Finding Text
Criteria: Under 34 CFR 300.203, as a condition of receiving funds uner Part B of the Individual with Disabilities Education Act (IDEA), a local education agency (LEA) must budget, for the education of children with disabilities, at least the same amount from state and local funds as expended in the preceding fiscal year under the Eligibility Standard. Condition: For the fiscal year ended June 30, 2025, the District's budgeted expenditures for the education of children with disabilities from state and local funds were $628,704, which is $189,818 less than the $818,522 spent in the prior fiscal year. The District did not meet any of the allowable exceptions to the Maintenance of Effort requirements as outlined in 34 CFR 300.204 and 300.205. Questioned Costs: None. Context: Total expenditures for the Special Education Cluster were $245,474 for the year ended June 30, 2025. Effect: The District failed to meet the Maintenance of Effort requirement resulting in noncompliance with federal regulations for the Eligibility Standard. Cause: The District was unaware of this compliance requirement. Recommendation: We recommend the District implement procedures to monitor the Maintenance of Effort compliance throughout the year, including during the budgeting process. Management's Response: We are now aware of the compliance requirement and will monitor the Maintenance of Effort compliance under the Eligibility Standard going forward.