WPCr FK Ϙ)\3mHD\y+tt 9쎒siY,J~à۩R2@\Z[/VGRY ) Ы,̋iq %ok+psÛ4j"sKprTߢg߹]1~k(O/ @tu4Ж&AKwbtg~`  0HV 0S 0 P 0 M 0 J 0 G 0 D 0 A 0 > 0; 0& 0 0 0 0 0 0 0 0~! 0h" 0R# 0<$ 0&% 0& 0& 0' 0( 0) 0* 0+ 0~, 0Ph- 0- 0V. 0.. B0 B70 BT0 Bq0 D30 D+0 00 0<1 0Y$2 0f}2 022 0*3 0_?4 04 0S5 06 06 067 0}7 0;8 069 0JM9 0J9 0:9 0: 0:U*3< 0]<U2?> 0eq> 0g> 0g=? 0e? 0g @ 0gp@ 0g@ 0g>A 0IA 0,A 0nB 0~BU.D 0<4D 0pD 0~GE 0F 0G 0H 0;I 0I 0tJ 0_J 0^KU,NM CzMM 0O BO DCO+P 0Q BR D/RjS jS S S S  S  T 1U"T 7 wTU,T|T +U IUU,gUnU V VU,=ViV W #W AW _WU,}W~W  'X  GXU,gXlXlX  kY  Y  Y  Y 1gY 7RZl`Z  Z  Z0 [ <[ Z[ x[  [ 1e[ 7\n)\  \  \f\a\ B1\ B+ ] D/5] 1gd] 7]]f_  `  !`  A`  a`f`  `  a  'a  Ga}gafc JfUh`Wh h h  h i 1i Oi mi  i  i ibi Kj ij j j j j jkl 0Nl 0 > B(#Bilingual  E.` hp x (#X(#E84.291  BilingualEducation SystemwideImprovementGrants t  *X(#X(#*84.298  StateGrantsforInnovativePrograms<(#TitleV,PartA Z   X*X(#X(#*84.318  EducationTechnologyStateGrants D(#EdTech  X   X*X(#X(#*84.357  ReadingFirstStateGrants>(#ReadingFirst !   X*X(#X(#*84.365  EnglishLanguageAcquisitionGrantsII:(#TitleIII,PartA d# 84.366  MathematicsandSciencePartnerships!!H(#MSP %b    X(#X(#84.367ImprovingTeacherQualityStateGrants;(#TitleII,PartA &" ?.` hp x (#(#?& B OtherPrograms  n(# *X(#X(#*84.002  AdultEducation StateGrantProgram<(#AdultEducation *l% (#X(#84.027SpecialEducation GrantstoStates(IDEA,PartB)K!K!G(#IDEA'Bn(3Ԉ +' ?.` hp x (#(#?84.173  SpecialEducation PreschoolGrants(IDEAPreschool) x-( (#X(#84.042TRIOStudentSupportServices?(#TRIOCluster  ?.` hp x (#(#?84.044TRIOTalentSearch ^ 84.047TRIOUpwardBound  \ 84.066TRIOEducationalOpportunityCenters   84.217TRIOMcNairPostBaccalaureateAchievement h  6  $  (#X(#$    (# X6  84.048VocationalEducationBasicGrantstoStates[[7(#VocationalEducation6l݌  f Ќ   X(#(#   X*X(#X(#*84.126  RehabilitationServicesVocationalRehabilitationGrants2(#VocationalRehabilitation   toStates   84.181  SpecialEducationGrantsforInfantsandFamilieswithDisabilities?(#IDEA,PartC X    XE.` hp x (#X(#E NoChildLeftBehindAct  V  TheElementaryandSecondaryEducationAct(ESEA)wasamendedJanuary8,2002bythe  NoChildLeftBehind(NCLB)Actof2001(Pub.L.107110).   WaiversandExpandedFlexibility  H UnderTitleIXoftheESEA,States,Indiantribes,LEAs,andschoolsthroughtheirLEAmay F requestwaiversfromEDofmanyofthestatutoryandregulatoryrequirementsofprograms , authorizedinESEA.Inaddition,someStatesmayhavebeengrantedauthoritytograntwaivers  ofFederalrequirementsundertheEducationFlexibilityPartnershipActof1999.Auditors  shouldascertainfromtheauditedStateEducationAgencies(SEAs)andLEAswhethertheSEA  ortheLEAoritsschoolsareoperatingunderanywaivers. t  I.  PROGRAMOBJECTIVES  "r TheESEAof1965,asamendedbytheNCLB,providesforacomprehensiveoverhaulofFederal   supportforeducation,andrestructureshowtheseprogramsprovideservices.ESEAprogramsin ! thisSupplementtowhichthissectionappliesareshownabove.Generallytheserequirements " areapplicableforfiscalyearsbeginningafterJune30,2002. # UndertheNCLB,FederaleducationprogramsauthorizedintheESEAaredesignedtoworkin 0% ! concertwitheachother,ratherthanseparately.Byemphasizingprogramcoordination,planning, &f!" andservicedeliveryamongFederalprogramsandenhancingintegrationwithStateandlocal &L"# instructionalprograms,theESEAreinforcescomprehensiveStateandlocaleducationalreform '2#$ effortsgearedtowardensuringthatallchildrencanmeetchallengingStatestandardsregardless ($% oftheirbackgroundortheschooltheyattend. )$& ProgramobjectivesfornonESEAprogramscoveredbythiscrosscuttingsectionandadditional \+&( informationonprogramobjectivesfortheESEAprogramsaresetforthintheindividual B,') programsectionsofthisSupplement. (-x(*  II.  PROGRAMPROCEDURES    PlansforESEAPrograms  ^ AnSEAmusteitherdevelopandsubmitseparate,programspecificindividualStateplanstoED  \ forapprovalasprovidedinindividualprogramrequirementsoutlinedintheESEAorsubmit,in B accordancewithsection9302oftheESEA,aconsolidatedplantoEDforapproval.  ( Consolidatedplanswillprovideageneraldescriptionoftheactivitiestobecarriedoutwith   ESEAfunds.SubgrantstoLEAsandothereducationalserviceagenciesandamountstobeused   forStateactivitiesareoftensetbylawforESEAprograms.However,SEAshavediscretionin    usingfundsavailableforStateactivities. p   LEAsalsohavethechoiceinmanycasesofsubmittingindividualprogramplansora n  consolidatedplantotheSEAtoreceiveprogramfunds.SEAswithapprovedconsolidatedState T  plansmayrequireLEAstosubmitconsolidatedplans. :   UniqueFeaturesofESEAProgramsThatMayAffecttheConductoftheAudit    Consolidationofadministrativefunds(InadditiontothecompliancerequirementinIII.A.1,see F IV, OtherInformation.) ,| SEAsandLEAs(withSEAapproval)mayconsolidateFederalfundsreceivedforadministration * undermanyESEAprograms,thuseliminatingtheneedtoaccountforthesefundsonaprogram  byprogrambasis.TheamountfromeachapplicableprogramsetasideforStateconsolidation  maynotbemorethanthepercentage,ifany,authorizedforStateadministrationunderthat  program.Theamountsetasideundereachcoveredprogramforlocalconsolidationmaynotbe r morethanthepercentage,ifany,authorizedforlocaladministrationunderthatprogram. X Expendituresusingconsolidatedadministrativefundsmaybechargedtotheprogramsonafirst > in/firstoutmethod,inproportiontothefundsprovidedbyeachprogram,oranotherreasonable $t manner.  Z SchoolwidePrograms(InadditiontothecompliancerequirementinIII.A.2,seeIV, Other  Information.)    EligibleschoolsareabletousetheirTitleI,PartAfunds,incombinationwithotherFederal, L"" State,andlocalfunds,inordertoupgradetheentireeducationalprogramoftheschoolandto 2## raiseacademicachievementforallstudents.Exceptforsomeofthespecificrequirementsofthe $h$ Title1,PartAprogram,fundsthatareusedinaschoolwideprogramarenotsubjecttothe $N % statutoryorregulatoryrequirementsoftheprogramsprovidingthefundsaslongasthe %4!& schoolwideprogrammeetstheintentandpurposeofthoseprograms.TheTitleI,PartA &"' requirementsthatapplytoschoolwideprogramsareidentifiedintheTitleI,PartAprogram '#(  specificsection. (#) $    &   $T,  Transferability(InadditiontothecompliancerequirementinIII.A.3,seeIII.G.3.b, Matching,  LevelofEffort,Earmarking!Earmarking,andIV, OtherInformation)$T,,  g,Ԍ  Ќ  SEAsandLEAs(withsomelimitations)maytransferfundsfromoneormoreapplicable D programstooneormoreotherapplicableprograms,ortoTitleI,PartA.Transferredfundsare *z  subjecttoalloftherequirements,setasides,andlimitationsoftheprogramsintowhichtheyare  ` transferred.  