The Mechanics and Benefits of Consolidating Funds Under a Schoolwide Program
Leigh Manasevit, Esq. and Mike Bender, Esq. Brustein & Manasevit, PLLC www.bruman.com May 13, 2015
The Mechanics and Benefits of Consolidating Funds Under a Schoolwide - - PowerPoint PPT Presentation
The Mechanics and Benefits of Consolidating Funds Under a Schoolwide Program Leigh Manasevit, Esq. and Mike Bender, Esq. Brustein & Manasevit, PLLC www.bruman.com May 13, 2015 Agenda LEA Level Consolidated Admin Basics of a
Leigh Manasevit, Esq. and Mike Bender, Esq. Brustein & Manasevit, PLLC www.bruman.com May 13, 2015
– Requirements to Operate Schoolwide Program – Schoolwide Plans
– Types of Consolidation – Accounting Methods
– Allowability – Time and Effort
– Supplement, Not Supplant – Maintenance of Effort
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Program
– An LEA may consolidate administrative funds under the ESEA, but only with approval from SEA. – Up to statutory cap, SEA‐established limitation, or “necessary and reasonable” standard – No additional admin
– Not required to keep separate records, by individual program, to account for administrative costs for programs in consolidation. – Do not need to track time and effort spent on individual covered programs
– Any acceptable use for administration under – Coordination of the consolidated programs with other federal and non‐ federal programs; – Establishment and operation of peer‐review mechanisms under ESEA; – Administration of Title IX (Consolidated planning, administration, waivers); – Dissemination of information regarding model programs and practices; – Technical assistance under any ESEA program; – District‐level activities designed to implement Title IX; – Training personnel engaged in audit and other monitoring activities; and – Implementation of CAROI.
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– School Eligibility
certain subjects.
– Student Eligibility
“failing, or most at risk of failing, to meet the state’s challenging student academic achievement standards.”
select students.
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– School Eligibility
– Waiver available
– Student Eligibility
program of a Title I school
– Consolidation of funds
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– Importance of a compliant plan cannot be
– Use the needs assessment and develop in consultation with LEA, school support team, parents, teachers, principals, and administrators. – Must be available to LEA, parents and public – TEA Characteristic (Campus Improvement Plan)
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program components;
– Statute does not say how often plan must be revised. – But must review annually and revise as necessary.
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programs are included if there is a consolidation.
whether:
– The plan’s activities meet the intent and purposes of the consolidated federal programs; – The school is implementing the activities detailed in the plan
regard to whether they actually support particular fund source as long as the expenditures support the schoolwide plan.
– Use of funds also affected by level of consolidation
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– Is your campus implementing the schoolwide program as it was intended? – Did you campus improve student achievement in meeting the state’s academic standards to the desired level, particularly for those students who had been furthest from achieving the standards?
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– Empirical data (test scores); and – Qualitative data (personal interviews, observations).
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assessments
proficiency receive effective and timely additional assistance
programs
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consolidated
– Least amount of flexibility – EDGAR applies
– Moderate amount of flexibility – EDGAR applies
– Most amount of flexibility – Loss of federal identity but state/local rules still apply
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– Not required to combine funds in a single account or “pool” with its
– Used figuratively to convey the idea that a schoolwide program has the use of all consolidated funds to support schoolwide program
– LEAs are allowed to use fund code 282 to identify schoolwide program expenditures
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– Formula Grants: Can consolidate funds from nearly every noncompetitive, formula grant.
Training and Recruiting HQTs and Principals (Title II, Part A); English Language Acquisition (Title III, Part A); Safe and Drug‐Free Schools (Title IV, Part A); Perkins; and the IDEA
– Discretionary Grants: Can consolidate funds it receives from discretionary grants
funds were awarded
– Must be named in schoolwide plan!
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– Cannot consolidate. – Authority to consolidate extends only to funds administered by ED.
– Can consolidate state and local funds except for special allotments – CAUTION – STATE RULES MAY RESTRICT
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– School must consult with parents of migratory children or
– Meet the identified needs of migratory children to participate effectively in school. – Must document that services to address those needs has been provided.
– Can only use these funds to support schoolwide program if parent committee established under program approves
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– Programmatic Responsibilities
apply, including the provision of FAPE.
track IDEA dollar to IDEA service.
