Memo Text
The
Division of Elementary and Secondary Education (DESE), Federal Programs Unit,
is posting its policy on determining the ten percent (10%) variance for federal
funds. For audits performed for the year ending June 30, 2021, 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%.
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 or Coordinator
|
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 2020-2021 school district audit file for the
auditors. This information will be included on the agenda for Tier I training
during the summer of 2021.
10%
does not apply to the ESSER I or ESSER II funds.