A-1a (updated for 2023) May the LEA Application in eGrants be used as the LEA Plan for the Use of ARP ESSER Funds?

Yes. The eGrants application components satisfy the content requirements for the LEA Plan. Once an eGrants application is approved by PDE, the LEA may choose to make the language more family friendly and accessible to diverse audiences prior to posting online.

ARP ESSER requires that LEAs develop, approve, and make public an LEA Plan for the Use of ARP ESSER funds. Based on Pennsylvania's LEA application for ARP ESSER funds, LEAs will be able to satisfy the LEA Plan requirement through the eGrants submission, provided that the submission:

• is tailored to the specific needs faced by students and schools within the LEA;
  
• reflects the insights of diverse stakeholders, particularly students and those most impacted by the pandemic, as to the most pressing needs and the most effective strategies for teaching, learning, and day-to-day school experiences;
• is made publicly available on the LEA's website;
• is written in a language that parents can understand; and
• is provided in alternate format upon request by a parent who is an individual with a disability.  
  

A-1b (updated for 2023) Is stakeholder engagement required?

Yes. As recipients of ARP ESSER funding, school districts, charter schools, and PDE are required by statute to engage in meaningful consultation with stakeholders. LEAs are specifically required to engage with stakeholders in the development of the LEA Plan for the Use of ARP ESSER Funds and the revisions to the LEA Health and Safety Plan. Under ARP requirements, stakeholders include, but are not limited to, students, families, schools, and district administrators (including special education administrators), teachers, principals, school leaders, other educators, school staff, and their unions. In addition, the LEA must engage in meaningful consultation with each of the following to the extent present in or served by the LEA: tribes; civil rights organizations (including disability rights organizations); and stakeholders representing the interests of children with disabilities, English learners, children experiencing homelessness, children and youth in foster care, migratory students, children who are incarcerated, and other underserved students.

For additional information, please see the ARP ESSER Guidebook section titled "Consultation with Stakeholders." 

A-1c (updated for 2023) What are allowable uses of ARP ESSER funding by a subrecipient?

A subrecipient must reserve not less than 20 percent of its allocation to address learning loss through evidence-based interventions, including summer learning or summer enrichment, extended day, comprehensive afterschool programs, or extended school year programs; such programs must attend to students' academic, social, and emotional needs and address the pandemic's disproportionate impact on historically underserved student groups. Subrecipients are strongly encouraged to consult PDE's Evidence Resource Center—a customized website, designed by Pennsylvania educators and some of the nation's foremost education scholars—in evaluating the efficacy of learning loss initiatives. 

The remaining 80 percent of a subrecipient's allocation can be used for a broad array of programs and providing professional training; extending the school day or year; making technology purchases; providing mental health supports; and undertaking priority school facility repairs and improvements. While these funds can also be used for maintaining the operation and continuity of LEA services, including to employ existing or hiring new LEA and school staff, it is important to consider how staffing will be impacted when federal funding is no longer available. PDE advises that LEAs only use the funds for this purpose as part of a larger long-term financial plan.

For a full list of allowable expenditures as well as clarifications, see Section 2001(e) of the ARP, the U.S. Education Department FAQs, and the ARP ESSER Guidebook section titled "Allowable Uses under ARP ESSER."

For a comparison of allowable expenditures across ESSER I, ESSER II, and ARP ESSER, access the U.S. Department of Education's ARP ESSER Fact Sheet. 

A-1d (updated for 2023) PDE's initial ARP ESSER guidance indicated that schools operating under federal accountability designations will be asked to assure that ARP ESSER plans reflect consultation of the Evidence Resource Center; what does this mean?

PDE will require subrecipients with one or more CSI or A-TSI schools to verify, via the ARP ESSER application, consultation of the Evidence Resource Center in developing local plans and to provide a justification when an intervention that is not supported by tier 1, 2, 3, or 4 evidence  is selected. 

A-1e (updated for 2023) Can I use my ARP ESSER funds to implement full-service community schools?

Yes. The USDE has reiterated that ARP ESSER funds may be used to expand existing full-service community schools or implement the model in new schools. Additionally, LEAs may use funds to develop or expand in-school student support centers that provide mentoring, counseling, and social and emotional learning supports to students in individual or group sessions. More information regarding the use of ESSER funds to support full-service community schools is available on the Pennsylvania Chart of Accounts.

A-2a (updated for 2023) The ARP ESSER subrecipient application indicates LEAs must develop and make publicly available a Plan for Safe Return to In-Person Instruction and Continuity of Services. What is that?

Section 2001(i)(1) of the ARP Act requires each LEA that receives ARP ESSER funds to develop and make publicly available on the LEA's website a Safe Return to In-Person Instruction and Continuity of Services Plan. LEAs must submit this plan to PDE by July 30, 2021. As the U.S. Department of Education outlines specific requirements for the Safe Return to In-Person Instruction and Continuity of Services, the plan will be different than the one each LEA submitted last year to PDE. However, in the interest of consistency, PDE published a sample template that will allow LEAs to revise existing local Health and Safety Plans to satisfy ARP ESSER requirements. 

For more information, see the ARP ESSER Guidebook section titled "Plan for the Safe Return to In-Person Instruction and Continuity of Services." 

A-2b (updated for 2023) How long will the Health and Safety Plan remain in effect?

Each LEA must create a Health and Safety Plan that addresses how it will maintain the health and safety of students, educators, and other staff, and which will serve as the local guidelines for all instructional and non-instructional school activities during the period of the LEA's ARP ESSER grant. 

A-2c (updated for 2023) How often should an LEA review and/or revise its Health and Safety plan once it has been approved by the LEA's governing body and submitted to PDE?

ARP ESSER requires that LEAs review their plans at least every six months during the entire period of the LEA's ARP ESSER grant. LEAs also must review and update their plans whenever there are significant changes to the CDC recommendations for K-12 schools. Like the development of the plan, all revisions must be informed by community input and reviewed and approved by the governing body prior to posting on the LEA's publicly available website. 

A-2d (not updated for 2023) Does an LEA need to submit to PDE each revision of the Health and Safety plan once the original plan is posted?

No. The LEA should submit the URL to the webpage where the current, and all future Health and Safety Plans, is located. That way PDE and the public always have access to the most current version of the LEA's Health and Safety Plan.

The allowable period is from March 13, 2020, to September 30, 2024.  More specifically, ARP ESSER funding may be utilized for allowable costs dating back to March 13, 2020, when the national emergency was declared; is available for obligation by both PDE and subrecipient through September 30, 2023; and, under the Tydings Amendment (Section 421(b)  of the General Elections Provision act (General Education Provisions Act), any funds not obligated at the end of the federal funding period (i.e., September 2023) remain available for obligation for an additional period of 12 months. 

B-2a (not updated for 2023) Must a LEA's ESSER application be approved prior to incurring costs?

PDE has received inquiries from LEAs related to the recognition of stimulus funds on their Schedule of Expenditures and Federal Awards (SEFA). The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted on March 27, 2020, provided for ESSER I funds. On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act appropriated ESSER II funds, and on March 11, 2021, the American Rescue Plan (ARP) Act provided ARP ESSER funds. Under all three rounds of ESSER funding, the U.S. Department of Education (USDE) authorized pre-award costs dating back to March 13, 2020, when the national emergency was declared. (See ARP ESSER Fact Sheet p. 4). 