F SmallRuralSchoolsAchievementAlternativeUseofFunds(Inadditiontothecompliance   requirementinIII.A.4,seeIV, OtherInformation)',    EligibleLEAsmay,afternotifyingtheSEA,spendallorpartofthefundstheyreceiveunder 8  fourapplicableprogramsforlocalactivitiesauthorizedunderoneormoreofsevenapplicable n  programs. T   GeneralandProgramSpecificCrossCuttingRequirements    &  Therequirementsinthiscrosscuttingsectioncanbeclassifiedaseithergeneralorprogram ` specific.Generalcrosscuttingrequirementsarethosethatarethesameforallapplicable F programsbutareimplementedonanentitylevel.Theserequirementsneedonlybetestedonce ,| tocoverallapplicablemajorprograms.Thegeneralcrosscuttingrequirementsthattheauditor b onlyneedtestoncetocoverallapplicablemajorprogramsare:III.G.2.1, LevelofEffort H MaintenanceofEffort(SEAs/LEAs);III.L.3, SpecialReporting;and,III.N, SpecialTests . andProvisions(III.N.2, SchoolwidePrograms;andIII.N.3, Comparability).Program  specificcrosscuttingrequirementsarethesameforallapplicableprograms,butare  implementedattheindividualprogramlevel.Thesetypesofrequirementsneedtobetested  separatelyforeachapplicablemajorprogram.ThecompliancerequirementinIII.N.1, v  ParticipationofPrivateSchoolChildren,maybetestedonageneralorprogramspecificbasis.' `1 \ ProgramproceduresfornonESEAprogramscoveredbythiscrosscuttingsectionandadditional  Z informationonprogramproceduresfortheESEAprogramsaresetforthintheindividual @ programsectionsofthisSupplement. &  AvailabilityofOtherProgramInformation  !! TheESEA,asreauthorizedbytheNCLB,isavailablewithahypertextindexontheInternetat 2## 4e O  5  .  http://www.ed.gov/p% f %f8% g oli%g9% h %h:9% i cy/elsec/leg/e%iX9% j %j9% k sea02/index.html.8toE  6k88toE  7ans8.Anumberofdocumentscontainguidance $h$ applicabletothecrosscuttingrequirementsinthisSupplement.Theyinclude: $N %  l (03""  ,E.` hp x (#X(#E  ,B+: :` hp x (#X(#BnXXXXRk;2 3   :   XRXXnXGuidanceontheTransferabilityAuthority(June8,2004) &!' (4oansO  5  .  http://www.ed.go%k9% p %p=% q v/programs/transferability/finalsummary04.doc.h=toE  6=0=toE  7ans^=);k;h<݌ '"( Ќ ' X(#::` X(#'   ""  ,E.` hp x (#X(#E  ,B+: :` hp x (#X(#BrXXXXR?2 3   :   XRXXrXGuidanceontheRuralEducationAchievementProgram(REAP)(June2003) O)$*  (4sansO  5  .  http://www.ed.gov/policy%q=% t %tA% u /elsec/guid/reap03guidance.doc.1AtoE  6@@toE  7ans'A);?@݌ D*%+ Ќ ' X(#::` X(#'   ""  ,E.` hp x (#X(#E  ,B+8 :` hp x (#X(#B&   vXXXXRB2 3   :   XRXXvXStateEducationalAgencyProceduresforAdjustingBasic,Concentration,Targeted,and  EducationFinanceIncentiveGrantAllocationsDeterminedbytheU.S.Departmentof  Education(May23,2003)   (4wansO  5  .  http://www.ed.gov/programs/titleiparta/seaguidanceforadjustingallocatio%uA% x %x5F% y ns.%ySF% z %ztF% { doc.EtoE  6`EtE  7XE);BC݌ q Ќ ' X(#8:` X(#'   ""  ,E.` hp x (#X(#E  ,B+: :` hp x (#X(#B|XXXXRG2 3   :   XRXX|XHowDoesaStateorLocalEducationalAgencyAllocateFundstoCharterSchoolsthat  o AreOpeningfortheFirstTimeorSignificantlyExpandingTheirEnrollment?(Dec.  d 2000)(4}XO  5  .  http://www.ed.gov/policy/elsec/gu%{F% ~ %~J%  id/cschools/cguidedec2000.doc./J  6II  7X%J);andGH݌  J Ќ ' X(#::` X(#'   ""  ,E.` hp x (#X(#E  ,B+: :` hp x (#X(#BXXXXRK2 3   :   XRXXX4XO  5  .  TitleIServicestoEligiblePrivateSchoolChildren(Oct.17,2003).M  6IM]M  7XM    (4XO  5  .  http://www.ed.gov/pro%J%  %MO%  grams/title%kO%  %O%  iparta/psguidance.doc.N  6NN  7XN).' CKL݌    Ќ ' X(#::` X(#'   III.  COMPLIANCEREQUIREMENTS  K   IndevelopingtheauditprocedurestotestcompliancewiththerequirementsforaFederal I  program,theauditorshouldfirstlooktoPart2,MatrixofComplianceRequirements,to /  identifywhichofthe14typesofcompliancerequirementsdescribedinPart3are  applicableandthenlooktoParts3and4forthedetailsoftherequirements.    Further,iftherehasbeenatransferoffundstoaconsolidatedadministrativecostpool Y fromamajorprogram,indevelopingauditprocedurestotestcompliancewithActivities ? AllowedorUnallowedandAllowableCosts/CostPrinciples,theauditorshouldincludethe %u consolidatedadministrativecostpoolintheuniversetobetested.   [ &  A.  ActivitiesAllowedorUnallowed     X1. ` Consolidationofadministrativefunds (SEAs/LEAs) g  X E.` ` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part e A(84.010);MEP(84.011);SDFSCA(excepttheGovernorsProgramauthorized K underSection4114(84.186);CSP(84.282);TitleV,PartA(84.298);EdTech 1 (84.318);ReadingFirst(84.357);TitleIII,PartA(84.365);MSP(84.366);and  TitleII,PartA(84.367).'T    AnSEAmustuseconsolidatedadministrativefundsforauthorizedadministrative ["" activitiesoftheconsolidatingprogramsandmayusesuchfundsfor A## administrativeactivitiesdesignedtoenhancetheeffectiveandcoordinateduseof '$w$ fundsundertheprogramsincludedintheconsolidation,suchascoordinationof  %] % ESEAprogramswithotherFederalandnonFederalprograms;theestablishment %C!& andoperationofpeerreviewmechanisms;thedisseminationofinformation &)"' regardingmodelprogramsandpractices;andtechnicalassistance. '#( IfanLEAconsolidatesadministrativefunds,theLEAmaynotuseanyother m)$* fundsfromtheconsolidatingprogramsforadministration. S*%+ AnSEAorLEAthatconsolidatesadministrativefundsisnotrequiredtokeep ,Q'- separaterecordsofadministrativecostsforeachindividualprogram. ,7(. Expendituresofconsolidatedadministrativefundsareallowableiftheyarefor -)/ administrativecoststhatareallowableunderanyofthecontributingprograms  (Sections9201and9203ofESEA(20USC7821and7823)).   X E.` hp x (#` X(#E2.  ` SchoolwidePrograms (LEAs) D  X E.` ` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part B A(84.010);MEP(84.011);SDFSCA(84.186)(includingtheGovernors  ( ProgramauthorizedunderSection4114);21stCCLC(84.287);Bilingual   (84.288,84.290and84.291);TitleV,PartA(84.298);EdTech(84.318);   ReadingFirst(84.357);TitleIII,PartA(84.365,);MSP(84.366);andTitleII,    PartA(84.367). p   ThissectionalsoappliestoIDEA(84.027and84.173)andVocationalEducation n  (84.048). T  AneligibleschoolparticipatingunderTitleI,PartAmay,inconsultationwithits   LEA,useitsTitleI,PartAfunds,alongwithfundsprovidedfromtheabove   identifiedprograms,toupgradetheschoolsentireeducationalprogramina ~ schoolwideprogram.SeeIII.N.2, SpecialTestsandProvisionsSchoolwide d Programsinthiscrosscuttingsectionfortestingrelatedtoschoolwideprograms J (Section1114ofESEA(20USC6314)). 0 SeeIV, OtherInformation,forguidanceonthetreatmentofcombined . schoolwidefundsforpurposesofTypeAprogramdeterminationandpresentation  intheScheduleofExpendituresofFederalAwards.   3.  ` Transferability (SEAsandLEAs) X  ESEAprogramsinthisSupplementtowhichthissectionappliesare:SDFSCA V (84.186);21stCCLC(84.287);TitleV,PartA(84.298);EdTech(84.318);and < TitleII,PartA(84.367). " SEAsmaytransfernonadministrativefundsallocatedforStatelevelactivities    fromoneormorelistedapplicableprogramstooneormoreoftheotherlisted f!! applicableprograms,ortoTitleI,PartA(84.010).Exceptfor21stCCLC L"" (84.287),LEAsnotidentifiedforcorrectiveactionunderSection1116ofESEA 2## mayalsotransferfundsfromoneormoreofthelistedapplicableprogramsto $h$ anotherlistedapplicableprogramortoTitleI,PartA.LEAsidentifiedfor $N % correctiveactionmaynottransferfunds(Sections6123(a)and(b)ofESEA %4!& (20USC7305b(a)and(b))). &"' Transferredfundsaresubjecttoalloftherequirements,setasides,andlimitations x(#) oftheprogramsintowhichtheyaretransferred.LEAsidentifiedforschool ^)$* improvementarerequiredtousetransferredfundsforschoolimprovement D*%+ activities(Section6123(e)ofESEA(20USC7305b(e))). *+z&, SeeIII.G.3.b, Matching,LevelofEffort,EarmarkingEarmarking,for ,((. additionaltestingrelatedtotransferability. -)/ SeeIV, OtherInformation,forguidanceonthetreatmentoffundstransferred  underthisprovisionforpurposesofTypeAprogramdeterminationand  presentationintheScheduleofExpendituresofFederalAwards. |  4.  ` SmallRuralSchoolsAchievement(SRSA)AlternativeUsesofFundsProgram *z   ESEAprogramsinthisSupplementtowhichthissectionappliesare:SDFSCA  ( (84.186);TitleV,PartA(84.298);EdTech(84.318);andTitleII,PartA   (84.367).   LEAsthat(a)haveatotalaveragedailyattendanceoffewerthan600students,or R   serveonlyschoolsthatarelocatedincountieswithapopulationdensityoffewer 8  than10personspersquaremile,and(b)serveonlyschoolsthatarecodedbythe n  NationalCenterforEducationalStatistics(NCES)asrural(NCEScodeof7or8), T  or(withtheconcurrenceoftheSEA)arelocatedinanareadefinedasruralbya :  governmentalagencyoftheStatemay,afternotifyingtheSEA,spendallorpart   ofthefundsreceivedundertheabovefourprogramsforlocalactivities  authorizedunderoneormoreofthefollowingsevenprograms:   P ` E.` hp x (#` X(#ECFDA84.010  TitleIGrantstoLocalEducationAgencies(LEAs)(PartA,TitleI) J CFDA84.186  SafeandDrugFreeSchoolsandCommunities"StateGrants(Part H A,TitleIV) . CFDA84.287  TwentyFirstCenturyCommunityLearningCenters(PartB,Title  IV) r CFDA84.298  InnovativeEducationProgramStrategies(PartA,TitleV)  p CFDA84.318  EducationTechnologyStateGrants(PartD,TitleII)  CFDA84.365  EnglishLanguageAcquisitionGrants(TitleIII) | CFDA84.367  ImprovingTeacherQualityStateGrants(Subpart2,PartA, *!z! TitleII); "`" (Sections6211(a)(c)ofESEA(20USC7345(a)(c))) #$  P ` E.` ` hp x (#X(#ESeeIV, OtherInformation,forguidanceonthetreatmentoffundstransferred l% & underthisprovisionforpurposesofTypeAprogramdeterminationand R&!'  presentationintheScheduleofExpendituresofFederalAwards. 8'"(  E.` hp x (#` X(#E&   B.  AllowableCosts/CostPrinciples    X1. ` AlternativeFiscalandAdministrativeRequirements (SEAs/LEAs) ^  X E.` ` hp x (#X(#EThissectionappliestoallESEAprogramsinthisSupplement:TitleI,PartA  \ (84.010);MEP(84.011);SDFSCA(84.186);CSP(84.282);21stCCLC(84.287); B  Bilingual(84.288,84.290,84.291);TitleV,PartA(84.298);EdTech(84.318);  ( ReadingFirst(84.357);TitleIII,PartA(84.365);MSP(84.366);andTitleII,   PartA(84.367).   AStatemayadoptitsownwrittenfiscalandadministrativerequirements,which R   areconsistentwiththeprovisionsofOMBCircularA87,forexpendingand 8  accountingforallfundsreceivedbySEAsandLEAsunderESEAprograms.The n  writtenfiscalandadministrativerequirementsmust:(a)besufficientlyspecificto T  ensurethatfundsareusedincompliancewithallapplicablestatutoryand :  regulatoryprovisions,includingensuringthatcostsareallocabletoaparticular   costobjective;(b)ensurethatfundsreceivedarespentonlyforreasonableand  necessarycostsoftheprogram;and(c)ensurethatfundsarenotusedforgeneral  expensesrequiredtocarryoutotherresponsibilitiesofStateorlocal  governments.(34CFRsection299.2).'u h  2. ` DocumentationofEmployeeTimeandEffort(ConsolidatedAdministrative f FundsandSchoolwidePrograms)  L  ESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part  A(84.010);MEP(84.011);SDFSCA(excepttheGovernorsProgramauthorized  underSection4114,operatedbySEAsconsolidatingadministrative v funds)(84.186);CSP(84.282);21stCCLC(84.287);Bilingual(schoolwide \ programsonly)(84.288,84.290and84.291);TitleV,PartA(84.298);EdTech B (84.318);ReadingFirst(84.357);TitleIII,PartA(84.365);MSP(84.366);and (x TitleII,PartA(84.367). ^ ThissectionalsoappliestoIDEA(schoolwideprogramsonly)(84.027and    84.173)andVocationalEducation(schoolwideprogramsonly)(84.048). !!   (00l / /""  ,E.` hp x (#` X(#E   ,?( hp x (#X(#?t2  a  .3     ConsolidatedAdministrativeFunds󀄀AnSEAorLEAthatconsolidates P## Federaladministrativefundsunder20USC7821or7823isnotrequired 6$$ tokeepseparaterecordsbyindividualprogram(20USC7821and7823). %l % TheSEAorLEAmaytreattheconsolidatedadministrativecostobjective &R!& asa dedicatedfunction.Asaresult,anemployeewhoworkssolelyon &8"' consolidatedadministrativeactivitiesmaymeetthesemiannual '#( certificationrequirementunderOMBCircularA87,AttachmentB, ($) paragraph8.h.(3),eitherbysubmittingsemiannualcertificationstocover )$* theconsolidatedactivitiesorthroughtimeandattendancecertifications *%+ accomplishedundertheStatesortheLEAsnormalstandardsforpayroll f+&,  documentation.Forexample,ift]݌ L,'- Ќ ' ` X(#  X(#'   ""  XE.` hp x (#` X(#E   ` X<% hp x (#X(#<2(  1  )3     Thestandardsforpayrolldocumentationcomplywiththecriteriain   OMBCircularA87,AttachmentB,paragraphs8.h.(5),(6),  and(7),݌ | Ќ ` ' ` X(# X(#'   ""  XE.` hp x (#` X(#E   ` X<% hp x (#X(#<s2(  2  )3     EmployeesarecodedtothededicatedfunctionintheStatesorthe *z LEAspayrollsystem,andsY݌  ` Ќ ` ' ` X(# X(#'   ""  XE.` hp x (#` X(#E   ` X<% hp x (#X(#<2(  3  )3     Theirpotentialassignmenttomultipleprograms/activitiesisnot   withintheauthorityorpurviewofthesupervisorresponsiblefor   certifyingtimeandattendance"then݌    Ќ ` ' ` X(# X(#'   9" hp x (#` X(#9thepayrollcertificationshallbeacceptedinlieuofthesemiannual 8  certificationoftimeandeffort. n  E. ` hp x (# X(#EHowever,ifanemployeeworks,inwholeorinpart,onaFederalprogram   whoseadministrativefundshavenotbeenconsolidated,orinparton   activitiesfundedfromotherrevenuesources,thefollowingapplies:     ` <% hp x (# X(#<(1)  Anemployeewhoworkssolelyonasinglecostobjective(i.e.,a F singleFederalprogramwhoseadministrativefundshavenotbeen ,| consolidated)mustfurnishasemiannualcertificationthathe/she b hasbeenengagedsolelyinactivitiessupportedbytheapplicable H sourceinaccordancewithOMBCircularA87,AttachmentB, . paragraph8.h.(3).  (2)  Anemployeewhoworksinpartonasinglecostobjective(i.e.,a r singleFederalprogramwhoseadministrativefundshavenotbeen X consolidated),andinpartonconsolidatedFederaladministrative > activitiesoractivitiesfundedfromotherrevenuesources,must $t maintaintimeandeffortdistributionrecordsinaccordancewith  Z OMBCircularA87,AttachmentB,paragraph8.h.(4) @ documentingtheportionoftimeandeffortdedicatedto: &   ` H.h` hp x (#X(#H(a) h Thesinglecostobjective,and !! (b) h Eachprogramorothercostobjectivesupportedbyeither 2## consolidatedFederaladministrativefundsorotherrevenue $h$ sources. $N % ""  , E.` hp x (#hX(#E   ,B+ hp x (#X(#BB2  b  .3     SchoolwideProgramsExceptasnotedbelow,aschoolthatconsolidates &!' FederalfundswithStateandlocalfundsinaschoolwideprogramunder '"( 20USC6314isnotrequiredtomaintainseparaterecordsbyprogram(20 x(#) USC6314).(Note:ReadingFirstfundscannotbeconsolidatedsee ^)$* FederalRegister,NoticeofAuthorizationandExemptionofSchoolwide D*%+ Programs,July2,2004,69FR4036140362)Theschoolmaytreat *+z&, consolidatedschoolwidefundsasa dedicatedfunction.Asaresult,an ,`'- employeewhoworkssolelyonactivitiessupportedwithFederal,state,or ,F(. localfundsconsolidatedinaschoolwideprogrammaymeetthesemi -,)/ annualcertificationrequirementunderOMBCircularA87,Attachment  B,paragraph8.h.(3),eitherbysubmittingsemiannualcertificationsfor  theconsolidatedactivitiesorthroughtimeandattendancecertifications | accomplishedunderanLEAsnormalstandardsforpayroll b documentation.Forexample,if:B.݌ H Ќ  * hX(#  X(#*   ""  X E.