List of acronyms



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Schoolwide Programs school must use Title I funds only to supplement the amount of funds that would, in the absence of the Title I funds, be made available from non-Federal sources for that school, including funds needed to provide services that are required by law for children with disabilities and children with limited English proficiency. Unlike a targeted assistance program, a schoolwide program school is not required to select and provide supplemental services to specific children identified as in need of services. [Section 1114(a)(2)]


Examples of supplement/supplanting scenarios and questions: An LEA used Title I funds to provide services that the LEA was required to make available under Federal, State, or local law.

  • May an LEA move an Instructional Facilitator salary from local to Title I? No, an LEA paid for an instructional facilitator in a Title I school in the previous year from State and local resources but decides to use Title I funds to pay for that position in the current year. This would be a presumption of supplanting because the LEA is replacing State and local resources with Title I resources to pay for the same position.




  • May an LEA use Title I funds to pay for extended-day kindergarten costs for Title I eligible students, while parent contributions pay for non-Title I students? Yes, Title I funds could be used to pay for extended-day kindergarten for Title I-eligible students while parents of non-Title I students pay to participate in the same program, provided that the program the non-Title I students are paying for is the same program that is being provided to Title I students with Title I funds at no cost to the Title I students. This assumes that there are no State or local legal prohibitions to charging parents tuition or a fee for education provided by a public school


Targeted Assistance ESEA, Title I, Part A Section 1115  

Targeted Assistance schools are schools selected to receive funds that are ineligible for a schoolwide program or that choose not to operate such a schoolwide program. Title I funds may not be used to provide services that are otherwise required by law to be made available to children in a targeted assistance school. Title I funds may be used to coordinate or supplement such services.
The goal of a targeted assistance school is to improve teaching and learning to enable Title I participants to meet the state’s challenging academic standards that all children are expected to master. The district serving such schools may use funds received under this part only for programs that provide services to eligible children identified as having the greatest need for special assistance. Each school conducting a targeted assistance program must identify the lowest-achieving children for participation in the Title I program.
Example of supplement/supplanting scenario:

  • An LEA has hired a Director of Literacy as a K-12 administrative position. All the Title I schools in the LEA are K-5 targeted assistance schools. Thirty percent of the students in the LEA receive Title I services. May Title I pay for 30 percent of the Literacy Director’s salary? No. This is a K-12 position and this employee is responsible for literacy services for all children in the LEA, not just at-risk children in Title I schools. No supplemental services are being provided by the Literacy Director to Title I students. In other words, Title I students are receiving the same services that non-Title I students are receiving, and nothing more. This would be supplanting. In looking at this situation, it is also helpful to ask what the LEA would do in the absence of Title I funds. Since 70 percent of the students are non-Title I students, it is likely the Literacy Director1. Definition. Under the Federal “supplement, not supplant” requirement, sub-grantees may use Federal funds only to supplement and, to the extent practical, increase the level of funds that would, in the absence of the Federal funds, be made available from non-Federal sources for the education of participating students. In no case may sub-grantees use Federal program funds to supplant (take place of) funds from non-Federal sources.


State or local professional development requirement: Beginning in 2015-2016 school year, districts are required to provide teachers with 190 contracts with at least 36 hours of professional development. This leaves four contract days that were previously used for required professional development. Districts will need to designate the how those four days are to be used in order to determine the potential use of federal funds to support activities during those days.


  • The information below came from the US Dept. of Ed., Office of Elementary and Secondary Education, Office of State Support in response to the question submitted from the Arkansas Federal Programs Title I Office.

    • Question submitted: “Can federal funds be used to pay for district (LEA) required professional development?  In previous years, Arkansas law required districts to give teachers a 190 day contract.  Ten days of that, or 60 hours, were mandated to receive professional development.  We have allowed districts in the past to pay for PD above those 60 hours.  Now, Arkansas law has changed and only requires 36 hours of PD.  Teachers still have a 190 day contract, but now only 6 of those previous 10 days are required by law for PD.  Districts are now looking for activities for teachers for the remaining 4 days.  The question has already come to this office: Can federal funds be used to pay for PD activities during those 4 days if the district mandates it?”




      • Response received: “Generally, States and LEAs may not use federal funds to pay for professional development that is required by either the State or district, assuming the federal funding stream in question has a “supplement, not supplant” provision. Generally, the ESEA “supplement, not supplant” provisions covers both State and local requirements/funds. In certain instances, an SEA or LEA may be able to overcome the presumption that supplanting will result if Federal funds are used for a State- or LEA-mandated program or activity. In order to make such a case, the SEA or LEA should have available written documentation (e.g., budget information, planning documents, or other materials) demonstrating that it would not be able to meet State or local mandates without the use of the Federal funds. An agency must be able to reasonably document that the activities funded under the Federal program are, in fact, supplemental, even though some of them are mandated by the State or the LEA. This is not easy to do, and I would advise that LEAs not try this unless they are sure that their documentation will full satisfy their auditor. 

