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U.S. Department of Education: Promoting Educational Excellence for all Americans
Regulations: Part 300 / C / 300.203 / i / 3

(3) The SEA may not consider any expenditures made from funds provided by the Federal Government for which the SEA is required to account to the Federal Government or for which the LEA is required to account to the Federal Government directly or through the SEA in determining an LEA's compliance with the requirement in paragraph (a) of this section.