Perkins 101

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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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• Perkins – The Whole Act (On-line or you can order a paper copy from ACTE)

• OMB Circular A133 – Single Audit Acto Read the entire “Cross Cutting Section” (Compliance Requirements,

Section 3)o The Career and Technical Education Compliance Supplement, 4-

48.048-1o A133 §__.220 - Procurement and Suspension and Debarment

• Education Department General Administrative Regulations (EDGAR 34CFR 74,75,76,77,79,80,81,82,84,85,86,97, 98 and 99)… Specifically – 3

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


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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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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. Not fiscal on the face of

it, but critical in the long run• Section 122 – State Plan requirements (? Perkins V)

o Amendments (substantial change)• Section 123 – Improvement plans 9

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• Data systems

o Section 124(d) – Cannot be used for administrative costs10

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 • Non-Regulatory Guidance Title I Fiscal Issues – Hickok letter• http://www2.ed.gov/policy/elsec/guid/secletter/030306.html?exp=3

PERKINS – TECH PREP

• Sections 201 through 206o Section 202 Consolidation with Perkins formula funds 14

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. 16

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?


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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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 is “stewardship” requirement

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

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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. Not fiscal on the face of it, but critical in the long run

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

o Section 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 administrative costs

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IF YOU ARE IN A TECH PREP CONSORTIUM

• Sections 201 through 206o 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 DISTRICTS’ OR COLLEGES’ 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

• Your state’s educational statutes

• Your state’s Auditor or Inspector Generals 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

Make sure you have the most current document…26

Documents

Perkins 101