CHAPTER 98
FINANCIAL MANAGEMENT OF CATEGORICAL FUNDING
DIVISION I
GENERAL PROVISIONS
281—98.1(256,257) Definitions. For the purposes of this chapter, the following definitions apply:
“Budgetary allocation” means the portion of the funding that is specifically earmarked for a particular purpose or designated program and that, in the case of the general fund, has been rolled into, or added to, the school district cost per pupil or school district regular program cost. Budgetary allocations may include both state aid and property tax. Budgetary allocations increase budget authority on the first day of the fiscal year for which the allocation has been certified or on the date that the school budget review committee approves the modified supplemental amount for a specific purpose or program; the budget authority remains even if the full amount of revenue is not received or if the local board does not levy a cash reserve. There is no assumption that a school district or area education agency will receive the same amount of revenue as it has received in budget authority due to delinquent property taxes, cuts in state aid, or legislative decisions to fund other instructional programs off the top of state aid. The school district or area education agency must expend the full amount of budget authority for the specific purposes for which it was earmarked. When the school district or state cost per pupil is transferred from one school district to another school district in the form of tuition as required by the Iowa Code, any budgetary allocation that is included in the school district or state cost per pupil shall be considered transferred to the receiving school district and shall be expended for the specific purpose for which it was earmarked.
“Categorical funding” means financial support from state and federal governments that is targeted for particular categories of students, special programs, or special purposes. This support is in addition to school district or area education agency general purpose revenue, is beyond the basic educational program, and most often has restrictions on its use. Where categorical funding requires a local match, that local match also is considered to be categorical funding. Categorical funding includes both grants in aid and budgetary allocations. Although grants in aid and budgetary allocations are both categorical funding, they are defined separately to distinguish unique characteristics of each type of categorical funding.
“Community education” means a life-long education process concerning itself with every facet that affects the well-being of all citizens within a given community. It extends the role of the school from one of teaching children through an elementary and secondary program to one of providing for citizen participation in identifying the wants, needs, and concerns of the neighborhood community and coordinating all educational, recreational, and cultural opportunities within the community with community education being the catalyst for providing for citizen participation in the development and implementation of programs toward the goal of improving the entire community.
Community education energizes people to strive for the achievement of determined goals and stimulates capable persons to assume leadership responsibilities. It welcomes and works with all groups, it draws no lines. It is the one institution in the entire community that has the opportunity to reach all people and groups and to gain their cooperation.
“Grants in aid” means financial support, usually from state or federal appropriations, that is either allocated to the school district or area education agency or for which a school district or area education agency applies. This support is paid separately from state foundation aid. In the general fund, grants in aid become miscellaneous income and increase budget authority when the support is received as revenue.
“Supplement, not supplant” means that the categorical funding shall be in addition to general purpose revenues; that categorical funding shall not be used to provide services required by federal or state law, administrative rule, or local policy; and that general purpose revenues shall not be diverted for other purposes because of the availability of categorical funding. Supplanting is presumed to have occurred if the school district or area education agency uses categorical funding to provide services that it was required to make available under other categorical funding or law, or uses categorical funding to provide services that it provided in prior years from general purpose revenues, or uses categorical funding to provide services to a particular group of children or programs for which it uses general purpose revenues to provide the same or similar services to other groups of children or programs. These presumptions are rebuttable if the school district or area education agency can demonstrate that it would not have provided the services in question with general purpose revenues if the categorical funding had not been available.
“Technology” means hardware, noninstructional software and software required to provide functionality to the hardware, wireless presenters, networking and connectivity systems, computing storage, website development services, hardware carrying equipment, licensing, and technical assistance for installation of hardware, software, or software updates. Technology does not include such items as instructional software or textbook substitutes as defined in Iowa Code chapter 301, professional development, staff providing support to teachers or students, general supplies, district personnel or individuals/companies hired or contracted in lieu of district personnel, travel, printing costs or media services not listed in this definition, insurance, most purchased services, or similar district functions. Maintenance contracts do not meet the definition of “technology” unless they are actually a license renewal fee; Internet subscriptions, licenses, or fees; cable or satellite services; or very similar services.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.2(256,257) General finance. The categorical funding provided for various purposes to school districts and area education agencies includes general financial characteristics that are detailed in the following subrules.
	98.2(1) Indirect cost recovery. Categorical funding provided by the state to school districts or area education agencies is not eligible for indirect cost recovery unless the Iowa Code section authorizing the funding or allocation expressly states that indirect cost recovery is permitted from that source. If the Iowa Code permits indirect cost recovery, the school district or area education agency shall utilize its restricted indirect cost rate developed by the department for federal programs from data submitted by the school district or area education agency on its certified annual report.
	98.2(2) Restriction on supplanting. Categorical funding shall supplement, but shall not supplant, expenditures in the appropriate fund into which the categorical funding is deposited and accounted for, unless the Iowa Code section authorizing the funding or allocation expressly states that supplanting is permitted from that source.
	98.2(3) Mandatory carryforward. Notwithstanding the flexibility account as described in rule 281—98.27(257,298A), any portion of categorical funding provided by the state that is not expended by the end of the fiscal year in which it was received by or for which it was allocated to the school district or area education agency shall be carried forward as a reserved fund balance and added to the subsequent year’s budget for that purpose. The funding can only be expended for the purposes permitted for that categorical funding. Where a local match is required for categorical funding, the amount unexpended at the end of the fiscal year that is carried forward shall not be used as part of the required local match.
	98.2(4) Discontinued funding. In the event that a categorical funding source is discontinued and an unexpended balance remains, the school district or area education agency may do one of, or a combination of, the following:
	a. 	Carry forward the unexpended balance and expend the remaining balance within the subsequent 24 months for the purposes which were allowed in the final year that the funding was allocated or granted prior to discontinuation unless a rule in this chapter provides for a longer period. This option does not apply to market factor incentive pay funding, which may be carried forward until expended, but any expenditures from the market factor incentive pay funding must be appropriate under Iowa Code section 284.11 (2007 Iowa Code and 2007 Iowa Code Supplement).
	b. 	Transfer the unexpended balance to the flexibility account as described in rule 281—98.27(257,298A).
	98.2(5) Expenditures. Expenditures from categorical funding shall be limited to direct costs of providing the program or service for which the funding was intended. Expenditures shall not include costs that are allocated costs or that are considered indirect costs or overhead. Expenditures for the functions of administration, business and central services, operation and maintenance of plant, transportation, enterprise and community service operations, facility acquisition and construction, or debt service generally are not allowed from categorical funding unless expressly allowed by the Iowa Code or if the expenditure represents a direct, allowable cost. In order for costs of administration, business and central services, operation and maintenance of plant, transportation, or enterprise and community service operations to be considered direct costs, the costs must be necessary because of something that is unique to the program that is causing the need for the service, not otherwise needed or not otherwise provided to similar programs; the costs must be in addition to those which are normally incurred; and the costs must be measurable directly without allocating. Where a local match is required for categorical funding, that local match requirement shall not be met by the use of other categorical funding except where expressly allowed by the Iowa Code. Expenditures shall not include reimbursing the school district or area education agency for expenditures it paid in a previous year in excess of the funding available for that year.
	98.2(6) Restriction on duplication. The school district or area education agency shall not charge the same cost to more than one funding source.
	98.2(7) Excess expenditures. The school district or area education agency shall not charge to categorical funding more expenditures than the total of the current year’s funding or allocation, plus any carryforward balance from the previous year, plus any moneys designated from the flexibility account as described in rule 281—98.27(257,298A).
	98.2(8) Commingling prohibited. Categorical funding shall not be commingled with other funding. All categorical funding shall be accounted for separately from other funding. School districts and area education agencies shall use a project code and program code as defined by Uniform Financial Accounting for Iowa School Districts and Area Education Agencies, as appropriate or required.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.3 to 98.10  Reserved.
DIVISION II
APPROPRIATE USE OF BUDGETARY ALLOCATIONS
281—98.11(257) Categorical and noncategorical student counts. The certified enrollment data collection includes both student counts related to budgetary allocations for the subsequent budget year that are provided for the purpose of offering a program that is in addition to the basic educational program for a specific category of students and student counts that are general in nature and can be used for any legal general fund purpose. Student counts that are general in nature are used to generate funding through the school aid foundation formula and are not intended to fund a specific program or a specific category of students. General student counts include the basic enrollment of full-time resident students.
Counts for part-time nonpublic students participating in public school classes pursuant to Iowa Code section 257.6(3) and counts for part-time dual enrolled competent private instruction students in grades 9 through 12 are the full-time equivalent enrollment of a regularly enrolled student. Counts for dual enrolled competent private instruction students in grades lower than grade 9 are the legislatively set equivalent of a regularly enrolled full-time student. Counts for part-time nonpublic students and for part-time dual enrolled competent private instruction students in grades 9 through 12 who participate in the postsecondary enrollment option Act classes are the full-time equivalent of a regularly enrolled student based on cost. Because these counts are the full-time equivalent of a regularly enrolled student, and are not in addition to the full-time equivalent, the funding generated within the school aid foundation formula based on these counts is considered general in nature.
Student counts related to categorical budgetary allocations are those that generate funding intended to be used for only that specific category of students being counted or for the specific program for which the additional counts are authorized in the Iowa Code.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.12(257,299A) Home school assistance program. The home school assistance program (HSAP) is a program for a specific category of students and is provided outside the basic educational program provided to regularly enrolled students by the school district. If a district offers a home school assistance program, the state foundation aid that the district receives pursuant to Iowa Code section 257.6(1)“a”(5), and any amount designated for this purpose from the flexibility account as described in rule 281—98.27(257,298A), shall be expended for purposes of providing the home school assistance program. However, a district may use items and materials purchased for the home school assistance program for other purposes so long as this use does not prevent or interfere with the item’s or material’s use by parents or students utilizing the program.
	98.12(1) Appropriate uses of categorical funding. Appropriate uses of the home school assistance program funding include, but are not limited to, the following:
	a. 	Instruction for students and assistance for parents with instruction.
	b. 	Services to support students enrolled in a home school assistance program, to support the teaching parents of the students, and to support home school assistance program staff.
	c. 	Salary and benefits for the supervising teacher of the home school assistance program. If the teacher is a part-time home school assistance program teacher and a part-time regular classroom teacher, then the portion of time that is related to providing the home school assistance program can be charged to the program, but the regular classroom portion cannot.
	d. 	Salary and benefits for clerical and office staff of the home school assistance program. If the staff member’s employment supports other programs of the school district, only that portion of the staff member’s salary and benefits that is related to providing the home school assistance program can be charged to the program.
	e. 	Staff development for the home school assistance program teacher.
	f. 	Travel for the home school assistance program teacher.
	g. 	Resources, materials, computer software, supplies, equipment, and purchased services (1) that are necessary to provide the services of home school assistance and (2) that will remain with the school district for its home school assistance program.
	h. 	A copier and computer hardware that support the home school assistance program.
	i. 	Student transportation exclusively for home school assistance program-approved field trips or other educational activities.
	98.12(2) Inappropriate uses of categorical funding. Inappropriate uses of the home school assistance program funding include, but are not limited to, indirect costs or use charges; operational or maintenance costs other than those necessary to operate and maintain the program; capital expenditures other than equipment or the lease or rental of space to supplement existing schoolhouse facilities for the program; student transportation except in cases of home school assistance program-approved field trips or other educational activities; administrative costs other than the costs necessary to administer the program; concurrent and dual enrollment costs, including postsecondary enrollment options program costs; or any other expenditures not directly related to providing the home school assistance program. A home school assistance program shall not provide moneys or resources paid for with this program funding to parents or students utilizing the program. For capital expenditures for lease or rental of classrooms or facilities for this program, the cost will be expended from a capital projects fund. A reimbursement for that cost related to the program will be an interfund transfer to the capital project fund from the program funding.
	98.12(3) Flexibility account. All or a portion of the amount remaining unexpended and unobligated at the end of a budget year beginning on or after July 1, 2017, may be transferred for deposit into the flexibility account established under Iowa Code section 298A.2, provided all statutory requirements of the home school assistance program have been met, including funding all requests for services and materials from parents or guardians of students eligible to access the program.