` hp x (#hX(#E   ` XB+ z hp x (#X(#Bћ2(  1  )3      z Thestandardsforpayrolldocumentationcomplywiththecriteriain  F OMBCircularA87,AttachmentB,paragraph8.h.(5),(6),  , and(7),ћ݌   Ќ  ` - hX(# hX(#-   ""  X E.` hp x (#hX(#E   ` XB+ N z hp x (#X(#BU2(  2  )3      z EmployeesarecodedtothededicatedfunctionintheStatesorthe p   LEAspayrollsystem,andUA݌ V  Ќ  ` * hX(#N hX(#*   ""  X E.` hp x (#hX(#E   ` XB+ N z hp x (#X(#B2(  3  )3      z Theirpotentialassignmenttomultipleprograms/activitiesisnot T  withintheauthorityorpurviewofthesupervisorresponsiblefor :  certifyingtimeandattendance"then݌   Ќ  ` * hX(#N hX(#*     E. ` hp x (#hX(#Ethepayrollcertificationshallbeacceptedinlieuofthesemiannual ~ certificationoftimeandeffort. d However,ifanemployeeworks,inwholeorinpart,onactivities b supportedwithFederalfundsthatarenotconsolidatedinaschoolwide H program(and,therefore,theemployeeissubjecttoallofthespecific . requirementsoftheFederalprogramunderwhichheorsheisfunded),the  employeewouldfollowtheproceduresunderparagraph2.a.above,  dependingonwhethertheemployeescompensationisfundedinwholeor  inpartwithFederalfundsthatarenotconsolidated(20USC6314). v (GuidanceiscontainedinthepublicationentitledPolicyGuidancefor \ TitleI,PartA:ImprovingBasicProgramsOperatedbyLocal B EducationalAgencies!April1996.Thispublicationisavailableonthe (x Internetat:4O  5  .  http://www.ed.gov/legislation/E%O%  %y%  SEA/Title_I/index.html.EA  6̧EA  7L.d ^   E.` ` hp x (# X(#Ed3. ` IndirectCosts (Allgrantees/allsubgrantees)     ESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part j"" A(84.010);MEP(84.011);CSP(84.282);21stCCLC(84.287);Bilingual P## (84.288,84.290,and84.291);TitleV,PartA(84.298);EdTech(84.318); 6$$ ReadingFirst(84.357);TitleIII,PartA(84.365);MSP(84.366);andTitleII, %l % PartA(84.367). &R!& ThissectionalsoappliestoAdultEducation(84.002);IDEA(84.027and84.173); '#( VocationalEducation(84.048);andIDEA,PartC(84.181). (#) A restrictedindirectcostrate(RICR)mustbeusedforprogramsadministered D*%+ byStateandlocalgovernmentsandtheirgovernmentalsubrecipientsthathavea *+z&, statutoryrequirementprohibitingtheuseofFederalfundstosupplantnonfederal ,`'-  funds.Nongovernmentalgranteesorsubrecipientsadministeringsuchprograms ,F(. havetheoptionofusingtheRICR,oranindirectcostrateof8percent,unlessED  determinesthattheRICRwouldbelower.   & > Theformulafortherestrictedindirectcostrateisasfollows: D RICR=(Generalmanagementcosts+Fixedcosts)/(Otherexpenditures) B Generalmanagementcostsarecostsofactivitiesthatareforthedirectionand   controlofthegrantees(orsubgrantees)affairsthatareorganizationwide,such   ascentralaccountingservices,payrollpreparationandpersonnelmanagement. l   ForStateandlocalgovernmentsthegeneralmanagementindirectcostsconsistof R   (1)allocatedStatewideCentralServiceCostsapprovedbytheDepartmentof 8  HealthandHumanServicesinaformalStatewideCostAllocationPlan n  (SWCAP)as SectionIcostsand(2)departmentalindirectcosts.Theterm T   generalmanagementasitappliestodepartmentalindirectcostsdoesnot :  includeexpenditureslimitedtoonecomponentoroperationofthegrantee.   Specificallyexcludedfromgeneralmanagementcostsarethefollowingcoststhat  arereclassifiedandincludedinthe otherexpendituresdenominator:'> D    E. ` hp x (#` X(#E(a) Divisionaladministrationthatislimitedtoonecomponentofthegrantee; J (b) Thegoverningbodyofthegrantee; H (c) Compensationofthechiefexecutiveofficerofthegrantee;  (d) Compensationofthechiefexecutiveofficerofanycomponentofthe T grantee;and : (e) Operationoftheimmediateofficesoftheseofficers. 8   E.` ` hp x (# X(#EAlsoexcludedfromtheSWCAPSectionIindirectcostsareanyoccupancyand  maintenancetypecostsasdescribedin34CFRsection76.568.However, | becausethesecostsareallocatedandnotincurredatthedepartmentallevel,they b   donotrequirereclassificationtothe otherexpendituredenominator. H!! Fixedcostsarecontributionstofringebenefitsandsimilarcostsassociatedwith "F# salariesandwagesthatarechargedasindirectcosts,includingretirement,social #,$ security,pension,unemploymentcompensationandinsurancecosts. $ % Otherexpendituresarethegranteestotalexpendituresforitsfederallyandnon p&!' federallyfundedactivities,includingdirectlychargedoccupancyandspace V'"( maintenancecosts(asdefinedin34CFRsection76.568),andthecostsrelatedto <(#) thechiefexecutiveofficerofthegranteeoranycomponentofthegranteeandits ")r$* offices.Excludedaregeneralmanagementcosts,fixedcosts,subgrants,capital *X%+ outlays,debtservice,finesandpenalties,contingencies,andelectionexpenses *>&,  (exceptforelectionsrequiredbyFederalstatute). +$'- IndirectcostschargedtoagrantaredeterminedbyapplyingtheRICRtototal   directcostsofthegrantminuscapitaloutlays,subgrants,andotherdistortingor  unallowableitemsasspecifiedinthegranteesindirectcostrateagreement. | &  TheotherEDprograms(thosenothavingastatutorynonsupplantrequirement) *z thatallowindirectcostsdonotrequirearestrictedrateandshouldfollowthe  ` applicableOMBcostprinciplescircular(34CFRsections76.560and76.563  F 76.569).  ,   XE.` hp x (#` X(#E C.  CashManagement      ESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,PartA 8  (84.010);MEP(84.011);SDFSCA(includingtheGovernorsProgramauthorizedunder n  Section4114)(84.186);CSP(84.282);21stCCLC(84.287);Bilingual(84.288,84.290 T  and84.291);TitleV,PartA(84.298);EdTech(84.318);ReadingFirst(84.357);Title :  III,PartA(84.365);MSP(84.366);andTitleII,PartA(84.367).' *G   ThissectionalsoappliestoAdultEducation(84.002);IDEA(84.027and84.173);TRIO ~ Cluster(84.042,84.044,84.047,84.066and84.217);VocationalEducation(84.048); d VocationalRehabilitation(84.126);andIDEA,PartC(84.181). J GranteesdrawfundsusingtheGrantAdministrationandPaymentSystem(GAPS). H Granteesrequestfundsby:(1)creatingapaymentrequestusingtheGAPSExternal . AccessSystemthroughtheInternet;(2)callingtheGAPSPayeeHotline;or(3)ifthe  granteeisplacedonareimbursementbasisforanaward,submittinganSF270,Request  forAdvanceorReimbursement,toanEDprogramorregionaloffice.Whencreatinga  paymentrequestinGAPS,thegranteeentersthedrawdownamounts,byaward,directly v intoGAPS.Granteescanredistributedrawnamountsbetweengrantawardsbymaking \ adjustmentsinGAPStoreflectactualdisbursementsforeachaward.Whenrequesting B fundsusingtheothertwomethods,thegranteeprovidesdrawdowninformationtothe (x hotlineoperator,orontheSF270. ^ ToassistgranteesinreconcilingtheirinternalaccountingrecordswithGAPS,grantees    canusetheGAPSExternalAccessSystem(4LO  5  .  http://e%%  %%  %%  grants.ed.gov/.<EA  6EA  7L2)toobtainaGAPS !! ActivityReportshowingcumulativeanddetailinformationforeachaward.TheGAPS "" ActivityReportcanbecreatedandviewedon-lineandahardcopymaybeprintedas n## well. T$$  XE.` hp x (#X(#E D.  DavisBaconAct &R!&  XE.` hp x (#X(#E UndertheGeneralEducationProvisionsAct,whenauthorized,allconstructionand '#( minorremodelingprojectsunderEDprogramscoveredbytheCrossCuttingSectionare (#) subjecttotherequirementsoftheDavisBaconAct(20USC1232b).AdditionalED |)$* programsaresubjecttotheDavisBaconActasindicatedintherelevantprogram b*%+  description. H+&,  & P  %%  %UG.  