Because we are reviewing the fiscal requirements, it is important to understand how the funds flow. The Title I, Part A program is authorized through the Elementary and Secondary Education Act (ESEA), the statute funded to provide supplemental resources to LEAs beyond local and state funds.

The funds, based on specific formulas, flow at each level from the United States Department of Education (USDE) to each state education agency, or TEA - in Texas. TEA then provides funds to LEAs based on specific funding formulas. Title I, Part A funds are intended to help campuses with high concentrations of children from low-income families to help all children meet challenging state academic standards.

Therefore, after funds are determined by TEA, the LEA determines which campuses are eligible for Title I, Part A and which private non-profit schools are eligible for services. The LEA then allocates the funding to each participating campus; the campuses are usually ranked from highest percentage of low-income children to lowest percentage of low-income children using a source of low-income data, such as Free/Reduced lunch.

It is the responsibility of each LEA that receives Title I, Part A funds to stay informed and understand the fiscal requirements and corresponding actions which must be addressed at the LEA level and campus level to ensure fiscal compliance.