department of commerce - Obama White House

DEPARTMENT OF EDUCATION

CROSS-CUTTING SECTION

INTRODUCTION

This section contains compliance requirements that apply to more than one
Department of Education (ED) program either because the program was
authorized under the Elementary and Secondary Education Act of 1965 (ESEA),
or the program is subject to the General Education Provisions Act (GEPA),
or both. Programs for which funds were appropriated under the American
Recovery and Reinvestment Act of 2009 (ARRA) (Pub. L. No. 111-5) are
included in this Cross-Cutting Section. Each ARRA program is identified by
a separate CFDA number specific to the ARRA funding, and is clustered with
a corresponding CFDA number for the program as operated under the regular
(non-ARRA) appropriation. The compliance requirements in this Cross-
Cutting Section reference the applicable programs in Part 4, Agency
Compliance Requirements. Similarly, the applicable programs in Part 4
reference this Cross-Cutting Section.

CFDA No. Program Name Listed as

ESEA Programs

84.010 Title I Grants to Local Educational Agencies (LEAs) Title
I, Part A
84.389 Title I Grants to Local Educational Agencies (LEAs), Recovery Act

84.011 Migrant Education-State Grant Program MEP

84.186 Safe and Drug-Free Schools and Communities-State Grants SDFSCA

84.282 Charter Schools CSP

84.287 Twenty-First Century Community Learning Centers 21st CCLC

84.298 State Grants for Innovative Programs Title V, Part A

84.318 Educational Technology State Grants Ed Tech
84.386 Educational Technology State Grants, Recovery Act

84.365 English Language Acquisition Grants Title III, Part A

84.366 Mathematics and Science Partnerships MSP

84.367 Improving Teacher Quality State Grants Title II, Part A

84.377 School Improvement Grants SIG
84.388 School Improvement Grants, Recovery Act

Other Programs

84.002 Adult Education-State Grant Program Adult Education

84.027 Special Education-Grants to States (IDEA, Part B) IDEA
84.391 Special Education-Grants to States (IDEA, Part B), Recovery Act
84.173 Special Education-Preschool Grants (IDEA Preschool)
84.392 Special Education-Preschool Grants (IDEA Preschool), Recovery
Act

84.042 TRIO-Student Support Services TRIO Cluster
84.044 TRIO-Talent Search
84.047 TRIO-Upward Bound
84.066 TRIO-Educational Opportunity Centers
84.217 TRIO-McNair Post-Baccalaureate Achievement

84.048 Career and Technical Education - Basic Grants to States
(Perkins IV) CTE

84.126 Rehabilitation Services - Vocational Rehabilitation
Grants
to States Vocational Rehabilitation
84.390 Rehabilitation Services - Vocational Rehabilitation
Grants
to States, Recovery Act

84.181 Special Education-Grants for Infants and Families with
Disabilities IDEA, Part C
84.393 Special Education-Grants for Infants and Families with Disabilities,

Recovery Act

84.394 State Fiscal Stabilization Fund - Education State Fund SFSF ESF

84.397 State Fiscal Stabilization Government Services Fund SFSF GSF

84.395 Race to the Top RTT

84.410 Education Jobs Fund Ed Jobs

No Child Left Behind Act

The ESEA was amended January 8, 2002 by the No Child Left Behind Act of
2001 (NCLB) (Pub. L. No. 107-110).

Waivers and Expanded Flexibility

Under Title IX of the ESEA, State educational agencies (SEAs), Indian
tribes, local educational agencies (LEAs), and schools through their LEA
may request waivers from ED of many of the statutory and regulatory
requirements of programs authorized in ESEA. In addition, some States may
have been granted authority to grant waivers of Federal requirements under
the Education Flexibility Partnership Act of 1999. Auditors should be
aware that, because of ARRA, more waivers than usual may have been
requested. For example, ED has issued guidance inviting SEAs to apply for
waivers of certain Title I, Part A (CFDA 84.010 and CFDA 84.389)
requirements. A list of SEAs receiving these waivers is available at
http://www.ed.gov/nclb/freedom/local/flexibility/waiverletters2009/index.htm
l#ri. For a list of all the waivers the Department granted in FY 2009,
some of which extend to 2010-2011 school year, see
http://www2.ed.gov/legislation/FedRegister/other/2010-3/091610c.pdf.
Auditors should ascertain from the audited SEAs and LEAs whether the SEA or
the LEA or its schools are operating under any waivers.