– Restrictions on Consolidation
multiplied by per‐disabled‐child amount of Part B funds received by LEA
– Any non‐consolidated funds can be spent to ensure that programmatic requirements are met and all children with disabilities are served. – But must track those separately.
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– TEA Accounting Code 282
without regard to whether they actually support the particular fund source.
– As long as expenditures support the schoolwide plan. – Depends on level of consolidation.
been expended.
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– If Title I contributed 16%, then 16% of SWP expenses charged to Title I
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Programs Contributing Funds to the Consolidated Schoolwide Pool
School Title I ‐ A Title II‐A 21st CCLC IDEA‐ B State and Local Funds Total for Each Building Lincoln $200,000 $50,000 $20,000 $100,000 $1,000,000 $1,370,000 Washington 300,000 25,000 35,000 75,000 1,250,000 1,685,000 Jefferson 325,000 70,000 22,500 90,000 1,400,000 1,907,500 Total Funds LEA Distributes to Individual Schools 825,000 145,000 77,500 265,000 3,650,000 4,962,500 Percent of Total 16.6% 2.9% 1.6% 5.3% 73.6% 100%
– Lincoln spends $2,000 to send teachers to a PD conference. – LEA charges each grant’s share of the expenditure using proportionality.
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specific program REGARDLESS of what services those funds support
– 1) proportion of revenues or 2) sequence charging
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Brustein & Manasevit, PLLC 35 Adams Middle School Source of Funds Revenues Percent of Total Expenditures Total $1,000,000 100.0% $950,000 State and Local Funds (included in schoolwide program) 700,000 70.0% 665,000 Federal Programs (included in schoolwide program) Title I, Part A 200,000 20.0% 190,000 Title II, Part A ‐‐ Improving Teacher Quality 50,000 5.0% 47,500 IDEA Part B (Special Education) * 50,000 5.0% 47,500
Example ‐ Adams Middle School spends $1,000 on 5 replacement computers for a computer lab. LEA charges each grant’s share of the expenditure using proportionality.
school’s schoolwide expenditures to state and local sources first, then Title I, Part A, then other federal programs until each is expended fully or until the maximum carryover amount is all that remains.
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Brustein & Manasevit, PLLC 37 Adams Middle School Source of Funds Revenues Total Expenditures ($950,000) Charged to Federal, State, and Local Programs Amount Remaining Total Included in Schoolwide Consolidated Pool $1,000,000 State and Local Sources 700,000 $700,000 Title I, Part A 200,000 200,000 Title II, Part A ‐‐ Improving Teacher Quality 50,000 50,000 IDEA Part B (Special Education) * 50,000 $50,000
Proportional Basis (or “any other reasonable method”)
– Carryover – Amount unused non‐federal funding – MOE – Comparability – Reporting expenditures back to State or USDE – State Per Pupil Expenditure (SPPE)
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All Types of Consolidation
requirements
programs AND ensure that the needs of the intended beneficiaries of these programs are addressed
– One purpose of Title II, Part A is to increase the number of HQTs, principals and assistant principals – Can spend consolidated funds on recruitment initiatives to increase the number of HQTs if plan allows for it.
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All Types of Consolidation
including:
– Annual review by district; – Potential identification for school improvement and appropriate corrective action; and – Accountability provisions required by ESEA waiver.
health, safety, civil rights, student and parental participation and involvement, services to private school children, and various programmatic fiscal requirements
– But consolidation may change some of those fiscal requirements!
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All Types of Consolidation
the discretionary grant.
application
so.
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– Can combine TIF funding into its schoolwide program and plan – If a school states in its application that it will use TIF funds to provide performance‐based compensation, it has to do that. – However, can use any consolidated funds to do so.
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– Federal funds lose their identity – Not required to be spent in accordance with specific program requirements or cross‐cutting federal requirements (EDGAR)
– Funds lose program‐specific identity but not federal identity. – Consolidated federal funds must be used to address the specific “educational needs” of the school identified in needs assessment and comprehensive plan – EDGAR still applies
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– Runs an after‐school program which meets the intents and purpose of the 21st CCLC program. – To promote program, school uses consolidated funds to order jackets with the school’s name to provide as promotional item. – EDGAR’s cost principles state that promotional items are unallowable – Allowable or Unallowable?
identity so cost principles do not apply.
program identity but not their federal identity.