        • So, generally speaking, if the State requires six days of PD and the LEA requires an additional four days, then Federal funds may not be used until day 11.  If the LEA does not mandate the additional 4 days, Federal funds could kick in on day 7.”

Maintenance of Effort

Maintenance of effort requires local educational agencies to maintain their state and local expenditures at a specified level from one fiscal year to the next.   The maintenance of effort requirement under the Elementary & Secondary Education Act of 1965 specifies that grantees maintain at least 90% of state and local expenditures from the previous fiscal year.


In accordance with Section 9521 of the Elementary & Secondary Education Act of 1965, a local education agency must meet fiscal and maintenance of effort requirements. The Arkansas Department of Education Federal Grants Management Unit calculates maintenance of effort for each district.   
Under Section 9521, MAINTENANCE OF EFFORT:

(a) IN GENERAL — A local educational agency may receive funds under a covered program for any fiscal year only if the state educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the state with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year.

(b) REDUCTION IN CASE OF FAILURE TO MEET —

(1) IN GENERAL — The state educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency).

(2) SPECIAL RULE — No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years.

(c) WAIVER — The Secretary may waive the requirements of this section if the Secretary determines that a waiver would be equitable due to—

(1) exceptional or uncontrollable circumstances, such as a natural disaster; or

(2) a precipitous decline in the financial resources of the local educational agency.


Hold Harmless: refer to the Arkansas Department of Education Federal Programs unit for specifics related to each Federal fund.
Maintenance of Effort - District Reporting Procedures completed by SEA

The second prior year data is pulled from the working spreadsheet for each category that is used to determine MOE for each district.


Download the prior year expenditure data from the ADE State warehouse that was created for the Federal Grants Management unit.
Download the prior year ADA, ADM and enrollment from the data warehouse.

The spreadsheet should have the two prior years of data to start the calculations for Maintenance of Effort.


Calculate the formula on comparability, using the “Aggregate” expenditures and determine 90% of the second prior year to see if the prior year spent at least 90%.  If all districts receive a “True” then no more steps are needed.  But if a false is determined, there are three more steps to calculate.

1st step - 3rd Quarter ADA calculations - the second prior year is divided by the second prior year aggregate to determine the “ADA per pupil expenditure”. The next step in this process is determining the 90% of spending; the second prior year per pupil expenditure is multiplied by 90% to determine how much at least the district should have spent per pupil.  If all districts receive a “True” then no more steps are needed, but if a false is determined, there are two more steps to calculate.

2nd step - 3rd Quarter ADM calculations - the second prior year is divided by the second prior year aggregate to determine the “ADM per pupil expenditure”. The next step in this process is determining the 90% of spending; the second prior year per pupil expenditure is multiplied by 90% to determine how much at least the district should have spent per pupil.  If all districts receive a “True” then no more steps are needed, but if a false is determined, there is one more step to calculate.

3rd step - Enrollment calculations - the second prior year is divided by the second prior year aggregate to determine the “Enrollment per pupil expenditure”. The next step in this process is determining the 90% of spending; the second prior year per pupil expenditure is multiplied by 90% to determine how much at least the district should have spent per pupil.  If all districts receive a “True” then no more steps are needed, but if a false is determined, the district will need to confirm data before waivers are asked for in behalf of the district.
An email is sent to the district to ask district to check for discrepancies. If documentation received from district is confirmed to be accurate, then FGM starts the process of requesting a waiver from the USDOE.
FGM has to request the Annual Statistical Report (ASR) data from Fiscal and Administrative Services on the first year prior data, the second prior year is already available on the ADE website for reports and publications at http://www.arkansased.org/divisions/fiscal-and-administrative-services/publication-and-reports
Once the three spreadsheets are completed that the USDOE requires, 1-LEA expenditure data, 2-LEA Revenue data, 3-Description of circumstance which are all under one file named FEDS REPORT – MOE for LEAs not maintaining effort, which is copied from one year to the next.

Federal Grants Management Unit will request a Commissioners Memo number from the Assistant Commissioner for Fiscal and Administrative Services and post a Commissioners Memo with the MOE data determined for all LEAs.


Calculations are sent to the USDE requesting a waiver for any LEA that would be equitable due to (1) exceptional or uncontrollable circumstances, such as a natural disaster or (2) a precipitous decline in the financial resources of the LEA.  If granted from USDE, the LEA is sent a letter.

If not granted, the calculations sent to USDE would be used to determine the amount that the district did not meet MOE the LEA’s ESEA cover program entitlements are reduced proportionally by the percentage of the lesser percentage of the aggregate expenditure basis in either (1) the prior year allotment balance if available or (2) the current year allocation.

