Archived FedPro Message
For more information about the programs discussed below,
please contact the Federal Grants Management Section (573) 751-3468.
Occasionally, we will send through the listserv a summary of the latest guidance on topics related to Federal Programs. The first of the series deals with transferability.
1. What is transferability?
Transferability is a new flexibility authority that permits local educational agencies (LEAs) to transfer a portion of the funding that they receive under certain Federal programs to their allocations under other programs so that they can address more effectively their unique needs (NCLB, Title VI, Part A, Subpart 2, Sections 6121-6123). Transferability does not affect the overall amount of funds that an SEA or LEA receives, but provides them with greater flexibility in using certain Federal funds. Funds that an LEA transfers are subject to the rules and requirements of the programs to which the funds are transferred. An LEA does not have to apply for transferability authority - it already has that authority. However, the LEA must use the Allocation page of the consolidated application to show the actual transfer of these funds.
What funds may an LEA transfer?
In general, an LEA may transfer up to 50 percent of each fiscal year's funds that it receives by formula under the following provisions:
· Title II.A (Improving Teacher Quality State Grants)
· Title II.D (Educational Technology State Grants)
· Title IV.A (Safe and Drug-Free Schools and Communities)
· Title V.A (State Grants for Innovative Programs)
An LEA that has been identified for school improvement may transfer up to 30 percent of each fiscal year's funds that it receives by formula under the provisions listed above. All of the transferred funds must be used for LEA improvement activities. An LEA that has been identified for corrective action may not transfer any funds during the period that it is in corrective action status.
To which allocations may an LEA transfer funds?
An LEA may transfer funds from a program to which the transferability authority applies to its allocations under one or more of the other programs to which the authority applies, as well as to its allocation under Part A of Title I. An LEA may not transfer funds from Part A of Title I to its allocations under other programs.
What steps must an LEA take before transferring funds?
Before transferring funds, an LEA must --
Conduct consultations in order to provide for the equitable participation of private school students and staff. (An LEA may not transfer funds to a particular program solely to provide services for private school students and/or teachers. Rather, the LEA provides equitable services to private school students and teachers from the overall funds of a program, including the transferred funds.) Determine what funds are to be transferred (subject to the applicable percentage limitation) and the programs to which the funds will be transferred on the basis of the LEA's priorities and after engaging in the consultations referenced in paragraph (1); Modify each affected LEA plan or application to account for the transfer; Establish an effective date for the transfer.
What are an LEA's responsibilities for funds that it transfers?
An LEA must -
Spend the transferred funds in accordance with the requirements of the receiving program, including the statutory set-aside limitations; Maintain records of any transfers that will permit the U.S. Department of Education and the SEA to carry out normal monitoring, evaluation, and auditing activities; and Produce reports determined by the State to be adequate for financial and program reporting.
How are funds that an LEA transfers into Part A of Title I affected by the LEA set-aside provisions?
Part A of Title I has several statutory set-asides governing an LEA's use of funds. For example, there are set-asides prescribing the percentages of Title I funds that an LEA must spend on transportation or supplemental services, parent involvement, professional development, and other activities. An LEA must apply the Title I set-aside provisions to funds that it transfers to its Title I allocation.
EXAMPLES OF STATUTORY SET-ASIDE PROVISIONS:
Title I, Part A
Transportation and supplemental services (ESEA § 1116(b)(10))
Professional development for LEAs identified for improvement (ESEA §
Professional development (ESEA § 1119(l))
Carryover limitation (ESEA § 1127)
125 percent rule (ESEA § 1113(c)(2))
Title IV, Part A (Safe and Drug-Free Schools and Communities)
LEA cap on administrative funds (ESEA § 4114(a)(2))
Carryover limitation (ESEA § 4114(a)(3)(B))
Security cap (ESEA § 4115(c))
Missouri Department of Elementary and Secondary Education
Division of School Improvement - Federal Grants Management
Phone: 573-751-3468 Fax: 573-526-6698
Revised: September 13, 2007