A Guide to Grants Administration
and Implementation Resources

When you accept a grant award you accept responsibilities involving the management and administration of programmatic, financial and reporting aspects of the grant project. Communication and coordination between personnel is essential for a successful grant project. Please bear in mind that the past performance is a consideration in evaluating the award of future grant funding.

To assure the proper and efficient administration of the grant award, responsibilities should be identified and assigned to key personnel within the grantee organization. It is critical that key staff in the grantee organization be directly responsible for each of the functions associated with the administration of the grant project.

The first two months of a new grant is a critical period. Activities often include hiring personnel, purchasing supplies, services and equipment and planning authorized travel and training. A well-developed project plan will help ensure the success of the grant project.

A project that does not start functioning after the effective date of the project grant period increases the risk of failing to complete the grant objectives and may result in unused grant funds. More importantly, the intended beneficiaries of the grant services and activities may not receive all or some of the intended benefits.

The New York State Education Department (NYSED) has separated fiscal and programmatic responsibilities for administering grant programs. For concerns related to programmatic activities, contact the Program Manager listed on the grant award notice. For financial concerns related to grants contact the fiscal contact listed on the grant award notice. The phone numbers for the program contact and the fiscal contact are listed on the grant award notice.

Administering a grant project requires collaboration and coordination between both the local program office and the local business office. However, each of these offices has areas of primary responsibilities for the local grant project.

Local project managers are responsible for the following (not all inclusive):

• Coordinating the preparation of the grant budget with the business office. This will ensure that budgeted line items are classified correctly according to the Fiscal Guidelines for Federal and State Aided Grants.

• Negotiating the grant budget with the NYSED Program Manager;

• Maintaining a file of all grant documents and distributing copies of the relevant grant documents to grant personnel and the business office;

• Coordinating with local decision making committees and other appropriate state and federal programs to maximize the effectiveness of the grant;

• Identifying additional resources to carry out grant project activities;

• Providing reasonable opportunities for teachers, parents, and other interested parties to participate in the planning and operation of the grant project;

• Employing effective procedures for acquiring and disseminating significant information from educational research and promising educational practices to participating teachers and administrators developed through similar projects;

• Reviewing the contents of the grant documents and information as soon as they are received;

• Understand the applicable statutory and regulatory requirements;

• Ensuring that appropriate personnel review the approved application and budget to determine whether modifications were made to the original application during negotiations with NYSED personnel;

• Ensuring that allowable activities are carried out and funds are expended as approved in the application;

• Ensuring the appropriate inventory of equipment, supplies and materials are purchased;

• Ensuring all expenditures and activities are properly documented;

• Although the business office records are the official grant fiscal accounting documents, the project manager must ensure that the project program office's books are compared and reconciled to the business office accounting records on a regular basis;
  

• Ensuring that all the proposed activities are planned, implemented, and completed as approved in the application;

• Submitting budget amendments when required;

• Submitting the following reports, as applicable and in coordination with the business office as needed:
   
  •  Budgets;
  •  Progress/Activity Reports;
  •  Amendments;
  •  Evaluation Reports (also known as final program reports);
  •  Final Expenditure Report; and
  •  Revised Final Expenditure Report

Business Offices are responsible for the following (not all inclusive):

The programmatic, financial, and reporting personnel should all have access to copies of the complete information regarding the grant and to copies of the RFP/grant application to which the grantee responded in order to receive the award.

Introduction

• Office of Management and Budget (OMB) Circulars;

• Request for Proposal (RFP) grant application and Grant Award Notice

• U.S. Department of Education Agency-wide regulations [Education Department General Administrative Regulations (EDGAR)].

The sources of grant requirements that are common to all grant programs include, but are not limited to:

• Statutes and executive orders of general applicability;

• Grant-enabling/authorizing statute and any implementing regulations;

• NYS Education Law;

• NYS Finance Law;

• NYSED Commissioner’s Regulations;

• NYSED Fiscal Guidelines for Federal and State Aided Grants;

• Other NYSED program, policy, handbooks, rules, guidelines, manuals, etc.;

Federal Funding and Program Requirements

The summaries below provide an overview of the many requirements that must be followed in the administration of federal and state programs. The funding and program requirements will be located in the Fiscal Guidelines for Federal and State Aided Grants, grant application and authorizing statutes listed in the RFP. Grantees should carefully review the applicable program statute and regulations for full descriptions  to determine which of the following apply and to ensure compliance with such requirements.

The award of a federal grant and the receipt of federal funds are contingent upon the grantee’s continued compliance with these requirements. Funding can be terminated in the event these requirements are not met.

