An LEA that consolidates administrative funds for any fiscal year shall not use any other funds under the programs included in the consolidation for administration for that fiscal year (ESEA Section 9203[c]). Indirect costs are a part of costs of administration; thus, indirect costs pertaining to programs included in the consolidation may only be paid out of the funds available for the administrative cost pool. For example, if a program must budget and expend at least 85 percent on direct services to pupils, then the total allowable for administration (e.g., program administration plus indirect costs) cannot exceed 15 percent.
Programs that may be included in the consolidation of administrative funds are:
Code Structure (SACS)
|3010||Title I, Part A (Basic and Neglected)|
|3060||Title I, Part C (Migrant Education)|
|3025||Title I, Part D (Delinquent)|
|4035||Title II, Part A (Teacher Quality)|
|4036||Title II, Part A (Administrator Training)|
|4045||Title II, Part D (Enhancing Education Through Technology)|
|4201||Title III (Immigrant Students)|
|4203||Title III (LEP Students) – two percent maximum|
|4124||Title IV, Part B (21st Century Community Learning Centers)|
The consolidated funds may be used for the administration of the programs included in the consolidation and for uses, at the school district and school levels, designed to enhance the effective and coordinated use of funds under those programs, including such activities as:
- The coordination of the ESEA programs with other federal and non-federal programs;
- The establishment and operation of peer-review mechanisms under ESEA;
- The administration of Title IX of ESEA (General Provisions);
- The dissemination of information regarding model programs and practices;
- Technical assistance under any ESEA program;
- Training personnel engaged in audit and other monitoring activities.
An LEA that consolidates administrative funds may treat the consolidated administrative cost pool as a single cost objective; therefore, it is not required to keep separate records, by individual programs, to account for costs relating to the administration of the programs included in the consolidation. Use SACS Resource Code 3155 to account for consolidated administrative funds.
Expenditures of the consolidated funds (Resource 3155) will be distributed (charged) to the contributing programs and will be reported as expenditures of those programs; the distribution will not necessarily be in the same proportion as the amounts contributed (or that could have been contributed) by the programs to the pool, as long as the amount distributed to a program is within the allowable percentage or maximum amount for administration for that program and the grant amount is not exceeded after the distribution. The distribution may be done at any time during the year; any undistributed expenditures at the end of the year will be distributed to the participating programs so that Resource 3155 has net zero expenditures at the end of the year.
For further accounting information please refer to the CSAM, Procedure 780, Consolidation of NCLB Administrative Funds (Posted 12-Oct-2012).