Transportation Capital Expense: Reporting Requirements
Beginning in the 2005-06 aid and claim year, State Aid for transportation capital expense is based on the assumed amortization of bus purchase, lease and equipment costs. Multiple assumed amortization tables using a statewide average interest rate generate multiple assumed aidable debt service amounts each year.
District reporting requirements for each area of transportation capital expense appear in bold:
Aid on remaining debt service for bus borrowings issued before 7/1/04 is based on the assumed amortization of the remaining principal of the borrowing, and a remaining life calculated pursuant to statute. The State Aid Office has created a report for each district containing the information on which each amortization is based. A link to this report is included on the 0506 TRAEST report on the web. Districts should review this report for accuracy.
Aid on buses purchased on or after 7/1/04 is based on assumed amortizations of the approved the approved cost of each bus for which an SA-16 form has been submitted. The assumed amortization begins 12 months after the purchase order date. To avoid delayed aid payments and inaccurate projections, districts should submit SA-16 bus purchase approval forms in a timely manner, with all items completed and including required documentation.
Aid on leases beginning on or after 7/1/04 is based the assumed amortizations of the total cost of each lease approved by the Office of Management Services. Amortizations begin 12 months after the lease begins. To avoid delayed aid payments or projections, districts should send leases to the Office of Management Services for approval as soon as possible after signing.
Projection year aid estimates are partially based on the assumed amortization of current year bus purchase and lease costs or planned costs. To avoid inaccurate estimates of aid on bus purchases/leases, districts should report the total costs of any buses to be purchased in the current year and the total cost of any leases to begin in current year in items 164, 165, 166, and 167 on Form FT of the state aid claim due to SED each September.
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Total base year transportation equipment costs reported each year on Schedule G will be amortized over 5 years at the statewide average interest rate, beginning 12 months after the expenses were made. There is no change in reporting of equipment expenses except that districts using bonds to fund a large equipment purchase should now report on Schedule G the total purchase price of the equipment (excluding borrowing costs and interest) rather than the cost of one year of debt service (DO NOT INCLUDE BUS PURCHASES ON SCHEDULE G).
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The statewide average interest rate for all assumed amortizations to begin in the current aid year is based on district bus borrowings during the prior school year. Districts must submit information about bus borrowings on SAMS Schedule F6 by September 1st.