Special Education Listserv

Subject: Fiscal Monitoring/Audit Findings on the Schedule of Selected Statistics 2006-07

Source: Shelley Witherbee, Director, Funds Management

Intended Audience: Superintendents, Financial Administrators, District Auditors

Date: April 29, 2008

As you know, fiscal management of Part B funds is one of the components of general supervision and will be monitored by the U. S. Department of Education, Office of Special Education Programs (OSEP) as part of their Continuous Improvement Focused Monitoring System.  This review will look at how the state monitors various fiscal requirements identified in IDEA, General Education Provisions Act, Office of Management and Budget Guidance, and other federal regulations.  In looking at the state's fiscal management system, OSEP will focus its analysis on a number of identifiable elements, including whether the state has mechanisms in place for ensuring fiscal accountability in the distribution of IDEA funds as well as procedures to ensure that LEAs appropriately use IDEA Part B funds.  See SELS message from October 17, 2007, for more information.

As a part of our fiscal monitoring, the Division of Special Education has completed its review of the audit data on the Schedule of Selected Statistics (SSS) for the 2006-07 school year.  Letters are being mailed to 234 districts based on discrepancies and/or non-compliance findings in Section 8 of the Schedule of Selected Statistics.  A copy of the letter will also be forwarded to the auditor on file for the district and the special education contact for the district.

If there was a reporting error in the audit, the auditor has until June 13, 2008, to submit a corrected Schedule of Selected Statistics AND supporting documentation to justify the correction on behalf of the district.  If your district fails to meet the deadline above, the Division may do an onsite visit and/or withhold funding to the district until the non-compliance issue is resolved.

If the return of federal funds is required, please call the Funds Management Section for instructions on the refund process.  All corrected audits and documentation must be sent to: DESE, Division of Special Education, Funds Management Section, P. O. Box 480, Jefferson City, MO 65102.

A copy of the FY07 Schedule of Selected Statistics may be viewed at:

http://www.dese.mo.gov/divadm/finance/newadmin/FY07SoSS.pdf.pdf.  If you have any questions, please contact our section at (573) 751-0622.