Finding Text
50000 (Maintenance of Effort, Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Special Education Cluster CFDA/ALN: 84.173 & 84.027 (FY 2021-2022) Compliance Requirement: Maintenance of Effort Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 34, Subtitle B, Chapter III, Part 300, Subpart C, Section 300.203(a)(1)) states: For purposes of establishing the LEA's eligibility for an award for a fiscal year, the SEA must determine that the LEA budgets, for the education of children with disabilities, at least the same amount, from at least one of the following sources, as the LEA spent for that purpose from the same source for the most recent fiscal year for which information is available: i. Local funds only; ii. The combination of State and local funds; iii. Local funds only on a per capita basis; or iv. The combination of State and local funds on a per capita basis. The State of California Department of Education checks compliance with the federal code through the LEA?s completion of the Report SEMA within the Standardized Account Code Structure Financial Reporting Software Unaudited Actuals module. The Report SEMA calculates the LEA?s maintenance of effort (MOE) compliance by comparing the current year?s applicable expenditures to the most recent year that the LEA met the MOE. Condition The District did not meet the maintenance of effort requirement for the 2021-2022 fiscal year using any of the four tests noted in the federal code.Questioned Costs There were no questioned costs associated with the condition identified. Context The condition was identified as a result of our examination of Report SEMA within the Standardized Account Code Structure Financial Reporting Software Unaudited Actuals reporting package for the 2021-2022 fiscal year.Effect The District did not comply with Code of Federal Regulations, Title 34, Subtitle B, Chapter III, Part 300, Subpart C, Section 300.203(a)(1). Cause The condition appears to have resulted from the District?s decreased expenditure of state and local funds on Special Education programs. Repeat Finding No Recommendation The District should examine if any of the exempt reduction options apply to its situation. If none apply, the District should prepare for a possible reduction in federal Special Education/IDEA funding.