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Letter Head: Jack O'Connell, State Superintendent of Public Instruction, Phone number 916-319-0800

March 10, 2006

Attachment for Letter: Consolidation of No Child Left Behind Funds for Administration (Dated 10-Mar-2006)

Illustrative Accounting Entries for Consolidation of Administrative Funds

The following entries illustrate the accounting and budgeting for consolidation of administrative funds using the Standardized Account Code Structure (SACS).

  1. Expenditures for administration are charged to Resource 3155, NCLB: Consolidated Administrative Funds, in combination with Function 2150, Instructional Administration of Special Projects (or Function 2100, Supervision of Instruction*), and the appropriate expenditure object codes:

    Accounts
    Debit (Dr.)
    Credit (Cr.)
    01-3155-0000-2150-1300
    $ 900
    N/A
    01-3155-0000-2150-3401
    $ 250
    N/A
    01-3155-0000-2150-4300
    $130
    N/A
    01-3155-0000-2150-9110
    N/A
    $ 1,280

    *Note: The illustrations show Function 2150 only.

  2. At the end of the year, or at whatever intervals the LEA deems appropriate, the undistributed accumulated costs in Resource 3155 are distributed to the participating programs.

    Assume that the undistributed costs consisted of the following:

    Account Amount
    1300 - Certificated Supervisors' and Administrators' Salaries
    $ 5,500
    2400 - Clerical, Technical, and Office Staff Salaries
    $ 8,900
    3401 - Health & Welfare Benefits, Certificated Positions
    $ 2,000
    3402 - Health & Welfare Benefits, Classified Positions
    $ 2,300
    4300 - Materials and Supplies
    $ 700
    4400 - Noncapitalized Equipment
    $ 3,000
    Total
    $ 22,400

    Note that at this point, Resource 3155 has a negative cash balance of $22,400.

    The LEA has decided to distribute these expenditures to the following programs:

    Account Amount
    Title I, Part A (Resource 3010)
    $16,300
    Title I, Part C (Resource 3060)
    $ 3,500
    Title I, Part D (Resource 3025)
    $ 2,300
    Title II, Part A (Resource 4035)
    $ 300
    Total
    $ 22,400

    The distribution is recorded using Function 2150, Instructional Administration of Special Projects, in combination with Object 5710, Transfers of Direct Costs. The corresponding transfer of cash between resources is done at the same time.

    Accounts
    Dr.
    Cr.
    01-3010-0000-2150-5710
    $ 16,300
    N/A
    01-3060-0000-2150-5710
    $ 3,500
    N/A
    01-3025-0000-2150-5710
    $ 2,300
    N/A
    01-4035-0000-2150-5710
    $ 300
    N/A
    01-3155-0000-2150-5710
    		N/A
    $ 22,400
    01-3155-0000-0000-9110
    $ 22,400
    N/A
    01-3010-0000-0000-9110
    N/A
    $ 16,300
    01-3060-0000-0000-9110
    N/A
    $ 3,500
    01-3025-0000-0000-9110
    N/A
    $ 2,300
    01-4035-0000-0000-9110
    N/A
    $ 300

    Note that after the distribution of costs to the participating programs, Resource 3155 has zero net expenditures and a zero cash balance, but the details of the accumulated costs and the distribution to the participating programs are retained.

  3. Indirect costs for the participating programs are calculated by applying the allowable indirect cost rate to each program's eligible direct costs, including the administrative costs distributed from Resource 3155. The calculated indirect cost amounts are charged to the programs. The corresponding transfer of cash between resources is done at the same time.


    Accounts
    Dr.
    Cr.
    01-3010-0000-7210-7310
    $ 5,100
    		N/A
    01-3060-0000-7210-7310
    $ 2,050
    		N/A
    01-3025-0000-7210-7310
    $ 1,200
    		N/A
    01-4035-0000-7210-7310
    $ 550
    		N/A
    01-0000-0000-7210-7310
    		N/A
    $ 8,900 
    01-0000-0000-0000-9110
    $ 8,900
    N/A
    01-3010-0000-0000-9110
    		N/A
    $ 5,100
    01-3060-0000-0000-9110
    		N/A
    $ 2,050
    01-3025-0000-0000-9110
    		N/A
    $ 1,200
    01-4035-0000-0000-9110
    		N/A
    $ 550

  4. The budgets for Resource 3155 and the participating programs must provide for the costs anticipated to be incurred in each program. In the above example, the budget for Resource 3155, Function 2150, would look like this:

    Account Amount
    1300 – Certificated Supervisors’ and Administrators’ Salaries
    $ 5,500
    2400 – Clerical, Technical and Office Staff Salaries
    $ 8,900
    3401 – Health & Welfare Benefits, Certificated Positions
    $ 2,000
    3402 – Health & Welfare Benefits, Classified Positions
    $ 2,300
    4300 – Materials and Supplies
    $ 700
    4400 – Noncapitalized Equipment
    $ 3,000
    5710 – Transfers of Direct Costs
    $ (22,400)
    Total
    $ 0

    The budget for each participating program would include an amount in Function 2150, Object 5710. The combined amounts budgeted in Function 2150, Object 5710 in the participating programs would total $22,400.

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