MOE Test Years

To meet the MOE requirement, the LEA must spend the same amount or more in the test year as it did in the comparison year. Federal law requires that the LEA meet not only a compliance standard, but also an eligibility standard. Because of these two standards, there are two test years used when an LEA is preparing its year-end reports:  

  1. The year that it is closing (the compliance standard)
  2. The new budget year (the eligibility standard)

For example, if the LEA is closing the 2025-26 fiscal year, the test years will be the following: 

  1. The 2025-26 actual expenditures (for compliance)
  2. The 2026-27 budgeted expenditures (for eligibility)

Chart illustrating the compliance test with $126,000 in actuals and the eligibility test with $128,000 in budget