DEPARTMENT OF EDUCATION
CFDA 84.010 TITLE I, PART A of ESEA - IMPROVING BASIC PROGRAMS
OPERATED BY LOCAL EDUCATION AGENCIES (LEAs)
In June 1996, the U.S. Department of Education (ED) published a
Compliance Supplement which includes the compliance requirements
and associated audit guidance for the following programs: (1) Title
I, Grants to Local Educational Agencies (CFDA 84.010), (2) Migrant
Education - Basic State Grant Program (84.011), (3) Eisenhower Professional
Development State Grants (84.281), (4) Safe and Drug- Free Schools
- State Grants (84.186), (5) Innovative Education Program Strategies
(84.298), (6) Bilingual Education (84.288, 84.290, and 84.291),
and (7) Impact Aid (84.041). The Title I (CFDA 84.010) is also included
in Part 4 of this Supplement. Each of the other ED programs ultimately
will be included. In the interim, for audits under OMB circular
A-133, the agency program requirements (which would otherwise be
listed in Part 4 of this Supplement are provided in the ED Supplement.
However, when Title I (84.010) is a major program and none of the
other ED programs listed above are major, the guidance listed in
Part 4 of the Supplement should be used for audits of Title I.
The ED Supplement is currently available on the Internet at the
ED/OIG Non-Federal Audit Team Home Page (http://home.gvi.net/~edoig/)
under the listing for "Compliance Supplement for ESEA Programs."
Copies may also be requested by sending a fax to the ED/OIG Non-Federal
Audit Team at 202-205-8238.
I. PROGRAM OBJECTIVES
The Elementary and Secondary Education Act of 1965 (ESEA), as amended
by the Improving America's Schools Act (IASA) (P.L. 103-382), provided
for a comprehensive overhaul of programs providing more than $10
billion a year of Federal support for education, and restructured
how these programs provide services.
Title I, Part A of ESEA, as amended, provides supplemental financial
assistance to local educational agencies (LEAs) through State educational
agencies (SEAs) to improve the teaching and learning of children
who are at risk of not meeting challenging academic standards and
who reside in areas with high concentrations of children from low-income
II. PROGRAM PROCEDURES
ED provides Title I, Part A funds to each SEA through a statutory
formula based primarily on the number of children ages 5 through
17 from low-income families. This number is augmented by annually
collected counts of children ages 5 through 17 in foster homes,
locally-operated institutions for neglected or delinquent children,
and families above poverty that receive assistance under the Aid
to Families with Dependent Children (AFDC) program or the successor
State programs and adjusted to account for the cost of education
in each State. To receive funds, an SEA must submit to ED for approval
either (1) an individual State plan as provided in Section 1111
of the ESEA (20 USC 6311) or (2) a consolidated plan that includes
Part A, in accordance with Section 14302 of the ESEA (20 USC 8852).
The individual or consolidated plan, after approval by ED, remains
in effect for the duration of the State's participation in Title
I, Part A. The plan must be updated to reflect substantive changes.
SEAs allocate funds to LEAs based on the best available data that
reflect the current distribution of children from low-income families.
To receive Title I funds, LEAs must have on file with the SEA an
approved plan that includes descriptions of the general nature of
services to be provided, how program services will be coordinated
with the LEA's regular program of instruction, additional LEA assessments,
if any, used to gauge program outcomes, and strategies to be used
to provide professional development. An LEA may also include Part
A as part of a consolidated application submitted to the SEA under
Section 14305 of ESEA (20 USC 8855).
LEAs allocate Title I funds to eligible school attendance areas
based on the number of children from low-income families residing
within the attendance area. A school above 50 percent poverty may
use its Part A funds, along with other Federal, State, and local
funds, to operate a schoolwide program to upgrade the instruction
program in the whole school. Otherwise, a school operates a targeted
assistance program in which the school identifies students who are
failing, or most at risk of failing, to meet the State's challenging
performance standards and who have the greatest need. The school
then designs, in consultation with parents, staff, and the LEA,
an instructional program to meet the needs of those students.
