Special Education Pass-Through Fund Accounting

Example 1: A County Office, as the Administrative Unit (AU) of the Special Education Local Plan Area (SELPA), Receives the State Apportionment and Transfers It to Member Local Educational Agencies (LEAs).

The local plan provides that $10,000 will be used by the AU and $90,000 will be passed through.

1. As the SELPA AU, the county office records the receipt of the state apportionment of $100,000.

$10,000 for the SELPA AU’s own operations:

• Fund 01 is the General Fund.
• Resource 6500 is Special Education.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8311 is Other State Apportionments—Current Year.
• School is not required.

$90,000 for pass-through to other member LEAs:

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 6500 is Special Education.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8311 is Other State Apportionments—Current Year.
• School is not required.

2. The SELPA AU distributes the apportionment of $90,000 to the other member LEAs, which in this case includes another County Office.
   
   

   Fund	Resource	Project Year	Goal	Function	Object	School
   10	6500	0	5001	9200	7221	000
   10	6500	0	5001	9200	7222	000
   10	6500	0	5001	9200	7223	000

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 6500 is Special Education.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function 9200 is Transfers Between Agencies.
• Object 7221 is Transfers of Apportionments to Districts or Charter Schools; Object 7222 is Transfers of Apportionments to County Offices; and Object 7223 is Transfers of Apportionments to Joint Powers Agencies (JPAs).
• School is not required.

3. The member LEA (in this case a school district) makes the following entry to record receipt of apportionment from the SELPA AU (in this case a county office):
   
   

   Fund	Resource	Project Year	Goal	Function	Object	School
   01	6500	0	5001	0000	8792	000

• Fund 01 is the school district's General Fund.
• Resource 6500 is Special Education.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8792 is Transfers of Apportionments from County Offices. In this case, the AU is a county office of education.
• School is not required.

Example 2: A County Office, as the SELPA AU, Receives the Federal Individuals with Disabilities Education Act (IDEA) Grant and Transfers It to Member LEAs.

The local plan provides that $20,000 will be used by the AU and $60,000 will be passed through.

1. As the SELPA AU, the county office records the receipt of the federal grant of $80,000.

$20,000 for the SELPA AU's Own Operations:

• Fund 01 is the General Fund.
• Resource 3310 is IDEA, Part B-611, Local Assistance.
• Project Year refers to the report year of this program; 0 in this case stands for federal fiscal year 2009–10, which ended September 30, 2010.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8181 is Special Education—Entitlement.
• School is not required.

$60,000 for pass-through to other member LEAS:

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 3310 is IDEA, Part B-611, Local Assistance.
• Project Year refers to the report year of this program; 0 in this case stands for federal fiscal year 2009–10, which ended September 30, 2010.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8287 is Pass-Through Revenues from Federal Sources.
• School is not required.

2. The SELPA AU distributes the federal grant of $60,000 to the other member LEAs, which in this case includes another County Office.
   
   

   Fund	Resource	Project Year	Goal	Function	Object	School
   10	3310	0	5001	9200	7211	000
   10	3310	0	5001	9200	7212	000
   10	3310	0	5001	9200	7213	000

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 3310 is IDEA, Part B-611, Local Assistance.
• Project Year refers to the report year of this program; 0 in this case stands for federal fiscal year 2009–10, which ended September 30, 2010.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function 9200 is Transfers Between Agencies.
• Object 7211 is Transfers of Pass-Through Revenues to Districts or Charter Schools; Object 7212 is Transfers of Pass-Through Revenues to County Offices; and Object 7213 is Transfers of Pass-Through Revenues to JPAs.
• School is not required.

3. The member LEA makes the following entry to record receipt of the federal grant from the SELPA AU:

• Fund 01 is the school district's General Fund.
• Resource 3310 is IDEA, Part B-611, Local Assistance.
• Project Year refers to the report year of this program; 0 in this case stands for federal fiscal year 2009–10, which ended September 30, 2010.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8181 is Special Education—Entitlement.
• School is not required.

Example 3: A County Office, as the SELPA AU, Receives State Revenue Other Than the State Apportionment and Transfers It to Other Member LEAs.

