Frustrated by the U.S. Department of Education’s failure to undertstand the impact on Missouri career and technical schools of costly federal accounting requirements that conflict with existing state standards, U.S. Rep. Blaine Luetkemeyer (MO-9) has written a strongly worded letter to Education Secretary Arne Duncan calling for a “complete fix” to the system that has caused confusion and fiscal uncertainty for the schools.

The following 9^th District schools are affected by the regulation: Eldon, Hannibal, Kirksville, Macon, Mexico, Moberly, Pike County, St. Charles and Washington. Also signing the letter were U.S. Rep. Jo Ann Emerson; U.S. Rep. Todd Akin; U.S. Rep. Sam Graves; U.S. Rep. Billy Long and U.S. Rep. Vicky Hartzler.

In the letter today to Duncan, Luetkemeyer and his colleagues said the agency provided slow responses and confusing instructions regarding career centers’ attempt to receive a waiverfrom a costly accounting requirement that has led to uncertainty among the schools. While a short-term extension was granted, it was not a complete fix in the form of a waiver. Additionaly, career centers have indicated they were given only 10 days to sign an agreement stating that they would convert their entire accounting system over to a new system, even though the state of Missouri permits school districts to use the existing accounting system in question. Luetkemeyer said there also were conflicting dates provided by the department regarding when new accounting regulation would be instituted.

“While appreciative of the extension, we are frustrated by the varying information, short deadlines and lack of awareness about how this regulation impacts job creation in the state of Missouri. We request a complete fix so that schools are not stuck in this same situation come 2013 or 2014,” Luetkemeyer said.

Since 1997, federal regulations have stipulated that postsecondary education institutions applying for Title IV funds must submit annual financial statements to the Department of Education prepared on an accrual basis, a method of accounting. For years, the Department of Education has granted multiple extensions to Missouri career centers to operate under their current reporting system -- cash accounting -- because Missouri allows school districts to adopt any comprehensive basis of accounting. Missouri is unique from many states in that many of its career centers are part of local school districts.  There are at least 32 career centers in Missouri that currently participate in the Title IV programs.  Because Missouri allows school districts to adopt any comprehensive basis of accounting, 27 of the 32 career centers in Missouri are preparing their financial statements using the cash basis method of accounting. 

“At a time when schools are strapped for cash, we do not believe it makes sense to saddle them with more uncertainty.  Similarly, at a time of historic unemployment, we do not believe the administration should be denying people the opportunity to obtain new training.  We’d once again respectfully ask the Department to reconsider this regulation, which shows a disconnect between education policy and job creation,” Luetkemeyer wrote in the letter to Duncan.

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