1.  Uniform Administrative Requirements

The Office of Management and Budget (OMB) Circulars are used for policy issuances by the federal government. Compliance with the applicable uniform administrative requirements, or NYSED’s implementation of those requirements, is a condition of receiving federal funds regardless of which Federal agency is the grantor agency. The OMB Administrative Circulars apply as follows:

2.  Cost Principles

The overall objective of the cost principles is to ensure that, to the extent practical, all similar types of organizations doing similar work with federal funds will follow the same cost principles and procedures. To ensure that costs are treated consistently among all programs, these cost principles also apply to state-funded grants. The OMB Cost Principles Circulars apply regardless of the grantor agency as follows:

3.  Audit Requirements

OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, serves to identify existing important compliance requirements that the federal government expects to be considered as part of an audit. It applies to all recipients of federal grants, including state and local governments, nonprofit organizations, educational institutions, and public charter schools. Refer to Section Thirteen: Audits for more information about audits under the Single Audit Act and required audits for public school districts, BOCES and public charter schools.

4. Drug-Free Workplace

Recipients of grants that are applied for and received directly from the federal government must agree to provide a drug-free workplace. In addition, the grantee shall certify to the federal awarding agency that it will provide a drug-free workplace. Efforts may include, but are not limited to, the following:

• publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the grantee's workplace;

• establishing a drug-free awareness program to inform employees about the dangers of drug abuse in the workplace; the grantee's policy of maintaining a drug-free workplace; any available drug counseling, rehabilitation, and employee assistance programs; and the penalties that may be imposed upon employees for drug abuse violations; and

• making a good faith effort to continue to maintain a drug-free workplace.

Note: This provision does not apply to grants passed through NYSED.

Source: 34 Code of Federal Regulations (CFR) 85 Subparts A-E and 34 CFR Part 85, Subpart F Drug-Free Workplace Act of 1988

5. Gun-Free Schools Act of 1994

The Goals 2000, Educate America Act requires that all recipients of federal funds abide by 20 U.S.C. Chapter 70, Sec. 8921 Gun-free requirements known as the "Gun-Free Schools Act of 1994." This Act requires local educational agencies to have policies in effect to expel from school for a period of not less than one year, a student who is determined to have brought a weapon to a school under the jurisdiction of that local educational agency. In addition, the grantee must certify that the local education agency has a policy requiring referral to the criminal justice or juvenile delinquency system any student who brings a firearm or weapon to school.

The terms "weapon" and "firearm" are defined by 18 U.S.C. Section 2891.

Source: P.L; 103-227, Title X, Part B, Section 1032; P. L. 103-382, Section 14602(a); 18 U.S.C. Section 2891

6. Protection of Pupil Rights

Section 439 of the General Education Provisions Act (GEPA) requires that grantees of federal programs make available for inspection, to parents or guardians of participating children, all instructional materials, including teacher's manuals, film, tapes, or other supplementary material that will be used in connection with any survey, analysis, or evaluation as part of any applicable program. Educational agencies and institutions are required to give parents and students effective notice of their rights under this section.

Additionally, no student shall be required, without the prior written consent of the student or the student’s parents/guardians, as part of any applicable program, to submit to a survey, analysis, or evaluation that reveals information concerning:

• Political affiliations;
• Mental and psychological problems potentially embarrassing to the student or student’s family;
• Sex behavior and attitudes;
• Illegal, anti-social, self-incriminating and demeaning behavior;
• Critical appraisals of other individuals with whom respondents have close family relationships;
• Legally recognized privileged or analogous relationships, such as those of lawyers, physicians, and ministers; or
• Income (other than that required by law to determine eligibility for participation in a program or for receiving financial assistance under such program).

Source: P.L. 103-227; Title X, Part A, Section 1017

7.  Non-Smoking Policy for Children's Services

P.L. 103-277, Title X, Part A, Section 1043 is known as the Pro-Children Act of 1994. This Act prohibits smoking in indoor facilities (or portions thereof) owned, leased or contracted for the provision of routine or regular kindergarten, elementary, or secondary education or library services to children. The law also applies to facilities used for the Head Start programs, WIC programs, and certain health care services for children.

Source: P.L. 103-227; Title X, Part A, Section 1043

8. Lobbying

Public Law (PL) 101-121 and 34 CFR § 82 require that no federal appropriated funds have been paid or will be paid, by or on behalf of the grantee, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of this or any federal grant, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal grant or cooperative agreement, without disclosure.

Source: Section 319, Public Law (PL) 101-121 [31 United States Code (USC) 1352]; 20 USC 3474; and 34 CFR § 82

9. Political Activity

According to 5 CFR Part 151, with some exceptions, a State or local officer or employee may not:

• Use his/her official authority or influence for the purpose of interfering with or affecting the result of an election or a nomination for office;

• Directly or indirectly coerce, attempt to coerce, command or advise a State or local officer or employee to pay, lend, or contribute anything of value to a political party, committee, organization, agency, or person for a political purpose; or

• Be a candidate for elective public office in a partisan election.

Source: Political Activities of State and Local Officials or Employees, 5 CFR Part 151

10. Americans With Disabilities Act

Public services, which include state and local government entities, cannot deny services to individuals with disabilities; participation in programs or activities that are available to individuals without disabilities.

