Idaho - 2008

Ted Davis –

• Arizona Department of Education

• Career & Technical Education Section

• Phoenix, AZ

• 602-542-5349

• ted.davis@azed.gov

• Your Approved Plan

• 2006 Perkins – Section 135, Local Uses of Funds

• 2006 Perkins – Section 203, Tech Prep Programs

• Equipment – EDGAR 34 CFR § 80.3, 80.20 & 80.32

• Assigning Cost To The Correct Fiscal year – EDGAR

34 CFR § 76.707

• K-12 – OMB Circular A-87, Attachment B (Allowable Costs)

• Colleges – OMB Circular A-21, Section J (Allowable Costs)

• Request For Guidance – EDGAR 34 CFR § 81.33

• State statutes (yours) – Educational, procurement, etc.

• State educational financial reporting guidelines (yours)

• Any specific guidance from your state agency responsible for Perkins

• State audit guidelines. Ideally, you want a copy of what your auditors will use to review your fiscal practices if you are audited.

• Etc.

LEA – Eligible Recipients

• Program law & applicable regulations.

• Your school, district or college guidelines related to –

State financial reporting requirements.

State and local procurement requirements.

State and local inventory and personal property control requirements.

K-12, OMB Circular A-87.

College or university, OMB Circular A-21 ( When the college is the Tech Prep fiscal agent).

Nonprofits, OMB Circular A-122.

The consolidated audit requirements – OMB Circular A-133.

OMB Circular A-133; the Cross Cutting Section and Your Program-Specific Compliance Supplement

EDGAR (34 CFR 74 – 99)

Your State Financial Reporting Instructions for Schools/Colleges

Whatever Audit Compliance Questionnaire your state auditors utilize when they audit school districts or supply to contracted audit firms doing recipient A-133 audits

Your state’s education code of law

Recent state legislation related to your program

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

• Perkins Act – http://www.ade.az.gov/cte/downloads/PerkinsIV081206.pdf

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

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

• Title 15, Current Bills, etc. – ALIS www.azleg.state.az.us

• Auditor General – http://www.auditorgen.state.az.us/manuals_schooldistrict.htm

• OIG Website – www.ed.gov (Click on “Offices”, left-hand column, then select “Offices of Inspector General”, “home-page”.)

Eligible Recipient

Secondary Postsecondary.

Carl D. Perkins Section 135 – Local Uses of Funds & 203 Tech Prep

Your Approved Local Plan

OMB Circular A-87; Selected Items of Cost

OMB Circular A-21; Selected Items of Cost

State Statutes -

• Procurement

• Capital Assets

• Gifts

• Travel

• Pre-paid costs

Carl D. Perkins Section 135 – Local Uses of Funds & 203 Tech Prep

Your Approved Local Plan

Sole State Agency

Carl D Perkins Act

• Section 112(a)(3) – 5% Administration

• Section 124 – State Leadership Activities

State Approved Plan

Under OMB Circular A87 – However, depending on the recipient you are working with you will use both –

• OMB Circular A87 (Secondary)

• OMB Circular A21 (Postsecondary)

State Statutes - • Procurement• Capital Assets• Gifts• Travel• Pre-paid costs• Etc.

• Fits with your application

• Allowable per the appropriate Circular

• Reasonable

• Allocable

• Consistently Treated

• Consistent with your organization’s policies

• Incurred in accordance with GAAP

• Not charged elsewhere

• Adequately Documented…

From the Office of the Chief Financial Officer, USDOE¹

• 249 Findings

• 48% - Related to procurement and distribution

• 38% - Equipment controls

¹Fiscal Components of Title I & III Monitoring and a Summary of Recent Findings, James Evans, Managing Federal Education Grants Fall Forum, Nov. 30, 2006.

Remember – The other side of “Can I”

• Follow your state’s rules…

• Like golf or batting – The follow through is real important

Unallowable Costs

• Specifically disallowed costs - Entertainment, meals (outside of travel)

• Costs not included in your approved plan

• Normally allowable costs, but the recipient violated their state’s procurement rules

• Get APPROVAL 1st – Then spend (don’t obligate your agency before you have approval)

• Plastic – Those agency-issued P-Cards (procurement cards) can get you in big trouble

• People costs – Failing to keep the required Time & Effort documentation

• Yes

• Don’t forget –

• To include the costs in your application for approval

• “Time & Effort” reporting requirements (Item 8 in both the OMB Circulars A87 & A21)

• The individual has to be working on Perkins-related activities

The definition of “equipment” in EDGAR (34 CFR 80.1) aside, anything that your state defines as equipment (can be less than $5,000) needs to take into consideration –

• “General purpose equipment” is not allowed – A87 & A21 Selected Items of Cost

• Definition – A87.15.a.(4) & A21 Section J.16.b(1)

• Restriction – A87.15.b.(1) & A21 Section J.16.b(1)

“Examples of general purpose equipment include office equipment and furnishings, … reproduction and printing equipment,… automatic data processing equipment.”

