Tuition Billing

Organization-Site Rates

State Fiscal Year 2014

The Minnesota Department of Education (MDE) tuition billing system has been updated for the 2013-14 school year. The Org-Site Rate is an option only available to intermediate districts/cooperatives, charter schools and districts with an enrollment of fewer than 500 students. The Org-Site Rate distributes the costs more accurately in situations where (1) students with different primary disabilities are receiving similar services or (2) when there are too few special education students and the expenditures cannot be accurately isolated to the specific disability resulting in a skewed hourly rate by primary disability.

Org-Site Rates apply to all sites within the intermediate district/cooperative/charter school. A combination of rates by primary disability and org rates is not allowed. Only one rate structure can be used.

MDE automatically applies Org-Site Rates for all intermediate districts/cooperatives and charter schools. If Org-Site Rates are not preferred, then the intermediate district/cooperative/charter school will have to submit a request to the Division of School Finance to have the rates calculation changed back to disability-based rates.

This Org-Site Rate is calculated using the UFARS data provided to MDE.

1. The tuition billing system sums all eligible UFARS Finance Dimension 740 and 741 expenditures by organizational code:
a. Payroll (Object Codes 140, 143-146, 150-154, 156-161,163-165,173-176 and 396) (Object Codes 110, 170 – intermediate districts only)
b. Contracted Services (Object Code 394)
c. Supplies, Materials and Equipment (Object Codes 381, 433, 530, 548, 555, 556 and 580)
d. Nonreimbursable – (Object Codes 307, 320, 329, 265, 366, 401, 430 and 820)
2. Each site will have a percentage by the categories above (numerator) divided by the total expenditures from UFARS FIN 740 and 741 with the object codes above (denominator).
3. Expenditures for Org-Site 005 (district-wide) will be distributed to the site proportionally.

Example

Below is an example of the calculation of an Org-Site Rate:

District expenditure for UFARS object codes listed above total $1,050,982

Org-Site 090 (Washington Elementary School)

Payroll = $78,742 divided by total ($1,050,982) = .07492231075

Contracted Services = $11,455 divided by total = .01089933034

Supplies/Materials = $2,450 divided by total = .00233115315

The tuition system sums all expenditures on EDRS by category using Funding Source A:

Service codes A and U – Payroll = $978,955

Service code B – Contracted Services = $44,870

Service codes G, H and P – Supplies, Materials and Equipment = $32,122

Note: $5,005 was not coded correctly on UFARS and was not in the calculations of percentages; hence the difference between the EDRS totals and UFARS.

The tuition billing system will now take the total expenditures from EDRS and multiply those expenditures by the percentages calculated from UFARS data for each org-site.

Eligible Org-Site Expenditures for calculating hourly rates:

Payroll – $978,995 x .07492231075 =$ 73,348.57

Contracted Services - $44,870 x .01089933034 = $ 489.05

Supplies/Materials - $32,122 x .00233115315 = $ 74.88

Total = $75,912.50

The tuition billing system will calculate the special education service hours for each site using the midpoints except for those who have an inclusive, multidisciplinary or cooperative teaching model. In those instances MDE will use the special education services hours reported at that site on MARSS. With the number of hours and the expenditures by site, the tuition billing system will calculate the rates. The expenditures as calculated for each site will be reduced by the appropriate special education aids. The unreimbursed portion of the expenditures will be divided by the number of special education services hours. The nonreimbursable expenditures will be calculated in the same manner as the disability rates. The district-wide disability rates will be applied when there is a mix-match in the data, e.g. expenditures and no special education service hours or vice versa.

Budget/Expenditure adjustment procedures for Org-Site Rates.

Since sites may change and costs for a program vary from one year to the next, using percentages based on prior year’s UFARS data may not provide an accurate distribution of expenditures by site for the current year. Therefore, it is necessary for any entity using Org-Rates to submit to MDE a budget at the site level reflecting reimbursable and non-reimbursable expenditures. These estimated expenditures should be updated throughout the year. Failure to do this will result in (1) a cooperative/intermediate districts/charter schools costs not being covered and (2) inaccurate distribution of costs to the resident district.

At the end of the year when audited UFARS data are available, MDE uses the UFARS data to calculate the percentages used to distribute data reported on EDRS by site. The exceptions are the Intermediate Districts where final data are entered on Line 18 in EDRS.

A menu option is available on EDRS to keep the budget and expenditures up-to-date for the tuition billing system. You will select option “18 Estimate Tuition Billing Exp by Organizational Site” from the menu option. Note: Option item “18” will not appear on your menu if you have not been approved for Org-Site Rates. If you have been approved and do not see option “18” in the menu, please contact Michelle Jones to request assistance.

EDRS Line 18 needs to be updated no later than November 15, 2013, or the district, cooperative or charter school may be reverted back to disability rates.