Date of Adoption: January 9, 2002.

     Purpose: To revise the carryover rules regarding state apportionment funding to reflect changes required by legislative budgets an elimination of Program 94.

     Citation of Existing Rules Affected by this Order: Amending WAC 392-122-900 and 392-141-200.

     Statutory Authority for Adoption: RCW 28A.150.290.

     Other Authority: Section 512, chapter 309, Laws of 1999.

      Adopted under notice filed as WSR 01-24-021 on November 27, 2001.

     Changes Other than Editing from Proposed to Adopted Version: Technical changes made to WAC 392-141-200 (2)(a)(iii). The changes accommodate the different accounting procedures used by the ESDs for transportation equipment purchases.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 2, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 2, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: Adoption of these rules must be in place to support the 2000-01 year end carryover calculations to be performed and communicated to the districts in January 2002.
     Effective Date of Rule: January 24, 2002.

January 23, 2002

Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-5336.1

AMENDATORY SECTION(Amending WSR 96-03-002, filed 1/3/96, effective 2/3/96)

WAC 392-122-900   General provision -- Indirect cost limitations, carryover ((prohibition)) limitations and recoveries.   Categorical apportionment moneys shall ((not)) be expended for allowable categorical program costs. Indirect cost charges to categorical programs are limited as provided in this section. Categorical moneys may be carried over ((by a school district)) from one school district fiscal year to another((, except for learning assistance program moneys)) only as provided in ((subsection (4) of)) this section.

     (1) The superintendent of public instruction shall recover categorical program allocations made pursuant to this chapter ((which are)) if not expended by the school district during the school year for allowable program costs((:

     (a) Moneys recovered at the end of the school year beginning during the first year of each biennium shall be available for reallocation by the superintendent of public instruction.

     (b) Moneys recovered at the end of the school year beginning during the second year of each biennium shall revert to the state treasurer: Provided, That if prior to recovery, insufficient moneys are available to fully fund those programs operating in the second year of the biennium, any moneys recovered shall first be allocated to fully fund these programs)).

     (2) For the 2000-01 school year and thereafter, "allowable program costs" means direct program expenditures minus abatements, if applicable, plus allowable indirect program charges.

     (a) Direct program expenditures are expenditures directly traceable to the program for the school year reported consistent with the Accounting Manual for Public School Districts in the State of Washington and instructions provided by the superintendent of public instruction including the Administrative Budgeting, and Financial Reporting Handbook.

     (b) For the purposes of this section, special education program expenditures shall be reduced (abated) by revenues to account 7121 special education revenues from other districts.

     (c) For special education, highly capable, transitional bilingual, and traffic safety programs, allowable indirect program charges equal direct program expenditures times the percentage calculated from the school district's annual financial statements (Report F-196) for two school years prior as follows:

     (i) Divide direct expenditures for program 97 districtwide support by;

     (ii) Total general fund direct expenditures for all programs minus direct expenditures for program 97 districtwide support; and

     (iii) Round to three decimal places.

     (d) For the learning assistance program, allowable indirect program charges equal the direct program expenditures times the federal restricted indirect rate calculated by the superintendent of public instruction.

     (e) For the institutional education program, allowable indirect program charges equal the state institutional education program allocation times the percentage allocated for indirect costs pursuant to the biennial operating appropriations act and the state funding formula.

     (3) Commencing with the 1994-95 school year allocation, a school district may carry over from one school district fiscal year to the next up to ten percent of the state learning assistance program allocation. Carryover moneys shall be expended solely for allowable learning assistance program costs.

     (4) Commencing with the 1997-98 school year allocation, a district may carry over from one school fiscal year to the next up to ten percent of state special education program allocation. Carryover moneys shall be expended solely for allowable state special education program costs.

     (5) Commencing with the 1998-99 school year allocation, a district may carry over from one school district fiscal year to the next up to ten percent of the state institutional education program allocation. Carryover moneys shall be expended solely for allowable state institutional education program costs.

     (((2) Except as provided in subsection (3) of this section,)) (6) The amount recovered pursuant to ((subsection (1) of)) this section for special education, highly capable, bilingual, learning assistance, and traffic safety programs shall be determined as follows:

     (a) ((Determine)) Sum the state allocation for the categorical program for the school year and any carryover from the prior school year if applicable;

     (b) Determine the district's ((expenditures for the program including indirect expenditures and abatements deemed allowable by the superintendent of public instruction as reported on Year-End Financial Statement F-196, Part III or such other document filed by the district pursuant to instructions provided by the superintendent of public instruction)) allowable program costs for the school year pursuant to this section;

     (c) If the ((amount)) result of (a) of this subsection exceeds the ((amount)) result of (b) of this subsection, the difference less any allowable carryover shall be recovered.

     (((3))) (7) The amount recovered pursuant to ((subsection (1) of)) this section for the institutional education program ((for the 1992-93 school year and thereafter)) shall be determined as follows:

     (a) ((Determine)) Sum the state allocation for the institutional education program for the school year excluding any amount provided for indirect costs, and any carryover from the prior school year if applicable;

     (b) Determine the district's direct expenditures for the institutional education program as reported on ((Year-End Financial Statement)) Report F-196 or such other document filed ((by the district)) pursuant to instructions provided by the superintendent of public instruction;

     (c) If the amount of (a) of this subsection exceeds the amount of (b) of this subsection, the difference less any allowable carryover shall be recovered.

     (((4) Commencing with the 1994-95 school year allocation and notwithstanding other provisions of this section to the contrary, a school district may carry over from one school district fiscal year to the next school year up to ten percent of the preceding fiscal year's learning assistance program state allocation. Carryover moneys shall be expended solely for learning assistance program purposes.)) (8) This section applies to categorical program allocations to school districts, educational service districts and, in the case of institutional education programs, entities contracting to provide an institutional education program funded under this chapter.

[Statutory Authority: RCW 28A.150.290. 96-03-002, § 392-122-900, filed 1/3/96, effective 2/3/96. Statutory Authority: 1995 2nd sp.s. c 18 § 519. 95-18-074, § 392-122-900, filed 9/1/95, effective 10/2/95. Statutory Authority: RCW 28A.150.290. 92-19-125 (Order 92-08), § 392-122-900, filed 9/21/92, effective 10/22/92. Statutory Authority: RCW 28A.41.170. 86-01-021 (Order 85-16), § 392-122-900, filed 12/9/85; 84-20-078 (Order 84-36), § 392-122-900, filed 10/2/84; 84-13-020 (Order 84-10), § 392-122-900, filed 6/13/84.]

OTS-5345.2

AMENDATORY SECTION(Amending Order 92-03, filed 3/23/92, effective 4/23/92)

WAC 392-141-200   Recovery of transportation funds.   ((State allocation for pupil transportation operations are subject to recovery. Each school district's Annual Financial Statement, Form F-196, Part III, district expenditures plus indirect expenditures, less abatements for Program 99, plus funds transferred to the transportation vehicle fund, will be compared to the related pupil transportation operation allocation to determine any recovery of funds.)) The superintendent of public instruction shall recover (take back) state pupil transportation allocations that are not expended for the allowable pupil transportation program costs. Effective for the 2000-01 school year and thereafter, the amount of the recovery shall be calculated as follows:

     (1) Determine the district's state allocation for pupil transportation -- operations for the school year.

     (2) Determine the district's allowable pupil transportation costs as follows:

     (a) Sum the following amounts:

     (i) The school district's direct expenditures for general fund program 99 pupil transportation, and for educational service district pupil transportation operations expenditures in program 70 transportation excluding expenditures associated with the regional coordinator and bus driver training grants;

     (ii) Allowable indirect charges equal to expenditures calculated pursuant to (a)(i) of this subsection times the percentage calculated pursuant to subsection (4) of this section;

     (iii) For school districts, transfers into the transportation vehicle fund for the school year as reported on the district's annual financial statement, Form F-196; and for educational service districts, state pupil transportation operating revenues that are expended or reserved for transportation equipment;

     (b) Subtract the school district's revenues for the school year for revenue account 7199 transportation revenues from other school districts.

     (3) If the allowable program costs are less than the state allocation, OSPI shall recover the difference.

     (4) Allowable indirect charges for pupil transportation are nine percent for educational service districts and for school districts the percentage calculated from the school district's annual financial statement (Report F-196) for two school years prior as follows:

     (a) Divide direct expenditures for program 97 districtwide support by

     (b) Total general fund direct expenditures for all programs minus direct expenditures for program 97 districtwide support; and

     (c) Round to three decimal places.

[Statutory Authority: RCW 28A.150.290. 92-08-024 (Order 92-03), § 392-141-200, filed 3/23/92, effective 4/23/92.]

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