Adult Education Block Grant Funding FAQs

For 2015–16, the Adult Education Block Grant distributes $500 million, as follows:

• $336.9 million for maintenance of effort (MOE) funding to eligible county offices of education and school districts based on 2012–13 General Fund expenditures on adult education programs. This funding is distributed directly to the local educational agency (LEA).
• $163.1 million for consortia funding (also known as non-MOE funding) to adult education consortia based on a region’s share of statewide adult education need. This funding may be distributed directly to consortium members or to a fund administrator designated by the consortium.

Per California Education Code Section 84912, funds are apportioned in twelve equal payments to each LEA on a monthly basis.

All Adult Education Block Grant revenue should be recorded in Fund 11, Adult Education Fund, using Resource 6391, Adult Education Block Grant Program. Fund 11 is the only fund valid in combination with Resource 6391.

Now that there is again a restricted revenue source for adult education, it may no longer be necessary for LEAs to formally commit general purpose LCFF revenues to the purposes of adult education in order to justify the use of a special revenue fund in accordance with Generally Accepted Accounting Principles (GAAP). LEAs that continue to formally commit LCFF revenue to the purposes of adult education should use Object 8091, LCFF Revenue Transfers, to transfer the committed LCFF revenue from their general fund to Fund 11.

LEAs will use the same resource code for MOE and non-MOE funding.

Consortia Fund Administrators

LEAs who are the fund administrator for adult education consortium and receive Adult Education Block Grant revenue on behalf of their member LEAs should use:

• Resource 6391, Adult Education Block Grant Program and,
• Either Object 8587, Pass-Through Revenues from State Sources (for the pass-through grant model), or Object 8590, All Other State Revenue (for the subagreement for services model), to account for the revenue that will be provided to their member LEAs.
  

Consortia Members (Subrecipients)

LEAs who are the members in an adult education consortium and receive Adult Education Block Grant revenue from their consortia's fund administrator (not directly from the state) should use:

• Resource 6391, Adult Education Block Grant Program and,
• Either Object 8590, All Other State Revenue (for the pass-through grant model), or Object 8677, Interagency Services Between LEAs (for the subagreement for services model), to account for the AEBG revenue.

 

LEAs that receive AEBG directly from the state

Use Resource 6391, Adult Education Block Grant Program, and Object 8590, All Other State Revenue.

Adult Education Block Grant (AEBG) SACS Coding Examples

Pass-through grant model accounting examples:

Subagreements for services model accounting examples:

For further information on whether to use the pass-through grant model or the subagreement for services model when accounting for this grant, LEAs should consult the California School Accounting Manual (CSAM) Procedure 750. Additional guidance can be found in CSAM Procedure 330 under the definition for Object Code 5100, Subagreements for Services.

Yes, pursuant to the LEA’s approved indirect cost rate.

All funds are subject to a financial audit; however, there are no specific compliance procedures for the Adult Education Block Grant in the current state audit guide.

There are no statutory provisions preventing an LEA from carrying over funds, however, a consortium may change the amount of adult education funds available in future years based on actual prior fiscal year spending.