To alleviate concerns about the implementation date for the predefined special cost centers being overly burdensome, the Ohio Auditor of State (AOS) and Department of Education and Workforce (DEW) are extending the required implementation date for schools to use the new “9XXX” Special Cost Centers (SCC) to account for restricted components of Foundation formula in the General Fund from July 1, 2025 (FY26) to July 1, 2026 (FY 27).
All other USAS Manual changes will be effective as originally proposed. For reference, see slides 10–32 in the USAS presentation. Additional details will be shared in mid-May.
The approach of using “9XXX” SCCs as the desired mechanism to track restricted components of Foundation funding will remain; it is the timing of the implementation that will change.
In addition, over the next year, AOS and DEW will provide guidance and education to districts, including career centers, on how to manage accumulating balances in the “9” SCCs to prevent these cash accounts from accumulating large deficits. As described in the trainings, SCCs are rolled together for purposes of evaluating compliance with Ohio Rev. Code §5705.10, deficit fund balances. Consequently, auditors evaluate compliance at the overall Fund level. Therefore, incurring a deficit balance within a “9XXX” SCC alone should not result in a noncompliance citation.
To accommodate these changes, AOS will publish the revised USAS Manual closer to mid-May. Questions can be directed to USAS Manual Support at usasmanualsupport@ohioauditor.gov.