A Guide to Grants Administration
and Implementation Resources

Version 2
Updated 7/13/10

This guide is an information resource for recipients of grants administered by the New York State Education Department (NYSED).  It is a compendium of the processes, statutes, regulations and requirements for federal and State funded grants.  While the guide was developed for School Districts, BOCES and Public Charter Schools, the requirements and processes also apply to colleges, universities, libraries, community based organizations and other organizations. 

Questions concerning processes or financial requirements outlined in this guide should be referred to:

New York State Education Department
Grants Finance
Education Building, Room 510W
89 Washington Avenue
Albany, NY 12234
Phone:  (518) 474-4815   Fax: (518) 486-4899
E-mail  grantsweb@mail.nysed.gov

Questions concerning administering grants or specific program requirements should be referred to program contact listed in the grant application or Grant Award Notice.

The State Education Department does not discriminate on the basis of age, color, religion, creed, disability, marital status, veteran status, national origin, race, gender, genetic predisposition or carrier status, or sexual orientation in its educational programs, services and activities.  Portions of this publication can be made available in a variety of formats, including braille, large print or audio tape, upon request.  Inquiries concerning the policy of nondiscrimination should be directed to the Department’s Office for Diversity, Ethics, and Access, Room 530 Education Building, Albany, NY 12234. 

January 2007

TABLE OF CONTENTS

Appendices

  1. Glossary
  2. Assurances
  3. Grant Award Notice
  4. (Additional)
  5. Acronyms
  6. Other Links
     

Section One:  Preparing for the Grant

Introduction

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.

Start-up

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.

New York State Education Department Responsibilities

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.

Grantee/Fiscal Agent Responsibilities

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.

Project Manager Responsibilities

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

Business Office Responsibilities

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

  • Maintaining fiduciary and financial responsibility for all grant activities

  • Maintaining the fiscal integrity of all financial and financially related reports for grants, grant contracts and contracts;

  • Ensuring charges to the grant are appropriate;

  • Processing and maintaining the accounting data for the grant.

  • Grant accounting shall include the details of all grant transactions, from the approval of the proposed grant to final action by the Grantee and Grantor.

  • Requesting funds periodically by submitting properly completed Requests for Interim Payments (FS-25’s).

  • Preparing and submitting the Final Expenditure Report (FS-10-F) by the required due date and certifying expenses are true and correct.

  • Classifying and reporting the accounting transactions properly, according to the Fiscal Guidelines for Federal and State Aided Grants.

  • Grant accounting records should include but are not limited to the following:
     

  • 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.

    Flowchart - Grant Project

    1. Access or receive the Request for Proposal (RFP)/grant application.

    2. Complete application, and all appropriate forms and certifications.

    3. The authorized official must sign the application.

    4. Submit application to address stated by due date.

    ò

    1. Receive notice of selection for funding by NYSED.

    2. Receive the Grant Award Notice.

    3. Receive a copy of the approved Budget (FS-10).

    4. Identify and assign responsibilities to key personnel.

    ò

    Plan for Project Implementation

    1. Review and coordinate with the district and building level decision-making committees and coordinate with other appropriate State and federal programs to maximize the effectiveness of the grant.

    2. Identify additional resources needed to carry out the activities.

    3. Provide reasonable opportunities for teachers, parents, and other interested parties, organizations, and individuals to participate in the planning for and operation of the project.

    4. Employ effective procedures for acquiring and disseminating significant information from educational research and promising educational practices to participating teachers and administrators developed through similar projects.

    ò

    Implement grant project activities with business office to establish financial accounting system to record expenditures and receive grant payments.  Hire grant personnel, order supplies and materials and provide training (if approved in grant agreement budget) in a timely manner so that program participants received the maximum benefit from services. Establish workflow procedures for data collection/maintenance and expenditure/progress/ evaluation reporting. Carry out grant activities as described in the approved grant application, including conducting comprehensive planning to ensure that appropriate policies and procedures are in place to ensure the efficient, effective, and proper administration of the grant through sound management principles, including regular communication between the appropriate program and fiscal personnel. Implement the program components/activities on schedule (or within a reasonable amount of time) according to the timeline described in the task/activity plan in the application. Grantee should have policies and procedures in place to ensure grant programs are implemented in a timely fashion. Monitor grant activities on an ongoing basis to determine whether the program is meeting its stated goals and achieving the desired results based on established performance indicators. Submit progress/activity reports and expenditure reports as required. Monitor expenditures, project progress and timeline. Evaluate the grant project on an ongoing basis and according to the approved evaluation plan. File evaluation report as indicated in grant agreement.

    ò

    1. Close Out Grant Project.

    2. Verify submission of all required program and financial reports.

    3. Verify receipt of all applicable grant payments or return of any overpayments.

    4. Retain all programmatic and financial data for a period of 6 years after the last payment was made unless otherwise specified by program requirements. Additionally, audit or litigation will "freeze the clock" for records retention purposes until the issue is resolved.

    5. Manage equipment and supplies purchased with grant funds as stipulated in the grant award and in accordance with applicable state and federal regulations.

    ò

    Continuing Responsibilities

    1. The right of NYSED to disallow costs and recover funds on the basis of an audit or monitoring visit;

    2. The obligation of the grantee to refund any monies due as a result of later corrections or other transactions;

    3. The need for the grantee to meet audit requirements under the Single Audit Act in OMB Circular A-133;

    4. The requirement to retain records for a minimum of 6 years after the last payment was made unless other wise specified by program requirements. Additionally, audit or litigation will "freeze the clock" for records retention purposes until the issue is resolved; and

    5. Property management standards must continue as described in Section Eight: Property Management.

     

    Section Two:  Common Grant Requirements

    Introduction

    Grant agreements may be in the form of an application or a contract.  The agreements may be several pages long and specify numerous terms, conditions and specifications governing a grant's award and operation. The primary sources of grant requirements most frequently referred to, especially for Federal Grants, are:

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

    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:

    Office of Management and Budget (OMB) Circular A-102, Grants and Cooperative Agreements with State and Local Governments and Grants Management Common Rule (GMCR) [formerly included in A-102], Uniform Administrative Requirements for Grants & Cooperative Agreements to State & Local Governments (codified in 34 CFR Part 80)

    State and local governments including state agencies, public school districts, public charter schools, BOCES, or other local governments

    OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Nonprofit Organizations (codified in 34 CFR Part 74)

    Institutions of higher education (IHE) and nonprofit organizations

    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:

    OMB Circular A-87, Cost Principles for State & Local Governments

    State and local governments including state agencies, public school districts, BOCES and public charter schools.

    OMB Circular A-122, Cost Principles for Nonprofit Organizations

    Nonprofit Organizations

    OMB Circular A-21, Cost Principles for Educational Institutions

    Educational Institutions (i.e. Institutions of Higher Education (IHE))

    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:

    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:

    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:

    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:

    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

    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:

    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:

  • 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:

    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:

    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:

    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.

    Administrative Cost

    Definition

    Typical Usage

    Direct

    A cost that can be identified specifically with a particular cost objective, such as a grant, project, service or other activity of an organization.

    Costs for personnel who supervise the activities of program staff, or any direct costs for personnel who perform fiscal and reporting activities related to the grant; Costs for contracted services associated with the administration of the program; Costs for supplies and materials requested for administrative use; Other operating costs requested for administrative purposes; and Equipment requested for administrative purposes.

    Indirect

    A cost that has been incurred for common, joint or multiple objectives of an organization that cannot be readily identified with any one particular cost objective.

    Costs of operating and maintaining facilities; General administration and general expenses, such as budgeting, accounting, human resources, legal, and purchasing. Centralized services, such as motor pools and information systems; and Personnel and accounting administration.

    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:

    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:

    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:

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

    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
     

    Section Three: Grant Financial Management and Accounting

    Introduction

    Grantees must have a proper financial management system in place in order to receive a grant and expend funds associated with a grant awarded by NYSED. Grantees must expend and account for the expenditure of funds in accordance with certain standards. Failure to establish and maintain a proper financial management system could result in the return of funds to NYSED and/or the termination of the grant. In addition, grantees should bear in mind that past performance is a consideration in evaluating the awarding of future grant funds.

    Grantees are accountable for the accumulation and reporting of data concerning grant funds as stipulated in the grant agreement. Requirements and procedures are established to ensure that grant funds are expended and accounted for in a method that provides accuracy, uniformity, and consistency.

    Grantees must maintain adequate documentation to support charges to the grant. Grant accounting shall include the details of all grant transactions, from the approval of the proposed grant, to final action by the Grantee and Grantor. Grantees must maintain adequate documentation that demonstrates the Grantee adhered to the terms and conditions of the grant and performed the approved activities. 

    Upon approval of a budget, a Grant Award Notice is mailed to the Grantee.  This establishes a commitment of funds. Grantees are required to follow the conditions of the grant that include, but may not be limited to:

    The major components of grantee financial management include:

    Basic Requirements

    School districts and BOCES are required to comply with the accounting procedures set by the Office of the State Comptroller. However, under 34 CFR § 80, a grantee organization not listed above is not required to change its formal accounting system to comply with federal/state requirements but must be capable of providing the financial information required within the grant agreement. All grantee accounting systems must comply with Generally Accepted Accounting Principles (GAAP). Due to differences in budgetary and grant cost categories, a grantee may be required to develop subsystems to account for grant funds.

