NC 1501-12.5 Supplementation of State, Local, and Other Federal Funds

Plain English summary

This regulation governs how Part B IDEA funds paid to North Carolina must be managed, requiring separate accounting systems to prevent commingling with State funds and prohibiting the use of federal funds to supplant existing Federal, State, and local special education expenditures. Funds must supplement—not replace—existing funding levels for special education and related services for children with disabilities. A waiver of the nonsupplanting requirement is available if the State demonstrates that all children with disabilities have access to FAPE.

Key requirements

• Funds paid to the State under this part must be expended in accordance with all the provisions of this part.
• Funds paid to the State under this part must not be commingled with State funds.
• The requirement in paragraph (b)(1) of this section is satisfied by the use of a separate accounting system that includes an audit trail of the expenditure of funds paid to the State under this part.
• Separate bank accounts are not required.
• Funds paid to the State under Part B of the IDEA must be used to supplement the level of Federal, State, and local funds expended for special education and related services provided to children with disabilities under Part B of the IDEA, and in no case to supplant those Federal, State, and local funds.
• If the State provides clear and convincing evidence that all children with disabilities have available to them FAPE, the Secretary may waive, in whole or in part, the requirements of paragraph (c)(1) of this section if the Secretary concurs with the evidence provided by the State under NC 1501-12.7.

Affected parties

• State Education Agency (SEA)
• Local Education Agencies (LEAs)
• Children with disabilities receiving special education and related services
• State fiscal and accounting personnel

Official source

https://www.dpi.nc.gov/documents/publications/catalog/ec144-policies-governing-services/open#page=45