Maintenance of Effort, Comparability, and

Supplement/Supplant

PAFPC April 2011

USDE Title I Fiscal Guidance (May 06)

• www.ed.gov/programs/titleiparta/ fiscalguid.doc

This guidance covers these areas:• Maintenance of Effort (MOE)• Comparability• Supplement not Supplant• Carryover • Grantbacks

Maintenance of Effort

Legal Authority:NCLB: Section 9521

MOE: The NCLB Rule

• LEA may receive funds only if SEA finds the combined fiscal effort per student or the aggregate expenditures of the LEA from state and local funds from preceding year is not less than 90% for second preceding year.

MOE: Preceding Fiscal Year

• Need to compare final financial data– PDE Uses Annual Financial Report (AFR)

• Compare “immediately” PFY to “second” PFY

• EX: To receive FY 2005 funds (available July 2005), compare FY 2004 (2004-05) to FY 2003 (2003-04)

Expenditures Included

• “Expenditures from state and local funds for free public education”

• Administration; instruction; attendance and health services; pupil transportation services; operation and maintenance of plant; fixed charges; and net expenditures to cover deficits for food services and student body activities

Expenditures Excluded

• Funds from federal government• Community services; capital outlay;

debt service; or supplemental expenditures made as a result of a Presidentially declared disaster

MOE: Failure

• ESEA: If LEA fails MOE, SEA must reduce amount of allocation in the exact proportion by which LEA fails to maintain effort below 90%.

• Reduce all applicable NCLB programs, not just Title I

Aggregate expenditures

Amount per student

SY 04 1,000,000 6,100

SY05 – must spend 90%

900,000 5,490

05 –Actual amount

850,000 5,200

Shortfall -50,000 -290

Percent shortfall/ reduction

-5.6% -5.3%**

Years after Failure

• SEA uses 90% of the prior year amount rather than the actual expenditure amount

MOE: Waiver

• USDE Secretary may waive if:– Exceptional or uncontrollable

circumstances such as natural disasterOR– Precipitous decline in financial resources

of the LEA

Comparability

Legal Authority:Title I Statute: §1120A(c)

General Rule- §1120A(c)

• An LEA may receive Title I Part A funds only if it uses state and local funds to provide services in Title I schools that, taken as a whole, are at least comparable to the services provided in non-Title I schools.

• If all are Title I schools, all must be “substantially comparable.”

Timing Issues

• Guidance: Must be annual determination

• YET, LEAs must maintain records that are updated at least “biennially” (1120A(c)(3)(B))

• Review for current year and make adjustments for current year

• Assurances are due November 15.• Egrants changes for 08/09.

Written Assurances

• LEA must file with SEA written assurances that state:

– The LEA is exempt from demonstrating Comparability because it has only 1 building per grade span or;

– The LEA has successfully documented the comparable staff to pupil ratio in the district using the Detailed School Data Sheet.

How to measure in a district with non-Title I buildings

Compare:• Average of all non-

Title I schools• Each Title I

school

Average of all non-title I schools=10:1

Title I schools: Lincoln: 10:1 Washington: 9:1 Madison: 11:1 Jefferson 12:1

TO

How to measure in a district with all Title I

buildingsCompare:• Average of one or more of the lowest

poverty Title I schools to each higher poverty Title I school

• Lincoln 30% poverty, Washington 50%, Madison 55%, Jefferson 60% Chose only Lincoln as the comparison school

• Lincoln 30%, Washington 32%, Madison 55%, Jefferson 60%, chose both Lincoln and Washington as the comparison schools

Basis for evaluation:

• grade-span by grade-span

OR

• school by school (district-wide basis)

Exclusions:

• Federal Funds • Private Funds• Need not include unpredictable

changes in student enrollment or personnel assignments that occur after the start of a school year

Who is “instructional staff”

• Administrators (principals and assistant principals) • Art Teachers • Classroom Teachers • Guidance Counselors• Librarians • Music Teachers• Physical Education Teachers • Project Directors (Non-federally funded) • Psychologists • Social Workers • Speech Therapists

Not included…

• Bus Monitors • Consultants • Crossing Guards • Maintenance Staff • Security Staff • Federally paid Staff

Optional staff…

• Bilingual Teachers • Special Education • Title I “Like” Staff • Teachers Aides (instructional)

• Although the LEA has the discretion to count or not count these types of staff, it must be done consistently across the grade spans being compared.

How to access the Data Sheet and Assurance page

• www.education.state.pa.us and click on the eGrants link at the left of the page.

• Then click on the Division of Federal Programs link at the left of the screen.

• Enter your Login ID and password, then click on the “Consolidated Application” link.

• At the main Consolidated Application page you’ll see the link for Comparability towards the bottom of the screen.

Supplement/Supplant

• Targeted Assisted – program level supplanting. “Reasonable and necessary.” Very situationally dependent

• Schoolwide – fiscal level supplanting only, but must meet “intents and purposes.”

School must receive all the state and local funds it would otherwise need to operate in the absence of Federal funds– Includes routine operating expenses

such as building maintenance and repairs, landscaping and custodial services

Can Title I $ be used for basic operational expenses?

• If only federal combined –– No, must be for educational needs

• If federal and non-federal combined –– No, but impossible to determine which is

federal– Be sure sufficient state and local funds

allocated to school to meet basic operational needs

What is “educational need”?

• Not addressed in guidance– Instruction – yes– Instructional support – probably yes– Administration – possibly yes– Operational – no

Closing Thoughts

• The SWP is VERY important!• Targeted versus SWP which is better?