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landscaping, and custodial services.
– Full Consolidation – Allowable, because it is impossible to attribute specific activities to consolidated federal funds – Federal Only – Unallowable, because consolidated funds must be used to address educational needs identified in needs assessment and articulated in plan.
– School must receive all the state and local funds it would otherwise need to operate in the absence of Federal funds
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– Flexibility: Not required to maintain separate fiscal accounting records by program that identify the specific activities supported by the program funds. – But: Must maintain records that demonstrate the schoolwide program, as a whole, addresses the intent and purposes of each consolidated federal education program
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– An LEA allocates $25,000 in Title II, Part A funds to a school operating a schoolwide program with full consolidation.
from Title II, Part A program
the cost was included in the plan.
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– Flexibility: Records do not need to identify that funds came from a specific program – But: Must show
needs of the school as articulated in plan.
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– Must show the amount of funds from each federal education program for each grant that the LEA allocated to a schoolwide program
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– FLEXIBILITY: No Time and Effort!!!!!
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– Time and Effort still required – If employee is solely working on schoolwide program, then can complete semi‐annual certification – If the employee is also working on a state program or a unconsolidated federal program, then PAR.
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– Again, because federal funds lose their federal identity in a consolidated pool, federal procurement requirements do not apply if using consolidated funds. – Must follow state and local rules. – Example:
without including “or equal.”
– EDGAR rules still apply because no loss of federal identity.
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– School is generally expected to follow state and local rules rather than federal rules for property purchased with consolidated funds. – Example: A school purchases $6,000 piece of equipment with consolidated funds, it is not required to keep property records required by EDGAR. – Must still keep records identifying property as schoolwide property and documentation that the equipment was purchased with consolidated funds.
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would normally be paid for with state or local money.
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– Not required to demonstrate that any particular service is supplementary to the services. – Auditors will not look to whether Title I funding or consolidated funds were used to buy an additional service or benefit.
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– Federal funds must be used to supplement the total amount of funds that would, in the absence of federal funds, be made available from non‐federal funds. – LEA must demonstrate, through its regular procedures for distributing funds, that it distributes state and local funds fairly and equitably to all its schools
– School must receive all the state and local funds it would otherwise need to operate in the absence of Federal funds
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with state and local funds in Title I schools are comparable to those provided in non‐Title I schools.
fully consolidated schoolwide program
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total funds available in a schoolwide program school.
The LEA would assume that the same percentage of instructional staff was paid with federal funds and delete those staff from its comparability determination.
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Title I Roosevelt High 808 100 40% 60 13.4 Non‐Title I Lincoln High 647 49 0% 49 13.2
funding remains relatively constant from year to year.
expenditures of federal funds in a schoolwide program in proportion to the amount of federal funds provided to the schoolwide program
where federal programs contribute 25% of the funds in a schoolwide program.
– LEA would consider 25% of the funds expended in the schoolwide program to be federal funds that must be excluded from MOE calculation.
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carryover unspent funds, up to any limitation.
when calculating carryover cap.
that program in a given year.
– For example, an LEA allocates $500,000 in Title I, Part A funds to a school that operates a schoolwide program. – These Title I, Part A funds are consolidated with $50,000 in Title II, Part A funds. – The $50,000 in Title II, Part A funds are not used in calculating the 15% carryover on Title I, Part A funds.
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regardless of whether used in schoolwide or targeted assistance schools, would be included in cap.
– Allocates $500,000 to a targeted assistance school – And $500,000 to a consolidated schoolwide program. – The entire $1,000,000 is used in calculating the cap.
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based on the accounting method used by the LEA.
– First two approved options rely on an allocation method to attribute a portion of each school‐level expenditure back to each contributing program.
end of the 15 months.
– Under the third option, LEA uses a method that charges one funding source until its funds are fully expended, or until only the max carryover amount is left, then moves onto the next.
I, Part A when only the max carryover amount remains.
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distinguish Title I dollars from other combined funding sources.
school improvement is using 10% of its Title I funds for professional development? Or parental involvement?
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show that it spent 10% of Title I allocation on professional development.
meet all the programmatic requirements specified in law, not simply the “intents and purposes” of parental involvement activities.
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