Transfer of Funds for Emergency Executive Order
Executive Order 20-19 indicates "school districts and schools are authorized to transfer operating funds from certain programs that are not already assigned to or encumbered by staff salary and benefits, or otherwise encumbered by federal law" ONLY to provide care to children of critical workers during the day, and to pay additional transportation costs incurred, as long as the fund transfer meets certain criteria. Executive Order 20-41 modifies the previous Executive Order 20-19 to expand the allowable uses. Executive Order 20-57 further modifies the previous orders to allow for the Summer Learning Period.
For districts that are funded under the new Long-Term Facilities Maintenance (LTFM) per pupil funding formula, various LTFM Finance Codes are among the list that is permitted under Executive Order 20-19 and approved by the commissioner for restricted/reserved accounts in Fund 01 - General Fund under certain conditions. However, districts funded under the alternative facilities hold harmless, fund balance transfer authorization is allowed only to the extent that it does not increase state aids or levy authority.
Upon approval by the Executive Council, school districts and charter schools are authorized to transfer operating funds from certain programs that are not already assigned or encumbered by staff salary and benefits, or otherwise encumbered by federal law, for the following purposes:
- To provide care to Eligible Children during the school day and the Summer Learning Period.
- To pay additional transportation costs incurred between March 30, 2020 and the end of the 2019-2020 school year, (as defined in paragraphs two and three), needed to implement this Executive Order in providing distance learning instruction and meal delivery.
- To pay for additional costs related to technology needed to provide distance learning instruction.
- To pay the portion of staff salary and benefits of employees paid through the community service fund normally funded by fees that were refunded, waived, or otherwise not paid during the Closure Period, Distance Learning, Extended Distance Learning, and Summer Learning periods.
- To pay the portion of food service fund staff salary and benefits normally funded by meal reimbursement revenue during the Closure Period, Distance Learning, Extended Distance Learning, and Summer Learnin periods.
- A fund transfer is allowed if the fund transfer does not increase state aid obligations to the school district or charter school or result in additional property tax authority for the school district. A transfer is limited to the operating funds of a school district or charter school. A school board must approve a fund transfer by the fiscal year reporting deadline. A school district or charter school must maintain accounting records for the purpose of this Executive Order that are sufficient to document both the specific funds transferred and the use of those funds. Such accounting records are subject to auditor review. Any execution of this flexibility must not interfere with or jeopardize funding per federal requirements. Any transfer must not interfere with the delivery of distance learning or social distancing models for all students and school staff.. The Commissioner of Education must provide guidance on the fund balance transfers that are allowable for the purposes outlined above.
Request for Fund Transfer
To submit a request for a fund transfer, a Request for Fund Transfer form must be completed and submitted to Minnesota Department of Education. The form must be accompanied with a copy of the following documentation:
- Documentating adoption of board resolution stating that the fund transfer requested meets Executive Order 20-19 paragraph 21(c), Executive Order 20-41, paragraph 16(f); as modified by Executive Order 20-51 paragraph 24(f); and
- Official school board minutes documenting board approval of the fund transfer