Matching,LevelofEffort,Earmarking    X XE.` hp x (#X(#E 1. ` Matching  ^  X E.` ` hp x (#X(#ESeeindividualprogramcompliancesupplementforanymatchingrequirements.  \  X E.` hp x (#` X(#E 2.1 ` LevelofEffort 󀄀MaintenanceofEffort(SEAs/LEAs)    X E.` ` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part h  A(84.010);SDFSCA(excepttheGovernorsProgramauthorizedunderSection N   4114)(84.186);EdTech(84.318);TitleIII,PartA(84.365);andTitleII,PartA 4   (84.367).'P + j  AsdescribedinII, ProgramProceduresGeneralandProgramSpecificCross   CuttingRequirements,thisrequirementisageneralcrosscuttingrequirement   thatneedonlybetestedoncetocoverallmajorprogramstowhichitapplies.   AnLEAmayreceivefundsunderanapplicableprogramonlyiftheSEAfinds B thatthecombinedfiscaleffortperstudentortheaggregateexpendituresofthe (x LEAfromStateandlocalfundsforfreepubliceducationfortheprecedingyear ^ wasnotlessthan90percentofthecombinedfiscaleffortoraggregate D expendituresforthesecondprecedingyear,unlessspecificallywaivedbyED. * AnLEAsexpendituresfromStateandlocalfundsforfreepubliceducation  includeexpendituresforadministration,instruction,attendanceandhealth n services,pupiltransportationservices,operationandmaintenanceofplant,fixed T charges,andnetexpenditurestocoverdeficitsforfoodservicesandstudentbody : activities.Theydonotincludethefollowingexpenditures:(a)anyexpenditures  p forcommunityservices,capitaloutlay,debtserviceandsupplementaryexpenses V asaresultofaPresidentiallydeclareddisasterand(b)anyexpendituresmade < fromfundsprovidedbytheFederalgovernment. " IfanLEAfailstomaintainfiscaleffort,theSEAmustreducetheamountofthe    allocationoffundsunderanapplicableprograminanyfiscalyearintheexact f!! proportionbywhichtheLEAfailstomaintaineffortbyfallingbelow90percent L"" ofboththecombinedfiscaleffortperstudentandaggregateexpenditures(using 2## themeasuremostfavorabletotheLEA)(Section9521ofESEA(20USC7901); $h$ 34CFRsection299.5). $N % InsomeStates,theSEApreparesthecalculationfrominformationprovidedby &!' theLEA.InotherStates,theLEAspreparetheirowncalculation.Theaudit '"( procedurescontainedinIII.G.2.1, LevelofEffortMaintenanceofEffort, x(#) shouldbeadaptedtofitthecircumstances.Forexample,ifauditingtheLEAand ^)$* theLEAdoesthecalculations,theauditorshouldperformstepsa,b,andc.If D*%+ auditingtheLEAandtheSEAdoesthecalculation,theauditorshouldperform *+z&, stepcfortheamountsreportedtotheSEA.IfauditingtheSEAandtheSEA ,`'- performsthecalculation,theauditorshouldperformstepsa.andb.andamend ,F(. stepctotraceamountstotheLEAreports.IfauditingtheSEAandtheLEA -,)/ performsthecalculation,theauditorshouldperformstepa.and,ifthe  requirementwasnotmet,determineifthefundingwasreducedappropriately.   &  2.2 ` LevelofEffort 󀄀SupplementNotSupplant(SEAs/LEAs) D  ESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part B A(84.010);MEP(84.011);SDFSCA(84.186);21stCCLC(84.287);Bilingual  ( (84.288,84.290and84.291);TitleV,PartA(84.298);EdTech(84.318);Title   III,PartA(84.365);MSP(84.366);andTitleII,PartA(84.367).   General󀄀AnSEAandLEAmayuseprogramfundsonlytosupplementand,to R   theextentpractical,increasetheleveloffundsthatwould,intheabsenceofthe 8  Federalfunds,bemadeavailablefromnonFederalsourcesfortheeducationof n  participatingstudents.InnocasemayanLEAuseFederalprogramfundsto T  supplantfundsfromnonFederalsources(TitleI,PartA,Section1120A(b)of :  ESEA(20USC6321(b));MEP,Section1304(c)(2)ofESEA(20USC   6394(c)(2));TitleIII,Section3115ofESEA(20USC6825(f));SDFSCA,  Section4113(a)(8)ofESEA(20USC7113(a)(8));21stCLCC,Section4204of  ESEA(20USC7174(b)(2)(G));TitleV,PartA,Section5144ofESEA(20USC  7217c);EdTech,Section2413(b)(6)ofESEA(20USC6763(b)(6));MSP,20 h USC6662(a)(4);andTitleII,PartA,Sections2113(f)and2123(b)ofESEA(20 N USC6613(f)and6623(b))).'D% 4 Inthefollowinginstances,itispresumedthatsupplantinghasoccurred: 2   E. ` hp x (#` X(#Ea. TheSEAorLEAusedFederalfunds(exceptBilingual)toprovide  servicesthattheSEAorLEAwasrequiredtomakeavailableunderother v Federal,Stateorlocallaws. \ b. TheSEAorLEAusedFederalfundstoprovideservicesthattheSEAor  Z LEAprovidedwithnonFederalfundsintheprioryear. @ c. TheSEAorLEAusedTitleI,PartAorMEPfundstoprovideservicesfor    participatingchildrenthattheSEAorLEAprovidedwithnonFederal !! fundsfornonparticipatingchildren. j""   E.` ` hp x (# X(#EThesepresumptionsarerebuttableiftheSEAorLEAcandemonstratethatit $h$ wouldnothaveprovidedtheservicesinquestionwithnonFederalfundshadthe $N % Federalfundsnotbeenavailable. %4!& SchoolwideProgram󀄀InaTitleIschoolwideprogram,aschoolisnotrequiredto '"( providesupplementalservicestoidentifiedchildren.Aschooloperatinga x(#) schoolwideprogramdoesnothaveto:(1)showthatFederalfundsusedwithinthe ^)$* schoolarepayingforadditionalservicesthatwouldnototherwisebeprovided; D*%+ (2)demonstratethatFederalfundsareusedonlyforspecifictargetpopulations; *+z&, or(3)separatelytrackFederalprogramfundsoncetheyreachtheschool.Sucha ,`'- school,however,isrequiredtousefundsavailableunderTitleIandunderany ,F(. otherFederalprogramsthatarecombinedtosupportitsschoolwideprogramto -,)/ supplementthetotalamountoffundsthatwould,intheabsenceoftheFederal  funds,bemadeavailablefromnonFederalsourcesforthatschool,including  fundsneededtoprovideservicesthatarerequiredbylawforchildrenwith | disabilitiesandchildrenwithlimitedEnglishproficiency(TitleI,PartA,Section b 1114ofESEA(20USC6314);MEP,Section1306(b)(4)ofESEA(20USC H 6396(b)(4));34CFRsections200.25through200.29). . ~ TitleI,PartAandMEP󀄀AnSEAandLEAmayexcludefromdeterminationsof  , compliancewiththesupplement"notsupplantrequirement,supplementalState   orlocalfundsspentinanyschoolattendanceareaorschoolforprogramsthat    meettheintentandpurposesofTitleI,PartAortheMEP,respectively,as    identifiedinTitleIofESEA(Sections1120A(d)and1304(c)(2)ofESEA(20 t  USC6321(d)and6394(c)(2));34CFRsections200.79and200.88). Z  Bilingual󀄀ThissupplementnotsupplantrequirementdoesnotprecludeanLEA X  fromusingBilingualprogramfundsforactivitiescarriedoutunderaFederalor >  StatecourtorderrespectingservicestobeprovidedtolimitedEnglishproficient $ (LEP)children,ortocarryoutaplanapprovedbytheSecretaryasadequate   underTitleVIoftheCivilRightsActof1964withrespecttoservicestobe  providedtoLEPchildren(TitleVII,Section7116(h)(4)ofESEA,priorto  enactmentofNCLB(20USC7426(h)(4))). l  X E.` hp x (#` X(#E 3. ` Earmarking  j  Xa. Administration(SEAs)    E. ` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare: v TitleI,PartA(84.010)andMEP(84.011). \ AnSEAmayreservefortheadministrationofTitleIprogramsuptoone  Z percentfromeachoftheamountsallocatedtotheStateunderTitleI,Parts @ A,C(MEP),andD(Subpart1)or$400,000,whicheverisgreater.An & SEAmayreservelessthanonepercentfromeachofPartsA,C,andD.    Moreover,anSEAdoesnotneedtoreservethesamepercentagefrom !! eachpart,althoughtheSEAmaynotreservemorefromPartsCandD "" thanitwouldhavereservedifithadreservedproportionateamountsfrom n## PartsA,C,andD.ForanySEAreserving$400,000,theamounttaken T$$ fromeachofTitleI,PartsA,C,andD(Subpart1)mustbeproportionate. :% % AnSEAisnotrequiredtousethesameproportionoffundsreservedfrom  &p!