IDEA Local Maintenance of Effort Requirements

Transcription

1 Division of Special Education and Student Services IDEA Local Maintenance of Effort Requirements VASBO Conference October 13, 2017 Tracie L. Coleman 1

2 Overview Due Dates Established in Supts Memo Supts. Memo posted on VDOE website nding/index.shtml Refer to Guidance Documents Maintenance of Effort Requirement Background Eligibility Compliance General Federal Grant Requirements 2

3 STRUCTURAL CHANGES In order to make the regulations clearer and to improve organization, USED reorganized the regs and renumbered the subsections under as follows: Eligibility standard Compliance Standard Subsequent Years Rule Consequences of failure to maintain effort 3

4 FOUR METHODS Most common fiscal monitoring finding. Not a substantive change from the prior regulation. Many commenters suggested the option to use the four methods needed to be more explicit. Clarifies that applies to both standards. Four methods are: local funds only; the combination of State and local funds; local funds only on a per capita basis; or the combination of State and local funds on a per capita basis 4

5 What is IDEA? IDEA reauthorized in 2004, implementing federal regulations released 2006 and Virginia s special education regulations were revised, most recently in CFR Part 300 Assistance to States for the Education of Children with Disabilities and Preschool Grants for Children with Disabilities. Virginia regulations set forth the requirements of the Board of Education regarding the provision of Special Education Each school division shall provide free and appropriate education, including special education for the children with disabilities residing within its jurisdiction. 5

6 IDEA MOE Expenditures The IDEA MOE expenses must include all costs associated with providing special education and related services to children and youth with disabilities that are above and beyond the costs of providing regular education programs to nondisabled students. Costs associated with capital outlay or regular education programs and services should be excluded from this expenditure calculation. Costs incurred through the Comprehensive Services Act (CSA) should not be included. As a result, these students would not be included in the per capita calculation. 6

7 IDEA MOE Expenditures Expenditures for special education and related services must be reported by source of funds (state and local only). Federal expenditures are not used to determine whether the division has met its MOE requirement. Each entry must represent actual expenditures and be consistent with federal and state definitions of special education and related services. The primary requisite for reporting expenditures for purposes of determining compliance with IDEA s MOE requirements is that divisions will only report those expenditures the division incurred for students with disabilities for whom the division is legally responsible. 7

8 IDEA MOE Expenditures The application includes final SFY 2015 division expenditures. However, due to the subsequent years rule, the SFY 2015 expenditures may not be used as the year to year comparison of local and local plus state expenditures for the provision of special education and related services. Expenditures entered in the IDEA MOE application may differ from special education expenditures reflected on Schedule A of the Annual School Report Financial Section (ASR) since they reflect a different student type (i.e., served vs. legally responsible). Expenditures reported in the ASR includes all funding sources (i.e., state, local & federal). 8

9 Expenditures Included Direct instruction/provision of special education service through an Individualized Education Program (IEP); Costs such as salaries and benefits (full and prorated costs) of staff who provide special education and related services; Costs associated with special transportation as called for in an IEP; Prorated proportionate costs of certain equipment purchases or certain construction costs; Costs associated with the provision of special education and related services for divisions responsible for the education program in a regional or local jail; Costs for providing special education and related services through a homebound or home-based model; and Tuition paid to another division. 9

10 Expenditures Excluded Tuition received from another LEA Tuition received by the serving school division for a student the serving division is not legally responsible for should be used to reduce the serving division s expenditures by the amount of the tuition received. General capital outlay; General transportation costs; Comprehensive Services Act (CSA) local match; and Any expenditures that apply to all students. 10