Under Title XIV of ESEA, States, LEAs, and schools through an LEA
may request waivers from ED of many of the statutory and regulatory
requirements of programs authorized in ESEA, including Title I,
Part A. The Goals 2000: Educate America Act and the School to Work
Opportunities Act also provide waiver authority. In addition, under
the educational flexibility (Ed-Flex) demonstration program of Goals
2000, the Secretary delegated to some SEAs the authority to waive
certain Federal statutory or regulatory requirements affecting the
State and its districts and schools. In planning an audit, auditors
should ascertain from the audited SEA and LEAs whether ED (or an
SEA, if an Ed-Flex State) granted any written waivers to the State
or the LEAs.
III. COMPLIANCE REQUIREMENTS
A copy of the Improving America's Schools Act with a hypertext
index can be accessed on the Internet (http://www.ed.gov/legislation/ESEA/toc.html).
In developing the audit procedures to test compliance with
the requirements for a Federal program, the auditor should first
look to Part 2, Matrix of Compliance Requirements, to identify which
of the 14 types of compliance requirements described in Part 3 are
applicable and then look to Parts 3 and 4 for the details of the
A. Activities Allowed or Unallowed
1. Allowability of Specific Transactions and Activities
a. LEAs (Targeted assistance programs only. See special tests
and provisions for schoolwide programs.)
In a targeted assistance school, funds available under Part A may
be used only for programs that are designed to help participating
children meet the State's student performance standards expected
of all children. Allowable activities in these schools include,
but are not limited to, instructional programs, counseling, mentoring,
other pupil services, college and career awareness and preparation,
services to prepare students for the transition from school to work,
services to assist preschool children in the transition to elementary
school programs, parental involvement activities, and professional
staff development. If health, nutrition, and other social services
are not otherwise available from other sources to participating
children, Part A funds may be used to provide such services. The
LEA's plan will provide a description of the general nature of the
services to be provided with Part A funds. However, each Title I
school determines the actual program it will provide (Title I, Section
1115 of ESEA (20 USC 6315)).
The auditor should be aware that Part A funds may also be used
for administrative costs or contributions to a consolidated administrative
cost pool, LEA contributions to a consolidated services project
(when approved), and provision of equitable services to eligible
private school children and their teachers. The testing of these
requirements is included elsewhere in this compliance supplement.
SEAs can use funds to provide subgrants to LEAs, for State administration,
and for program improvement projects in accordance with the State
plan (Title I, Part A, Sections 1003, 1111 and 1603) (20 USC 6303,
6311, and 6513).
2. Allowable Activities for Subrecipients
a. Approval of LEA plans
The LEA's plan will provide a description of the general nature
of the services to be provided with Part A funds. However, each
Title I school determines the actual program it will provide (Title
I, Part A, Section 1112 (b)(7)) (20 USC 6312(b)(7)).
B. Allowable Costs/Cost Principles
If indirect costs are claimed, a "restricted rate" must be used
(34 CFR section 76.563). The details of calculating a restricted
rate are contained in 34 CFR sections 76.564 through 76.569.
C. Cash Management
The Department of Education is in the process of implementing a
new comprehensive financial management system (EDCAPS) which will
result in a change to its drawdown and reporting requirements. In
essence, this will require drawdown and reporting on an individual
award basis rather than on a grantee-wide pool basis. This means
for example, that if a grantee draws down $1000 specifically for
the Title I program, the funds must be expended within the required
time frame on the Title 1 program. This change is expected to occur
during the second quarter of Federal fiscal year 1998.
