Consolidation of Administrative Funds, Part V

This is the fifth part of a web page that provides guidance for local educational agencies (LEAs) about consolidating administrative funds for eligible federal grant programs awarded under the No Child Left Behind Act of 2001 (NCLB). The authorizing statute is the Elementary and Secondary Education Act of 1965 (ESEA), Title IX, Part B, Sec. 9201 and Sec. 9203.

Please note that all of the examples on this page are provided by TEA for informational purposes only. You should not interpret the items or amounts as anything other than sample data.

This part of the web page provides Steps 5–8 in TEA’s step-by-step guidance about how to allocate expenditures from an administrative cost pool. Steps 1–5 are given in the fourth part of this web page.

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 district’s administrative cost pool. The following table shows the entry for a $1,000 expenditure.

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Consolidated Administration Appropriation282-11-6399-00-XXX-6-XX-X-CA$1,000 
Consolidated Administration Fund Balance282-00-3450 $1,000

 

This allows the district to see a balance of the administrative cost pool 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).

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Consolidated Administration Appropriation282-11-6399-00-XXX-6-XX-X-CA $420,000
Consolidated Administration Fund Balance 3450282-00-3450$420,000 

 

 Step 6: Drawing Down Funds

The business manager draws down the $1,000 expenditure in TEA’s ER system by using the district’s proportionality table to calculate the amounts to draw down from each funding source.

Marshalsea ISD General Ledger
Drawdown of $1000
Funding SourceFund CodeAmountProportion
Title I, Part A—Improving Basic Programs211$641.3064.13%
Title I, Part C—Migrant Education212$296.9029.69%
Title II, Part A—Teaching Effectiveness255$38.003.80%
Title III, Part A—LEP263$23.802.38%
 Total$1,000 

Step 7: Reducing the Encumbered Funds

The last step for the business manager is to enter the expenditure amount from each encumbered amount under each funding source (using fund codes 211, 212, 255, and 263). This reduces each encumbered amount by the amount of the expenditure.

The amount for each entry is the same as the amount drawn down from each funding source through the ER system.

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Reserve for Encumbrances211-00-4310$641.30 
Encumbrance Title I, Part A (supplies) (9%)211-11-6399-00-XXX-6-XX-X-CA $641.30
Reserve for Encumbrances212-00-4310$296.90 
Encumbrance Title I, Part C (supplies) (6%)212-11-6399-00-XXX-6-XX-X-CA $296.90
Reserve for Encumbrances255-00-4310$38.00 
Encumbrance Title II, Part A (supplies (5%)255-11-6399-00-XXX-6-XX-X-CA $38.00
Reserve for Encumbrances263-00-4310$23.80 
Encumbrance Title III, Part A (supplies) (2%)263-11-6399-00-XXX-6-XX-X-CA $23.80


Step 8: Reversing the Balance (End of Grant Period)

At the end of the grant period, the business manager reverses the balance of the encumbered amounts in the administrative cost pool to cancel any unspent amounts. In the example below, fund 211 has $1,600 left unspent, fund 212 has $340 left unspent, fund 255 has $30 left unspent, and fund 263 has $30 left unspent.

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Reserve for Encumbrances211-00-4310$1,600 
Encumbrance Title I, Part A (payroll and benefits)211-11-6119-00-XXX-6-XX-X-CA $0
Encumbrance Title I, Part A (supplies)211-11-6399-00-XXX-6-XX-X-CA $800
Encumbrance Title I, Part A (other operating expenses)211-11-6499-00-XXX-6-XX-X-CA $800
Reserve for Encumbrances212-00-4310$340 
Encumbrance Title I, Part C (payroll and benefits)212-11-6119-00-XXX-6-XX-X-CA $0
Encumbrance Title I, Part C (supplies)212-11-6399-00-XXX-6-XX-X-CA $170
Encumbrance Title I, Part C (other operating expenses)212-11-6499-00-XXX-6-XX-X-CA $170
Reserve for Encumbrances255-00-4310$30 
Encumbrance Title II, Part A (payroll and benefits)255-11-6119-00-XXX-6-XX-X-CA $0
Encumbrance Title II, Part A (supplies)255-11-6399-00-XXX-6-XX-X-CA $15
Encumbrance Title II, Part A (other operating expenses)255-11-6499-00-XXX-6-XX-X-CA $15
Reserve for Encumbrances263-00-4310$30 
Encumbrance Title III, Part A (payroll and benefits)263-11-6119-00-XXX-6-XX-X-CA $0
Encumbrance Title III, Part A (supplies)263-11-6399-00-XXX-6-XX-X-CA $15
Encumbrance Title III, Part A (other operating expenses)263-11-6499-00-XXX-6-XX-X-CA $15

End of the Grant Period

If your LEA follows the accounting procedures described above, your business manager should make sure of the following at the end of the grant period:

  • That the remaining balance in all campus 282 accounts is zero, with no expenditures remaining that have not been removed using a journal voucher entry.
  • That any funds left unspent from the administrative cost pool are only reflected in the appropriate accounts for fund 211, 212, 255, and 263 (and not in the amount encumbered from these funds for the administrative cost pool).

Contact Information

For more information about the consolidation of administrative funds, please contact the TEA Help Desk and enter “consolidation of administrative funds” in the subject field.

For more information about the federal flexibility initiative, please contact Terry Reyes in the Office for Grants and Federal Fiscal Compliance at terry.reyes@tea.texas.gov.