DOCUMENT RESUME

ED 414 646 EA 028 822

TITLE What Should I Know about ED Grants?INSTITUTION Department of Education, Washington, DC.PUB DATE 1996-05-00NOTE 76p.; Second Printing.PUB TYPE Guides Non-Classroom (055)EDRS PRICE MF01/PC04 Plus Postage.DESCRIPTORS Audits (Verification); Awards; *Compliance (Legal);

Elementary Secondary Education; Eligibility; *Federal Aid;*Federal Regulation; *Grants; Grantsmanship; *ProgramAdministration

IDENTIFIERS *Discretionary Grants

ABSTRACTThe Department of Education's ability to create a

high-performance education system is directly linked to the public'sunderstanding of how to apply for and make proper use of federal grant funds.This booklet is intended for individuals who are interested in applying tothe U.S. Department of Education (ED) for discretionary grants andcooperative agreements, those who have received an award, or persons who areinterested in knowing more about the discretionary grant-making process. Adiscretionary grant is an award of financial assistance in the form of money,or property in lieu of money, usually made on the basis of a competitivereview process. A cooperative agreement is a variation on the discretionarygrant. Following the introductory chapter, chapter 2 describes howdiscretionary grant programs are administered. The third chapter explains theforms in the application package that must be completed. Chapter 4 describeswhat happens to the application after ED receives it, and chapter 5 explainshow a funding recommendation becomes a grant award, the negotiationprocedure, and how the award is transformed into dollars. The recipient'sresponsibilities for compliance with federal regulations are outlined in thesixth chapter. Chapters 7 through 9 provide guidelines for communicating withthe department, completing the required final reports, and complying withauditing requirements. A glossary, a list of other information sources, and asample grant-award notification are included. (LMI)

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U S DEPARTMENT OF EDUCATIONOffice of Educational Research and Improvement

E CATIONAL RESOURCES INFORMATIONCENTER (ERIC)

This document has been reproduced asreceived Irom the person or organizationOriginating it

0 Minor changes have been made to Improvereproduction Quality

Points of view or opinions stated in this docu-ment do not necessarily represent officialOERI position or policy

U.S. Department of EducationWashington, D.C.

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U.S. Department of Education

Richard W. RileySecretary

Madeleine KuninDeputy Secretary

Second printing: May, 1996

The Information contained in this booklet is a non-technicalsummary of the Department of Education's discretionarygrants process and the laws and regulations that govern it.This booklet should not be relied on as a sole source ofinformation in matters of discretionary grant application,review, award, administration, closeout, or audit at theDepartment of Education. Nothing in this document isintended to impart specific rights to grant applicants orrecipients. Please consult the appropriate regulations inTide 34 of the Code of Federal Regulations for the specificrules that apply to the Department's programs.

Widespread dissemination of this document is encouraged.It may be reproduced in whole or in part by any means.

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FOREWORD

One of the Department's many functions is working with ourpartners--individuals, schools, nonprofit groups, state and localgovernments, and others--to whom the Department gives funding aspart of our mission to ensure equal educational access and topromote educational excellence throughout the nation. Our abilityto help create a high-performance education system for the 21stcentury is directly linked to your understanding of the ways toapply for and make proper use of federal grant funds.

Over the years we have listened carefully to the questions aboutthe grants process that our customers have asked us. What ShouldI Know about ED Grants? is designed to demystify the grantsprocess within the Department. I hope that in doing so we willcommunicate to our applicants and recipients a clear sense of theirrole as our partners in fulfilling the legislative intent of theDepartment's many discretionary grant programs.

I hope you will find this booklet helpful. Please let us know whatyou think of it and how we can improve it to serve you better.

Richard W!ii1e;t4A-

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Dear Reader:

UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF THE CHIEF FINANCIAL OFFICER

May 1, 1996

Last year we published What Should I Know about ED Grants? inresponse to a recommendation from the Vice-President's NationalPerformance Review that the Department undertake a communicationseffort to inform citizens about the discretionary grants processhere. Since that time, thousands of copies have been distributedacross the country to organizations, recipients, and the generalpublic, who have given the publication an enthusiastic reception.

In response to the demand for copies, the Department' GrantsDivision is issuing this second printing. Its content does notdiffer from the first printing. However, it does containtypographical corrections and some updated'contact information inthe section, 'Other Information.'

Please be aware as you read through the booklet that the processof re-inventing government continues to transform the ways thatthe Department does business with its customers. While re-invention has the ultimate goal of better service for you, itmeans that policies and procedures in the Department are evolvingalso. In the coming year, some of them will differ in variousways from those described in these chapters as a result of themajor initiative underway in the Department to streamline and re-engineer the discretionary grants process. Therefore, Iencourage you to contact program offices or grants managementstaff members at any time to learn about the most recentdevelopments related to any topic discussed in the booklet. Youmay also contact my office on (202)708-5601 with your questions.