    Financial Management Standards (34 CFR § 80.20)

    At a minimum, grantee financial management standards must provide:

    Common Elements of a Financial Management System

    Grantee accounting systems have basic elements that are common to all grants:

    1. internal controls,
    2. recordkeeping, and
    3. reporting.

    1. Internal Controls

    Internal controls means a process designed by the grantee organization to provide reasonable assurance the following objectives will be achieved:

    These controls must include all methods adopted by a grantee to safeguard its assets, comply with management policies and grant terms and conditions, and provide reliability of accounting information data.

    Internal control consists of five interrelated parts:

    These components apply to all entities although they may be implemented differently. 

    (See OMB Circular A-133 and the Office of the State Comptroller’s web site, www.osc.state.ny.us,  for additional information on internal controls and internal control systems).

    An independent auditor, conducting an audit under the Single Audit Act, examines the entity’s system of internal controls.

    Operating controls verify that adopted management policies are followed. These include organization charts, procedure manuals, budgetary system, reporting system and record keeping system.

    Accounting controls are procedures implemented to ensure reliability of financial data and assurances that transactions are reviewed and authorized. Controls include appropriate separation of duties, approval authority of goods and services and review of financial activity.

    Compliance controls ensure the appropriateness of grant expenditures in accordance with the terms and conditions of the grant, grant contract or contract.

    NYSED is responsible for monitoring the grantee's reporting, record keeping, internal operating, accounting control systems, and compliance with applicable program requirements, guidelines and the approved application. It is the responsibility of the grantee to monitor any subgrantees/subcontractors for compliance as applicable. Grantees must also conduct periodic self-assessments to determine compliance with applicable regulation and guidelines.

    Written documentation of internal operating and accounting controls should be developed as a means to provide one consistent policy across an organization. In addition, management must test the controls in place for efficiency and successfulness and correct any deficiencies that may be detected.

    2. Record Keeping

    Grantees must provide a mechanism to ensure that data is accumulated, financial reports can be generated, and costs do not exceed the approved budgeted amount or allowable budget variation for each program, activity, or other budget category.

    Cash Management Requirements

    Upon approval of a budget an initial payment is automatically processed.  The amount of the initial payment is generally 20% for Federally funded programs or 25% for State programs, however, there are some programs where the initial payment is greater.  Grantees may request additional interim payments up to 90% of the approved budget  for expenditures already made and/or for anticipated cash needs for the next reporting period.  The final payment of 10% will be processed once a properly completed Final Expenditure Report (FS-10-F) is submitted. 

    Refer to Section Ten of this handbook for more information on cash management and requesting reimbursement.

    Supporting Documentation

    Supporting or source documents are required to support all transactions entered into the Grantee's record keeping system. Source documents that authorize the disbursement of grant funds consist of purchase orders, contracts, time & effort records, delivery receipts, vendor invoices, travel documentation and payment documents, including check stubs.

    Audit Trail

    Transactions should be organized, summarized and maintained in a manner that provides the information necessary for the financial statements. The audit trail should allow an auditor to trace financial statement balances through the general ledger and other summary journals to each detailed accounting transaction and supporting source documentation.

    Example: An audit trail for an employee travel event should include, as appropriate:

    Monitoring

    NYSED is required to monitor the expenditures and activities of local grant programs. Monitoring may be accomplished by field visits from the responsible NYSED program office, desk reviews of information and reports submitted to NYSED, and by audits conducted by NYSED’s Office of Audit Services.

    Monitoring includes the review of the project to determine if it is in compliance with laws, regulations, rules, and the approved application, and to verify that it is on schedule regarding the project goals, objectives and timelines, as established in the application.

    Grantees should practice the following strategies:

    Examples of the types of documents that may be reviewed include:

    Budget Requirements

    Grants must have the funds budgeted in the detail as provided for in the grant application and in the approved budget.  Grant accounting must be in accordance with Generally Accepted Accounting Principles (GAAP).

    Emphasis must be placed on referring to the approved budget and line items in the approved grant application to set up the budget in the accounting records and to record obligations and expenditures. Grantees, auditors, and field monitors must be able to compare actual expenditures to budgeted expenditures.

    The Budget Summary (the last page of the FS-10) summarizes the budget by costs category/object code of expenditures.

    It is important to obligate and expend funds in accordance with the approved budget. Obligations must occur by the end date of the project.  Expenditures must be made in sufficient time to allow preparing and submitting the final expenditure report by the due date. Noncompliance could result in detailed expenditure reporting, return of funds to NYSED, or termination of the grant.

    Amendments must be prepared and submitted to NYSED in advance of incurring obligations/expenditures if the grantee wishes to spend funds for a line item not budgeted. Also, an amendment must be submitted to NYSED in advance of incurring obligations/expenditures if such obligations/expenditures will cause the allowable budget variation to be exceeded. Refer to the section on Amendment Procedures to determine if/when an amendment is needed.

    3. Reporting         

    Program and fiscal reports should be completed and submitted within the stated time frames.  The project manager should work cooperatively with the business office to ensure the reports are submitted as required. The required fiscal reports include the budget (FS-10), amendments (FS-10-A’s), requests for interim payments (FS-25’s), and final expenditure reports (FS-10-F’s).  The final expenditure reports must be submitted by the due dates.

    See Section Twelve - Expenditure Reporting for further details regarding these reports.
     

    Section Four: Expending Grant Funds - Basic Cost Principles

    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:

    OMB Circular A-87 State and Local Governments (i.e. LEAs, BOCES, or Public Charter Schools)
    OMB Circular A-122 Nonprofit Organizations
    OMB Circular A-21 Educational Institutions (i.e. Institutions of Higher Education (IHE))

    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:

  • Equipment and furniture with an acquisition cost of $5,000 or more. "Equipment" is defined as an article of non-expendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals the capitalization level established by the LEA for financial statement purposes; or $5,000, whichever is less. The acquisition cost includes the cost of the asset and the cost to put it in place. This will include the invoice price of the equipment and any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired;

  • Amounts authorized for travel in accordance with the local agency’s written policies or governance on employee travel; or in accordance with New York State’s travel rates, which can be found at the following federal site www.gsa.gov .  Once at the site choose Travel Management found in the Policy tab; and then Per Diem; and Per Diem Rates. A grid of the country will appear, click on NYS and the rates will appear.

  • Improvements that materially increase the value or useful life of equipment or other assets with an acquisition cost of $5,000 or more. An "improvement" is defined as a betterment to an existing asset that results in increased productivity, better service, or longer life.

  • General Principles for Allowable Costs

    To be an allowable cost it must:

  • be necessary, reasonable and allocable to the grant program in a manner as provided for in the approved grant project;

  • comply with the provisions of the grant program as well as other applicable federal and State laws and regulations;

  • be consistent with allocation policies that apply to all activities of the grantee (i.e., determination of direct/indirect costs must be applied uniformly to all grant agreements when costs are incurred for same purpose in like circumstances);

  • be accounted for on a consistent basis and in accordance with generally accepted accounting principles (GAAP);

  • not be allocated or expended on any other grant agreement unless allowed by federal/state law or regulations;

  • not be used for cost sharing or matching on any other grant agreement unless allowed by federal/state law or regulations;

  • be properly documented;

  • be net of applicable credits (i.e., purchase discounts, rebates or allowances, adjustments of overpayments; and insurance refunds); and

  • not be prohibited by law.

  • 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:       

  • Costs for personnel who supervise the activities of program staff, or any direct costs for personnel who perform fiscal and reporting activities related to the grant;

  • Costs for contracted services associated with the administration of the program;

  • Costs for supplies and materials requested for administrative use;

  • Other operating costs requested for administrative purposes; and

  • Equipment requested for administrative purposes.

  • Indirect Costs include:       

  • Costs of operating and maintaining facilities;

  • General administration and general expenses, such as budgeting, accounting, human resources, legal, and purchasing.

  • Centralized services, such as motor pools and information systems; and

  • Personnel and accounting administration.

  • 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:

  • Restricted Rate - The restricted rate is applicable to all State programs and those Federal programs with regulatory language requiring funds to supplement and not supplant state and local funds (e.g., ESEA Title I). Restricted rates generally range from 1 percent to 7 percent.

  • Non-restricted Rate - The non-restricted rate is applicable to those federally aided programs that do not have supplement/supplant provisions (e.g., National School Lunch Program, Breakfast Program). Non-restricted rates generally range from 10 percent to 25 percent.

  • 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.

    Section Five: Record Keeping for Grant-Funded Personnel

    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.

    Section Six: Procurement/Subcontracts

    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:

    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.

