Arkansas Department of Education Division of Elementary and Secondary Education Ten percent Variance in Federal Funds Budgets Revision

Memo Information

Memo Number
COM-20-052
Memo Date
10/21/2019
Memo Type
Informational
Unit
Public School Accountability
Regulatory Authority
Response Required
NO
Attention
Federal Programs; Superintendents; General Business Managers

Primary Contact Information

Memo Reference

No references available.

Memo Text

The Division of Elementary and Secondary Education (DESE), Federal Programs Unit, is revising its policy on determining the ten percent (10%) variance for federal funds. For audits performed for the year ending June 30, 2020, the 10% variance will be determined by comparing the difference in the budgeted amount of each line item by function code to the total expenditure amount for that line item.  Actual expenditures are not to exceed the total budgeted for that function by more than 10%.  

 

This Commissioner’s memo supersedes slides 92-96 in the 2019-2020 Tier I training.

 

ESSA 10% Variance for Federal Funds Budgets example:

·       Compare each function total actual expenditure to each function budgeted expenditure.

·       If the function line variance is greater than 10% of overall total function budget, then the district is out of compliance.

·       Ten percent (10%) variance does not apply to indirect cost. A district's actual indirect cost charged/taken cannot exceed budget for indirect cost.

·       Ten percent (10%) variance rule currently does not apply to Categorical funds (ESA, PD, ELL, & ALE).

 

Function:

Budgeted Amount

Actual Expenditure

10% of total function budget

Variance budget to actual

 

1591 Title I Schoolwide Instruction

126,866.73

127,519.90

12,686.67

(653.17)

Over budget but within 10% variance

2170 Parent Involvement

3,500.00

2,532.75

350.00

967.25

 

2210 Improvement of Instruction

19,400.00

32,855.00

1,940.00

(13,455.00)

Out of compliance

2213 Instructional Staff Training

10,478.39

15,097.78

1,047.84

(4,619.39)

Out of compliance

2294 Instructional Facilitator, Math

15,714.43

6,371.44

1,571.44

9,342.99

 

2297 Instructional Facilitator, Literacy

21,558.74

14,360.62

2,155.87

7,198.12

 

2324 Federal Programs Director/Coord.

15,097.78

15,009.09

1,509.78

88.69

 

3352 Non-Public Schools

8,254.10

6,573.59

825.41

1,680.51

 

3355 Homeless

600.00

150.00

60.00

450.00

 

Total *See note below

221,470.17

220,470.17

 

 

 

*OVERALL TOTAL BUDGET EXPENDITURES ARE NEVER TO BE GREATER THAN AMOUNT OF FUNDS AVAILABLE REGARDLESS OF VARIANCE POLICY.

 

Please keep a copy of this memo with the 2019-2020 school district audit file for the auditors. This information will be included on the agenda for Tier I training during the summer of 2020.

 


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