[ARC 8054B, IAB 8/26/09, effective 9/30/09 (See Delay note at end of chapter); ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 0012C, IAB 2/22/12, effective 3/28/12 (See Delay note at end of chapter); ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.13(256C,257) Statewide voluntary four-year-old preschool program. The statewide voluntary four-year-old preschool program is a program for a specific category of students. Funding for the program is for the purpose of providing a high-quality early learning environment for four-year-old children whose families choose to access such programs.
	98.13(1) Appropriate uses of categorical funding. Foundation aid funding provided for the program may be used by approved local programs and community providers for any purpose designated by the board of directors of the school district to meet standards for high-quality preschool instruction and for purposes that directly or indirectly benefit students enrolled in the approved local program. These purposes include, but are not limited to, the following:
	a. 	Functions of instruction, including instructional equipment and supplies and material and equipment designed to develop students’ large and small motor skills.
	b. 	Functions of student support services, including translation services.
	c. 	Functions of staff support services, including professional development for preschool teachers.
	d. 	Up to 5 percent of the allocation can be used for actual documented costs of program administration, outreach activities, and rent for facilities not owned by the school district.
	e. 	Food and beverages used by enrolled students.
	f. 	Safety equipment.
	g. 	Playground equipment and repair costs.
	h. 	Costs of transportation involving children participating in the approved program. The costs of transporting other children associated with the preschool program or transporting as provided in Iowa Code section 256C.3(3)“h” may be prorated by the school district.
	i. 	Other direct costs that enhance the approved local program, including contracting with community providers for such services.
	j. 	Costs of attendance for a child who is younger or older than four years old and is enrolled in the program may be paid from these funds, or from another school district account or fund from which preschool program expenditures are authorized by law, if space and funding are available; however, the child shall not be counted for statewide voluntary preschool program funding purposes.
	98.13(2) Pass-through funding to community-based providers. The school district shall pass through to a community-based provider for each eligible pupil enrolled in the district’s approved local program not less than 95 percent of the per-pupil amount.
	a. 	The community-based provider may use up to 10 percent of the 95 percent portion for documented allowable administrative and operational costs of providing the district’s approved local program. The costs of outreach activities, rent for facilities not owned by the school district, and transportation for children participating in the preschool program are also permissive costs allowed as part of the 10 percent under this paragraph.
	b. 	Any portion of the 95 percent not documented as expended for direct instruction or administrative and operational costs as allowed by this rule shall be refunded to the district annually on or before July 1.
	c. 	Any portion refunded to the district shall be added to the total amount available for the district’s approved local program for the subsequent school year, excluding the portion of such unexpended and unobligated funding that the school district authorizes to be transferred to the district’s flexibility account described in rule 281—98.27(257,298A).
	98.13(3) Inappropriate uses of categorical funding. Inappropriate uses of the statewide voluntary four-year-old preschool program funding include, but are not limited to, indirect costs or use charges, capital expenditures other than equipment, facility acquisition not expressly allowed by the Iowa Code, construction, debt service, operational or maintenance costs or administrative costs that supplant or that exceed 5 percent, or any other expenditures not directly related to providing the statewide voluntary four-year-old preschool program or that supplant existing public funding for preschool programming.
	98.13(4) Flexibility account. All or a portion of the amount remaining unexpended and unobligated at the end of a budget year beginning on or after July 1, 2017, may be transferred for deposit into the flexibility account established under Iowa Code section 298A.2 and described in rule 281—98.27(257,298A), provided the board of directors of the school district has determined all statutory requirements for the use of such funding have been met.
In order to transfer funds to the flexibility account, the district must have provided preschool programming during the fiscal year for which funding remained unexpended and unobligated to all eligible students for whom a timely application for enrollment was submitted.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 0518C, IAB 12/12/12, effective 1/16/13; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.14(257) Supplementary weighting. Supplementary weighting provides funding in addition to the student count that generates general purpose revenues and is for the purpose of incenting sharing of students and staff between school districts and providing postsecondary opportunities for qualified students. It is assumed that supplementary weighting covers only a portion of the costs of sharing or providing postsecondary opportunities and shall be fully expended within the fiscal year. Therefore, school districts are not required to account for the supplementary weighting funding separate from the general purpose revenues.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.15(257) Operational function sharing supplementary weighting. Operational function sharing supplementary weighting provides funding in addition to the student count that generates general purpose revenues and is for the purpose of incenting sharing of management-level staff. It is assumed that operational function sharing supplementary weighting covers only a portion of the costs of sharing management-level staff, a curriculum director, a school guidance or licensed mental health counselor, or a licensed independent social worker and shall be fully expended within the period of sharing. Therefore, school districts are not required to account for the operational function sharing supplementary weighting funding separate from the general purpose revenues.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 4529C, IAB 7/3/19, effective 8/7/19]
281—98.16(257,280) Limited English proficiency (LEP) weighting. Limited English proficiency weighting provides funding in addition to the student count that generates general purpose revenues and is for the purpose of providing funding for the excess costs of instruction of limited English proficiency students above the costs of instruction of pupils in a regular curriculum. In addition, the school budget review committee may grant a modified supplemental amount to continue funding of the excess costs beyond the five years of weighting. Funding for the limited English proficiency weighting and the modified supplemental amount for limited English proficiency programs are both categorical funding and may have different restrictions than the federal limited English proficiency funding.
	98.16(1) Appropriate uses of categorical funding. Appropriate uses of funding for the limited English proficiency program are those that are direct costs of providing instruction which supplement, but do not supplant, the costs of the regular curriculum. These expenditures include, but are not limited to, salaries and benefits of teachers and paraeducators; instructional supplies, textbooks, and technology; classroom interpreters; support services to students served in limited English proficiency programs above the services provided to pupils in regular programs; support services to instructional staff such as targeted professional development, curriculum development or academic student assessment; and support services provided to parents of limited English proficiency students and community services specific to limited English proficiency.
	98.16(2) Inappropriate uses of categorical funding. Inappropriate uses of funding for the limited English proficiency program include, but are not limited to, indirect costs, operational or maintenance costs, capital expenditures other than equipment, student transportation, administrative costs, or any other expenditures not directly related to providing the limited English proficiency program beyond the scope of the regular classroom.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.17(256B,257) Special education weighting. Special education weighting provides funding in addition to the student count that generates general purpose revenues for the purpose of providing additional instruction and services to an identified group of students.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 2310C, IAB 12/9/15, effective 1/13/16]
281—98.18(257) At-risk program, alternative program or alternative school, and potential or returning dropout prevention program formula supplementary weighting. Formula supplementary weighting provides funding in addition to the student count that generates general purpose revenues for the purpose of providing additional instruction and services to students identified as at risk, potential or returning dropouts, and secondary students attending an alternative program or alternative school pursuant to Iowa Code section 257.11(4)“a.” 
	98.18(1) Appropriate uses of categorical funding. Appropriate uses of at-risk formula supplementary weighting funding include costs to develop or maintain programs for at-risk pupils, alternative programs and alternative schools for secondary students, and returning dropout and dropout prevention programs. Appropriate uses include those identified in subrule 98.21(2).
	98.18(2) Inappropriate uses of categorical funding. Inappropriate uses of at-risk formula supplementary weighting program funding include those identified in subrule 98.21(3).
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.19(257) Reorganization incentive weighting. Reorganization incentive weighting provides funding in addition to the student count that generates general purpose revenues and is for the purpose of incenting reorganization of school districts to increase student learning opportunities. It is assumed that reorganization incentive weighting covers only a portion of the costs of reorganizing and shall be fully expended within the fiscal year. Therefore, school districts are not required to account for the reorganization incentive weighting funding separate from the general purpose revenues.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.20(257) Gifted and talented program. Gifted and talented program funding is included in the school district cost per pupil calculated for each school district under the school foundation formula. The per-pupil amount increases each year by the supplemental state aid percentage. This amount must account for not more than 75 percent of the school district’s total gifted and talented program budget. The school district must also provide a local match from the school district’s regular program district cost, and the local match portion must be a minimum of 25 percent of the total gifted and talented program budget. In addition, school districts may receive donations and grants, and the school district may contribute more local school district resources toward the gifted and talented program. The 75 percent portion, the local match, amounts designated from the flexibility account as described in rule 281—98.27(257,298A), and all donations and grants shall be accounted for as categorical funding.
The purpose of the gifted and talented funding described in Iowa Code section 257.46 is to provide for identified gifted students’ needs beyond those provided by the regular school program pursuant to each gifted student’s individualized plan. The funding shall be used only for expenditures that are directly related to providing the gifted and talented program.
	98.20(1) Appropriate uses of categorical funding. Appropriate uses of the gifted and talented program funding include, but are not limited to:
	a. 	Salary and benefits for the teacher of gifted and talented students. If the teacher is a part-time gifted and talented and a part-time regular classroom teacher, then the portion of time that is related to the gifted and talented program may be charged to the program, but the portion of time that is related to the regular classroom shall not.
	b. 	Staff development for the gifted and talented teacher.
	c. 	Resources, materials, software, supplies, equipment, and purchased services that meet all of the following criteria:
	(1)	Meet the needs of K through 12 identified students,
	(2)	Are beyond those provided by the regular school program,
	(3)	Are necessary to provide the services listed on the gifted students’ individualized plans, and
	(4)	Will remain with the K through 12 gifted and talented program.
	d. 	Student transportation exclusively for approved gifted and talented program field trips or other educational activities.
	98.20(2) Inappropriate uses of categorical funding. Inappropriate uses of the gifted and talented program funding include, but are not limited to, indirect costs or use charges, operational or maintenance costs, capital expenditures other than equipment, student transportation other than field trips exclusive to this program, administrative costs, or any other expenditures not directly related to providing the gifted and talented program beyond the scope of the regular classroom.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.21(257) At-risk program, alternative program or alternative school, and potential or returning dropout prevention program—modified supplemental amount. A modified supplemental amount is available through a school district-initiated request to the school budget review committee pursuant to Iowa Code sections 257.38 through 257.41. This amount must account for no more than 75 percent of the school district’s total at-risk program, alternative program or alternative school, and potential or returning dropout budget. The school district must also provide a local match from the school district’s regular program district cost, and the local match portion must be a minimum of 25 percent of the total program budget. In addition, school districts may receive donations and grants, and the school district may contribute more local school district resources toward the program. The 75 percent portion, local match, previous year carryforward, amounts designated from the flexibility account as described in rule 281—98.27(257,298A), and all donations and grants shall be accounted for as categorical funding.
	98.21(1) Purpose of categorical funding. The purpose of the modified supplemental amount is to provide funding to meet the needs of identified students for costs in excess of the amount received under rule 281—98.18(257) pursuant to Iowa Code section 257.11(4). The funding shall be used only for expenditures that are directly related to the district’s board-adopted program plan established pursuant to Iowa Code sections 257.38 through 257.41.
	a. 	Returning dropouts are resident pupils who have been enrolled in a school district in any of grades 7 through 12 who withdrew from school for a reason other than transfer to another school or school district and who subsequently reenrolled in a public school in the school district.
	b. 	Potential dropouts are resident pupils who are enrolled in a school district who demonstrate poor school adjustment as indicated by two or more of the following:
	(1)	High rate of absenteeism, truancy, or frequent tardiness.
	(2)	Limited or no extracurricular participation or lack of identification with school, including but not limited to expressed feelings of not belonging.
	(3)	Poor grades, including but not limited to failing in one or more school subjects or grade levels.
	(4)	Low achievement scores in reading or mathematics which reflect achievement at two years or more below grade level.
	(5)	Children in grades kindergarten through 3 who meet the definition of at-risk children adopted by the department of education.
