Second Quarter Newsletter 2019-20

IASBO Mission StatementThe Mission of the Iowa Association of School Business Officials is to provide

programs and services that provide the highest standards of school business

management practices and professional growth.

Letter From The President

Iowa ASBO2019-2020Fiscal Year

Officers

President,Denelle Gonnerman, CedarFalls

President Elect,David Nicholson, CedarRapids

Past President,Kevin Kelleher, DubuqueCSD

Once again, it’s that time of the year when we gather aroundthe table with our friends and families to pause and reflect forwhich we are thankful for. I am thankful for so many things;family, health, friends, faith, professional colleagues, butspecifically this year, you our members, for allowing me theopportunity to serve as the Iowa ASBO president. It’s an honorto work with such dedicated and supportive members, board ofdirectors, committee volunteers and vendors.

I would like to take this opportunity to thank so many of youwho organized, volunteered, attended, sponsored or had anexhibit at our recent, successful Iowa ASBO fall conference inAltoona. Record attendance and exceptional speakersprovided for two days of outstanding professional developmentand networking.

Congratulations to Ed Chabal, ASBO Internationals newlyelected Vice President. Ed is a true leader. During hiscampaign Ed built relationships one by one. It was hiscourage, hard work and desire that pushed him forward. IowaASBO has so much to share with our fellow members fromaround the globe. With Ed at the helm, we will continue tobuild and grow on that excellent partnership with ASBO.Congratulations again Ed! ASBO International is certainly“Ready for Eddie”!

In October, twenty-eight Iowa ASBO members traveled to

Secretary,Mary Beth Fast, UrbandaleCSD

Treasurer,Greg Reynolds, Burlington

District Directors,Brian Gubbels, Harlan CSDRox Aude, Camanche

Executive DirectorNancy Blowiowaasbo@gmail.com 319-931-1833

Assistant ExecutiveDirectorTara Andersontara.iowaasbo@gmail.com515-681-9532

National Harbor, MD to attend the ASBO InternationalConference. What a fantastic turnout, exceptional conferenceand outstanding professional development. I would certainlyencourage all Iowa ASBO members to attend a futureconference. The 2020 ASBO International Conference will beheld in Nashville October 2-5. Ed will serve as President in2021 in Milwaukee October 13-16.

The board continues to discuss the 2019-20 goals. As areminder our goals are as follows:1. Review and explore eliminating the spring conference andreplacing two yearly conferences with one, adding additionalprofessional development for members2. IASBO assistance to new members3. Providing services to SBO’s who will be absent for a longperiod of timeWe have received great feedback from many membersregarding the review and exploration of eliminating the springconference; thank you. We are excited about this futurepossibility and will certainly provide updates as we moveforward. We welcome your continued ideas and feedback toensure we are meeting your needs. While we have made greatstrides forward, as always there is still work to be done.

Last week’s Thanksgiving holiday offers a special opportunityto reflect on our many blessings and to be grateful for the giftswe have received. On this day, set aside for giving thanks,express your gratitude to the men and women and theirfamilies who selflessly serve to protect our country andfreedom. Take time to enjoy the little moments and if possiblethank those that have helped, impacted or shaped the personyou are.

The board and I would like to wish all of you a HappyThanksgiving and blessed holiday season. We are thankful forour members and partners; without you, there would be noIowa ASBO.

Happy Thanksgiving to you and your families.

Denelle Gonnerman2019-20 IASBO President

www.omniapartners.com/publicsector

ON THE HORIZON

Save The Date! Registration is open on the IASBO website.

IASBO is inviting Building Secretaries from all school districts across the state, K-12, to attendour 1st Annual Secretaries Conference. Mark Friday, June 19th on your calendars! Pleasereach out to all of the Secretaries in your district to be a part of this opportunity for excellentprofessional development, networking, and encouragement! Of course, SBOs are welcome toattend, as well as all Secretary position classifications (i.e. Attendance, Guidance, etc.). Weintend to cover topics such as: Internal Controls, Ethics, Student Coding, How to keep your“morale” high when you’re the “face” of your building.

Join us for a day of professional development and an extra dose of encouragement fromkeynote speaker, Gerry Brooks (www.gerrybrooksprin.com)!

Location - Gateway Hotel & Conference Center - Ames, IACost - $75

Registration Deadline - June 8, 2020________Link to Grinch Secretary video -For a sneak peek & a good laugh at the keynote speaker - click here ._________Event Registration - click here .

Critical Calendar Dates WebinarThis webinar series is designed for members new to the profession although anyoneinterested is welcome to attend. These 60-minute live webinar sessions, heldmonthly, are presented by IASBO Board members. The presentations normallyfollow the Critical Dates Calendar and will include upcoming deadlines andrequirements. Members who join the webinars have the opportunity to ask questionsvia chat and receive valuable information to give focus to approaching jobresponsibilities. Curriculum is driven by the Critical Dates Calendar distributed tomembers in booklet form and also found on the IASBO website.