1. Eligibility for Individuals
a. Eligible Children (LEA targeted assistance programs only
- see Special Tests and Provisions for schoolwide programs)
Title I, Part A funds are to be used to provide services and benefits
to eligible children residing or enrolled in eligible school attendance
areas. Once funds are allocated to eligible school attendance areas
(see E.2.a and E.2.b. below), a school operating a targeted assistance
program must use Title I funds only for programs that are designed
to meet the needs of children identified by the school as failing,
or most at risk of failing, to meet the State's challenging student
performance standards. In general, eligible children are identified
on the basis of multiple, educationally-related, objective criteria
established by the LEA and supplemented by the school. Children
who are economically disadvantaged, children with disabilities,
migrant children, and limited English proficient (LEP) children
are eligible for Part A services on the same basis as other children
who are selected for services. In addition, certain categories of
children are considered at risk of failing to meet the State's student
performance standards and are thus eligible for Title I services
because of their status. Such children include: children who are
homeless; children who participated in a Head Start or Even Start
program at any time in the two preceding years; children who received
services under a program for youth who are neglected, delinquent,
or at risk of dropping out under Title I, Part D (or its predecessor
authority) at any time in the two preceding years; and, children
who are in a local institution for neglected or delinquent children
or attending a community day program. From the pool of eligible
children, a targeted assistance school selects those children who
have the greatest need for special assistance to receive Part A
services (Title I, Section 1115 of ESEA (20 USC 6315)).
2. Eligibility for Group of Individuals or Area of Service
a. School Attendance Areas (LEAs with either Schoolwide programs
or targeted assistance programs)
An LEA must determine which school attendance areas are eligible
to participate in Part A. A school attendance area is generally
eligible to participate if the percentage of children from low-income
families is at least as high as the percentage of children from
low-income families in the LEA as a whole or above 35 percent poverty.
An LEA may also designate and serve a school in an ineligible attendance
area if the percentage of children from low-income families enrolled
in that school is equal to or greater than the percentage of such
children in a participating school attendance area. When determining
eligibility, an LEA must select a poverty measure from among the
following data sources: (1) the number of children ages 5-17 in
poverty counted in the most recent census; (2) the number of children
eligible for free and reduced priced lunches; (3) the number of
children in families receiving AFDC or the successor State program;
(4) the number of children eligible to receive Medicaid assistance;
or (5) a composite of these data sources. The LEA must use that
measure consistently across the district to rank all its school
attendance areas according to their percentage of poverty.
An LEA must serve eligible schools or attendance areas in rank
order according to their percentage of poverty. An LEA must serve
those areas or schools above 75 percent poverty, including any middle
or high schools, before it serves any with a poverty percentage
below 75 percent. After an LEA has served all areas and schools
with a poverty rate above 75 percent, the LEA may serve lower-poverty
areas and schools either by continuing with the district-wide ranking
or by ranking its schools below 75 percent poverty according to
grade-span grouping (e.g., K-6, 7-9, 10-12). If an LEA ranks by
grade span, the LEA may use the district-wide poverty average or
the poverty average for the respective grade span grouping.
An LEA may elect not to serve an eligible area or school that has
a higher percentage of children from low-income families if: (1)
the school meets the Title I comparability requirements; (2) the
school is receiving supplemental State or local funds that are spent
according to the requirements in sections 1114 or 1115 of Title
I; and (3) the State and local funds expended in the area or school
equal or exceed the amount that would be provided under Part A.
An LEA with an enrollment of less than 1000 students or with only
one school per grade span is not required to rank its school attendance
areas (Title I, Section 1113(a)-(b) of ESEA (20 USC 6313(a)-(b));