    Section Eight:  Property Management

    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:

  • Maintain property records within a fixed asset inventory system that include:

  • 1) the description of the property;
    2) the serial number;
    3) the source of the property;
    4) the name of the entity that holds title;
    5) the acquisition date and cost;
    6) the percentage of federal/state participation in the cost of the property;
    7) the location and condition of the property; and
    8) any disposition data including date and sale price of the property.

    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:

    Items of equipment with a current per-unit fair market value of less than $5,000:

    or

    Items of equipment with a current per-unit fair market value of $5,000 or more:
     

    ò

     

    ò

    May be retained, sold or otherwise disposed of with no further obligation to NYSED, except that NYSED reserves the right to transfer furniture/equipment (regardless of how it is classified) to another grantee after the grant period.

     

    May be retained or sold and NYSED has a right to an amount calculated by multiplying the current market value or proceeds from the sale by NYSED’s share of the equipment. The grantee must notify NYSED, in writing, of any equipment meeting these conditions to give NYSED the right to a refund or to transfer the items to another grantee.

    Refer to EDGAR, 34 CFR § 80.32, Disposition of Equipment for further details.

    Section Nine: Program Reporting

    Introduction

    Program reports are an integral part of the grant agreement. The Grantee is responsible for monitoring grant-supported activities to ensure compliance with applicable federal and State requirements, the RFP, and the approved grant application. In addition, the grantee must monitor progress of the project on an ongoing basis to ensure that time schedules are met and performance goals are being achieved.

    Program Reports

    Progress/activity reports must be submitted when required. The grant agreement will specify the requirements and timelines for submitting interim and final reports. The NYSED program manager may specify a particular format in which to submit the report in order to allow for standardization and summarization of the data. Progress/activity reports usually describe the activities conducted and compare actual accomplishments to the objectives established for the grant period. Narratives provide a means to explain the variances between the actual accomplishments and established objectives. Grantees should, at a minimum, provide a statement of progress in achieving the stated goals with a list of results (both positive and negative).

    A grantee may be required to submit quarterly or mid-year progress/activity reports and an annual report, usually referred to as the final evaluation report. Interim reports may be used to determine if activities need to be realigned in order to achieve the stated goals and/or may prompt the need for NYSED to provide technical assistance and/or to monitor the grantee on-site.

    Typically, the quarterly reports and the mid-year reports are due 15 days after the end of the reporting period. The final/annual report is due 30 days after the end of the grant program year. The grantee must agree to provide the final/annual report in the format requested by NYSED within 30 days after the end of the project (unless otherwise indicated in the RFP). Grantee is not in compliance with grant conditions and requirements until such time as the NYSED Program Manager receives this report. The grantee should mark the reporting dates on their calendar. Payments to the grantee may be withheld if any reports are not submitted or are not submitted in a timely fashion. The eligibility of the grantee to receive future grants, including continuation grants, from NYSED may be impacted by such noncompliance.

    Significant Developments

    Grantees are required to inform NYSED of events that occur between the scheduled reporting dates that have a significant impact upon the grant or supported activity of the grant. This would include problems, delays or adverse conditions that materially impair the Grantee's ability to meet the objectives of the grant or favorable developments that would decrease the cost, move up the timelines, or produce more beneficial results than established in the original plan. Authorized NYSED employees as warranted by program needs may make site visits.

    Record Keeping

    Access to Records (34 CFR § 80.42)

    Records must be made accessible to United States Department of Education, the Comptroller of the United States, the Office of the State Comptroller, the New York State Education Department, or any of their duly authorized representatives.

    The grantee must maintain records and accounts in a manner that assure a full accounting of all funds received and expended in connection with the grant project. These records and accounts must be retained by the grantee and made available for programmatic or financial audit.

    Records Retention Period (34 CFR § 80.42)

    All financial and program records, supporting documents, statistical and other data pertinent to the grant must be maintained for a period of six years unless otherwise stated in the grant agreement. The retention period starts from the submission date of the final report. Records under audit involving unresolved audit findings or under appeals or litigation must be held until such time as the action is completed or the dispute resolved.

    This is a conservative approach, which would adequately cover the requirements of both federal and State funded programs. For more specific information, the State Archives publishes Records Retention and Disposition Schedules, which can be accessed at the following web site: http://www.archives.nysed.gov/a/nysaservices/ns_mgr_pub41.shtml

    Section Ten: Grant Payments

    This section discusses the methods and procedures for payment of grant funds to local agencies by NYSED. Payments should total only the minimum needed to carry out the approved purpose of a grant.

    Cash Management Requirements

    United States Department of Education General Administrative Regulations (EDGAR), parts 74 and 80, stipulate that local agencies:

    In New York State, these requirements also apply to grants made with State funds.

    Initial Payment

    Depending upon the grant program, an automatic first payment may be made after a grant’s budget is approved by NYSED.  The availability and amount of first payments vary due to statutory, regulatory or policy requirements.  The grant award notice issued to a local agency for each grant contains information regarding the availability and amount of the first payment.

    Requests for Funds

    During the grant period, local agencies may request additional funds by submitting Form FS-25 Request for Funds to Grants Finance.  Requests for funds may only include actual expenditures to date plus, in some cases, anticipated expenditures during the next month.  Payments totaling up to 90 percent of a grant’s budget may be requested through this process.

    There are a small number of grant programs for which payment may only be made on a reimbursement basis and therefore do not permit payments for anticipated expenditures.  For-profit organizations are also paid on a reimbursement basis, regardless of the grant program.  In addition, any local agency identified as having a cash management system that is not in compliance with federal regulations may be limited to payments on a strictly reimbursement basis. 

    For those grant programs that permit payment on anticipated expenditures, payments are allowed only when a local agency can demonstrate willingness and ability to maintain appropriate procedures that minimize the time between the receipt and the disbursement of grant funds.  To meet that requirement, local agencies are strongly urged to:

    Final Payment

    Once all expenditures associated with a grant have been made, a FS-10-F Final Expenditure Report must be submitted to Grants Finance to close the grant.  After review of the FS-10-F, any additional funds owed to the local agency will be reimbursed.  Details regarding final payments are available in Fiscal Guidelines for Federal and State Grants.

    Electronic Funds Transfer (EFT)

    The Office of the State Comptroller offers grantees the option of receiving payments by electronic deposit. This option transfers funds directly to the grantee’s bank account and has an option to be notified by e-mail of the payment. Participation is voluntary, with the option to withdraw at any time.  For more information about EFT and/or to apply for electronic payments go to http://www.osc.state.ny.us/epay/.

    Interest Earned

    Local agencies must return interest earned on cash advances from federally-funded grants.  State and local governments, including school districts, may keep up to $100 per year for administrative expenses.  Institutions of higher education, hospitals and other non-profit organizations may retain up to $250 per year for administrative expenses.  Interest exceeding the $100 or $250 allowable for administrative expenses must be returned to the federal government through New York State.  It cannot be retained to offset any direct or indirect program costs.

    Section Eleven: Program Income and Credits

    Introduction (34 CFR § 80.25)

    The definition of "program income" as given in the Education Department General Administrative Regulations (EDGAR) states that: "program income means gross income received by the grantee or subgrantee directly generated by a grant supported activity, or earned only as a result of the grant agreement during the grant period. During the grant period is the time between the effective date of the award and the ending date of the award reflected in the final financial report." This would include income from fees for services performed, from the use or rental of property acquired with grant funds, or from the sale of items produced under a grant agreement. The costs of generating program income may be deducted from gross income to determine program income.

    During the grant period is easily applied in direct grant programs of limited duration. In those situations, the end of the program is tied to the end of the award period. Any income earned after the end of the award period would not have to benefit the program because the Federal support of the program is finished. In a state-administered program, the program does not end at the end of the award period: rather, it continues with federal support from year to year. USDOE has not issued guidance explaining how program income earned under a state-administered program that continues to be supported with federal funds should be handled. Grantees should contact NYSED if program income is to be earned under a state- administered program.

    The definition of program income does not include interest on grant funds, rebates, credits, discounts or refunds. Generally, revenue from royalties, license fees for copyrighted materials and patents is not considered program income unless specifically identified in the grant agreement.

    Please note, NYSED retains ownership of any copyrights or patents for products produced unless otherwise specified in the grant agreement. Also, 34 CFR Section 80.34 states that the Federal awarding agency reserves a royalty-free, nonexclusive and irrevocable license to use or authorize others to use any copyrighted material produced with Federal grant funds for Federal purposes. Additionally, when you sell an item to another school district you should only charge enough to recover reproduction and distribution costs.

    Effect of Program Income

    Under rare circumstances, grantees may earn income with grant program funds, as detailed above. If a grantee earns any program income, such income must be used to reduce the amount of the grant award and defray current grant expenditures unless otherwise authorized by NYSED. When authorized, program income must be used for the purposes of the grant and shall be accounted for and used prior to requesting additional cash payments for the same grant activity.

    If a grantee wishes to earn program income and use it toward the grant without decreasing the amount of grant funds received from NYSED, the grantee must submit a request in writing to the NYSED prior to earning any program income. Such written request must describe the activities from which program income will be earned, the time period for which it is anticipated program income will be earned and a statement that program income will be added to the total grant and expended for grant activities before claiming expenditures for such activities from NYSED. NYSED will review the request and either approve or disapprove it.