Webinars are held monthly. Those coming up are:12/18/19 - 9 am - Calendar of Critical Dates - Greg Reynolds1/7/20 - 9 am - Calendar of Critical Dates - Denelle Gonnerman2/11/20 -9 am - Calendar of Critical Dates - Dave Nicholson3/19/20 - 9 am - Calendar of Critical Dates - Mary Beth Fast4/7/20 - 9 am - What Your Insurance Agent Should Do For You - Jester Insurance,Nolan Grimm5/12/20 - 9 am - Calendar of Critical Dates - Rox Aude6/9/20 - 9 am - Calendar of Critical Dates - Brian Gubbels

Fall and Winter Regional Meeting DatesThe IASBO Fall Regional Meeting will be Thursday, December 12, from 9-11a.m. The focus is “Best Practices” within our districts. Please see below for thespeaker/topic line-up and attendance locations established for each Region. TheFall and Winter Regional Webinars will offer two Renewal Credits.

The Winter Regional Meeting will be Thursday, February 6, 2020. John Parker willpresent the annual update for the Certified Budget. This will also be a webinarmeeting.…………………………………………………………………………………..

Best Practice Topics 12/12/2019 and PresentersCross Training & Transition Planning - Angie Morrison & Melissa FettketherChanges to the W-4 form for 2020 - Heartland AEA - Kurt Subra, Brian Whalen, Steve Jordan+ GWAEA - Vanessa RaueWeblink -Tracking and approving Employee Leaves through Software Unlimited - Sue Thomsand Sharon HougLine Item Budget - Laura MorineHelpful Excel Formulas - Michael KalvigBrief sharing on attendance at Midwest Facilities Masters Conference - Lisa JohnsonGreat Iowa Treasure Hunt - Sheila TharpTracking Fixed Assets/PPEL Expenses - Dallon ChristensenGetting the most out of Medicaid - Teresa ShafferSUI Tips, Tricks & Shortcuts - Robin Leonard & John Berg

Locations for 12/12/2019

Region 1

Keystone AEA Elkader IAD 4&51400 2nd St NW, Elkader, IA

Region 2Forest City CSDBoard Room145 S Clark Street, Forest City, IA Spencer CSDConference Room B23 E 7th Street, Spencer, IA

Region 3Northwest AEARoom D1520 Morningside Ave, Sioux City, IA MOC-Floyd Valley SchoolCentral Office709 8th St SE Orange City, IA

Region 4Fort Dodge CSD Administation BldgConference Room104 S. 17th St. Fort Dodge, IA

Region 5Cedar Falls CSD Admin BldgBoard Room1002 W 1st St, Cedar Falls, IA Iowa Falls CSDConference Room710 N St, Iowa Falls, IA Grinnell-Newburg CSDConference Room1333 Sunset St, Grinnell, IA

Region 6Mississippi Bend AEADr Yoder Room729 - 21st St, Bettendorf, IA

Region 7GWAEAAutumn Room4401 6th St SW, Cedar Rapids, IA 52404

Region 8Conference Operations CenterThe Harper Room1917 Dean Ave, Des Moines, Iowa Ames Admin Bldg2005 24th St, Ames

Region 9Atlantic High SchoolICN Room1201 East 14th St./Atlantic, IA

Region 10

Mt. Pleasant Business Office1010 E. Washington St., Suite 102, Mt. Pleasant, IA Great Prairie AEA OttumwaRm 21C501 E 2nd St., Ottumwa, IA

New Member Budget TrainingThis training is designed for new members who are completing the Certified Budgetfor the first time. It is a required session for those in the Initial AuthorizationProgram. You must attend once in your two year training period. It will be held onWednesday, January 29, 2020, at the Gateway Hotel & Conference Center inAmes. Presenters for this date are: Patti Schroeder and Shawn Snyder, from theIowa Association of School Boards, and John Parker, from the Iowa Department ofManagement. Registration is OPEN for this training on the website. Please registerASAP.

2020 Spring Conference, Annual Meeting and Trade ShowMark your calendars for the Spring Conference to be held at the Scheman Center -Iowa State Campus in Ames, on March 25-26, 2020! Please remember to inviteyour facilities people to this conference. There will be facilities professionaldevelopment sessions and the opportunity to visit the Trade Show. Registration willbe available on the website in January. Some topics include: Facilities Impact onSpecial Education, Leaders vs. Managers: Which One Are You?, FacilitiesManagement Best Practices Can Help Your Bottom Line, Reaching Your Potential,Ethics, Internal Controls, Fundraising, Audit Preparation, Medicaid, UnderstandingInvestment Products, Construction: The Good, the Bad and the Uh-Oh, NutritionReview, School Safety/ALICE/Crisis Management, Board Policy, School WebsiteAnalysis, Bus Safety, the DE Update and the popular Crackerbarrel Sessions.Watch for additional sessions and conference information soon.

2020 New SBO Boot CampNew SBOs – Mark your calendars for Boot Camp – to be held on Friday, June 19that the Gateway Hotel & Conference Center in Ames. This session is for those in theirfirst year as an SBO. It is a required session for those in the Initial Authorizationprogram.

