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Presented by Leigh M. Manasevit, [email protected]
Brustein & Manasevit, PLLCFall Forum 2012
Maintenance of Effort, Comparability and Supplement Not Supplant Under Title I
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Maintenance of Effort
Most Directly Affected by Declining Budgets
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MOE
The combined fiscal effort per student or the aggregate expenditures of the LEA
From state and local funds
From preceding year must not be less than 90% of the second preceding year
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MOE: Preceding Fiscal Year
Need to compare final financial dataCompare “immediately” PFY to
“second” PFY EX: To receive funds available July
2013, compare 2011-12 school year to 2010-11 school year
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MOE: Failure under NCLB5
SEA must reduce amount of allocation in the exact proportion by which LEA fails to maintain effort below 90%
Reduce all applicable NCLB programs, not just Title I
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Aggregate expenditures
Amount per student
SY 10-11 1,000,000 6,100
SY 11-12 must spend 90%
900,000 5,490
11-12Actual amount
850,000 5,200
Shortfall -50,000 -290
Percent shortfall/ reduction
-5.6% -5.3%**
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Analysis for 13-14
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MOE: Waiver
USDE Secretary may waive if:Exceptional or uncontrollable
circumstances such as natural disaster
ORPrecipitous decline in financial
resources of the LEA
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ED WaiversTo State to Grant to LEAs
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Comparability
How is this calculated and why does it matter?
Legal Authority:Title I Statute: §1120A(c)
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General Rule- §1120A(c)An LEA may receive Title I Part A funds
only if it uses state and local funds to provide services in Title I schools that, taken as a whole, are at least comparable to the services provided in non-Title I schools.
If all are Title I schools, all must be “substantially comparable.”
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Timing IssuesGuidance: Must be annual determination
YET, LEAs must maintain records that are updated at least “biennially” (1120A(c)(3)(B))
Review for current year and make adjustments for current year
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Written Assurances LEA must file with SEA written assurances of
policies for equivalence: LEA-wide salary schedule Teachers, administrators, and other staff Curriculum materials and instructional supplies
Must keep records to document implemented and “equivalence achieved”
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May also meet through. . . Student/ instructional staff ratios; Student/ instructional staff salary ratios; Expenditures per pupil; or A resource allocation plan based on student
characteristics such as poverty, LEP, disability, etc. (i.e., by formula)
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Compare:Average of all non-Title I
schools toEach Title I school
Basis for evaluation: grade-span by grade-
span or school by school
May divide to large and small schools Brustein & Manasevit, PLLC
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Exclusions:Federal Funds Private FundsLEA may exclude state/local funds
expended for: Language instruction for LEP students Excess costs of providing services to students
with disabilities Supplemental programs that meet the intent
and purposes of Title I Staff salary differentials for years of
employment
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Supplement Not SupplantSurprisingly Not Greatly
Affected by Declining Budgets!
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Supplement not Supplant
Federal funds must be used to supplement and in no case supplant state and local resources
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“What would have happened in the absence of the federal funds??”
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Auditors’ Tests for Supplanting
OMB Circular A-133 Compliance Supplement
Creates 3 rebuttable presumptions
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Auditors presume supplanting occurs if federally funded services were . . . .
Provided with non-federal funds in prior year
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Presumption Rebutted!
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If SEA or LEA demonstrates it would not have provided services if the federal funds were not available
NO non-federal resources available this year!
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What documentation needed?
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Fiscal or programmatic documentation to confirm that, in the absence of fed funds, would have eliminated staff or other services in question
State or local legislative action
Budget histories and information Brustein & Manasevit, PLLC
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Must show: Actual reduction in state or local
funds
Decision to eliminate service/position was made without regard to availability of federal funds (including reason decision was made)
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Rebuttal Example
State supports a reading coach program 2009 -2010
State cuts the program from State budget 2010 -2011
LEA wants to support Title I reading coach program 2010 - 2011
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Rebuttal ExampleLEA must document
a. State cut the programb. LEA does not have uncommitted
funds available in operating budget to pick up
c. LEA would cut the program unless federal funds picked it up
d. The expense is allowable under Title I
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Auditors presume supplanting occurs if federal funds were used to provide services . . .
Required to be made available under other federal, state, or local laws
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Can this presumption be rebutted for Title I A? ED: January 2011 response to B&M
inquiry Yes but :
“while… conceivable…” “…would be extremely difficult…”
“…bar …is very high…” Level of documentation is sufficient to
rebut prior year presumption insufficient
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Supplanting Conundrum Partially Revisited
August 3, 2012 FAQ A-18 Where law has passed to implement
flexibility waiver No presumption What about other prescriptive fed
programs?
http://www2.ed.gov/policy/eseaflex/esea-flexibility-faqs.doc
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What about state laws required by federal programs?
NCLBSIGWaiver
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Auditors presume supplanting occurs if. . .
Title I funds used to provide service to Title I students, and the same service is provided to non-Title I children using non-Title I funds.
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Cannot be rebutted by lack of funds, but…
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Flexibility Exception: 1120A(d)Exclusion of Funds:
SEA or LEA may exclude supplemental state or local funds used for program that meets intents and purposes of Title I Part A
EX: Exclude State Comp Ed funds
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How does supplanting apply in a schoolwide program?
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Supplement not SupplantStatute 1114(a)(2)(B): Title I must
supplement the amount of funds that would, in the absence of Title I, be made available from non-federal sources.E-18 in schoolwide guidance
The actual service need not be supplemental.
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SNS:Guidance: School must receive all the
state and local funds it would otherwise need to operate in the absence of Federal funds
Includes routine operating expenses such as building maintenance and repairs, landscaping and custodial services
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Questions???
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Disclaimer
This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of
these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC.
You should not take any action based upon any information in this presentation without first
consulting legal counsel familiar with your particular circumstances.
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