    Applicable Credits

    Rebates, credits, discounts, refunds, audit recoveries, reimbursement for lost or stolen grant-purchased materials/equipment and interest earned on any of them are not considered program income. OMB Circular A-87 requires allowable costs to be net of all applicable credits. Therefore, expenditures charged to a grant must be net of all applicable credits.

    Accounting and Reporting

    There are several alternative methods available for the accounting of program income. Grant agreements may stipulate a method to be used for the reporting and use of program income. If no method is stipulated or present in agency regulations, program income must use the deduction method. According to EDGAR Section 80.25(g), only the federal agency has the authority to approve a method other than the deduction method.

    The deduction method deducts program income from the total allowable costs to determine the net allowable costs, thereby reducing NYSED and the grantee's contributions, as applicable with matching ratios.

    Deduction Method Example

    (This is the method to be used unless otherwise authorized by NYSED) A grant award has a program budget of $100,000. The grant provides 100% of the funding. NYSED awards $100,000 to the Grantee. If the Grantee earns $10,000 of program income during the grant period, the program budget remains $100,000 but the grant award is reduced by $10,000 to $90,000.

    Program Budget

    Deduction Method

    $100,000 Program Budget $100,000 Program Budget
    $100,000 Grant Award $  10,000 Program Income (-)
        $  90,000 Grant Award

    One of the following methods may be used to account for program income if specifically approved by NYSED.

    Addition Method Example

    A grant award has a program budget of $100,000. The grant provides 100% of the funding. NYSED awards $100,000 to the Grantee. If the Grantee earns $10,000 of program income during the grant period, the program budget is increased by the program income to total $110,000. The grant award remains $100,000.

    Program Budget

    Addition Method

    $100,000 Grant Award $100,000 Grant Award
    $100,000 Program Budget $  10,000 Program Income (+)
        $110,000 Program Budget

    Matching Method Example

    A grant award has a program budget of $100,000. A matching requirement exists for the grant award. The grant funds 75% of the program while the Grantee must fund the remaining 25% of the program budget. NYSED awards $75,000 to the Grantee. If the Grantee earns $10,000 of program income during the grant period, the amount of the Grantee's match is reduced by the program income to total $15,000. The grant award remains $100,000.

    Program Budget

    Addition Method

    $  75,000 Grant Award $  75,000 Grant Award
    $  25,000 Grantee Match 15,000 Grantee Match
    $100,000 Program Budget $  10,000 Program Income (+)
        $100,000 Program Budget

    Program Income Received After the Grant Period

    The grantee has no obligation to NYSED for the reporting or accounting of program income received after the date of the final expenditure report for a direct grant program unless provided for in the grant award. Grantees should contact NYSED if program income is earned under a state- administered program.

    NOTE: See the paragraph in Section 6 (Procurement/ Subcontracts) regarding copyright/ownership for information regarding materials, conceptions, and products arising from the grant project for further guidance and clarification of the prohibition of making a profit on such.

    See Section Eight, Property Management for guidance on handling proceeds from the sale of property.

    Section Twelve:  Expenditure Reporting

    Introduction

    Financial reporting is an integral part of the grant process. The reports are submitted to provide financial information about a grant project and to request grant payments. The two most common problems with financial reports are timeliness and accuracy. The Request for Interim Payment (FS-25) and the Final Expenditure Report (FS-10-F or FS-10-F Short Form) are the forms used to report expenditures.

    The Request for Interim Payment (FS-25) is used to request additional payments as well as to report the amount of funds expended to date on a project. To meet cash management requirements, the amount of funds requested must not exceed the amount expended plus any anticipated cash needed for the next reporting period.

    The Final Expenditure Report (FS-10-F or FS-10-F Short Form) is used to report all reimbursable expenditures made by the agency for an approved project. The reported expenditures are compared with approved budget costs for the purpose of determining final approved expenditures and the final payment to the local agency.

    FS-10-F Short Form

    The FS-10-F Short Form is used to report all reimbursable expenditures for a grant or grant contract.

    The FS-10-F Short Form is required for all grant projects from all local agencies that have an end date of August 31, 2005 or later provided the report is submitted by the due date.

    Expenditures for only one project may be reported in each FS-10-F Short Form.  Copies of supporting documentation such as claim forms, travel vouchers and invoices should not be sent with the FS-10-F Short Form.  Such documentation must be retained in the local agency project file.  If it is necessary for a State auditor to have this material or any additional detail to support the reported expenditures, it will be requested.

    FS-10-F

    The FS-10-F is the form used to report certain details for reimbursable expenditures for a grant or grant contract.

    The FS-10-F is required for all grant projects that have end dates earlier than August 31, 2005.

    For grants that have an end date of August 31, 2005 or later, some local agencies may be required to submit final expenditures using the longer version of the final expenditure report if one or more of the following conditions exist:

    Expenditures for only one project may be reported in each FS-10-F. Copies of supporting documentation such as claim forms, travel vouchers and invoices should not be sent with the FS-10-F. Such documentation must be retained in the local agency project file. If it is necessary for a State auditor to have this material or any additional detail to support the reported expenditures, it will be requested.

    An audit of each FS-10-F, following audit guidelines, is conducted by Grants Finance to determine the approved final cost of the project.

    During the audit of the FS-10-F, local agencies may be notified of possible audit disallowances and given the opportunity to provide additional information.  Upon completion of the audit, a copy of the audited FS-10-F will be mailed to the local agency and a final payment, if due, will be processed.  If the audit results in an overpayment, the amount overpaid will be transferred to another eligible project if possible and a Notice of Overpayment (form FS-80) will be sent to the local agency.  The notice will identify the project that was overpaid; the amount overpaid; and the project charged for overpayment, or will instruct the local agency to submit a refund check.  The above procedures have been designed to inform local agencies as fully as possible of the audit findings of the State Education Department and to give those agencies adequate time to review such findings.

    For further details refer to the Fiscal Guidelines for Federal and State Aided Grants

    General Rules

    Only the Chief Administrative Officer or their properly authorized designee may sign the Request for Interim Payment (FS-25) or Final Expenditure Report (FS-10-F or FS-10-F Short Form).

    Only expenses that are accrued or paid should be reported as expenditures. Encumbrances or obligations are not expenditures.

    No obligations/encumbrances can be established prior to the beginning date of the project or after the ending date of the project. The following table from 34 CFR § 76.707 shows when an obligation must be made for various kinds of property and services: 

    If the obligation is for… …then the obligation is made…
    1. acquisition of real or personal property
    1. on the date on which the grantee makes a binding, written commitment to acquire the property
    1. personal services by an employee of the grantee
    1. when the services are performed
    1. personal services by a contractor who is not an employee of the grantee
    1. on the date on which the grantee makes a binding, written commitment to obtain the services
    1. performance of work other than personal services
    1. on the date on which the grantee makes a binding, written commitment to obtain the work. (A written commitment with a component of your entity and/or affiliated organization is not an obligation)
    1. public utility services
    1. when the grantee receives the services
    1. travel
    1. when the travel is taken
    1. rental of real or personal property
    1. when the grantee uses the property

     

    Section Thirteen: Audits

    Introduction

    This section provides an overview of audit requirements and the grantee’s responsibilities for audit follow-up and resolution. Please refer to OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations (revised June 30, 1997) for an in-depth discussion.

    Please refer to the Audit Guidelines in NYSED’s Fiscal Guidelines at the following webpage: www.oms.nysed.gov/cafe/guidelines.html

    Annual Audits

    All school districts, BOCES and public charter schools must have all fiscal accounts (for all funding sources) audited annually at district expense by a certified public accountant. The cost for this audit must be borne by that school district, BOCES or public charter school.

    Single Audit Requirements for Federal Programs

    In addition to the annual audit of all funds expended, grant recipients that expend $500,000 or more annually of federal financial assistance (i.e., the total for all federal programs) must have a single audit or program-specific audit performed as stipulated in the federal Single Audit Act Amendments of 1996 and in OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. The definition of "federal financial assistance" as provided by OMB is assistance received or administered in the form of grants, cooperative agreements, loans, loan guarantees, property (including surplus property), interest subsidies, insurance food commodities, direct appropriations and other assistance. The cost for auditing a federal program may be charged to the grant when the audit is required under and conducted in accordance with OMB Circular A-133. Costs for auditing a federal program may not be charged to the grant when the audit is not required under and not conducted in accordance with OMB A-133.

    The purpose of the single audit is to determine whether:

  • the financial position is presented fairly through the grantee's financial statements; and

  • internal controls and other control systems are in place to provide "reasonable assurance" that the grantee is in compliance with relevant laws, regulations, and agreements.

  • Grantee Audit Responsibilities

  • Grantees are responsible to the New York State Education Department;

  • Providing access to records and financial statements (see also 34 CFR § 76.910);

  • Assisting monitoring and oversight activities;

  • Forwarding a copy of the single audit report to NYSED;

  • Submitting notification that an audit was conducted and no audit findings or questioned costs were determined;

  • Following up and taking appropriate and timely corrective action to resolve audit findings; and

  • Maintaining audit files.