Source: P.L. 101-336, 42 USC sec.12101 and 28 CFR Parts 35 and 36, 29 CFR Part 1630, and 47 CFR Parts 0 and 100

11. Civil Rights

No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

Source: Title VI of the Civil Rights Act of 1964, 34 CFR Part 100

12. Prohibition of Sex Discrimination

No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance.

Source: Title IX of the Education Amendments of 1972, 34 CFR Part 106

13. Prohibition of Discrimination on the Basis of Handicapping Condition

Recipients of Federal and state funds operating public elementary or secondary education programs must annually:

• Undertake to identify and locate every qualified handicapped person residing in the recipient's jurisdiction who is not receiving a public education; and

• Take appropriate steps to notify handicapped persons and their parents or guardians of the recipient's duty to provide a free, appropriate public education, regardless of the nature or severity of the person's handicap.

The provision of an appropriate education is the provision of regular or special education and related aids and services that are designed to meet individual educational needs of handicapped persons as adequately as the needs of non-handicapped persons are met.

Source: Section 504 of the Rehabilitation Act of 1973, 34 CFR Part 104

14. Prohibition of Age Discrimination

No person in the United States shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

Source: The Age Discrimination Act of 1975, 34 CFR Part 110

15. The Family Educational Rights and Privacy Act of 1975, as amended

No funds shall be made available under any applicable program to any educational agency or institution which has a policy of denying, or which effectively prevents, the parents of students who are or have been in attendance at the institution, the right to inspect and review the education records of their children.

Each educational agency or institution must establish appropriate procedures, for the granting of a request by parents, for access to the education records of their children within a reasonable period of time, but in no case more than forty-five days after the request has been made.

The term "education records" means those records, files, documents, and other materials which

• contain information directly related to a student; and

• are maintained by an educational agency or institution or by a person acting for such agency or institution.

No funds shall be made available under any applicable program to any educational agency or institution which has a policy or practice of permitting the release of educational records (or personally identifiable information contained therein other than directory information) of students without the written consent of their parents to any individual, agency, or organization.

The term "directory information" relating to a student includes the following:

• name;
• address;
• telephone listing;
• date and place of birth;
• major field of study;
• participation in officially recognized activities and sports;
• weight and height of members of athletic teams
• dates of attendance
• degrees and awards received; and
• most recent previous educational agency or institution attended by the student.

Any educational agency or institution making public directory information available must give public notice of the categories of information contained in the directory and must allow a reasonable period of time after such notice has been given for a parent to inform the institution or agency that any or all of the information should not be released without the parent's prior consent.

Source: Family Educational Right to Privacy Act (Buckley Amendment) 20 USC S. 1232g; 34 CFR Part 99

16. Maintenance of Effort (MOE)

In general, Maintenance of Effort (MOE) is a fiscal requirement that assures that federal money is not taking the place of local and state dollars in a local school district or other recipient. The MOE requirement varies by program area, so grantees are advised to consult with the authorizing statute and with the NYSED program office responsible for administering the grant.

This provision states, in general, that a grantee (usually a local education agency) may receive grant funds under a particular federal program for any fiscal year only if either the combined fiscal effort per student or the aggregate expenditures of the LEA with respect to the provision of free public education by the LEA for the preceding fiscal year was not less than 90 percent (90%) of such combined fiscal effort or aggregate expenditures for the second preceding year. According to this provision, when an LEA has not maintained effort, the state agency must reduce the amount of the allocation of funds under the grant program in any fiscal year in the exact proportion to which the LEA fails to meet the requirement by falling below 90 percent (90%) of both the combined fiscal effort per student and aggregate expenditures (using the most favorable to the LEA).

Source: 34 CFR § 299.5 and Section 14501, P.L. 103-382

17. Matching/Cost Sharing

The matching provision requires the grantee to bear an equal amount of allowable costs or in-kind contributions to the federal/state cost of the grant program. If the grant agreement stipulates that the grantee must engage in cost sharing, the agreement will specify an amount or percentage of the total program cost to be provided by the grantee. The remaining balance will be received from the Grantor with federal/state dollars as indicated.

In general, for costs to be eligible to meet cost sharing requirements, the costs must first be allowable under the grant program. The value of third party in-kind contributions may satisfy matching or cost sharing. Records for all expenditures relating to cost sharing or matching must be kept in the same manner as those for the grant funds.

Except as provided by federal/state statute, a cost sharing or matching requirement may not be met by costs borne by another federal grant. Refer to Appendix D - EDGAR, 80.24, Matching or Cost Sharing.

