AFR line 286, column K(900) $0.00

Tort Fund

(80) AFR line 331, columns G(500) & I(700) + line 329, column K(900) $0.00

B Total $0.00 $0.00 $0.00

ESEA IDEA and Title Expenditures Elementary (K-8) Secondary (9-12) Total

FY15 IDEA Part B (Flow-Through) (AFR data or Total Expenditures from Expend. Detail Report) $0.00

Stand-alone districts, enter AFR lines/columns here:

FY15 ESEA - Title I (Low Income & School Improvement) $0.00

Enter AFR lines/columns:

FY15 ESEA - Title III (LIP/LEP & Immigrant Education, Bilingual Ed TPI/TBE) $0.00

Enter AFR lines/columns:

All Other FY15 Special Education Expenditures

*Do NOT include costs paid with IDEA Flow-through funds

*Do NOT include expenditures that were included in Section B Elementary (K-8) Secondary (9-12) Total

Educational Fund (10) (special education costs outside of the IDEA Flow-through grant,

e.g., special education programs, related/support services, private tuition, room and board,

summer program, professional development, assessments, special education administrative

costs, data processing, payment to other districts/governmental units, etc.)

$0.00 $0.00 $0.00

Enter AFR lines/columns:

Section C – Total Expenditures Minus Capital Outlay/Non-Cap. Equipment and Debt Services

(A – B = C)

When sections A and B are completed, the Excel excess cost worksheet will calculate section C – a new adjusted total with capital outlay and debt services subtracted.

C

Total Expenditures less Elementary (K-8) Secondary (9-12) Total

Capital Outlay/Non-Capitalized Equipment & Debt Service

Adjusted Total Expenditures C Total (A less B) $0.00 $0.00 $0.00

Section D – Special Education &

ESEA Title Expenditures

Section D is separated into three subsections for federal, state, and local expenditures.

The excess cost worksheet directs districts to FRIS for federal and state expenditures.

*IDEA expenditures for member districts in special education cooperatives are not reflected in FRIS.

For local expenditures, the districts will reference their local district financial records.

ESEA IDEA and Title Expenditures Elementary (K-8) Secondary (9-12) Total

FY15 IDEA Part B (Flow-Through) (AFR data or Total Expenditures from Expend. Detail Report) $0.00

Stand-alone districts, enter AFR lines/columns here:

FY15 ESEA - Title I (Low Income & School Improvement) $0.00

Enter AFR lines/columns:

FY15 ESEA - Title III (LIP/LEP & Immigrant Education, Bilingual Ed TPI/TBE) $0.00

Enter AFR lines/columns:

All Other FY15 Special Education Expenditures

*Do NOT include costs paid with IDEA Flow-through funds

*Do NOT include expenditures that were included in Section B

Elementary (K-8) Secondary (9-12) Total

Educational Fund (10) (special education costs outside of the IDEA Flow-through grant,

e.g., special education programs, related/support services, private tuition, room and board,

summer program, professional development, assessments, special education administrative

costs, data processing, payment to other districts/governmental units, etc.)

$0.00 $0.00 $0.00

Enter AFR lines/columns:

Operations and Maintenance

Fund (20) (special education) $0.00 $0.00 $0.00

Enter AFR lines/columns:

Transportation Fund (40) (special education) $0.00 $0.00 $0.00

Enter AFR lines/columns:

Municipal Retirement/SS Fund (50) (special education) $0.00 $0.00 $0.00

Enter AFR lines/columns:

Tort Fund (80) (special education) $0.00 $0.00 $0.00

Enter AFR lines/columns:

Section E – Adjusted Total Expenditures less Special Education

and ESEA Title Expenditures (C – D = E)

When sections C and D are completed, the Excel excess cost worksheet will calculate section E – a new total with special education and Title expenditures subtracted.

Final Calculations for Excess Cost (FY16)

FY15 expenses divided by FY15 student enrollment (Oct. 2014 Fall Enrollment) = APPE

APPE multiplied by December 2015 IDEA Child Count (FY16) = Excess Cost Threshold

(FY16 local funds to be expended for special education)

Section F – Average Per Pupil Expenditure

Section F directs districts to the Fall Enrollment Count from the previous year (October, 2014 for FY 16 worksheet). Districts would not include the prekindergarten population in the count entered in the excess cost APPE (section F).

F

Average Annual Per Pupil Expenditure Elementary (K-8) Secondary (9-12) Total

FY15 Total Student Enrollment (Oct., 2015 Fall Enrollment - http://www.isbe.net/spec-ed/html/idea_part-b.htm) 0

F Total (E/line 59) #DIV/0! #DIV/0! #DIV/0!

Section G – Minimum District Must Expend Per Pupil With Disabilities

(Excess Cost Threshold)

Districts will enter the special education child count for the current fiscal year (December, 2015 for FY16).

The worksheet will calculate the excess cost threshold for the current fiscal year and insert that number in the EXCESS COST line of Section G.

Excess Cost Threshold Calculated

When Section G is completed the district will have the excess cost threshold for the current fiscal year, i.e. the amount of local (state/local) funds that must be expended for educating students with disabilities during this fiscal year.

Reporting Timeline

The completed IDEA excess cost worksheets must be submitted to the South Eastern Special Education by Monday, January 25, 2016.

SESE will compile all required documents and submit as a cooperative to ISBE.