& PartsA,C,andDforadministrativeactivitiesrelatedtothoseParts. 'V"' AsexplainedinIII.A.1, ActivitiesAllowedorUnallowedConsolidation ($) ofadministrativefunds,theamountsreservedabovemaybeconsolidated )$* withStateadministrativefundsavailableunderotherapplicableprograms *%+ (TitleI,Section1004ofESEA(20USC6304);seealso34CFRsection f+&, 200.100(b)). L,'-  b. Transferability(SEAsandLEAs) -J)/  ESEAprogramsinthisSupplementtowhichthissectionappliesare:  SDFSCA(84.186);21stCCLC(84.287);TitleV,PartA(84.298);EdTech  (84.318);andTitleII,PartA(84.367). | SEAsmaytransferupto50percentofeachfiscalyearsbaseofnon *z administrativefundsallocatedforStatelevelactivitiesfromoneormore  ` ofthelistedapplicableprogramstooneormoreoftheotherlisted  F applicableprograms,ortoTitleI,PartA(84.010).Exceptfor21stCCLC  , (84.287),LEAsnotidentifiedforimprovementorcorrectiveactionunder   Section1116ofESEAmayalsotransferupto50percentofeachfiscal    yearsfundsfromoneormoreofthelistedapplicableprogramstoanother    listedapplicableprogram,ortoTitleI,PartA.LEAsidentifiedfor t  improvementmaytransferupto30percentoftheirallocationbase.LEAs Z  identifiedforcorrectiveactionmaynottransferfunds(Sections6123(a) @  and(b)ofESEA(20USC7305b(a)and(b))). &v  Theallocationbaseforaprogramforafiscalyearequalsthatfiscalyears $ originalfundingplusfundstransferredintotheprogramforthatfiscal   year.Fundsmaybetransferredduringafiscalyearscarryoverperiod,as  longasthetotalamounttransferredfromthefiscalyearsallocationbase  doesnotexceedthemaximumpercentage.Fundsmustbetransferredto l thereceivingprogramsallocationforthesamefiscalyearthatthefunds R wereallocatedtothetransferringprogram(Sections6123(a)and(b)of 8 ESEA(20USC7305b(a)and(b))). n  E.` hp x (# X(#E& , H.  PeriodofAvailabilityofFederalFunds (Allgrantees)   XE.` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,PartA z (84.010);MEP(84.011);SDFSCA(includingtheGovernorsProgramauthorizedunder ` Section4114)(84.186);CSP(84.282);Bilingual(84.288,84.290and84.291);TitleV, F PartA(84.298);EdTech(84.318);ReadingFirst(84.357);TitleIII,PartA(84.365); ,| MSP(84.366);andTitleII,PartA(84.367).',G  b ThissectionalsoappliestoAdultEducation(84.002);IDEA(84.027and84.173); !! VocationalEducation(84.048);andIDEA,PartC(84.181). "" AllESEAandotherprogramslistedaboveexceptBilingual,CSP,andsubrecipients T$$ underVocationalEducation󀄀LEAsandSEAsmustobligatefundsduringthe27months, :% % extendingfromJuly1ofthefiscalyearforwhichthefundswereappropriatedthrough  &p!& September30ofthesecondfollowingfiscalyear.Thismaximumperiodincludesa15 'V"' monthperiodofinitialavailabilityplusa12monthperiodforcarryover.Forexample, '<#( fundsfromthefiscalyear(FY)2004appropriationinitiallybecameavailableonJuly1, ("$) 2004andcanbeobligatedbythegranteeandsubgranteethroughSeptember30,2006. )%* (Section421(b)ofGEPA(20USC1225(b));34CFRsections76.707through76.709). *%+ TitleI,PartA󀄀AnLEAthatreceives$50,000ormoreinTitleI,PartAfundscannot L,'- carryoverbeyondtheinitial15monthsofavailabilitymorethan15percentofitsTitleI, 2-(. PartAfunds.AnSEAmaygrantawaiverofthepercentagelimitationonceeverythree  yearsiftheLEAsrequestisreasonableandnecessary.AnSEAmayalsograntawaiver  inanyfiscalyearinwhichsupplementalappropriationsforTitleI,PartAbecome | availableforobligation.(Section1127ofESEA(20USC6339)). b SDFSCAprogram󀄀AnLEAthatreceivesSDFSCAfundingcannotcarryoverbeyond  ` theinitial15monthsofavailabilitymorethan25percentofitsSDFSCAStateGrant  F funds.AnSEAmaywaivethepercentagelimitationforgoodcause(Section4113(f)(2)  , ofESEA(20USC7113(f)(2))).   BilingualandCSPprograms󀄀Therecipientmustobligatefundsfromagrantduringthe p   periodforwhichthefundsareavailableforobligationassetforthinthegrantaward V  document.Recipientsmustmaintaindocumentationtodemonstratethattheobligation <  occurredduringtheperiodofavailabilityandwaschargedtoanappropriateyearsgrant "r  funds.Ifobligationsoccuroutsideoftheperiodofavailability,thefundsarenottimely X  obligatedandmustbereturned.However,underthe expandedauthoritiesprovisions >  granteesarepermittedto: $   (00 / /""  ,XE.` hp x (#X(#E   ,E.` ` hp x (#X(#Es2  a  .3   `   Extendgrantsautomaticallyattheendofaprojectperiodforuptooneyear  withoutpriorapproval(withsomeexceptions);sb݌ h Ќ X' X(#` X(#'   ""  ,XE.` hp x (#X(#E   ,?(` ` hp x (#X(#?2  b  .3   `   Carryfundsoverfromonebudgetperiodtothenext;݌ f Ќ X$ X(#` ` X(#$   ""  ,XE.` hp x (#X(#E   ,B+` ` hp x (#X(#B2  c  .3   `   Obligatefundsupto90daysbeforetheeffectivedateofabudgetperiodwithout  priorapproval;and݌  Ќ X' X(#` ` X(#'   ""  ,XE.` hp x (#X(#E   ,B+` ` hp x (#X(#B2  d  .3   `   Transferfundsamongbudgetcategorieswithoutpriorapproval,exceptfora X limitednumberofspecificcases.݌ > Ќ X' X(#` ` X(#'   E.` hp x (#X(#EFurtherexplanationoftheseexpandedauthoritiesmaybeobtainedfromtheGrants < PolicyandOversightStaffat4,beO  5  .  http://www.ed.gov/%  %%  policy/fund/guid/gposbul/gpos19.html.Kmad  6mad  7,beA " (34CFRsections75.261,75.253(c),75.263,and75.264).  VocationalEducationprogram󀄀Inanyacademicyearthatasubrecipientdoesnot f!! obligatealloftheamountsitisallocatedundertheSecondary,Postsecondary,andAdult L"" VocationalEducationprogramsforthatyear,itmustreturntheunobligatedamountsto 2## theStatetobereallocatedundertheSecondary,Postsecondary,andAdultVocational $h$  EducationProgram,asapplicable(PerkinsIII,section133(b)(20USC2353(b))). $N % &   ConsolidatedadministrativefundsConsolidatedadministrativefundsmustbeobligated  withintheperiodofavailabilityoftheprogramthatthefundscamefrom.Because  expendituresinaconsolidatedadministrativefundarenotaccountedforbyspecific | Federalprograms,anSEAorLEAmayuseafirstin,firstoutmethodfordetermining b whenfundswereobligated,mayattributecostsinproportiontothedollarsprovided,or H mayuseanotherreasonablemethod. . ~ DefinitionofObligation󀄀Anobligationisnotnecessarilyaliabilityinaccordancewith  , generallyacceptedaccountingprinciples.Whenanobligationoccurs(ismade)depends    onthetypeofpropertyorservicesthattheobligationisfor:'     * ddd Xdd Xdd X(#(#,<,<+  :'V V   :! d  ! XE.` hp x (#X(#E IFANOBLIGATIONISFOR 6#  6! d THEOBLIGATIONISMADE N;#     N!   | K+(X KE.4` hp x (#X(#E(a)  Acquisitionofrealorpersonal   property. 6#  6!   | E.` hp x (#4X(#EOnthedateonwhichtheStateor   subgranteemakesabindingwritten   commitmenttoacquiretheproperty. N;#r      N! r  | K+(X KE.4` hp x (#X(#E(b)  Personalservicesbyanemployeeof   theStateorsubgrantee. 6#y 6! r  | E.` hp x (#4X(#EWhentheservicesareperformed. N;#      N!y | K+(XKE.4` hp x (#X(#E(c)  Personalservicesbyacontractor  whoisnotanemployeeoftheState  orsubgrantee. 6#f 6!y | E.` hp x (#4X(#EOnthedateonwhichtheStateor  subgranteemakesabindingwritten  commitmenttoobtaintheservices. N;#f     N!f | K+(XKE.4` hp x (#X(#E(d)  Performanceofworkotherthan  personalservices. 6#m 6!f | E.