11 SAMPLE SPED EXPENSES Accurate and Consistent Reporting Are Critical Possible Special Education Categories Total ASR Total MOE Classroom Instruction Elementary 3,619, ,619, Classroom Instruction Secondary 832, , Inst. Support Student Social Work/Guidance Svc. Elem. 753, , Inst. Support Student Social Work/Guidance Svc. Sec. 317, , Inst. Support Elementary 189, , Inst. Support Secondary Inst. Support Media Svc Inst. Support School Admin. Elem. 2,779, , Attend./Hlth Health Svc. Districtwide 318, , Attend./Hlth Psych. Svc. Districtwide 205, , Attend./Hlth Speech Audiology Svc. Districtwide 297, , Pupil Transportation 1,805, , Operations & Maint 3,757, School Food Services 1,806, Technology 1,617, , Total ASR Special Education Expenses 18,790, ,351, ** includes prorated amounts Note: Yellow highlighted areas prorated based on time spent serving students with disabilities or services called for in an IEP Prorated District Wide Costs for ASR Instructional Support (61200 & 61400) Admin, Attend & Health (62200) Pupil Transportation Operations & Maint. School Food Technology Total Portion of Special Ed/Related Svc. District Wide Costs Prorated for MOE 218, (ie, Social Worker/Guidance/Media/Principal/Asst. Principal) 435, (ie, O/T P/T/Speech/Hearing/Vision /Psychologists/Nurses 44, (ie, sped routes/drivers) 0.00 (ie, sped equipment) 0.00 (ie, specialized food as called for in IEP) 12, (ie, Software/Hardware/Ipads used for SWD) 710, ** amount included in total MOE computed above Schedule A Amounts from ASR Amount Federal 749, State 631, Local 3,571, Total of Schedule A 4,952, Difference between ASR Schedule A & MOE Amount that may be added to either Local or State MOE expenses 398, NOTE: Amounts Should be based on costs of providing Special Education & Related Services as called for in an IEP 11

12 MOE Compliance The Individuals with Disabilities Education Act (IDEA), , requires the VDOE to determine that a school division complies with the maintenance of effort requirement to spend (four tests) at least the same total amount of either local or local plus state dollars or per capita amount of either local or local plus state dollars for the education of children with disabilities that the school division spent from the same source for that purpose in the previous year.. subject to the subsequent years rule 12

13 COMPARISON YEAR FOR THE ELIGIBILITY STANDARD: The comparison year is "the most recent fiscal year for which information is available, regardless of which method the LEA uses Change from comparison year for local funds only in the prior regulation Simplifies the requirement for LEAs, States, and auditors 13

14 APPLICABILITY OF EXCEPTIONS AND ADJUSTMENT TO THE ELIGIBILITY STANDARD Prior regulation silent on applicability of exceptions and adjustment ( and 205). Based on comments, decision was made to explicitly allow LEAs to consider the exceptions and adjustment: to the extent the information is available; the LEA took in the intervening year, or years between the most recent fiscal year for which information is available, and the fiscal year for which the LEA is budgeting; and the LEA reasonably expects to take in the fiscal year for which the LEA is budgeting. 14

15 SUBSEQUENT YEARS RULE First Set Out in Letter to Boundy (2012) Enacted into law in the 2014 and 2015 Appropriations Acts Final Regulations make the rule permanent and provide details on implementation and implications 15

16 WHAT IT MEANS? Defines what level of effort an LEA must meet in order to maintain effort in the year after an MOE failure The level of effort an LEA must meet in the fiscal year after it fails to maintain effort is the level of effort that would have been required in the absence of that failure, not the LEA s reduced level of expenditures This has an impact on both the eligibility and compliance standards 16

17 LEA s Eligibility for IDEA Established under Subpart C of the regs An LEA is eligible for assistance under IDEA for a fiscal year if the agency submits a plan that provides assurances to the SEA that the LEA meets each of the conditions in through Assurances are included with the division s Annual Plan Application 17

18 Annual Plan Application The Annual Application (aka Annual Plan) is the LEA s application to request federal special education funding. Includes, in part, the following: Assurances of legal compliance; Updated information regarding local special education advisory committees (LAC), local & regional jails, implementation of previous application; and Proposed budgets 18 18

