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OREGON

The Perkins Act –

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s250enr.txt.pdf

Your OMB Circulars

http://www.whitehouse.gov/OMB/circulars

Education Department General Administrative Rules - EDGAR

http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html

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OMB – Office of Management and BudgetEDGAR – Education Department General Administrative Regulations

• Perkins – The Whole Act (On-line or you can order a paper copy from ACTE – Go to http://www.acteonline.org ; select Shop ACTE, go to ACTE Store, scroll down and select ACTE Publications, scroll down to the Perkins Act of 2006)

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ACTE – Association for Career and Technical Education

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• OMB Circular A133 – Single Audit Act

o Read the entire “Cross Cutting Section” (Compliance Requirements, Section 3)

o The Career and Technical Education Compliance Supplement, 4-48.048-1

o A133 §__.220 - Procurement and Suspension and Debarment

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o Per the current OMB Circular A133 Audit Guide and the CTE Compliance Supplement

(http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011 )

- CFDA 84.048, III. Compliance Requirements, N. Special Tests and Provisions 3.b. - ((Perkins Sec. 113(b)(4)(C)(v))

“Perkins recipients must make their Performance Measure results available to the public…”

as recipients begin to fail Performance Measures this requirement has become the NEWEST easy “audit finding” ….

CFDA – Catalog of Federal Domestic Assistance

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• Education Department General Administrative Regulations (EDGAR 34CFR 74,75,76,77,79,80,81,82,84,85,86,97, 98 and 99)… Specifically –

CFR – Code of Federal Regulations

o 34 CFR 76.533 – Acquisition of real propertyo 34 CFR 76.563 & 564 – Restricted indirect cost rate;

maximum 8%o 34 CFR 76.703 - When may a state begin to obligate

funds; state plan?o 34 CFR 76.707 – When is an obligation made?o 34 CFR 76.708 - When may a recipient begin to obligate

funds (spend $) – Substantial approval?

PART 76 STATE GRANTS

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o 34 CFR 80.3 - Definitionso 34 CFR 80.12 – High-risk recipientso 34 CFR 80.21(i) – Allows recipients to keep $100 interest

(cash management)o 34 CFR 80.22 – Allowable cost reference table

• K-12, local governments, etc. OMB Circular A87• Higher education, community colleges OMB Circular

A21o 34 CFR 80.23(b) – 90 day window to eliminate (liquidate)

prior period obligationso 34 CFR 80.25(g) – Program incomeo 34 CFR 80.26(b) – Audit threshold, Single Audit Act,

$500k

PART 80 UNIFORM ADMINISTRATION - GRANTS

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o 34 CFR.32 Equipment definition, uses, inventory,

disposition, etc.• 34CFR.20(a)(3) – Personal property under $5k;

adequate safeguarding of property (Arizona’s AG refers to it as financial administration’s “stewardship” requirement)

o 34CFR80.36(b) Procurement – this section defers this decision to state procurement rules with some exceptions

o 34CFR80.37 Cash managemento 34CFR80.40 Program monitoringo 34CFR80.42(b) Records retention – 3 years; I

recommend 5 years

PART 80 UNIFORM ADMINISTRATION - GRANTS

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AG – Auditor General

o 34CFR80.43(b) Enforcement – withholding funds, dictate

remedies, recipient appeal rightso 34CFR81.33 Mitigating circumstances appeal to OVAE__________________________________________________

PART 80 UNIFORM ADMINISTRATION – GRANTS

PART 81 – GENERAL ED PROVISIONS ACT - GEPA

OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULARS

o Secondary OMB Circular A87 – Cost Principleso Postsecondary OMB Circular A21 – Approved Costo Non-Profit (some Charter Schools) OMB Circular A122 – Cost

Principles o In particular – Attachment B in A87 & A122; Selected Items of

Cost

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PERKINS

• Section 2 – Purpose• Section 3 – Definitions

o Section 3(1) – Definition of administrationo Section 3(3)(b) – Area CTE schools must have

at least 5 programso Section 3(5)(A)(iii) – Paying for remedial

education not allowedo Section 3(29) – Special populations

• “Other” gone• No more “academically” disadvantaged

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CTE – Career and Technical Education