	98.21(2) Appropriate uses of categorical funding. Appropriate uses of the funding for a board-adopted program include, but are not limited to:
	a. 	Salary and benefits for staff, including but not limited to instructional staff, instructional support staff, administrative staff, and guidance counselors; salary and benefits or contract payments for psychologists licensed under Iowa Code chapter 154B, licensed independent social workers or master social workers under Iowa Code chapter 154C, licensed mental health counselors under Iowa Code chapter 154D; and salaries and benefits for school-based youth services staff dedicated to providing services directly and exclusively to the identified students participating in the adopted program beyond the services provided by the school district to students who are not identified as at risk or as potential or returning dropouts. However, if the staff person works part-time or on a contract basis with students who are participating in the approved program and has another unrelated staff assignment, only the portion of the person’s time that is related to the program or with such students may be charged to the program funding. The school district shall have the authority to designate in its adopted program plan the portion of the person’s time and related salary and benefits or contract payment amount dedicated to this purpose.
For purposes of this paragraph, an alternative setting may be necessary to provide for a program which is offered at a location off school grounds and which is intended to serve student needs by improving relationships and connections to school, decreasing truancy and tardiness, providing opportunities for course credit recovery, or helping students identified as at risk to accelerate through multiple grade levels of achievement within a shortened time frame.
	b. 	Professional development for all staff identified in paragraph 98.21(2)“a” working with identified students under an adopted program.
	c. 	Research-based resources, materials, software, supplies, equipment, and purchased services that meet all of the following criteria:
	(1)	Meet the needs of K through grade 12 identified students,
	(2)	Are beyond those provided by the regular school program,
	(3)	Are necessary to provide the services listed in the school district’s adopted at-risk or returning dropout and dropout prevention program plan, and
	(4)	Will remain with the K through grade 12 at-risk program, alternative program or alternative school, or returning dropout and dropout prevention program.
	d. 	Transportation provided by the school district exclusively to transport identified students to an alternative school or alternative program outside a student’s regular attendance center, located in and provided by another Iowa school district, or an extended school year program.
	e. 	The portion of the maximum tuition allowed by Iowa Code section 282.24 that corresponds to the portion exclusively providing direct additional instruction and services to an identified group of students above the costs of instruction of pupils in a regular curriculum.
	f. 	Instructional costs necessary to address the behavior of a child during instructional time when those services are not otherwise provided to students who do not require special education and when the costs exceed the costs of instruction of pupils in a regular curriculum, the costs exceed the maximum tuition rate prescribed in Iowa Code section 282.24, the child has not been placed in a facility operated by the state, and all of the following apply:
	(1)	The child does not require special education.
	(2)	The child is not placed by the department of human services or a court in a residential or day treatment program where the treatment necessary to address the student’s behavior was included in the contract with the placement agency.
	(3)	The child is not placed in a hospital unit, health care facility, psychiatric medical institution for children or other treatment facility where the cost of treatment necessary to address the student’s behavior is covered by insurance or Medicaid.
	(4)	The board of directors of the district of residence has determined that the child is likely to inflict self-harm or likely to harm another student.
	g. 	Costs incurred for a program intended to address high rates of absenteeism, truancy, or frequent tardiness.
	h. 	Amounts that a school district receives as formula supplementary weighting pursuant to Iowa Code section 257.11(4)“a” or as a modified supplemental amount received under Iowa Code section 257.41 may be used in the budget year for purposes of providing districtwide, buildingwide, or grade-specific at-risk and dropout prevention programming targeted to nonidentified students.
	i. 	School security personnel costs.
	j. 	Any purpose determined by the board of directors that directly benefits students participating in the adopted program.
	98.21(3) Inappropriate uses of categorical funding. Inappropriate uses of the modified supplemental amount program funding include, but are not limited to, indirect costs or use charges, operational or maintenance costs, capital expenditures other than equipment, expenses related to the routine duties and activities performed by a staff member under paragraph 98.21(2)“a” with identified students that are also provided to all students, or any other expenditures not directly related to providing the board-adopted program beyond the scope of the regular classroom.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 0518C, IAB 12/12/12, effective 1/16/13; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19; ARC 4813C, IAB 12/18/19, effective 1/22/20]
281—98.22(257) Use of the unexpended general fund balance. The unexpended general fund balance refers to the fund balance remaining in the general fund at the end of the fiscal year.
	98.22(1) Authorization required. The school budget review committee may authorize a school district to spend a reasonable and specified amount from its unexpended general fund balance for either of the following purposes:
	a. 	Furnishing, equipping, and contributing to the construction of a new building or structure for which the voters of the school district have approved a bond issue as provided by law or the tax levy provided in Iowa Code section 298.2.
	b. 	The costs associated with the demolition of an unused school building, or the conversion of an unused school building for community use, in a school district involved in a dissolution or reorganization under Iowa Code chapter 275, if the costs are incurred within three years of the dissolution or reorganization.
	98.22(2) Appropriate uses of categorical funding. Appropriate uses of the unexpended general fund balance include a transfer from the general fund to the capital projects fund in the amount approved by the school budget review committee. The moneys in the capital projects fund shall be used exclusively for furnishing, equipping or constructing a new building or for demolishing an unused building.
	98.22(3) Inappropriate uses of categorical funding. Inappropriate uses of the unexpended general fund balance include, but are not limited to, expenditures for salaries or recurring costs.
	98.22(4) Mandatory reversion of unused funding. The portion of the unexpended general fund balance which is authorized to be transferred and expended shall increase budget authority. However, any part of the amount not actually spent for the authorized purpose shall revert to its former status as part of the unexpended general fund balance, and budget authority will be reduced by the amount not actually spent.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.23(257) Early intervention supplement.
	98.23(1) Appropriate uses of categorical funding. Appropriate uses of the early intervention-supplement funding include any general fund-appropriate use described in rule 281—98.61(24,143,257,275,279,280,285,297,298,298A,301,473,670).
	98.23(2) Inappropriate uses of categorical funding. Inappropriate uses of the early intervention-supplement funding include those which are inappropriate to the general fund as described in rule 281—98.61(24,143,257,275,279,280,285,297,298,298A,301,473,670).
	98.23(3) Deference. Deference shall be given to the decisions of school districts’ boards of directors in accordance with Iowa Code section 257.10.
This rule is intended to implement Iowa Code section 257.9(8).
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.24(257,284) Teacher salary supplement. A teacher may be employed in both an administrative and a nonadministrative position by a board of directors of a school district and shall be considered a part-time teacher for the portion of time that the teacher is employed in a nonadministrative position.
	98.24(1) Appropriate use of categorical funding. Appropriate use of the teacher salary supplement funding is limited to additional salary for teachers, including amounts necessary for the district to comply with statutory teacher salary minimums; the amount required to pay the employers’ share of the federal social security and Iowa public employees’ retirement system, or a pension and annuity retirement system established under Iowa Code chapter 294; and payments to another school district or districts as negotiated in a whole grade sharing agreement pursuant to Iowa Code section 282.10, subsection 4. Teacher salary supplement funding shall be fully expended in the fiscal year for which it is allocated; however, in the event that a small amount is remaining and it would not be cost-effective to reallocate the remainder to teachers in the fiscal year, the school district or area education agency shall carry forward the remainder and add it to the amount to be allocated to teachers in the subsequent fiscal year.
	98.24(2) Inappropriate uses of categorical funding. Inappropriate uses of the teacher salary supplement funding include any expenditures other than the appropriate use described in subrule 98.24(1) hereof.
	98.24(3) Deference. Deference shall be given to the decisions of school districts’ boards of directors in accordance with Iowa Code section 257.10.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.25(257,284) Teacher leadership supplement. The purpose of the teacher leadership supplement is to improve instruction and elevate the quality of teaching and student learning.
	98.25(1) Appropriate uses of categorical funding. Appropriate uses of teacher leadership supplement funding shall be used only to increase the payment for a teacher assigned to a leadership role pursuant to a framework or comparable system approved pursuant to Iowa Code section 284.15; to increase the percentages of teachers assigned to leadership roles; to increase the minimum teacher starting salary to $33,500; to cover the costs for the time mentor and lead teachers are not providing instruction to students in a classroom; for coverage of a classroom when an initial or career teacher is observing or co-teaching with a teacher assigned to a leadership role; for professional development time to learn best practices associated with the career pathways leadership process; and for other costs associated with a framework or comparable system approved by the department of education under Iowa Code section 284.15 with the goals of improving instruction and elevating the quality of teaching and student learning. “Payment for a teacher” as used in this rule means additional salary for teachers and the amount required to pay the employer’s share of the federal social security and Iowa public employees’ retirement system, or a pension and annuity retirement system established under Iowa Code chapter 294. Appropriate uses also include payments to another school district or districts as negotiated in a whole grade sharing agreement pursuant to Iowa Code section 282.10(4) and payment to another school district receiving an open enrolled student pursuant to Iowa Code section 282.18.
	98.25(2) Inappropriate uses of categorical funding. Inappropriate uses of teacher leadership supplement funding shall include any expenditures other than the appropriate uses described in subrule 98.25(1).
[ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.26(257,284) Educator quality professional development, also known as professional development supplement. The purpose of the funding is to implement the professional development provisions of the teacher career paths and leadership roles specified in Iowa Code section  284.15.
	98.26(1) Appropriate uses of categorical funding. Appropriate uses of the educator quality professional development funding, and any amount designated for professional development purposes from the flexibility account as described in rule 281—98.27(257,298A), are limited to providing professional development to teachers, including additional salaries for time beyond the normal negotiated agreement; activities and pay to support a beginning teacher mentoring and induction program that meets the requirements of Iowa Code section 284.5; pay for substitute teachers, professional development materials, speakers, and professional development content; textbooks and curriculum materials used for classroom purposes if such textbooks and curriculum materials include professional development; administering assessments pursuant to Iowa Code sections 256.7(21)“b”(1) and 256.7(21)“b”(2) if such assessments include professional development; costs associated with implementing the individual professional development plans; and payments to a whole grade sharing partner school district as negotiated as part of the new or existing agreement pursuant to Iowa Code subsection 282.10(4). The use of the funds shall be balanced between school district, attendance center, and individual professional development plans, and every reasonable effort to provide equal access to all teachers shall be made.
	98.26(2) Inappropriate uses of categorical funding. Inappropriate uses of educator quality professional development funding include, but are not limited to, any expenditures that supplant professional development opportunities the school district otherwise makes available.
	98.26(3) Deference. Deference shall be given to the decisions of school districts’ boards of directors in accordance with Iowa Code section 257.10.
	98.26(4) Transfer to flexibility account. All or a portion of the moneys received as professional development supplement that remain unexpended and unobligated at the end of a fiscal year may be transferred for deposit to the flexibility account as described in rule 281—98.27(257,298A).
In order to transfer funds to the flexibility account, all requirements of Iowa Code chapter 284 must be met.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.27(257,298A) Flexibility account. Beginning with the budget year beginning July 1, 2017, in accordance with Iowa Code section 298A.2, a flexibility account shall be established in the general fund of each school corporation if the school corporation has authorized a transfer of all or a portion of its unexpended and unauthorized funds from any of the following sources: the statewide voluntary preschool program, the professional development supplement, and the home school assistance program. Additionally, moneys from any other school district fund or general fund account can be transferred to the flexibility account if the program, purpose, or requirements for expenditure of such moneys have been repealed or are no longer in effect.
	98.27(1) Requirements for transfer to the flexibility account. In order to transfer funds to the flexibility account, the board of directors of the school corporation must determine that the statutory requirements for the source funds have been met.
	a. 	To transfer funds from the statewide voluntary preschool program, the school district must have provided preschool programming during the fiscal year for which funding remains unexpended and unobligated to all eligible students for whom a timely application for enrollment was submitted.
	b. 	To transfer funds from the home school assistance program, the school district must have funded all requests for services and materials from parents and guardians of students eligible to access the program.
	98.27(2) Requirements for use of funds deposited to the flexibility account. Expenditures from the flexibility account shall be approved by a resolution of the board of directors of the school corporation which meets all requirements stipulated in Iowa Code section 298A.2.