34 CFR section 200.28(a) (3)).
b. Allocating funds to eligible school attendance areas and
An LEA must allocate Part A funds to each participating school
attendance area or school, in rank order, on the basis of the total
number of children from low-income families residing in the area
or attending the school. In calculating the total number of children
from low-income families, the LEA must include children from low-income
families who reside in a participating area and attend private schools,
using the same poverty data, if available, as the LEA uses to count
public school children. If the same data are not available, the
LEA may use comparable data. If complete actual poverty data are
not available on private school children, an LEA may extrapolate,
from actual data on a representative sample of private school children,
the number of children from low-income families who attend private
schools. An LEA may also correlate sources of data. If an LEA selects
a public school to participate on the basis of enrollment, rather
than because it serves an eligible school attendance area, the LEA
must, in consultation with private school officials, determine an
equitable way to count poor private school children in order to
calculate the amount of Title I funds available to serve private
If an LEA serves any attendance area with less than a 35 percent
poverty rate, the LEA must allocate to all its
participating areas an amount per poor child that equals at least
125 percent of the LEA's Part A allocation per poor child. (An LEA's
allocation per poor child is the total LEA allocation under subpart
2 of Part A divided by the number of poor children in the LEA according
to the poverty measure selected by the LEA to identify eligible
school attendance areas. The LEA then multiplies this per-child
amount by 125 percent.) If an LEA serves only areas with a poverty
rate greater than 35 percent, the LEA must allocate funds, in rank
order, on the basis of the total number of poor children in each
area or school, but is not required to allocate a per-pupil amount
of at least 125 percent. An LEA may not allocate a higher amount
per child to areas or schools with lower percentages of poverty
than to areas with higher percentages. If an LEA serves areas or
schools below 75 percent poverty by grade span groupings, the LEA
may allocate different amounts per poor child for different grade
span groupings as long as those amounts do not exceed the amount
per poor child allocated to any area or school above 75 percent
poverty. Amounts per poor child within grade spans may also vary
as long as the LEA allocates higher amounts per poor child to higher
poverty areas or schools within the grade span than it allocates
to lower poverty areas or schools.
The LEA must reserve the amounts generated by poor private school
children who reside in participating public school attendance areas
to provide services to eligible private school children (Title I,
Section 1113(c) of ESEA (20 USC 6313(c)); 34 CFR sections 200.27
3. Eligibility for Subrecipients - Not Applicable
G. Matching, Level of Effort, Earmarking
1. Matching - Not applicable
2.1 Level of Effort - Maintenance of Effort
An LEA may receive funds under an applicable program only if the
SEA finds that the combined fiscal effort per student or the aggregate
expenditures of the LEA from State and local funds for free public
education for the preceding year was not less than 90 percent of
the combined fiscal effort or aggregate expenditures for the second
preceding year, unless specifically waived by ED.
For purposes of Title I, Part A, an LEA's expenditures from State
and local funds for free public education include expenditures for
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. For school years prior to 1997-98,
they do not include the following expenditures: (1) any expenditures
for community services, capital outlay, and debt service; and, (2)
any expenditures made from funds provided by the Federal Government
for which the LEA is required to account to the Federal Government
directly or through the SEA. For school year 1997-98 and subsequent
school years, they also do not include supplementary expenses as
a result of a Presidentially-declared disaster and any expenditures
made from funds provided by the Federal Government.
If an LEA fails to maintain fiscal effort, the SEA must reduce
the amount of the allocation of funds under Title I, Part A in any
fiscal year in the exact proportion by which the LEA fails to maintain
effort by falling below 90 percent of both the combined fiscal effort
per student and aggregate expenditures (using the measure most favorable
to the LEA (Section 14501 of ESEA (20 USC 8891))).
In some States, the SEA prepares the calculation from information
provided by the LEA. In other States, the LEAs prepare their own
calculation. The audit procedures contained in the Part 3, section
G2.1 should be adapted to fit the circumstances. For example, if
auditing the LEA and the LEA does the calculations, the auditor
should perform steps a., b. and c. If auditing the LEA and the SEA
does the calculation, the auditor should perform step c. for the
amounts reported to the SEA. If auditing the SEA and the SEA performs
the calculation, the auditor should perform steps a. and b. and
amend step c. to trace amounts to the LEA reports. If auditing the
SEA and the LEA performs the calculation, the auditor should performs
step a. and, if the requirement was not met, determine if the funding
was reduced appropriately.
2.2 Level of Effort - Supplement not Supplant
An SEA and LEA may use program funds only to supplement and, to
the extent practical, increase the level of funds that would, in
the absence of the Federal funds, be made available from non-Federal
sources for the education of participating students. In no case
may an LEA use Federal program funds to supplant funds from non-Federal
sources (Title I, Part A, Section 1120A(b) (20 USC 6322(b)).
In the following instances, it is presumed that supplanting has
- The SEA or LEA used Federal funds to provide services that the
SEA or LEA was required to make available under other Federal laws
or State or local laws.
- The SEA or LEA used Federal funds to provide services that the
SEA or LEA provided with non-Federal funds in the prior year.
