Consolidation of Administrative Funds, Part IV

This is the fourth 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 step-by-step guidance about how to allocate expenditures from an administrative cost pool. For reference, the proportionality table below shows how an example district, Marshalsea ISD, calculated the proportion that each funding source contributed to its administrative cost pool. The table also shows the specific fund codes associated with each funding source, as well as fund code 282.

Marshalsea ISD
Proportionality Table
Administrative Cost Pool
2015–2016 School Year
 NCLB Funding Source Amount
to Pool
of Pool
Fund Code
Fund Code
for Pool
ATitle I, Part A—Improving Basic Programs$270,00A ÷ E64.13%211 282
BTitle I, Part C—Migrant Education$125,000B ÷ E29.69%212
CTitle II, Part A—Teaching Effectiveness$16,000C ÷ E3.80%255
DTitle III, Part A—LEP$10,000D ÷ E2.38%263
ETotal$421,000 100%  


Step 1: Encumbering the Amounts Contributed by Each Funding Source

Using the proportionality table, the Marshalsea ISD’s business manager encumbers the amounts contributed by each funding source to the administrative cost pool. Encumbering funds in this way creates a “holding account” for the administrative cost pool, which will be cleared at the end of each grant year. The following table shows the portion of the district’s general ledger that shows the funds consolidated (identified with the usual fund code) at Marshalsea ISD. To simplify the example, the LEA is budgeting each encumbrance into only three object codes.

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Reserve for Encumbrances211-00-4310 $270,000
Encumbrance Title I, Part A (payroll and benefits)211-11-6XXX-00-XXX-6-XX-X-CA$200,000 
Encumbrance Title I, Part A (supplies)211-11-6399-00-XXX-6-XX-X-CA$50,000 
Encumbrance Title I, Part A (other operating expenses)211-11-6499-00-XXX-6-XX-X-CA$20,000 
Reserve for Encumbrances212-00-4310 $125,000
Encumbrance Title I, Part C (payroll and benefits)212-11-6XXX-00-XXX-6-XX-X-CA$100,000 
Encumbrance Title I, Part C (supplies)212-11-6399-00-XXX-6-XX-X-CA$20,000 
Encumbrance Title I, Part C (other operating expenses)212-11-6499-00-XXX-6-XX-X-CA$5,000 
Reserve for Encumbrances255-00-4310 $16,000
Encumbrance Title II, Part A (payroll and benefits)255-11-6XXX-00-XXX-6-XX-X-CA$10,000 
Encumbrance Title II, Part A (supplies)255-11-6399-00-XXX-6-XX-X-CA$4,000 
Encumbrance Title II, Part A (other operating expenses)255-11-6499-00-XXX-6-XX-X-CA$2,000 
Reserve for Encumbrances263-00-4310 $10,000
Encumbrance Title III, Part A (payroll and benefits)263-11-6XXX-00-XXX-6-XX-X-CA$8,000 
Encumbrance Title III, Part A (supplies)263-11-6399-00-XXX-6-XX-X-CA$1,000 
Encumbrance Title III, Part A (other operating expenses)263-11-6499-00-XXX-6-XX-X-CA$1,000 


Step 2: Appropriating Funds Using Fund Code 282

The business manager uses fund code 282 to appropriate funds for the LEA’s entire consolidated administration budget. The appropriation does not reflect actual revenue. Funds are “placed” in fund code 282 just to reflect the consolidation. The example below shows the total appropriation for 6399 accounts only.

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Consolidated Administration Appropriation282-11-6399-00-XXX-6-XX-X-CA $421,000
Consolidated Administration Fund Balance 3450282-00-3450$421,000 


Step 3: Entering the Expenditure in 282 Account

As the LEA spends funds from the administrative cost pool, the business manager enters each expenditure in the 282 account. For the $1,000 expenditure, the entry is as follows:

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Cash282-00-1111 $1,000


Step 4: Moving the Expenditure to the Appropriate Fund

The business manager then 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 (64.13 percent of $1,000 from 211, 29.69 percent from 212, 3.80 percent from 255, and 2.38 percent from 263).

Marshalsea ISD General Ledger
DescriptionAccount NumberDebitCredit
Supplies282-11-6399-00-XXX-6-XX-X-CA $1,000
Cash211-00-1111 $641.30
Supplies, Title I, Part A211-11-6399-00-XXX-6-XX-X-CA$641.30 
Cash212-00-1111 $296.90
Supplies, Title I, Part C212-11-6399-00-XXX-6-XX-X-CA$296.90 
Cash255-00-1111 $38.00
Supplies, Title II, Part A255-11-6399-00-XXX-6-XX-X-CA$38.00 
Cash263-00-1111 $23.80
Supplies, Title III, Part A263-11-6399-00-XXX-6-XX-X-CA$23.80 


The next steps for accounting for an actual expenditure from an administrative cost pool are given in the fifth part of this web page.

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