Schoolwide Programs: Funding and Accounting Decisions, Part III

This page is the third in a series that provides the basic steps that a local educational agency (LEA) may follow to implement the funding and accounting components of Title I, Part A schoolwide programs on its campuses. This page covers Steps 5 and 6. The first page covers Step 1 and the second page covers Steps 2, 3 and 4. There are links at the bottom of this page to other web pages about schoolwide programs. 

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

Step 5: Accounting Methodology

Once a Title I, Part A schoolwide campus has a clear understanding of how much money is available to its schoolwide pool, your LEA must establish a methodology for allocating expenditures to the funding sources in the schoolwide pool.

Selecting, documenting, and following the appropriate accounting methodology is crucial to complying with applicable accounting principles. For auditing and monitoring purposes, your LEA must be able to describe the established accounting methodology for each Title I, Part A schoolwide campus and demonstrate that your accounting practices follow that methodology.

Guidance from the US Department of Education (USDE) (Word, 995KB, outside source) describes three possible accounting methodologies, but you can also use any reasonable method to demonstrate that the consolidated funds in a Title I, Part A schoolwide program have been expended. TEA's Fiscal Issues Related to Operating a Schoolwide Program web page describes the three methodologies in detail.

TEA highly recommends the accounting methodology based upon proportionality of revenues at the campus level, so all of the examples in Step 5 show an LEA that uses this method. TEA does not recommend the sequencing methodology, which may affect an LEA's compliance with the maintenance of effort requirement for funds awarded under the Individuals with Disabilities Education Act of 2004, Part B (IDEA-B), and may also create problems with calculating carryover.

The examples below are designed to help you understand how to follow the proportionality accounting methodology and document your accounting activities. For Hexam Elementary School, expenditures will be allocated to each funding source according to the same proportions by which each funding source contributed to the total schoolwide pool amount. As shown in a previous example above, the campus is consolidating only its federal funds, and its schoolwide pool has the following amounts of federal funds:

Step 5, Example 1

Hexam Elementary School
Schoolwide Program Consolidated Funds

Funding Source

Amount Contributed to Pool

Title I, Part A

$1,000,000

Title II, Part A

$500,000

Title III, Part A

$100,000

Total

$1,600,000

 

Using the proportionality methodology, the campus will allocate expenditures according to the same proportions by which each funding source contributed to the total schoolwide pool amount. Title I, Part A contributed $1,000,000 to the total of $1,600,000, which is 63 percent of the total, so the LEA must allocate 63 percent of each of the campus's expenditures to Title I, Part A. Title II, Part A contributed $500,000, which is 31 percent of the total, so the LEA must allocate 31 percent of each of the campus's expenditures to Title II, Part A. Title III, Part A contributed $100,000, which is six percent of the total, so the LEA must allocate six percent of each of the campus's expenditures to Title III, Part A.

The following is an example of a schoolwide campus proportionality table, which shows the proportion contributed from each funding source. For each schoolwide campus that uses the proportionality methodology, your LEA must maintain a separate proportionality table that shows the proportion contributed by each funding source on each campus. The proportionality table for each campus must be maintained by the LEA for auditing and monitoring purposes.

Step 5, Example 2

 

Hexam Elementary School
Proportionality Calculation and Percentage

 

Funding Source

Amount Contributed to Pool

Proportion Calculation

Percent of Total

A

Title I, Part A

$1,000,000

A ÷ D

63%

B

Title II, Part A

$500,000

B ÷ D

31%

C

Title III, Part A

$100,000

C ÷ D

6%

D

Total

$1,600,000

 

100%

 

The same proportions must be used to draw down funds using TEA's expenditure reporting (ER) system. More information about how to draw down funds from a schoolwide pool is given on the Schoolwide Programs: Accounting for Expenditures web pages.

Step 6: Committing to Schoolwide Programs

Some of the decisions made by your campus and LEA during the planning for the following school year must be formalized by conveying them to TEA. Your LEA must do this when it submits the NCLB Consolidated Federal Grant Application to TEA.

On Schedule SC5000 of the application, your LEA must identify which campuses will operate schoolwide programs and which will be targeted assistance campuses. For each schoolwide campus, your LEA must also indicate which consolidation option will be used to consolidate funds.

On Schedule BS6001 of the application, your LEA must also identify the total amount that each federal grant program will contribute to the schoolwide pool on all of your schoolwide campuses. These totals should be identified using the 8911, Operating Transfers Out code. Federal grant program funds that will be used to pay direct costs at the district level must be identified using the appropriate object code.

The following table is an example of a portion of Schedule BS6001 for Rokesmith ISD that shows only three federal programs. At least some of the district's schoolwide campuses are consolidating these particular funds. The district adds together all of the Title I, Part A funds that will be consolidated on all of its campuses and enters the total in the 8911 row for Title I, Part A, and does the same for Title II, Part A. The rest of the district's direct costs are entered in the rows for the appropriate object codes. None of the district's schoolwide campuses is consolidating Title I, Part C funds, so no funds are entered in the 8911 row for that funding source.

