Help Me, Help You! Monitoring and Approving Title I Expenditures Explain the purpose of today’s presentation (to help simplify their role when reconciling with Title I funds) and inform the audience that we will be stopping at different points during the presentation to answer questions. Discuss the transition from what was done in the past to how Title I is now reviewing all purchases. Presented by Federal State Education Programs September 2017

Purchasing with Title I Funds The policies and procedures to follow when using Title I funds to purchase resources. Imprest Account P-Card Orders Shopping Cart Any questions on what we have seen so far? Let’s begin by discussing the process of submitting an Imprest claim.

Using Imprest in Title I REF-1706.4 The following are the only allowable Title I expenditures when using a school’s Imprest account. These expenditures must be specifically described in the school’s SPSA. Admission Fees to approved educational activities -Ref-2111.0 and Ref-2191.4 Conference Registration Fees to Title I-allowed conferences for staff and parents – BUL-5525.1 Allowable parent training and parent travel expenses Contract Bus Services – to locations approved by LAUSD- Bul-1521.1 Supplemental Instructional Materials - http://achieve.lausd.net/Page/10820 & for items described in the Program and Budget Handbook p. A-39 Paraphrase slide, remind them to submit the Title I claims separate from other programs. Lakeshore example here for SIM. Secondary schools, please share this information with your Financial Manager.

Using Imprest in Title I REF-1706.4 Reminders Before the Imprest can be reconciled, the charge will be reviewed by a Title I program reviewer to approve or reject. Submit Title I Imprest Claim Form along with all required documents (see Title I Cheat Sheet) to the FSEP email (fsep@lausd.net) The item will be rejected if the proper documents are not included. Submit Title I purchases separate from other expenditures charged to other accounts. Paraphrase slide, remind them to submit the Title I claims separate from other programs. Lakeshore example here for SIM. Secondary schools, please share this information with your Financial Manager.

Using P-Card In Title I BUL-6518.1 The only P-Card expenditures that can be reconciled with Title I funds are: Admission Fees to approved locations - (REF-2111.1) -SPSA plan page and itemized receipt/invoice (with location) Conference Registration Fees – (BUL-5525.2) -SPSA plan page, approved 10.12.1 travel form, conference registration receipt/invoice, and conference flyer  Supplemental Instructional Materials – SPSA plan page and itemized receipt/invoice Contract Bus Services to locations approved by LAUSD – (BUL-1521.1) -SPSA plan page, approved Student Field Trip Form (34-EH-57), and itemized receipt/invoice Software License Maintenance for renewal of licenses -SPSA plan page and itemized receipt/invoice Other Books – PD Books, reference materials for student (e.g.-thesaurus, picture dictionaries, etc…), or books for the School Library -SPSA plan page and receipt/ invoice listing all books purchased Other expenditures, not named above, charged to the school’s P-card, even if they are allowed by Title I and in the SPSA, could be subject to payback. Go through restrictions.

Using P-Card In Title I BUL-6518.1 Reminders Before the P-Card can be reconciled, the charge will be reviewed by a Title I program reviewer to approve or reject. The item will be rejected if the proper documents are not included. Submit Title I purchases separate from other expenditures charged to other accounts.

Shopping Carts - Additional Approver Process BUL-6517.1 Title I Shopping Carts will require documentation to be attached to the order, including the SPSA page/SPSA Modification page, and quote that specifically defines the items being purchased. Some items may require additional documentation (see below). If all required documentation is not included, your entire order will be rejected. All items listed below will require an additional approver (e.g.- LD Title I Coordinator or Central Office Title I Approver) Verbally mention that additional approver process is also added for Title III (7S176) and Title I Parent Involvement (7E046). Discuss that these items will need the proper documentation or the order will be rejected. Stress the importance of having your SAA be familiar with the SPSA

Procurement deadlines for purchases with Title I funds. For planning purposes, please be aware of the following dates: New cut-off date for all Imprest requests through Title I is May 5, 2018. All Title I requests must come to our office to be approved before they can be processed. The cut-off date for all orders placed through shopping cart, P-Card or paid for with Purchase Orders (PO) is May 5, 2018. Software License Maintenance- All software renewals must be in place at the school site by May 5, 2018. All equipment purchases through General Supplies-Technology (430001) or Non-Capitalized Equipment (440001) must be received at the school by May 5, 2018. These cut-off dates ensure that this year’s funding benefits the students who generated the funds.

Title I Cheat Sheet Under the budget planning tab for you to download.

