All special education preschool funding will be disbursed on a reimbursement basis in 2019-2020. This change brings state special education preschool funding (SOF 2260) into alignment with its federal counterpart (SOF 6710).
Please note that state funds do not have a carryover when disbursed on reimbursement. Therefore, it is crucial that all grantees receiving state special education preschool funding expend all funds by the regular datapull in June in order to be fully reimbursed. Also, it is important to understand that a reimbursement basis will require that any existing fund balance be spent before any additional funds are disbursed.
Federal funds allow for carryover, but do have an expiration date. Any additional revenues received from LEAs served that are applied to non-federal F/SOF accounts can be carried over and do not have an expiration date. To prevent the loss of any funding, expenditures should be scheduled to prioritize the use of funds that have the shortest period of availability first.
If a district is paying another LEA for any portion of its preschool program using either state or federal funds, there are specific coding requirements. The paying LEA should record the expense into the F/SOF account using function 1290, object 65910, and program code 200. The receiving LEA should record the revenue into its applicable F/SOF account for state & local using revenue code 19510.
This coding structure will prevent expenditures from being duplicated at both LEAs. Additionally, the function and program codes are important to MOE calculations.
Please contact ADE with any questions about these funding changes.