ISJIT Creates Program to Track ARRA Funds for Members

With the passage of the American Recovery and Reinvestment Act (ARRA), a heightened level of accountability and transparency is required regarding the funds schools will receive. As an ISJIT participant, you are eligible to use specialized accounts we have created to safely and accurately track the stimulus money coming in and how it is spent.

DISTRIBUTION: Stimulus money will be sent to the financial institution where your state aid money is currently deposited. If you would like to invest your state aid and stimulus funds with ISJIT, and are not doing so already, there is a link at the botton of this page that will allow you to transfer the funds into the program and into separated accounts for easier tracking. Because the stimulus money will come from three different sources as outlined below, there is also a form that will allow you to set up three special accounts to track money from each funding source. 

THREE FUNDS: Stimulus funds will come from three sources, and must be separately tracked. Schools will receive State Fiscal Stabilization Funds (SFSF), IDEA special education funds and Title I funds.

It is critical that you understand you must account for these three funds separately.

• SFSF: This money will supplant State Foundation Aid. These funds do not increase a district's spending authority; the money funds the allowable growth that was set by the Iowa Legislature. These funds will be included in your June state aid payment and will not be recorded or transferred separately.
• IDEA Special Education Funds: This is new money that will increase spending authority and fund balance. This money must be spent by Sept. 30, 2011. Districts can track expenses back to February 2009 when the law was passed. The first payment will come in mid-June, and then there will be two payments each in FY 2010 and FY 2011.
• Title 1 Funds: This is also new money that will increase spending authority and fund balance. This money must be spent by Sept. 30, 2011. Districts can track expenses back to February 2009 when the law was passed. The first payment will come in mid-June and then there will be two payments each in FY 2010 and FY 2011.

INTEREST: All three of these funding sources require compliance with federal regulations regarding interest earnings that are earned on these funds. Any interest earned on these funds must be remitted back to the government, but schools may keep up to $250 for administration.

ISJIT PROGRAM: ISJIT recommends that K-12 districts, AEAs and community colleges create three separate accounts. These accounts have these very unique features.

• Automated tracking of interest: Interest earned on the three accounts will automatically be credited to the accounts on the last business day of the month.
• Limitations on the withdrawal of interest earnings: ISJIT will automatically withdraw 100 percent of the interest earnings from the three accounts on the first business day of each month. This process will restrict withdrawal of the interest by the participants.
• Remittance to the government: ISJIT will remit in any manner required by the federal government or the Iowa Department of Education interest earned on these funds in excess of $250.
• $250 Administration Reimbursement: Immediately upon $250 in interest, ISJIT participants will see a credit of $250 in each of the three accounts.

ISJIT strives to meet the needs of members. If you would like ISJIT to handle the accounting for federal stimulus funds, we suggest you first fill out the form at the link below to transfer your state aid payments into ISJIT. Then, you will also want to set up the three separate accounts to track these funds.

You can find the State Aid Form by clicking HERE

The links to forms to set up the three accounts are below:

• State Fiscal Stabilization: click here
• IDEA: click here
• Title I: click here

It is important to note that a report will be due to the Iowa Department of Education on or about July 1, 2009, so it is to your benefit to sign up soon.

Please contact ISJIT if you have any questions or concerns. Please call the ISJIT Cash Management Hotline at 1-800-872-0140.

For questions about stimulus funds, please contact Larry Sigel at (515) 490-9951.

The Iowa Schools Joint Investment Trust (ISJIT) assists more than 325 school corporations in safely increasing their investment income. Since 1986, ISJIT has helped provide additional funds to increase the quality of educational services available to students across the state.

Sponsored by IASB, governed by a representative board of trustees and served by a dedicated team of professionals, ISJIT offers several investment alternatives to meet participants' cash management needs. 

ISJIT DIV 0.1970 07/02/2009 ISJIT DGO 0.2273 07/02/2009