  • Section Fourteen: Enforcement for Noncompliance

    Introduction

    If a grantee materially fails to comply with the terms and conditions of a grant award, NYSED, upon reasonable notice, may enforce a remedy for noncompliance. Remedies for noncompliance may be imposed by one or more of the following actions:

  • Temporarily withholding cash payments pending correction of the deficiency by the grantee;

  • Disallowing all or part of the cost of an activity not in compliance (including both the use of funds and matching credit);

  • Suspending or terminating wholly or in part, the grantee's current program;

  • Suspending Contract/Grant Expenditures/Activities;

  • Withholding further awards for the program;

  • Evaluating impact of risk on continuation funding (for multi-year grants/contracts);

  • Providing technical assistance;

  • Developing an improvement plan for grant project;

  • Conducting monitoring activities by communicating closely with Contractor/Grantee via telephone, e-mail, fax or letter;

  • Requiring detailed supporting documentation of expenditures submitted with FS-25s or FS-10 F Long Form;

  • Amending contract/grant to increase/specify additional requirements;

  • Requiring monthly activity/progress reports;

  • Requiring signature of the Chief Administrative Officer on progress reports;

  • Conducting on-site monitoring (including initial and/or follow-up visits);

  • Terminating contract/grant; and/or

  • Taking other remedies as legally available.

  • Effect of Remedy for Noncompliance

    The grantee must not incur any additional costs during a suspension or after termination. Such costs are unallowable unless expressly authorized by NYSED in the notice of suspension or termination.

    Costs which are necessary and not reasonably avoidable are allowable during suspension or after termination if:

  • Costs result from obligations properly incurred by the grantee before the effective date of suspension or termination, and

  • Costs would be allowable if award were not suspended or expired normally at the end of the grant period in which the termination takes effect.

  • Hearings, Appeals, or other Administrative Proceeding

    NYSED will provide the grantee an opportunity for a hearing, appeal, or other administrative proceeding as entitled under any statute or regulation applicable to the action involved when mandating a remedy for noncompliance.

    Termination for Convenience

    Termination for convenience requires both parties to mutually agree to cancel the grant in whole or in part. Procedures for termination for convenience require both parties to the agreement to decide and document in writing the termination conditions, the effective date, and in the case of partial termination, the portion to be terminated. If NYSED determines, in the case of partial termination, that the remaining portion of the award will not accomplish the purposes or objectives of the award, NYSED may terminate the award in its entirety.

    The grantee shall not incur any new obligations after the effective date of termination and shall cancel as many outstanding obligations as possible.

    Contingency

    All grants executed by NYSED are subject to the availability of funds appropriated by legislative act for the purposes stated. All amendments and/or extensions or subsequent grants entered into for the same or continued purposes are executed contingent upon the availability of appropriated funds. Notwithstanding any other provision in the grant or any other document, it is void upon appropriated funds becoming unavailable.

    In addition, all grants may be terminated by NYSED at any time upon notice to the grantee. Expenditures and/or activities for which the grantee may claim reimbursement shall not be accrued or claimed subsequent to receipt of such notice from NYSED. Grants may be extended or otherwise amended only by formal written amendment properly executed by both NYSED and the grantee. No other agreement, written or oral, purporting to alter or amend this grant shall be valid.

    Cancellation

    If a grant is canceled, terminated, or suspended by NYSED prior to its expiration date, the monetary value of services properly performed by the grantee pursuant to the grant must be determined by NYSED and paid to the grantee as soon as reasonably possible.

    Sanctions

    If the grantee, in NYSED's sole determination, fails or refuses for any reason to perform any of its obligations under a grant, NYSED may impose such sanctions, as it may deem appropriate. This includes, but is not limited to, the withholding of payments to the grantee until the grantee complies; the cancellation, termination, or suspension of the grant in whole or in part; and the seeking of other remedies as may be provided by the grant or by law. Any cancellation, termination, or suspension of the grant, if imposed, shall become effective at the close of business on the day of the grantee’s receipt of written notice from NYSED.

    Section Fifteen: Grant Close-Out

    Introduction

    Grantees must complete all work on the grant by the end date of the grant period.

    Procedure

    To close out a grant, the following requirements must be met:

  • All final reports must be submitted including programmatic and financial;

  • Any overpayment of funds must be refunded to NYSED;

  • Any additional reimbursement due the grantee shall be paid promptly; and

  • Grantee must account for property acquired with grant funds and properly dispose of equipment, if necessary, in accordance with disposition requirements (see Section 8-Property Management).

  • Subsequent Adjustments and Continuing Responsibilities

    The closeout of an award does not affect the following:

  • The right of NYSED to disallow costs and recover funds on the basis of a later audit or monitoring visit;

  • The obligation of the grantee to refund any monies due as a result of later corrections or other transactions;

  • The need for the grantee to meet audit requirements in 34 CFR § 74.26;

  • The requirement for retaining records for grants and grant contracts is: Supporting documentation must be kept for six years after the last payment was made unless otherwise specified by program requirements.  Additionally, for records retention purposes, audit or litigation will "freeze the clock" until the issue is resolved.

  • Property management standards must continue as described in Section Eight: Property Management.

  • Appendix A

    Glossary

    Accrued expense - An expense incurred, but not yet paid.

    Administrative requirements - those matters common to grants in general, such as financial management, kinds and frequency of reports, and retention of records (34 CFR 80). See "uniform administrative requirements for grants" in this glossary.

    Allocational grant program - one that entitles certain applicants to receive grants if they meet the requirements of the program. Applicants do not compete with each other for funds, and each grant is either for a set amount or for an amount determined under a formula specified in the authorizing statute. Allocational grant programs are also know as formula grant programs.

    Applicant - the party requesting a grant or subgrant (34 CFR 77).

    Application - a written request for a grant or subgrant (34 CFR 77). The application usually contains a description of the needs, objectives, methodology/strategies, evaluation, personnel, and budgeted costs proposed by the applicant to carry out a particular project.

    Appropriation - the amount of funds approved to be expended under an authorization bill.

    Authority reference - an accepted source of information; usually referencing a particular statute, regulation, rule, guideline, policy, etc.

    Authorization bill - legislation setting up or continuing programs; sets general aims and purposes and may set a ceiling for funding.

    Award - grants, contracts, and other agreements; may also mean the amount of funds provided under a grant or contract (34 CFR 77).

    Budget - the grant recipient’s financial plan for carrying out the project or program (34 CFR 77).

    Code of Federal Regulations (CFR) - federal regulations (i.e., governing directions or laws) which have been codified (i.e., classified or arranged in a systematic collection).

    Commingling - to deposit or record funds in a general account without the ability to identify each specific source of funds for any expenditure (34 CFR 303.123). The commingling of funds is prohibited.

    Community-based organization (CBO) - a private nonprofit organization which is representative of a community or significant segments of a community and which provides educational or related services to individuals in the community (USC Title 20, section 2891).

    Competitive grant - a grant that is awarded on the basis of competition among eligible grantees/subgrantees. Grantees/subgrantees are selected based on technical evaluation of all grant applications submitted to/received by the grantor agency by an established deadline date. Awards are made to the grantees/subgrantees whose applications are most advantageous to the program, considering cost, program objectives and strategies, and other factors.

    Contract - a mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. It includes all types of commitments that obligate the government (or other contractor) to an expenditure of funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to): awards and notices of awards; job orders or task orders issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications (OMB Circular A-87,

    The Office of the Comptroller (OSC) requires contracting for discretionary grants unless otherwise exempted.

    Cost principles - establishes principles for determining the allowability/unallowability of certain costs for grants, and the requirement for prior approval by the grantor agency of certain costs. OMB circular A-87, Cost Principles for State and Local Governments, establishes costs principles for grants with school districts and regional education service centers. OMB circularA-21Cost Principles for Educational Institutions establishes cost principles for higher education institutions OMB circular A-122 Cost Principles for Non-Profit Organizations establishes cost principles for non-profit organizations which include most community based organizations

    Cost sharing or matching - the value of the third party in-kind contributions and the portion of the costs of a grant project not borne by the grantor organization (34 CFR 80).

    Disbursement - Payment by cash or check, which discharges a liability, debt or expense.

    Discretionary grant program - one that permits the grantor agency to use discretionary judgment in selecting applications for funding. A discretionary grant may or may not be competitive, depending on the authorizing language of the grant program and/or the discretion of grantor agency management/priorities (extracted from 34 CFR 75).

    Education Department General Administrative Regulations (EDGAR) - 34 CFR Parts 74, 75, 76, 77, 79, 80, 81, 82, 85, and 86.

    Encumbrances – commitments related to unperformed (executory) contracts for goods or services. Encumbrances outstanding at year-end do not constitute expenditures or liabilities. (Extracted from GASB Codification 1700.128)

    Entitlement - a set amount or an amount determined under a formula grant.

    Expenditure - Consumption of an asset or payment for an expense or the promise of a future payment. Incurrence of a liability.

