CAARO Update Issue #2026-10
August 3, 2026: Categorical Allocations and Audit Resolution Office (CAARO) Updates – twice monthly notifications of key reporting deadlines, applications for funding, annual audits, and any other topics related to programs administered by CAARO.The purpose of the California Department of Education (CDE) CAARO updates is to provide local educational agencies (LEAs) and other interested parties with timely information related to programs administered by CAARO.
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Key Dates
| Description | Dates |
|---|---|
Fiscal Year (FY) 2026-27 Reporting Window for Consolidated Application and Reporting System (CARS) Application for Funding Page opened on May 1 and will close on December 15, 2026. |
5/1/2026 - 12/15/2026 |
FY 2026-27 Mandate Block Grant Application is open until August 30, 2026. |
8/30/2026 |
FY 2021-22 A-G Completion Improvement Grant Program (A-GCIGP) final expenditure report due August 31, 2026. |
8/31/2026 |
Federal Categorical Program Updates
Categorical Programs - Allocations & Apportionments
Title I, Title II, Title III, and Title IV
- Federal Cash Management Data Collection (CMDC) closed on July 31, 2026. Cash balances submitted by LEAs through CMDC are used to calculate LEA apportionments.
- The FY 2024-25 Ninth Apportionments and FY 2025-26 Fifth Apportionments are expected to be released to LEAs in September 2026.
- To receive an allocation, a local educational agency (LEA) must submit a State Board of Education (SBE) approved CARS Consolidated Application for Funding (ConApp) and an approved local control and accountability plan (LCAP) Federal Addendum by 12/15/2026.
- LEAs with an approved CARS ConApp and an approved LCAP Federal Addendum by July 24, 2026, and reported cash balances by July 31, 2026, will be eligible for payments in Q1, which will be released to LEAs in September 2026.
- The obligation period for FY 2024–25 Every Student Succeeds Act (ESSA) Title I–V funds will close on September 30, 2026. After the obligation period closes, LEAs have one final opportunity to report cash balances which will be followed by the tenth and final apportionment. LEAs will forfeit any balances after the tenth apportionment.
- To review FY 2024–25 remaining balances please refer to the schedule under “Allocations” on the “Funding Results” page. Links to the Funding Results page for each program are provided in the table below.
| Programs | Links |
|---|---|
| Title I, Part A | Funding Results: Title I, Part A, Fiscal Year 2024-25 |
| Title I, Part D, Subpart 2 | Funding Results: Title I, Part D, Subpart 2, Fiscal Year 2024-25 |
| Title II, Part A | Funding Results: Title II, Part A, Supporting Effective Instruction, Fiscal Year 2024-25 |
| Title III, English Learner | Funding Results: Title III English Learner Student Program, Fiscal Year 2024-25 |
| Title III, Immigrant | Funding Results: Title III Immigrant Student Program, Fiscal Year 2024-25 |
| Title IV, Part A | Funding Results: Title IV, Part A, Student Support and Academic Enrichment, Fiscal Year 2024-25 |
Title I, Part A (FY 2025–26) – 85% Obligation Reminder
- LEAs are approaching the end of the 15-month obligation period for FY 2025–26 Title I, Part A funds. Section 1127 of the ESSA allows LEAs to carry over no more than 15 percent of their Title I, Part A allocations, excluding funds received through any reallocations under Section 1126(c) of the ESSA, for one additional fiscal year, unless they receive a waiver from the CDE or the total allocation is less than $50,000. Annually, the CDE reviews the amount of Title I, Part A carryover funds for each LEA and issues an invoice to LEAs that exceed the carryover limit and do not receive a waiver.
- Under the FY 2024–25 allocation, 19 LEAs were subject to carryover limitations and were required to return excess carryover funds.
- LEAs with excess carryover funds reflected in their remaining FY 2024–25 balance will retain the balance in the Allocation Schedule; however, no additional apportionments will be issued from FY 2024–25 funds.
- LEAs that have already received apportionments that include excess carryover funds will receive an invoice and must return the excess amount to the CDE.
- If you have any questions, please contact the Title I, Part A office by email at TIMSO@cde.ca.gov.
Comprehensive Support and Improvement (CSI) LEA
- FY 2024-25 CSI Subgrant obligation period ends on September 30, 2026. LEAs must expend or legally obligate funds by this date and liquidate funds within 90 days. The Final Grant Management Report (GMR) 5 and Subgrant Evaluation will be due to the CDE by October 15, 2026.
- The fiscal year (FY) 2024-25 Fifth Apportionments and FY 2025-26 Second Apportionments are expected to be released to LEAs in September 2026.
