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SDLA Compliance Resource

Determine and Post Education Protection Account Spending

An implementation guide for deciding how Education Protection Account funds will be spent in open session, posting the annual accounting on the website, and supporting the audit.

  • Fiscal & Budget
  • Governance & Board Approval
Date(s)Spending determination in open session (commonly with budget adoption in June); website accounting posted annually; verified in the annual audit
Applies toSchool districts, county offices, and charter schools that receive EPA funds

In Plain Language: Part of each LEA's LCFF funding comes from the Education Protection Account created by Propositions 30 and 55. The constitution requires the board to decide how those funds are spent in a public meeting, to post an annual accounting of EPA receipts and spending on the website, and not to spend them on administrative salaries or other administrative costs. The annual audit verifies compliance.

Why this matters

EPA compliance is tested in every annual audit. A missing resolution, missing website posting, or administrative charges are audit findings that the board must then correct publicly.

Joint ownership

District: chief business official prepares the spending plan and accounting; the board adopts it; the web team posts it. Auditor: verifies compliance.

From EPA entitlement to a public spending accounting: the SDLA ITO workflow

This workflow documents the board's EPA decision and the public accounting the constitution requires. This SDLA ITO (Input, Transformation, Output) graphic shows how the inputs become the outputs in 9 steps.

SDLA ITO: 9 steps. Input: get the EPA entitlement; pull the instructional budget; collect last year's actuals. Transformation: draft the spending plan; board determination; prepare the accounting. Output: adopted resolution; website posting; audit support.
Read down each column, then move to the next: Input identifies what to collect; Transformation covers draft the spending plan; board determination; prepare the accounting; Output delivers adopted resolution; website posting; audit support. Determine spending in open session; post the accounting annually.

Open the full-size workflow graphic

Implementation workflow

  1. Budget developmentPlan.Estimate EPA receipts and assign them to eligible costs.
  2. Budget adoptionBoard determination.Adopt the EPA spending plan in open session.
  3. After year-end closePrepare the accounting.Summarize actual EPA receipts and spending.
  4. AnnuallyPost.Publish the accounting on the website.
  5. AuditSupport the audit.Provide resource detail and the posting to the auditor.

EPA checklist

  • Spending decision made in open session.
  • No administrative costs charged to EPA.
  • Annual accounting posted on the website.
  • EPA tracked in its designated SACS resource.
  • Audit documentation retained.

Official guidance and help

Source review completed October 25, 2026. Verify the current audit guide's EPA procedures before year-end.