` hp x (#4X(#EOnthedateonwhichtheStateor  subgranteemakesabindingwritten m commitmenttoobtainthework. N;#S      N!tS | K+(XtKE.4` hp x (#X(#E(e)  Publicutilityservices. 6#t! 6!tS | E.` hp x (#4X(#EWhentheStateorsubgranteereceivesthe t" services. N;#Z#     N!{Z | K+(X{KE.4` hp x (#X(#E(f)  Travel. 6#{$ 6!{Z | E.` hp x (#4X(#EWhenthetravelistaken. N;#{%     N!{ | K+(XKE.4` hp x (#X(#E(g)  Rentalofrealorpersonalproperty. 6#& 6!{ | E.` hp x (#4X(#EWhentheStateorsubgranteeusesthe ' property. N;#(    N! | K+(XKE.4` hp x (#X(#E(h)  Apreagreementcostthatwas ) properlyapprovedbytheState  * undertheapplicablecostprinciples. 6#o!+ 6! | E.` hp x (#4X(#EOnthefirstdayofthesubgrantperiod.3)',     3 B$B$!K+(X"K XE.` hp x (#X(#ETheactofanSEAorothergranteeawardingFederalfundstoanLEAorothereligible 2$. entitywithinaStatedoesnotconstituteafinalobligation.AnSEAorothergranteemay %h / notreallocategrantfundsfromonesubrecipienttoanotheraftertheperiodofavailability %N!0 (Section421(b)ofGEPA(20USC1225(b));34CFRsections76.703through76.710). &4"1 Ifagranteeorsubgranteeusesadifferentaccountingsystemoraccountingprinciples (#3 fromoneyeartothenext,itshalldemonstratethatthesystemorprinciplewasnot x)$4 improperlychangedtoavoidreturningfundsthatwerenottimelyobligated.Agranteeor ^*%5 subgranteemaynotmakeaccountingadjustmentsaftertheperiodofavailabilityinan D+&6  attempttooffsetauditdisallowances.Thedisallowedcostsmustberefunded. *,z'7  XE.` hp x (#X(#E& T  L.  Reporting    X 1. ` FinancialReporting  ^  X E.` ` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part  \ A(84.010);MEP(84.011);SDFSCA(includingtheGovernorsProgram B authorizedunderSection4114)(84.186);CSP(84.282);21stCentury(84.287);  ( Bilingual(84.288,84.290and84.291);TitleV,PartA(84.298);EdTech   (84.318);ReadingFirst(84.357);TitleIII,PartA(84.365);MSP(84.366);and   TitleII,PartA(84.367).    ThissectionalsoappliestoIDEA(84.027and84.173)andIDEA,PartC 8  (84.181).'T ; n    E.` hp x (#` X(#Ea. SF269,FinancialStatusReport󀄀NotApplicable     E. ` hp x (#X(#Eb. SF270,RequestforAdvanceorReimbursement󀄀Onlygranteesplacedon z  reimbursementarerequiredtocompletethisformtorequestpaymentof ` grantawardfunds.Therequirementtousethisformisimposedonan F individualrecipientbasis. ,| c. SF271,OutlayReportandRequestforReimbursementforConstruction * Programs󀄀NotApplicable  d. SF272,FederalCashTransactionsReport󀄀NotApplicable n e. LEAsandothersubrecipientsaregenerallyrequiredtoreportfinancial l informationtothepassthroughentity.Thesereportsshouldbetested R duringauditsofLEAs. 8  X E.` hp x (# X(#E 2. ` PerformanceReporting 󀄀NotApplicable   3. ` SpecialReporting  D    X E.` ` hp x (#X(#EStatePerPupilExpenditure(SPPE)Data(OMBNo.18500067)(SEAs/LEAs) !B" ESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,Part #$ A(84.010)andMEP(84.011). $% AsdescribedinII, ProgramProceduresGeneralandProgramSpecificCross 4&!' CuttingRequirements,thisrequirementisageneralcrosscuttingrequirement 'j"( thatneedonlybetestedoncetocoverallmajorprogramstowhichitapplies. (P#) Eachyear,anSEAmustsubmititsaverageStateperpupilexpenditure(SPPE) )$+ datatotheNationalCenterforEducationStatistics.TheseSPPEdataareusedby *%, EDtomakeallocationsunderseveralESEAprograms,includingTitleI,PartA, z+&- andMEP.SPPEdataarereportedontheNationalPublicEducationFinance `,'. Survey.SPPEdatacomprisetheStatesannualcurrentexpendituresforfree F-(/ publiceducation,lesscertaindesignatedexclusions,dividedbytheStates  averagedailyattendance.  LEAsmustsubmitdatatotheSEAfortheSEAsreport.TheSEAdetermines D theformatofthedatasubmissions. *z Currentexpenditurestobeincludedarethoseforfreepubliceducation,including  ( administration,instruction,attendanceandhealthservices,pupiltransportation   services,operationandmaintenanceofplant,fixedcharges,andnetexpenditures   tocoverdeficitsforfoodservicesandstudentbodyactivities.Current    expenditurestobeexcludedarethoseforcommunityservices,capitaloutlay,debt p   service,andexpendituresfromfundsreceivedunderTitleIandTitleV,PartAof V  ESEA.TodetermineitsexpendituresunderTitlesIandV,PartAofESEAina <  schoolwideprogram,anLEAcouldcalculatethepercentageoffundsthatTitleI "r  andTitleV,PartAcontributedtotheschoolwideprogramandthenapplythose X  percentagestothetotalexpendituresintheschoolwideprogram.Other >  reasonablemethodsmayalsobeused(Section9101(14)ofESEA(20USC $ 7801(14))).   ExceptwhenprovidedotherwisebyStatelaw,averagedailyattendancegenerally h meanstheaggregatenumberofdaysofattendanceofallstudentsduringaschool N yeardividedbythenumberofdaysschoolisinsessionduringsuchschoolyear. 4 ForpurposesofESEA,averagedailymembership(orsimilardata)canbeusedin j placeofaveragedailyattendanceinStatesthatprovideStateaidtoLEAsonthe P basisofaveragedailymembershiporsuchotherdata.WhenanLEAinwhicha 6 childresidesmakesatuitionorotherpaymentforthefreepubliceducationofthe  childinaschoolofanotherLEA,thechildisconsideredtobeinattendanceatthe  schooloftheLEAmakingthepayment,andnotattheschooloftheLEA  receivingthepayment.Similarly,whenanLEAmakesatuitionpaymenttoa ~ privateschoolortoapublicschoolofanotherLEAforachildwithdisabilities, d thechildisconsideredtobeinattendanceattheschooloftheLEAmakingthe J payment. 0   E.` hp x (#` X(#E N.  SpecialTestsandProvisions  !.!   E.` ` hp x (#X(#E 1. ` ParticipationofPrivateSchoolChildren (SEAs/LEAs) ##   XE.` hp x (#` X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,PartA :% % (84.010);MEP(84.011);SDFSCA(excepttheGovernorsProgramauthorizedunder  &p!& Section4114)(84.186);21stCCLC(84.287),Bilingual(84.288,84.290and84.291); 'V"' TitleV,PartA(84.298);EdTech(84.318);ReadingFirst(84.357);TitleIII,PartA '<#( (84.365);MSP(84.366);andTitleII,PartA(84.367). ("$) DependingonhowtheSEA/LEAimplementsrequirementsfortheprovisionofequitable *%+ participationofprivateschoolchildren,thisrequirementmaybetestedonageneralor f+&, programspecificbasis(asdescribedinII, ProgramProceduresGeneralandProgram L,'- SpecificCrossCuttingRequirements). 2-(.  ComplianceRequirements 󀄀AnSEA,LEA,oranyothereducationalserviceagency(or  consortiumofsuchagencies)receivingfinancialassistanceunderanapplicableprogram  mustprovideeligibleprivateschoolchildrenandtheirteachersorothereducational | personnelwithequitableservicesorotherbenefitsundertheseprograms.Beforean b agencyorconsortiummakesanydecisionthataffectstheopportunityofeligibleprivate H schoolchildren,teachers,andothereducationalpersonneltoparticipate,theagencyor . ~ consortiummustengageintimelyandmeaningfulconsultationwithprivateschool  d officials(Section9501ofESEA(20USC7881);34CFRsections299.6through299.9;  J TitleI,PartA,Section1120ofESEA(20USC6320);34CFRsections200.62through  0 200.67;andTitleV,PartA,Section5142ofESEA(20USC7217a)).    