Source: 34 CFR § 80

18. Private School Participation

In general, this provision states that a grantee must provide for equitable participation of and equal expenditures for students in private or private nonprofit schools where such private school officials desire that their children participate in the benefits of the program. This provision requires that the grantee annually, and in a manner that is "timely and meaningful," contact the private school officials in their district to determine if they desire their students to receive benefits. The provision also usually requires that only secular, neutral, and non-ideological services, materials, and equipment be provided to participating students. Such participation also usually includes training opportunities for teachers of private school children, but not for substitute teachers required for the training to occur. In all cases, the LEA makes the final decision with respect to the services to be provided to private school participants.

Nonprofit Status

If the authorizing statute provides for equitable services to students and teachers in nonprofit schools only, the participating private schools must retain a nonprofit status as evidenced by the one or more of the following:

1. A copy of a letter from the Internal Revenue Service recognizing that contributions to the organization are tax deductible under Section 501(c)(3) of the Internal Revenue Code;

2. Evidence of a charity registration number issued by the Department of State or a statement from a state taxing body certifying that the organization is a nonprofit organization operating within the state and that no part of its net earnings may lawfully benefit any private shareholder or individual;

3. A certified copy of the applicant's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or

4. Any item described above if that item applies to a state or national parent organization, together with a statement by the parent organization that it is a local nonprofit affiliate.

Equitable Participation

The services that a grantee provides to private school participants must be equitable in comparison to the services and benefits provided to public school participants.

Services are equitable if the grantee:

• addresses and assesses the needs and progress of private school participants on a comparable basis to public school participants;

• determines the number of participants to be served in an equitable manner;

• meets the equal expenditure requirements; and

• provides private school participants with an opportunity to participate that:

is equitable to the opportunity and benefits provided to public school participants; and

provides reasonable promise of participating private school students meeting challenging academic standards called for by the State’s student performance standards and of private school teachers assisting their students in meeting high standards.

Provision of Services

Services may be provided to the private school participants:

• by employees of a public agency; or

• through a contract with a person, an association, agency or corporation who or which, in the provision of services, is independent of the private school and of any religious organizations. Such employees or contracts must be under the control and supervision of the public agency. For this reason, expenditures for substitute teachers for the private school cannot be paid from grant funds, even if the private school teachers are participating in grant funded training or activities.

Access to Equipment and Supplies

The LEA must control and administer all funds used for the benefit of private, nonprofit participants. However, the LEA may place (i.e., loan) the equipment and supplies in a private nonprofit school for the period of time needed for a program.

Compliance

In order for students and teachers in private nonprofit schools to receive the benefits and services of federal grant funds, the private, nonprofit school must demonstrate compliance with:

• Title VI of the Civil Rights Act of 1964, as amended (prohibition of discrimination by race, color, or national origin), and the implementing regulations in 34 CFR § 100;

• Section 504 of the Rehabilitation Act of 1973, as amended (prohibition of discrimination on the basis of handicapping condition), and the implementing regulations in 34 CFR § 104;

• Title IX of the Education Amendments of 1972, as amended (prohibition of sex discrimination), and the implementing regulations in 34 CFR § 106; and

• the Age Discrimination Act of 1975, as amended (prohibition of discrimination on the basis of age), and the implementing regulations in 34 CFR § 110.

Note: Federal programs have different requirements for participation of private for profit schools in regard to whether the private school is private or private nonprofit. Consult the individual program requirements for specific requirements.

Source: 34 CFR § 299.6-299.9; 34 CFR 76.650-76.662

19. Supplement-Not-Supplant

The authorizing statute may state that a state agency or local educational agency may use and allocate funds received under a particular grant only to supplement and not to supplant funds from non-federal sources. Therefore, to the extent practical, the grantee must increase the level of funds that would, in the absence of federal funds, be made available from non-federal sources, and in no case may such funds be used to replace funds from non-federal sources. This means:

• LEAs may not divert state and local funds for other uses simply because these particular grant funds are available;

• LEAs may not use these grant funds to pay for activities required by state law, Commissioner’s Regulations, or local district policy; and/or

• LEAs may use these funds to expand existing programs and/or add new programs that would not otherwise be available from state and local sources.

Source: Authorizing statute of the appropriations

20. Parent Involvement

Parent and/or community involvement is required in many federal/state grant programs. There are various levels of involvement as specified in each grant. The levels of involvement may include consultation, planning, meaningful parent involvement, requirement of a parent/school compact, a district parent policy, a campus parent policy, a parent advisory council, parent training, and/or parent literacy training. Consult the individual program requirements for specific regulations.

Source: The RFP; Authorizing statute of the appropriations

21. Participation in Planning

The grantee will provide reasonable opportunities for the participation by teachers, parents, and other interested parties, organizations, and individuals in the planning for and operation of each program funded.

Source: 20 USC 1232(e)

22. Availability of Information

Any application, evaluation, periodic program plan, or report relating to each of the projects will be made readily available to parents and other members of the general public.

Source: 20 USC 1232(e)

23. Sharing of Information

The grantee must certify that it has adopted effective procedures for acquiring and disseminating to teachers and administrators participating in each program, significant information from educational research, demonstrations, and similar projects, and for adopting, where appropriate, promising educational practices developed through such projects.

