The following illustrates how the 27-month availability for Title I, Part A funds and the carryover limitation would operate for an LEA that receives an allocation under the FY 2005 appropriation. Federal FY 2005 Appropriation (Title I, Part A Funds Allocated to the LEA from Funds Made Available on July 1, 2005 Total $1,500,000) Total allocation $1,500,000 Minimum amount LEA must obligate between July 1, 2005 – September 30, 2006 to avoid excess carryover (85 percent of total appropriation) 1,275,000 Amount LEA may carryover and obligate during October 1, 2006 – September 30, 2007 (carryover period provided under section 421(b) of GEPA) 225,000 During the first 15 months that an LEA’s Title I, Part A funds are available, the LEA must, by September 30, 2006, obligate at least $1,275,000 (85 percent) of the total allocated to it. The LEA may carry over a maximum of $225,000 (15 percent) into the next fiscal year and must obligate those funds by September 30, 2007. Any funds that remain unobligated after that date revert to the U.S. Treasury. Questions and Answers on Carryover D-1. What actions must an SEA take with respect to an LEA that exceeds the 15 percent carryover limitation? Unless it grants the LEA a waiver of the carryover limitation (see Q6), an SEA must reduce that LEA’s allocation by the exact amount it exceeds its 15 percent carryover limitation. The following chart illustrates how much an SEA would reduce an LEA’s allocation because it exceeded its carryover limitation. EXAMPLE: Amount Percent of Total Allocation 1 Total FY 2005 allocation (funds become available on July 1, 2004) $1,500,000 2 Minimum obligation for period July 1, 2005 – September 30, 2006 1,275,000 85% 3 Maximum amount an LEA may carry over into next fiscal year (October 1, 2006 – September 30, 2007) 225,000 15% 4 Actual amount LEA obligated for period July 1, 2005 – September 30, 2006 1,200,000 80% 5 Amount unobligated as of September 30, 2006 300,000 20% 6 Amount by which the LEA is over the 15% carryover limitation and would be reduced (Line 5- Line 3) * 75,000
Specific examples illustrating how schoolwide program schools could consolidate and use discretionary grant funds by carrying out the activities described in the application under which the funds were awarded are provided in 69 FR 40360-64 (July 2, 2004), Notice of authorization and exemption of schoolwide programs. This notice is available on ED’s website at . E-13. The July 2, 2004 Federal Register notice states that it is permissible for a schoolwide program school to consolidate the Title I, Part D (prevention and intervention programs for children and youth who are neglected, delinquent, or at-risk) funds it receives. Part D consists of two programs. Subpart 1 authorizes the State Agency Neglected and Delinquent program, and Subpart 2 authorizes the Local Agency program. Which of these programs may a schoolwide program school consolidate with other Federal, State, and local funds? Title I, Part D, Subpart 2 funds support the operation of programs in LEAs with high numbers or percentages of children and youth residing in locally operated correctional facilities for children and youth, including facilities involved in community day programs designed to— Carry out high-quality education programs to prepare children and youth for secondary school completion, training, employment, or further education; Provide activities to facilitate the transition of such children and youth from the correctional program to further education or employment; and Operate programs in local schools for children and youth returning from correctional facilities, and programs that may serve at-risk children and youth. [Section 1421] If a schoolwide program school receives these funds, it may consolidate them with other Federal funds. The Title I, Part D, Subpart 1 (State Agency Neglected and Delinquent) funds are distributed to State agencies and are, therefore, not subject to consolidation in a schoolwide program. Section 1416 of Title I, Part D, Subpart 1, however, provides for a State agency to operate projects. Meeting Intent and Purposes E-14. A