IASBO Board MembersIASBO Board MembersYour IASBO Board Members are a dedicated group of School BusinessOfficials working hard to deliver incredible professional development toyou. Below is a peak behind the scenes of their busy lives.

Distric t One Director, Rox AudeDistric t One Director, Rox Aude started in the Camanche CommunitySchool District on January 4, 1990 as the District's bookkeeper and hasbeen the Business Director since 2002. She is a graduate of Mt. St. ClareCollege with a Bachelor of Arts Degree in Business Administration and carriesthe State of Iowa License for School Business Official Authorization.

When asked what she enjoys about working with the district, Rox states " Ilove this District. It's where I live and I feel it is a great place to raise a family.This community cares about their future by investing in our children."

In her spare time, Rox enjoys spending time with family and friends. As wellas hitting the golf course, reading a good book and crafting. It is a naturalhabitat to work in a profession that provides a safe, learning environment forchildren since Rox has been an aunt since she was 8 years old. Having agrand total of 16 nieces/nephews and 20 great nieces/nephews, the moldingof the youth for the future is an important value Rox takes very seriously.

A Faith-filled life is a guiding force every day with every decision. On daysthat seem a little tense or hard to maneuver, any song by Lauren Daiglerights the ship for Rox, Look Up Child and You Say, to name onlytwo. Move forward with a song in your heart, joy in your step and love inyour soul.

Secretary , Mary Beth Fast Secretary , Mary Beth Fast is the CFO and Board Secretary/Treasurer atthe Urbandale CSD. I have worked in 4 school districts, including a sharedposition and have been in school business for over 20 years. I enjoytraveling, cooking, landscaping and being outdoors doing various activities.My husband and I have 3 grown children and 2 granddaughters. As Ioriginally transitioned from a bank position to school business, IASBO was agreat support and the help I've received through the years from fellowSBO's has been invaluable. Those friendships are special to me. I'mcontinually amazed at the openness and willingness of SBO's to share andhelp each other. That is truly one of our organization's best qualities. I havebeen honored to serve on the IASBO board as secretary and have beenimpressed with the leadership of Jim Scharff and now Nancy Blow in ourExecutive Director positions. IASBO has been taken to new levels throughtheir leadership. As IASBO continues to grow and stretch itself in providingmembership opportunities and educating new members, I'm excited to seewhat the next chapter brings!

Distric t Two Director, Brian Gubbels D istric t Two Director, Brian Gubbels works for the Harlan CommunitySchool District. My title is Director of Finance. I oversee all of the finances ofour district and am responsible for the state reporting of any reports thathave finances tied to them. I also oversee part of the reporting for ournutrition program and our Title programs. My hobbies are exercising,reading, spending time with family and friends, and watching and attendingsporting events. I enjoy traveling and meeting new people. My favorite songis Reminiscing by the Little River Band and favorite movie is The ShawshankRedemption. I chose to serve IASBO because so many of our membershave given and helped me in my SBO career and this is a way of givingback. Great professional development is very important to me. My wife Pamand I have been married for 35 years and we have three children, Matt,Megan and her husband Ryan, Molly, and two grandsons, Ross and

Harrison.

Past President, Kev in KelleherPast President, Kev in Kelleher· school district/title/job duties - Dubuque CSD/CFO (Chief FinancialOfficer)/Same duties as many Iowa SBOs· hobbies - Golf, Going for convertible rides, traveling· favorite book/movie/song/vacation/etc - Vince Flynn (Mitch Rapp series) &James Patterson (Alex Cross series & Michael Bennett series)/Fast & Furiousseries/AC/DC Back in Black/Trips to Hawaii· why you chose to serve IASBO - I wanted to give back to theorganization which welcomed me and provided me with many tools to domy work and whose many members helped me out during the early part ofmy school SBO career. Many of those members continue to share theirexceptional knowledge and advice with me today each time I ask themquestions on issues or problems.· family info - Wife, Laurie married 32 years, 3 sons ages 24, 22, and19. Two are fully employed and one is a sophomore at Iowa State.

President, Denelle GonnermanPresident, Denelle GonnermanHello Iowa ASBO! My name is Denelle Gonnerman and I serve as your 2019-20 Iowa ASBO president. I am currently the Chief Financial Officer at CedarFalls CSD but prior to accepting my current position, I was the PayrollSpecialist and Supervisor of Financial Services. My family consists of myhusband Bruce of 22 years, our two children Ashton (16) and Malea (13)and our Wheaten Terrier, Chance. Some of my hobbies include traveling,golfing, and reading. I have been blessed to travel many places within theUnited States and would highly recommend Mesquite, NV (golfingcommunity), Maui, HI, Destin, FL, Nagshead, NC, Lake Tahoe, YellowstoneNational Park or Washington D.C.. So many places to see! Next on mybucket list - Europe! I have been a member of IASBO since 2010 and haveserved in several different roles throughout the years. I enjoy serving IASBOand appreciate all the lasting relationships I have built and continue to buildwith our members.