Not allowable through Title I General Supplies- Title I funds are not allowed to purchase general supplies such as tissues, copy paper, pens, pencils, markers, soap, coloring pencils, paint, folders, binders, health office supplies, hand sanitizer, mops, brooms, furniture, etc. This restriction includes items appearing in the District’s Supplies and Equipment Catalog. Exception Allowable Instructional Tools from the General Stores Warehouse Under SIM (Commitment Code 430010)  http://achieve.lausd.net/Page/13485

Title I Allowable Expenditures with Restrictions General Supplies Technology 430001… Expenditures for General Supplies Technology are restricted to items of equipment with a total final cost of less than $500 (including tax, shipping and other ancillary charges) when funded with Title I resources. These items may be used in the classrooms and parent centers. Examples include laptops, iPads, iPods, netbooks, LCD projectors, printers, graphing calculators, Chromebooks, document cameras, e-readers, etc. Curricular Trips- Title I will only pay for field trips that supplement the core instructional program and improve academic achievement for at-risk students. These trips must be addressed in the school’s SPSA. Funding will not be approved for trips to entertainment or sporting events. Nor will funding be approved for trips that do not have a tie-in to the schools academic program. Additional information may be required before an approval is granted.

Curricular Trips booked through the Transportation Services Division New For all Title I-funded trips booked directly with the District Transportation Services Division, the Title I Office will now review and approve these trips. These trips must be submitted via the online system (https://achieve.lausd.net/Page/868) with a copy of the page from the Single Plan for Student Achievement (SPSA) specifically describing the trip destination attached. Hard copy request for trips funded with Title I will not be processed. Because of the of the additional approval process by the Title I Office and the requirement that the trip be approved by the school administrator at least 15 days before the trip date, schools will need to plan accordingly to ensure sufficient time is available for the planned trip. Since the Transportation Services Division does not charge schools until after a trip has been taken, trips in June are frequently charged in July of the new school year. Subsequently, schools have had to payback with their general funds because Title I funds do not carryover and the costs are charged to a different school year. To avoid schools being penalized, schools will not be allowed to book Title I-funded curricular trips in the month of June through the Transportation Services Division. Schools will still be able to book June trips through the District’s approved charter bus companies as long as the trip is described in the SPSA and the purchase was made on or before May 5. FSEP will review these trips to ensure they are listed in SPSA Trips through transportation will be submitted through the online system, 15 days in advance No Trips using Transportation Division will be allowed in June.

Title I Audits The Title I office will conduct internal audits of all schools who reconcile accounts using Title I funds. Other Expenditures (non-payroll) will be reviewed 3 times per school year (fall, winter and spring). Payroll expenditures will be reviewed 2 times per school year. Curricular trips and shopping carts are reviewed prior to the funds being spent. P-Card and Imprest expenditures are reviewed during reconciliation of those funds. In addition, Simpson and Simpson firm (District’s single auditor) conducts yearly reviews of random schools’ Title I programs and budgets. Every 2 years, the California Department Of Education (CDE) conducts a review of the District’s categorical programs which include Title I.

Common Findings during Title I Audits for OEs Based on our reviews, we have found the following; SPSA documentation not being submitted during reconciliation of accounts SIM, available through the School’s Warehouse, is not being purchased through the Warehouse Items being charged to the wrong line (ex. SLM instead of SIM) Expenditures not in compliance with Title I regulations (ex. non- curricular trips, general supplies, school website maintenance, toner) Expenditures purchased last school year were not reconciled by the end of that school year.

Common Findings during Title I Audits on Payroll Expenditures Based on our reviews we have found the following; Schools are not clearing payroll negatives whether the overdrafts are because funds were not budgeted in the commitment line or the funds have exceeded the budgeted amount. Misconception: Because you have unspent funds in other commitment lines, the negatives will be offset. Wrong, Title I funds are under the purview of School Site Council (SSC) and therefore SSC is the only approving body that can move these funds to the various lines.

Paying Back the Title I Program for Un-allowed Expenditures If it is determined that expenditures, including salaries and benefits, are unallowable or overdrawn due to the school’s error, the school will be required to pay back with site-based general funds. Last year, OEs close to $120K, this year $112K $81K were allowable trips just not in plan. Only $31K in non-allowable OEs

What can I do to ensure my school is compliant? Suggestions for avoiding a payback Use control sheets Have an open line of communication with your SAA/time reporter and your principal Periodically review School Spending Report from the school’s LAUSD website Meet with your fiscal specialist Maintain copies of SPSA/SPSA Modifications Don’t ignore emails from FSEP or your LD Coordinators

So, how do you feel? Hector Arancibia hja8803@lausd.net 213.241.7041 confused angry Hector Arancibia hja8803@lausd.net 213.241.7041 scared