Office of Student Learning & Partnerships
letter notifying it of an audit that will be conducted in June 2006. This particular audit will compare FY 2004-2005 expenditures with the base figure resulting from the FY 2003-2004 final audit.
An LEA or LEA consortium may submit written correspondence to the auditing firm prior to the audit. Typically this will notify the auditor that there were coding mistakes made by the LEA, and requesting that these changes be reflected in the OFA spreadsheet prior to initiation of the audit. The burden of providing documentation of these errors to OFA falls upon the LEA.
Under IDEA 1997 and IDEA 2004, there are four exceptions an LEA or consortium may invoke to assist in maintaining effort. More than one may be applicable in a given year. For further information regarding refer to the MOE description online ( ). To invoke one or more exceptions, an LEA must provide a letter to ODE and the auditing firm. The letter must clearly identify the exception(s) and a detailed statement of their fiscal impact.
It is possible that an LEA or consortium may submit a letter requesting both the opportunity to correct coding errors and to invoke exceptions.
Absent written correspondence from the LEA or consortium, the auditing firm will complete an initial audit based on certified figures from the current and previous year in question. When the audit is completed, a summary is forwarded to ODE:OSL&P by the firm. A letter is then issued by ODE:OSL&P to the LEA or consortium indicating a status of “pass” or “fail”. In either case, the letter documents the ESD expenses and the LEA expenses, and a total expenditure figure. If “pass”, these figures are added together to form the base amount against which the LEA will be compared the following audit year.
Starting with the FY 2003-2004 audit period, ODE:OSL&P reviews not only total expenditures but per capita expenditures. IDEA permits an LEA to “pass” on either basis. It is possible for an LEA or consortium to “fail” on the basis of total expenditures, but “pass” on the basis of expenditures per student on an IEP. An example of this would be a district whose enrollment declined by 10 students, but whose expenditures declined by only $5,000 from the previous year.
If in “fail” status, the LEA or consortium is given a time period within which it may submit information that could place it in a “pass” position. Again, the responsibility of providing updated documentation to ODE: OSL&P and the auditing firm falls upon the LEA or consortium.
Typically the updated information will inform ODE: OSL&P and the auditor that, 1) the LEA made coding mistakes and requests corrections be made in the OFA spreadsheet, 2) the LEA or consortium desires to invoke exceptions, or 3) the LEA would like to increase its audited base figure by using 20% of the increase in its IDEA Part B 611 funds from the previous year. (This 3rd option will apply only to audits falling under the auspices of IDEA