AICPA Special Education Support 2

Question 1

Under IDEA Part B, how must local education agencies (LEAs) track and report federal special education funds to ensure compliance?

Accepted Answer

Maintain separate fund accounting and submit annual performance reports to the state

Answer

LEAs must maintain separate fund accounting for IDEA Part B funds and submit annual performance reports to the state education agency as required by federal regulations.

Question 2

Which cost allocation method is most appropriate when a special education teacher provides services to students across multiple federal programs?

Accepted Answer

Direct cost identification based on time-and-effort records

Answer

Time-and-effort records support direct cost identification, which is required by federal Uniform Guidance (2 CFR Part 200) when employees work on multiple federal awards.

Question 3

A district receives a $500,000 IDEA Part B grant. The CFO wants to use $75,000 for general administrative overhead. What must be established first?

Accepted Answer

An indirect cost rate approved by the cognizant federal agency

Answer

Charging indirect costs to a federal grant requires a federally approved indirect cost rate or a cost allocation plan negotiated with the cognizant agency.

Question 4

What is the 'maintenance of effort' (MOE) requirement as it applies to IDEA funding for a school district?

Accepted Answer

The district must spend at least as much from local funds on special education as it did in the prior fiscal year

Answer

Maintenance of effort requires that LEAs not reduce local or state spending on special education below the prior year's level, ensuring federal funds supplement rather than supplant existing expenditures.

Question 5

During a Single Audit of a school district, the auditor identifies that IDEA funds were used to pay for general education textbooks. This is an example of:

Accepted Answer

An unallowable cost that represents a material noncompliance finding

Answer

Using IDEA funds for general education materials that do not benefit students with disabilities is an unallowable cost and constitutes material noncompliance under the Single Audit Act.

(AICPA) Association of International Certified Professional Accountants Practice Test

(AICPA) Association of International Certified Professional Accountants Practice Test

AICPA Special Education Support 2