Office of Student Learning & Partnerships
1997. The final such audit will be conducted in the summer of 2006, comparing FY 2004-2005 general fund expenditures with FY 2003-2004 general fund expenditures.)
The penalty for failure to maintain effort in a given fiscal year is forfeiture of the entire IDEA Part B 611 Grant received by the LEA or consortium member districts during that same year. As audits are typically conducted one year in arrears, it is likely an LEA will have encumbered and liquidated these funds. As a result, the same amount is withheld from their most current year IDEA Part B 611 Grant.
Failing an audit hurts LEAs and the students with disabilities they serve. As a result, ODE:OSL&P and the auditing firm of Jones and Roth devote significant time and effort to help LEAs and consortiums consider all options, and to plan for future audits.
The primary contact within ODE:OSL&P is Eric Richards, Director of Operations. He can be reached at 503-947-5786 or . The primary contact at Jones and Roth, P.C. is Tricia Duncan at 541-434-7241 or .
As indicated earlier, the fiscal data currently being collecting for 2005-2006 will be subject to IDEA 2004. Final regulations for this new law are not expected to be promulgated until the fall of 2006.
Here are some implications for LEA MOE that OSL&P anticipates as a result of the new law and regulations (Source: OSEP June 2005):
a. Exception to the local Maintenance of Effort (MOE) requirements. For any fiscal year (FY) for which the federal allocation received by a local educational agency (LEA) exceeds the amount received for the previous FY, the LEA may reduce the level of expenditures by not more than 50 percent of the excess. [613(a)(2)(C)(i)] A is available online to assist LEA’s in calculating this exemption. ( )
b. Limitation on the exception to local MOE requirements. If a state educational agency (SEA) determines that an LEA is not meeting the requirements of Part B, including the targets in the state’s performance plan, the SEA shall prohibit the LEA from reducing its MOE under Section 613(a)(2)(C) for any fiscal year. [616(f)]
c. Authority for additional permissive use of funds. Funds provided to the LEA under Part B may be used to carry out a variety of listed activities, including: