MARSHALL INDEPENDENT SCHOOL DISTRICTLocal Government

Finding 2022-2 Failure to Comply with IDEA-B Maintenance of Effort- Criteria: Maintenance of Effort (MOE) requires local educational agencies to maintain the level of state and local funds they spend to support federal programs from one fiscal year to the next. The MOE requires that districts that receive federal grants awarded under the individuals with Disabilities Education Act, Part B (IDEA-B) must spend at least the same amount of state and local funds to provide services to students with disabilities that was spent in the previous fiscal year. The district must comply with the MOE requirement to receive IDEA-B funding each fiscal year. (34 CFR 300.203) Condition: The District's IDEA-B Maintenance of Effort calculation was non-compliant by $182,381. Effect: The District is not in compliance with the IDEA-B Maintenance of Effort requirements. Cause: The District failed all four tests of the MOE Calculation Test. The District spent $182,381 less than in the prior year for services to students with disabilities expenditures. The District has had employment vacancies in the Special Education Department causing them to be unable to spend at least the same amount of state and local funds as the previous fiscal year. Recommendation: The District should evaluate its future spending to ensure its IDEA-B expenditures in the 22-23 school year for services to students with disabilities are at least the same or more than the prior fiscal year expenditures. The District should also set aside $182,381 to be returned to the Texas Education Agency (TEA) once TEA has conducted the final MOE calculation.