For purposes of reporting ESSER funds on the SEFA, the 2022 Compliance Supplement directs LEAs to include ESSER funding in accordance with the CFDA No. 84.425 and the corresponding subprogram designation (84.425D for ESSER I and II; 84.425U for ARP ESSER). In determining the timing of reporting the funds on the SEFA, 2 CFR 200.502 generally focuses on when the activity related to the federal award occurs and requires awards be included based on that activity. In most cases, this is after an award or subaward has been made; however, with ESSER, pre-award costs and activities are authorized. 

Accordingly, LEAs may include their ESSER I, ESSER II, and ARP ESSER allocations in the SEFA, even prior to receiving the final, approved subaward from the commonwealth. This is consistent with the professional judgement flexibility noted in the Government Audit Quality Center (GAQC) guidance. See GAQC Nonauthoritative Guidance on Reporting Certain COVID-19 Awards, updated April 14, 2021. 

Notably, USDE issued guidance to assist LEAs in planning for and incurring pre-award costs if they have not yet received an ARP ESSER award from their state. See USDE Guidance on ESSER Pre-Award Costs . Specifically, USDE emphasizes that a delay by a state to award ARP ESSER funds "does not restrict an LEA's ability to incur allowable costs that an LEA determines are appropriate and necessary." Id. The guidance continues: 

The allowability of pre-award costs means that an LEA may choose to incur allowable ARP ESSER costs even before it receives an award from its SEA. Under 2 CFR § 200.458, an LEA that has not yet received ARP ESSER funds to which it is entitled may use state or local funds to incur allowable costs and, once it receives its ARP ESSER award, reimburse itself for the allowable costs that it incurred before receiving the Federal emergency funds. 

Therefore, LEAs are not required to have a fully approved subaward prior to incurring allowable pre-award costs under ESSER I, ESSER II, or ARP ESSER. 

B-2b (updated for 2023) What charges must be pre-approved by PDE? All expenditures for equipment with a per-unit cost of $5,000 or more (including trailers and modular units), buildings, and land must be pre-approved by PDE. Prior approval is also required for travel and entertainment costs. 

B-2c (updated for 2023) How much detail must be included on the ARP ESSER Prior Approval Forms?

In completing ARP ESSER applications, remember to complete the prior approval forms if you are planning to engage in construction, capital expenditures (including equipment with a per-unit cost of $5,000 or more), or other relevant expenditures. See 2 CFR § 200.407. Prior approval forms are available within the ARP ESSER application.  Prior approval forms will be reviewed with your ARP ESSER application. 

Please be sure to: 1) identify the allowable use under ARP ESSER; 2) explain how the expenditure meets the overall purpose of the ESSER funds, which is to prevent, prepare for, or respond to COVID-19; and 3) describe how the proposed expenditure is "reasonable and necessary" in compliance with the Cost Principles in 2 CFR Part 200, subpart E (2 CFR §§ 200.403-200.404). 

An LEA's explanation of the proposed use is critical. For example, an LEA's request to replace a roof will likely be disapproved if the roof replacement was scheduled, planned, or budgeted prior to the pandemic or constituted routine maintenance in response to longstanding health issues, including concerns with mildew, identified prior to March 13, 2020. 

However, an LEA's request to replace a roof likely would be approved if the LEA indicated that the roof replacement project allowed students to move to a wing of the building not previously used for instruction, allowing for utilization of new space, providing for social distancing of students, mitigating the spread of COVID-19, and maximizing efforts to ensure that students remain able to attend school in-person. 

B-2d (not updated for 2023) Does the prior approval requirement apply to all ESSER funds?

Yes. Prior approval is a requirement of the Uniform Guidance (2 CFR § 200.407), and therefore applies to relevant expenditures under and ARP ESSER, as well as GEER funds. 

B-2e (updated for 2023) How long will it take to obtain prior approval?

For ARP ESSER, the prior approval process is embedded into the application process, and your request for prior approval will be reviewed with your ARP ESSER application. 

For prior approval associated with to ESSER I, ESSER II, or GEER funds, ARP ESSER your forms will be reviewed as quickly as possible. 

B-2f (updated for 2023) If PDE has already approved my LEA's ESSER I, ESSER II, ARP ESSER or GEER application, do I still need to seek approval for relevant expenditures using my ESSER I, ESSER II, ARP ESSER or GEER allocations?

Yes, in addition to the prior approval forms, an interim budget and program revision needs submitted. In eGrants. Regardless if your LEA's ESSER I, ESSER II, ARP ESSER or GEER application has been approved, you must seek approval from PDE for a relevant expenditure (even if you have already expended the funds). For ESSER I, ESSER II, ARP ESSER or GEER expenditures, you must complete and submit the approval form to PDE:

• ESSER ​I Form
• ESSER II Form
• GEER I/II Form
• ARP ESSER
  

B-3a (updated for 2023) Must all expenditures occur by the end date of the ARP ESSER grants (e.g., September 30, 2024 for ARP)?

Obligations must occur by the end date of the grant. Funds must be liquidated (i.e., final payments made) no later than 90 days after the end of the grant period on September 30, 2024. 

For example, if an LEA enters into a contract using ARP ESSER funds, the contract end date cannot extend beyond September 30, 2024; however, the LEA can make payments using ARP ESSER funds up to 90 days after this date. Liquidation has a 90 day grace period only if your funds were previously allocated. 

B-3b (updated for 2023) Does the supplement not supplant requirement apply to ARP ESSER funds?

ARP ESSER funds do not include a supplement not supplant requirement and are not subject to ranking and serving provisions that define how a subrecipient distributes funds to schools. However, all ARP ESSER expenditures must be in line with all required cost principles of Uniform Grant Guidance (UGG) including being reasonable, necessary, and allocable. In addition, the program does contain a state-level Maintenance of Effort requirement, which is designed to keep states from substantially reducing their support for K-12 education.  

Please note that the use of ESSER funds does not override the supplement-not-supplant requirements of other programs. For example, replacing local funds with ESSER funds to support the delivery of special education programs may result in an LEA reporting to meet the maintenance of effort (MOE) compliance requirements of IDEA. While LEAs may use ESSER funds to support the delivery of special education, this should only be done to supplement the use of state and local funds already allocated to the program. When planning for the use of ESSER funds, LEAs should consider if similar implications exist related to other federal programs.  

While these funds can also be used for maintaining the operation and continuity of LEA services, including to employ existing or hiring new LEA and school staff, it is important to consider how staffing will be impacted when federal funding is no longer available. PDE advises that LEAs only use the funds for this purpose as part of a larger long-term financial plan. 

B-3c (not updated for 2023) What are the federal revenue codes and funding source codes for the federal COVID-relief funds?

While an updated Chart of Accounts for the 2021-22 FY will be available soon, the information below is an excerpt from the 2022-23 FY Chart of Accounts.