- As a condition of funding, LEAs that have filed expenditures in the Grant Management and Reporting Tool (GMART) by July 31, 2026, will receive payment in September 2026.
- If you have any questions regarding this program, please contact the School Improvement and Support Office (SISO) by email at SISO@cde.ca.gov.
State Categorical Program Updates
Categorical Programs - Allocations & Apportionments
Classified School Employee Summer Assistance Program (CSESAP)
- School districts and county offices of education that elected to participate in the Classified School Employee Summer Assistance Program (CSESAP) for the 2025–26 school were required to request payment from the California Department of Education (CDE) by July 31, 2026.
- The final state match amount will be based on the amounts requested by LEAs through July 31, 2026, and will be available in mid-August 2026, on the CSESAP Funding Results web page.
- If you have any questions regarding this program, please contact the Categorical Allocations and Audit Resolution Office by email at csesap@cde.ca.gov.
Literacy Instruction Professional Development
- The Literacy Instruction Professional Development allocations will be posted on the Categorical Programs web page once available. The CDE will release an apportionment reflecting 100 percent of the allocation by late September 2026.
- Information regarding the program timeline, reporting requirements, and professional development criteria is available on the CDE’s Literacy Professional Development Programs web page.
Lottery
- The 4th Quarter estimated accrual for 2025–26 and revenue projections for 2026–27 will be available by mid-July when details from the Lottery Commission become available. Details will be posted on the CDE’s Lottery web page
Mandate Block Grant (MBG)
- The 2026–27 Mandate Block Grant Application is open and the deadline to request funding is August 30, 2026.
- The application, announcement letter, and resources are available on the Mandate Block Grant Request for Applications web page. Frequently asked questions regarding MBG are available on the MBG FAQs web page.
- As part of the CDE’s web-based application modernization efforts, all LEAs must create a new password for the MBG Application for the current reporting year. Passwords established in prior reporting cycles will not be carried forward and cannot be reused. LEAs will be prompted to establish a new password during their initial login to the application.
- For questions, please contact Mandate@cde.ca.gov.
Audit Resolution Updates
Local Educational Agency Annual Audits - Auditing
Key Dates for 2025-26 and 2026-27 Kindergarten Through Grade Twelve (K–12) Annual Audit
- Section 9 of Assembly Bill (AB) 126 (Chapter 65, 2026) made changes to the due dates for the annual audit process. See the table below for changes:
Key dates can also be found on the CDE website on the Local Educational Agency Annual Audits web page.
| Annual Audit Process Section 9 of AB 126 (Chapter 65, 2026) |
Education Code Sections |
Previous Deadlines |
Deadline for 2025-26 and Forward |
|---|---|---|---|
| New: If an audit contract is terminated, the LEA and auditor must notify the chartering authority or the County Office of Education (COE), as applicable, the CDE, and the State Controller's Office (SCO) | N/A | Within 30 calendar days of the effective date of termination | |
| Annual Audit Report Submission | December 15 | January 31 | |
| Review of annual audit and audit exceptions by the governing board or body | January 31 | Within 45 days after the issuance of the audit report | |
| School District and educational joint powers authority (EJPA) corrective actions submitted to COE | March 15 | April 15 | |
| New: Charter school corrective actions due to chartering authority | N/A | April 15 | |
| COE corrective action due to CDE | N/A | Within 60 days of management decision letter, no later than June 15 | |
| LEA deadline to contract with an independent auditor for 2026-27 annual audit | April 1 | May 1 | |
| COE contracts with an independent audit if the LEA has not contracted for the 2026-27 audit by May 1 | May 1 | In sufficient time to ensure compliance with the filing due date | |
| New: Chartering authority contracts with independent auditor if charter school has not contracted for the 2026-27 audit by May 1 | N/A | In sufficient time to ensure compliance with the filing due date | |
| SCO contracts with an independent auditor if the COE has not contracted for the 2026-27 audit by May 1 | N/A | In sufficient time to ensure compliance with the filing due date | |
| New: Chartering authority annual certification to the COE in which the charter school is located | N/A | May 15 | |
| COE certifications for school districts, EJPAs and (new addition) charter schools authorized by the COE submitted to CDE | May 15 | June 15 |
FY 2026-27 Audit Guide
- The FY 2026-27 Audit Guide has been posted on the Education Audit Appeals Panel website
FY 2026-27 Supplemental Audit Guide
- The Audit Guide Workgroup will begin meeting this fall to make any recommendations for the FY 2026-27 Supplemental Audit Guide. The FY 2026-27 Supplemental Audit Guide will be posted March 1, 2027.
Questions:
Categorical Allocations & Audit Resolution Office | CAAR@cde.ca.gov
Last Reviewed: Tuesday, August 04, 2026
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