    Federal funds - monies appropriated by the United States Congress.

    Federal Register - the federal government’s method of providing a uniform system for publishing regulations and legal notices issued by the federal agencies. These notices include presidential proclamations and executive orders, federal agency documents having general applicability and legal effect, documents required to be published by an act of Congress, and other federal agency documents of public interest. While most grant information is not required to be published in the Federal Register, announcements of funding availability and proposed and final grants administration

    regulations are included. The Federal Register is available on a subscription basis from the U. S. Government Printing Office, Washington, D. C. 20402 (Federal Grants Management Handbook, November 1994, Page 48, Tab 200).

    Formula grant program - one that entitles certain applicants to receive grants if they meet the requirements of the program. Applicants do not compete with each other for funds, and each grant is either for a set amount or for an amount determined under a formula specified in the authorizing statute (34 CFR 75). Formula grant programs are also known as allocational programs.

    General Education Provisions Act (GEPA) - a compilation of general provisions concerning education. These provisions apply to any program administered by the Secretary of Education.

    Grant -an award of financial assistance in the form of money, or property in lieu of money, by a grantor organization to an eligible grantee (34 CFR 80).

    Grantee - the legal entity to which a grant is awarded and which is accountable for the use of funds. The grantee is the entire legal entity even if only a particular component of the entity is designated in the grant award document (34 CFR 77).

    Grantor agency- the entity that awarded a grant or subgrant to an eligible grantee.

    Grant Award Notice - a written document that notifies the grantee and others that a grant is awarded, specifies the terms and conditions of the grant, and provides a legal basis for the obligation of grant funds. The notice usually includes the amount and effective date of the grant (period of obligation); accounting classification numbers; certifying official’s signature; and terms and conditions of the grant. The terms and conditions incorporate by reference the legislative authority and regulations; the grant application and any amendments; applicable policy statements, manuals, and handbooks; and any special conditions (Federal Grants Management Handbook, September 1988, Section 240, Tab 200).

    Grant period - for projects funded by the New York State Education Department, the period between the beginning and ending dates of a grant during which the grantee may obligate funds. (This is actually the "budget period" for multi-year grants funded directly by the federal government.)

    Grant program - those activities and operations of the grantee which are necessary to carry out the purposes of the grant, including any portion of the program financed by the grantee (OMB Circular A-87).

    In-kind contribution - the value of non-federal, non-cash contributions provided by the grantee organization in support of a grant program (i.e., without charge to the grant program). May be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefiting and specifically identifiable to the grant project or program (extracted from 34 CFR 74 and 80).

    Internal Controls – a process designed by the grantee organization to provide reasonable assurance the following objectives will be achieved:

  • effectiveness and efficiency of operations;

  • reliability of financial reporting;

  • consistency from one grant program to another; and

  • compliance with applicable laws and regulations.

  • Local Educational Agency (LEA) - (a) A public board of education or other public authority legally constituted within a State for either administrative control of or direction of, or to perform service functions for, public elementary or secondary schools in:

    1. A city, county, township, school district, or other political subdivision of a State; or

    2. Such combination of school districts or counties a State recognizes as an administrative agency for its public elementary or secondary schools; or

    3. Any other public institution or agency that has administrative control and direction of a public elementary or secondary school (34 CFR 80).

    In New York, the term includes public school districts, BOCES, and public charter schools.

    Local government - a county, municipality, city, town, township, local public authority,

    Maintenance of effort (MOE) - a provision common to many federal education authorizing statutes. This provision states, in general, that a grantee (usually an LEA) 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 of such combined fiscal effort or aggregate expenditures for the second preceding fiscal 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 of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the LEA) (example of MOE requirement: P. L. 103-382, Title XIV, Section 14501).

    Grantees should carefully review the applicable program statute and regulations to determine if the maintenance of effort requirement applies and to ensure they are in full compliance with such requirements.

    New York State Register – The publication that provides the public notice of State and Federal funds which will be available as grants through an application process.

    Nonprofit - as applied to an agency, organization, or institution, one that it is owned and operated by one or more corporations or associations whose net earnings do not benefit, and cannot lawfully benefit, any private shareholder or entity (34 CFR 77).

    Nonpublic - as applied to an agency, organization, or institution, one that is nonprofit and is not under federal or public supervision or control (34 CFR 77).

    Obligations - the amounts of orders placed, contracts and subgrants awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee during the same or a future period (34 CFR 80).

    OMB Circulars (Grants Management) – The federal Office of Management and Budget (OMB) establishes government-wide grants management policies and guidelines through circulars and common rules. These policies are adopted by each federal grant making agency and inserted into their federal regulations. The following are circulars that are relevant to the grants administered by NYSED and the organizations they apply to:

  • Cost Principles

  • A-21 – Educational Institutions

  • A-87 – State and Local Governments

  • A-122 – Non-Profit Organizations

  • Administrative Requirements

  • A-102 – State and Local Governments

  • A-110 – Institutions of Higher Education, Hospitals, and Other Medical Organizations

  • Audit Requirements

  • A-133 – States, Local Governments, and Non-Profit Organizations

  • Parent - a legal guardian or other person standing in loco parentis (USC, Title 20, section 2891).

    Preaward costs - those costs incurred between the date the funds are available for obligation (usually July 1) and the date the application is received by the grantor agency (the effective date) directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency (OMB Circular A-87, Cost Principles for State and Local Governments, Attachment B, Selected Items of Cost, number 32).

    Prior approval - documentation evidencing consent prior to incurring a specific cost (34 CFR 80).

    Private - as applied to an agency, organization, or institution, one that is not under federal or public supervision or control (34 CFR 77).

    Private school participation - a provision common to many federal education authorizing statutes. This provision states, in general, that a grantee must provide for the equitable participation of and equal expenditure for students in private schools where such private school officials desire that their children participate. In most cases, this provision requires that the LEA annually contact the private school officials to determine if they desire their children to receive benefits. The provision also usually requires that 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 students.

    Often the statutory language limits participation to students and teachers in "nonprofit" private schools only. An example of private nonprofit school participation is ESEA Title VI, Innovative Education Program Strategies, section 6402.

    In addition to the provisions in the authorizing statute, the requirements in 34 CFR 76.650 - .662 pertaining to participation of students enrolled in private schools also apply to most federal education programs where any type of private school participation is required. These regulations contain additional requirements pertaining to consultation during all phases of the program, meeting the needs of private school students, providing comparable benefits, level of expenditures, information that must be provided in a subgrant, personnel issues, and supplies and equipment.

    In all cases, the equipment, supplies and materials are "on loan" to the private school for use in a specific federal program. The public school district maintains administrative management and control of all funds and personnel. Funds are never transferred to the private school, only services, materials, and equipment are provided to the students and teachers at the school.

    Grantees should carefully review the applicable program statute and regulations to determine if private school participation requirements apply and to ensure they are in full compliance with such requirements.

    Program requirements - those matters that can be treated only on a program-by-program or grant-by-grant basis, such as the kinds of activities that can be supported by grants under a particular program, or program requirements specified in a particular authorizing program statute or regulation, such as the inclusion of certain program components (extracted from 34 CFR 75).

    Project - the activity described in an application (34 CFR 77).

    Proposal - a written document that typically answers who, what, where, when, why, and how, in addition to how long and how well, a prospective contractor or grantee proposes to carry out a project. A proposal is usually submitted by an eligible agency in response to a Request for Proposal (RFP).

    Request for Application (RFA) - a formal document prepared by the grantor agency that requests applications from eligible applicants to describe the manner in which the applicant proposes to carry out a project. The RFA usually contains background information, application information, conditions and requirements for submitting the application, and a description of the selection criteria. The Grantee’s Manual uses the terms RFP and RFA synonymously.

    Request for Proposal (RFP) - a formal document prepared by the grantor agency that requests proposals from eligible agencies to describe the manner in which the agency proposes to carry out a project. The RFP usually contains background information, proposal content, conditions and requirements for submitting the proposal, and a description of the selection criteria. The Grantee’s Manual uses the terms RFP and RFA synonymously

    Reauthorization - the continuation or subsequent authorization of a federal grant program by Congress. The statute reauthorizing a program may include one or more, often significant, changes to the original or previously authorized statute.

    School district, special district, intrastate district, council of governments (whether or not incorporated as a nonprofit corporation under State law), any other regional or interstate government entity, or any agency or instrumentality of a local government (34 CFR 80).

    State Educational Agency (SEA) - the State board of education or other agency or officer primarily responsible for the supervision of public elementary and secondary schools in a State (34 CFR 77). The New York State Education Department (NYSED) is the state educational agency in New York.

    Subgrant - an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee (34 CFR 80).

    Subgrantee - the legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of funds provided (34 CFR 80).

    Supplant - to replace

    Supplement - to add to; to enhance; to enrich, to expand

    Supplement, not supplant - a provision common to many federal education authorizing statutes. This provision states, in general, that a state agency or local educational agency may use and allocate funds received under a particular grant only to supplement and, to the extent practical, increase the level of funds that would, in the absence of federal funds made available under these grant funds, be made available from non-federal sources, and in no case may such funds be used to supplant funds from non-federal sources. This means:

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

  • LEAs may not use these federal grant funds to pay for activities required by state law, State Board of Education, or local district policy.

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

  • Grantees should carefully review the applicable program statute and regulations to determine if the supplement, not supplant requirement applies and to ensure they are in full compliance with such requirements.

    Terms of a grant or subgrant - all the requirements of a grant or subgrant, whether in statute, regulations, or the award document (34 CFR 80).

    Third party in-kind contributions - property or services which benefit a federally assisted program or project and which are contributed by non-federal third parties without charge to the grantee (34 CFR 80). Non-cash contributions which may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefiting and specifically identifiable to the grant project or program (34 CFR 74).

    Time and effort - a system for recording the amount of time an individual spends on federally funded activities and for ensuring federal grants bear their fair share for payroll charges. OMB Circular A-87 outlines the cost principles for federal grant programs awarded to school districts and education service centers. Attachment B, section 11. h. outlines documentation that is required for support of charges to federal grants for salaries and wages. Individuals who are 100 percent funded from a single funding source or who are working on a single cost objective must certify once every six months that they worked solely on that program for the period covered by the certification. Individuals who are not 100 percent funded from a single funding source or who are working on multiple cost objectives must maintain personnel activity reports, typically referred to as "time and effort". Substitute systems which meet certain standards identified in OMB Circular A-87, may be used in place of time and effort reports in certain situations.

    Uniform administrative requirements for grants - often referred to as the "common rule", provides for government-wide consistency and uniformity in the management and administration of grants and is codified by each agency in its respective title of the Code of Federal Regulations. OMB Circular A-102, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, codified as 34 CFR Part 80, includes administrative rules pertaining to the award of grants and subgrants, financial administration of grants, changes to grants and subgrants, reports, records retention, and grant closeout.

    Appendix B

    New York State Education Department


    Assurances for Federal Discretionary Program Funds
     

    The following assurances are a component of your application.  By signing the certification on the application cover page you are ensuring accountability and compliance with State and federal laws, regulations, and grants management requirements. 

    Federal Assurances and Certifications, General:

    Federal Assurances and Certifications, NCLB (if appropriate):

    The following are required as a condition for receiving any federal funds under the Elementary and Secondary Education Act, as amended by the No Child Left Behind Act of 2001.

    ASSURANCES - NON-CONSTRUCTION PROGRAMS
     

    Note:  Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the Education Department Program Contact listed in the Application. Further, certain Federal awarding agencies may require applicants to certify to additional assurances. If such is the case, you will be notified.

    As the duly authorized representative of the applicant, and by signing the Application Cover Page, I certify that the applicant:

    1. Has the legal authority to apply for Federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-Federal share of project cost) to ensure proper planning, management, and completion of the project described in this application.

    2. Will give the awarding agency, the Comptroller General of the United States, and if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives.

    3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.

    4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency.

    5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C §§ 4728-4763) relating to prescribed standards for merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F).

    6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) ''§§ 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§'' 290 dd-3 and 290 ee 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s) which may apply to the application.

    7. Will comply, or has already complied, with the requirements of Titles II and III of the uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases.

    8. Will comply, as applicable, with the provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328), which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

    9. Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. §§ 276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §§874) and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327-333), regarding labor standards for federally assisted construction subagreements.

    10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is  $10,000 or more.

    11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of  Federal actions to State (Clear Air) Implementation Plans  under Section 176(c) of the Clear Air Act of 1955, as  amended (42 U.S.C. §§7401 et seq.); (g) protection of  underground sources of drinking water under the Safe  Drinking Water Act of 1974, as amended, (P.L. 93-523); and  (h) protection of endangered species under the Endangered  Species Act of 1973, as amended, (P.L. 93-205).

    12. Will comply with the Wild and Scenic Rivers Act of 1968  (16 U.S.C. §§1721 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

    13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.).

    14. Will comply with P.L. 93-348 regarding the protection of human subjects involved in research, development, and related activities supported by this award of assistance.

    15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals held for research, teaching, or other activities supported by this award of assistance.

    16. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.), which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

    17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations.

    18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations and policies governing this program.

    Standard Form 424B (Rev. 7-97), Prescribed by OMB Circular A-102, Authorized for Local Reproduction, as amended by New York State Education Department

    CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND OTHER
    RESPONSIBILITY MATTERS

    Applicants should refer to the regulations cited below to determine the certification to which they are required to attest.  Applicants should also review the instructions for certification included in the regulations before completing this form.  Signature of the Application Cover Page provides for compliance with certification requirements under 34 CFR Part 82, "New Restrictions on Lobbying," and 34 CFR Part 85, "Government-wide Debarment and Suspension (Nonprocurement)."  The certifications shall be treated as a material representation of fact upon which reliance will be placed when the Department of Education determines to award the covered transaction, grant, or cooperative agreement.

    1.  LOBBYING

    As required by Section 1352, Title 31 of the U.S. Code, and implemented at 34 CFR Part 82, for persons entering into a grant or cooperative agreement over $100,000, as defined at 34 CFR Part 82, Sections 82.105 and 82.110, the applicant certifies that:

    1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 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:

    2. If any funds other than Federal appropriated funds have been paid or will be paid 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 this Federal grant or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and

    3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all subrecipients shall certify and disclose accordingly.

    2.  DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS

    As required by Executive Order 12549, Debarment and Suspension, and implemented at 34 CFR Part 85, for prospective participants in primary covered transactions, as defined at 34 CFR Part 85, Sections 85.105 and 85.110--

    1. The applicant certifies that it and its principals:

      1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;

      2. Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

      3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (2)(b) of this certification; and

      4. Have not within a three-year period preceding this application had one or more public transaction (Federal, State, or local) terminated for cause or default; and

    2. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.

    ED 80-0013, as amended by the New York State Education Department

    Certification Regarding Debarment, Suspension, Ineligibility and
    Voluntary Exclusion — Lower Tier Covered Transactions

    This certification is required by the Department of Education regulations implementing Executive Order 12549, Debarment and Suspension, 34 CFR Part 85, for all lower tier transactions meeting the threshold and tier requirements stated at Section 85.110.

    Instructions for Certification

    1. By signing the Application Cover Page, the prospective lower tier participant is providing the certification set out below.

    2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.

    3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

    4. The terms “covered transaction,” “debarred,” “suspended,” “ineligible,” “lower tier covered transaction,” “participant,” “ person,” “primary covered transaction,” “ principal,” “proposal,” and “voluntarily excluded,” as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations.

    5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

    6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion-Lower Tier Covered Transactions,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.

    7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List.

    8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

    9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.

    ---------------------------------------------------------------------------------------------------------------

    Certification

    1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.

    2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

    ED 80-0014, as amended by the New York State Education Department

    New York State Department of Education
    General Education Provisions Act Assurances

    These assurances are required by the General Education Provisions Act for certain programs funded by the U.S. Department of Education.  These assurances are not applicable to certain programs, such as the No Child Left Behind Act.  If you have any questions, please contact NYSED.

    As the authorized representative of the applicant, by signing the Application Cover Page, I certify that:

    1. the local educational agency will administer each program covered by the application in accordance with all applicable statutes, regulations, program plans, and applications;

    2. the control of funds provided to the local educational agency under each program, and title to property acquired with those funds, will be in a public agency and that a public agency will administer those funds and property;

    3. the local educational agency will use fiscal control and fund accounting procedures that will ensure proper disbursement of, and accounting for, Federal funds paid to that agency under each program;

    4. the local educational agency will make reports to the State agency or board and to the Secretary as may reasonably be necessary to enable the State agency or board and the Secretary to perform their duties and that the local educational agency will maintain such records, including the records required under section 1232f of this title, and provide access to those records, as the State agency or board or the Secretary deem necessary to perform their duties;

    5. the local educational agency will provide reasonable opportunities for the participation by teachers, parents, and other interested agencies, organizations, and individuals in the planning for and operation of each program;

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

    7. in the case of any project involving construction -

    1. the project is not inconsistent with overall State plans for the construction of school facilities, and

    2. in developing plans for construction, due consideration will be given to excellence of architecture and design and to compliance with standards prescribed by the Secretary under section 794 of title 29 in order to ensure that facilities constructed with the use of Federal funds are accessible to and usable by individuals with disabilities;

    1. the local educational agency 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; and

    2. none of the funds expended under any applicable program will be used to acquire equipment (including computer software) in any instance in which such acquisition results in a direct financial benefit to any organization representing the interests of the purchasing entity or its employees or any affiliate of such an organization.

    New York State Department of Education
    No Child Left Behind Act Assurances

    These assurances are required for programs funded under the No Child Left Behind Act.