8740 CARES ACT, CRRSA ACT, and ARP ACT FUNDING (Revenues are not recorded to this account but to the following sub-accounts):

• 8741 ESSER – Elementary and Secondary School Emergency Relief Fund Emergency relief funds authorized by the CARES Act to address the impact that Novel Coronavirus Disease 2019 (COVID-19) has had, and continues to have, on elementary and secondary schools across the nation. Note – The second round of PCCD (winter) grants are being funded with ESSER and should be coded here. Funding source 986.
• 8742 Governor's Emergency Education Relief Fund (GEER) Emergency relief funds authorized by the CARES Act disbursed under the direction of state governors to address the impact of COVID-19. Examples include GEER Continuity of Education Grants, GEER funded Special Education Impact Mitigation Grants, and GEER postsecondary and adult education grants. Note – Some SECIM grants are being funded with IDEA rather than GEER funds which should be coded to 8512. FAI will list the applicable revenue code for each LEA payment. Funding source 988.
• 8743 ESSER II – Elementary and Secondary School Emergency Relief Fund Emergency relief funds authorized by the CRRSA Act to address the impact that Novel Coronavirus Disease 2019 (COVID-19) has had, and continues to have, on elementary and secondary schools across the nation. Funding source 989. 
• 8744 ARP ESSER (ESSER III) – Elementary and Secondary School Emergency Relief Fund Emergency relief funds authorized by the ARP Act to address the impact that Novel Coronavirus Disease 2019 (COVID-19) has had, and continues to have, on elementary and secondary schools across the nation. Funding source 990.
• 8745 GEER II – Governor's Emergency Education Relief Fund Emergency relief funds authorized by the CRRSA Act disbursed under the direction of state governors to address the impact of COVID-19. Also include here funding for GEER II Emergency Assistance for Nonpublic Schools (EANS). Funding source 991.
• 8749 Other CARES Act and CRRSA Act Funding CARES Act and CRRSA Act funding other than ESSER, ESSER II, and GEER. Examples include Higher Education Emergency Relief Fund (HEERF), Paycheck Protection Program (PPP), HSSAP, Pre-K Counts Cares, and Covid-19 funded Safety and Security grants disbursed by PCCD other than those funded with ESSER. Funding source 987. 

8750 CARES ACT, CRRSA ACT, and ARP ACT FUNDING CONTINUED (Revenues are not recorded to this account but to the following sub-accounts):

• 8751 ARP ESSER Learning Loss Funds authorized by the ARP Act for the implementation of evidence-based interventions aimed specifically at addressing learning loss. This code should not include the 20% of the LEA's 8744 revenue which is required to be reserved to address the impact of lost instructional time. Funding source 994 G-34 Revenue Codes: 2022-2023 FY
• 8752 ARP ESSER Summer Programs Funds authorized by the ARP Act for the implementation of evidence-based summer enrichment programs. Funding source 995
• 8753 ARP ESSER Afterschool Programs Funds authorized by the ARP Act for the implementation of evidence-based comprehensive afterschool programs. Funding source 996
• 8754 ARP ESSER Homeless Children and Youth Funds (ARP-HCY) Funds authorized by the ARP Act to support LEAs that serve homeless children and youth. Funding source 997
• 8755 ARP ESSER Emergency Relief for Other Educational Entities Funds authorized by the ARP Act to support other LEAs. These include funds provided to career and technical centers, intermediate units entities providing educational program to delinquent, neglected and at-risk youth and A-TSI schools. Funding Source 998
• 8756 ARP EANS II – Emergency Assistance to Non-Public Schools Funds authorized by the ARP Act to provide services or assistance to non-public schools. Funding source 979
  

B-3d (not updated for 2023) Which indirect cost rate should we use?

LEAs may utilize an unrestricted indirect cost rate when calculating indirect costs under ARP ESSER.

B-3e (updated for 2023) What if the amount expended is more than the scheduled monthly payment?

For the ARP ESSER quarterly fiscal reporting, an LEA is required to report the total cash disbursed (actual expenditures of funds, not obligations) on the project at the end of the quarter for which the report is filed. If an LEA files a quarterly report indicating a cash deficit (i.e., cash on hand is less than zero) and if the deficit is greater than 50% of the monthly payment amount, it will automatically initiate an accelerated payment during the next scheduled payment. Additional questions can be addressed to: ra-FAIECS@pa.gov. 

B-4a (not updated for 2023) What charges must be pre-approved by PDE?

All expenditures for equipment with a per-unit cost of $5,000 or more (including trailers and modular units), buildings, and land must be pre-approved by PDE. Prior approval is also required for travel and entertainment costs. 

B-4b (not updated for 2023) How do we determine if a contractor is suspended or debarred?

For contracts over $25,000, you must verify that the entity with whom you intend to do business is not excluded or disqualified. This must be done by either: (a) checking the federal System for Award Management  (SAM); (b) collecting a certification from that person, or (c) adding a clause or condition to the covered transaction with that person/entity. Maintain documentation support in the event it is requested during an audit or monitoring review. 

B-4c (not updated for 2023) What are the requirements for keeping inventory of products purchased with federal funds?

The LEA must maintain inventory records, purchase orders, and receipts for equipment (over $5,000) purchased, all computing devices, and special purpose equipment ($300 - $4,999), and must conduct a physical inventory every two years. Additionally, equipment and computing devices must be tagged with an appropriate label that identifies the funding source – i.e., ESSER I, II, or ARP ESSER. 

B-4d (updated for 2023) Can we use ARP ESSER funds for multi-year contracts?

Yes, but funds must be obligated within the period of availability (March 13, 2020 through September 30, 2024), costs must be allowable, and costs must be allocable and benefit the program during the program period. Contracts supported by ARP ESSER must have an end date on or before September 30, 2024. 

B-4e (not updated for 2023) Can an LEA do non competitive bidding (sole source)?

Maybe. An LEA may determine that its response to COVID-19 qualifies as a public exigency or emergency, and that competitive bidding represents a prohibitive delay. Under these circumstances, and to the degree doing so is consistent with the LEA's policies and procedures, an LEA could use noncompetitive procurement (See USDE ESSER FAQs, C-27).

B-4f (updated for 2023) Can ESSER funds be used for field trips?

All expenditures made with ESSER funds must meet the three-part test for allowability (i.e., there must be an eligible use under the ARP Act for the expenditure; the expenditure must assist the LEA to prevent, prepare for, or respond to COVID-19; and the expenditure must be reasonable and necessary under Uniform Guidance). It may be an allowable use of ESSER funds for an LEA to take a group of students that had been negatively impacted by the pandemic to a local science museum for hands-on learning experiences to re-engage them in school and with their peers. However, it would not be an allowable use of ESSER funds to pay for a routine, annual field trip that has not been adjusted or modified in any way because of the pandemic. 

B-4g (not updated for 2023) Can a LEA use federal funds to purchase gift cards?