	98.27(3) Appropriate uses of categorical funding. Appropriate uses of funds transferred to the flexibility account are limited to the following:
	a. 	Start-up costs for an approved local program under the statewide voluntary preschool program.
	b. 	Support of the approved statewide voluntary preschool program.
	c. 	Professional development requirements under the professional development supplement.
	d. 	Support of the home school assistance program.
	e. 	Support of the at-risk program, alternative program or alternative school, and potential or returning dropout prevention program.
	f. 	Support of the approved gifted and talented program.
	g. 	Deposit into the unpaid student meals account as described in subrule 98.74(4).
	h. 	Any other general fund purpose.
	98.27(4) Inappropriate uses of categorical funding. Inappropriate uses of funds within the flexibility account include any expenditures for purposes not specified in Iowa Code section 298A.2.
	98.27(5) Deference. Deference shall be given to the decisions of school districts’ boards of directors in accordance with Iowa Code section 257.10.
[ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.28 to 98.39  Reserved.
DIVISION III
APPROPRIATE USE OF GRANTS IN AID
281—98.40(256,257,298A) Grants in aid. The state provides a large amount of categorical funding for various purposes to school districts and area education agencies in the form of grants in aid. Only those grants in aid allocated to a substantial number of the school districts and area education agencies through the department of education are included in these rules.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.41  Reserved.
281—98.42(257,284) Beginning teacher mentoring and induction program. The purpose of the beginning teacher mentoring and induction program is to promote excellence in teaching, enhance student achievement, build a supportive environment within school districts and area education agencies, increase the retention of promising beginning teachers, and promote the personal and professional well-being of teachers. Effective July 1, 2017, as established by 2017 Iowa Acts, chapter 172, this program is addressed within educator quality professional development as described in rule 281—98.26(257,284).
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.43(257,284A) Beginning administrator mentoring and induction program. The purpose of the beginning administrator mentoring and induction program is to promote excellence in school leadership, improve classroom instruction, enhance student achievement, build a supportive environment within school districts, increase the retention of promising school leaders, and promote the personal and professional well-being of administrators.
	98.43(1) Appropriate uses of categorical funding. Appropriate uses of the beginning administrator mentoring and induction program funding include costs to provide each mentor with the statutory award for participation in the school district’s beginning administrator mentoring and induction program; to implement the plan; and to pay any applicable costs of the employer’s share of contributions to federal social security and the Iowa public employees’ retirement system, or a pension and annuity retirement system established under Iowa Code chapter 294, for such amounts paid by the school district.
	98.43(2) Inappropriate uses of categorical funding. Inappropriate uses of beginning administrator mentoring and induction program funding shall include any costs that are not listed in subrule 98.43(1) as appropriate uses.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.44(257,301) Nonpublic textbook services. Textbooks adopted and purchased by a school district shall, to the extent funds are appropriated by the general assembly, be made available to pupils attending accredited nonpublic schools upon request of the pupil or the pupil’s parent under comparable terms as made available to pupils attending public schools.
	98.44(1) Appropriate uses of categorical funding. The appropriate use of the nonpublic textbook services funding shall be for the public school district to purchase nonsectarian textbooks for the use of pupils attending accredited nonpublic schools located within the boundaries of the public school district. “Textbooks” means books and loose-leaf or bound manuals, systems of reusable instructional materials or combinations of books and supplementary instructional materials which convey information to the student or otherwise contribute to the learning process, or electronic textbooks, including but not limited to computer software, applications using computer-assisted instruction, interactive videodisc, other computer courseware and magnetic media, and laptop computers or other portable personal computing devices which are used for nonreligious instructional use only.
In the event that a participating accredited nonpublic school physically relocates to another school district, textbooks purchased for the nonpublic school with funds appropriated for that purpose in accordance with the Iowa Code shall be transferred to the school district in which the accredited nonpublic school has relocated and may be made available to the accredited nonpublic school by the school district in which the nonpublic school has relocated. Funds distributed to a former school district for purposes of purchasing textbooks and that are unexpended shall also be transferred from the former school district to the school district in which the accredited nonpublic school has relocated.
In the event that a participating accredited nonpublic school ceases operation, textbooks purchased for the nonpublic school with funds appropriated for that purpose in accordance with the Iowa Code shall be returned to the public school district in which the nonpublic school was located. Funds provided for the purpose of purchasing textbooks for the nonpublic school that are unexpended shall be reverted to the department of education.
	98.44(2) Inappropriate uses of categorical funding. Inappropriate uses of nonpublic textbook services funding include, but are not limited to, reimbursements to accredited nonpublic schools for purchases made by the accredited nonpublic school, sectarian textbooks, computer hardware other than laptop computers or other portable personal computing devices which are used for nonreligious instructional use only, installation of hardware or other purchased services, teacher manuals or any other materials not available to the students attending the accredited nonpublic school, or any other expenditure that does not fit the definition of textbook. Funding provided for one nonpublic school located within the boundaries of the public school district shall not be used for another accredited nonpublic school, even if the accredited nonpublic school is associated with the same parent organization.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.45(279) Early literacy. School districts shall provide intensive supplemental reading instruction to any student who has been identified as persistently at risk in reading, based upon an assessment or through teacher observations. The student’s reading proficiency shall be reassessed by locally determined or statewide assessments. The student shall continue to be provided with intensive reading instruction, at grade levels beyond grade three if necessary, until the student is reading at grade level.
	98.45(1) Appropriate uses of categorical funding. Appropriate uses of early literacy program funding include, but are not limited to:
	a. 	Intensive supplemental instructional programs, instructional support, and assessment for identified students;
	b. 	Professional development for staff regarding early literacy program requirements, instructional materials, and assessments;
	c. 	Purchase of supplemental or specialized curriculum or instructional materials and assessments that are scientific, research-based and meet the standards of Iowa Code section 279.68 for identified students;
	d. 	If not already being provided with other sources of funding or general program funding, tutoring, mentoring, and extended school day, week, or year programs for identified students;
	e. 	Intensive summer literacy programs for identified students;
	f. 	Transportation services for identified students participating in intensive summer literacy programs;
	g. 	The fee charged by the department for implementation of the early warning assessment for literacy provided in accordance with Iowa Code sections 256.7(31) and 279.68, effective with the budget year beginning July 1, 2017, pursuant to 2017 Iowa Acts, chapter 172.
	98.45(2) Inappropriate uses of categorical funding. Inappropriate uses of early literacy program funding include, but are not limited to, indirect costs or use charges, operational or maintenance costs, capital expenditures other than equipment, student transportation other than as allowed in subrule 98.45(1), or administrative costs.
[ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.46 to 98.59  Reserved.
DIVISION IV
APPROPRIATE USE OF SPECIAL TAX LEVIES AND FUNDS
281—98.60(24,29C,76,143,256,257,274,275,276,279,280,282,283A,285,291,296,298,298A,300,301, 423E,423F,565,670) Levies and funds. Tax levies or funds that are required by law to be expended only for the specific items listed in statute shall be accounted for in a similar way to categorical funding. Each fund is mutually exclusive and completely independent of any other fund. No fund shall be used as a clearing account for another fund, no fund may retire the debt of another fund unless specifically authorized in statute, and transfers between funds shall be accomplished only as authorized in statute or as approved by the school budget review committee. Public funds shall not be used for private purposes.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.61(24,143,257,275,279,280,285,297,298,298A,301,473,670) General fund. All moneys received by a school corporation from taxes and other sources shall be accounted for in the general fund, except moneys required by law to be accounted for in another fund. If another fund specifically lists an expenditure to that other fund, it is assumed not to be appropriate to the general fund unless statute expressly states that it is an appropriate general fund expenditure. Each school district and each area education agency shall have only one general fund.
	98.61(1) Sources of revenue in the general fund. Sources of revenue in the general fund include all moneys not required by law to be accounted for in another fund and interest on the investment of those moneys. Proceeds from the sale or disposition of property other than real property, proceeds from the lease of real or other property, compensation or rent received for the use of school property, sales of school supplies, and sales or rentals of textbooks shall be accounted for in the general fund. Proceeds for loans for equipment pursuant to Iowa Code section 279.48, federal loans for asbestos projects pursuant to Iowa Code section 279.52, or loans for energy conservation projects pursuant to Iowa Code section 473.20 may be accounted for in the general fund. Any revenue or receipt described in law as “miscellaneous income” or related to the modified supplemental amount is restricted to the general fund.
	98.61(2) Appropriate uses of the general fund. Appropriate expenditures in the general fund include, but are not limited to, the following:
	a. 	Providing day-to-day operations to the district or area education agency, such as salaries, employee benefits, purchased services, supplies, and expenditures for instructional equipment.
	b. 	Purchasing school buses from unobligated funds on hand.
	c. 	Establishing and maintaining dental clinics for children and offering courses of instruction on oral hygiene.
	d. 	Employing public health nurses.
	e. 	Funding insurance agreements if the district has not certified a district management levy.
	f. 	Purchasing books and other supplies to be loaned, rented, or sold at cost to students.
	g. 	Purchasing safety eye-protective devices and safety ear-protective devices.
	h. 	Purchasing bonds and premiums for bonds for employees who have custody of funds belonging to the school district or area education agency or funds derived from extracurricular activities and other sources in the conduct of their duties.
	i. 	Paying assessed costs related to changes in boundaries, reorganization, or dissolution.
	j. 	Publishing the notices and estimates and the actual and necessary expenses of preparing the budget.
	k. 	Engraving and printing school bonds, in the case of a school district.
	l. 	Transferring interest and principal to the debt service fund when due for loans to purchase equipment authorized under Iowa Code section 279.48 and loans to be used for energy conservation measures under Iowa Code section 473.20, in the case of a school district, where the original proceeds were accounted for in the general fund.
	m. 	Transferring interest and principal to the debt service fund when due for lease purchase agreements related to capital projects authorized under Iowa Code subsection 273.3(7), in the case of an area education agency.
	n. 	Funding asbestos projects including the costs of inspection and reinspection, sampling, analysis, assessment, response actions, operations and maintenance, training, periodic surveillance, and developing of management plans and record-keeping requirements relating to the presence of asbestos in school buildings and its removal or encapsulation as authorized by the school budget review committee in the case of a school district.
	o. 	Funding energy conservation projects entered into with the department of natural resources or its duly authorized agents or representatives pursuant to Iowa Code section 473.20, in the case of a school district.
	p. 	Transferring to a capital projects fund as authorized by the school budget review committee, in the case of a school district.
	q. 	Transferring to a capital projects fund as funds are due to be expended on a capital project authorized under Iowa Code subsection 273.3(7), in the case of an area education agency.
	r. 	Start-up costs, other than land purchase, for the first year of a new student construction program.
	s. 	Beginning with the budget year beginning July 1, 2016, transferring, by board resolution, to the student activity fund an amount necessary to purchase or, beginning with the budget year beginning July 1, 2018, recondition protective and safety equipment required for any extracurricular interscholastic athletic contest or competition that is sponsored or administered by an organization as defined in Iowa Code section 280.13, as allowed under Iowa Code section 298A.2 pursuant to Iowa Code section 298A.8(2).
	t. 	Paying any other costs not required to be accounted for in another fund.
	98.61(3) Inappropriate uses of the general fund. Inappropriate expenditures in the general fund include the following:
	a. 	Purchasing land or improvements.
	b. 	Purchasing or constructing buildings or for capital improvements to real property except under special circumstances authorized by the school budget review committee, in the case of a school district, or except as authorized under Iowa Code subsection 273.3(7), in the case of an area education agency.
	c. 	Modifying or remodeling school buildings or classrooms even if to make them accessible.
	d. 	Paying interest and principal on long-term indebtedness for which the original proceeds were not accounted for in the general fund.
	e. 	Funding lease-purchases.
	f. 	Purchasing portable buildings.
	g. 	Paying individuals or private organizations that are not audited and allowed and related to goods received or services rendered.
	h. 	Paying other costs that are not operating or current expenditures for public education and are not expressly authorized in the Iowa Code.
	98.61(4) Special levies. The general fund includes two special levy programs available to school districts, but not to area education agencies, that are restricted by the Iowa Code.
	a. 	Instructional support program. The instructional support program is a district-initiated program to provide additional funding to the district’s general fund.