Step 6, Example 1

 

Rokesmith ISD
NCLB Consolidated Federal Grant Application
Schedule BS6001 (Portion Only)

Class/Object Code and Description

Title I, Part A

Title I, Part C

Title II, Part A

6100

Payroll Costs

$1,000,000

$100,000

$500,000

6200

Professional and Contracted Services

$500,000

$80,000

$250,000

6300

Supplies and Materials

$750,000

$15,000

$375,000

6400

Other Operating Costs

$300,000

$2,500

$150,000

6500

Debt Service

$0

$0

$0

6600

Capital Outlay

$0

$0

$0

8911

Operating Transfers Out

$8,000,000

$0

$4,000,000

Total

$10,550,000

$197,500

$5,275,000

 

Identifying federal funds correctly in Schedule BS6001 ensures that TEA can set up your LEA's grants appropriately in the ER system. This will make funds available under the appropriate object code when your LEA actually draws down federal funds for a campus's expenditures. More information about how to draw down funds from a schoolwide pool is given on the Schoolwide Programs: Accounting for Expenditures web pages.

Any federal grant funds that are consolidated by a Title I, Part A schoolwide campus that are not budgeted through the LEA's NCLB Consolidated Federal Grant Application, or that require a paper application, should still be budgeted in object code 8911 in the applicable budget schedule of the eGrants or paper application.

Once your campus and your LEA have worked together to complete Steps 1 through 6 in making the required funding and accounting decisions regarding how to administer consolidated funds in a Title I, Part A schoolwide program, your LEA must develop a way to account for schoolwide program expenditures in its accounting system. Guidance is available on the web page Schoolwide Programs: Accounting for Expenditures, Part I.

Additional Guidance from TEA

Additional guidance about Title I, Part A schoolwide programs is available at the following web pages:

Choosing a Consolidation Option for Schoolwide Programs
This page contains a chart showing the differences between the three ways you can consolidate funds in schoolwide programs.

Fiscal Issues Related to Operating a Schoolwide Program
This page describes various fiscal issues related to operating a schoolwide program, including accounting methodologies and specific fiscal requirements such as set-asides; supplement, not supplant; and time and effort.

General Information about Schoolwide Programs
This page describes the general purpose, goals, and fundamental principles of Title I, Part A schoolwide programs.

Schoolwide Programs
This is the home page for Title I, Part A schoolwide programs, and provides general information about choosing to implement a schoolwide program, eligibility, and basic requirements.

Schoolwide Programs: Accounting for Expenditures, Part I
This is the first of three web pages that provide information about accounting for schoolwide program expenditures. This page describes fund code 282.

Schoolwide Programs: Accounting for Expenditures, Part II
This is the second of three web pages that provide information about accounting for schoolwide program expenditures. This page provides examples of how to account for an actual schoolwide program expenditure by using fund code 282 in a general ledger.

Schoolwide Programs: Accounting for Expenditures, Part III
This is the third of three web pages that provide information about accounting for schoolwide program expenditures. This page provides examples of how to account for an actual schoolwide program expenditure by using fund code 282 in a general ledger.

Schoolwide Programs: Annual Evaluation Plan
This page provides detailed information about the required annual evaluation plan, including recommended steps to follow.

Schoolwide Programs: Campus Improvement Plan
This page provides detailed information about the required campus improvement plan, including the required accounting and program components.

Schoolwide Programs: Comprehensive Needs Assessment
This page provides detailed information about the required comprehensive needs assessment, including recommended steps to follow.

Schoolwide Programs: Funding and Accounting Decisions, Part I
This is the first in a series of web pages that provide the basic steps to follow to implement the funding and accounting components of a schoolwide program. This page covers documentation requirements and the supplemental funds test.

Schoolwide Programs: Funding and Accounting Decisions, Part II
This is the second in a series of web pages that provide the basic steps to follow to implement the funding and accounting components of a schoolwide program. This page covers allocating funds to a schoolwide program.

Additional Guidance from USDE

 

This page summarizes the information and requirements given by the US Department of Education. The source documents are available at the links below:

Section 1114 of the Elementary and Secondary Education Act (ESEA)  

Designing Schoolwide Programs, Non-Regulatory Guidance, March 2006 (Word, 452 KB, outside source)

Title I, Part A Fiscal Issues, Non-Regulatory Guidance, February, 2008 (Word, 995 KB, outside source)

Federal Register, July 2, 2004 (Volume 69, Number 127)

Contact Information

For more information about Title I, Part A schoolwide programs, please contact Anita Villarreal in the Division of Federal and State Education Policy at nclb@tea.texas.gov.

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