2. Title I, Part A Schoolwide Programs Webinar #8 James Connolly Terry Reyes Office for Grants and Federal Fiscal Compliance May 13, 2016 1

3. Goals of Webinar Series 1.To review the basic concepts of schoolwide programs. 2.To encourage you to begin planning now for the 2016–2017 school year. 3.To answer specific questions. 4.To share what we’ve learned. 2

4. Agenda I.Key points from previous sessions. II.Accounting for an actual schoolwide program expenditure (steps 5–9). 3

5. I.Key Points from Previous Sessions Condensed list of planning steps: Budget (LEA). Comprehensive needs assessment (campus). Campus improvement plan (campus). Supplemental funds test (LEA). Consolidation option (LEA with campus). o TEA recommends federal only. 4

6. Planning for Schoolwide Programs Schoolwide program budget (campus). o Incorporated into campus improvement plan. Accounting methodology (LEA). o TEA recommends proportionality at the campus level. NCLB Consolidated Federal Grant Application (LEA). o Schedule BS6001 using 8911 Operating Transfer Out code. 5

7. Step-by-Step Planning Full details of step-by-step planning, with multiple examples, available on three web pages, beginning with tea.texas.gov/grants/ schoolwidefundingandaccounting1/. Focus on maintaining required documentation for auditing and monitoring purposes. 6

8. Step-by-Step Accounting Full details of step-by-step accounting procedures for schoolwide program expenditures, with examples of general ledgers, available on three web pages, beginning with tea.texas.gov/grants/ schoolwideaccountingforexpenditures1/. 7

9. Disclaimer Please note that the following examples are provided by TEA for informational purposes only. You should not interpret the items or amounts as anything other than sample data. 8

10. II.Accounting for an Actual Schoolwide Program Expenditure TEA has created procedures that show how an LEA’s business manager can account for an actual expenditure from consolidated funds on a schoolwide campus. The slides that follow use the same example LEA used in the last webinar, and show the general ledger for just one schoolwide campus. The campus is using the federal only consolidation option and is consolidating funds from three federal programs. The examples show an expenditure of $1,000. 9

11. Proportions of Consolidated Funds on the Sample Campus This table shows the campus's consolidated funds and the proportions contributed to the schoolwide pool by funding source. The table also shows the usual fund codes associated with the consolidated programs (from FASRG), as well as fund code 282. 10 Funding Source Amount Contributed to Pool Percent of Total Usual Fund Codes Schoolwide Fund Code Title I, Part A $1,000,00063% 211 282 Title II, Part A $500,00031% 255 Title III, Part A $100,0006% 263 Total$1,600,000100%

12. Summary of Steps 1–4 These are the steps covered in the last webinar (with examples of a general ledger): 1.The business manager encumbers the amounts contributed by each funding source to the schoolwide pool. 2.For the sample campus, the business manager uses fund code 282 to appropriate funds for the campus’s entire consolidated schoolwide budget. 3.As the campus spends funds from the schoolwide pool, the business manager enters each expenditure in the 282 account. 4.The business manager moves the expenditure to the appropriate fund using a journal voucher entry. The amounts moved to each fund are calculated according to the proportionality table. 11

13. Step 5: Using a Journal Voucher Entry to Reduce the Appropriation The business manager uses journal voucher entries to enter expenditures and reduce the amount of the schoolwide pool (fund code 282) on that campus. This table shows the entry for a $1,000 expenditure. 12 DescriptionAccount NumberDebitCredit Schoolwide Program Appropriation 282-11-6399-00-101-6-30$1,000.00 Schoolwide Program Fund Balance 282-00-3600 $1,000.00

14. Available Balance The journal voucher entries allow campus administrators to see a balance of the schoolwide funds that are still available under any object code, as shown in the table below. As a best practice, the business manager should enter the journal voucher entries frequently (weekly or monthly) so that the campus administrators can see an accurate balance. The 6399 account previously had a total of $370,000, which has been reduced by the $1,000 expenditure. 13 DescriptionAccount NumberDebitCredit Schoolwide Program Appropriation282-11-6399-00-101-6-30 $369,000.00 Schoolwide Program Fund Balance 3600282-00-3600$369,000.00

