What Business Managers Need to Know About Presented by: Cindy Rhoads, Regional Coordinator Division of Federal Programs PA Department of Education

 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

  Search for February 2008 Fiscal Guidance   Additional topics included in guidance:  Maintenance of Effort  Comparability  Supplement, Not Supplant  Carryover