IfanLEAusesfundstoconcentrateservicesonaparticular group,attendancearea,or t  gradeoragelevel,privateschoolchildreninthat group,attendancearea,gradeorage Z  levelaretobeassuredequitableparticipationinprojects. @  UnderTitleI,PartA(i.e.,CFDA84.010)fundsmustbeallocatedtoeachparticipating >  publicschoolattendanceareaonthebasisofthetotalnumberofchildrenfromlow $ incomefamiliesresidinginthatarea.Incalculatingthetotalnumberofchildrenfrom   lowincomefamilies,thecalculationmustincludechildrenfromlowincomefamilies  whoattendprivateschools.AnLEAusesthefundsgeneratedbyprivateschoolchildren  fromlowincomefamiliestoprovideservicestoeligibleprivateschoolchildren(Section l 1120ofESEA(20USC6313(c));34CFRsection200.78(a)(2)). R ForprogramsotherthanTitle1,PartA,expendituresforservicesandbenefitstoeligible P privateschoolchildrenandtheirteachersandothereducationalpersonnelmustbeequal 6 onaperpupilbasistotheexpendituresforparticipatingpublicschoolchildrenandtheir  teachersandothereducationalpersonnel,takingintoaccountthenumberandeducational  needsofthechildren,teachersandothereducationalpersonneltobeserved.(Section  9501ofESEA(20USC7881);34CFRsection299.7) ~ ThiscompliancerequirementalsoappliestoTransferability(SeeIII.A.3, Activities ,| AllowedorUnallowedTransferability(SEAsandLEAs))fortransfersmadeby  b SDFSCA(84.186);21stCCLC(84.287);TitleV,PartA(84.298);EdTech(84.318);and  H  TitleII,PartA(84.367)(Section6123(e)(2)ofESEA;20USC7305b(e)(2)). !.!  AuditObjectives 󀄀Determinewhether(1)theLEA,SEA,orotheragencyreceiving ## ESEAfundshasconductedtimelyconsultationwithprivateschoolofficialstodetermine r$$ thekindofeducationalservicestoprovidetoeligibleprivateschoolchildren,(2)the X% % plannedserviceswereprovided,and(3)therequiredamountwasusedforprivateschool >&!&  children. $'t"'  X XE.` hp x (#X(#E&   SuggestedAuditProcedures (LEA/SEA)   X E.` ` hp x (#X(#Ea. ` Verify,byreviewingminutesofmeetingsandotherappropriatedocuments,that ^ theSEAorLEAconductedtimelyconsultationwithprivateschoolofficialsin D makingtheirdeterminationsandsetasidetherequiredamountforprivateschool *z children.  `  b. ` Reviewprogramexpenditureandotherrecordstoverifythateducationalservices   thatwereplannedwereprovided.'g   c. ` ForTitleI,PartA,verifythattheperpupilallocation(PPA)generatedbyprivate R   schoolchildrenfromlowincomefamilieslivinginparticipatingpublicschool 8  attendanceareasisequaltothePPAgeneratedbypublicschoolchildrenfrom n  lowincomefamilieslivinginthesameattendanceareas. T  d. ` ForprogramsotherthanTitleI,PartA,verifythatexpendituresareequalona   perpupilbasisforpublicandprivateschoolstudents,teachersandother   educationalpersonnel,takingintoconsiderationtheirnumbersandneeds. ~  X E.` hp x (#` X(#E& , 2. ` SchoolwidePrograms (LEAs) ,|  X XE.` hp x (#X(#EESEAprogramsinthisSupplementtowhichthissectionappliesare:TitleI,PartA * (84.010);MEP(84.011);SDFSCA(includingtheGovernorsProgramauthorizedunder  Section4114)(84.186);21stCCLC(84.287);Bilingual(84.288,84.290and84.291);  TitleV,PartA(84.298);EdTech(84.318);TitleIII,PartA(84.365);andTitleII,PartA  (84.367).',,l r ThissectionalsoappliestoIDEA(84.027and84.173)andVocationalEducation  p (84.048). V AsdescribedinII, ProgramProceduresGeneralandProgramSpecificCrossCutting  Requirements,thisrequirementisageneralcrosscuttingrequirementthatonlyneedsto  betestedoncetocoverallmajorprogramstowhichitapplies.     ComplianceRequirements 󀄀AschoolparticipatingunderTitleI,PartAmay,in ."~" consultationwithitsLEA,useitsTitleI,PartAfunds,alongwithfundsprovidedfrom #d# theaboveidentifiedprogramsandotherFederal,State,andlocaleducationfunds,to #J$ upgradetheschoolsentireeducationalprograminaschoolwideprogram.Toqualifyfor $0 % fiscalyear20022003andsubsequentyears,atleast40percentofthechildrenenrolledin %!& theschoolorresidingintheschoolattendanceareafortheinitialyearoftheschoolwide &!' programmustbefromlowincomefamilies.TheLEAisrequiredtomaintainrecordsto '"(  demonstratecompliancewiththisrequirement. x(#)   XE.` ` hp x (#X(#E&   a. ` Tooperateaschoolwideprogram,aschoolmustincludethefollowingthreecore  elements:   E. ` hp x (#` X(#E(1) Comprehensiveneedsassessmentoftheentireschool(34CFRsection D 200.26(a)). *z  (2) Comprehensiveplanbasedondatafromtheneedsassessment(34CFR  ( section200.26(b)).'t   (3) Annualevaluationof,andresultsachievedby,theschoolwideprogram l   andrevisionoftheschoolwideplanbasedonthatevaluation(34CFR R   section200.26(c)). 8   X E.` hp x (# X(#Eb. ` Aschoolwideplanalsomustincludethefollowingcomponents: 6   X E. ` hp x (#X(#E(1) Schoolwidereformstrategies(34CFRsection200.28(a)).   (2) Instructionbyhighlyqualifiedprofessionalstaff(34CFRsection B 200.28(b)). (x (3) Strategiestoincreaseparentalinvolvement(34CFRsection200.28(c)). & (4) Additionalsupporttostudentsexperiencingdifficulty(34CFRsection  200.28(d)). j (5) Transitionplansforassistingpreschoolchildreninthesuccessful h transitiontotheschoolwideprogram(34CFRsection200.28(e)). N  E.` ` hp x (# X(#Ec. ` Inconsolidatingfunds,aschoolwideprogramschoolmustalsoensurethatits  schoolwideprogramaddressestheneedsofchildrenwhoaremembersofthe  targetpopulationofanyFederalprogramthatisincludedintheschoolwide x program.Specificrequirementsapplytotheseprogramsasfollows: ^  E. ` hp x (#` X(#E(1) BeforeconsolidatingfundsorservicesreceivedunderMEP,aschoolwide  !\! programmust:(a)inconsultationwithparentsofmigratorychildrenor !B" organizationsrepresentingthoseparents,firstmeettheidentifiedneedsof "(# migratorychildrenthatresultfromtheeffectsoftheirmigratorylifestyle #$ orareneededtopermitmigratorychildrentoparticipateeffectivelyin $% schools;and(b)documentthatservicesaddressingthoseneedshavebeen % & met. p&!' (2) AschoolwideprogrammusthavetheapprovaloftheIndianparent (n#) advisorycommitteeestablishedinsection7114(c)(4)ofESEA(20USC )T$* 7424(c)(4))beforefundsreceivedundertheTitleVII,PartA,Subpart1 ):%+  IndianEducationprogramcanbeconsolidated. * &,   (00 / /""  ,E.` hp x (# X(#E   ,<% hp x (#X(#<&   X2(  3  )3     AschoolwideprogrammayconsolidatefundsreceivedunderIDEA,Part  B.However,theamountoffundsconsolidatedmaynotexceedthe   amountreceivedbytheLEAunderIDEA,PartBforthatfiscalyear, | dividedbythenumberofchildrenwithdisabilitiesinthejurisdictionof b theLEAandmultipliedbythenumberofchildrenwithdisabilities H participatingintheschoolwideprogram.Aschoolthatconsolidates . ~ IDEA,PartBfundsmayusethosefundsforanyactivitiesunderthe  d schoolwideplanbutmustcomplywithallotherrequirementsofIDEA,  J PartBtothesameextentitwouldifitdidnotconsolidatefundsunder  0 IDEA,PartBintheschoolwideprogram.XT݌    Ќ $  X(#  X(#$    XE.` hp x (# X(#E(Sections1114,1306(b)(4),and7115(c)ofESEA(20USC6314,6396(b)(4),and t  7425(c));Section613(a)(2)(D)ofIDEA(20USC1413(a)(2)(D));34CFRsections Z  200.25through200.29). @   AuditObjectives (LEA)Determinewhether(1)theschoolsoperatingschoolwide >  programswereeligibletodoso,and(2)theschoolwideprogramsincludedthecore $ elementsandcomponents.'>    X XE.` hp x (#X(#E SuggestedAuditProcedures (LEA) h  X E.` ` hp x (#X(#Ea. ` Forschoolsoperatingaschoolwideprogram,reviewrecordsandascertainifthe f schoolsmetthepovertyeligibilityrequirements. L b. ` Reviewtheschoolwideplanandascertainifitincludedtherequiredcore  elementsandcomponentsdescribedabove.  c. ` Reviewdocumentationtosupport: >  E. ` hp x (#