Special Education Support Flashcards
7 cards from real AICPA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Special Education Support flashcards as text
A school district contracts with a private therapy provider to deliver speech services under an IEP. What documentation is most critical for a federal auditor reviewing these costs?
Answer: A signed contract, service delivery logs, and evidence that services were actually rendered to eligible students
Federal auditors require a contract, detailed service logs, and evidence of actual delivery to verify that costs are allowable, allocable, and supported for students with IEPs.
Which federal legislation primarily governs the financial obligations of public schools to provide a 'free appropriate public education' (FAPE) to students with disabilities?
Answer: Individuals with Disabilities Education Act (IDEA)
IDEA is the primary federal statute mandating FAPE for students with disabilities and establishes the funding and accountability framework for special education programs.
A district's special education fund shows a year-end deficit. Which accounting treatment is most appropriate under GASB?
Answer: Report the deficit as a negative fund balance and disclose the cause in the notes to the financial statements
GASB requires that deficits be reported transparently as negative fund balances with adequate note disclosure explaining the nature and resolution plan.
Under the Single Audit Act, a school district receiving $750,000 in IDEA funds is subject to:
Answer: A program-specific audit or inclusion in a Single Audit if total federal expenditures exceed $750,000
Entities expending $750,000 or more in federal awards in a fiscal year must undergo a Single Audit or program-specific audit under the Single Audit Act and 2 CFR Part 200.
A CPA reviewing a district's special education budget notices that paraprofessional salaries are charged 100% to IDEA funds. What question should the CPA ask first?
Answer: Do the paraprofessionals work exclusively with students with disabilities, or do they also support general education students?
Costs charged 100% to a federal program must benefit only that program; if paraprofessionals serve general education students, costs must be allocated proportionately.
What is the primary purpose of an Individualized Education Program (IEP) from a financial accountability standpoint?
Answer: It serves as the authorizing document that justifies expenditures for a specific student's special education services
The IEP is the legally binding plan that authorizes specific services for an eligible student, making it the foundational document for validating special education expenditures.
A district receives Medicaid reimbursement for health-related services provided to students with disabilities. How should these revenues be treated?
Answer: Credited against the cost of services or recorded as program revenue to offset special education expenditures
Medicaid reimbursements are program income that should either offset the cost of services or be tracked as restricted revenue to support ongoing special education expenditures per federal guidelines.