	(1)	Appropriate uses of instructional support program funding. Moneys received by a district for the instructional support program may be used for any general fund purpose except those listed as inappropriate uses in paragraph “b,” subparagraph (2).
	(2)	Inappropriate uses of instructional support program funding. Moneys received by a district for the instructional support program shall not be used as, or in a manner which has the effect of, supplanting funds authorized to be received under Iowa Code sections 257.41 (returning dropouts and dropout prevention programs), 257.46 (gifted and talented programs), 298.4 (management fund levy), and 298.2 (physical plant and equipment fund levy), or to cover any deficiencies in funding for special education instructional services resulting from the application of the special education weighting plan under Iowa Code section 256B.9.
	b. 	Educational improvement program. The educational improvement program is a district-initiated program available to districts in special circumstances to provide additional funding to the district’s general fund if the district already has the instructional support program in place.
	(1)	Appropriate uses of educational improvement program funding. Moneys received by a district for the educational improvement program may be used for any general fund purpose.
	(2)	Inappropriate uses of educational improvement program funding. Inappropriate uses of educational improvement program funding include any expenditure not appropriate to the general fund.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.62(279,296,298,670) Management fund. The purpose of this fund is to pay the costs of unemployment benefits; early retirement benefits; insurance agreements; liability insurance to protect the school districts from tort liability, loss of property, and environmental hazards; and judgments or settlements relating to such liability. The authority to establish a management fund is available to school districts but not to area education agencies.
	98.62(1) Sources of revenue in the management fund. Sources of revenue in the management fund include a property tax and interest on the investment of those moneys.
	98.62(2) Appropriate uses of the management fund. Appropriate expenditures in the management fund include the following:
	a. 	Costs of unemployment benefits as provided in Iowa Code section 96.31.
	b. 	Costs of liability insurance to protect the school districts from tort liability, loss of property, and environmental hazards.
	c. 	Costs of a final court judgment entered against the district or a settlement made for a tort liability claim including interest accruing on the judgment or settlement to the expected date of payment.
	d. 	Costs, including prepaid costs, of insurance agreements to protect the school districts from tort liability, loss of property, environmental hazards, or other risk associated with operations, but not including employee benefit plans.
	e. 	Costs of early retirement benefits to employees under Iowa Code section 279.46 to pay a monetary bonus, continuation of health or medical insurance coverage, or other incentives for encouraging employees to retire before the normal retirement date for employees 55 years of age or older who notify the board of directors prior to April 1 of the fiscal year that they intend to retire not later than the start of the next following school calendar.
	f. 	Costs of a physical inventory conducted solely for the purpose of insurance.
	g. 	Transfers to the debt service fund for payment of principal and interest when due on general obligation bonds issued under Iowa Code section 296.7 to protect the school district from tort liability, loss of property, environmental hazards, or other risk associated with operations.
	h. 	Transfers to the appropriate fund for the portion of an insurance claim which was eligible under the insurance agreement but was denied because it was within the deductible limit.
	i. 	Payment of costs of mediation and arbitration, including but not limited to legal fees associated with such mediation or arbitration, but not including the results of the mediation or arbitration if those costs do not qualify under paragraph 98.62(2)“c” above.
	98.62(3) Inappropriate uses of the management fund. Inappropriate expenditures in the management fund include the following:
	a. 	Costs for employee health benefit plans.
	b. 	Costs to conduct physical inventories of property for purposes other than insurance.
	c. 	Costs to conduct actuarial studies.
	d. 	Costs for supplies or capital outlay.
	e. 	Transfer to a trust fund for other postemployment benefit (OPEB) cost or estimated cost calculated pursuant to Governmental Accounting Standards Board (GASB) Statement 45.
	f. 	Any other costs not expressly authorized in the Iowa Code.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16]
281—98.63(298) Library levy fund. The board of directors of a school district in which there is no free public library may contract with any free public library for the free use of such library by the residents of the school district and pay the library the amount agreed upon for the use of the library as provided by law. During the existence of the contract, the board shall certify annually a tax sufficient to pay the library the agreed-upon consideration.
	98.63(1) Sources of revenue in the library levy fund. Sources of revenue in the library levy fund include a property tax not to exceed $0.20 per $1000 of assessed value of the taxable property of the district and interest on the investment of those moneys.
	98.63(2) Appropriate uses of the library levy fund. Appropriate expenditures in the library levy fund include expenditures necessary to provide a free public library.
	98.63(3) Inappropriate uses of the library levy fund. Inappropriate expenditures in the library levy fund include the following:
	a. 	Capital expenditures related to land or buildings.
	b. 	Debt service.
	c. 	Any other costs not necessary to provide a free public library.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.64(279,283,297,298) Physical plant and equipment levy (PPEL) fund. The physical plant and equipment levy (PPEL) consists of the regular PPEL not to exceed $0.33 per $1000 of assessed valuation and a voter-approved PPEL not to exceed $1.34 per $1000 of assessed valuation, for a total of $1.67. The authority to establish a PPEL fund is available to school districts but not to area education agencies.
	98.64(1) Sources of revenue in the PPEL fund. Sources of revenue in the PPEL fund include a property tax, income surtax, and interest on the investment of those moneys, and proceeds from loan agreements in anticipation of the collection of the voter-approved property. Proceeds from the condemnation, sale or disposition of real property are revenue to the PPEL fund. Proceeds from loans for equipment pursuant to Iowa Code section 279.48, federal loans for asbestos projects pursuant to Iowa Code section 279.52, or loans for energy conservation projects pursuant to Iowa Code section 473.20 may be accounted for in the PPEL fund. If the school board intends to enter into a rental, lease, or loan agreement, only a property tax shall be levied for those purposes.
	98.64(2) Appropriate uses of the PPEL fund. Appropriate expenditures in the PPEL fund include the following:
	a. 	Purchase of grounds including the legal costs relating to the property acquisition, costs of surveys of the property, costs of relocation assistance under state and federal law, and other costs incidental in the property acquisition.
	b. 	Improvement of grounds including grading, landscaping, paving, seeding, and planting of shrubs and trees; constructing sidewalks, roadways, retaining walls, sewers and storm drains, and installing hydrants; surfacing and soil treatment of athletic fields and tennis courts; exterior lighting, including athletic fields and tennis courts; furnishing and installing flagpoles, gateways, fences, and underground storage tanks which are not parts of building service systems; demolition work; and special assessments against the school district for public improvements.
	c. 	Construction of schoolhouses or buildings.
	d. 	Construction of roads to schoolhouses or buildings.
	e. 	Purchasing, leasing, or lease-purchasing equipment or technology exceeding $500 in value per purchase, lease, or lease-purchase transaction.
	(1)	“Equipment” means both equipment and furnishings. The cost limitation for equipment does not apply to recreational equipment pursuant to paragraph 98.64(2)“n” or equipment that becomes an integral part of real property such as furnaces, boilers, water heaters, and central air-conditioning units that are included in repairs to a building pursuant to paragraph 98.64(2)“h.”
	(2)	“Transaction” means a business deal or agreement between a school district and a provider of goods or services. Technology may be bundled for purposes of exceeding $500 per transaction.
	f. 	Transferring to debt service for payments, when due, of debts contracted for the erection or construction of schoolhouses or buildings, not including interest on bonds.
	g. 	Procuring or acquisition of library facilities.
	h. 	Repairing, remodeling, reconstructing, improving, or expanding the schoolhouses or buildings and the additions to existing schoolhouses. “Repairing” means restoring an existing structure or thing to its original condition, as near as may be, after decay, waste, injury, or partial destruction, but does not include maintenance. “Reconstructing” means rebuilding or restoring as an entity a thing which was lost or destroyed. “Maintenance” means to cause to remain in a state of good repair or to keep equipment in effective working condition and ready for daily use. Maintenance includes cleaning, upkeep, inspecting for needed maintenance, preserving the existing state or condition, preventing a decline in the existing state or condition, and replacing parts, unless otherwise a repair.
	i. 	Energy conservation projects.
	j. 	Transferring interest and principal to the debt service fund when due for loans to purchase equipment authorized under Iowa Code section 279.48, for loans in anticipation of the collection of the voter-approved property under Iowa Code section 297.36, and loans to be used for energy conservation measures under Iowa Code section 473.20, in the case of a school district, when the original proceeds were accounted for in the PPEL fund.
	k. 	The rental of facilities under Iowa Code chapter 28E.
	l. 	Purchase of transportation equipment for transporting students and for repairing such transportation equipment when the cost of the repair exceeds $2,500. “Repairing,” for purposes of this paragraph, means restoring an existing item of transportation equipment to its original condition, as near as may be, after gradual obsolescence of physical and functional use due to wear and tear, corrosion and decay, or partial destruction, and includes maintenance that meets the definition of equipment and repair and the cost of which exceeds $2,500. Effective October 2, 2019, “repairing” also means retrofitting transportation equipment when such retrofitting aligns to the school bus construction standards in 281—Chapter 44.
	m. 	Purchase of buildings or lease-purchase option agreements for school buildings.
	n. 	Purchase of equipment for recreational purposes.
	o. 	Payments to a municipality or other entity as required under Iowa Code section 403.19, subsection 2.
	p. 	Asbestos projects including costs of inspection and reinspection, sampling, analysis, assessment, response actions, operations and maintenance, training, periodic surveillance, development of management plans and record-keeping requirements relating to the presence of asbestos in school buildings of the district and its removal or encapsulation.
	q. 	Purchase, erect, or acquire a building for use as a school meal facility, and equip a building for that use.
	r. 	Purchase of land as part of start-up costs for a new student construction program or if the sale proceeds of the previous student construction were insufficient to purchase land, but not for materials and supplies for a facility intended to be sold.
	s. 	Construction materials and supplies for a student-constructed building or shed intended to be retained by and used by the district.
	t. 	Demolition of a district-owned building.
	u. 	Improving buildings or sites for the purpose of accessing digital telecommunications over multiple channels, often referred to as broadband.
	98.64(3) Inappropriate uses of the PPEL fund. Inappropriate expenditures in the PPEL fund include the following:
	a. 	Student construction materials and supplies for a facility intended to be sold.
	b. 	Salaries and benefits.
	c. 	Travel.
	d. 	Supplies.
	e. 	Facility, vehicle, or equipment maintenance.
	f. 	Printing costs or media services.
	g. 	Any other purpose not expressly authorized in the Iowa Code.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 0012C, IAB 2/22/12, effective 3/28/12 (See Delay note at end of chapter); ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16; ARC 4931C, IAB 2/12/20, effective 3/18/20]
281—98.65(276,300) Public educational and recreational levy (PERL) fund. Boards of directors of school districts may establish and maintain for children and adults public recreation places and playgrounds, and necessary accommodations for the recreation places and playgrounds, in the public school buildings and on the grounds of the district. Financial support for the community education program shall be provided from funds raised pursuant to Iowa Code chapter 300 and from any private funds and any federal funds made available for the purpose of implementing community education. The authority to establish a levy for a PERL fund is available to school districts but not to area education agencies.
	98.65(1) Sources of revenue in the PERL fund. Sources of revenue in the PERL fund include a property tax levy not to exceed $0.135 per $1000 of assessed valuation, any appropriation by the agencies involved in a cooperative effort under Iowa Code chapter 28E, federal grants, donations, and interest on the investment of those moneys.
	98.65(2) Appropriate uses of the PERL fund. Appropriate expenditures in the PERL fund include the following:
	a. 	Establishing and maintaining free public recreation places and playgrounds, including necessary accommodations.
	b. 	Providing free public educational and recreational activities.
	c. 	Establishing and supervising a free community education program.
	d. 	Providing a community education director if a community education program is established.