Treasurer, Greg ReynoldsTreasurer, Greg ReynoldsI am the Director of Business Services for the Burlington Community SchoolDistrict working as the SBO/Board Secretary and Treasurer. Along with mostof you, I also supervise the transportation, technology, food service andmaintenance departments. I have been with the Burlington Schools for fouryears and was with the Keokuk Schools for eleven years before that. I haveworked several jobs over the years including public accounting,manufacturing, public schools, banking and then back to public schools. Idiscovered that I really enjoy the "business" of public education andespecially enjoy working with IASBO and all of you. I chose to serve IASBOto give back to the organization what it has given to me for many years. Itis a wonderful organization that I believe gives each of us the tools,resources and training to do our best for children, staff and thecommunity. I am married with three children, all girls, even the dog is female,so I am definitely outnumbered. I enjoy travelling, like to attend andparticipate in sporting events and spend time with family and friends.

President-Elect, Dave NicholsonPresident-Elect, Dave NicholsonDavid Nicholson is the Executive Director of Business Services with CedarRapids Community School District. As the Executive Director of BusinessServices he is responsible, with the support of great Managers, forAccounting, Budgeting, Food & Nutrition,Operations & Maintenance,Purchasing and Transportation.

In his spare time, he loves to attend Iowa State Football and basketballgames, watching his daughters perform in their activities, spending time with

friends and family and reading good mystery/thriller books.

I chose to serve IASBO because I have gained so much professionally andpersonally from IASBO over the years. I can honestly say that Iprobably would not have stayed in this profession if it wasn't for IASBO. It isa very challenging profession and IASBO has always been there to provideguidance and support to be successful.

David and Amy, his wife of 22 years, are proud parents of two daughtersEllen, a freshman at the University of Northern Iowa, Grace, a sophomore inhigh school, and Lenox, a rambunctious 1 1/2 year old puppy.

ASBO International ScholarshipsASBO International ScholarshipsThe IASBO Board voted to annually offer seven $2,000 scholarships to attend an ASBOInternational Conference. Scholarship winners will have the choice of attending the ASBOInternational Conference, the Executive Leadership Forum or the Eagle Institute.

Five $2,000 scholarships will be awarded in 2020, one to each of the even numberedRegions. Five $2,000 scholarships will be awarded in 2021, one to each of the odd numberRegions. Two $2,000 scholarships will be awarded to Emerging Leaders each year.

Application criteria will be created and distributed via email in January with the scholarshipsawarded at the Spring Conference. Please contact Nancy at iowaasbo@gmail.com or319-931-1833 with questions.

ASBO InternationalNotes

This last month has been avery exciting time for mehaving been elected Vice-President of ASBOInternational starting inJanuary of 2020! It is indeed

a very humbling honor to be able to represent Iowa among the over 4,000 ASBOInternational members worldwide!! So what does being elected as ASBO International Vice-President mean to my career? Firstof all this is a three year commitment - Vice-President in 2020, President in 2021 and Past-President in 2022. Throughout this time, I will still be the CFO at Mt. Pleasant CommunitySchool District. As a member of the ASBO International Board, we have monthly Boardmeetings that are mostly conducted by phone. We do meet face to face three times duringthe year - at the Executive Leadership Forum (New Orleans this year), at a meeting with thestate Executive Directors (New Hampshire) and at the Annual Conference and Expo(Nashville). Each Board member is also assigned to two state conferences to bringgreetings from ASBO International and to explain the programs and opportunitiesavailable. This year I will be traveling to Wisconsin and Arizona as the ASBORepresentative.

The last six years leading up to this achievement has been so rewarding both personallyand professionally. Through my ASBO International involvement, I have been fortunate totravel to 25 different states, Toronto, Canada and Cuba. I have met so many amazingpeople worldwide through the years that sit in the same positions and face the samechallenges that we do. In my opinion, one of the greatest qualities that ASBO Internationalprovides, is the network for us to come together to ask questions and share our bestpractices. I look forward to continuing to build this network! I have many people to thank for me being in this position today. First, I have a veryunderstanding family that puts up with my travel and my late nights at the office. My Districtand Superintendent have been very supportive of my travel and my office staff have beengreat to cover for me while I have been out of the office. Iowa ASBO and my sponsors haveprovided financial backing to cover travel expenses. Nancy Blow and I go way back in thisprofession and she has been the ultimate cheerleader for me during this journey. But mostimportant, thanks to each and every one of you for being there for me. It has been a longjourney to get to this point and you have given me encouragement along every step of theway. Thank you so much!! I very much look forward to representing Iowa on theinternational level!!

Ed Chabal

The Iowa contingent at National Harbor, Maryland

Rox Aude - I had theopportunity to attendASBO International forthe first time by goingto the AnnualConference & Expo. TheAnnual Conference &Expo was held this yearin National Habor,Maryland. It was sucha great experience. I

am forever grateful forthe opportunity toattend and to be a partof witnessing Iowa'svery own Ed Chabel besworn in as the nextVice-President of ASBOInternational. With Edbeing at the podium forthe next two years, Iwould encourage ourIowa contingency toattend Nashville (2020)and Milwaukee (2021). Not only was the Annual Conference & Expoa great experience, but the time spent with fellow SBO's ispriceless.

