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) will 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 will 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 will 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 that 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 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 only the portion of time that is exclusively and directly related to the juvenile home instructional programs may be charged to the program. The total administrative cost will 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 will 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 need treatment provided by the juvenile home or need 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 7802C, IAB 4/17/24, effective 5/22/24]