	98.65(3) Inappropriate uses of the PERL fund. Inappropriate expenditures in the PERL fund include the following:
	a. 	Programs for which a fee may be charged such as before- and after-school programs and preschool programs.
	b. 	Any other costs not necessary to provide free programs for community education and for public recreation places, playgrounds, and programs.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.66(257,279,298A,565) District support trust fund. The district support trust fund is used to account for moneys received in trust where those moneys, both principal and interest, are to benefit the school district. The school district or area education agency shall not transfer its own resources to a district support trust fund. If the school district or area education agency has more than one district support trust, it will use locally assigned project codes pursuant to Uniform Financial Accounting for Iowa School Districts and Area Education Agencies to identify the different trusts in the same fund. The district support trust fund is not an irrevocable trust. The board of directors of the school district must take action to accept or establish each gift, devise, or bequest in the district support trust fund. It is the board’s responsibility to ensure that the terms of the gift, devise, or bequest are compatible with the mission of and legal restrictions on the school district. Once accepted, gifts, devises, and bequests become public funding under the stewardship of the school district. If the purpose for which the moneys are to be spent is not in keeping with the overall objectives of the school district or legal authority of the school district, the board shall not assume responsibility as the trustee.
	98.66(1) Sources of revenue in the district support trust fund. Sources of revenue in the district support trust fund include donations of cash, investment instruments, property, and interest on investments held. In a district support trust fund, both principal and interest are available to benefit the school district’s programs.
	98.66(2) Appropriate uses of the district support trust fund. Appropriate expenditures in the district support trust fund include those that are consistent with the terms of the agreement, are legal expenditures to a school district, and are for the benefit of the school district.
	98.66(3) Inappropriate uses of the district support trust fund. Inappropriate expenditures in the district support trust fund include transfers to nonprofit or private organizations or any expenditure which is not consistent with the terms of the agreement, legal to a school district, or for the benefit of the school district.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.67(257,279,298A,565) Permanent funds. Permanent funds are used to account for resources received that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the school district’s programs. The school district or area education agency shall not transfer its own resources to a permanent fund. The board of directors of the school district must take action to accept or establish each gift, devise, or bequest in permanent funds. It is the board’s responsibility to ensure that the terms of the gift, devise, or bequest are compatible with the mission of and legal restrictions on the school district. Once accepted, gifts, devises, and bequests become public funding under the stewardship of the school district. If the purpose for which the moneys are to be spent is not in keeping with the overall objectives of the school district or legal authority of the school district, the board shall not assume responsibility of the moneys.
	98.67(1) Sources of revenue in the permanent funds. Sources of revenue in the permanent funds include donations of cash, investment instruments, property, and interest on investments held. In permanent funds, only interest is available to benefit the school district’s programs.
	98.67(2) Appropriate uses of the permanent funds. Appropriate expenditures in the permanent funds include those that are consistent with the terms of the agreement, are legal expenditures to a school district, and are for the benefit of the school district.
	98.67(3) Inappropriate uses of the permanent funds. Inappropriate expenditures in the permanent funds include transfers to nonprofit or private organizations, expenditure from principal, or any expenditure which is not consistent with the terms of the agreement, or legal to a school district, or for the benefit of the school district, or any expenditure from the principal portion.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.68(76,274,296,298,298A) Debt service fund. A debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. A school district or area education agency shall have only one debt service fund.
	98.68(1) Sources of revenue in the debt service fund. Sources of revenue in the debt service fund include the levy on taxable property authorized by the voters pursuant to Iowa Code section 298.21 and necessary to service bonds that mature in the current year, transfers from other funds for payments of interest and principal when due that are required under a loan, lease-purchase agreement, or other evidence of indebtedness authorized by the Iowa Code, and earnings from temporary investment of moneys in the debt service fund.
	98.68(2) Appropriate uses of the debt service fund. Appropriate expenditures in the debt service fund include the following:
	a. 	Payment of principal and interest of the lawful bonded indebtedness maturing in the current year as it becomes due. In determining how much is necessary to service bonds that mature in the current year, the board of directors shall consider the amount of earnings from temporary investments of debt service funds and beginning cash balances.
	b. 	Payment of costs of registration of public bonds or obligations.
	c. 	Payment of additional amounts as the board deems necessary to apply on the principal.
	d. 	Payment of principal and interest when due that are required under a loan agreement, lease-purchase agreement, or other evidence of indebtedness authorized by the Iowa Code other than bonded indebtedness paid from resources transferred for that purpose to the debt service fund from other funds.
	e. 	Payment of transfers to the PPEL fund by board resolution when funds remain in the debt service fund after payment of the entire balance of outstanding debt in accordance with the original purpose of the bonded indebtedness and after return of any excess amount transferred into the debt service fund from another fund or other indebtedness. The voters in the district may authorize the district to transfer the remaining balance to the general fund instead of the PPEL fund pursuant to Iowa Code subsection 278.1(1)“e.”
	98.68(3) Inappropriate uses of the debt service fund. Inappropriate expenditures in the debt service fund include payment of debt issued by one fund from resources transferred from a different fund unless expressly authorized by the Iowa Code and any other expenditure not listed in subrule 98.68(2).
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.69(76,273,298,298A,423E,423F) Capital projects fund. Capital projects funds are used to account for financial resources to acquire or construct major capital facilities and to account for revenues from the state sales and services tax for school infrastructure. Boards of directors of school districts are authorized to establish more than one capital projects fund as necessary.
	98.69(1) Sources of revenue in the capital projects fund. Sources of revenue in a capital projects fund include sale of general obligation bonds, grants and donations for capital facility projects, and transfers from other funds which authorized indebtedness for capital facility projects or which initiated a capital facility project or which received grants or other funding for capital projects, and tax receipts or revenue bonds issued for the state sales and services tax for school infrastructure. In the case of an area education agency, transfers from the general fund to a capital projects fund are limited to payments from proceeds accounted for in the general fund when payments are due on a capital project under a lease-purchase agreement pursuant to Iowa Code subsection 273.3(7).
	98.69(2) Appropriate uses of the capital projects fund.
	a. 	Appropriate expenditures in a capital projects fund, excluding state/local option sales and services tax for school infrastructure fund, include the following:
	(1)	Purchasing, constructing, furnishing, equipping, reconstructing, repairing, improving, or remodeling a schoolhouse or schoolhouses and additions thereto, gymnasium, stadium, field house, school bus garage, or teachers’ or superintendents’ home(s). Prior to approving the use of revenues for an athletic facility infrastructure project within the scope of the school district’s approved revenue purpose statement, the board of directors shall adopt a resolution setting forth the proposal for the athletic facility infrastructure project and hold an additional public hearing on the issue of construction of the athletic facility as stipulated in Iowa Code section 423F.3(7).
	(2)	Procuring a site, or purchasing land to add to a site already owned, or procuring and improving a site for an athletic field, or improving a site already owned for an athletic field.
	(3)	Transferring to the PPEL fund or debt service fund by board resolution any balance remaining in a capital projects fund after the capital project is completed and after return of any excess amount transferred into the capital projects fund from another fund. The voters in the district may authorize the district to transfer the remaining balance to the general fund instead of the PPEL fund or debt service fund pursuant to Iowa Code subsection 278.1(1)“e.”
	(4)	Improving buildings or sites for the purpose of accessing digital telecommunications over multiple channels, often referred to as broadband.
	(5)	School safety and security infrastructure listed in Iowa Code section 423F.3(6).
	b. 	Appropriate expenditures in the state/local option sales and services tax for the school infrastructure capital projects fund shall be expended in accordance with a valid revenue purpose statement if a valid revenue purpose statement exists; otherwise, appropriate expenditures include the following in order:
	(1)	Payment of principal and interest on revenue bonds issued pursuant to Iowa Code sections 423E.5 and 423F.4 for which the revenue has been pledged.
	(2)	Reduction of debt service levies.
	(3)	Reduction of regular and voter-approved PPEL levies.
	(4)	Reduction of the PERL levy.
	(5)	Reduction of any schoolhouse tax levy under Iowa Code subsection 278.1(1)“e.”
	(6)	Any authorized infrastructure purpose of the district pursuant to Iowa Code subsection 423F.3(6), which includes the following:
	1.	Payment or retirement of outstanding general obligation bonded indebtedness issued for school infrastructure purposes.
	2.	Payment or retirement of outstanding revenue bonds issued for school infrastructure purposes.
	3.	Purchasing, constructing, furnishing, equipping, reconstructing, repairing, improving, remodeling, or demolition of a schoolhouse or schoolhouses and additions thereto, gymnasium, stadium, field house, or school bus garage.
	4.	Procuring a site, or purchasing land to add to a site already owned, or procuring and improving a site for an athletic field, or improving a site already owned for an athletic field.
	5.	Expenditures listed in Iowa Code section 298.3.
	6.	Expenditures listed in Iowa Code section 300.2.
	(7)	Improving buildings or sites for the purpose of accessing digital telecommunications over multiple channels, often referred to as broadband.
	(8)	School safety and security infrastructure listed in Iowa Code section 423F.3(6).
	98.69(3) Inappropriate uses of the capital projects fund. Inappropriate expenditures in a capital projects fund include any expenditure not expressly authorized in the Iowa Code. Additionally, expenditures from the state sales and services tax for new construction or for payments for bonds issued for new construction in any district that has a certified enrollment of fewer than 250 pupils in the district or a certified enrollment of fewer than 100 pupils in the high school without a certificate of need issued by the department of education. This restriction does not apply to payment of outstanding general obligation bonded indebtedness issued pursuant to Iowa Code section 296.1 before April 1, 2003. This restriction also does not apply to costs to repair school buildings; purchase of equipment, technology or transportation equipment authorized under Iowa Code section 298.3; or for construction necessary to comply with the federal Americans With Disabilities Act.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 4813C, IAB 12/18/19, effective 1/22/20]
281—98.70(279,280,298A) Student activity fund. The student activity fund must be established in any school district receiving moneys from student-related activities such as admissions, activity fees, student dues, student fund-raising events, or other student-related cocurricular or extracurricular activities. Moneys collected through school activities are public funds that are the property of the school district and are under the financial control of the school board. Upon dissolution of an activity, such as a graduating class or student club, the surplus must be used to support other student activities in the student activity fund. Prudent and proper accounting of all receipts and expenditures in these accounts is the responsibility of the board. School districts may maintain subsidiary records for student activities if those records are reconciled to the official records on a monthly basis; however, all official accounting records of the student activity fund shall be maintained within the school district’s chart of account pursuant to Uniform Financial Accounting for Iowa School Districts and Area Education Agencies.
	98.70(1) Sources of revenue in the student activity fund. Sources of revenue in the student activity fund include income derived from student activities such as gate receipts, ticket sales, admissions, student club dues, donations, fund-raising events, any other receipts derived from student body cocurricular or extracurricular activities, contests, and exhibitions as well as interest on the investment of those moneys, and amounts transferred from the general fund under Iowa Code section 298A.2 as described in paragraph 98.61(2)“s.”
	98.70(2) Appropriate uses of the student activity fund. Appropriate expenditures in the student activity fund include ordinary and necessary expenses of operating school district-sponsored and district-supervised student cocurricular and extracurricular activities, including purchasing services from another school district to provide for the eligibility of enrolled students in interscholastic activities provided by the other school district when that school district does not provide an interscholastic activity for its students.
	98.70(3) Inappropriate uses of the student activity fund. Inappropriate expenditures in the student activity fund include the following:
	a. 	Maintenance of funds raised by outside organizations.
	b. 	The cost of bonds for employees having custody of funds derived from cocurricular and extracurricular activities in the conduct of their duties. These are costs to the general fund.
	c. 	Expenditures that lack public purpose.
	d. 	Payments to any private organization unless a fundraiser was held expressly for that purpose and the purpose of the fundraiser was specifically identified.
	e. 	Transfers to any other fund of any surplus within the fund.
	f. 	Payments more properly accounted for in another fund such as public tax funds, trust funds, state and federal grants, textbook/library book fines, fees, rents, purchases or sales, sales of school supplies, or curricular activities.
	g. 	Use of the student activity fund as a clearing account for any other fund.
	h. 	Cash payments to student members of activity groups.
	i. 	The cost of optional equipment or customizing uniforms.
	j. 	The cost of uniforms when the following two tests are not met:
	(1)	The activity is a part of the school’s educational program, and
	(2)	The wearing of the uniform or equipment is necessary in order to participate.
	k. 	Hospital or medical claims for student injuries or procurement of student medical insurance.
	l. 	Optional costs related to activities that are not necessary to the cocurricular and extracurricular program such as promotional costs.
	m. 	Membership fees in student activity-related associations if the fees are optional, i.e., nonmember schools may participate in sponsored events.
	n. 	Costs to participate in or to allow students to participate in any cocurricular and extracurricular interscholastic athletic contest or competition not sponsored or administered by either the Iowa High School Athletic Association or the Iowa Girls High School Athletic Union.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 3632C, IAB 2/14/18, effective 3/21/18]
281—98.71(298A) Entrepreneurial education fund. The entrepreneurial education fund is used to enhance student learning by encouraging students to develop and practice entrepreneurial skills at an early age and to foster a business-ready workforce in this state. A school corporation may establish an entrepreneurial education fund at the request of a student organization or club and upon approval by the school board.