• Get it written into your approved application

• Items like your CTE computer lab

• Specialized workstations

• The cost of connecting equipment

• Etc.

• Avoid paying for stuff your district typically supplies to all your district’s educational programs – desks, chairs, PCs

• USE NON-PERKINS FUNDING WHERE POSSIBLE

• Trade Perkins-funded CTE costs for those CTE costs funded with non-federal $$$

• Pursue donated equipment where possible

• “NO”

• Unless it is related to –

• Approved travel (subject to your state’s per diem guidelines)

• Included in your approved registration

• Not considered entertainment

• Included as part of an approved conference or meeting

• A consumable training supply (culinary arts)

• Alcohol never allowed

Read Goods or services for personal use – A87 Attch B.20 & A21 Section J. 19.

• Travel is allowable when it supports your approved grant or plan

• Meals, lodging, all the usual stuff is allowable, when approved

• Should be reasonable

• DOES NOT INCLUDE ENTERTAINMENT COST

What about those conferences I go to where entertainment is included in the registration fee?

There are two line of thought – I participate as long as the cost can’t be broken out from the registration fee with the end result being a lower registration fee

Ultra conservative managers will tell their staff they can’t participate in the activity even if it appears to be free… Individual state’s call

A87 Attch. B.43 or A21 Section J.48

A87 Attch. B.27 (Comparable language in A21 Section J.28)

“Meetings and conferences. Cost of meetings and conferences, the primary purpose of which is the dissemination of technical information, are allowable. This includes costs of meals, transportation, rental facilities, speakers fees, and other items incidental to such a meetings or conferences. But see Attachment B, section 14, Entertainment costs”.

• Must be reasonable

• Must be able to stand the “Would you like to see this on the six o’clock news?” test

• Does NOT mean your Monday morning CTE teachers meeting, with coffee and donuts provided courtesy of the federal grant

• Etc

Prepaid Fees – Early Registration

Are they a professional service fee or part of your travel?

• Prepaid registration fees can lead to accounting headaches related to the issue of “when is a cost incurred”

• May need to transfer the expense from one fiscal year to the next if the fee is paid prior to the fiscal year in which the activity will occur

Little Guidance – the Feds typically refer you back to 34 CFR §403.71(c) – The last regulator guidance for Perkins, under Perkins II

• Allowed – Instructional related costs (very narrow)

• Disallowed – All the fun stuff…

(i) Lodging, feeding, conveying, or furnishing transportation to conventions or other forms of social assemblage;

(ii) Purchase of supplies, jackets, and other effects for students' personal ownership;

(iii) Cost of non-instructional activities such as athletic, social, or recreational events;

(iv) Printing and disseminating non-instructional newsletters;

(v) Purchase of awards for recognition of students, advisors, and other individuals; or

(vi) Payment of membership dues;

(d) Leadership and instructional programs in technology education; and

(e) Data collection.

34 CFR §403.71(c)

(3) The support of vocational student organizations may not include—

My guess, they mean, non-instructional, out of the classroom type activities that don’t meet the conditions of 34 CFR § 403.71(c)(2)(iv) & – “all students…”

• Memberships for the state or district is OK – but not individuals

• Should to be a “reasonable fit” for your grant

• If a significant cost, it is recommended that you utilize your procurement system procedures

• Significant cost

• Sole source provider (speakers, intellectual property, copyrighted, etc.)

• Must be reasonably related to Perkins activities

• Awards or Gifts -Typically Not Allowed

• However you can purchase nice frames through your approved state or local office supply contract, print out a nice certificate on your color laser printer and hand the result to folks..

• Handout donated items from your state’s Chamber of Commerce, local industry groups, etc

• Alcohol

• Entertainment expense

• Awards (gifts)

• Promotional items (freebie’s)

• Promotional advertising

• You can always ask the federal program office for an exception….

• I have never been successful – Typically you need to figure out another way to get what you want if it’s that important

• Use State/Local CTE funds

• If your first thought is “you can’t use state or local funds for that!” - THEN WHY DO YOU EXPECT THE FEDS TO PAY FOR IT?

• Seek donations from :

• Professional organizations

• Fraternal organizations

• Business and Industry (can include new or used equipment)

• Work with your local and state professional CTE organizations –

• ACTE/Az – Arizona’s ACTE organization

• ACOVA – Arizona Council of Vocational Administrators

Co-Sponsorship of Activities

• Let the other group pick up the cost of those things you can’t –

• Give-Away’s (need to fit the definition for “nominal value” under your state’s law)

• Typically more flexible procurement restrictions (however “don’t be stupid”.. The “Would you like to see it on the six-o’clock news?” rule still applies)

Conference Registration Fees

• Typically treated differently than federal funds

• A lot more flexibility

• You can build in the cost of “stuff” –

• Give-Away’s (nominal value)

• Awards

• Activities that could be classified as entertainment – That sight seeing bus tour of Atlanta, Boise, whereever…

• Warning – If your conference receipts exceed your conference costs you basically have “program income”. A “gray area” for most states

Questions

Can I?