ÌÇÐÄvlog¹ÙÍø

The purpose of this letter is to alert local educational agencies (LEAs) to the upcoming release of fiscal year 2023 (school year 2022–2023) preliminary compliance reviews for Individuals with Disabilities Education Act, Part B (IDEA-B) LEA maintenance of effort (MOE). This letter also provides guidance about MOE compliance and steps LEAs should take to prepare for the preliminary compliance reviews.

IDEA-B LEA MOE Compliance Process

If an LEA receives IDEA-B grant funds, the MOE requirement specifies that the LEA must spend at least the same amount of state and local funds to provide services to students with disabilities that they spent in the previous fiscal year. Each fiscal year, ÌÇÐÄvlog¹ÙÍø analyzes financial data and uses four tests approved by the US Department of Education (USDE) to determine if LEAs are in compliance with the MOE requirement. In late March, ÌÇÐÄvlog¹ÙÍø will release preliminary compliance reviews, which will notify LEAs of the following:Ìý

• The LEA passed at least one of the four tests, which means they are compliant with the MOE requirement.Ìý

orÌý

• The LEA failed all four tests, which means they are not compliant with the MOE requirement.ÌýÌý

LEAs have an opportunity to respond to ÌÇÐÄvlog¹ÙÍø regarding their preliminary compliance review and submit exceptions and/or adjustments, with supporting documentation, which may change the outcome of one or more of the four compliance tests.ÌýLEAs have ten (10) business days to respond to ÌÇÐÄvlog¹ÙÍø after the preliminary reviews are released.ÌýOnce all documentation has been reviewed, ÌÇÐÄvlog¹ÙÍø will issue final compliance reviews. LEAs that are not compliant with the MOE requirement may owe a refund to ÌÇÐÄvlog¹ÙÍø.Ìý

What Should I Do Now?

LEAs areÌýstrongly encouragedÌýto begin gathering relevant data and to perform their own MOE calculations before the preliminary reviews are released. ÌÇÐÄvlog¹ÙÍø provides an MOE calculation tool, which has been updated for the 2022–2023 compliance cycle, on theÌýof the ÌÇÐÄvlog¹ÙÍø website. An additionalÌýdata sources documentÌýis also available to help LEAs identify the specific data you should use to perform the calculations.

When the preliminary compliance reviews are released in late March, LEAs should compare ÌÇÐÄvlog¹ÙÍø’s results to their own MOE calculations and decide if they will accept ÌÇÐÄvlog¹ÙÍø’s compliance review or if they would like to respond by submitting exceptions and/or adjustments for further consideration.

Release of Preliminary Compliance ReviewsÌý

ÌÇÐÄvlog¹ÙÍø will release 2022–2023 preliminary compliance reviews for IDEA-B LEA MOE in late March 2024. At that time, LEAs can view their compliance review reports by logging on to the secure GFFC Reports and Data Collections application, which is accessible throughÌý.

On the same day that ÌÇÐÄvlog¹ÙÍø releases the preliminary reviews, it will also make available the 2022–2023 Exceptions/Adjustment Workbook. LEAs must use the workbook if they choose to respond to ÌÇÐÄvlog¹ÙÍø and submit documentation. The workbook is available in GFFC Reports and Data Collections (inÌý) and on theÌýÌýof the ÌÇÐÄvlog¹ÙÍø website. These resources can help LEAS to identify any applicable exceptions and/or adjustments, which are also described below.Ìý

Due Date for LEA Responses to ÌÇÐÄvlog¹ÙÍø

LEAs that choose to respond to ÌÇÐÄvlog¹ÙÍø regarding the preliminary compliance reviews must do soÌýwithin ten (10) business daysÌýof the release date of the preliminary reviews and workbook.

Why Should I Respond to ÌÇÐÄvlog¹ÙÍø?

LEAs that fail all four compliance tests may want to respond to ÌÇÐÄvlog¹ÙÍø to demonstrate that they can pass at least one test, and thus may avoid owing a refund.Ìý

LEAs that pass at least one compliance test, but fail other tests, may also want to respond to ÌÇÐÄvlog¹ÙÍø to demonstrate that they can pass more tests, or all the tests. However, to be compliant, an LEA is required to pass only one of the four tests.Ìý

LEAs can also accept ÌÇÐÄvlog¹ÙÍø’s preliminary compliance review and take no further action. In this case, an LEA’s final compliance review will include data identical to the preliminary compliance review.Ìý

Allowable Exceptions and Adjustments

LEAs that choose to respond must use the Exceptions/Adjustment Workbook to submit at least one of the following, as applicable, with the appropriate supporting documentation:

• Applicable federal statutory exceptions. See specific exceptions below.Ìý
• Adjustment to fiscal effort (MOE voluntary reduction). See page 10 of theÌýIDEA-B LEA MOE HandbookÌýfor additional information.Ìý
• SHARS Reimbursement Survey reporting errors. The survey can be resubmitted with corrected information.Ìý
• PEIMS reporting errors with auditor’s supporting documentation. See page 12 of theÌýIDEA-B LEA MOE HandbookÌýfor additional information.Ìý

Specific Federal Statutory ExceptionsÌý

If an LEA has failed at least one of the four compliance tests, the LEA may use one or more of the allowable federal statutory exceptions outlined inÌýÌýas outlined below:Ìý

• The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel.Ìý
• A decrease in the enrollment of children with disabilities.Ìý
• The termination of the obligation of the LEA, consistent with IDEA-B, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by ÌÇÐÄvlog¹ÙÍø, because the child has left the jurisdiction of the LEA; has reached the age at which the obligation of the LEA to provide FAPE to the child has terminated; or no longer needs the program of special education.Ìý
• An exceptionally costly program to a particular child with a disability is a program with a cost greater thanÌý$12,529.Ìý
• The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.Ìý
• The assumption of cost by the high-cost fund operated byÌý.Ìý
• The adjustment to fiscal effort provision underÌý.Ìý

Detailed information about allowable exceptions and/or adjustments is given in the IDEA-B LEA MOE Guidance Handbook, posted on theÌýÌýof the ÌÇÐÄvlog¹ÙÍø website.

Training Opportunities

ÌÇÐÄvlog¹ÙÍø’s Federal Fiscal Compliance and Reporting Division will provide an online training via Zoom for LEAs interested in learning more about the IDEA-B LEA MOE requirement, calculation, and exceptions process.

The training is scheduled on Tuesday, March 26, 2024, from 10:00 – 11:00 a.m. LEAs can register for the Zoom training by visiting this link:ÌýÌý

Online Resources

Please refer to theÌýÌýof the ÌÇÐÄvlog¹ÙÍø website for further information and additional resources regarding IDEA-B LEA MOE. Several new training slide decks related to the submission of exceptions and PEIMS errors have been developed and are available on the webpage. Additional guidance will also be provided when ÌÇÐÄvlog¹ÙÍø announces the release of the preliminary compliance reviews and workbook.

Contact Information

If you have any questions regarding the IDEA-B LEA MOE compliance review process, please contact the Federal Fiscal Compliance and Reporting Division by email atÌýcompliance@tea.texas.gov.

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