P ART C M AINTENANCE OF E FFORT Charles Kniseley Slide presentation by Anthony White 5/19/09 RRC IFA S UBGROUP P ART C MOE 1

“T HE P UZZLE P ALACE ” G ENERAL S UPERVISION 5/19/09 RRC IFA S UBGROUP P ART C MOE 2 State Performance Plan Integrated Monitoring Activities Improvement, Correction, Incentives & Sanctions Integrated Fiscal Accountability Policies, Procedures, and Effective Implementatio n Data on Processes and Results Effective Dispute Resolution Targeted Technical Assistance & Professional Development

5/19/09 RRC IFA S UBGROUP P ART C MOE CrEAG OSEP Policy Guidance Statutes and Regulations OMB A-133 & Compliance Supplement IFA : Integrated Fiscal Accountability 3

G UIDANCE ON P ART C M AINTENANCE OF E FFORT  Part C Statute and Regulations  Education Department General Administrative Regulations (EDGAR)  OMB Circular A-133 and Compliance Supplement  OSEP Policy Letters  CrEAG 5/19/09 RRC IFA S UBGROUP P ART C MOE 4

5/19/09 RRC IFA S UBGROUP P ART C MOE Part C Requirements 5

P ART C S TATUTE AND R EGULATIONS 34 CFR § (b) Prohibition Against Supplanting: “…the total amount of State and local funds budgeted for expenditures in the current fiscal year for early intervention services for children eligible under this part and their families must be at least equal to the total amount of State and local funds actually expended for early intervention services for these children and their families in the most recent preceding fiscal year for which the information is available.” IDEA section 637(b)(5)(B) 5/19/09 RRC IFA S UBGROUP P ART C MOE 6

W HAT SHOULD BE CONSIDERED IN MEASURING S TATE AND LOCAL EFFORT ? Total State and local funds may include:  State general funds;  Public funds generated in local service areas and used for Part C purposes;  Funds for Part C early intervention functions and services contributed by partner agencies (both at the State and local level); and/or  State funds used to meet matching requirements (under Medicaid, SCHIP, TANF, etc.) 5/19/09 RRC IFA S UBGROUP P ART C MOE 7

W HAT SHOULD BE CONSIDERED IN MEASURING S TATE AND LOCAL EFFORT ? 5/19/09 RRC IFA S UBGROUP P ART C MOE 8 State A

P ART C S TATUTE AND R EGULATIONS 34 CFR § (d)(2) Policies Related to Payment for Services: (2) If a public agency spends reimbursements from Federal funds (e.g., Medicaid) for services under this part, those funds are not considered State or local funds for purposes of the provisions contained in 34 §CFR /19/09 RRC IFA S UBGROUP P ART C MOE 9

P ART C S TATUTE AND R EGULATIONS 5/19/09 RRC IFA S UBGROUP P ART C MOE 34 CFR § (b) Allowances: (1) Decreases in the number of children who are eligible to receive early intervention services under this part. (2) Unusually large amounts of funds expended for such long-term purposes as the acquisition of equipment and the construction of facilities. 10

5/19/09 RRC IFA S UBGROUP P ART C MOE EDGAR Part C Requirements 11

EDGAR Subpart F: What are the Administrative Responsibilities of the Grantee?  § Compliance with statutes, regulations, and applications.  § Records related to compliance. 5/19/09 RRC IFA S UBGROUP P ART C MOE 12

5/19/09 RRC IFA S UBGROUP P ART C MOE EDGAR OMB A-133 & Compliance Supplement Part C Requirements 13

OMB A-133 §___.500(d)(1) Compliance In addition to the requirements of GAGAS, the auditor shall determine whether the auditee has complied with laws, regulations, and the provisions of contracts or grant agreements that may have a direct and material effect on each of its major programs. 5/19/09 RRC IFA S UBGROUP P ART C MOE 14

OMB A-133 C OMPLIANCE S UPPLEMENT  Establishes specific requirements within the 14 areas for Federal programs across all Federal agencies  Using the Supplement, auditors identify findings specific to different Federal programs, including those within the Department of Education (e.g., IDEA, Title I, etc.)  Section G of the supplement addresses Matching, Level of Effort, and Earmarking 5/19/09 RRC IFA S UBGROUP P ART C MOE 15

S ECTION G: M ATCHING, L EVEL OF E FFORT, E ARMARKING  Control Objectives  Control Environment  Risk Assessment  Information and Communication  Monitoring 5/19/09 RRC IFA S UBGROUP P ART C MOE 16

P OSSIBLE IMPLICATIONS OF NOT MAINTAINING FISCAL EFFORT IN P ART C 1. Audit implications  Noncompliance with MOE requirements  Pay back the amount by which the State failed to meet MOE.  Paybacks must be made out of non-federal funds. 2. Grant implications  Ineligibility for grant funds if unable to provide the application assurance for the prospective fiscal year. 5/19/09 RRC IFA S UBGROUP P ART C MOE 17

5/19/09 RRC IFA S UBGROUP P ART C MOE Part C Statute and Regulations OMB A-133 & Compliance Supplement Part C Requirements OSEP Policy Guidance 18

OSEP P OLICY G UIDANCE  1994 Letter to McWhorter  2000 Letter to Picard  2002 Letter to Watson  2004 Letter to Hensley  2009 Letter to State  2009 ARRA Guidance documents  State Fiscal Stabilization Fund (SFSF) Fact Sheet 5/19/09 RRC IFA S UBGROUP P ART C MOE 19

5/19/09 RRC IFA S UBGROUP P ART C MOE Part C Statute and Regulations Compliance Supplement & OMB A-133 Part C Requirements OSEP Policy Guidance CrEAG 20

C RITICAL E LEMENTS AND A NALYSIS G UIDE (C R EAG) Questions addressing MOE in Part C: Critical Element Fiscal System - 2: Does the State have procedures that are reasonably designed to ensure appropriate use of IDEA funds at the State level?  Related Question C- How does the lead agency ensure that the total amount of State and local funds expended for early intervention services in one year is maintained or increased in each subsequent year? 5/19/09 RRC IFA S UBGROUP P ART C MOE 21

5/19/09 RRC IFA S UBGROUP P ART C MOE Part C Statute and Regulations OMB A-133 & Compliance Supplement Part C Requirements OSEP Policy Guidance CrEAG 22