19 Workbook Tabs Welcome LEA Instructions Cover & Certifications LEA Assurances & Certifications LEA Local & Regional Jails (Not applicable for SOPs) Implementation Narrative MOE Eligibility (SOPs will submit separately) CEIS & PSA (Not applicable for SOPs) Section 611 Section

20 LEAs Required to Meet MOE Requirements Spend at least the Same Amount in Local or Local plus State Funds in Current Year as Spent in Prior Year Further Requires LEA to Both Budget in each Subsequent Year at least the Same Amount that it Expended in the Most Recent Prior Year for Which Information is Available and Expend Year to Year the Amount it Expended in the Prior Year May Consider Allowable Exceptions Taking Place During FY MOE Eligibility 20

21 MOE Planning/Eligibility Report the projected budget for and compare against actual expenditures; subject to the subsequent years rule Divisions Must Budget Enough to Meet MOE Requirements If enough wasn t budgeted, ineligible to receive funding the next year and Divisions may have to repay funds if MOE is not met, further analysis by VDOE will be required

22 IMPACT OF METHOD ON THE SUBSEQUENT YEARS RULE To determine required level of effort, must look back to most recent fiscal year in which LEA maintained effort. But must look back to the most recent fiscal year in which the LEA met MOE using the same method. For example, LEA wants to use State and local funds (total) to meet the eligibility standard in FY LEA failed to meet MOE in FY using that method LEA met MOE in FY using that method LEA must use FY as the comparison year 22

23 SUBSEQUENT YEARS RULE AND ELIGIBILITY STANDARD Subsequent Years Rule: Follows the method: comparison year = the most recent fiscal year for which information is available and for which LEA met MOE using the same method For example, LEA wants to use State and local funds (total) to meet the eligibility standard in FY LEA has information for FY , but failed to meet MOE in FY using that method LEA Met MOE in FY using that method LEA must use FY as the comparison year 23

24 MEETING ELIGIBILITY STANDARD NO MOE FAILURE Example of How an LEA May Meet the Eligibility Standard in Using Different Methods (same table as Table 7 in Appendix E) Fiscal Year Local State and local funds Local funds Per capita State/local Per capita Child Count $500* $1,000* $50* $100* Unknown Comparison Year Based on Most Recent Data Available Required Budget Amount $500 $1,000 $50 $100 *The LEA met the compliance standard using all 4 methods. 24

25 MEETING ELIGIBILITY STANDARD WITH MOE FAILURE Fiscal Year Local State and local funds Local funds Per capita State/local Per capita Child Count $550* $1,200* $55* $120* $500** $1,000** $50** $100** Unknown Comparison Year Based on Most Recent Data Available Required Budget Amount $550 $1,200 $55 $120 *=Met MOE ** =Failed MOE 25

26 COMPARISON YEAR FOR THE COMPLIANCE STANDARD The comparison year is the fiscal year, based on when the LEA met MOE using that method (meet one of the four methods/tests) Simplifies the requirement for LEAs, States, and auditors 26

27 SUBSEQUENT YEARS RULE AND COMPLIANCE STANDARD Subsequent Years Rule: Follows the method: comparison year= the most recent fiscal year in which the LEA met MOE using the same method For example: LEA wants to use State and local funds (total) to meet the compliance standard in FY LEA failed to meet MOE in FY using that method LEA Met MOE in FY using that method LEA must use FY as the comparison year 27

28 MEETING COMPLIANCE STANDARD WITH MOE FAILURE AND SUBSEQUENT YEARS RULE Fiscal Year Local State and local funds Local funds Per capita State/local Per capita Child Count $500* $1,000* $50* $100* $450** $900** $45** $90** 10 Amount required to meet MOE $500 $1,000 $50 $100 *= Met MOE **= Failed MOE 28