Because of the difficulty in tracking whether funds have been used for an allowable purpose and the potential for waste or abuse, PDE generally prohibits the purchase of gift cards, store cards, or prepaid debit cards with federal funds. However, there are certain limited exceptions to this general rule. For example, USDE has specifically stated that "providing store cards/prepaid debit cards to purchase materials necessary for students to participate in school activities" is an allowable use of ARP-Homeless Children and Youth (HCY) funds. When using gift cards with ARP-HCY funds, an LEA must ensure all costs are reasonable and necessary and that the use of funds in this manner" aligns with the purpose and requirements of the HCY statute.  

Notably, under certain circumstances, federal ESSER funds may be used to provide a limited reimbursement (potentially via gift cards, store cards or prepaid debit cards) directly to parents or guardians to transport their students to and from in-person schooling. Otherwise, PDE will not approve the purchase or use of gift cards, store cards, or prepaid debit cards with ESSER funds.  

Contact your regional coordinator in the PDE Division of Federal Programs with questions regarding the use of ESSER funds for this purpose. 

B-4h (updated for 2023) Can LEAs use ARP ESSER funds to purchase school library materials?

Yes. School library materials (e.g., lendable print books, audios, videos), as well as digital content materials and subscriptions, are allowable expenditures of ARP ESSER funds where they meet the three-part test for allowability (is there an eligible use under the ARP Act; does the use assist the LEA in preventing, preparing for, or responding to COVID-19; and is the expenditure reasonable and necessary under Uniform Guidance). 

B-4i (updated for 2023) In meeting the ARP ESSER requirement to use at least 20 percent of its ARP ESSER allocation to address the academic impact of lost instructional time and address the disproportionate impact of COVID-19 on underserved populations, may an LEA include the costs associated with implementing an evidence-based strategy that advances this purpose?

Yes, the cost of providing services to students to address the academic impact of lost instructional time and address the disproportionate impact of COVID-19 on underserved populations may include reasonable and necessary activities to help implement an evidence-based strategy for advancing this purpose. For example, such costs might include expenses associated with professional development, cleaning the space where a program is held, providing snacks or meals to students who are staying at school late to participate in the enrichment activity, or transportation.  (see U.S. Education Department FAQs, A-4.b)

B-4j (not updated for 2023) May a LEA use ESSER and GEER funds to provide meals for students?

Yes, under certain circumstances. Typically, an LEA has other means of providing food services, such as through the U.S. Department of Agriculture (USDA) or other Federal programs. As a result, the Department encourages LEAs to use those Federal funds with the specific purpose of providing food services to students prior to using ESSER or GEER funds for this purpose. However, if such funding is not available, or additional funds are necessary, an LEA may use ESSER or GEER funds to provide meals if the need arises from or relates to recovery from the pandemic. For example, ESSER or GEER funds could be used to increase food service staff capacity; cover additional labor costs associated with serving meals to students during the pandemic; or support COVID-19 pandemic-related expenses, such as school meal service equipment/supplies, meal packaging, and transportation services. 

Please note that, since 2020, the USDA has provided nationwide flexibilities and waivers consistent with its existing authority and new legislation, including the recent Keep Kids Fed Act of 2022, which extends certain flexibilities to summer 2022 and through school year 2022-2023. Using this flexibility, USDA was able to provide temporary, higher reimbursement rates for school lunches and breakfasts served, as well as meals and snacks served in the Child and Adult Care Food Program. (see U.S. Education Department FAQs, C-16)

B-4k (not updated for 2023) May ESSER and GEER funds be used to cover the costs of waiving the outstanding school meals balance of a student from low-income backgrounds?

To the extent a low-income family's ability to pay for school meals has been impacted by the COVID-19 pandemic, an LEA may use ESSER or GEER funds to cover the student's school lunch balance. As noted in FAQ C-16, the Department encourages the LEA to first utilize funding and flexibilities provided by USDA in addressing the costs associated with providing school meals. (see U.S. Education Department FAQs, C-16.a)

B-5 (updated for 2023) What are the ARP ESSER reporting requirements for school districts and charter schools?

Recipients will be required to report on program implementation on a quarterly basis, with a final report due at the close of the ARP ESSER grant period. Quarterly and final program reporting will take place via eGrants. Additionally, recipients will complete regular quarterly fiscal reporting to continue monthly payments through Financial Accounting Information (FAI) system. Manual of Accounting and Financial reporting. 

Although reporting for ESSER I, ESSER II, and ARP ESSER funds will look similar, ESSER I, ESSER II, and ARP ESSER are different grant awards. As such, ARP ESSER funds must be tracked and reported separately from ESSER I and ESSER II funds. 

For more information, please see the section on "Investing with Transparency and Accountability" in the ARP ESSER Guidebook.

B-6a (updated for 2023) What is the Maintenance of Equity (MOEquity) provision and how does it impact LEAs?

The Maintenance of Equity (MOEquity) provision for LEAs is a requirement under ARP ESSER and only applies to school districts in Pennsylvania and not charter schools and other LEAs.   As a condition of receiving ARP ESSER funds, the ARP Act requires each school district to maintain equity for each "high-poverty school." 

Under section 2004(1) of the ARP Act, for each school identified by a school district as a high-poverty school, the school district may not, in fiscal years 2021-22 or 2022-23:

1. Reduce per-pupil funding (from combined state and local funding) by an amount that exceeds the total reduction, if any, in district per-pupil funding in all schools served by the district in such fiscal year; or
2. Reduce the number of Full-Time Equivalent (FTE) staff per-pupil by an amount that exceeds the total reduction, if any, in FTE staff per-pupil in all schools served by the district in such fiscal year.
   

In other words, per-pupil funding from state and local sources and staffing levels for high poverty schools may not be decreased by an amount that exceeds LEA-wide reductions in per-pupil funding and staffing levels for all schools served by the LEA.  High poverty schools are the 25 percent of schools serving the highest percent of economically disadvantaged students in the LEA. 

Additional information is available at:

• USDE – USDE MOEquity Guidance
• ARP ESSER Guidebook section titled, "LEA Maintenance of Equity Provision
• Maintenance of Equity (MOEquity)
  

PDE will provide updates as additional information as it becomes available from the U.S. Education Department.

B-6b (updated for 2023) Must an LEA meet both MOEquity requirements?

Yes. An LEA that receives ARP ESSER funds must maintain both fiscal and staffing equity.

B-6c (updated for 2023) Are there any exceptions from the MOEquity Requirements?

The ARP Act contains several exceptions to the LEA MOEquity requirement. The requirement does not apply if the LEA:

1. Has a total enrollment of less than 1,000 students;
2. Operates a single school;
3. Serves all students within each grade span with a single school; or,
4. Demonstrates an exceptional or uncontrollable circumstance.

USDE clarified in their USDE MOEquity Guidance (see FAQ #32) that some LEAs for which an exception above does not apply could be eligible for a delay in the implementation in the MOEquity requirement if the LEA can certify that it did not and will not implement an aggregate reduction in combined state and local per-pupil funding in 2021-22 and 2022-23 (i.e., the LEA is not facing overall budget reductions).

