1. Special Education – 2016/2017 Funding and Surplus Management.
March, 2017

2. Table of Contents - Special Education Funding
Background
Increase of the 2016/2017 funding compared the 2015/2016 fiscal year
Funding authority: Fixed contribution starting in 2016/2017 fiscal year
Reinvestment of surplus
Concept of services rendered and acceptance by the Department that First Nations may record deferred revenues for two years (transition)
Recommended accounting presentation including examples
Overview of eligible expenses (direct and indirect services)
Conclusion and reference

3. Background
INAC significantly increased funding for Special Education in 2016/2017.
Aboriginal regional school organizations (FNEC and the Tshakapesh Institute) and First Nations received the official confirmation of the funding increase only during the 2016/2017 fiscal year.
It is possible that many First Nations will not be able to spend all of the 2016/2017 funding before March 31, 2017.
Fortunately, the funding authority has been modified from a “Set Contribution" in 2015/2016 to a “Fixed Contribution" for the years 2016/2017 and beyond, allowing the reinvestment of unexpended surpluses.
Important: no surplus / unexpended funds can be retained by the beneficiary to improve its financial health.

4. Concept of services rendered and acceptance by the Department that First Nations may record deferred revenues for two years (transition)
Where the expenditures exceed 85% of the funding provided by the FNEC, we will consider that the service has been rendered. The surplus, if any, will be treated as an unexpended fund to be reinvested in the same activity in the following year. In addition, recipients must confirm by to the Funding organization (FNEC, Tshakapesh Institute or INAC) that the surplus will be reinvested in Special Education in the following year.
Where expenditures will totalize less than 85% of funding provided by the FNEC, the service will not be considered as being completely rendered. The Recipient (First Nation) will be required to record a deferred revenues to the following year in its financial statements and must submit a detailed Reinvestment Plan to the Funding organization (FNEC, Tshakapesh Institute or INAC);
FNEC, Tshakapesh Institute or INAC will agree that First Nations will record deferred revenues for services not completely rendered for a period of two years (maximum carry-over until );

5. Suggested accounting presentation (examples)

6. Example: ABC First Nation

7. Example: XYZ First Nation

8. Example: JKL First Nation

9. Direct Services – Eligible Expenses
Should reflect 75 % or more of Special Education Program (SEP) expenditures.
Salary and employee benefits for special education teachers & teacher’s aides and paraprofessional educators;
Organizing and conducting student assessments using provincially recognized methods and techniques;
Development, monitoring & follow-up of individual education plans (IEPs);
Professional services: educational psychologist, speech and language therapists, occupational therapists, physical therapist, resource and learning assistance staff, counsellors, social workers, etc.;
Acquisition of assessment and instructional materials & assistive technologies;
Tuition, accommodation and transportation costs for students having to attend a provincial school or specialized school whose program is designed to meet their special education high cost needs (e.g. deafblind);
Elder services (counselling activities for families of special needs students.

10. Indirect Services – Eligible Expenses
Should not exceed 25 % of the SEP budget.
Design & implementation of special education programs and services;
Professional development & other instructional support, such as information disseminating, training for teachers, paraprofessional and parents, workshops, conferences, professional accreditations, etc.;
Costs associated with accommodations;
Research & development or adaptation of approaches and programs, instructional materials, and equipment that are culturally appropriate for First Nations;
Acquisition of professional & consultative services: education psychologist, speech and language therapists, resource and learning assistance for staff, counsellors, etc.;
Coordination of SEP with other communities programs, social and health services such as early childhood development, HeadStart, child care, immunization programs and Fetal Alcohol Spectrum Disorders (FASD) programming;

11. Indirect Services – Eligible Expenses
Collaborations with provincial education authorities for the purpose of maintaining agreements for on-reserve students attending provincial or specialized schools;
Information and training to parents, family and community members involved with special needs children, including community awareness programs;
Collection, maintenance, and reporting of program and services data and information in accordance with program and financial reporting requirements.

12. Conclusion and reference
Important to share this information with your Band Councils and the Finance Sector of each of your organizations.
For more information - contact your aboriginal regional education organization (FNEC or Tshakapesh Institute)
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