I. PROGRAM OBJECTIVES

The ESEA, as amended by the NCLB, provides for a comprehensive overhaul of
Federal support for education, and restructures how these programs provide
services. ESEA programs in this Supplement to which this section applies
are shown above. Generally these requirements are applicable for fiscal
years beginning after June 30, 2002.

Under the NCLB, Federal education programs authorized in the ESEA are
designed to work in concert with each other, rather than separately. By
emphasizing program coordination, planning, and service delivery among
Federal programs and enhancing integration with State and local
instructional programs, the ESEA reinforces comprehensive State and local
educational reform efforts geared toward ensuring that all children can
meet challenging State standards regardless of their background or the
school they attend.

Program objectives for non-ESEA programs covered by this cross-cutting
section and additional information on program objectives for the ESEA
programs are set forth in the individual program sections of this
Supplement.

II. PROGRAM PROCEDURES

Plans for ESEA Programs

An SEA must either develop and submit separate, program-specific individual
State plans to ED for approval as provided in individual program
requirements outlined in the ESEA or submit, in accordance with section
9302 of the ESEA, a consolidated plan to ED for approval. Consolidated
plans will provide a general description of the activities to be carried
out with ESEA funds. Subgrants to LEAs and other educational service
agencies and amounts to be used for State activities are often set by law
for ESEA programs. However, SEAs have discretion in using funds available
for State activities.

LEAs also have the choice in many cases of submitting individual program
plans or a consolidated plan to the SEA to receive program funds. SEAs
with approved consolidated State plans may require LEAs to submit
consolidated plans.

Unique Features of ESEA Programs That May Affect the Conduct of the Audit

Consolidation of administrative funds (In addition to the compliance
requirement in III.A.1, see IV, "Other Information.")

SEAs and LEAs (with SEA approval) may consolidate Federal funds received
for administration under many ESEA programs, thus eliminating the need to
account for these funds on a program-by-program basis. The amount from
each applicable program set aside for State consolidation may not be more
than the percentage, if any, authorized for State administration under that
program. The amount set aside under each covered program for local
consolidation may not be more than the percentage, if any, authorized for
local administration under that program. Expenditures using consolidated
administrative funds may be charged to the programs on a first in/first out
method, in proportion to the funds provided by each program, or another
reasonable manner.

Schoolwide Programs (In addition to the compliance requirement in III.A.2,
see IV, "Other Information.")

Eligible schools are able to use their Title I, Part A funds, in
combination with other Federal, State, and local funds, in order to upgrade
the entire educational program of the school and to raise academic
achievement for all students. Except for some of the specific requirements
of the Title I, Part A program, Federal funds that a school consolidates in
a schoolwide program are not subject to most of the statutory or regulatory
requirements of the programs providing the funds as long as the schoolwide
program meets the intent and purpose of those programs. The Title I, Part
A requirements that apply to schoolwide programs are identified in the
Title I, Part A program-specific section. If a school does not consolidate
Federal funds with State and local funds in its schoolwide program, the
school has flexibility with respect to its use of Title I, Part A funds,
consistent with section 1114 of ESEA (20 USC 6314), but it must comply with
all statutory and regulatory requirements of the other Federal funds it
uses in its schoolwide program


Transferability (In addition to the compliance requirement in III.A.3, see
III.G.3.b, "Matching, Level of Effort, Earmarking - Earmarking," and IV,
"Other Information.")

SEAs and LEAs (with some limitations) may transfer funds from one or more
applicable programs to one or more other applicable programs, or to Title
I, Part A. Transferred funds are subject to all of the requirements, set-
asides, and limitations of the programs into which they are transferred.

Small Rural Schools Achievement Alternative Use of Funds (In addition to
the compliance requirement in III.A.4, see IV, "Other Information.")

Eligible LEAs may, after notifying the SEA, spend all or part of the funds
they receive under four applicable programs for local activities authorized
under one or more of seven applicable programs.

General and Program-Specific Cross-Cutting Requirements

The requirements in this cross-cutting section can be classified as either
general or program-specific. General cross-cutting requirements are those
that are the same for all applicable programs but are implemented on an
entity-level. These requirements need only be tested once to cover all
applicable major programs. The general cross-cutting requirements that the
auditor only need test once to cover all applicable major programs are:
III.G.2.1, "Level of Effort