State Allotment Programs

The supplemental state program allotments expenditures should be attributed to programs and services to the eligible identified students and/or appropriate strategies. The programs are structured on an annual basis, and the Foundation School Program (FSP) allotments are paid annually. Therefore, the focus of compliance testing by the Local Education Agency's (LEA)'s external auditor during the annual financial audit for the FSP supplemental state allotment program should be for that one-year time period.  The required percentages of direct program expenditures made annually per program are listed below.

If a school purchases an item with state program allotment funds, then it must not be used for any other purposes. If the item is used for other purposes, then they must split fund the item based on a systematic method, i.e., time of use or they may reimburse the program for usage of the item.

State Program Allotment Program Intent Code (PIC) Texas Education Code Direct Program Expenditures Required Annually

Bilingual Education Allotment (Reported on Exhibit J-4 of Annual Financial Audit)

25 48.105 55%
Career and Technology Education 22 48.106 55%

Compensatory Education (Reported on Exhibit J-4 of Annual Financial Audit)

24, 26, 28, 29, 30 48.104 55%
College, Career, or Military Readiness Outcomes Bonus 38 48.110 55%
Dyslexia 37, 43 48.103 100%
Early Education 36 48.108 100%
Gifted & Talented 21 48.109 100%
Special Education 23, 33 48.102 55%


J-4 Schedule, Use of Funds Report for Select State Allotment Programs

The J-4 is required to be included in the annual financial audit report for Charter Schools and ISDs in compliance with Texas Education Code, §48.104 and §48.105.

  • Schedule J-4, Use of Funds Report for Select State Allotment Programs (PDF, 106 KB)
  • Only unallocated amounts coded to general fund 199 (or fund 420 for charter schools) should be included on the J-4 schedule.
  • ESSER Funds 266, 281, 282, and 283 should not be included on the J-4 schedule.
  • For the J-4 Schedule allotment amounts in the FY 2023 AFR, use the Summary of Finance (SOF) run ID 41495, which is not available on the SOF report website. To access this SOF run, click on the link below or on the State Funding webpage under the District & Charter Planning Tools section.
    • 2022 - 2023 SOF run ID 41495
    • On the spreadsheet, you will use the tab named outputs_dpe and the columns noted below.
      • State Compensatory Education – Column CK (SCE_BLOCK_GRANT)
      • Bilingual Education Allotment – Column O (BIL_BLOCK_GRANT)

*** It would also be acceptable to use the latest NF SOF run ID for the LEA found on the SOF report website, if that is more convenient.

Allotment Program - Frequently Asked Questions


State Allotment Monitoring Program

As mentioned above, the focus of compliance testing by the LEA's external auditor for the FSP state allotment program is for a one-year time period; however, TEA uses a rolling three-year average1 of the LEA's allocations and expenditures to determine compliance with spending requirements for each allotment program. TEA uses allocated amounts in these calculations. Specific Near-Final (NF) Summary of Finance (SOF) runs are used to monitor the required spending percentage for each state allotment program.  Additional flexibility will be provided as the general fund 199 (or fund 420 for charter schools) will be combined with ESSER fund codes 266, 281, 282, and 283 for testing compliance with state allotment spending.  TEA will notify LEAs who have been identified with underutilized supplemental state allotment program funds. Based on the level of underutilization, the TEA may ask the LEA to make up the difference in the following year, require corrective action plans, and/or conduct further monitoring review activities to seek LEA statutory compliance.

1. Financial Accountability System Resource Guide Module 1, Financial Accounting and Reporting Appendices, Appendix A, page 222; and Texas Education Code (TEC), §48.104 and §48.105. 

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