Special Education

TO: Directors of Special Education

Transition Disabled Directors

FROM: George Holt, Supervisor

Division of School Finance

DATE: June 25, 2014

SUBJECT: Transition Disabled Electronic Data Reporting System (EDRS) Update

NOTE: Please share this memorandum with the individual(s) who do Transition EDRS data entry.

Starting in State Fiscal Year (SFY) 2015 the Transition EDRS will be transitioning to the Special Education EDRS effective in SFY 2016. Therefore, effective for SFY 2015 the following changes will be made to Transition EDRS:

• A new service code will be added to Transition EDRS to report non-federal expenditures. This data element is needed for the calculation of SFY 2016 state special education aids which includes Transition Disabled expenditures.
• The procedures for reporting contracted student services and placements will be changed.
• Service codes for purchased services from other districts, cooperatives, education districts and intermediates will be added. These changes are further described below.

Mike Landers, Division of School Finance, has been assigned as the primary contact for Transition Disabled EDRS. Al Hauge will continue to do all contract and equipment approvals. Please do not contact Mike Landers for approvals of contracts. George Holt, will be Mike Landers’ backup for Transition EDRS.

Cooperative Allocations to Member and Participating Districts

Cooperatives that have Transition Disabled programs are reminded to keep their allocations to their member and participating districts current and make sure that their initial allocations for SFY 2015 are entered on EDRS. When cooperatives fail to enter their allocations on Transition Disabled EDRS, those expenditures and initial state aid are not a part of the state special education aid calculations. As a result, the member and participating districts are missing state special education aid.

Service Code “t” – Nonfederal expenditures

Minnesota Statute 125A.79, Subdivision 1 was amended by the 2013 Legislature to redefine state special education expenditures to include expenditures that were previously not eligible for state special education aids. The change will mean that SFY 2015 data will be used to calculate SFY 2016 state special education aid.

Service Code “t” was established for the districts to report these data to the Minnesota Department of Education (MDE). These expenditures under Service Code “t” are a part of the Nonfederal expenditures.

Funding Source Code (FSC) “t” expenditures should be coded under:

• Finance Codes that are to be reported:
o 835 – Transition Disabled
o Program Code 380
• Object Codes:
o 110 for Directors and Assistant Directors only
o 170 Secretarial or Administrative Support only
o 199 – 280, and 291 – 295 Benefits (Not 389 and 390)
o 305 Contracted Services (Director and Secretary only)
o 320 Electronic Communications
o 329 Dissemination
o 365 Travel Chargebacks
o 366 Travel
o 401 Supplies and Materials – Non Instructional
o 530 Equipment for Office Supervision
o 820 Dues/Memberships

Districts should sum the expenditures for Finance Dimension 835 and enter the total for these nonfederal expenditures under Service Code “t”.

Do not include Finance 335 – Q-Comp in SFY 2015

Service Codes M, N, O and P for Contracted Services/Placements and Equipment

Effective September 1, 2014 districts will be entering their own data for equipment, and contracted services/placement. These lines will automatically error out on EDRS and will be excluded from the aid calculations until approval has been provided by Al Hauge. When districts are submitting the requests for contracts and equipment please be sure to also enter the year (in this case 2014-15) and the line number in an area on the form that that is quickly identifiable. Once the contract or piece of equipment has been approved, Al Hauge will notify Mike Landers that a contract has been approved and the Transition EDRS line number. Mike Landers will remove the error from the line.

Please do not enter any SFY 2015 data on Service Codes M, N, O or P before September 1, 2014.

Purchased Services, Contracts and Equipment

Service Code U is used when purchasing personnel services from a single or host district, cooperative, intermediate, service cooperative, or education district. The district purchasing the services must identify the individual on EDRS. The use of Service Code U requires the following:

The vending district is the district that holds the contract. The purchasing district is the one that is buying the service for their program.

• The vending district claims aid for only the amount of time its employees provided service within its own district for its own program. For example, the vending district must reduce its claim on EDRS for the time the employee’s time was being purchased by another district.
• Claims for such services must reflect accurate prorating of costs so that claims from various vending and purchasing agencies never exceed a total greater than one full-time equivalent. The aggregate FTE for any employee for all districts cannot exceed 1.0 for the regular school term.
• The vending district bills the purchasing district the whole cost of salary and fringe benefits for the amount of time the employee was serving in the purchasing district (not reduced by any source of aid).
• The purchasing district enters the salary on EDRS using Service Code U. Benefits are never entered under Service Code U.
• The purchasing district can claim the portion of fringe benefits. The fringe benefits portion of the purchase would be entered on EDRS with the appropriate Service Code “t”.
• Both the employing and the purchasing districts must enter the file folder number in the appropriate field on EDRS. The purchasing district must enter the name of the individual and the vending district’s number in the description column on EDRS.
• Claims for professional services must include providing the individual’s appropriate Personnel Type Code and File Folder Number.
• An edit check is run by the department on all professional individuals reported under Payroll Personnel (Service Code A), Contracted Personnel (Service Code M), and Purchase of Service (Service Code U) to assure that the total FTE for an individual does not exceed 1.0 and that licensure is appropriate to the assignments.

When such purchases are reported on EDRS, clear documentation of the services delivered, the credentials of the individual providing the service and fiscal reporting must be available to MDE on request, whether for on-site monitoring or via fax or mail.

Example of Purchased Services, Supplies and Materials.

Service Code U Example: District A is sharing a Transition Disabled Teacher, Jo Ann, with District B. Jo Ann worked with 13 students in District B for 390 hours. Her file folder number is 999999. District B wants to claim the expenditure under the state funding formula. District A also provided $400 in instructional materials to District B. District A purchased for District B a piece of equipment as multiple pieces ordered at one time was a savings. The cost of the equipment was $1,200 and it was approved by MDE. District A bill district B:

• Salary - $12,000.00
• Benefits - $2,360
• Supplies - $400
• Equipment - $1,200

UFARS Coding for District B paying District A:

Finance Dimension: 835

Program Code: 380

Object Code 396 – Salaries ($12,000)

Object Code 397 – Benefits ($2,360)

Object Code 433 – Supplies ($400)

Object Code 399 – Equipment ($1,200)

Data Entry on Transition Disabled EDRS


Service Code: U

Personnel Type Code: 01

Program Code: 380

Description: Jo Ann, 0999-01(District A’s Number)

File Folder Number: 999999

Students Served: 13

Number of Hours: 390

Expenditure: $12,000.00 (salary only)


Service Code: “t”

Program Code: 380

Description: Benefits for Jo Ann 0991-01

Expenditure: $2,360


Service Code: “u”

Program Code: 380

Expenditure: $400

Description: Consumables for Life Skills Class


Service Code: p

Program Code: 380

Expenditure: $1,200

Description: Inventory Assessment Equipment

Contact Information

Al Hauge, Career Tech Education

Phone: 651-582-8409

Email: al.hauge@state.mn.us

Mike Landers, Special Education Funding and Data

Phone: 651-582-8810

Email: mike.landers@state.mn.us

To summarize, the Transition Disabled EDRS will be transitioning to Special Education EDRS in SFY 2016. The changes noted above will need to be implemented in SFY 2015 as State Special Education Aids will use prior year data to calculate the SFY 2016 aid. Al Hague will continue to provide program approvals for contracts and equipment as well as technical assistance. Mike Landers will be the primary contact for the Transition Disabled EDRS for SFY 2015.

If you should have any questions, please do not hesitate to contact me at 651-582-8889 or email to george.holt@state.mn.us.