- The SEA or LEA used Federal funds to provide services for participating
children that the SEA or LEA provided with non-Federal funds for
These presumptions are rebuttable if the SEA or LEA can demonstrate
that it would not have provided the services in question with non-Federal
funds had the Federal funds not been available.
An SEA and LEA may exclude, from determinations of compliance with
the supplement, not supplant requirement, supplemental State or
local funds spent in any school attendance area or school for programs
that meet the intent and purposes of Title I, Part A (Title I, Part
A of ESEA, Section 1120A(d) (20 USC 6322(d)).
When auditing a schoolwide program: In a Title I schoolwide
program, a school is not required to provide supplemental services
to identified children. However, the school may only use Federal
funds to supplement the amount of funds that would in the absence
of the Federal funds be made available to the school from non-Federal
sources, including funds needed to provide services required by
law for children with disabilities and children with LEP (Title
I, Part A, Section 1114(a)(3) (20 USC 6314(a)(3))).
An SEA may reserve for the administration of Title I programs no
more than one percent from each of the amounts allocated to the
State under Title I, Part A (except Capital Expenses under section
1002(e) and School Improvement funds under section 1002(f))(20 USC
6302), MEP (Title I, Part C)(20 USC 6391), and Title I, Part D,
Subpart 1 (State Agency Neglected or Delinquent Program)(20 USC
6421). The one percent reservation is a maximum. An SEA may reserve
less than one percent from each of Parts A, C, and D (Subpart 1).
Moreover, an SEA does not need to reserve the same percentage from
each part. However, the amounts reserved from Part A Basic, Concentration,
and Targeted Grants must be proportionate. If the amount reserved
through this process totals less than $400,000, an SEA may reserve
up to $400,000 for State administration. For any SEA reserving $400,000,
the amount taken from each of Title I, Parts A, C, and D (Subpart
1) must be proportionate. An SEA is not required to use the same
proportion of funds reserved from Parts A, C, and D for administrative
activities related to those Parts.
An LEA may, with the approval of the SEA, also consolidate local
administrative funds under applicable programs. The amount set aside
under each covered program for consolidation may not be more than
the percentage, if any, authorized for local administration under
that program. In addition, an LEA may not use any other funds under
the programs included in the consolidation for administration. Each
SEA shall, in collaboration with the LEAs in the State, establish
procedures for responding to requests from LEAs to consolidate administrative
An SEA or LEA that consolidates administrative funds is not required
to keep separate records by individual programs to account for costs
relating to the administration of programs included in the consolidation
(Sections 14201 and 14203 of ESEA (20 USC 8821 and 8823)).
b. Coordinated services projects (LEAs)
An LEA, upon application to and approval by ED, may use a total
of not more than 5 percent of its funds received under ESEA (including
Title I, Part A) to develop, implement, or expand a coordinated
services project. ED will notify an SEA of its approval of any coordinated
services projects within the State.
Funds reserved for a coordinated services project may be used for
any activity relevant to the project, except that those funds may
not be used for the direct provision of health or health-related
services. Acceptable uses of funds may include, but are not limited
to, hiring a coordinator, making minor renovations to existing buildings,
purchasing basic operating equipment, improving communications and
information sharing among participating entities, teacher and staff
training, and conducting a statutorily-required needs assessment.
Funds used for this purpose must be obligated within the period
of availability of funds for the program from which funds were taken
(Title XI and Section 14206(b) of ESEA (20 USC 8401 et seq. and
H. Period of Availability of Federal Funds
LEAs and SEAs must obligate funds during 27 months, extending from
July 1 through September 30 of the second following fiscal year.
This maximum period includes a 15 month period of initial availability
plus a 12 month period for carryover. For example, funds from the
fiscal year (FY) 1995 appropriation initially became available on
July 1, 1995, and can be obligated by the grantee and subgrantee
through September 30, 1997.