For example, USDE recognizes many localities are still facing fluctuating school enrollments and uncertain revenue collection because of the pandemic. Given such challenges due to the pandemic, USDE has determined that these circumstances continue to be an example of "exceptional or uncontrollable circumstances" that justify a limited exception to the local MOEquity requirements for the 2022-2023 school year in instances in which there is no aggregate reduction in combined state and local per pupil funding in FY 2023 in the LEA.

Therefore, an LEA experiencing these circumstances may demonstrate that it is excepted from the MOEquity requirements if it certifies that it will not implement an aggregate reduction in combined state and local per-pupil funding in FY 2023 (i.e., is not facing overall budget reductions).

B-6d (updated for 2023) Does MOEquity apply to all LEAs?

No.  In Pennsylvania, the ARP Act's MOEquity requirement applies only to school districts. Other LEAs, including charter schools, are exempt from MOEquity requirements, including the filing of an exemption certification.

B-6e (updated for 2023) What does a LEA need to submit to PDE regarding their MOEquity Status?

All school districts must complete the MOEquity Interim Report form in eGrants for both 2021-22 and 2022-23.  A school district will either certify that a relevant exemption applies or indicate that no exemptions apply and that the district will comply with MOEquity requirements.  USDE requires PDE to report each school district's exemption status on the website.

The interim report certification is available under the Reporting and Guidelines section in their ARP ESSER application in eGrants by following on the Interim Reports link.  Supporting documentation is not required to be submitted with the certification but should be maintained in case it is requested during an audit or monitoring review. 

B-6f (updated for 2023) What type of documentation is required if an exemption applies?

If an exemption to the MOEquity requirement applies, the district must maintain documentation specific to the applicable exemption. For example, if the school district is exempt because it did not implement an aggregate reduction in combined state and local per-pupil funding in FY 2022 [school year 2021-2022] (i.e., is not facing overall budget reductions), then appropriate documentation of that calculation should be maintained.  USDE advises that automatically excepted LEAs maintain documentation supporting their exception in case it is requested during an audit or monitoring review.

B-6g (updated for 2023) Are federal ESSER funds included in MOEquity calculations?

No. MOEquity calculations, including the calculation to determine if a limited exemption applies, are focused only on state and local funding. Federal funds are excluded.  USDE MOEquity Guidance.

B-6h (updated for 2023) What is a high-poverty school?

USDE defines a "high-poverty school" as a school that is in the highest quartile of schools served by the LEA based on the percentage of economically disadvantaged students in the school. Where the MOEquity requirement applies, an LEA must identify their high-poverty schools and report that information to PDE.  In PA, these requirements are only applicable to school districts and not charter schools and other LEAs.

B-7a (not updated for 2023) If an LEA spends under $750,000 in federal funding during a fiscal year, would it still be required to engage in a Single Audit?

No. The Single Audit requirement applies only to non-federal entities that expend $750,000 or more in federal funds in one fiscal year. However, with the addition of ESSER I and II and ARP ESSER funds to regular grant programs such as Title I-A and IDEA, there are very few LEAs throughout the commonwealth that will not meet this requirement. 

B-7b (updated for 2023) If my LEA is receiving ARP ESSER funds due to an A-TSI designation of a school within the LEA, must those funds be spent at that A-TSI school?

Yes. If an LEA receives a portion of the $14 million in ARP ESSER set-aside funds for A-TSI-designated schools, those funds must be used exclusively on the LEA's A-TSI designated school(s). Access the allocations of ARP ESSER set-aside funds for A-TSI-designated schools.  

B-7c (updated for 2023) Must a subrecipient reserve a portion of its ARP ESSER allocation to support equitable services for local nonpublic schools?

No. Like ESSER II, the ARP Act (section 2002) includes a separate program to provide emergency aid to nonpublic schools.

B-8a (updated for 2023) What Uniform Grant Guidance (UGG) must we follow for construction contracts?

Contracts must contain applicable provisions from (2 CFR 200.327 (Appendix II to Part 200). This includes provisions from the Davis-Bacon Act, Contract Work Hours and Safety Standards Act, Clean Air Act, Federal Water Pollution Control Act, and the Byrd Anti-lobbying Amendment. When the LEA requests prior approval for a construction expenditure from PDE, they must complete an approval form that includes assurances related to these provisions. 

For further information, please refer to question B-6  from the U.S. Education Department FAQs.

B-8b (not updated for 2023) Which ESSER-related expenditures require prior approval from PDE?

LEAs are required to obtain prior approval for certain expenditures in accordance with Federal Uniform Guidance. See 2 CFR § 200.407 for a list of items that require prior approval. For purposes of ESSER, LEAs must obtain prior approval from PDE to use ESSER funds for construction, capital expenditures (including equipment with a per-unit cost of $5,000 or more), buildings, and land. Prior approval is also required for travel and entertainment costs. 

• Construction means (A) the preparation of drawings and specifications for school facilities; (B) erecting, building, acquiring, altering, remodeling, repairing, or extending school facilities; (C) inspecting and supervising the construction of school facilities; and (D) debt service for such activities (ESEA section 7013(3), 20 U.S.C. § 7713(3)). 
• Capital expenditures means expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life (2 CFR § 200.1). 
• Equipment means tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000 (2 CFR § 200.1).  

B-8c (updated for 2023) How much detail must be included on the ARP ESSER Prior Approval Forms?

In completing ARP ESSER applications, remember to complete the prior approval forms if you are planning to engage in construction, capital expenditures (including equipment with a per-unit cost of $5,000 or more), or other relevant expenditures. See 2 CFR § 200.407. Prior approval forms are available within the ARP ESSER application. Prior approval forms will be reviewed with your ARP ESSER application. 

Please be sure to: 1) identify the allowable use under ARP ESSER; 2) explain how the expenditure meets the overall purpose of the ESSER funds, which is to prevent, prepare for, or respond to COVID-19; and 3) describe how the proposed expenditure is "reasonable and necessary" in compliance with the Cost Principles in 2 CFR Part 200, subpart E (2 CFR §§ 200.403-200.404). 

An LEA's explanation of the proposed use is critical. For example, an LEA's request to replace a roof will likely be disapproved if the roof replacement was scheduled, planned, or budgeted prior to the pandemic or constituted routine maintenance in response to longstanding health issues, including concerns with mildew, identified prior to March 13, 2020. 

However, an LEA's request to replace a roof likely would be approved if the LEA indicated that the roof replacement project allowed students to move to a wing of the building not previously used for instruction, allowing for utilization of new space, providing for social distancing of students, mitigating the spread of COVID-19, and maximizing efforts to ensure that students remain able to attend school in-person. 

B-8d (not updated for 2023) Can ESSER funds be used for construction or renovation projects scheduled prior to March 13, 2020?

Generally, no. ESSER funds must be used for expenditures intended to assist LEAs with preventing, preparing for, or responding to COVID-19. Projects underway prior to March 13, 2020, the start of the pandemic, do not have the sufficient COVID connection for allowability. However, a project planned or scheduled prior to the pandemic that has been or will be adjusted due to the pandemic could, in certain circumstances, be an allowable ESSER expenditure. An LEA would need to ensure that the project meets the three-part test for allowability and that all prior approval forms are submitted. 

B-8e (not updated for 2023) Can ESSER funds be used to meet future needs, such as a boiler, roof replacement etc.?

