ADE Director's Communication Memo Form

Memo Number : FIN-10-040

Date Created : 11/17/2009


Co-op Directors
other: General Business Managers

Type of Memo: Regulatory
Response Required: No
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Maintenance of Effort

Regulatory Authority:
Elementary & Secondary Education Act

Contact Person:
Annette Pearson

Phone Number:


In accordance with Section 1120(a) and Section 9521 of the Elementary & Secondary Education Act, a local education agency (LEA) must meet Maintenance of Effort (MOE).

‘‘(a) MAINTENANCE OF EFFORT.—A local educational agency may receive funds under this part for any fiscal year only if the State educational agency involved finds that the local educational agency has maintained the agency’s fiscal effort in accordance with section 9521. ‘‘(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT, NONFEDERAL FUNDS.—‘‘(1) IN GENERAL.—A State educational agency or local educational agency shall use Federal funds received under this part only to supplement the funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs assisted under this part, and not to supplant such funds. ‘‘(2) SPECIAL RULE.—No local educational agency shall be required to provide services under this part through a particular instructional method or in a particular instructional setting in order to demonstrate such agency’s compliance with paragraph (1).

‘‘(a) IN GENERAL.—A local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the State with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year. ‘‘(b) REDUCTION IN CASE OF FAILURE TO MEET.—‘‘(1) IN GENERAL.—The State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency). ‘‘(2) SPECIAL RULE.—No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years. ‘‘(c) WAIVER.—The Secretary may waive the requirements of this section if the Secretary determines that a waiver would be equitable due to— ‘‘(1) exceptional or uncontrollable circumstances, such as a natural disaster; or ‘‘(2) a precipitous decline in the financial resources of the local educational agency.

Attached to this memo is a report that shows the aggregate expenditures used in determining maintenance of effort for each LEA. The Arkansas Public School Computer Network (APSCN) expenditure codes are listed at the end of the report. If maintenance of effort is not met based on aggregate expenditures, ADE checks to determine if maintenance of effort is met based on per student expenditures.


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