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 Title I, Part A funds are available, the LEA must, by LEA’s 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 allocation by the exact amount it exceeds its 15 percent carryover limitation. The LEA’s following chart illustrates how much an SEA would reduce an allocation because it LEA’s exceeded its carryover limitation. EXAMPLE: Percent of Total Amount Allocation 1 Total FY 2005 allocation (funds become available on July 1, $1,500,000 2004) 2 Minimum obligation for period July 1, 2005 September 30, 1,275,000 85% – 2006 3 Maximum amount an LEA may carry over into next fiscal year 225,000 15% (October 1, 2006 September 30, 2007) – 4 Actual amount LEA obligated for period July 1, 2005 1,200,000 80% – September 30, 2006 5 Amount unobligated as of September 30, 2006 300,000 20% 6 Amount by which the LEA is over the 15% carryover limitation 75,000 and would be reduced (Line 5- Line 3) *
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
fiscalguid.docx