Guidelines for the Use of Title III, Part A Funds
Federal law regulates the use of Title III, Part A funds and how compliance is achieved. Some of these guidelines are highlighted below.
Guidelines for Service Providers
For service providers, federal law also sets guidelines for LEAs to follow. A service delivery plan must be provided by employees of the LEA or through a contract made by the LEA with a third party (third-party contract).
Administrative and Indirect Costs
Before determining equal expenditures, the LEA shall pay for the reasonable and necessary administrative costs, including indirect costs, of providing services to PNP-school children and their teachers from the LEA’s allocation of Title III, Part A funds.
Direct administrative costs are expenses incurred for the overall executive and administrative offices of the organization.
Indirect administrative costs are general expenses that do not relate solely to any major cost objective of the organization.
Direct Administrative Costs
For administrative costs, LEAs are restricted to no more than 2 percent of their Title III, Part A entitlement. If associated with third-party contracts, the administrative costs must be broken out and included in the LEA’s calculations of total administrative costs.
Direct administrative costs may include those costs associated with the following:
- Accounting and other fiscal activities, including reporting expenditures to TEA
- Auditing overall program administration
- Evaluating/reporting on the progress and results of the grant program
- Monitoring compliance with the program requirements
- Salaries and benefits for staff members who supervise activities of program staff
- Insurance that protects the grantee
- Direct administrative costs included in an approved direct-cost-allocation plan
Indirect Administrative Costs
Indirect administrative costs are calculated and reimbursed based on actual expenditures when reported in the expenditure reporting system, regardless of the amount budgeted and approved in the grant application.
For guidance on indirect costs, visit TEA's Division of Grants Administration.
Formulas to Determine Equal Funding
TEA requires LEAs with participating PNP schools to complete and submit an equitable services worksheet annually. In no case are funds actually transferred to participating PNP schools; only services are provided.
LEAs are required to use two formulas to determine equitable funding for services under Title III, Part A.
Formula for Title III, Part A LEP Funds
Formula for Title III, Part A Immigrant Funds
Administrative Costs—Expenses incurred for the overall executive and administrative offices of the organization.
Entitlement—The amount of funds that a grantee of a formula-funded grant program has been allocated based on the requirements of a given grant.
Supplant—Take the place of or replace; Title III, Part A funding must be used to supplement programs and services offered with state, local, and other federal funds, not supplant them.
Supplement—Something that adds to, enhances, or increases the level of services; Title III, Part A funds must supplement programs and services offered with state, local, and other federal funds.
Third-Party Contract (Contractor)—An organization or individual that enters into a contract with an LEA to administer Title III, Part A services to the PNP school.