MAINTENANCE OF EFFORT 101

Transcription

1 MAINTENANCE OF EFFORT 101 NCLB - The Law: SEC MAINTENANCE OF EFFORT. (a) IN GENERAL- A local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the State with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year. (b) REDUCTION IN CASE OF FAILURE TO MEET- (1) IN GENERAL- The State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency). (2) SPECIAL RULE- No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years. (c) WAIVER- The Secretary may waive the requirements of this section if the Secretary determines that a waiver would be equitable due to (1) exceptional or uncontrollable circumstances, such as a natural disaster; or (2) a precipitous decline in the financial resources of the local educational agency. Sec Definitions (13) COVERED PROGRAM- The term covered program' means each of the programs authorized by (A) part A of title I; (B) subpart 3 of part B of title I; (C) part C of title I; Maintenance Of Effort 101 1

2 (D) part D of title I; (E) part F of title I; (F) part A of title II; (G) part D of title II; (H) part A of title III; (I) part A of title IV; (J) part B of title IV; (K) part A of title V; and (L) subpart 2 of part B of title VI OMB Single Audit Compliance Supplement OMB A-133 G. Matching, Level of Effort, Earmarking 1. Matching See individual program compliance supplement for any matching requirements. 2.1 Level of Effort - Maintenance of Effort (SEAs/LEAs) ESEA programs in this Supplement to which this section applies are: Title I, Part A (84.010); SDFSCA (except the Governor s Program authorized under Section 4114) (84.186); Ed Tech (84.318); Title III, Part A (84.365); and Title II, Part A (84.367). As described in II, Program Procedures - General and Program-Specific Cross-Cutting Requirements, this requirement is a general cross-cutting requirement that need only be tested once to cover all major programs to which it applies. An LEA may receive funds under an applicable program only if the SEA finds that the combined fiscal effort per student or the aggregate expenditures of the LEA from State and local funds for free public education for the preceding year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding year, unless specifically waived by ED. An LEA s expenditures from State and local funds for free public education include expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities. They do not include the following expenditures: (a) any expenditures for community services, capital outlay, debt service and supplementary expenses as a result of a Presidentially declared disaster and (b) any expenditures made from funds provided by the Federal government. If an LEA fails to maintain fiscal effort, the SEA must reduce the amount of the allocation of funds under an applicable program in any fiscal year in the exact proportion by which the LEA Maintenance Of Effort 101 2

3 fails to maintain effort by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the LEA) (Section 9521 of ESEA (20 USC 7901)). In some States, the SEA prepares the calculation from information provided by the LEA. In other States, the LEAs prepare their own calculation. The audit procedures contained in III.G.2.1, Level of Effort - Maintenance of Effort, should be adapted to fit the circumstances. For example, if auditing the LEA and the LEA does the calculations, the auditor should perform steps a, b, and c. If auditing the LEA and the SEA does the calculation, the auditor should perform step c for the amounts reported to the SEA. If auditing the SEA and the SEA performs the calculation, the auditor should perform steps a. and b. and amend step c to trace amounts to the LEA reports. If auditing the SEA and the LEA performs the calculation, the auditor should perform step a. and, if the requirement was not met, determine if the funding was reduced appropriately Policy Guidance for Title 1, Part A: Improving Basic Programs Operated by Local Educational Agencies - April 1996 A r c h i v e d I n f o r m a t i o n Fiscal Requirements To ensure that Title I, Part A funds are used to provide services that are in addition to the regular services normally provided by an LEA for participating children, three fiscal requirements related to the expenditure of regular State and local funds must be met by the LEA. An LEA must-- 1. Maintain State and local effort; 2. Provide services in project areas with State and local funds that are at least comparable to services provided in areas not receiving Part A services; and 3. Use Part A funds to supplement, not supplant regular non-federal funds. Maintenance of Effort An LEA may receive its full allocation of Part A funds for any fiscal year only if the SEA determines that the LEA has maintained its fiscal effort in accordance with section of the ESEA. Maintenance Of Effort 101 3

4 Requirement Section provides that an LEA may receive funds under a covered program (Title I, Part A is a covered program) for any fiscal year only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of the LEA and the State with respect to the provision of free public education by the LEA for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year. Failure to Meet the Requirement The SEA shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which an LEA fails to maintain effort by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the LEA). For a year in which effort was not maintained, the lesser amount shall not be used for computing maintenance of effort in subsequent years. Waiver The Secretary may waive the maintenance of effort requirements if he determines that such a waiver would be equitable due to-- o o exceptional or uncontrollable circumstances such as a natural disaster; or a precipitous decline in the financial resources of the LEA. Section of the Title I regulations defines several terms applicable to calculating maintenance of effort. Expenditures to be included In determining whether an LEA has maintained fiscal effort, the SEA must consider the LEA's expenditures from State and local funds for free public education. Those expenditures include expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities. Expenditures to be excluded Expenditures for community services, capital outlay, and debt service are not to be included in the determination. In addition, expenditures made from funds provided by the Federal Government for which the LEA is required to account to the Federal Government directly or through the SEA are excluded from the determination. Maintenance Of Effort 101 4

5 "Preceding fiscal year" For purposes of determining maintenance of effort, the "preceding fiscal year" is the Federal fiscal year or the 12-month fiscal period most commonly used in a State for official reporting purposes prior to the beginning of the Federal fiscal year in which funds are available. [NOTE: The Department will be issuing regulations for Title XIV which includes the maintenance of effort requirements. Once published, the Title I maintenance of effort regulations will be repealed.] Oregon Title I Handbook Maintenance of Effort The Rule Maintenance of Effort requires districts to demonstrate that the level of state and local funding remains relatively constant from year to year. The statute states that a district may have their Title I funds reduced to the degree the district has not maintained its fiscal efforts as required by the Elementary and Secondary Education Act (ESEA). The state must determine that either the combined fiscal effort per student or the aggregate expenditure of the district from state and local funds for free public education for the preceding fiscal year was not less than 90% of the combined fiscal effort. In determining whether a district has maintained fiscal effort, the state must analyze the district s expenditures from both state and local funds for free public education. The Compliance supplement states that the district s expenditures include expenditures for: Administration Instruction Attendance and health services Pupil transportation Operations and maintenance Fixed charges and Net expenditures to convert deficits for food services and student body activities Maintenance Of Effort 101 5