Due July 1, 2018, school districts with at least 4 schools and that receive at least 50 percent of their funding from the State, will be required to submit a complete plan to NYSED demonstrating how State and local funds will be spent at individual schools within the district. The reporting requires that schools report per-pupil funding levels at individual school building and requires an explanation of how funding is allocated among the schools within a district. This reporting which will be required annually, must include “uniform decision rules regarding allocation of centralized spending to individual schools from all funding sources.”
The New York State School Boards Association has compiled a list of about 75 schools across the State that are affected by this change which includes a handful of districts on Long Island. While many schools across the Island are not required to provide this reporting to the State by the July 1, 2018 deadline, the changes in school-level reporting will apply to all schools as follow:
- For the 2019-2020 school year, all school districts with at least 4 schools would be subject to the reporting requirements.
- All remaining schools are required to comply with the new reporting requirement in the 2020-2021 school year.
The Director of the Budget in consultation with the Commissioner of Education will develop the reporting form. A school district’s increase in aid would be withheld until a determination of compliance is made. Districts would also be required to make this information publicly available on their website.
Another similar requirement will be taking effect starting in the 2018-2019 school year. The Federal Every Student Succeeds Act (ESSA) requires schools nationwide to track school-level spending. The first reports will be due to the State Education Department in December 2019. More details and guidance to come.
This article was also featured in our newsletter Lesson Plan Vol. 18
Written by Nicholle Mezier, CPA, MBA. If you would like to learn more about this topic, please contact:
Shari Diamond, CIA
Partner
Shari has been with Cerini & Associates, LLP since 2008 where she works primarily with the firm’s school district clients providing internal audit and claims audit services. She has over twenty years’ experience performing internal audits, risk assessments, and compliance reviews, as well as recommending processes to strengthen the internal controls environment while increasing efficiencies. Her prior experience at PWC and Northrop Grumman included performing Information Technology audits.