Official Site of The State of New Jersey

The following are the procedures and forms for review and approval of district requests to use carryover Preschool Education Aid (PEA) balances. PEA is a dedicated, non-lapsing source of funds. PEA balances which are neither expended nor encumbered by year end are classified as deferred revenue in the financial accounts and statements of the district. Instructions for the calculation of deferred PEA balances were provided in Section II-20 of the audit program.

The PEA carryover funds form must be used for the following:

1. To adjust the anticipated carryover, once verified by the auditor, if it differs from the amount already budgeted; or
2. Request use of the actual anticipated carryover in the current year.

When actual carryover differs from anticipated:

1. If the actual carryover is less than anticipated, the district must amend its budget and plan to reflect the lower amount.
2. If the actual carryover is higher, the district must amend its budget and revise the current year’s preschool plan to use the additional funds.

Carryover budgeted in the subsequent years:

If a district elects to include the prior year’s carryover in its budget two years later, the carryover form is not required.

Recording and accounting:

• There's no requirement to separately track carryover revenue or expenditures in the system. Once approved, these funds are treated as current-year revenue and the calculation of deferred revenue amounts at June 30 will not require delineation as to year of origin.
  • The total carryover amount must be noted in the audit summary on line 90005.

The two-page carryover form is to be used for PEA carryover requests. The carryover form is like the transfer request form.

The form on page 1 includes the following:

• Why does the district have remaining PEA funds? (Explain any delays or changes that led to the accumulation of funds.)
• Has the district completed the goals and activities outlined in the approved PEA operational plan?
  • If not, does the district plan to use the remaining funds to finish those goals and activities?
• Does the district plan to use the remaining funds for a different purpose than originally planned?
  • If yes, explain why the change is needed.
• Lines for district and executive county business official signatures, dates and a line for the board resolution date.

Use page 2 to detail the accounts impacted by the carryover request. The form on page 2 includes:

1. A line for the carryover amount being budgeted and separate lines for each affected account.
2. Column (c) to record the appropriation amount before carryover. If the carryover request allocates funding on a line previously budgeted at $0 in the district planning budget, leave column 1 blank.
3. Column (d) to record the carryover amount for each specific budget line. The total of column (d) should equal the carryover amount listed at the top of the form. If the carryover request is amending an estimated carryover amount that was included in the original approved budget, enter only the amount of the change. In this case, the total of the column should be the difference between the actual carryover shown in the ACFR and the estimated amount included in the original approved planning budget, which may be negative.

In addition to the carryover form, the Statement of Preschool Education Aid included in the ACFR must be submitted with the carryover request to verify the available amount. If the annual audit has not been completed before the carryover request, any approved carryover is subject to verification upon receipt of the annual audit.

Districts must also submit a copy of the board resolution approving the use of the carryover funds and copies of the addendum with revisions to the original PEA operational plan indicating “Revised” and the dates the revisions were made. Please note that districts should not make changes to or revise the budget software in Homeroom.

Carry Over request and Budget Amendment Deadline:

• May 31, 2026 – Deadline to Submit Carryover Requests
  All districts must submit their carryover request no later than this date. No late submissions will be accepted.
• Within 15 Calendar Days of Submission: Carryover Request Approval
  The request will be reviewed, and formal approval or denial will be issued within 15 calendar days of receipt.
• Within 15 Calendar Days of Approval: Submit Budget Amendment
  Once the carryover request is approved, the district must submit a budget amendment reflecting the approved changes within 15 calendar days.

Note: The amended budget must accurately reflect the carryover adjustments. No additional carryover requests will be accepted after May 31.

Submit all carryover requests via email to the executive county business official, copying the Division of Early Childhood Services at carryover.request@doe.nj.gov. The executive county business official will be responsible for review and approval in conjunction with the Division of Early Childhood Services.

Please direct all questions to the appropriate county office.

Formal Notification
All districts will receive official written notification of the final decision regarding their carryover request.