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. However, there are two test years used. When an LEA is preparing its year-end reports, it will test the following: 

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

For example, if the LEA is closing the 2023-24 fiscal year, the test years will be the 2023-24 actual expenditures (for compliance), and the 2024-25 budgeted expenditures (for eligibility): 

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

This is a Federal requirement found in CFR 300.203(a) & 300.203(b). For LEAs that use the SACS web-based financial system, these two tests are found within two MOE reports: The SEMA and the SEMB.