In addition, an LEA that receives $50,000 or more cannot carryover
more than 15 percent of the funds awarded after the initial 15 months
of availability. An SEA may grant a waiver of the percentage limitation
once every three years if the SEA determines that the request is
reasonable and necessary. An SEA may also grant a waiver in any
fiscal year in which supplemental appropriations for Title I become
available for obligation (Title I, Section 1127 of ESEA (20 USC
Funds transferred to consolidated administrative cost pools and
coordinated services projects are subject to the above requirements.
Because expenditures in a consolidated administrative fund or a
coordinated services project are not tracked by the Federal program,
an SEA or LEA may use a first-in, first-out method for determining
when funds were obligated.
Definition of Obligation: An obligation is not necessarily a liability
in accordance with Generally Accepted Accounting Principles. When
an obligation occurs (is made) depends on the type of property or
services that the obligation is for:
|IF AN OBLIGATION IS FOR --
||THE OBLIGATION IS MADE --
|(a) Acquisition of real or personal property.
||On the date on which the State or subgrantee makes a binding
written commitment to acquire the property.
|(b) Personal services by an employee of the State or subgrantees.
||When the services are performed.
|(c) Personal services by a contractor who is not an employee
of the State or subgrantees.
||On the date on which the State or subgrantee makes a binding
written commitment to obtain the services.
|(d) Performance of work other than personal services.
||On the date on which the State or subgrantee makes a binding
written commitment to obtain the work.
|(e) Public utility services.
||When the State or subgrantee receives the services.
||When the travel is taken.
|(g) Rental of real or personal property.
||When the State or subgrantee uses the property.
|(h) A preagreement cost that was properly approved by the
State under the applicable cost principles.
||On the first day of the subgrant period.
The act of an SEA or other grantee awarding Federal funds to an
LEA or other eligible entity within a State does not constitute
a final obligation. Also, an obligation of Federal funds only occurs
if the obligation is for an allowable program cost (GEPA Section
421(b)) (20 USC 1225(b)) (34 CFR sections 76.704 through 76.707)).
1. Financial Reporting
a. SF-269(a), Financial Status Report (short form)- Applicable
b. SF-270, Request for Reimbursement - Not Applicable
c. SF-271, Outlay Report and Request for Reimbursement for
Construction Program - Not applicable
d. SF-272, Federal Cash Transaction Report - Not applicable
e. LEAs and other subrecipients are generally required to report
financial information to the pass-through entity that is similar
to the information that recipients report to ED. These reports should
be tested during audits of LEAs.
2. Performance Reporting - Not Applicable
3. Special Reporting
State Per Pupil Expenditure (SPPE) Data (Audits of LEAs and
SEAs) (OMB No. 1850-0067)
Each year, an SEA must submit its average State per pupil expenditure
(SPPE) data to the National Center for Education Statistics. (The
SPPE data are used by ED to make allocations under several ESEA
programs, including Title I, Part A.) SPPE data are reported on
the National Public Education Finance Survey. SPPE data comprise
the State's annual current expenditures for free public education,
less certain designated exclusions, divided by the State's average
daily attendance. The SEA's report is based on data submitted to
it by the LEAs in the State.
Current expenditures to be included are those for free public education,
including 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. Current expenditures to be excluded
are those for community services, capital outlay, debt service,
and expenditures from funds received under Title I and Title VI
of ESEA (Section 14101(11) of ESEA) (20 USC 8801, definition 11).
Except when provided otherwise by State law, average daily attendance
generally means the aggregate number of days of attendance of all
students during a school year divided by the number of days school
is in session during such school year. For purposes of ESEA, average
daily membership (or similar data) can be used in place of average
daily attendance in States that provide State aid to LEAs on the
basis of average daily membership or such other data. When an LEA
in which a child resides makes a tuition or other payment for the
free public education of the child in a school of another LEA, the
child is considered to be in attendance at the school of the LEA
making the payment, and not at the school of the LEA receiving the
payment. Similarly, when an LEA makes a tuition payment to a private
school or to a public school of another LEA for a child with disabilities,
the child is considered to be in attendance at the school of the
LEA making the payment.