Source: 20 USC 1232(e)

24. Limitation on Administrative Costs

The authorizing statute may limit the amount of funds that may be expended to administer the program for any fiscal year. Administrative funds include both direct administrative costs and indirect costs and must be requested in the application on the appropriate budget schedules. The table below may prove useful in determining whether an administrative cost is considered direct or indirect.

Reimbursement of indirect costs under federal awards is determined by an organization’s indirect cost rate, which recipients negotiate with their cognizant agency. For public school districts, BOCES, and public charter schools, NYSED is the cognizant agency. NYSED establishes the restricted and unrestricted indirect cost rates each year using a methodology approved by USDOE.

The restricted indirect cost rate must be used to calculate the allowable indirect costs for those Federal programs with regulatory language requiring funds to supplement and not supplant state and local funds. To maintain continuity between federal and State programs, reimbursement of indirect costs under state funded awards is subject to the same rules and limitations that apply for federal programs.

Source: RFP, the Fiscal Guidelines for Federal and State Aided Grants, Education Department General Administrative Regulations (EDGAR), and authorizing statute of the appropriations

25. Replication/Transportability

It may be that the intent of the program is to provide model programs that can be replicated in other districts with similar needs. In these projects, the applicant must describe the aspects of the program that should allow it to be replicated in other districts. This could include:

• the steps that will be used to develop a process/ guide/replication manual that details the planning process;

• methods used to assess the program needs;

• a complete description of project services and activities;

• complete costs (including any in-kind contributions) of the program;

• areas needing improvement;

• suggested modifications for future programs;

• methods used in evaluating program activities, including any instruments used by the applicant to evaluate components of the program;

• any specialized background/knowledge or training needed prior to receiving the grant in order for someone else to replicate the program;

• any resources (including facilities, equipment/furniture, supplies/materials, hardware/ software, etc.) that must exist prior to receiving the grant in order for someone else to replicate the program; and

• in-service activities and continuing education that would be needed in order for someone else to replicate the program.

Source: RFP; Authorizing statute of the appropriations

26. Coordination of Funding

This information may be required where collaboration and/or coordination with other programs, services, or activities is required or desired. In these cases, applicants must describe how activities funded from this grant will be coordinated with other programs, services, and activities funded from other sources. The purpose of such coordination is to ensure that:

• the use of funds from all sources is maximized;

• program services and activities are not duplicated among programs; and

• services are provided to participants in an integrated, coherent fashion.

Included in the description must be the name(s) of the program(s), the purpose of the program(s), and the specific types of activities and/or services with which activities from this grant program will be coordinated.

Applicants must also describe collaborative efforts or partnerships with other entities in determining needs, designing and developing program objectives and budgets, and providing/conducting program activities. Applicants must include the name(s) of the collaborative partners and a specific description of the fiduciary and programmatic contribution each partner will make to the project.

Source: RFP, Authorizing statute of the appropriations

27. Debarment and Suspension

Grantees may not make any award or permit an award at any tier (i.e. subcontractor/subgrantee) to a party who has been debarred or suspended from participation in federal/state assistance programs. Executive Order 12549 was designed to curb fraud, waste, and abuse and applies to all federal programs, regardless of the dollar amount of the award. The order established government-wide rules for non-procurement debarment or suspension. The Office of Management and Budget implemented the order by issuing guidelines stating that "…it is the policy of the Federal government to conduct business only with responsible persons. Debarment and suspension are serious actions which shall be used only in the public interest and for the Federal government's protection and not for the purpose of punishment."

Debarment may be imposed for:

• Conviction of or civil judgment for fraud, criminal offense relating to obtaining or performing a public/private agreement or transaction, violation of antitrust statutes, embezzlement, theft, forgery, bribery, falsification or destruction of records, false claims, obstruction of justice, or "commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a person";

• Violation of a public agreement so as to affect the integrity of an agency program;

• Doing business with a debarred, suspended, ineligible, or voluntarily excluded person knowingly,

• Failure to pay a substantial debt or a number of outstanding debts,

• Violation of a material provision of a voluntary exclusion agreement,

• Violation of any requirement related to drug-free workplace; or

• Any other cause of such a serious or compelling nature that affects the present responsibility of a person.

For purposes of suspension actions, indictment shall constitute adequate evidence. Suspension may be imposed upon adequate evidence of:

• The commission of an offense listed above for debarment; or
• The existence of a cause for debarment.

Grantees are required to submit certifications of nondebarments/nonsuspensions along with applications for Federal grants. By signing the application, the applicant is certifying that it is neither debarred nor suspended from receiving federal funds. This certification is required for all federally funded grants and contracts regardless of the dollar amount.

