The information contained in this memorandum is essential to help districts accurately plan for the 2004-2005 school year’s Title II-A program.
During the audit of the Arkansas Department of Education (ADE) for fiscal year 2002-2003, the Title II-A allotment calculations were found to be incorrect by Legislative Audit. As a result of the audit finding, the 2002-2003 Title II-A allocations have been recalculated using U. S. Census data as required in the No Child Left Behind Act. This recalculation resulted in 181 school districts receiving overpayments in amounts ranging from $20,958 to $16 for a total of $437,339. One hundred and twenty-nine districts were underpaid in amounts ranging from $10 to $67,054 for a total of $437,339. The attached printout outlines:
1. In Column 8, the CORRECT 2002-2003 Title II-A allocation generated using Census data,
2. In Column 9, the incorrect 2002-2003 Title II-A allocation that was distributed to school districts, and
3. In Column 10, the difference that will be either added to or subtracted from the 2004-2005 Title II-A allocation.
The ADE contacted the U. S. Department of Education (USDOE) regarding options available to correct this problem. The ADE was referred to Florida which had also used an incorrect distribution formula for Title II-A for the 2002-2003 school year. In fact, Arkansas discovered that several states had made this error when the formula changed from using free and reduced price meal data to census poverty data.
The USDOE has allowed Arkansas to make the corrections based on the revised and corrected 2002-2003 allocations during the 2004-2005 Title II-A Grant Award cycle. The 2004-2005 Title II-A allocations will be calculated as required by law using 2000 Census data. The difference will be added or subtracted from the 2004-2005 allocation to correct this error. The preliminary 2004-2005 allocation for Arkansas Title II-A should be very close to the actual 2003-2004 allocation. From the 2004-2005 allocation, the adjustment for the increase or decrease shown in Column 10 of the attachment will be made. This method of correcting the error was suggested by the U. S. Department of Education.
Direct questions to Ms. Patsy Hammond at 501-682-4275.