No. ESSER funds must be used for expenditures intended to assist an LEA with preventing, preparing for, or responding to COVID-19. An anticipated need, such as a roof replacement, does not meet the three-part test for allowability. 

B-8f (updated for 2023) Must all expenditures occur by the end date of the ARP ESSER grants (e.g., September 30, 2024 for ARP)?

Obligations must occur by the end date of the grant. Funds must be liquidated (i.e., final payments made) no later than 90 days after the end of the grant period on September 30, 2024. 

For example, if an LEA enters into a contract for a building renovation using ARP ESSER funds, the contract end date cannot extend beyond September 30, 2024; however, the LEA can make payments using ARP ESSER funds up to 90 days after this date. 

B-8g (updated for 2023) Can an LEA split up a project by using state funds for construction and federal funds for services, goods, etc.?

Yes. An LEA may combine funds from multiple sources to fund a project. Uniform Guidance and other federal requirements would apply to expenditures made with federal funds. The LEA must comply with state/local procurement policies for all expenditures using state or local funds. Additionally, the LEA must complete a prior approval form (if applicable), which includes information about other funds. 

B-8h (updated for 2023) What is the LEA responsibility for monitoring of construction performance?

LEAs engaging in construction or renovation projects using federal ESSER funds must maintain oversight of those projects to ensure that contractors perform the work in accordance with the terms, conditions, and specifications of the contract (see 2 CFR 200.308(b)).  To monitor and ensure performance, LEAs should, at a minimum, conduct on-site technical inspections and maintain certified percentage of completion data. 

B-8I (updated for 2023) What happens if there are construction delays?

In the event of Simultaneous Demand Labor and Materials Shortages, to be allowable, all costs must be incurred during the grant budget period. USDE does not have the authority to extend the period of availability. The LEA should have a backup plan to use funds within the grant period. 

B-8j (not updated for 2023) Can an LEA use cooperative purchasing programs to purchase with ESSER funds?

Yes, cooperative purchasing programs may be used. An LEA receiving federal ESSER or GEER funds must follow proper procurement standards in accordance with Uniform Guidance. Cooperative purchasing programs may be used if all federal procurement standards are met. When expending federal funds, LEAs should consult with their solicitors and ensure they are in compliance with all Uniform Guidance requirements.  

B-8k (not updated for 2023) Can ESSER funds be used on Guaranteed Energy Savings Act (GESA) projects?

Yes. If the expenditure meets the three-part test for allowability, an LEA may use ESSER funds on GESA projects, provided the LEA documents the following:

1. A fair price was acquired;
2. The LEA has complied with federal procurement requirements; and
3. The LEA has complied with state and local procurement policies and procedures. 
   

B-8 l (not updated for 2023) Can an LEA use ESSER funds to repave an existing parking lot or road?

Probably not. To qualify as an allowable use of ESSER funds, the LEA must ensure that the expenditure meets the three-part test for allowability:

• There must be an articulated eligible use under the ARP Act;
• The expenditure must assist the LEA in preventing, preparing for, or responding to COVID-19; and
• The expenditure must be reasonable and necessary under Uniform Guidance.

In the case of repaving an existing parking lot or road, it may be difficult for an LEA to identify an appropriate COVID-19 connection (i.e., how the repaving assists the LEA in preventing, preparing for, or responding to COVID-19) that would make the expenditure allowable.

If you have further questions on this particular topic, you should reach out to your regional coordinator in the PDE Division of Federal Programs.

B-8m (not updated for 2023) Can ESSER funds be used for outdoor classrooms, outdoor furniture, tents/coverings, picnic tables, and groundwork such as concrete or cement?

Yes, ESSER funds may be used to construct outdoor classrooms, meeting spaces, and eating areas. PDE recommends that LEAs solicit stakeholder input to signify the community's desire for these outdoor spaces and that the LEA be prepared to justify the use of the outdoor space as a COVID-19 mitigation effort. 

For more information, please see the ARP ESSER Guidebook section titled, "Can ARP ESSER Fund Facilities Improvements?"

B-8n (not updated for 2023) To install an HVAC system, we first need a power upgrade. Could we use ESSER funds to pay for all the work needed for the power upgrade and the HVAC install to enhance the air quality?

Yes, ESSER funds may be used for any of the costs necessary to install an HVAC system. For additional information, refer to question B-7 from the U.S. Education Department FAQs.

B-8o (not updated for 2023) Can ESSER funds be used to purchase new food service equipment so we can spread out the students to a new cafe space?

ESSER funds may be used to construct additional space for food consumption to allow students to maintain physical distancing. The LEA would need to justify that new food service equipment is necessary for the construction of additional space for food consumption.

B-8p (not updated for 2023) Can an LEA use ESSER funds to pay for lead mitigation or asbestos abatement?

Yes. An LEA can use ESSER funds to pay for lead mitigation or asbestos abatement if the project meets the three-part test for allowability. The LEA must articulate that the project is an eligible use under the ARP Act; the expenditure assists the LEA in preventing, preparing for, or responding to COVID-19; and the expenditure is reasonable and necessary under Uniform Guidance.

For example, renovation of an existing building—including asbestos abatement and/or lead remediation—to prepare previously unused space for instruction to maximize the LEA's efforts to social distance students and mitigate the spread of COVID-19—could be an allowable expenditure of ESSER funds. However, using ESSER funds for lead remediation and/or asbestos abatement that was identified, planned, or known prior to the pandemic or for which there is no COVID connection would not be allowable.

B-8q (not updated for 2023) Can an LEA use ESSER funds to buy land or a building?

It depends. To buy land or a building, the expenditure must meet the three-part test of allowability (i.e., the LEA would need to articulate the eligible use under the ARP Act; how the expenditure assists the LEA prevent, prepare for, or respond to COVID-19; and that the purchase of land or a building is reasonable and necessary under Uniform Guidance). Additionally, the LEA must seek prior approval from PDE. 

An LEA purchasing land or a building must also review section 200.311 of Uniform Guidance, which outlines the provisions relating to title, use, and disposition of real property purchased with a federal award. LEAs should also be aware of lengthy reporting requirements that apply to such purposes (see section 200.330).

B-8r (not updated for 2023) Can a LEA use ESSER funds to pay for a building lease?

Any use of ESSER funds must meet the three-part test of allowability. In some cases, payment of a lease may be appropriate, such as leasing space for a finite period, within the grant period, to implement mitigation measures. In other cases, however, payment of a lease may not be allowable. For example, ESSER funds may not be used to pay an existing and ongoing lease, since there would be no connection to COVID-19.

B-9a (not updated for 2023) Can ARP ESSER funding be used to address workforce shortages?
LEAs are reminded that ESSER funds may be used to address teacher and staff shortages impacted by the pandemic. The U.S. Department of Education (USDE) released guidance outlining how states could use ESSER funds to address staff shortages. Access the USDE Dear Colleague letter. 