Grantees may not subcontract with or award subgrants to any person who is debarred or suspended. All procurement contracts equal to or greater than $25,000, and all subgrants regardless of the dollar amount, must contain the same clauses/certification regarding debarment and suspension for the subcontractor or subgrantee to sign as are in the grant application package. The federal General Services Administration (GSA) compiles, maintains and distributes a list for all persons who have been debarred, suspended, or voluntarily excluded. Grantees may contact the GSA to review the Nonprocurement List to determine if any of its subcontracting/subgranting parties are debarred or suspended.

Source: 34 CFR Part 85
 

Introduction

Grant funds must be expended on allowable activities in accordance with the approved budget and in accordance with the applicable cost principles. The Office of Management and Budget (OMB) defines allowable costs for federally funded grants through established cost principles as outlined in:

Regulations as issued by the U.S. Department of Education and the New York State Commissioner of Education may further define and restrict allowable costs. The rule of precedence states that the most restrictive cost provisions applicable to the grant prevail.

NYSED applies the federal cost principles to state-funded grants to allow for consistency and uniformity in the administration of all grants.

All encumbrances shall occur on or between the beginning and ending dates of the grant project. All goods must be received and services rendered and subsequently liquidated (recorded as an expenditure or accounts payable) within the allowable time frames. For further details refer to the Fiscal Guidelines for Federal and State Aided Grants. In no manner shall encumbrances be considered or reflected as accounts payable or as expenditures. Obligations that are liquidated and recognized as expenditures must meet the allowable cost principles in OMB Circular A-87, A-21, or A-122 (as applicable) and program rules, regulations, and guidelines contained elsewhere. (See Appendix C, Comparison of Cost Principles for further details.)

Allowable Costs

Some major costs that may be allowable to the grant include, but are not limited to, the following:

General Principles for Allowable Costs

To be an allowable cost it must:

Direct and Indirect Costs

All allowable direct and indirect costs allocated to the grant, minus any applicable credits, constitute the total costs.

Direct Costs are any costs that can be specifically identified with an item of expense.

Indirect Costs are broadly defined as central administrative costs and certain other organization-wide costs that are incurred in connection with a project but that cannot readily be identified with the project.

Direct Costs include:       

Indirect Costs include:       

Reimbursement of indirect costs under federal awards is determined by an organization’s indirect cost rate, which recipients negotiate with their cognizant agency. For public school districts, public charter schools and BOCES , NYSED is the cognizant agency.

NYSED calculates the indirect cost rates for school districts and BOCES based on a methodology approved by USDOE using information reported by the districts and BOCES in their respective ST-3 or SA-111 submissions. The indirect cost rates change annually and are effective from July 1 of the current year to June 30 of the following year.

Two types of indirect cost rates are used with programs funded through the NYSED:

Costs included in the indirect cost calculation may not also be directly charged to a program.

Unallowable Costs

An unallowable cost is any cost that cannot be charged to the grant regardless of whether the cost is treated as direct or indirect. Costs listed as allowable under an OMB Circular may not be allowable under the terms and conditions of a grant program.

Grant programs are for specified purposes. Costs may be allowable provided that they are necessary and reasonable to the success of the grant program. Although a cost may be identified as "allowable" in the cost principles, this does not always guarantee that NYSED program managers will support the use of funds in a particular program. Therefore, certain costs that might ordinarily be allowable, may be negotiated out of the application. Be sure to review the approved budget thoroughly to verify allowable costs. For any questions, please refer to the appropriate NYSED Program Manager.

Travel Costs: Only the actual and necessary expenses essential to the ordinary comforts of a traveler in the performance of official duties will be reimbursed, except that a daily allowance is established for subsistence. Any costs incurred by the traveler in excess of actual and necessary are unallowable costs.

Subcontracting

The grantee shall not assign or subcontract any of its rights or responsibilities under the grant project, except as may be otherwise provided for in the application, without prior approval of an amendment (FS-10-A) to the grant project. (See Section Seven for further information on Amendments and Section Six for further information on Subcontracts)

Refunds

If NYSED determines that it is due a refund of money paid to the grantee, the grantee must pay the money within 30 days of receipt of written notice that the money is due. If the grantee fails to make timely payment, NYSED may obtain the money by any means permitted by law, including, but not limited to, offset, counterclaim, cancellation, termination, suspension, total withholding, and/or disapproval of all or any subsequent applications for funds.

Introduction

Grant funds may be used, if provided for in the approved grant, to pay all or part of the salaries and allowable fringe benefits of personnel who are directly working on the grant project. Records must be maintained to describe the duties and pay of each grant-funded position.

Grant employees may spend 100% of their time on conducting grant program activities. In this case, these employees may be paid 100% from grant funds. Other grant employees may spend only part of their time conducting grant activities, in which case these employees may be paid partially from grant funds, according to the time actually spent on grant activities.

All employees to be directly charged to the grant must be budgeted and approved. Grantees may charge the grant program only for actual number of days worked and the actual percentage of time worked on the grant program based on time and effort documentation or a substitute system.

