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Guidance: 2013-14 Title I Part D LEA Allocation

Consolidated Application, Winter Release program guidance for the 2013-14 Title I, Part D, Local Education Agency (LEA) Allocation.
Frequently Asked Questions and Answers

Q. What is a centralized service?
A. A centralized service is an activity funded by a school allocation but administered by the local educational agency central office. The activity would be included in the 15 percent if it is an administrative cost or would be part of the 85 percent if it is a direct service to students. Examples of centralized services include:

Q. What are the maximum administrative costs that can be charged to Title I?
A. Districts have a set amount of funds for indirect costs, which are a type of administrative cost. Administrative costs, including those funded through centralized services, school level administrative costs, and indirect costs may not exceed 15 percent. Expenditures for personnel engaged in district administrative or planning activities can be included in the administrative costs charged to Title I. Also included are expenditures for salaries and benefits for:

Q. What is the definition of a direct service to students?
A. Direct services are those that are delivered at the school site where the student is the direct recipient or beneficiary of the services. Expenditures for personnel are justified as direct service and for inclusion in the 85 percent if the personnel are providing direct, hands-on instruction to students or the services being provided are so integral to the instructional program that not to provide the services would affect the quality of the instruction itself and the academic success of students.

For example, an LEA may include in the 85 percent, the salaries and benefits of such certificated personnel as specialist or resource teachers, school nurses, school librarians, school counselors, classified instructional aides, and school program administrators, to the extent that they provide direct instruction or conduct professional development to meet specific Title I student needs.

Similarly, allowable expenditures for operating expenses and equipment when the purposes meet the specific needs of eligible Title I students might include:

Q.  When does an LEA identify the funds that are to be set aside for indirect costs?
A. Indirect costs are calculated before district reservations and before funds are allocated to schools. Since the calculation is just an estimate, the actual indirect costs are subtracted at the end of the year based on how much funding was expended. For example, an LEA allowed a three percent indirect cost rate out of the total Title I annual allocation would budget for it on the Title I, Part A LEA Allocation page of the Consolidated Application, however the LEA would only charge indirect costs equal to three percent of its eligible expenditures at the end of the year.

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