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Carryover

Procedures for Carryover and Reallocation of Funds

Effective Date: July 1, 2007

Time Limits for the Availability of Federal Funds

Congress makes federal funds available for a limited amount of time. Legislators appropriate funds for a particular purpose with the expectation that the money be used, during the original fiscal year for which it is appropriated, and not left idling in the U.S. Treasury.

Therefore, there is a limit on the time period for which federal education funds are available for use by State Education Agencies (SEA) and Local Education Agencies (LEA). Funds become available beginning July 1 of each year, which marks the beginning of the SEA and LEA fiscal year. The funds remain available for a total of 15 months, until September 30 of the succeeding year.

Tydings Period According to the General Education Provisions Act

A LEA that fails to spend the entire year’s allocation may carryover a percentage of their grants for an additional year. Thus, the total availability of the grant is 27 months. The additional 12 months is called the Tydings period. While this additional time is available for spending of various NCLB funding, the intent is for all funds to be spent in the year in which it is originally allocated for meeting needs of students and teachers.

Restrictions for Carryover Funds

LEA’s that receive Title II, Part A or Rural & Low Income School grants may only carryover 15% of their grant. While this is not federal legislation the US Department of Education Monitoring Team recommended that written procedures governing the amount of carryover an LEA may keep from year to year be created to help eliminate funding having to be sent back to the US Department of Education. This percentage has been established to parallel Title I, whose percentage of allowable carryover is established in law. The percentage of carryover funds into the Tydings period shall be determined as of September 30. The funds carried over from Title II, Part A and Rural and Low Income Schools may be utilized by the LEA in two ways:

  1. To support the original plan of approved activities as written for the Fiscal Year funds that are being carried forward if those activates are not yet complete, or are being continued because they were not completed. Additionally, a budget transfer is required if funds must be moved to different line items in order to be expended during the carryover period.
  2. To support additional activates amended into the LEA original plan based on the LEA’s needs assessment as approved by the appropriate WV Department of Education Coordinator for the plan being amended. Budget transfer is also required if funds must be moved to different line items in order to be expended.

Procedures for Utilizing Carryover Funds

If a LEA determines on or before September 30, that it is necessary to carry funds into the Tydings period, they must submit a LEA Carryover Application to the respective Title II or Rural & Low Income Schools Coordinator for SEA approval (see attachment 1).

Upon review, the SEA will approve or disapprove the Carryover Application and notify the LEA of the status.

If approved, a copy of the LEA Carryover Application will be filed in the WVDE finance office.

Waiver Request

The SEA is permitted to waive the fifteen (15) percent limitation once every three years if the SEA determines that the LEA’s request is reasonable and necessary or if supplemental appropriations become available for the waived program.

Procedures for Waiver Request

If an LEA determines on or before September 30, that the percentage of carryover funds will exceed fifteen (15) percent, the LEA may request a waiver from the SEA. The waiver may only be requested once every three years.

The LEA must submit the Waiver Request for LEA Carryover funds to the State program Coordinator for the program requesting the waiver for SEA approval (see attachment 2).

Upon review of the justification provided, the State Coordinator will approve or disapprove the request and notify the LEA Coordinator of the status.

If approved, a copy of the waiver request will be filed at WVDE.

Should an LEA exceed the carryover limitation and be ineligible for a waiver, the amount that has been exceeded reverts back to the state to be reallocated to other school districts according to need.

Reallocation of Funds

There are several ways in which the West Virginia Department of Education may find that funds are available for reallocation:

  1. Money returned by LEA’s that exceeded the 15% carryover;
  2. Money that becomes available because a district failed to maintain “maintenance of effort”;
  3. Money that becomes available because of audit findings (e.g. a district has misspent program funds and is required to repay the amount);

Funds that have been returned to the State will be reallocated to eligible LEAs based on need through a competitive application procedure.

West Virginia Department of Education reserves the right to determine the criteria for LEA eligibility and “need” and the right to have the flexibility to change the criteria annually if necessary.

Procedures for Applying for Reallocated Funds

Should funds become available for reallocation through a competitive application, the State program coordinator will notify all eligible LEA program Coordinators of the availability of funds and the procedures for obtaining the funds.

Each eligible LEA may submit a competitive grant application, requesting the additional funds.

A grant reading committee of WVDE staff members will review Reallocation Grant Applications and a determination will be made for the grant award(s).

Respective LEAs will be notified of the grant award status.

Please note that funds listed as encumbered are non-expended funds and will count against the 15% of allowable carryover.

Example: If a district has expended all but 20% of their Title II, Part A or Title VI funding and 6% of the funds are encumbered as of September 30, the district would require a carryover waiver because they are still carrying 20% of their funds into the following federal fiscal year. The encumbered funds would NOT put them at 14%, because those funds have not been fully expended.

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