For grantees who must comply with OMB Circular A-87, all charges to payroll for grant-funded personnel must be based on one of the following:

1. certification;

2. time and effort records; or

3. a substitute system.

1. Certification - For employees who are 100% funded from the grant

Employees who work under a single grant program or who work under a single cost objective are not required to maintain time and effort records. However, each employee or supervisor having knowledge of the employee’s activities must certify at least semi-annually, that he/she worked solely on that program or cost objective for the period covered by the certification. The certification must be signed by the employee or by the supervisor having first-hand knowledge of the work performed. Charges to the grant must be supported by these semi-annual certifications.

For example, an employee may be listed as the parent involvement coordinator under several grants, i.e. funding sources, but because that employee performs parent involvement activities 100% of their work day, that employee would be considered to be under a single cost objective.

2. Time and Effort Records - For employees who are partially funded from the grant
(As the requirements for Time and Effort differ among entity types, please refer to OMB Circular A-87, A-21, or A-122).

Employees who work under multiple grant programs or who work under multiple cost objectives (i.e., whose salaries are prorated between or among different funding sources) must prepare time and effort reports, at least monthly, to coincide with pay periods. Such reports must reflect an after-the-fact distribution of 100 percent of the employee’s actual time and must be signed by the employee and their supervisor. Charges to payroll records must be then adjusted, based on this documentation, at least quarterly to coincide with preparation and submittal of the quarterly expenditure report. This requirement applies to all projects, regardless of funding source, unless otherwise specified. For federally funded projects, time and effort records must be in accordance with the requirements in the applicable OMB cost principles.

NOTE: For grantees that must comply with OMB Circular A-122 (i.e., nonprofit organizations) must maintain time and effort records 100% of the time, even if they are 100% funded from a single grant.

3. Substitute System - Alternate method for employees who are partially funded from the grant

In lieu of time and effort records, grantees may choose to implement a substitute system that may include, but is not limited to, random moment sampling, case counts, or other quantifiable measures of employee effort. Substitute systems that use sampling methods must meet acceptable statistical sampling standards. Documentation of rationale and calculations for allocating salaries and wages must be maintained for audit purposes. It is recommended, but not required, that a copy of a Certified Public Accountant's (CPA) approval of a substitute system be kept on file for documentation.

State-Funded Grants

For state-funded grants, time and effort records must be maintained for those personnel whose salaries are prorated between or among different funding sources (and when not working under a single cost objective) to ensure state-funded grants bear their fair share of costs. Grantees must adjust payroll records and expenditures based on this documentation.

For example, for budget planning purposes, the percentage of time that an employee works under a particular funding source may be estimated. During the actual performance of that work the employee must keep ongoing, contemporaneous documentation of the time spent working under that funding source. Samples of appropriate documentation would be calendars, time and effort reporting forms, etc. After the fact, the payroll records must be adjusted from the estimated percentages to the actual percentages.

Introduction

Grantees must maintain a procurement and contract administration system that ensures that all contractors/ subcontractors, including consultants, perform in accordance with the terms, conditions, and specifications of their contracts/written agreements. In addition, grantees and sub-grantees will use their own procurement procedures that reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal law and the standards in the U.S. Education Department General Administrative Regulations (EDGAR), Part 80, section 36. NYS General Municipal Law includes the provisions of State law pertaining to procurements.

Unfair Business Practices

The grantee must certify that no funds provided under a NYSED grant will be used to purchase supplies, equipment, or services from any companies found to be guilty of unfair business practices within 12 months from the determination of guilt.

Grantee Responsibilities

In general, the grantee must:

• maintain a copy of a signed contract/agreement/purchase order for services to be performed and the rationale/procedure for selecting a particular contractor;

• for all contracts in excess of $10,000, describe in the contract/agreement conditions under which the contract may be terminated, including the basis for settlement;

• be aware that all materials, conceptions and products arising from the grant project produced or conceived by the grantee, its employees, agents, consultants, or subcontractors are the sole property of NYSED. NYSED will have the exclusive right to copyright, patent, and trademark these materials, conceptions, and products subject to applicable law. The grantee must also bind all concerned through written agreements with subcontractors;

• not assign or subcontract any of its rights or responsibilities under the grant, except as may be otherwise provided for in this application, without prior formal written amendment of the grant properly executed by both NYSED and the grantee;

• maintain evidence that awards were made only to contractors/consultants possessing the ability to perform successfully under the terms and conditions of the proposed contract/procurement (i.e., consultants were selected based on demonstrated competence, qualifications, experience, and reasonableness of costs; and consideration was given to contractor integrity; compliance with public policy, record of past performance, and financial and technical resources in selecting contractors, purchases of equipment for contractor use are prohibited based upon this requirement);

• contract only with persons not employed by the grantee;

• not participate in the selection or award of a contract if a conflict of interest would be involved;

• maintain records on the services performed, including the date the service was performed and the purpose of the service, and ensure that the services are consistent and satisfactory with that described in the signed contract/purchase order;

• make payment only after the service was performed and not before (as required by State and federal law and except, in most cases, where a deposit is required for normal business practice, as in the case of utility service purchases);

• not use or pay any consultant in the conduct of this application if the services to be rendered by any such consultant can be provided by grantee’s employees;

• ensure that funds have been expended in accordance with the grant application; and

• ensure records are maintained which ensures that contractors and vendors perform in accordance with the terms, conditions, and specifications of their contracts/purchase orders as illustrated by a copy of a signed contract/agreement/purchase order for services to be performed and the rationale/procedure for selecting a particular contractor/vendor.