B-9 b (not updated for 2023) Can an LEA use ESSER funding to increase the base teacher salary or provide bonuses to teachers?
ARP ESSER funds may be used to pay stipends, bonuses, or salary for teachers if the LEA can connect the compensation to issues resulted from COVID-19. However, LEAs are strongly cautioned against raising salaries to a level that they will not be able to maintain beyond the funding period. Stipends and bonuses for additional responsibilities are the most prudent method of compensating educators using one-time funds such as ARP ESSER. 

B-9c (updated for 2023) Can an LEA use ARP ESSER funding to pay for retroactive pay increases?
An LEA may use ARP ESSER funds to provide "premium pay" or other additional compensation for teachers, as described in the ESSER/GEER FAQs (See  D-6). Consistent with these provisions, an LEA may, for example, establish a plan to retain educators because of the pandemic by using ARP ESSER funds to provide enhanced compensation to current teachers dating back to March 13, 2020, when the national emergency was declared. Updated ESSER and GEER FAQs 12/7/22 on USDE Website. 

B-9d (not updated for 2023) Can ESSER funds be used for tuition reimbursement to incentivize current teachers to obtain certifications in high-need and hard-to-fill areas such as Special Education, Secondary Math, and Secondary Science?
Yes, ARP ESSER funds may be used to build capacity within the educator workforce. 

B-9e (not updated for 2023) Can an LEA use ESSER funds to hire or increase the pay for substitutes?
Yes. LEAs can use ESSER funds to address COVID-19-related staffing shortages and maintain in-person instruction. This could include pay for substitute teachers or increasing the pay to substitutes to incentivize participation. Expenditures for this purpose would be allowable, provided the LEA detailed that the use met the three-part test for allowability in its ESSER application.

B-9f (not updated for 2023) Can ESSER funds be used to hire staff for COVID case management and contact tracing responsibilities for an LEA?
Yes. ESSER funds may be used to develop strategies and implement public health protocols including, to the greatest extent practicable, policies in line with guidance from the CDC for the reopening and operation of school facilities to effectively maintain the health and safety of students, educators, and other staff. This may include expenditures related to hiring staff to assist in contact tracing, case management, and other LEA COVID mitigation strategies, as long as those expenditures meet the three-part test for eligibility. 

B-9g (not updated for 2023) How can a LEA use ESSER Funds to Address Bus Driver Shortages?

We recognize that many LEAs are experiencing a significant and serious impact from the national shortage in school bus drivers and want to assure you that we are examining ways to address this issue from every possible vantage point. 

USDE released additional guidance for LEAs on using ESSER funds to provide student transportation. The FAQs include guidance on how ESSER funds can be used for transportation to and from after school and enrichment activities and how ESSER funds can be used to address bus driver shortages. Access the USDE guidance on ESSER funds for student transportation.

Of course, all of these are temporary solutions with limited reach. As we work to explore additional, state- level strategies, we invite you to share best practices with us and with your colleagues, as we hope to do with you. Please contact your regional coordinator in the PDE Division of Federal Programs with any questions regarding the use of ESSER funds for these purposes. 

B-9h (not updated for 2023) Can ESSER funds be used to establish a scholarship program to encourage graduating high school students to enter education and work for our LEA?

ARP ESSER funding may be used for teacher recruitment efforts. PDE recommends that if scholarships are provided to prospective teachers, the district or charter school enter into an agreement with the prospective teacher that commits them to serve as a teacher for a period as a repayment of their scholarship. Reverse scholarships may be utilized as a retention strategy as well, whereby teachers are offered funds to pay off student loans or toward continuing education for each year that they are retained by the district/charter school beyond a certain period. When devising these programs, however, remember that all funds must be obligated by the end of the grant award period.

B-10a (updated for 2023) May we use ARP ESSER funds to upgrade teacher devices for more reliable connection?

Yes, ARP ESSER funds may be used to upgrade devices for teachers, students, and staff members. 

B-10b (updated for 2023) May we use ARP ESSER funds on cybersecurity?

Yes, ARP ESSER funds may be used to enhance the LEA's cybersecurity infrastructure. 

B-10c (updated for 2023) Can we pre-pay a software contract in the final year of the grant?

Possibly. The software contract must be reasonable and necessary in response to the COVID-19 pandemic, and pre-payment for the year must be a normal course of business practice. 

B-11a (updated for 2023) Do we need to plan for 6 feet or 3 feet of space? Masks or no masks?

ARP ESSER requires school districts and charter schools to develop mitigation plans in line with the most recent CDC guidance, with plans being updated every six months as needed. Please see for current guidance. Help Children Stay Healthy at School | CDC, Masks in Schools.

B-12a (not updated for 2023) Who can I contact for more information about ESSER funding?

School districts ,charter schools, AT-SI designated schools, and neglected and delinquent institutions may contact their regional coordinator in the PDE Division of Federal Programs.

All other questions can be directed to RA-EDARPESSER@pa.gov.

C-1a What are the final ARP ESSER allocations?

Final ARP ESSER allocations are available on PDE's website. 

C-1 b How were estimated ARP ESSER allocations determined?

Allocations reflect distributing 90 percent of Pennsylvania's ARP ESSER funding to eligible school districts and charter schools via the required Title I-A formula, based on each entity's state-determined fiscal year 2020-21 Title I-A share. 

C-1c Since ARP ESSER funds are administered to school districts and charter schools using the Title I-A formula, does that mean Title I-A regulations apply?

No. Although ARP ESSER funds are distributed to school districts and charter schools based on Title I-A allocations, these are not Title I-A funds; rather, ARP ESSER is its own, separate program. Accordingly, ARP ESSER funds must be awarded and tracked separately from Title I-A funds. ARP ESSER funds also must be tracked separately from ESSER I and ESSER II funds.  

C-1d Is there any difference in the amount of funds, or allowable uses of funds, for a school that implements a schoolwide program under Title I-A as compared to a school that provides targeted support under Title I-A?

No. The requirements of Title I-A do not apply to ESSER funds. An LEA may support any of its schools using ESSER funds for any allowable activities without regard to Title I eligibility, program type, or funding. ESSER funds are not subject to ranking and serving provisions that define how an LEA distributes Title I funds to schools. An LEA may support any school within the LEA, or it may target funds based on poverty, indication of school needs, or other targeting measures, so long as the Maintenance of Equity provision is met.

C-2a When and how do school districts and charter schools apply for ARP ESSER funds?

The LEA ARP ESSER grant application opened in eGrants on Monday, May 24, 2021. 

Eligible school districts and charter schools were to submit an application to PDE in the eGrants system, using existing credentials by the requested due date of September 1, 2021. We requested that applications be submitted by September 1, 2021. 

C-2b Is there a deadline to apply for ARP ESSER funds?

No; however, eligible school districts and charter schools are encouraged to apply by September 1, 2021, and all LEAs that intend to receive ARP ESSER funding must submit their updated Health and Safety Plans to PDE by July 30, 2021. Please note that LEAs are not required to obligate their ESSER I and ESSER II grant funds prior to applying for and obligating ARP ESSER funding. 

C-2c Must LEA's ESSER application be approved prior to incurring costs?