N. Special Tests And Provisions
1. Participation of Private School Children (All grantees)
Compliance Requirement - An SEA, LEA, or any other
educational service agency (or consortium of such agencies) receiving
financial assistance must provide eligible private school children
and their teachers or other educational personnel with equitable
services or other benefits under these programs. Before an agency
or consortium makes any decision that affects the opportunity of
eligible private school children, teachers, and other educational
personnel to participate, the agency or consortium must engage in
timely and meaningful consultation with private school officials.
The LEA must reserve the amounts generated by poor private school
children who reside in participating public school attendance areas
to provide services to eligible private school children (Section
14503 of ESEA (20 USC 8893); Title I, Section 1120 of ESEA (20 USC
6321); 34 CFR sections 200.10 through 200.13; and Title VI, Section
6402 (20 USC 7372)).
Audit Objective - Determine whether (1) the LEA,
SEA, or other agency receiving ESEA funds has conducted timely consultation
with private school officials to determine the kind of educational
services to provide to eligible private school children, (2) the
required amount was set aside for private school children, and (3)
the planned services were provided.
Suggested Audit Procedures
a. Verify, by reviewing minutes of meetings or other appropriate
documents, that the SEA or LEA conducted timely consultation with
private school officials in making their determinations and set
aside the required amount for private school children.
b. Review program expenditure and other records to ascertain if
educational services that were planned actually were provided.
2. Comparability (SEA and LEA)
Compliance Requirement - An LEA may receive funds
under Title I, Part A only if State and local funds will be used
in participating schools to provide services that, taken as a whole,
are at least comparable to services that the LEA is providing in
schools not receiving Title I, Part A funds. An LEA is considered
to have met the statutory comparability requirements if it has implemented:
(1) an LEA-wide salary schedule; (2) a policy to ensure equivalence
among schools in teachers, administrators, and other staff; and
(3) a policy to ensure equivalence among schools in the provision
of curriculum materials and instructional supplies. An LEA may also
use other measures to determine comparability, such as comparing
the average number of students per instructional staff or the average
staff salary per student in each school receiving Title I, Part
A funds with those in schools that do not receive Title I, Part
A funds. If all schools are served by Title I/Part A, an LEA must
use State and local funds to provide services that, taken as a whole,
are substantially comparable in each school. Determinations may
be made on either a district-wide or grade-span basis.
An LEA may exclude schools with fewer than 100 students from its
comparability determinations. The comparability requirement does
not apply to an LEA that has only one school for each grade span.
An LEA may exclude from determinations of compliance with this requirement
State and local funds expended for: (1) bilingual education for
children with LEP; (2) excess costs of providing services to children
with disabilities, as determined by the LEA; and (3) supplemental
State or local funds for programs that meet the intent and purposes
of Title I/ Part A (Title I, Section 1120A(c) (20 USC 6322(c)).
Each LEA must develop procedures for complying with the comparability
requirements and must maintain records that are updated biennially
documenting compliance with the comparability requirements.
The SEA, however, is ultimately responsible for ensuring that LEAs
remain in compliance with the comparability requirement (Title I,
Section 1120A(c) of ESEA) (20 USC 6322(c)).
Audit Objective (SEA) - Determine whether the
SEA is determining if LEAs are complying with the comparability
Suggested Audit Procedures (SEA)
For a sample of LEAs, review SEA records that document SEA review
of LEA compliance with the comparability requirements.
Audit Objective (LEA) - Determine whether the
LEA has developed procedures for complying with the comparability
requirements and maintained records that are updated at least biennially
and which document compliance with the comparability requirements.
Suggested Audit Procedures (LEA)
a. Through inquiry and review, ascertain if the LEA has developed
procedures and measures for complying with the comparability requirements.
b. Review LEA comparability documentation to ascertain (1) if it
has been updated within two years of the end of the audit period
and (2) that it documents compliance with the comparability requirements.
c. Test comparability data to supporting records.
3. Schoolwide programs (LEA)
Compliance Requirement - A school participating
under Title I, Part A may, in consultation with its LEA, use Title
I, Part A funds to upgrade the school's entire educational program
in a schoolwide program. To qualify, at least 50 percent of the
children enrolled in the school or residing in the school attendance
area for the initial year of the schoolwide program must be from
low-income families. (For school year 1995-96, the eligibility poverty
threshold was 60 percent.) To operate a schoolwide program, a school
must develop, in consultation with the LEA and its school support
team or other technical assistance provider, a comprehensive plan
to upgrade its total instructional program.
