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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
PART 80 UNIFORM ADMINISTRATION - GRANTS
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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?
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 is “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. 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