Finding 960247 (2023-001)

U.S. Department of Education – Passed-through the NYS Education Department Special Education Cluster (IDEA) - Special Education-Grants to States (IDEA, Part B), Special Education - Preschool Grants (IDEA Preschool); Assistance Listing Numbers 84.027 and 84.173; Project #0032-23-0408, #0032-23-0408; Grant Period – Fiscal Year Ended June 30, 2023 Significant Deficiency Compliance Requirement: Maintenance of Effort Criteria: According to the OMB Compliance Supplement, IDEA Part B funds received by a school district cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the school district from local funds, or a combination of state and local funds, below the level of those expenditures for the preceding fiscal year. To meet this requirement, school districts must meet (1) the eligibility standard using budgeted amounts and (2) the compliance standard using prior year’s expenditures. Condition: While the District did ultimately meet the necessary requirements for the compliance standards using actual expenditure amounts, the District did not complete the maintenance of effort calculator for compliance for the 2021/22 year with accurate information. Cause: The District inadvertently utilized incorrect expenditure amounts in the calculation. Effect: While the District did ultimately meet the necessary requirements for the compliance standards using actual expenditure amounts, the District’s maintenance of effort calculator for compliance was submitted to NYS Education Department (NYSED) with inaccurate information. Questioned Costs: None. Recommendation: We recommend the District develop a system to review the maintenance of effort calculator with all supporting documentation before submitting it to NYSED. District’s Response: The District’s response is included in their corrective plan.