Each schoolwide program must include a number of specific components
that are provided in the statute and regulations. The major components
include: (1) a comprehensive needs assessment of the entire school
to determine the performance of its children in relation to the
State's challenging content and performance standards; (2) schoolwide
reform strategies that are based on effective means of improving
the achievement of children and that address the needs of all children
in the school; (3) instruction by highly qualified professional
staff; (4) professional development for teachers and other staff;
and, (5) strategies to increase parental involvement.
In addition to funds and services available under Title I, Part
A, a schoolwide program school may use funds it receives under any
Federal education program administered by the Secretary (other than
programs under the Individuals with Disabilities Education Act (IDEA)
and a few other programs listed in the Federal Register notice
published on September 21, 1995 (60 FR 49174)) to support its schoolwide
program. If funds from other Federal education programs are combined,
a schoolwide program does not need to meet most of the statutory
and regulatory requirements of those programs, as long as the intent
and purposes of those programs are met. A schoolwide program school
and its LEA, however, must still comply with requirements applicable
to those programs relating to: health and safety; civil rights;
gender equity; parental involvement; equitable participation of
private school children, teachers, and other educational personnel;
maintenance of effort; and comparability.
In combining funds, a schoolwide program school must also ensure
that its schoolwide program addresses the needs of children who
are members of the target population of any Federal program that
is included in the schoolwide program. When combining funds or services
received under the Title I, Part C, Migrant Education Program, a
schoolwide program must: (1) in consultation with parents of migratory
children or organizations representing those parents, address the
identified needs of migratory children that result from the effects
of their migratory lifestyle or are needed to permit migratory children
to participate effectively in schools, and (2) document that services
addressing those needs have been provided. Similarly, a schoolwide
program must have the approval of the Indian parent advisory committee
established in section 9114(c)(4) of ESEA (20 USC 7814(c)(4)) before
funds received under the Title IX, Part A, Subpart 1 (Indian Education)
program can be combined.
A school operating a schoolwide program does not have to: (1) show
that Federal funds used within the school are paying for additional
services that would not otherwise be provided; (2) demonstrate that
Federal funds are used only for specific target populations; or
(3) separately track Federal program funds once they reached the
school. Such a school, however, is required to use funds available
under Title I and under any other Federal programs that are combined
to support its schoolwide program to supplement the total amount
of funds that would, in the absence of the Federal funds, be made
available from non-Federal sources for that school, including funds
needed to provide services that are required by law for children
with disabilities and children with limited-English proficiency
(Title I, Part A, Section 1114 (20 USC 6314); MEP, Section
1306(b)(3) of ESEA (20 USC 6396(b)(3)); 34 CFR section 200.8; and
60 FR 49174).
Audit Objective - Determine whether: (1) the schools
operating schoolwide programs were eligible to do so; and, (2) the
schoolwide programs were based on a comprehensive plan that included
the required elements.
Suggested Audit Procedures
a. For schools operating a schoolwide program, review records and
ascertain if the school met the poverty eligibility requirements.
b. Review the procedures and documentation used by the LEA to distribute
State and local funded resources to each schoolwide program school
and compare to the process used for non-schoolwide schools.
c. Review the schoolwide plan and ascertain if there is documentation
- Consultation with parents including, when MEP funds are combined,
the parents of migratory children or organization representing those
parents; and, when Title IX, Part A, Subpart 1(Indian Education)
are combined, approval by the Indian parent advisory committee.
- Identification of what appear to be schoolwide reform strategies
for improving the achievement of children and addressing how the
program will meet the needs of all children in the school, particularly
the needs of children who are members of the target population of
any program included in the schoolwide program.
d. If MEP funds are combined in the schoolwide program, ascertain
if there is documentation that services addressing the identified
needs of migratory children were provided by the schoolwide program.