1

Expanded Expanded AuthoritiesAuthorities

&&Financial Financial

Monitoring Monitoring

2

Greater flexibility for managing Greater flexibility for managing ED Discretionary GrantsED Discretionary Grants

The The ““Expanded Expanded

Authorities”Authorities” AmendmentsAmendments

3

GOALSGOALS::

““Expanded Expanded Authorities”Authorities”

Increase flexibilityIncrease flexibility

Increase accountabilityIncrease accountability

Reduce paperwork burdenReduce paperwork burden

Develop partnerships Develop partnerships

Promote successful project Promote successful project outcomesoutcomes

4

““Expanded Expanded Authorities” Authorities”

Pre-award CostsPre-award Costs

CarryoverCarryover

Budget TransfersBudget Transfers

Time ExtensionsTime Extensions

5

Pre-award Pre-award CostsCosts

Incurred Incurred up to 90 daysup to 90 days before budget period before budget period

beginsbegins

• NoNo prior approval required prior approval required

•Applies to New and NCC Applies to New and NCC awardsawards

6

Pre-award CostsPre-award Costs

Reasonable expectation of Reasonable expectation of receiving a grantreceiving a grant

Incurred at own riskIncurred at own risk

ED funds are not available ED funds are not available for drawdown until the for drawdown until the budget period beginsbudget period begins

Not for cost over-runs Not for cost over-runs

7

Pre-award CostsPre-award Costs

Incurred Incurred more than 90 daysmore than 90 days before budget period before budget period begins:begins:

Requires Requires prior prior approvalapproval

OKOK

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CarryoveCarryoverr

Unexpended funds are Unexpended funds are carried over without carried over without prior approvalprior approval

For For anyany allowable cost allowable cost within the approved within the approved project scopeproject scope

finishing uncompleted finishing uncompleted activitiesactivities

new activities within new activities within scopescope

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CarryoverCarryover

Program Office Program Office may require a may require a written statementwritten statement

•How will unexpended funds be How will unexpended funds be used?used?

•WhenWhen: At time of funding decision: At time of funding decision

•In rare cases, new funds may be In rare cases, new funds may be reducedreduced

10

Budget TransfersBudget Transfers NoNo prior approval required for prior approval required for

most budget transfersmost budget transfers

Exceptions in EDGAR:Exceptions in EDGAR:

Transfer training funds to other Transfer training funds to other categoriescategories

Transfer or contracting out any workTransfer or contracting out any work

Check OMB Cost Principles for Check OMB Cost Principles for other exceptionsother exceptions

1010%ru%rulele

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EDGAR Prior Approval EDGAR Prior Approval RequirementsRequirements

Changes in project scope or objectivesChanges in project scope or objectives

IHE and non-profit project directors:IHE and non-profit project directors: Absence for more than 3 monthsAbsence for more than 3 months

25% reduction in time25% reduction in time

Need for additional federal fundsNeed for additional federal funds

Changes in key personnelChanges in key personnel

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Time ExtensionsTime Extensions

Final Year:Final Year:

One-time One-time extension for up extension for up to one year to one year without prior without prior approvalapproval

Grantees should Grantees should carefully consider carefully consider time extension time extension needsneeds

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Time ExtensionsTime Extensions

Send written notice to Send written notice to program officer:program officer:

No later than 10 days before No later than 10 days before project endsproject ends

State reasons for extensionState reasons for extension

Include revised expiration dateInclude revised expiration date

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Time ExtensionsTime Extensions

Not just for using Not just for using unexpended unexpended fundsfunds

No change to No change to scope or objectivesscope or objectives

No additional No additional federal fundsfederal funds

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Important RemindersImportant Reminders

Check grant terms, conditions and Check grant terms, conditions and grant award attachments for grant award attachments for possible exceptions possible exceptions

In rare circumstances, some or all In rare circumstances, some or all may be deniedmay be denied

When in doubt, call your Program When in doubt, call your Program OfficerOfficer

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ConclusionConclusion

New spirit of partnershipNew spirit of partnership

We welcome your feedback. We welcome your feedback. Let us know what’s working and what’s not.Let us know what’s working and what’s not.

Internet address: grantspolicy@ed.govInternet address: grantspolicy@ed.gov

Focus on successful Focus on successful project outcomes!project outcomes!

