Auxiliary Services Fund FAQ

August Payment and Compliance Questions

Record Keeping Questions


August Payment and Compliance Questions

    1. What happens to a non-religious chartered nonpublic school’s funds that were sent to the public school district in August?
    If the non-religious nonpublic school did not report to the Ohio Department of Education in August that it qualified for direct payment of Auxiliary Services funds, the August payment was sent to the public school district where the school is located. The public school district must complete a final expenditure report for expenses incurred for the non-religious nonpublic school, and return unused funds by Jan. 12, 2018. Non-religious nonpublic schools will receive the public school district’s returned funds in February 2018.  

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    2. How will the public school district complete the final expenditure report that is due by Jan. 12, 2018?

    The final expenditure report that public school districts are required to complete for the non-religious schools’ August payment will be in a paper format.  The SF-230s is available here. Public school districts are required to return the completed final expenditure report and unused funds (checks made payable to Treasurer State of Ohio) to the Department:
                      Ohio Department of Education
                      School Finance Program Administrator
                      25 S. Front St., MS G-04
                      Columbus, OH 43215

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    3. Is the public school district able to claim an administrative fee for the August payment?
    If the public school district processed payments for services, materials or equipment for the non-religious nonpublic school, the public school can claim the 4 percent administrative fee on the amount spent. If the public school district did not process payments, the public school may not claim the administrative fee, and the entire August payment shall be returned to the Department. 

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    4. Can a non-religious chartered nonpublic school continue to receive Auxiliary Services funds through the public school district?
    Yes.  By the first day of April of each odd-numbered year, a non-religious chartered nonpublic school shall notify the department and the school district in which the school is located to elect to receive Auxiliary Service funds through the school district.  More information on this process will be provided in early 2019.

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Record Keeping Questions

    1. Are the materials and equipment purchased with the August payment for the non-religious nonpublic school property of the public school district?
    Items purchased prior to the effective date of House Bill 49, Sept. 29, 2017, are property of the public school district. Each school district shall label materials, equipment, computer hardware or software, textbooks, and digital texts purchased or leased for loan to a nonpublic school. A district need not label materials, equipment, computer hardware or software, textbooks, or digital texts that the district determines are consumable in nature or have a value of less than $200.  

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    2. Do non-religious chartered nonpublic schools need to track Auxiliary Services expenditures?
    Non-religious chartered nonpublic schools must have financial accounting standards that allow for periodic review of expenditures. The review could include the examination of purchase orders (POs), invoices, payment transaction reports, and/or the schools written purchasing procedures to ensure allowable expenditures under Auxiliary Services funds. To review expenses, it is important that a non-religious chartered nonpublic school separate and account for revenue and expenditures associated with Auxiliary Services funds. The Department recommends schools establish a special cost center or class within the school’s accounting systems to ensure expenditures made with Auxiliary Services funds are clearly identified.

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    3. May the non-religious chartered nonpublic school charge the 4 percent administrative cost to the Auxiliary Services funds?
    An administrative cost is not an allowable expenditure for non-religious chartered nonpublic schools use of Auxiliary Services funds.

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    4. Are there any specific approvals or processes a non-religious chartered nonpublic school needs to follow to spend Auxiliary Services funds?
    The Department does not have a prescribed method for making expenditures from the Auxiliary Services fund. If schools can document expenditures, they may follow their own purchasing practices. Pre-approval by the Department or a public school district is not required. Questions about allowable uses of Auxiliary Services funds should be directed to the school’s Area Coordinator.

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    5. Do non-religious chartered nonpublic schools need to complete a final expenditure report for Auxiliary Services funds?
    Non-religious chartered nonpublic schools receiving funds directly from the state will be required to complete a final expenditure report at the end of each fiscal year. 

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    6. Do non-religious nonpublic schools need to return unexpended funds at the end of the biennium?
    Yes. Unexpended funds, including interest income, from the first year of the biennium can be carried forward to the second year of the biennium.  The law requires unexpended funds, including interest income, to be returned at the end of each biennium. 

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    7. Do non-religious chartered nonpublic schools need to label materials, equipment and textbooks purchased with Auxiliary Services funds?
    Materials, equipment and textbooks purchased with Auxiliary Services funds must be labeled as being purchased with State Auxiliary Services funds.

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    8. Do non-religious chartered nonpublic schools need to maintain an inventory of materials, equipment and textbooks purchased with Auxiliary Services funds?
    Yes. Textbooks, materials and equipment, which are not consumable and which are reusable in future years, must be inventoried. This will allow the Department to review expenditures.

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Last Modified: 3/19/2018 10:08:58 AM