PDE has received inquiries from LEAs related to the recognition of stimulus funds on their Schedule of Expenditures and Federal Awards (SEFA). The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted on March 27, 2020, provided for ESSER I funds. On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act appropriated ESSER II funds, and on March 11, 2021, the American Rescue Plan (ARP) Act provided ARP ESSER funds. Under all three rounds of ESSER funding, the U.S. Department of Education (USDE) authorized pre-award costs dating back to March 13, 2020, when the national emergency was declared. (See ARP ESSER Fact Sheet, p. 4). 

For purposes of reporting ESSER funds on the SEFA, the 2022 compliance Supplement (PDF) directs LEAs to include ESSER funding in accordance with the CFDA No. 84.425 and the corresponding subprogram designation (84.425D for ESSER I and II; 84.425U for ARP ESSER). In determining the timing of reporting the funds on the SEFA, 2 CFR 200.502 generally focuses on when the activity related to the federal award occurs and requires awards be included based on that activity. In most cases, this is after an award or subaward has been made; however, with ESSER, pre-award costs and activities are authorized. 

Accordingly, LEAs may include their ESSER I, ESSER II, and ARP ESSER allocations in the SEFA, even prior to receiving the final, approved subaward from the commonwealth. This is consistent with the professional judgement flexibility noted in the Government Audit Quality Center (GAQC) guidance. See GAQC Nonauthoritative Guidance on Reporting Certain COVID-19 Awards , updated April 14, 2021. 

Notably, USDE issued guidance to assist LEAs in planning for and incurring pre-award costs if they have not yet received an ARP ESSER award from their state. See USDE Guidance on ESSER Pre-Award Costs. Specifically, USDE emphasizes that a delay by a state to award ARP ESSER funds "does not restrict an LEA's ability to incur allowable costs that an LEA determines are appropriate and necessary." Id. The guidance continues: 

The allowability of pre-award costs means that an LEA may choose to incur allowable ARP ESSER costs even before it receives an award from its SEA. Under 2 CFR § 200.458, an LEA that has not yet received ARP ESSER funds to which it is entitled may use State or local funds to incur allowable costs and, once it receives its ARP ESSER award, reimburse itself for the allowable costs that it incurred before receiving the Federal emergency funds. 

Therefore, LEAs are not required to have a fully approved subaward prior to incurring allowable pre-award costs under ESSER I, ESSER II, or ARP ESSER.

C-3a When did/will eligible school districts and charter schools receive APR ESSER funding?

After a completed ARP ESSER application is submitted in eGrants, PDE will promptly move applications through the approval process and expect LEAs to begin receiving funds as early as August 2021. As with all federal funds, PDE will disburse payments on a monthly schedule. 

C-3b How will PDE administer ARP ESSER funding?

Consistent with its administration of other federal funds, including both ESSER I and II, PDE will reimburse allowable costs monthly through the Financial Accounting Information system.  

C-3c May a LEA use ESSER funds for allowable costs incurred prior to receiving grant funds?

Yes. An LEA may use ESSER funds for any allowable expenditure incurred on or after March 13, 2020, the date the President declared the national emergency due to COVID-19. 

C-3d What is the difference between "awarding" and "obligating" funds?

PDE awards funds when it makes a subgrant to an LEA or, in the case of the state reserve, when it enters a subgrant or contract with a subrecipient. ESSER funds are obligated when the subrecipient commits those funds to specific purposes, typically through the signing of a contract.

C-4 What is the Tydings Amendment period?

Under the "Tydings Amendment," any funds not obligated and expended during the period for which they were awarded become carryover funds and may be obligated and expended during the succeeding fiscal year. The ARP ESSER award period closes on September 30, 2023, however, under the Tydings Amendment, funds may be obligated through September 30, 2024.

C-5 What options can help a school district relieve strains in transportation?

Below are two immediate options that school districts may have to use funding under the Elementary and Secondary School Emergency Relief (ESSER) fund to relieve strains in local transportation services. 

Municipal transit authority agreements
In regions that have a robust public transit system, schools may be able to enter into agreements with municipal transit authorities to transport students. This cost can be charged to ESSER under one of several allowable activities, including providing principals and leaders with the resources necessary to address the needs of their individual schools or "other activities that are necessary to maintain the operation of and continuity of services." This is an allowable expense since the bus driver shortage has been caused or exacerbated by the pandemic. Further, federal grants management rules encourage intergovernmental agreements as they often allow goals to be accomplished more efficiently by leveraging existing systems.

Agreements with transit authorities to transport students may take the form of running a special route from centralized pickup or drop-off points or simply purchasing transit passes for students. Before engaging in any agreement, consider the following:

• Any agreement to transport students must be equitable. Consider the length of a route, the amount of additional walking, and the number of transfers that would be required for students residing in a particular neighborhood before asking them to take public transportation. It may be possible to rework school bus routes to maintain service to locations that are less transit accessible.
• Costs must be both reasonable and necessary. An agreement with a municipal transit authority should come at a reasonable cost and should not exceed the cost necessary to transport students. Students should be given adequate resources to take them to school and home, rather than a partial fare which would require additional family contributions and may result in bus passes not being used at all.
• Use of ESSER funds will be monitored closely, so it is important to implement safeguards to ensure that funds are being spent appropriately. This might mean purchasing "smart" transit passes that can be tracked, updated, and cancelled in cases of theft or fraud. A special "student" pass may also be issued which can be visually distinguished from other types of passes so that it can only be used by a student and not resold or used by another individual.
• Student safety is paramount. Working alongside municipal leaders, consider the safety of various routes, including limiting transfers and walking required – especially for younger students – and/or placing crossing guards at busy intersections. Schools and LEAs may also want to consider offering "last mile" resources to escort students to and from the nearest transit stop safely, including using crossing guards or "walking buses." 

Coordinate transportation with parents
A second option – as many of you may have seen or may be implementing yourselves – is to ask parents to transport their students to and from school. We recognize that this represents an additional burden for many parents, including lost wages or costs due to gas, tolls, and wear and tear on personal vehicles. For this reason, under certain circumstances, federal ESSER funds may be used to provide a limited reimbursement directly to parents or guardians to safely transport their students to and from in-person schooling. Considerations include: 

• If an LEA is experiencing severe challenges hiring and retaining the school bus drivers necessary to accommodate the LEA's mandated transportation needs. Auditors may expect clear documentation of need and the impact on students and schools.
• An LEA will need to develop a clear, objective methodology for the reimbursement that, in addition to other relevant factors, considers a student's actual days of in-person attendance, accounts for all students being transported in a given household or carpool, and other costs incurred by parents when determining the transportation reimbursement amount. Families with documented need should be prioritized to ensure that the cost charged to ESSER is reasonable and necessary.
• Equity is a key. Reimbursements should be reasonably constructed to ensure that students without access to personal vehicles have other options, and that reimbursements are based on documented need, supporting an equitable return to in-person schooling.
  
• We also urge you to implement reasonable precautions to ensure that the reimbursement will be used only for transportation-related expenses, given that ESSER is a federal grant and steps must be taken to ensure that funds are not used for unauthorized purposes. Using reimbursement methods and calculations to ensure funds are spent only on transportation-related expenses may be helpful.