What Business Managers Need to Know About

Presented by:Cindy Rhoads, Regional CoordinatorDivision of Federal ProgramsPA Department of Educationcrhoads@state.pa.us

Review key fiscal requirements under Title I and other programs under No Child Left Behind that may result in audit findings.

Review fiscal flexibility available under NCLB for schoolwide programs.

Title I School Budgets Title I Set Asides Equipment Tracking Time & Effort Records Supplement vs. Supplant Consolidating Funds in Schoolwide

Programs

Title I requires LEAs to rank all schools by poverty and serve eligible schools in rank order.

Title I requires LEAs to allocate funds to eligible schools by a per pupil amount (based on # of low income students).

The per pupil amount x the # of low income students = Title I building allocation.

Individual building allocations must be tracked.

Building Allocation

Parent Involvement 1% if allocation > $500,000

School Improvement Minimum 5% up to maximum of 20% of

district allocation for school choice transportation and/or supplemental education services (SES)

10% of building allocation for professional development

District Improvement 10% for professional development School Improvement PD may be used to

offset. Highly Qualified Staff

5% of allocation for teachers not meeting the definition of highly qualified under NCLB

Homeless Funds to provide services to homeless

students in non-Title I schools

Parent Involvement: If not spent on parent/community involvement, funds may be carried over and spent in addition to the 1% set-aside the following year.

School Improvement: School Choice Transportation (SI 1 and above): If

not spent by end of school year, may be returned to general Title I budget.

Supplemental Education Services (SI2 and above): If not spent on first round, reopen process for others. If funds remain, may be returned to general Title I budget.

District Improvement: Must be used for PD. Remaining funds may be carried over to the following year and be spent in addition to the following year’s set aside.

Highly Qualified Staff: Set aside amount may be reduced with waiver from Federal Programs.

Homeless: May be returned to regular Title I program if not used by end of school year.

LEAs must have a process for tracking any equipment purchased with federal funds.

Tracking system must include these data elements: Description of property, Model#, Serial/ID#,

Funding Source, Date Purchased, Unit Cost, Vendor, % of Federal Funds Used for Purchase, Location of Equipment, Condition of Equipment, Date the Location/Condition were last verified, Disposed of/Replacement Date

Must also track “small & attractive” items (those with a per unit cost of $300 - $1499.

If staff are paid in part (pro-rated) from federal funds, time & effort records must be maintained.

If staff are paid 100% from federal funds, semi-annual certification must be on file.

Ensure that only the actual amount of time being spent on appropriate federal grant activities are being charged to the grant. Payroll records must be reconciled monthly to

match time & effort records.

Targeted vs. Schoolwide (>40% low income) Supplement vs. Supplant

Only at level of funds going into SWP Building Not at activity level

Consolidating Funds Federal only (semi-annual certifications for staff required)

Federal and State (no semi-annual certification)

Schoolwide or School Improvement Plan drives the expenditures at the school

Further Fiscal Guidance www.ed.gov

Search for February 2008 Fiscal Guidance http://www.ed.gov/programs/titleiparta/fisca

lguid.doc Additional topics included in guidance:

Maintenance of Effort Comparability Supplement, Not Supplant Carryover

Questions/Answers