CAARO Update Issue #2026-12
August 31, 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
Every Student Succeeds Act (ESSA) Title I, Title II, Title III, and Title IV
- 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.
- The obligation period for FY 2024–25 ESSA Title I–IV 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, after which LEAs will forfeit any unclaimed balances.
- 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 will 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
Literacy Instruction Professional Development
- The Literacy Instruction Professional Development allocations are available on the Funding Results web page. Additional information, including frequently asked questions, is available on the Literacy Instruction Professional Development Funding web page.
- The CDE will release an apportionment reflecting 100 percent of the allocation by mid-October 2026.
- Information regarding the program timeline, reporting requirements, and professional development criteria is available on the CDE’s Literacy Professional Development Programs web page.
Classified School Employee Summer Assistance Program (CSESAP)
- CDE has posted the allocation for state match funding for the 2025–26 school year, in the amount of $90,000,000, on the CSESAP FY 2024–25 Funding Results web page.
- Based on the data reported by LEAs the final state match funding is sixty and eight-tenths cents ($0.608) for each one dollar ($1) withheld from participating employees during the 2025–26 school year.
Audit Resolution Updates
Local Educational Agency Annual Audits - Auditing
-
Section 39 of Assembly Bill (AB) 126 (Chapter 65, 2026) made changes to the due dates for the annual audit process. A summary of the key date changes can be found on the CDE website on the Local Educational Agency Annual Audits web page.
- Other audit related changes from AB 126 will be included in a special edition of the CAARO Update Issue #2026-13. Which will be posted on Monday, September 10, 2026.
Questions:
Categorical Allocations & Audit Resolution Office | CAAR@cde.ca.gov
Last Reviewed: Monday, August 31, 2026
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