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Grant Administration Grant Administration & Payment System& Payment System

Financial Financial Management/Management/ Monitoring in Monitoring in

GAPSGAPS

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Grant Grant Administration & Administration & Payment SystemPayment System Request Request

drawdown by drawdown by grant award grant award numbernumber

Drawdowns Drawdowns treated as treated as expendituresexpenditures

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GranteeGrantee

receives grant award from receives grant award from ED ED administers the grant in administers the grant in accordance with ED accordance with ED regulationsregulations

DUNS number needed to DUNS number needed to participateparticipate

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PayeePayee

Requests and manages Requests and manages fundsfunds

May be the grantee or other entity May be the grantee or other entity identified by the granteeidentified by the grantee

Needs DUNS Number to participateNeeds DUNS Number to participate

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Payment Payment MethodsMethods

Advance Payment Advance Payment MethodMethod

U.S. Department of EducationU.S. Department of Education

Reimbursement Reimbursement Payment Payment MethodMethod

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Receiving ED Receiving ED FundsFunds

Your Your BankBank

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Cash Cash ManagementManagement

Drawn funds must be Drawn funds must be expended within three expended within three

business days after they business days after they are deposited in your are deposited in your

bank account.bank account.

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Monitoring For Monitoring For ResultsResults Performance monitoringPerformance monitoring

Financial monitoringFinancial monitoring

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The Results ActThe Results Act

Develop program standards & indicatorsDevelop program standards & indicators

Ties federal funding to results!Ties federal funding to results!

What is happening with the money?What is happening with the money?

The Government Performance The Government Performance and Results Act of 1993 and Results Act of 1993

(GPRA)(GPRA)

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Track spending patterns for each grantTrack spending patterns for each grant

Grant Teams MonitorGrant Teams Monitor

**GAPS*GAPS*

Why:Why:

Identify performance problemsIdentify performance problems

Identify financial management problemsIdentify financial management problems

Work in partnership to resolveWork in partnership to resolve

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Rate of draws:Rate of draws:

Commensurate with Commensurate with approved scope approved scope

of of work & work & project project milestones?milestones?

What Grant Teams What Grant Teams Are Looking ForAre Looking For

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Grant for $275,000 to LLU - Grant for $275,000 to LLU - their first federal granttheir first federal grant

Project was on track, Project was on track, meeting goals and objectivesmeeting goals and objectives

Performance report indicated Performance report indicated $200,000 expended$200,000 expended

GAPS shows no funds GAPS shows no funds drawn downdrawn down

Exercise #1 - LLUExercise #1 - LLU

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BobU received $75,000 BobU received $75,000

grantgrant

Performance report Performance report indicates $25,000 indicates $25,000 unexpendedunexpended

Program officer calls Program officer calls grantee to discuss whygrantee to discuss why

Exercise #2 - BobUExercise #2 - BobU

Bob

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SKI receives $400,000 SKI receives $400,000

grantgrant

Key milestones being Key milestones being reached on schedulereached on schedule

GAPS indicates all $400,000 GAPS indicates all $400,000 was drawn down in first was drawn down in first three monthsthree months

Exercise #3 - SKIExercise #3 - SKI

Smarter Kids . . . Start Here!

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When When Grant Grant Teams Teams Check Check GAPSGAPS

Throughout the life of the grantThroughout the life of the grant

At the end of each budget periodAt the end of each budget period

Before performance monitoringBefore performance monitoring

Before technical assistance contactsBefore technical assistance contacts

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Red FlagsRed Flags

Not drawing down funds//Regular Not drawing down funds//Regular draw downs not being madedraw downs not being made

Is work being performed?Is work being performed?

Are performance indicators being met?Are performance indicators being met?

Is there a financial management Is there a financial management problem?problem?

Work is being performed, but payee is Work is being performed, but payee is not drawing down funds not drawing down funds

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Red FlagsRed Flags

Large amount of unobligated funds Large amount of unobligated funds at end of budget periodat end of budget period

Has grantee made substantial Has grantee made substantial progress?progress?

Other issues:Other issues:

Did project have a late start (Year 1) ?Did project have a late start (Year 1) ?

Did key personnel leave the project?Did key personnel leave the project?

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Red FlagsRed Flags Excessive Excessive

amount of funds amount of funds drawn downdrawn down

Draws exceed Draws exceed immediate need immediate need

(3-day rule)(3-day rule)

Draws not in line Draws not in line with project scope & with project scope & milestonesmilestones

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Project Directors: Project Directors: Communicate with your Communicate with your Fiscal StaffFiscal Staff

ConclusionConclusion

Ensure that the drawdowns Ensure that the drawdowns in GAPS reflect status of in GAPS reflect status of projectproject

Grant Teams rely on Grant Teams rely on drawdown in GAPS to drawdown in GAPS to monitor your projectmonitor your project

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ThanksThanks for for attending!attending!

Please complete an Please complete an evaluation form evaluation form

and -and -

Good LuckGood Luck with your with your ED discretionary grant!ED discretionary grant!