Federal Cash Requests - All PSUs
Federal Shutdown Update
As of this newsletter, it appears that DPI can still draw down cash from the US Department of Education and the US Department of Labor through GY26, despite the federal shutdown. Please see the notice from Superintendent Mo Green for more information on the status of various funding sources. We will keep you informed as we know more.
Grants Ending on or Before Sept 30, 2025
Please be reminded that there were several federal grants whose period of performance ended on or before September 30, 2025. SBS closed cash requests for Grant Year 2024 Federal funds, effective immediately following FRD 09/26/2025. However, PSUs will still receive funds in October during the September zero out for expenditures that are submitted in your September MFR.
As a reminder, September Datafiles are due tonight at 11:45. Please ensure you have recorded all expenditures, and if needed eligible encumbrances, to the appropriate grant year in your system. Funds not expended or reflected as valid encumbrances in your September MFR file will be reverted. The funds that will be reverted can be identified using the DART PSU Report 103: PSU Remaining Allotment Balance or the 4. Funds Available to Request Report in the Cash App. The list of ending grants was also posted on August 15th to our What's New page.
We have posted a list of allowable and unallowable object codes for encumbrances on our website. Please ensure that your encumbrances are recorded to the proper object codes, otherwise funds will revert. During the liquidation period of October 2025 through December 2025, the PSUs will receive their federal cash during the monthly zero out process based upon their encumbrances as of September 30, 2025. Encumbrances for these grants must be liquidated by December 31st.
Reminder: Grant year reporting means that expenditures and cash draws are all accounted by grant year for the federal grant funds. These must align. Please work with your software vendors if you are still unclear how to appropriately account for these funds using the new grant year code segment in the Chart of Accounts (COA).
If you have questions regarding these funds, please contact SchoolFinancialReporting@dpi.nc.gov.
CTE Program Improvement (PRC 0017) Cash Requests
SBS has received notice that the US Department of Labor is in position to provide cash for PRC 0017 following its transfer from USED. As a result, we have lifted the restriction on cash requests for these funds in the PSU Cash App.
Immediate Reversion Report - All PSUs
A report showing what reversion your PSU could expect to revert in funds that expired September 30, 2025 has been published in DART as “300. PSU Immediate Reversions.” The report is currently based on August MFR data. Please review and check expenditures, valid encumbrances, and invalid encumbrances. The report will be updated based on September MFR data during the September zero out and will be used to calculate allotment reversions.
21st Century Community Learning Centers - Non-LEAs/ERaCA Users
If you use ERaCA to access funds for the 21st Century Community Learning Center Program, please note that all GY 23 and GY 24 funds must have been expended on or before September 30, 2025. ERaCA will be open through October 31, 2025 for you to request reimbursement for these expenditures, but all expenditures must have been dated on or before September 30, 2025.
Legislative Update
The Governor has signed SL 2025-92 (HB 358) into law, which is another mini-budget. It allocates funding for five new Cooperative Innovative High Schools (CIHS) in Charlotte-Mecklenburg, Dare, Martin, Moore, and Rockingham counties. The legislation does not reinstate the funding for the Small Innovative High Schools or the Virtual CIHS that was cut in the August mini-budget (SL 2025-89 / HB125), but it does require DPI to maintain their allotment at FY2025 levels using existing funds.
Allotments Update
FY2025-26 Allotments - All PSUs
The following items of interest will be allotted this week:
- PRC 0055 – Cooperative Innovative High Schools
- Virtual CIHS and newly approved CIHS per HB358
- PRC 0110 – Title IV, Part B – 21st Century Community Learning Centers
- Approvals received as of September 29, 2025
Federal Initial Allotments
Federal initial allotments are under final review and will be allotted in the next two weeks for all Units with approvals-to-date as provided by the administrating program. DPI is verifying receipt of full Grant Awards which will allow for approved allotments at 100% instead of the necessary installment per funds available.
Allotment Transfers and Conversions - LEAs Only
The next batch of ABC transfers will close at midnight, Friday October 17th. Email-submitted transfer and conversion requests received by end of day October 17th will be allotted by October 23rd.
The Restart transfer module opened September 22, 2025, and the deadline for transfer entries is midnight, Friday, October 3rd.
If you have general allotment questions, please email allotments@dpi.nc.gov
Fiscal Year 2025 Refunds Clarification - All PSUs
SBS has updated the Droplet Refunds and Repayments Form to facilitate the submission of fiscal year 2024-25 overspent funds. This is intended to be a temporary solution until the new process is built within the PSU Cash Application. The following refund types are included:
To view your PSU's prior overspent funds, see the DART PSU Report 701 - State Overdraft Refunds and Repayments. This report will be updated every Friday as we receive and process refund checks. The amount of the repayment checks should not be more than the amount owed according to the SBS DART report.
Overdraft Penalties
Please note that NCDPI began charging penalties on October 1, 2025, with the exception of the "Audit Exceptions - State Overpaid Salary" portion of Report 701 which will begin on January 1, 2026. All LEAs have until December 31st to clear any exceptions that are generating amounts owed in that section. If you believe that section is accurate, you are welcome to submit repayment with payment for any other funds owed. If you are working to clear salary audits that are leading to amounts owed in that section due to system errors, please be sure that you have sent all supporting documentation to Salary@dpi.nc.gov. Please note that our focus will be on clearing overpaid salary exceptions until we have responded to all requests, so we will not be reviewing underpaid exceptions at this time.
As a reminder, SBS has posted a to assist PSUs. Questions regarding the new process can be directed to SchoolFinancialReporting@dpi.nc.gov.
Come Work for the School Business Team in Raleigh!
We have the following openings in our Raleigh, NC office:
More information can be found in the online job postings. If interested, please apply online by Friday, October 3rd, 2025. The positions are located in the Raleigh NC office.
From the Office of School Nutrition
Federal Funding Update
As we continue charging through a new school year, we want to express our deep appreciation for the opportunity to work alongside such passionate and committed professionals. Your tireless efforts to support students’ health and well-being are at the heart of everything we do. This year, we look forward to strengthening our collaboration and finding new ways to be responsive to your needs. Open communication and partnership remain our top priorities.
We have an important update regarding the potential government shutdown on September 30, 2025. As you may know, Child Nutrition programs are appropriated entitlements, which means they are eligible for meal reimbursement even during a federal shutdown. Under normal circumstances, the USDA acts in advance to release first-quarter meal reimbursement funds (covering October 1–December 30) to states, ensuring uninterrupted reimbursement payments.
However, as of now, USDA has not communicated any such plans, raising concerns about the timely release of funds. In response, our office has taken proactive steps to secure funding to cover your September meals (typically reimbursed after October 10th). Should the shutdown continue after these funds are exhausted, there may be delays in processing your October claims (which are normally reimbursed after November 10th).
We will keep you informed of any developments as we learn more. Our hope is that a government shutdown will not occur, in which case, there will be no need for further communication on this topic.
Despite these challenges, past, present, and those ahead, you continue to show up for your students in extraordinary ways. Together, we will keep finding new ways to support one another, strengthen our programs, and ensure every student receives the meals they need to thrive. Your ideas, feedback, and partnership are what make this work possible.
Questions? Contact SBS
Deadline Reminders
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DUE DATE
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TOPIC
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NEWSLETTER
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10/31/2025
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Annual Audit Report
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07/17/2025
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10/31/2025
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SS200 Full-Time Personnel Report
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08/15/2025
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