Copyright/Ownership

It is the grantee’s responsibility to protect the rights and ownership by New York State and the federal government, if applicable, by ensuring that all materials, conceptions, and products arising from the grant project produced or conceived by the grantee, its employees, agents, consultants, or subcontractors are the sole property of NYSED and New York State. NYSED has the exclusive right to copyright, trademark, and patent these materials, conceptions, and products subject to applicable law. The grantee does not have the authority and is prohibited from giving away such rights to any subcontractors/sub-grantees. The grantee must so bind all concerned, including its employees, agents, consultants, or subcontractors in written agreement with the subcontractors. All subcontracts/sub-grants awarded by the grantee must contain a similar provision that ensures that New York State and NYSED, retain ownership and rights to all materials, conceptions, and products developed with grant funds.

Grantees and former grantees are encouraged to share with other school districts, BOCES, and Public Charter Schools in New York State, those materials, conceptions, and products arising from the grant project produced or conceived by the grantee, its employees, agents, consultants, or subcontractors. The grantee is permitted to recover the cost of this sharing at the cost of reproduction and distribution to the grantee. The grantee may not make a profit on such materials, conceptions, and products and must give credit to NYSED for the provision of the original grant.

Introduction

Grant agreements frequently include budgetary authorization for the purchase of supplies and capital outlay (furniture and/or equipment) considered necessary to successfully carry out the purpose of the grant program. Grantees are required to ensure that a control system is in effect to guarantee adequate safeguards to prevent loss, damage or theft of the property; the property is kept in good condition; and that the property is used for the purposes of the grant program.

Applicable Definitions (EDGAR § 80.3)

Acquisition Cost

The definition of acquisition cost is the net invoice unit price of the property, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, shall be included or excluded from the unit acquisition cost in accordance with the grantee's regular accounting practices.

Equipment

For purposes of NYSED grants and reporting of equipment costs, the definition of equipment is tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. A grantee may use its own definition of equipment provided that such definition would at least include all equipment defined above. LEAs and other grantee organizations should have a capitalization policy covering grant equipment that establishes the dollar value for capitalized equipment and other capital outlay materials.

Supplies

Supplies are defined as all tangible personal property other than "equipment" as defined above. Supplies purchased with grant funds, as budgeted in the grant agreement, belong to the grantee. Supplies are to be used for the originally authorized purposes as long as needed for that purpose. (See EDGAR 80.33 Regarding disposition of supplies whose cumulative value are over $5,000 when a grant is terminated.)

Capital Outlay

If the grantee purchases capital outlay (furniture and/or equipment) to accomplish the objective(s) of the project, the title will remain with grantee for the period of the grant. NYSED reserves the right to transfer capital outlay items for noncompliance during the project period or as needed after the ending date of the grant.

When replacing capital outlay items, the items to be replaced may be used as a trade-in or the items may be sold and the proceeds used to offset the cost of the replacement item.

Notwithstanding the encouragement to earn program income, EDGAR Section 80.25, capital outlay items purchased with grant funds must not be used to provide services for a fee to unfairly compete with private companies that provide equivalent services.

When the capital outlay items are no longer needed for the originally authorized purposes, the items may be used in other activities currently or previously supported by NYSED or the U.S. Department of Education. Refer to the subsection entitled "Use and Disposition of Equipment" for additional information.

Property Management Requirements

The grantee is required to manage property acquired in whole or in part with grant funds by establishing and using procedures that meet 34 CFR § 80.32, including the following requirements:

• Take physical inventory of grant acquired property and reconcile results with property records;

• Develop control system to ensure adequate safeguards to prevent loss, damage, or theft of the property. Capital outlay items must be properly tagged in order to maintain control and inventory of such;

• Develop maintenance procedures to keep property in good condition; and

• Establish procedures to sell grant-acquired property (when authorized or required) to ensure the highest possible return.

Building Purchases/Construction

Unless specifically authorized in statute, construction is not allowable from federal and state grants. Additionally, a district cannot purchase a building with local funds and then charge rent to the grant program for use of the building, unless the district is charging all other state and federal programs for building space in the same manner and this practice is part of the district’s cost allocation system.

Use and Disposition of Equipment

When property acquired with grant funds is no longer needed for the original purpose or for other activities currently or previously supported by NYSED or the U.S. Department of Education, disposition will be made as follows: