Application Review Procedures for Federal NCLB Allocational Programs

Beginning in 2007-08, the Department implemented new application review procedures for NCLB allocation programs for the purpose of expediting cash flow. The following questions and answers provide information about the process.

What are the new application review procedures?
For 2007-2008, applications from LEAs with Contracts for Excellence, schools in need of improvement or schools requiring academic progress that meet certain application approval requirements may be considered for substantially-approved status. All other LEAs that meet the same application approval requirements will have their applications fully approved.
However, if an LEA is not current in its submission of OMB Circular A-133 Single Audit reports, fiscal or program reports, or has other significant deficiencies identified through an audit or monitoring process, the Department may determine that the LEA should not receive payments until the full review and approval process has been completed.
What are the application approval requirements?
An application must include:
  • Properly signed application and budgets;
  • Required general and program specific assurances; and
  • Budget narratives.
What is "substantially-approved" status?
The determination that an application is substantially approved is the initial step in the approval of the accompanying budgets. LEAs may begin to obligate funds as of the date an application is received in the Department in substantially approvable form.
How does the substantially approved process work?
When the Department receives an NCLB Consolidated Application in substantially approvable form from an LEA with a Contract for Excellence, schools in need of improvement or schools requiring academic progress, the application may be designated as "substantially approved". Consequently, the Department's Grants Finance Office will send the LEA a Preliminary Award Notice for each budget in the application, and the LEA will receive initial payments of 20 percent of its allocations (not including carryover) or 20 percent of the budgeted amounts, whichever is less. Department staff will continue with a full review of the substantially-approved application. LEAs may be contacted for additional information as part of the review and must respond promptly and completely in order to receive additional payments while in substantially-approved status. An LEA removed from substantially-approved status due to lack of timely response will not be eligible to receive any additional funds until its application is fully approved. Once an LEA's application is approved in full, the Grants Finance Office will mail the LEA a final Grant Award Notice.
To what funds does this apply?
NCLB:
  • Title I, Parts A and D (0021);
  • Title II, Part A (0147);
  • Title II, Part D (0292);
  • Title III LEP (0293);
  • Title III Immigrant Education (0149);
  • Title IV, Part A (0180);
  • Title V, Part A (0002);
  • Title VI, Part B Rural, Low-Income Schools (0006).
IDEA:
  • Section 611 Flow Through (0032);
  • Section 619 Flow Through (0033);
  • CPSE (0232).
What amount will the first payment be?
The first payment for each budget will be 20 percent of the allocation (not including carryover) or 20 percent of the budget, whichever is less.
Can an LEA request more money before its application is fully approved?
Requests for Interim Payments (FS-25s) will be accepted for substantially-approved budgets, and payments will be made. However, while in substantially-approved status, the limit on payments is 50 percent of the allocation (not including carryover) or 50 percent of the F-S10 budget amount, whichever is less. An LEA determined by the Department to be non-responsive, i.e., not providing prompt and complete responses to information requests from Department staff reviewing the LEA’s application, will not be eligible to receive any additional funds prior to the full approval of its application.
How will an LEA know when its application has full approval?
When an LEA's application is fully approved, the Grants Finance Office will mail the LEA a final Grant Award Notice. Receipt of the Grant Award Notice signifies full approval of the LEA's application.
What if an LEA begins spending money on an activity and is later informed that the activity is not allowable?
LEAs are always responsible for conducting activities in accordance with applicable statutes, regulations, terms, conditions and assurances, regardless of application status. Unallowable activities and unallowable costs cannot be supported with federal grant funds.
Where can I get additional information?
Please submit questions to Grants Finance at grantsweb@mail.nysed.gov or to your Department program contact:

Issued 12/24/07