The local plan provides that $5,000 will be used by the AU and $45,000 will be passed through.

1. As the SELPA AU, the county office records the receipt of the state revenue of $50,000 (in this case, the state revenue is Special Education—Mental Health Services).

$5,000 for the SELPA AU's own operations:

• Fund 01 is the General Fund.
• Resource 6500 is Special Education.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8590 is All Other State Revenue.
• School is not required.

$45,000 for pass-through to other member LEAS:

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 6500 is Special Education—Mental Health Services.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8587 is Pass-Through Revenues from State Sources.
• School is not required.

2. The SELPA AU distributes the state revenue of $45,000 to the other member LEAs, which in this case includes another County Office.
   
   

   Fund	Resource	Project Year	Goal	Function	Object	School
   10	6500	0	5001	9200	7211	000
   10	6500	0	5001	9200	7212	000
   10	6500	0	5001	9200	7213	000

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 6500 is Special Education—Mental Health Services.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function 9200 is Transfers Between Agencies.
• Object 7211 is Transfers of Pass-Through Revenues to Districts or Charter Schools; Object 7212 is Transfers of Pass-Through Revenues to County Offices; and Object 7213 is Transfers of Pass-Through Revenues to JPAs.
• School is not required.

3. The member LEA receives state revenue from the SELPA AU.

• Fund 01 is the school district's General Fund.
• Resource 6500 is Special Education—Mental Health Services.
• Project Year is not applicable in this example.
• Goal 5001 is Special Education—Unspecified. A special education goal is required for special education revenue (but not for other revenues).
• Function is not required for revenue.
• Object 8590 is All Other State Revenue.
• School is not required.

Example 4: The SELPA AU Receives Interest Earned on Special Education Balances

The SELPA AU receives a total of $200 interest ($50 on the special education balances maintained in the general fund, and $150 on the special education balances maintained in the Special Education Pass-Through Fund).

1. Assuming there is a local agreement that the SELPA AU will distribute interest earned on balances in the pass-through fund to the member LEAs, the interest is posted between the general fund and the Special Education Pass-Through Fund (Fund 10).

$50 interest earned on the general fund balance:

• Fund 01 is the General Fund.
• Resource 0000 is Unrestricted.
• Project Year is not applicable in this example.
• Goal is not required for revenue except for special education revenues.
• Function is not required for revenue.
• Object 8660 is interest.
• School is not required.

$150 interest earned on the Fund 10 balance:

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 0000 is Unrestricted.
• Project Year is not applicable in this example.
• Goal is not required for revenue except for special education revenues.
• Function is not required for revenue.
• Object 8660 is Interest.
• School is not required.

The SELPA AU distributes the $150 interest earned to other member LEAs, which in this case includes another County Office.

• Fund 10 is the Special Education Pass-Through Fund.
• Resource 0000 is Unrestricted.
• Project Year is not applicable in this example.
• Goal is not required for revenue except for special education revenues.
• Function 9200 is Transfers Between Agencies.
• Object 7281 is All Other Transfers to Districts or Charter Schools; Object 7282 is All Other Transfers to County Offices; and Object 7283 is All Other Transfers to JPAs.
• School is not required

A member LEA (in this case a school district) receives interest from the SELPA AU (in this case a county office).

• Fund 01 is the school district's General Fund.
• Resource 0000 is Unrestricted.
• Project Year is not applicable in this example.
• Goal is not required for revenue except for special education revenues.
• Function is not required for revenue.
• Object 8782 is All Other Transfers from County Offices. In this case, the AU is a county office of education.
• School is not required.

2. Assuming there is a local agreement that the SELPA AU will not distribute interest earned on balances in the pass-through fund to member LEAs, the entire $200 is posted to the general fund for the SELPA AU's operational purposes:

• Fund 01 is the General Fund.
• Resource 0000 is Unrestricted.
• Project Year is not applicable in this example.
• Goal is not required for revenue except for special education revenues.
• Function is not required for revenue.
• Object 8660 is Interest.
• School is not required.