If the Member LEA cannot pass the SEMA (compliance) test, the Member LEA will be billed for the amount not met, and the Member LEA must use non-federal funds to pay the amount. 

If the Member LEA cannot pass the SEMB (eligibility) test, the Member LEA may not submit an IDEA reimbursement claim for its applicable expenditures. The Fresno County SELPA may continue to calculate and determine an allocation amount to the Member LEA for the current year IDEA grant award. Once the LEA can demonstrate MOE, such as through the interim reports, or through the next SEMA at year end, then the SELPA may add the reimbursement claim on the next report, and subsequently disburse the IDEA funds.

If an LEA cannot meet any of the four tests for MOE, the LEA may want to consider any one of the following suggestions. Please note that these suggestions are for instructional purposes only and do not constitute legal advice. If you need legal advice, you should contact your local counsel. 

Suggestion 1 - Exempt Reductions
Federal Regulations provide for exempt reductions to MOE. You can find those exemptions here.  

To use an exempt reduction, please do the following:

1. Complete CDE's Exempt Reduction form available here: leamoeexempwrksht.xls
2. Enter the Exempt Reduction amounts in SECTION 1 of the SACS MOE form
3. An instructional video is available here.

TIP: If an LEA meets at least one of the four tests for the Maintenance of Effort (MOE), the LEA may still want to use one or more of the Exempt Reductions to meet another test. This may help the LEA meet MOE in future years. 

Suggestion 2 - Program Cost Report Allocation
The LEA may be able to review and revise its factors used in its Program Cost Report Allocations (PCRA). These factors are based on the number of Teacher FTE, number of classrooms, and number of students transported in special education as well as other programs. If these factors are too low, they can be increased to reflect the true numbers which will increase the allocation amount for expenditures that were not previously assigned to a programmatic goal. More information about PCRA can be found here.

PCRA is a component of the SEMA reports only. 

Program Cost Allocation Factors that overstate the Teacher FTE, Classroom Units, and/or Pupils Transported are disallowed. The SELPA may review the LEA's PCRA amount for reasonableness. 

Suggestion 3 - Indirect Costs
The LEA may charge up to its maximum indirect cost rate to the special education program, if it has not done so already.

This suggestion will affect the LEA's Unaudited Actuals. Please be cognizant of the following dates:

• After September 15th, changes to the Unaudited Actuals will require reopening the financial books and may require governing board re-approval.
• After October 15th, no changes are allowed to the Unaudited Actuals.  

Indirect costs that exceed the LEA's maximum allowable rate are not allowable.  

Suggestion 4 - Direct Costs
The LEA may apply qualifying direct costs of administration, psychologists, nurses and other personnel that that provide special education and related services. Review CSAM Procedure 905 - Documenting Salaries and Wages, and consult with the LEA's external auditor for any Time and Effort reporting that may be required. 

This suggestion will affect the LEA's Unaudited Actuals. Please be cognizant of the following dates:

• After September 15th, changes to the Unaudited Actuals will require reopening the financial books and may require governing board re-approval.
• After October 15th, no changes are allowed to the Unaudited Actuals.  

Expenditures that do not qualify as special education or related services are not allowable. For example, a school nurse provides 80% of his time with students with disabilities, and 20% of his time with general education students. Therefore, only 80% of the salary and benefits should be charged to special education. Other positions that are similarly time-accounted would include psychologists.  

Note that the State Mental Health funds in SACS Resource 6546 and the Early Intervention funds in SACS Resource 6547 may be used for regular education and/or special education, as appropriate. Services to children with disabilities may be coded to the appropriate Goal 5xxx.  

Suggestion 5 - Reclassifications
The LEA may be able to reclassify qualifying expenditures from its Federal special education sources to its State and/or local sources. While this may assist an LEA in meeting the current year MOE, this does increase the Federal special education revenue for the following fiscal year. In order to fully utilize the additional Federal funds, an LEA may need to reclassify more expenditures out of State and/or local sources, potentially causing an MOE non-compliance.

See SSC Slide 55 for more information here: SSC - Workshop Presentation for Sp Ed, May 20, 2021.pdf

This suggestion will affect the LEA's Unaudited Actuals. Please be cognizant of the following dates:

• After September 15th, changes to the Unaudited Actuals will require reopening the financial books and may require governing board re-approval.
• After October 15th, no changes are allowed to the Unaudited Actuals.  

Suggestion 6 - Funding Allocations
The LEA may want to review its funding allocations for State and Federal funds, and work with the Fresno County SELPA regarding the amounts.