Mary Boege - I had a wonderful time at my firstASBO International Conference. I was impressedwith how many activities and sessions wereavailable for conference participants. The sessionthat sticks out to me that I attended was onCrowdfunding Best Practices. We currently don'tuse it but found it very informative. I wouldencourage everyone to attend an ASBOInternational Conference if ever given theopportunity.Chris Stensland - THANK YOU IASBO!It was an extreme honor to share with the 2019 IASBO LeadershipAward with Mary Boege from South Tama CSD. The best part of theaward will be to grant an Ames student with a $1,000 scholarship. Theaward also paid for the 2019 ASBO International (ASBOI) Conventionin National Harbor, Maryland. I would encourage any SBO to attend the international conference ifcircumstances allow. This experience is a great chance to network notonly with your fellow IASBO members but also with business officialsfrom all over the country and even the world. I particularly found thesession on the ESSA School Level Reporting to be extremelyinformative. Having served on the Iowa advisory committee, learninghow business officials from all over the county were developing theirreporting models reinforced that Iowa is on the correct course withour model.The next two years are a great opportunity to enjoy thisexperience. Next year’s conference is in Nashville and the 2021conference is in Milwaukee, both of which should be relativelyaffordable. Ed Chabal of Mt. Pleasant was recently elected Vice-President of ASBOI and will serve in that role for the Nashvilleconference and as President for the Milwaukee conference. Pleaseconsider attending one of these conferences to support Ed andexperience great learning and networking opportunities. Again thank youIASBO for financial support for this conference. Chris Stensland

Electronic Document Management Saves Time and MoneyOne of the largest obstacles facing K-12 school districts is how to handle the mountains of papernecessary to run your district. How do you tackle this issue while also ensuring security,compliance, and easy access to all documents?Maintaining traditional, paper-based document management can cost 13 to 31 times the cost of thepaper when you include the space for filing cabinets, off-site archival storage, fire protection, climatecontrol, access control, etc. Depending on your state’s retention laws, some districts are required tokeep student records 99 years after graduation.

Manually filing and retrieving paper documents takes time. Research from industry analysts,including the Association of Information and Image Management, PricewaterhouseCoopers, andCorp! Magazine shows that it can cost as much as:

$20 to file a document in a folder or filing cabinet$120 to find a misfiled document (if you can find it at all)$220 to reproduce a document that was lost

Industry analysts have evaluated that on average:It can cost about $25,000 to fill a file cabinet with documents.Once filed, it takes $2,000 per year to maintain and safeguard the information in a single filecabinet archive. This includes the cost of floor space, fire protection, climate control, secureaccess, and so on.

Filing documents is a necessary administrative activity. Electronic document management hasmany benefits that will make your life easier, keep documents safe and secure, and ultimately saveyour district money.

Corey Atk inson, Director of Sales & Marketing – Software Unlimited, Inc.

Your identity is your most valuable asset – protect it

Your identity is an asset – as valuable as cash in hand – and it can be easilycompromised through theft or a data breach. These tips will help you protect youridentity and finances.

For more information, click here or contact your local Horace Mann representative .

Final Hospital Transparency RuleIssued and Transparency in Coverage

Rule ProposedProvided by Mark J. Becker & Associates, LLC

BackgroundOn June 27, 2019, President Donald Trump signed an executive order aimed at improvingprice and quality transparency in health care. The order directs federal agencies to issueguidance in a number of areas regarding health care costs.

An executive order is a broad policy directive used to establish how laws will be enforcedby the adminis tration. The order does not make any changes to existing regulations;however, it directs federal agencies to issue new guidance implementing the order’spolicies. The executive order issued in June 2019 gives agencies between 90 and 180

days to draft regulations to implement the order’s policies.

Disclosure of negotiated rates; cost-of-care and de-identified federal healthcare data toprovide consum ers with clearer information about cost of care; including out of pocketcosts before receiving services, are included in the June 2019 directive.

Two rules were released by the federal agencies in November 2019; one final rule andone proposed rule.

Final Rule on Hospital Price TransparencyOn Friday, Nov. 15, 2019, the administration released its final rule regarding hospitalprice transparency. This final rule will take effect Jan. 1, 2021, a year later than originallyproposed.

The final rule is the Centers for Medicare and Medicaid Services’ (CMS) response tofeedback on a proposed version of the rule.

What’s included in the final rule?Hospitals will now be required to provide easily accessible billing information to patients.This means having all standard charges available online and in one single data file thatcan be “read by other com puter systems,” according to a CMS press release.

The charges listed would include “the gross charges; payer-specific negotiated charges;the amount the hospital is willing to accept in cash from a patient; and the minimum andmaximum negotiated charges,” according to the release.

As part of the final rule, CMS was granted more authority over enforcement. Specifically,the department has greater capability to audit hospitals and issue fines of $300 per day tothose who are noncompliant.

