The Office of Inspector General (OIG) at the U.S. Department of Education is charged with the responsibility of monitoring use of federal education funds provided by the American Recovery and Reinvestment Act (ARRA).   

To accomplish its work, the OIG conducts independent and objective audits and investigates reports of fraud, waste, or abuse of Department of Education funds.  

• Reports of Fraud, Waste or Abuse  

According to reporting in Education Week, from the enactment of ARRA through Nov. 30, 2010, the OIG "fielded 514 complaints from the public about possible misuse of stimulus money. The bulk of the complaints - 433 - were deemed not to warrant an investigation. Among the rest, 64 are part of an ongoing investigation, while five have ended in convictions or settlements. For 12, federal prosecutors decided not to pursue changes." (Source: Federal Watchdogs Hit Trail in ARRA Oversight Effort, Education Week, February 9, 2011) 

• OIG State Audit Reports  

The OIG has issued these reports on use of ARRA funds during the past year:  

• Oklahoma (February 2011) 
• Pennsylvania (December 2010)
• Puerto Rico (December 2010)
• Louisiana (September 2010)
• Wisconsin (September 2010)
• Texas (January 2010) 
• California (January 2010)
• Indiana (January 2010) 

Question: "I was wondering what is done if a school principal does not follow the instructions for the grant. Instead of putting equipment in a SVE classroom the equipment was put in the media center."

Reply: "Thank you for your question. The situation you describe could be happening frequently, so we are grateful to you for raising it.

The IDEA federal funds - both annual funds and the Recovery Act funds - are intended to assist school districts with the EXCESS COSTS of educating students with disabilities. So, to use IDEA funds to purchase equipment that is placed in an area intended for general student use would violate IDEA provisions.

What to do about such an incident is a more vexing question. Sometimes principals are less that fully understanding of the limitations on uses of IDEA funds, so actions such as the one you describe could be committed out of a lack of understanding. Alternatively, this could be a very intentional act of misuse of funds. Either way, we would suggest contacting the principal and inquiring about why equipment purchased with IDEA funds is being used for the general student population. If the response indicates a lack of understanding (for example, "the students with disabilities are benefitting from the equipment, just like all of the other students") then you'll need to point to resources on the permissible use of IDEA funds. You can also contact your district and/or state to report misuse of federal funds.

We will add that districts are allowed to reduce their local spending on special education by up to 50% of an increase in federal funds received in one year over the previous year. Those "freed-up" funds can be used for any activity allowable under ESEA. However, our reply above is based on an assumption that the funds spent were, in fact, IDEA federal funds, not "freed-up" local funds."

Question: "Is there a way to find out exactly what each county spent their funds on? Is the school board required by law to give us this information if asked for?"

Reply: "Reporting on how school districts have spent the IDEA Recovery Act funds is less than transparent. However, districts must report to their state, and the state in turn reports to the USED ...which is what results in the reports that we posted monthly on IDEA Money Watch. So, there is certainly a record and it should be available upon request, even if it needs to be done as a Freedom of Information Request (FOIA)." 

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