	98.71(1) Sources of revenue in the entrepreneurial education fund. Sources of revenue in the entrepreneurial education fund shall consist only of moneys earned through entrepreneurial activities or returns on investments made for entrepreneurial purposes by the student organization or club, private donations and private contributions, and any interest earned on such moneys that are deposited in the fund. At the request of a student organization or club and upon approval by the school board, a school corporation shall transfer moneys in a student activity fund established under Iowa Code section 298A.8, for deposit by the student organization or club in an entrepreneurial education fund. However, a school corporation shall not transfer such moneys unless the moneys are attributable through appropriate documentation to the specific student organization or club and unless the student organization or club shows through appropriate documentation that the student organization or club earned the moneys through entrepreneurial activities of starting, maintaining, or expanding a business venture, including a seasonal business venture, or rendering other labor or services in return for compensation. Entrepreneurial activities do not include charitable contributions or other donations or gifts received by the student organization or club for which no labor or services are rendered.
	98.71(2) Appropriate uses of the entrepreneurial education fund. Appropriate uses of the entrepreneurial education fund are limited to expending only for investments made, or activities undertaken, for board-approved entrepreneurial purposes which include investing in a start-up company, early-stage company, or existing company developing a new product or new technology if the investment is in keeping with the education program of the school corporation; if the student organization or club or its members will, as a stated condition of the investment, take an active role in the company which active role directly relates to and furthers the educational purposes for which the student organization or club is established; and if a reasonable return upon the investment is expected.
	98.71(3) Inappropriate uses of the entrepreneurial education fund. A student organization or club shall not invest moneys from an entrepreneurial education fund for an entrepreneurial purpose in which a member of the student organization or club, an advisor or supervisor of the student organization or club, or an immediate family member of such persons, has a financial interest.
	98.71(4) Fund closure. An entrepreneurial education fund may be closed at the request of the student organization or club for which the school corporation established the fund. All moneys in the fund on the date of closure and any subsequent return on an investment made with moneys from the fund shall be deposited in the school district’s student activity fund.
[ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.72(256B,257,298A) Special education instruction fund. The special education instruction fund is used to account for the revenues and expenditures of the special education instructional program that an area education agency provides for its member districts under Iowa Code subsection 273.9(2). This does not include special education support services as provided by Iowa Code subsection 274.9(3) which are accounted for in the general fund.
	98.72(1) Sources of revenue in the special education instruction fund. Sources of revenue in the special education instruction fund include sales of instructional services to districts with students in the special education instruction program and interest on the investment of those moneys.
	98.72(2) Appropriate uses of the special education instruction fund. Appropriate expenditures in the special education instruction fund include those authorized to a school district pursuant to Iowa Code chapter 256B and 281—Chapter 41 and included in the written agreement with the school districts.
	98.72(3) Inappropriate uses of the special education instruction fund. Inappropriate expenditures in the special education instruction fund include expenditures not allowed to school districts pursuant to Iowa Code chapter 256B and 281—Chapter 41, expenditures for special education support services provided pursuant to Iowa Code subsection 273.9(3), or expenditures for costs not included in the written agreement with the school districts.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.73(282,298A) Juvenile home program instruction fund. The juvenile home program instruction fund is used to account for the revenues and expenditures for the educational program for students residing in juvenile homes as provided by Iowa Code section 282.30. The juvenile home program supplements, but does not supplant, expenditures required of an area education agency under Iowa Code chapter 273. Revenues and expenditures related to federal or state grants serving students in the juvenile homes that supplement, rather than supplant, the juvenile home program are included in the general fund, rather than the juvenile home fund. Educational program costs for students served pursuant to individualized education programs (IEPs) shall not be included in the claim described in Iowa Code section 282.31 in lieu of billing those costs to the resident district. Educational program costs for out-of-state resident students shall not be included in the claim described in Iowa Code section 282.31 in lieu of billing those costs to the resident state agency. The area education agency (AEA) is responsible for stewardship of public funds and ensuring that all costs are ordinary and necessary costs of instruction and that classrooms are not overstaffed for the number of students. The AEA shall compare its costs, services, and staffing to the costs, services, and staffing of a similar classroom in the school district in which the juvenile home is located to ensure that they are comparable.
	98.73(1) Sources of revenue in the juvenile home program instruction fund. Sources of revenue in the juvenile home program instruction fund include an advance paid pursuant to Iowa Code section 282.31, tuition billed to Iowa resident districts or to out-of-state agencies, grants in aid and interest on the investment of those moneys.
	98.73(2) Appropriate uses of the juvenile home program instruction fund. Appropriate expenditures in the juvenile home program instruction fund are ordinary and necessary expenditures approved by the department to provide an instructional program to students residing in juvenile homes and include:
	a. 	Salary and benefits for classroom teachers and aides providing instruction to students placed in a juvenile home.
	b. 	Professional development which is specific to strategies to meet the needs of students in placement for all classroom teachers and aides working with students placed in a juvenile home.
	c. 	Research-based resources, materials, software, supplies, and equipment, and purchased services that are customarily considered instructional and that meet all of the following criteria:
	(1)	Meet the needs of school-age students placed in juvenile homes,
	(2)	Will remain with the AEA juvenile home program, and
	(3)	Do not duplicate support services responsibilities of the AEA or the responsibilities of the juvenile home in its agreement with the placement agencies.
	d. 	Summer school when necessary for a valid, established educational reason such as being included in the student’s IEP or required pursuant to Iowa Code section 279.68.
	e. 	Student support and instructional support expenditures to the extent that they are exclusively devoted to the juvenile home instructional program and are not administrative or clerical. This would include guidance services, curriculum development and instructional technology.
	f. 	Administrative support to the extent the administrator is exclusively assigned to the juvenile home locations and is exclusively providing school-level administrative services directly for the student placed in the juvenile home or the classroom teachers. If the administrator is assigned part-time to the juvenile home locations, then the portion of time that is exclusively and directly related to the juvenile home instructional programs may be charged to the program, but the portion of time that is related to other purposes shall not. The total administrative cost shall not exceed 10 percent of the total of all allowable costs for the juvenile home program.
	g. 	When the students are not required by the placement agency to remain at the juvenile home facility and the juvenile home has no responsibility for treatment in its agreement with the placement agency beyond custodial care, then rent may be allowed. Rent must be approved by the department. The space must be classroom space occupied exclusively by the AEA’s instructional program and not include restrooms or any other common spaces. Only if rent is approved may any costs for operation or maintenance of that classroom space be allowed. The total administrative cost in paragraph 98.73(2)“f” and the total of rent and associated operation and maintenance shall not exceed 20 percent of the total of all allowable costs for the juvenile home program.
	h. 	Transportation provided by the AEA exclusively to transport students placed at the juvenile home to the students’ resident school districts located in Iowa or to the school district in which the juvenile home is located.
	98.73(3) Inappropriate uses of the juvenile home program instruction fund. Inappropriate expenditures in the juvenile home program instruction fund include the following:
	a. 	Costs estimated or allocated that are expenditures of the agency, such as insuring agency property.
	b. 	Costs that are not ordinary and necessary to provide instruction.
	c. 	Costs related to the juvenile home facility, its responsibilities under the Iowa Code or its agreements with the placement agencies.
	d. 	Costs that were or could have been filed with Medicaid for reimbursement.
	e. 	Debt service.
	f. 	Capital outlay related to facilities. This includes any costs for facility acquisition or construction services, including remodeling and facility repair.
	g. 	Support services that are AEA responsibilities pursuant to the Iowa Code.
	h. 	Rental when adequate space is available at the AEA or at the district of location or when the students require treatment provided by the juvenile home or are required to remain at the juvenile home pursuant to the agreement between the juvenile home and the placement agency.
	i. 	Costs of an audit.
	j. 	Indirect costs.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.74(283A,298A) School nutrition fund. All school districts shall operate or provide for the operation of lunch programs at all attendance centers in the school district. A school district may operate or provide for the operation of school breakfast programs at all attendance centers in the district, or provide access to a school breakfast program at an alternative site to students who wish to participate in a school breakfast program.
	98.74(1) Sources of revenue in the school nutrition fund. Sources of revenue in the school nutrition fund include food sales to pupils and adults, ancillary food services, state and federal grants in aid for the operation of a nutrition program, gifts, sales of services to other funds, donated government commodities, and interest on investment of school nutrition fund moneys. Also included are fees charged for providing food services to staff meetings and authorized organizations for meetings on the premises in accordance with the rules of the board. The charges for such services must be no less than the actual costs involved in providing the services including the value of donated government commodities.
	98.74(2) Appropriate uses of the school nutrition fund. Appropriate expenditures in the school nutrition fund include the following:
	a. 	Expenditures necessary to operate a school breakfast or lunch program such as salaries and benefits for employees necessary to operate the food service program, food, purchased services, supplies, and school nutrition equipment not included in Iowa Code section 283A.9.
	b. 	Costs to provide food service for school staff and ancillary food services to staff meetings and authorized organizations for meetings on the premises in accordance with the rules of the board of directors of the school district if those costs are reimbursed by another fund, organization, or individual.
	98.74(3) Inappropriate uses of the school nutrition fund. Inappropriate expenditures in the school nutrition fund include the following:
	a. 	Costs to provide food service for school staff and ancillary food services to staff meetings and authorized organizations for meetings on the premises at less than actual costs involved in providing the services including the value of donated government commodities.
	b. 	Operating transfers to any other fund other than to claim indirect costs.
	c. 	Costs to purchase, construct, reconstruct, repair, remodel, or otherwise acquire or equip a building for use as a school meal facility. These costs are permitted from the PPEL fund.
	d. 	Costs estimated or allocated that are expenditures of the district.
	98.74(4) Unpaid student meals account. Beginning with the budget year beginning July 1, 2018, in accordance with Iowa Code section 283A.11, a school district may establish an unpaid student meals account in the school nutrition fund and may deposit in the account moneys received from private sources for purposes of paying student meal debt accrued by individual students as well as amounts designated for the account from the school district’s flexibility account as described in rule 281—98.27(257,298A). Moneys deposited in the unpaid student meals account shall be used by the school district only to pay individual student meal debt. The school district shall set fair and equitable procedures for such expenditures.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 4298C, IAB 2/13/19, effective 3/20/19; ARC 4813C, IAB 12/18/19, effective 1/22/20]
281—98.75(279,298A) Child care and before- and after-school programs fund. The board of directors of a school district may operate or contract for the operation of a program to provide child care to children not enrolled in school or to students enrolled in kindergarten through grade 6 before and after school, or to both.
	98.75(1) Sources of revenue in the child care fund. Sources of revenue in the child care fund include a fee established by the board for the cost of participation in the program. The fee shall be established pursuant to a sliding fee schedule based upon staffing costs and other expenses and a family’s ability to pay. If a fee is established, the parent or guardian of a child participating in a program shall be responsible for payment of any agreed-upon fee. The board may require the parent or guardian to furnish transportation of the child. If the board does not establish a fee, it must finance the program through grants or donations. The board may utilize or make application for program subsidies from any existing child care funding streams.