What’s next?The rule won’t be effective until January 2021. In that time, hospitals will be working tomake the applicable data available online.

Proposed Rule on Transparency in CoverageOn Friday, Nov. 15, 2019, the administration also released a proposed rule that calls fortransparency mandates for insurers and self-insured group health plans.

What’s included in the proposed rule?The transparency in coverage proposed rule would allow consumers to shop andcompare costs between specific providers before receiving care, including receivingaccurate estimates of any out-of-pocket costs they must pay to meet their plan’sdeductible, co-pay, or co-insurance requirements. This data would be made available byrequiring most employer-based group health plans and health insurance issuers offer inggroup and individual coverage to disclose price and cost-sharing information toparticipants, beneficiaries, and enrollees up front, in real time.

Under the proposal, health insurance issuers and self-insured group health plans wouldalso need to disclose on a public website their negotiated rates for in-network providersand allowed amounts paid for out-of-network providers. The rule is also intended toencourage issuers to offer new or different plan designs that incentivize consumers toshop for services from lower-cost, higher-value providers by allowing issuers to takecredit for “shared savings” payments in their medical loss ratio calculations.

What’s next?

This is just a proposed rule, which means no changes will be made until the rule isfinalized. The proposed rule is currently open for comments which will be held open for 60days following Nov. 15, 2019. The federal agencies are proposing that all components ofthe rule would be applicable for plan years (or in the individual market policy years)beginning on or after one year after the finalization of the rule, except for the medical lossratio provision, which would be applicable beginning with the 2020 medical loss ratioreporting year.

IowaMedicaidUpdateThere are times when districts will ask me how their rates are determined for Medicaidreimbursement. The process is somewhat straight-forward, but also is completed in multiplephases. I will attempt to share an overview of the process without going into too many of thedetails, as there is a limit to the length of this article.

The first step in the process is for a district to complete their SES report to the Departmentof Education (DE) by the deadline in September. Some of the data in the Medicaid sectionof this report is pulled by the DE and used to calculate the rates for the next fiscal year. Forexample, the data from the FY19 SES (submitted in September of 2019) will be used tocalculate the cost rates for the FY21 year (starting July 1, 2020).

Staff at Iowa Medicaid Enterprise (IME) will take the data from the DE and use a formulaprovided by the federal Medicaid agency (CMC) to come up with the cost rates. The IMEstaff will then forward the rates to staff at the DE for review and distribution. Should there beany rates outside normal expectations, DE staff may contact the district to verify and confirmtheir SES data was correct.

Once all of the rates are calculated and verified, they are posted on the DE website andforwarded to all vendors for their reference. IME pays school-based services based on a feeschedule policy. This means they will pay a claim from a district for their cost of the service,or a maximum amount set by IME (whichever is lower). The maximum amounts were set in2002 when the services were first allowed by Iowa Medicaid. Those maximums have notchanged over the years. Within that last couple of years, a few districts have had their costrate exceed the maximum set by IME. In those cases, the claim submitted for payment will bereduced to the maximum amount.

For more information about this article, please feel free to contact Dann Stevens, CEO ofTimberline Billing Service LLC at Dann.Stevens@timberlinebilling.com or at (515) 222-0827 Ext 110.

Liabilities for Schools DistrictsAs a School District Administrator you wear many hats at your district. Depending on yourdistrict’s size you could be in charge of Transportation and/or Food Service, the HumanResource specialist and the head of Buildings & Grounds. All of those responsibilities bringto light various insurance exposures that your district has. What we’ll focus on here is theleading risk exposure issues that drive up liability losses for public school districts.The data we will review in this article comes from a nationally known third-party claimsadministrator that handles General Liability and Automobile Liability claims for public schooldistricts. The data focuses on the top sources of claims for frequency and severityexperienced by 575 public school districts in the Midwest ranging in size.

Automobile Liability

The number one source of claim frequency and severity involves intersection accidents withdistrict vehicles. It should come as no surprise that bus accidents at intersections is theleading trend for auto claims. This can be attributed to distracted driving.

Outlined below are strategies to help combat distracted driving for bus drivers and otheremployees while transporting students:· Have bus drivers learn their routes thoroughly to limit GPS dependency.· Student conduct on a bus poses a significant risk for driver distractions. Disciplinepolicies need to be in place and followed on a consistent basis.· District must have steps & consequences for poor student behavior. Fighting or bullyingshould have severe consequences such as removal from the bus for an amount of time oreven permanently if needed.· Drivers should be trained in student management and conflict resolution.· Using security cameras on a school bus can be a deterrent against bullying or badstudent behavior. In addition video footage can be credible evidence of student misbehaviorwhen it does occur.