29 COMPLIANCE STANDARD AND SUBSEQUENT YEARS RULE: DIFFERENT METHODS FY Local Funds Total State and Local Total Local Funds Per Capita State and Local Per Capita Child Count $500* $950* $50* $95* $450** $950* $45** $95* $450** $900** $45** $90** $450** $950* $45** $95* *= Met MOE **= Failed MOE 29

30 CONSEQUENCES FOR FAILURE TO MAINTAIN EFFORT If LEA Fails MOE Compliance Standard, SEA is Required to Repay Federal Government Using Non-Federal Funds (or non-accountable Federal Funds) May require repayment from LEA Using Non- Federal Funds (or non-accountable Federal Funds) This is not new: based on section 452 of GEPA (20 U.S.C. 1234a) Clarify by making it explicit in regulations. Also clarifies how much must be returned 30

31 AMOUNT TO BE REPAID IN CASE OF LEA MOE FAILURE an amount equal to the amount by which the LEA failed to maintain its level of expenditures in accordance with paragraph (b) of this section in that fiscal year, or the amount of the LEA s Part B subgrant in that fiscal year, whichever is lower. 34 CFR (d) 31

32 Appendix E Appendix E Includes 10 Tables That Provide Examples of How to Calculate LEA MOE, including: Eligibility and compliance standards Subsequent years rule Applying exceptions and adjustment to eligibility Calculating per capita We encourage you to review these tables; VDOE will continue to provide additional guidance 32

33 EFFECTIVE DATE Effective Date was July 1, However, Subsequent Years Rule took affect for FYs and included in U.S. Appropriations Act 33

34 EFFECTIVE DATE AND ELIGIBILITY DETERMINATIONS Eligibility determinations for LEAs IDEA Part B sub-grants are due May 12 th States were not required to apply the new eligibility standard, if they were making the determination before July 1. However, VDOE implemented this standard for determinations 34

35 MOE Requirement There is no flexibility in the IDEA for any waiver or variance to a school division s MOE requirement Under certain conditions specified in the IDEA regulations, a school division may reduce the expenditures needed to meet its MOE requirement 35

36 MOE Allowable Exceptions/Adjustments The possible allowable exceptions specified in IDEA are below (a), The voluntary departure, by retirement or otherwise, or departure for just cause of special education or related services personnel (b), A decrease in the enrollment of children with disabilities (c), The termination of the obligation of the agency, consistent with this part, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the SEA, because the child (d), The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities , Adjustment to local fiscal efforts in certain fiscal years up to 50% of excess in allocation. Divisions must have Meets Requirements status and those taking advantage of this provision must use an amount of local funds equal to the reduction in expenditures for activities that could be supported with funds under the ESEA in the same school year it took this adjustment. CEIS and Local Determination status are a factor. 36

37 IDEA MOE Not Met? The VDOE will be required to pay the amount of the division s shortfall to the U.S. Department of Education The VDOE will then establish a payment plan for the division to reimburse the VDOE Federal funds cannot be used to make this payment 37

38 LEA Responsibilities Be familiar with the published Uniform Guidance Regulations (2 CFR Part 200) Expend Funds in Accordance with Approved Plan Ensure Procurement mechanisms conform to Federal and State laws and standards Document time & effort for employees funded from federal grant sources Maintain financial & programmatic records as required by Federal & State law General Rule Sole Use of property purchased with Part B funds Maintain a physical inventory of property purchased with Part B funds (Ipads, computers, etc.,) Submit Timely & Accurate Reimbursement Requests 38

39 Throughout the School Year? Spend Funds in Accordance with Approved Application Submit Application Amendments, if major change to how funds are being used Submit Budget Amendments, if necessary for category spending changes Submit Timely Reimbursement Requests Maintain Time & Effort Reports and other Supporting Documentation 39

40 SESS Budget & Finance Staff Members Contact Information Sundersingh Bala Emily Boothe Tracie Coleman Sherry Hubbard Martese Motley

41 Questions 41