(1)(a) The annual financial report required pursuant to section 79-528 shall include:
(i) The amount of the poverty allowance used in the certification of state aid pursuant to section 79-1022 for such school fiscal year;
(ii) The amount of federal funds received based on poverty as defined by the federal program providing the funds; and
(iii) The expenditures and sources of funding for each program related to poverty, the method used to allocate money to the program and within the program, and the expenditures and sources of funding for support costs directly attributable to poverty.
(b) The department shall set up accounting codes for the receipts and expenditures required to be reported on the annual financial report pursuant to this subsection.
(2) The department shall determine the poverty allowance expenditures using the reported expenditures on the annual financial report for the most recently available complete data year that would include in the poverty allowance expenditures only those expenditures that are not included in other allowances, that were used to specifically address issues related to the education of students living in poverty, that do not replace expenditures that would have occurred if the students involved in the program did not live in poverty, and that are paid for with noncategorical funds generated by state or local taxes.
(3) If the poverty allowance expenditures do not equal 117.65 percent or more of the poverty allowance for the most recently available complete data year, the department shall calculate a poverty allowance correction. The poverty allowance correction shall equal the poverty allowance minus eighty-five percent of the poverty allowance expenditures.
(4) The department may request additional information from any school district to assist with calculations and determinations pursuant to this section. If the school district does not provide information upon the request of the department pursuant to this section, the school district shall be disqualified from receiving a poverty allowance for the school fiscal year for which aid is being calculated.