General LiabilityWhile transportation drives the Automobile Liability exposures for public school districts,they also bear a significant exposure under the General Liability. The four leadingexposures that lead to losses for public school districts under the General Liability are:· Athletic Events· Slips/Falls· Assaults/Fights arising out of lack of Classroom Supervision· Sexual Misconduct

Many instances of claims at athletic events involve spectators slipping on bleachers due todebris, water formed through melting ice, uneven ground by the steps leading up to thebleachers, jagged edges, or endcaps missing from bleachers causing the railings to break.By taking the following Loss Control recommendations prior to athletic events a publicschool district can greatly reduce its exposure to potential losses and resulting litigation.· Prior to the event inspect the bleachers for any defects or debris/water accumulation.· Make certain that the maintenance staff are properly trained on hazard recognition.· Make certain the district Buildings & Grounds team have a program in place to deal withsnow/ice management and resulting water on your floors. This is especially important ongame days.· Slips and falls on school district premises can lead to expensive lawsuits being filed andto key personnel losing valuable time if they have to take part in depositions. Buildings &Grounds staff should be adequately trained on hazard recognition. Make certain they walkthe grounds on a regular basis. They should be looking at sidewalks, parking lots,playground surfaces, and lighting fixtures. If they spot a hazard they should immediatelyreport it to the main office and/or the department director and take proper steps to correctthe hazard.

One area of exposure that public school districts face every day and is becoming more andmore prevalent is sexual misconduct allegations made against students, teachers,administration, and staff. This is a very serious problem and must be dealt with immediatelyno matter how “minor” the allegation may seem. In Iowa, failure to report any mental orphysical abuse to the proper authorities can, and will, lead to loss of certification andprobable criminal charges.

The following are recommendations to help mitigate a districts exposure to sexualmisconduct:· When district administrators are visiting schools, they should be asking relevantquestions. Odd behavior by an employee could be a sign of inappropriate activity.· Make certain to implement common sense rules on interactions between students. Informall employees if they see or hear a rumor that they should immediately report it to anadministrator. Conversations and meetings should be thoroughly documented.· Get relevant personnel involved – operations staff are the “eyes and ears” of a schooldistrict as they see and interact with students and staff daily.· Make certain it is stressed to staff that there is a zero tolerance policy when it comes to apotential sexual misconduct issue.

Michael McHugh

Area Executive Senior Vice President – GallagherIPSIP Administrator

Counsel’s CornerBy Danielle Jess Haindfield and Elizabeth Heffernan

Ahlers & Cooney, P.C.

Forecasting the Upcoming Changes to the FLSA OvertimeExemptions

As we approach the end of the year, employers should be aware of two major changesto the Fair Labor Standards Act (FLSA) that will go into effect on January 1, 2020. These rulechanges effect (1) the salary threshold requirement for exempt employees and (2) thecompensation threshold for the “highly compensated employees” (HCE) exemption.

The FLSA is a federal law that guarantees employees a minimum wage and requiresemployers to pay overtime for hours worked in excess of 40 hours per workweek at a rate ofno less than one and one half times an employee’s regular pay, unless that employee is deemedexempt under the law. The most significant exemption is the “white collar” or EAP exemption,which applies to “executive, administrative or professional” employees. 29 U.S.C. § 213(a)(1). There are three requirements an employee must meet to qualify for the EAP exemption:

1. The employee must be paid on a salary basis;2. The employee must have the “primary duties” of an executive, administrative, or

professional worker; and3. The employee must be paid a minimum “salary threshold”

The current salary threshold is set at $455 per week. On January 1, 2020, that threshold willincrease to $684 per week. After this change goes into effect, some employees who arecurrently exempt because they make more than $455 per week, but less than $684 per week,will no longer be exempt and must be paid overtime if the employer does not take action.

The new rule change also allows employers to use nondiscretionary bonuses and incentivepayments (including commissions) to satisfy up to 10% of the new salary thresholdamount. These alternative forms of compensation must be paid on at least an annualbasis. Employers will be allowed a catch-up payment within one period of the end of the 52-week pay period to pay up to 10% of the required salary level.

The second rule change increases the amount needed to qualify for the “highly compensatedemployees” (HCEs) exemption. Currently, in order to meet this exemption employees mustreceive at least $100,000 annually. The new rule increases that amount to $107,432 annually.

Employers can use commissions, nondiscretionary bonuses, and other nondiscretionarycompensation towards the full annual amount, but HCEs must receive at least the full standardsalary level amount ($684 per week after January 1, 2020) each pay period on a salary or feebasis without regard to nondiscretionary bonuses and incentive payments. To be an HCE, theemployee must customarily and regularly perform at least one of the duties or responsibilities ofan exempt “white collar” employee.

The rule changes do not affect how the “primary duty” test is applied, which is a key componentin any exemption analysis. Therefore, even if employers raise salaries to the new salary thresholdor HCE amounts, their employees still may not be exempt. An employee’s primary duty is their“principal, main, major, or most important” job that employee performs. 29 C.F.R. §541.700(a). Sorting out whether an employee’s “primary duty” meets the necessary descriptionscan be difficult. The ultimate decision is heavily dependent on the individual facts of everycase. Job titles alone do not determine exempt status.