PERKINS

• Section 112 – Your set-asideso Section 112(a)(3) – 5% administration limit (max)o Statewide leadership – 10% (max)

• Corrections – 1%• Non-Traditional - $60-$150K

o Formula – 85% (min)o Section 112(b) – Dollar-for-dollar matcho Section 112(c) – The ‘Reserve’; up to 10% of

formula funds (Section 112(a)(1)• Section 113 – Accountability. Beginning to cost

recipients money in some states…• Section 122 – State Plan requirements (? Perkins V)

o Amendments (substantial change)• Section 123 – Improvement plans

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PERKINS

• Section 124 – State Leadership ~ FLEXIBLEo Section 124(b) Required Uses

• Assessment• Improve CTE

o Trainingo Academic Skillso Collaboration

• Professional development • Technical assistance

o Section 124(c) – Permissive uses• Tech Prep activities• CTSOs (Career and Technical Student Organizations)

• Data systemso Section 124(d) – Cannot be used for administrative costs

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PERKINS

• Section 124(c)(6) – Support for “Career and Technical Student Organizations” (CTSOs)

You need to go back to the last published Perkins regulations (Perkins 2) – 34(CFR)403.71(c)

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• Section 131 – Secondary distribution of fundso Section 131(c) - Minimum allocations;

Waivers ($15K)o Sufficient size and scope

• Section 131(f)(1)(c)• Section 134(b)(6) – local application

o Section 131(d) – No elementaryo Section 132 – Postsecondary distribution of

fundso Section 132(c) - Minimum allocation $50Ko Consortium required – no postsecondary

waivero Section 134 – Local plans (applications)

PERKINS

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PERKINS

• Section 133 – Specials rules that allow a state flexibility when the amount allocated for either the secondary or postsecondary recipients as a group is 15% or less…

• Section 135 – Local uses of fundso Required uses – may be met with non-federal fundso Permissive uses – a favorite

• Parent involvement• CTSOs• Teacher prep• New program development• Etc.

o Section 135(d) – 5% cap on administration• Indirect costs are considered administrative costs

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PERKINS

• Section 311(a) - Supplement not supplant• Section 311(b) – Maintenance of Effort (MOE)

o Section 311(c) – One time 5% waiver guidanceo Section 323 – State-funded administration MOE

SUPPLANTING DEFENSE

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• OMB A133 Compliance Supplement 4-84.000, III Compliance Requirements > III.G .2.2 - Level of Effort – Supplement Not Supplant .

May be rebuttable if you , ‘would not have provided the service in the absence of federal funds…’

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Tech Prep – Not Funded

• Some states are closing out their Tech Prep programs , running on old (carryover) monies under the 27 month Tydings Amendment period

•If you are doing so – you need to expend these funds under the provisions of –

• Sections 201 through 206 of Perkins

o Section 202 - Consolidation

YOUR OWN STATE’S LAWS ON

• Procurement – 34CFR80.36(b) defers procurement rules to each individual state’s procurement rules

• Inventory – The same is true for inventory requirements for most K-12 schools in your state, because most states usually set their K-12 inventory requirements for equipment or other types of personal property at less than $5K. The state’s guidelines are often more restrictive – and, unless otherwise stated, you will need to follow the more restrictive guidelines – whether state or federal

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YOUR OWN STATE’S LAWS ON

• Audit guides - Those most commonly used by your own state’s Auditor General or Inspector Generals to do fiscal audits of your state’s K-12 schools and community colleges. Please look specifically at those questions dealing with -

o Procurement

o Inventory controls

• Codified state procurement codes that apply to your type of institution

• Codified fiscal procedures that apply to your state’s K-12 schools and community colleges.

• Your state’s educational laws and code.

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PART 76 STATE GRANTS

o 34 CFR 76.707 – When is an obligation made?

o 34 CFR 76.708 - When may a recipient begin to obligate funds (spend $) – substantial approval?

PART 80 UNIFORM ADMINISTRATION - GRANTS

o 34 CFR 80.3 - Definitions o 34 CFR 80.21(i) – Allows recipients to keep $100 interesto 34 CFR 80.22 – Allowable cost reference table

• K-12, local governments, etc. OMB Circular A87• Higher education, community colleges OMB Circular A21

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PART 80 UNIFORM ADMINISTRATION - GRANTS

o 34 CFR 80.23(b) – 90-day window to eliminate (liquidate) prior period obligations

o 34 CFR.32 Equipment definition, uses, inventory, disposition, etc.•34CFR.20(a)(3) – Personal property under $5K; adequate safeguarding of property (Arizona’s AG refers to it as financial administration’s “stewardship” requirement

o 34CFR80.36(b) Procurement – this section defers this decision to state procurement rules with some exceptions

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PART 80 UNIFORM ADMINISTRATION - GRANTS

o 34CFR80.37 Cash managemento 34CFR80.40 Program monitoringo 34CFR80.42(b) Records retention – 3 years; I

recommend 5 PART 80 UNIFORM ADMINISTRATION – GRANTS

o 34CFR80.43(b) Enforcement – withholding funds, dictate remedies, recipient appeal rights

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OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULARS

o Secondary OMB Circular A87 – Approved Cost

o Postsecondary OMB Circular A21 – Approved Cost

In particular – Attachment B in both documents; Selected Items of Cost

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PERKINS

• Section 2 – Purpose• Section 3 – Definitions

o Section 3(1) – Definition of administrationo Section 3(3)(b) – Area CTE schools must have at least 5

programso Section 3(5)(A)(iii) – Paying for remedial education not

allowedo Section 3(29) – Special populations

• “Other” gone• No more “academically” disadvantaged

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PERKINS

• Section 113 – Accountability. Beginning to cost recipients money as more and more recipient programs fail to produce their negotiated outcomes

• Section 123 – Improvement plans• Section 131 – Secondary distribution of funds

oSection 131(c) - Minimum allocations; Waivers ($15K)• Section 132 – Postsecondary distribution of funds

o Section 132(c) - Minimum allocation $50K• Section 134 – Local plans (applications)

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PERKINS

• Section 135 – Local uses of fundso Required uses – may be met with non-federal fundso Permissive uses – a favorite

• Parent involvement• CTSOs; (Perkins 2) – 34(CFR)403.71(c)• Teacher prep• New program development• Etc.

o Section 135(d) – 5% cap on administration• Indirect costs are considered an administrative costs

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TECH PREP CONSORTIUM - Close Out

• If your state is closing out Tech Prep this year (using carryover), rather than rolling these monies into the Basic Grant, you are still subject to –

o Sections 201 through 206

• Section 202 Consolidation with Perkins formula funds

SUPPLANTING DEFENSE

• OMB A133 Compliance Supplement 4-84.000, III Compliance Requirements > III.G .2.2 - Level of Effort – Supplement Not Supplant ..

May be rebuttable if you , ‘would not have provided the service in the absence of federal funds…’

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YOUR DISTRICT’S OR COLLEGE’S GUIDANCE FOR -

• Procurement of supplies, equipment, services or people

• Inventory requirements and procedures

(Both should logically reflect your own state’s guidance on both)

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• Federal Program Offices – http://www.ed.gov

• Perkins Act – http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s250enr.txt.pdf

• OMB Circulars – http://www.whitehouse.gov/OMB/circulars

• EDGAR – http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html

Make sure you have the most current document…

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• Your state’s educational statutes

• Your state’s Auditor or Inspector General’s website(s)

• OIG Web pages – http://www.ed.gov/about/offices/list/oig/areports.html &

http://www.ed.gov/about/offices/list/oig/whatsnew.html

• “The Green Book” - Cost Allocation Guide for State and Local Governments –

Make sure you have the most current document…

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http://www2.ed.gov/about/offices/list/ocfo/fipao/guideigcwebsite.pdf