ADE Director's Communication Memo Form


Memo Number : FIN-06-024

Date Created : 08/31/2005

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Fiscal and Administrative Services - Dr. Bobbie Davis, Assistant Commissioner
Subject:
9% Maintenance Expenditure Requirement

Regulatory Authority:
Act 1426 of 2005

Contact Person:
Patty Martin

Phone Number:
501/682-5124

E-mail:
pmartin@arkedu.k12.ar.us


Act 1426 of 2005 established a requirement for each school district to dedicate nine percent (9%) of its foundation funding exclusively to the payment of utilities and custodial, maintenance, repair, and renovation activities, and related personnel costs of academic facilities.  Academic facilities are defined at A.C.A. §6-21-803.  This specifically excludes facilities used exclusively for extracurricular activities, pre-kindergarten education, stand-alone district administration buildings, and transportation and maintenance buildings.  Districts should determine the allowable expenditures for multi-use facilities based on the pro-rated square footage or by time used for academic purposes. 

A spreadsheet is attached to this Commissioner’s Memo showing each district’s 9% expenditure requirement.

Districts are allowed to include the following expenditures in the 9% requirement:  Fund =2, Function Codes 2600 through 2699, Object Codes 61000 through 65199, and Object Codes 65300 through 69999, minus the district’s athletic expenditures.  To determine maintenance expenditures related to athletics, a district may use actual athletic expenditures, the allocation method provided in CM IA-05-123, or an allocation method the district believes more accurately states athletic expenditures related to maintenance.

For questions concerning the calculation of the 9% requirement or allowable expenditures, please contact Patty Martin at 501- 682-5124.  

For questions concerning if a building qualifies as an Academic Facility, please contact Dave Floyd at 501 682-4261.




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