15. Step 6: Drawing Down Funds The business manager draws down the $1,000 expenditure in TEA’s ER system by using the campus’s proportionality table to calculate the amounts to draw down from each funding source. The funds are drawn down from code 8911, as shown below: 14 Funding Source Fund Code Object CodeAmountPercentage Title I, Part A211 8911 $63063% Title II, Part A255$31031% Title III, Part A263$606% Total$1,000100%

16. 8911, Operating Transfers Out Code See Webinar #6 for information about how to budget funds into 8911 using Schedule BS6001 in the NCLB Consolidated Federal Grant Application. More detailed information about using 8911 is available on this web page: tea.texas.gov/grants/ schoolwidefundingandaccounting3/. 15

17. Step 7: Reducing the Encumbered Funds The last step for the business manager is to enter the expenditure under each funding source (using fund codes 211, 255, and 263). This reduces each encumbered amount by the amount of the expenditure. 16

18. Sample General Ledger for Step 7 Note that the amount for each entry is the same as the amount drawn down from each funding source through the ER system. 17 DescriptionAccount NumberDebitCredit Reserve for Encumbrances211-00-4310$630.00 Encumbrance Title I, Part A (supplies) (63%) 211-11-6399-00-101-6-30 $630.00 Reserve for Encumbrances255-00-4310$310.00 Encumbrance Title II, Part A (supplies) (31%) 255-11-6399-00-101-6-30 $310.00 Reserve for Encumbrances263-00-4310$60.00 Encumbrance Title III, Part A (supplies) (6%) 263-11-6399-00-101-6-30 $60.00

19. Step 8: Reversing the Balance At the end of the grant year, the business manager reverses the balance of the encumbered amounts in the schoolwide pool to cancel any unspent amounts. The next slide shows that in our example, Title I, Part A (fund code 211) has $50,000 left unspent; Title II, Part A (fund code 255) has $10,000 left unspent; and Title III, Part A (fund code 263) has $500 left unspent. The unspent amounts are redistributed to the appropriate object codes. 18

20. Sample General Ledger for Step 8 19 DescriptionAccount NumberDebitCredit Reserve for Encumbrances211-00-4310$50,000.00 Encumbrance Title I, Part A (payroll)211-11-6119-00-101-6-30 $30,000.00 Encumbrance Title I, Part A (supplies)211-11-6399-00-101-6-30 $10,000.00 Encumbrance Title I, Part A (other operating expenses)211-11-6499-00-101-6-30 $10,000.00 Reserve for Encumbrances255-00-4310$10,000.00 Encumbrance Title II, Part A (payroll)255-11-6119-00-101-6-30 $4,000.00 Encumbrance Title II, Part A (supplies)255-11-6399-00-101-6-30 $3,000.00 Encumbrance Title II, Part A (other operating expenses)255-11-6499-00-101-6-30 $3,000.00 Reserve for Encumbrances263-00-4310$500.00 Encumbrance Title III, Part A (payroll)263-11-6119-00-101-6-30 $300.00 Encumbrance Title III, Part A (supplies)263-11-6399-00-101-6-30 $100.00 Encumbrance Title III, Part A (other operating expenses)263-11-6499-00-101-6-30 $100.00

21. At the End of the Grant Year If your business manager follows the accounting procedures described in this presentation, he or she should make sure of the following at the end of the grant year: 1.That the remaining balance in all campus 282 accounts is zero, with no expenditures remaining that have not been removed using journal voucher entries. 2.That any funds left unspent from the schoolwide pool are only reflected in the appropriate accounts for fund 211, 255, and 263 (and not in the amount encumbered from these funds for the schoolwide pool). 20

22. Webinar #9 The next (and final) webinar will cover how TEA staff conduct subrecipient monitoring of LEAs that have schoolwide campuses, including LEA and campus responsibilities. Specific items verified by monitors. 21

23. TEA Contact Information Title I, Part A Schoolwide Programs Programmatic issues: Division of Federal and State Education Policy Anita Villarreal, nclb@tea.texas.gov Fiscal issues and TEA federal flexibility initiative: Office for Grants and Federal Fiscal Compliance James Connolly, james.connolly@tea.texas.gov Terry Reyes, terry.reyes@tea.texas.gov 22