Third year out – fiscal reduction
Comparability for Districts

Section 1120A(c) of Elementary and Secondary Education Act of 1965 states that local educational agencies may receive Title I funds only if state and local funds will be used in schools served under Title I Part A to provide services that, taken as a whole are at least comparable to services in schools that are not receiving funds under Title I Part A.


It is designed to ensure that federal dollars are provided over and above the nonfederal resources that otherwise would provide over and above the nonfederal resources that would otherwise be provided. This component looks at state and local expenditures, not federal. Comparability is designed to look at the use of nonfederal resources in individual schools and ensure that the distribution of resources is equitable. [Section 1120A(c)]
Comparability must be calculated on an annual basis for districts with more than one school per grade level. A Commissioners Memo is posted in regards to Comparability with instructions and required forms to be completed and submitted electronically to ADE on an annual basis:


  • Form 1 – is the general information form and it is checked to determine if the Grade Spans and Number of schools are being counted correctly based on Title I, Non-Title I, Smaller, Larger, Schools with More than 100 Pupils, and Schools with Less than 100 Pupils also Grade Span Grouping using ACSIP Title I Targeted Page. This form is certified by signature of an appointed representative of the LEA reporting.

  • Form 2A and 2B – are used to compare Non-Title I Schools to Title I Schools by Grade Span, Number of Pupils Enrolled in each school, FTE of Staff and Average Number of Pupils per FTE.  (i.e.  All K-5 are compared together, then all 6-8 are compared together, and then all 9-12 are compared together) depending on the structure of that particular LEA.

  • Form 2C – is used if all schools in a particular grade level (K-5, 6-8, 9-12) have more than one school per grade level and all are Title I schools. These schools are compared based on Schools with the highest low-income percent to the Schools with the lowest-income percent.

The district is not required to submit Forms 2a, b or c if any of the following pertains to the district:



  • one campus per grade span grouping

  • buildings were at least twice the size causing an unfair comparison

If a LEA is out of compliance in any of these areas by less than 1% a letter of caution would be sent to the LEA and notified that because this is such a small variation, no changes are required for the current school year and that the LEA needs to be aware of this variation when planning for the next school year.


If a LEA is out of compliance in any of these areas by more than 1% the LEA is contacted and requested to come into compliance and resubmit.
Once the LEA is in compliance they will receive a letter of notification that minimum requirements have been met.
If adjustments are not made and the LEA is out of compliance after December 1, an amount to be withheld or repaid in the amount or percentage by which the district failed to comply according to the Comparability Report.
All reports and letters are kept electronically.

Guidance: http://www.ed.gov/programs/titleiparta/fiscalguid.doc



Property and Asset Management
Definitions and Classifications

Micro-purchase means a purchase of supplies or services using simplified acquisition procedures which are established by the local district, the aggregate amount of which does not exceed the micro-purchase threshold of equal to less than $3,000.


Equipment means an item that is expected to serve its principal purpose for at least one year and is equal to or exceeds $3,000 per unit cost in value or the greater of the capitalization level established by the district for financial statement.
Non-Consumable Supplies mean an item that is defined as a non-consumable supply if it can be expected to serve its principal purpose for at least one year and is less than $3,000 per unit cost in value or the capitalization established by the district for financial statement (e.g., computers, printers, cameras, iPod, cell phones).
Consumable Supplies means an item that is defined as a consumable supply if it cannot be expected to serve its principal purpose for at least one year and is less than $3,000 per unit cost in value (e.g., paper, pencils, and instructional material). With Perkins funds, at the local level, office supplies are not considered allowable purchases, unless associated with a workshop, conference, or a professional development activity, or when necessary for the operation of equipment purchased.
All equipment and non-consumable supplies are inventoried and tagged upon receipt, as well as, recorded as a fixed asset.
Inventory Procedure

Property purchased with federal or Perkins funds must conform to federal guidelines, state law and district procedures and guidelines.


Recipient and the program coordinator receive property or supplies.  When the property is received, it must be inspected to make sure it is in good condition, and it should be compared with the information in the purchase order or invoice. Next, if it has not already been done, the following information must be recorded: description of the property, the source of the property, who holds title, the acquisition date, the cost of the property, percentage of federal or Perkins participation in the cost of the property, the location, the use and condition of the property, and the custodian of the property. A copy of this information is sent to the Business or Finance Manager to be placed in APSCN, if required.  
Next, the item must be tagged, identifying that the item is an asset purchased in whole or in part with federal or Perkins funds.   The tag location and identification must be clearly marked.  All equipment and non-consumable supplies must be tagged and entered into both the recipient’s inventory list and APSCN within 30 days of receipt of the asset.
All recipients must maintain an inventory list for all property purchased with federal or funds. Designated personnel for recipient must possess the inventory list and will be responsible for verifying the accuracy and completeness of the list.
Inventory – Once Every Year

An inventory of all equipment and non-consumable supplies purchased in whole or in part with federal funds including Perkins fund must be conducted on a yearly basis by both recipients and the program coordinator.