The primary duties for exempt employees vary slightly between the various categories. Forexample, to qualify as an “executive” the employee must have the primary duty of management;they must customarily and regularly direct the work of two or more full-time employees and havethe authority to hire and fire employees, or make recommendations on hiring and firing that aregiven particular weight. On the other hand, employees exempt as a general administrativeemployee must have the primary duty of performing office or non-manual work that is directlyrelated to the management or general business operations of the employer. Their work mustdirectly relate to assisting with the running or services of the business. There is also an exemption for “academic administrative” employees. These are employees whoeither meet the necessary salary threshold or receive compensation on a salary basis that is atleast equal to the entrance salary for teachers at the school in which they work. The primary dutyof these employees must be related to the academic functions of the school, rather than generalbusiness operations. The practical effect of these changes is that an employee who is making between $455 per weekand $684 per week will become eligible for overtime pay on January 1, 2020, unless their salaryis increased. However, while raising the salary will be necessary, it will not by itself ensure thatan employee is exempt. Employers must also consider what the primary duties of thoseemployees are and whether they are paid on a salary basis, all of which are dependent on avariety of individual factors. Employers who have not done an audit of their wages, their jobdescriptions and employees’ duties should do so now and make any necessary adjustments tohelp ensure compliance with the FLSA as of January 1, 2020.

Case Note: Diercks v. City of Bettendorf, 929 N.W.2d 273 (Iowa Ct. App. 2019) (Unpublished

Decision)The Iowa Court of Appeal recently ruled in July on a case related to public records that isnoteworthy. A summary of the case is below: The City of Bettendorf contracted with Iowa Communities Assurance Pool (ICAP) withrespect to the defense of a tort claimed against the City, pursuant to which arrangement ICAPhired Michael Walker of Hopkins & Huebner, P.C., to defend the City in lawsuits regarding itssewer system. Dierks submitted a public records request under Iowa Code Chapter 22 to theCity for “All itemized fee statements submitted from Attorney Michael C. Walker and/orHopkins & Huebner, P.C. to the [ICAP] or the City of Bettendorf, Iowa for legal servicesrendered to the City from August 14, 2013 through January 27, 2017.”

In response to the request, the City produced some redacted documents and wholly withheldsome documents based on confidentiality under Iowa Code Sections 22.7(11) and 22.7(4),which exempt from disclosure records related to attorney work product and certain personnelrecords. Dierks filed suit based on City’s refusal to produce all records requested under IowaCode Chapter 22. The City responded by stating any records submitted to ICAP were not “ofor belonging to” the City and therefore were not public records, and even if they were publicrecords, they were excepted from disclosure under Iowa Code Sections 22.7(4) or 22.7(6) oras attorney-client privileged communications. The District Court agreed with the City that therecords were not “of or belonging to” the City. The case was then appealed to the Iowa Court of Appeals with the issue before the Courtbeing: Are billing records created by a third-party related to payment for a City’s legal defensepublic records? The Court of Appeals reversed the District Court ruling and held affirmatively that billing recordscreated by a third-party related to payment for a City’s legal defense were public records. The Court of Appeals ruled that while the billing records held by ICAP were not “of orbelonging to” the City, ICAP was performing a governmental function on behalf of the City ofBettendorf by providing liability defense representation, and therefore, the City contracted withICAP to perform a governmental function. As such, in its role performing this governmentalfunction, the Court determined that ICAP’s records related to that representation were publicrecords pursuant to Iowa Code Section 22.2(2). Importantly, Iowa Code Section 22.2(2)applies where a government body is “contracting with a nongovernment body to perform any ofits duties or functions.” The further question yet to be answered is whether this case stands forthe proposition that when a nongovernment body performs a governmental function on behalf ofa governmental body, that makes the nongovernment body a governmental subdivision subject toIowa Code Chapter 11 and audit by the state. Noteworthy, the Court of Appeals made no ruling the City’s claims relating to exemptions andprivilege and remanded the case to the District Court for further review. The Additionally, andalso noteworthy, is the fact that the Court of Appeals case is an unpublished decision meaningthe case is of limited precedential value for future cases. This case is still relevant, however, andshould be something all public entities are at least aware of as its future implications on publicentities is still unknown.

The purpose of this column is to ide ntify issue s. I t doe s not purport to be e xhaustive or to re nde r le gal advice . You should

consult with qualifie d counse l or othe r profe ssionals in de ve loping re sponse s to spe cific situations.

Jose McFarlandhttps://www.su-group.com/

P: (800) 558-9910 | C: (414) 313-1930

Christina Kuhnkuhn.cristina@dorsey.com

(515) 699-3273Dorsey & Whitney Website

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Future DatesTo Remember

December 12, 2019 - FallRegional Best PracticeWebinar 9:00 a.m.

January 29, 2020 - NewMember Budget Training,Ames

February 6, 2020 - WinterRegional Certified BudgetWebinar

March 25-26 2020– AnnualMeeting & Trade Show,Scheman Center, Ames, IA

June 19, 2020 - BuildingSecretaries Conference -Ames, Iowa

June 19, 2020 - Boot Camp -Ames, IA

October 2-5, 2020 – ASBOIntl – Nashville

October 27-28, 2020 – FallConference, MeadowsConference Center, Altoona,IA

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