    As the authorized representative of the applicant, by signing the Application Cover Page, I certify that:

    1. each such program will be administered in accordance with all applicable statutes, regulations, program plans, and applications;

    2. the control of funds provided under each such program and title to property acquired with program funds will be in a public agency or in a nonprofit private agency, institution, organization, or Indian tribe, if the law authorizing the program provides for assistance to those entities; and

    the public agency, nonprofit private agency, institution, or organization, or Indian tribe will
    administer the funds and property to the extent required by the authorizing statutes;

    1. the applicant will adopt and use proper methods of administering each such program, including -

    1. the enforcement of any obligations imposed by law on agencies, institutions, organizations, and other recipients responsible for carrying out each program; and

    2. the correction of deficiencies in program operations that are identified through audits, monitoring, or evaluation;

    1. the applicant will cooperate in carrying out any evaluation of each such program conducted by or for the State educational agency, the Secretary, or other Federal officials;

    2. the applicant will use such fiscal control and fund accounting procedures as will ensure proper disbursement of, and accounting for, Federal funds paid to the applicant under each such program;

    3. the applicant will -

    1. submit such reports to the State educational agency (which shall make the reports available to the Governor) and the Secretary as the State educational agency and Secretary may require to enable the State educational agency and the Secretary to perform their duties under each such program; and

    2. maintain such records, provide such information, and afford such access to the records as the State educational agency (after consultation with the Governor) or the Secretary may reasonably require to carry out the State educational agency’s or the Secretary’s duties;

    1. before the application was submitted, the applicant afforded a reasonable opportunity for public comment on the application and considered such comment;

    2. the applicant has consulted with teachers, school administrators, parents, nonpublic school representatives and others in the development of the application to the extent required for the applicant under the program pursuant to the applicable provisions of the No Child Left Behind Act;

    3. in the case of a local educational agency, as a condition of receiving funds under the No Child Left Behind Act, the applicant is complying with the requirements of Education Law § 3214(3)(d) and (f) and the Gun-Free Schools Act (20 U.S.C. § 7151);

    4. in the case of a local educational agency, as a condition of receiving funds under the No Child Left Behind Act,  the applicant is complying with the requirements of 20 U.S.C. § 7908 on military recruiter access;

    5. in the case of a local educational agency, as a condition of receiving funds under the No Child Left Behind Act,  the applicant is complying with the requirements of 20 U.S.C. § 7904 on constitutionally protected prayer in public elementary and secondary schools;

    6. in the case of a local educational agency, as a condition of receiving funds under the No Child Left Behind Act,  the applicant is complying with the requirements of Education Law § 2802(7), and any state regulations implementing such statute and 20 U.S.C. § 7912 on unsafe school choice; and

    7. in the case of a local educational agency,  the applicant is complying with all fiscal requirements that apply to the program, including but not limited to any applicable supplement not supplant or local maintenance of effort requirements.

    SCHOOL PRAYER CERTIFICATION

    As a condition of receiving federal funds under the Elementary and Secondary Education Act, as amended by the No Child Left Behind Act of 2001 (NCLB), the local educational agency hereby certifies that no policy of the local educational agency prevents, or otherwise denies participation in, constitutionally protected prayer in public elementary schools and secondary schools, as detailed in the current guidance issued pursuant to NCLB Section 9524(a).

    Appendix D

    DOCUMENTATION REQUIRED FOR CHARGES TO PAYROLL
    FOR FEDERALLY FUNDED GRANTS

    Documentation Required Under OMB Circular A-87 for LEAs, ESCs, and Public Charter Schools

    Documentation Required Under OMB Circular A-122

    Documentation Required Under OMB Circular A-21

    All charges to payroll for grant-funded personnel must be based on one of the following: certification; time and effort records; or substitute system.

    This section also covers items related to using budget estimates, cost sharing, and job descriptions.

    (1) CERTIFICATION: For employees:

    (a) who are paid 100 percent from program; or
    (b) who work under a single cost objective.

    These employees are not required to maintain time and effort records. However, each employee must certify in writing, at least semi-annually, that he/she worked solely on the program(s) 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. This is a requirement under the revised OMB Circular A-87 Cost Principles effective July 1, 1995.

    "Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. A Title I, Part A school-wide program funded from multiple funding sources is considered a "single cost objective."

    The semi-annual certification requirement has been waived for programs covered under Ed-Flex. Therefore, for programs covered under Ed-Flex, omit the section on certification and insert the following:

    (2) TIME AND EFFORT: For employees:

    (a) who work under multiple grant programs; or

    who work under multiple cost objectives.

    (b) These employees are required to maintain time and effort records or to account for their time under a substitute system. (See number 3 below.) Employees 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 actual time spent on each activity and must be signed by the employee. Charges to payroll must be adjusted at least quarterly to coincide with preparation and submittal of the quarterly expenditure report.

    Examples:
    a. Employees who are paid partially from consolidated administrative funds and partially from other funds must maintain time and effort or account for their time under a substitute system.
    b. Employees who are paid partially from administrative funds and partially from program funds must maintain time and effort or account for their time under a substitute system.

    (3) SUBSTITUTE SYSTEMS In Lieu of Time and Effort Reports:

    Substitute systems for allocating salaries and wages may be used in place of time and effort reports. Substitute systems may include, but are not limited to, random moment sampling, case counts, or other quantifiable measures of employee effort. Substitute systems which use sampling methods must meet acceptable statistical sampling standards. Refer to OMB Circular A-87 for detailed requirements.

    Documentation of rationale and calculations for allocating salaries and wages must be maintained for audit purposes. It is recommended that a copy of a Certified Public Accountant’s (CPA) approval of a substitute system be kept on file for documentation.

    If the quarterly comparison between budgeted and actual costs shows a difference of less than 10 percent, adjustments to charges to the grant may be made annually.

    NOTE: Monthly time and effort reports are still required when using budget estimates.

    Refer to OMB Circular A-87 for more detailed information pertaining to charges to payroll under the section entitled "Compensation for personnel services."

    All charges to payroll for grant-funded staff must be based on distribution of activity reports. This includes professionals and nonprofessionals who compensation is charged, in whole or in part, directly to awards. Therefore, all personnel, whether 100 % funded or partially funded, must maintain time and effort records.

    Employees 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 actual time spent on each activity and must be signed by the employee. Charges to payroll must be adjusted based on time and effort records.

     Charges for salaries and wages of nonprofessional employees must also be supported by records indicating the total number of hours worked each day maintained in conformance with the Department of Labor regulations implementing the Fair Labor Standards Act (FLSA). For this purpose, the term "nonprofessional employee" shall have the same meaning as "nonexempt employee" under FLSA.

    Refer to OMB Circular A-122 for more detailed information pertaining to charges to payroll under the section entitled "Compensation for personnel services."

    All charges must be based on payrolls documented in accordance with the generally accepted practices of colleges and universities. The method must provide for after-the-fact conformation or determination by responsible persons with suitable means of verifying that the work was performed.

    The payroll distribution system may reflect categories of activities expressed as a percentage distribution of total activities. Charges may be made initially based on estimates made before services are performed. Significant changes in the work activity must be identified and entered into the payroll distribution system.

    Examples of Acceptable Methods:

    (1) Plan-Confirmation: The distribution of salaries and wages is based on budgeted, planned, or assigned work activity, updated to reflect any significant changes in work distribution. Certain standards as outlined in OMB Circular A-21, including an annual statement signed by the employee certifying that the work was performed, must be met.

    (2)  After-the-Fact Activity Records: Distribution of salaries and wages is supported by activity reports which reflect an after-the-fact description of the activity expended by employees. Charges may be made initially on the basis of estimates, provided that such charges are promptly adjusted if significant differences are indicated by activity records.

    (3) After-the-Fact Activity Records: Distribution of salaries and wages is supported by activity reports which reflect an after-the-fact description of the activity expended by employees. Charges may be made initially on the basis of estimates, provided that such charges are promptly adjusted if significant differences are indicated by activity records

    (4) Plan-Confirmation: The distribution of salaries and wages is based on budgeted, planned, or assigned work activity, updated to reflect any significant changes in work distribution. Certain standards as outlined in OMB Circular A-21, including an annual statement signed by the employee certifying that the work was performed, must be met.

    (5) Multiple Confirmation Records: The distribution of salaries and wages is supported by records which certify separately for direct and F&A (i.e., facilities and administration; synonymous with "indirect") cost activities

    Activity reports must be prepared for each academic term, but no less frequently than every 6 months and must be signed by the employee or a person having direct knowledge of the work performed. Charges may be made initially on the basis of estimates, provided that such charges are promptly adjusted if significant differences.

    Refer to OMB Circular A-21 for more detailed information pertaining to charges to payroll under the section entitled "Compensation for personnel services."


    Payroll Documentation: The documentation requirements are in addition to the requirements for payroll documentation specified in the applicable OMB Circulars for cost principles.

    Meeting Cost Sharing or Matching Requirements: Salaries and wages of employees used in meeting cost sharing or matching requirements must be supported with time and effort records in the same manner.

    Job Descriptions: A current job description for each employee which delineates the program(s) or cost objectives under which the employee works should be available for documentation to support charges to federal programs. For teachers and instructional aides, daily class schedules should provide adequate documentation. Job descriptions should be updated as new assignments are made.

    Appendix F


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