Grants Management Maintenance of Effort (MOE)
IDEA Maintenance of Effort (MOE):
For information on IDEA MOE, please see Eligibility and Compliance for MOE IDEA which can be accessed through the public folder, Grants Management Policies, in the Grants Management Resource Library on the Grants Management Enterprise (GME).
Title Maintenance of Effort (MOE):
All LEAs and entities must maintain their level of expenditures from their state funds from year to year. An MOE test is done by Arizona Department of Education (ADE) to assure this standard is met. ADE uses the state expenditures reported on the AFR for the prior two (2) fiscal years. Two tests are completed; the first test uses totaled expenditures from the current submitted AFR and compares against the total expenditures from prior year's AFR. The second test calculates a per pupil expenditures amount using the total expenditures and Average Daily Membership (ADM).
For information on Title MOE, please see Title Maintenance of Effort which can be accessed through the public folder, Grants Management Policies, in the Grants Management Resource Library on the Grants Management Enterprise (GME).
Maintenance of Effort (MOE) Training:
Maintenance of Effort (MOE) training materials and webinars can be accessed through the public folder, GME User Resources/Training-Maintenance of Effort (MOE), in the Grants Management Resource Library on the Grants Management Enterprise (GME).
Maintenance of Effort (MOE) Frequently Asked Questions
For additional guidance, please refer to:
- General Fiscal Processes FAQs for further information on fiscal processes
- Indirect Cost Rates for further information on Indirect Cost
- Health and Nutrition for further information on Health and Nutrition
- Frequently Asked Questions for further instruction on grant processes
- Training Resources for technical instructions on using the GME system
IDEA MOE
To access the MOE system, contact the Entity Administrator and request to have the MOE system added to the ADEConnect; otherwise, please may call ADE Support at (602) 542-7378.
Per 34 CFR §300.203-205, all LEAs and entities who receive IDEA funds must complete MOE.
Per 34 CFR §300.203-205, the last passing year must be used for the current MOE test.
Per 34 CFR §300.203-205, if an LEA or entity fails to meet the MOE compliance, they must refund the amount lesser of the amounts by which they failed to maintain level of expenditures in that fiscal year using non-Federal funds. Per section 452 of GEPA (20 U.S.C. 1234a), all funds that are not returned will result in a global hold on the LEA.
Per 34 CFR §300.203-205, if an LEA or entity fails to meet the MOE eligibility, they are not eligible for an award of IDEA funds. Thus an LEA or entity is unable to receive substantial approval of their IDEA funding application until MOE eligibility is passed. An LEA or entity is ineligible for pre-award costs if they have failed MOE eligibility.
Title MOE
All LEAs and entities must maintain their level of expenditures from their state funds from year to year. An MOE test is done by Arizona Department of Education (ADE) to assure this standard is met. ADE uses the state expenditures reported on the AFR for the prior two (2) fiscal years. Two tests are completed; the first test uses totaled expenditures from the current submitted AFR and compares against the total expenditures from prior year's AFR. The second test calculates a per pupil expenditures amount using the total expenditures and Average Daily Membership (ADM).
An LEA or entity does not have to take any additional action for this test to be completed. ADE completes this test utilizing the data submitted on the Annual Financial Report (AFR) in Arizona Education Data Standards (AzEDS). If LEA or entity has failed, ADE will send notification.
An LEA or entity must maintain at least 90% of state level of expenditures from year to year for either per pupil or total dollars. For example, 2018 LEA spent $100,000 total expenditures and $5,000 for per pupil amount. In 2019, LEA must spend at least $90,000 in total expenditures or $4,500 per pupil.
An LEA or entity who has failed will receive an notification from ADE advising of the failure. If an LEA or entity has failed only one time in the last five years, no action is needed by the LEA or entity and no remedies are taken by ADE. If an LEA or entity has failed two or more times in the past five years, the LEA or entity will receive allocation reductions for all of the following years' Title grants by the amount in which they failed minus 10%.
A waiver request can be submitted for exceptional or uncontrollable circumstances or a precipitous decline in the financial resources of the LEA or entity. The LEA must submit the waiver within 30 days from the date of the letter. This waiver request must be submitted to Grants Management in writing on the LEA's or entity's letterhead. Any waiver requests submitted after the 30 days will not be accepted. Upon receiving the waiver request, ADE will submit the request to the United States Department of Education (USDOE). ADE will communicate the determination upon receiving it from USDOE.
