No Requirement to Track LCFF/LCAP Expenditures

As the third year of Local Control Funding Formula (LCFF)/Local Control and Accountability Plan (LCAP) is coming to a close, we have received many questions regarding the tracking of LCFF/LCAP expenditures. For example, are there any new state requirements to track the expenditures and, if so, will you audit the accounting? CWA spoke directly with a California Department of Education (CDE) representative and there is no change in their position regarding separately tracking base, supplemental, and concentration grant expenditures. The funds are unrestricted and there is no requirement to track the expenditures in a separate account code.

The decision to separately track expenditures may be made at the local level, however, it is not required at the state level and the CDE does not plan to change their position in the foreseeable future. The LCAP spending regulations are tied to increased levels of services and not restricting expenditure of supplemental and concentration grants. As the auditors, our state compliance auditing procedures will be accomplished through communication with each LEA to determine which actions or services in the LCAP had expenditures in the fiscal year of audit.

If you have any questions regarding this article or any other audit requirements, please contact Valerie McMasters-Shaw at or call 619-270-8222.