	98.75(2) Appropriate uses of the child care fund. Appropriate expenditures in the child care fund include salaries and benefits for employees necessary to operate the child care program or before- and after-school program, purchased services, supplies, and equipment.
Effective with the budget year beginning July 1, 2018, if the balance in the before- and after-school program exceeds the amount necessary to operate the before- and after-school program, the excess amount may, following a public hearing, be transferred to the general fund by a resolution of the board of directors of the school corporation which meets all requirements stipulated in Iowa Code section 298A.12. A transfer under this subrule does not increase a school district’s authorized expenditures as defined in Iowa Code section 257.7.
	98.75(3) Inappropriate uses of the child care fund. Inappropriate expenditures in the child care fund include debt service, capital outlay related to facilities, or any other expenditure not ordinary and necessary to operate the child care program or before- and after-school program.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 4298C, IAB 2/13/19, effective 3/20/19]
281—98.76(298A) Regular education preschool fund. The board of directors of a school district may establish a preschool for students who are not of school age.
	98.76(1) Sources of revenue in the regular education preschool fund. Sources of revenue in the regular education preschool fund include a fee established by the board for the cost of participation in the program. If a fee is established, the parent or guardian of a child participating in a program shall be responsible for payment of any agreed-upon fee. If the board does not establish a fee, it must finance the program through grants or donations. The statewide voluntary four-year-old preschool program established under Iowa Code chapter 256C shall not be accounted for in the regular education preschool fund.
	98.76(2) Appropriate uses of the regular education preschool fund. Appropriate expenditures in the regular education preschool fund include salaries and benefits for employees necessary to operate the regular education preschool program, purchased services, instructional supplies, and instructional equipment.
	98.76(3) Inappropriate uses of the regular education preschool fund. Inappropriate expenditures in the regular education preschool fund include debt service, capital outlay related to facilities, or any other expenditure not ordinary and necessary to operate the regular education preschool program or before- and after-school program.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.77(298A) Student construction fund. If the board of directors of a school district establishes a construction program whereby students learn a construction trade and the facility constructed is sold to cover costs of construction, the revenues and expenses will be accounted for in the student construction fund.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.78(298A) Other enterprise funds. Enterprise funds are used to account for any activity for which a fee is charged to external users for goods and services. Enterprise funds are required to be used to account for any activity whose principal revenue sources are fees and charges to recover the costs of providing goods or services where those fees and charges are permitted by the Iowa Code. Funds discussed in rules 281—98.74(283A,298A) through 281—98.77(298A) are enterprise funds. In addition, enterprise funds include those activities related to community service enterprises or enterprises that support the school curricular program. Community service enterprises are activities provided by the district for a fee to the general community or segment of the community that are not in the PERL or library funds such as public libraries, community pool, community wellness center, and community or adult education. Enterprises that support the school program include activities such as a student farm, greenhouse, cooperative purchasing, school stores, or major resale activities.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 1967C, IAB 4/15/15, effective 5/20/15]
281—98.79 to 98.81  Reserved.
281—98.82(298A) Internal service funds. Internal service funds are used to account for the financing of services provided within the district to provide goods or services to other funds, component units, or other governments on a cost-reimbursement basis. The use of an internal service fund is appropriate only for activities in which the agency, school district or area education agency is the predominant participant in the activity. If the district or area education agency is not the primary user of the goods or services provided by the internal service fund, then the activity should be accounted for in an enterprise fund rather than an internal service fund. Internal service funds include, but are not limited to, self-insurance funds, flex-benefit (cafeteria) plan funds, print shops, health reimbursement arrangements (HRAs), central warehousing and purchasing, and central data processing.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.83 to 98.91  Reserved.
281—98.92(257,279,298A,565) Private purpose trust funds. Private purpose trust funds are fiduciary funds established to account for gifts the school district receives to be used for a particular purpose or to account for moneys and property received and administered by the school district as trustee. These trust funds are not irrevocable trusts and are used to account for assets held by a school district in a trustee capacity to benefit individuals, private organizations, or other governments, and therefore cannot be used to support the school district’s own programs. These trust funds include both those that allow use of only the interest on the investments and those that allow use of both principal and interest. Scholarship trust funds are an example of private purpose trust funds. If a school district has more than one scholarship trust, the school district shall use project codes in accordance with Uniform Financial Accounting for Iowa School Districts and Area Education Agencies to separately account for the trusts. The district or area education agency shall not transfer its own resources to a private purpose trust fund.
	98.92(1) Sources of revenue in private purpose trust funds. Sources of revenue in the private purpose trust fund include donations of cash, investment instruments, property, and interest on investments held.
	98.92(2) Appropriate uses of private purpose trust funds. Appropriate expenditures in the private purpose trust fund include those that are consistent with the terms of the agreement or are for the benefit of a private purpose other than the school district. None of the expenditures will be for the benefit of the school district’s programs.
	98.92(3) Inappropriate uses of private purpose trust funds. Inappropriate expenditures in the private purpose trust fund include any expenditure which is not consistent with the terms of the agreement, not legal to a school district, or that benefits the school district’s programs.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.93(298A) Other trust funds. Trust funds are fiduciary funds established to account for gifts the school district receives to be used for a particular purpose or to account for moneys and property received and administered by the school district as trustee. These trust funds are used to account for assets held by a school district in a trustee capacity to benefit individuals, private organizations, or other governments, and cannot be used to support the school district’s own programs. These trust funds include both those that allow use of only the interest on the investments and those that allow use of both principal and interest. The school district or area education agency shall not transfer its own resources to a trust fund. Other trust funds may include but not be limited to pension trust funds and investment trust funds. Pension trust funds are used to account for resources that are required to be held in trust for members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other benefit plans. Typically, these pension trust funds are used to account for local pension and other employee benefit funds that are provided by a school district in lieu of or in addition to any state retirement system. Investment trust funds are used to account for the external portion (i.e., the portion that does not belong to the school district) of investment pools operated by the school district.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.94 to 98.100  Reserved.
281—98.101(298A)  Custodial funds. Custodial funds are used to account for funds that are held in a custodial capacity by the school district for individuals, private organizations, or other governments. Custodial funds may include moneys collected for another government, a grant consortium when the school district serves as fiscal agent for the other school districts but has no managerial responsibilities, or funds for a teacher or a parent-teacher organization which has its own federal identification number (FIN). In a custodial fund, the school district or area education agency merely renders a service as a custodian of the assets for the organization owning the assets and the school district or area education agency is not an owner. Custodial funds typically involve only the receipt, temporary investment and remittance of assets to their rightful owners.
	98.101(1) Sources of receipts in custodial funds. Sources of receipts in custodial funds include temporary receipts of cash, investment instruments, property, and interest on investments held.
	98.101(2) Appropriate uses of custodial funds. Appropriate disbursements from a custodial fund depend on the nature of the rightful owners’ conditions or the responsibilities of the custodian. Typically, disbursement will involve remittance of assets to their rightful owners or to a third party on behalf and at the request of the rightful owners. The school district cannot disburse more funds at any point in time than it has received from the rightful owner.
	98.101(3) Inappropriate uses of custodial funds. Inappropriate disbursements from custodial funds include any disbursement which is not consistent with the terms of the agreement, is not legal to a school district, or exceeds the amount of funds that have been received from the rightful owner or on behalf of the rightful owner.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 5650C, IAB 6/2/21, effective 7/7/21]
281—98.102 to 98.110  Reserved.
281—98.111(24,29C,257,298A) Emergency levy fund. A school district may levy a tax for the emergency fund upon the approval of the state appeals board. Once the levy has been received, the district may request approval of the school budget review committee to transfer the funds to any other fund of the district for the purpose of meeting deficiencies in a fund arising within two years of a disaster as defined in Iowa Code subsection 29C.2(1).
	98.111(1) Sources of revenue in the emergency levy fund. Sources of revenue for the emergency levy fund include a tax levy not to exceed $0.27 per $1000 of assessed value of taxable property, and interest on those moneys.
	98.111(2) Appropriate uses of emergency levy fund. Appropriate expenditures in the emergency levy fund include only transfers to other funds for the purpose of meeting deficiencies in a fund arising within two years of a disaster and upon the approval of the school budget review committee.
	98.111(3) Inappropriate uses of emergency levy fund. Inappropriate expenditures in the emergency levy fund include any expenditures other than a transfer to another fund and any transfer not approved by the school budget review committee.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]
281—98.112(275) Equalization levy fund. If necessary to equalize the division of liabilities and distribution of assets in a reorganization, merger, or dissolution, the board of a school district may provide for the levy of additional taxes upon the property of the former district so as to effect equalization pursuant to Iowa Code section 275.31. Once the levy has been received, the district shall transfer the funds before the end of the fiscal year to the funds for which equalization was necessary and for which the taxes were levied.
	98.112(1) Sources of revenue for the equalization levy fund. Sources of revenue for the equalization levy fund include a tax levy pursuant to Iowa Code section 275.31, and interest on those moneys.
	98.112(2) Appropriate uses of the equalization levy fund. Appropriate expenditures from the equalization levy fund are limited to transfers to the funds, in the same proportion, for which equalization was necessary and for which the taxes were levied.
	98.112(3) Inappropriate uses of the equalization levy fund. Inappropriate uses of the equalization levy fund would include transfers to any fund for which equalization was not required or for which the equalization tax was not levied and any uses other than transfers.
[ARC 8054B, IAB 8/26/09, effective 9/30/09 (See Delay note at end of chapter)]
These rules are intended to implement Iowa Code chapters 24, 29C, 76, 143, 256, 256B, 257, 274, 275, 276, 279, 280, 282, 283A, 284, 284A, 285, 291, 294A, 296, 298, 298A, 299A, 300, 301, 423E, 423F, 565, and 670 and Iowa Code sections 11.6(1)“a”(1), 256C.4(1)“c,” 256D.4(3) and 284.13.
[Filed ARC 8054B (Notice ARC 7781B, IAB 5/20/09), IAB 8/26/09, effective 9/30/09]1
[Editorial change: IAC Supplement 9/23/09]
[Editorial change: IAC Supplement 12/30/09]
[Filed ARC 9267B (Notice ARC 9017B, IAB 8/25/10), IAB 12/15/10, effective 1/19/11]
[Filed ARC 0012C (Notice ARC 9793B, IAB 10/5/11), IAB 2/22/12, effective 3/28/12]2
[Editorial change: IAC Supplement 3/21/12]
[Filed ARC 0518C (Notice ARC 0387C, IAB 10/3/12), IAB 12/12/12, effective 1/16/13]
[Filed ARC 1967C (Notice ARC 1881C, IAB 2/18/15), IAB 4/15/15, effective 5/20/15]
[Filed ARC 2310C (Notice ARC 2184C, IAB 10/14/15), IAB 12/9/15, effective 1/13/16]
[Filed ARC 3632C (Notice ARC 3270C, IAB 8/30/17), IAB 2/14/18, effective 3/21/18]
[Filed ARC 4298C (Notice ARC 4160C, IAB 12/5/18), IAB 2/13/19, effective 3/20/19]
[Filed ARC 4529C (Notice ARC 4404C, IAB 4/24/19), IAB 7/3/19, effective 8/7/19]
[Filed ARC 4813C (Notice ARC 4687C, IAB 10/9/19), IAB 12/18/19, effective 1/22/20]
[Filed ARC 4931C (Notice ARC 4817C, IAB 12/18/19), IAB 2/12/20, effective 3/18/20]
[Filed ARC 5650C (Notice ARC 5462C, IAB 2/24/21), IAB 6/2/21, effective 7/7/21]
1	September 30, 2009, effective date of 281—98.12(257,299A) and 281—98.112(275) delayed 70 days by the Administrative Rules Review Committee at its meeting held September 8, 2009. At its meeting held December 8, 2009, the Committee voted to delay the effective date of 281—98.12(257,299A) until the adjournment of the 2010 Session of the General Assembly.
2	March 28, 2012, effective date of 98.12 and 98.64(2)“e,” “h” delayed 30 days by the Administrative Rules Review Committee at its meeting held March 12, 2012.