Each employee will certify all property listed on their inventory list with any new purchase being added to the list.  Once certified by both parties, the list will be forwarded to the Business or Finance Manager of the district. The Business or Finance Manager and staff will compare the inventory lists with the district inventory list to determine if any discrepancies exist.  If discrepancies are discovered, the district will resolve the issues or recover the property according to district policies.  Property or equipment that equals or exceeds the capitalization per unit cost established by the district must be recorded as a fixed asset in the state accounting system (APSCN).
Lost or Stolen Items

All items that may be lost or stolen must be reported to program coordinator and the Business or Finance Manager. While only potentially stolen property must be reported to the police as stolen, the Business or Finance Manager may files a police report for all stolen and lost items.

A copy of this report will be retained with inventory records, with any resolution or action taken on the recovery of the stolen or lost items. If there is evidence that the item was in fact stolen, the item may be removed from the inventory. If the item is lost, that fact should be noted in the inventory and the item must stay on the inventory for a minimum of 3 years.
If an equipment item has been lost or destroyed by fire, the responsible employee shall write up their account of the lost or destroyed equipment, have that explanation approved by their supervisor and forward the justification to their Assistant Commissioner for approval to request DFA to remove the equipment item from inventory.  If destroyed by fire, a copy of the fire report or a newspaper article on the fire identifying the employee should be attached.
If an equipment item has been stolen, the employee responsible for the item should immediately notify their supervisor, who shall contact the ADE Purchasing Agent/Equipment Control Manager (ECM).  The ECM or supervisor will then contact the enforcement agency with jurisdiction and obtain a copy of the police report of the incident.  A copy of the police report and all other supporting documentation must be forwarded to the employee’s Assistant Commissioner for review and approval.
Assistant Commissioners will forward all documentation for removal of any lost or stolen equipment to the ECM.  The ECM will then prepare a summary list of items to be removed and send it to the ADE Finance Director at month-end.  The ADE Finance Director will then contact DFA within 30 days and request approval to remove any lost or stolen items from inventory.
Disposal Procedure

When it is determined that equipment or a non-consumable supply purchased with federal or Perkins funds is no longer needed for the intent for which it was originally purchased, and the property is in proper working order and can still be used, the district will determine if any another recipient in the program can use the equipment.  If approved the Finance and Business Manager the property will be transferred to the recipient and added to the inventory list.


When it is determined that equipment or a non-consumable supply purchased with federal or Perkins funds is no longer needed for the intent for which it was originally purchased, and the property is in proper working order and can still be used, the district will determine if an ongoing federal programs being administered in the district can utilize the property. If approved by the Business or Finance Manager the procedures set forth above will be used to place the property on the proper inventory list. The original recipient and/or program must keep the property on their inventory, until request is approved or denied.
If the property can no longer be used and is approved as a disposable item, the property may be disposed of or scrapped for parts. Whether the item is to be disposed of or dismantled, the property may be scrapped for parts or disposed of according to district policies. Whether the property is transferred, dismantled for parts, or disposed of, the outcome must be entered in the inventory system and if the property or equipment that equals or exceeds the capitalization per unit cost established by the district must be recorded as a fixed asset in the state accounting system—APSCN.
Disposal of all property must follow the procedures and policy established by the district.

Record Retention District must maintain records and accounts in a manner that ensures a full accounting of all funds received and expended in connection with the grant. These records and accounts must be retained and made available for programmatic or financial audit. It is a federal requirement that all records be retained for a minimum of 3 years from the date on which the final financial report is submitted. However, Arkansas law mandates record retention for five (5) years which over reaches federal law. C.F.R. 200.333.
Compensation - Payroll and Time Distribution C.F.R. 200.430

District employees who spend 100% of their time on administration activities or 100% of their time on one cost objective are required to complete a semi-annual certification. Employees who work on two or more cost objectives (i.e. administration and leadership) are required to complete a monthly time and effort report.  Time and effort reports must reflect after-the-fact distribution of the actual activity of the employee, must account for the total activity for which the employee is compensated, must be prepared at least monthly, and must be signed by the employee and supervisor.  For ease of auditing completed forms should be maintained in a central location.  


Audit Requirements C.F.R 200.500 Subpart F.

Any issues of noncompliance noted in the District’s annual audit must have a written corrective action plan to address the noncompliance.  



Monitoring & Internal Audit C.F.R. Reference 200.500 Subpart F.
Audit Requirements

A non-Federal entity that expends $750,000 or more during the non-Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with provisions of this part.



KG REVISION 2 4.22.15, 4.23.15, 4.27.15, 4.28.15




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