I would like to thank Ronelle Holloman, Mary Jane Kane, GlennRiley, Kathy Thomas, and their chief editor, Greg Vick, fordeveloping the concept for this publication and for writing andediting its contents. From the favorable reactions to thebooklet we have received so far, I know that their efforts willcontinue to be of great help to you in understanding thediscretionary grants process, whether you are a first-timeapplicant or a previous grant recipient.

In closing, I repeat Secretary Riley's invitation to share yourcomments on the booklet with us. Please send them to the addresslisted in the 'Afterword' section on the last page.

Sincerely,

Mary P. LiggettActing DirectorGrants DivisionGrants and Contracts Service

600 INDEPENDENCE AVE., S.W. WASHINGTON. D.C. 20202

Our mission is to ensure equal access to education and to promote educational excellence throughout the Nation.

CONTENTS

1 Before We Begin

How do I apply for Student Financial Assistance? 1

How do I apply for formula grants? 1

2 Let's Get Started

What is a discretionary grant? 3How does ED set up discretionary grant programs? 3Who runs ED discretionary grant programs? 4How do I find out about ED discretionary grant programs? 4How do I learn if I am eligible to receive a discretionary grant? . 6How do I apply for funding from an ED discretionary grant

program? 7

3 On the Paper Trail

What is in an application package? 8How do I get an application package? 8How does the Department decide what goes into an application

package? 9What are these certifications and assurances I have heard about

and how do they apply to my application? 9What are regulations and how do they apply to my

application? 9What are funding priorities and how do they affect my

application? 10Is there anything I can do to help shape regulations and funding

priorities? 1 1

How do I get help filling out the application forms? 1 1

Where do I send the completed application? 1 1

What happens if I have not sent all the required paperworkto the Department by the deadline? 12

What happens to an application once the Departmentreceives it? 12

What happens to my application if the Department finds thatI am not eligible to apply? 13

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4 Waiting to Hear

How does the Department review my application? 14What criteria do the reviewers use in scoring my application? . 15How does the Department take into account variations in

scoring practices among reviewers? 15How can I become an application reviewer? 15How does my application get recommended for funding? 15Does a recommendation guarantee funding? 16How long does it take the Department to decide on my

application? 16Why does it take this length of time? 16Is there anything else I can do in connection with my

application while waiting to hear from the Department? 16

5 Success!

What happens to my application after the program officerecommends it for funding? 17

What steps does the Department take before notifyingapplicants of funding recommendations? 18

How do I learn that my application has been recommended forfunding? 18

What am I expected to do in a negotiation? How doI prepare? 20

Is an application always funded for the whole amount originallyrequested? 23

What happens after a negotiation? 23What does my Grant Award Notification contain? How do

I receive it? 24How do I actually get my grant funds? 25How long does it take to get my grant funds? 25How do I get funds after the first year if my organization

receives a multi-year award? 26

6 Doing It Right

What responsibilities do I have under a Department of Educationdiscretionary grant or cooperative agreement? 27

What must I do if I need to change some part of my projectfrom the original application? 28

What can I do to help my request for a change get processedmore rapidly? 28

What are OMB circulars? Do they apply to my grantaward? 30

How do I make sure that I am complying with the regulationsthat apply to my award? 30

7 Let's Talk

What is the difference between staff members in a programoffice and those in the Grants Division? 32

Does the program officer or grants officer keep in touch withme regularly? How often do I need to talk with them aboutmy project? 33

Do program officers or grants officers visit my project? 34What do I need to do to prepare for a site visit? 35

8 Wrapping It Up

What happens after the project has ended? 36What is my role in this process? What responsibilities doI have after the project has ended? 36What happens if I cannot send my final reports by the due dates

because I have not finished the work of the project? 37What happens if I have completed the work of the project but

cannot send my final reports by the due date for some othervalid reason? 38

How do I get help completing my reports? 38Where do I send my reports and how many do I need

to send? 38What happens if the Department does not receive

my reports? 39Do I have to keep any records related to my grant project

after the Department closes out my grant? 39

9 Just One More Thing

What are the audit requirements related to my grant? 41What happens in an OIG audit? 43

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What happens if costs or activities are determined to beunallowable as a result of my audit? Will I have to paymoney back? 44

Can I appeal the Department's decision that I must repaymoney? 44

Glossary A-1

Other Information B-1

Sample Grant Award Notification c-i

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1 Before We Begin

This booklet is intended for readers who are interested in applying to theU.S. Department of Education (ED) for discretionary grants and cooperativeagreements, those who have received an award, or persons who are simplyinterested in knowing more about the discretionary grant-making process atthe Department. It describes how discretionary grant and cooperativeagreement programs are created by Congress and administered by theDepartment and how the public goes about applying for and receivingdiscretionary grants.

This booklet does not contain information about programs of theDepartment that give student financial assistance or funding through formulagrant programs.

(NOTE: Words shown underlined the first time they appear (other thantitles of publications) are defined in the section, 'Glossary,' which begins onpage A-1 of this booklet.)

How do I apply forStudent FinancialAssistance?

How do I get moreinformation aboutformula grantprograms?

The Student Financial Assistance Programsoffice of the Office of Postsecondary Educationat the U.S. Department of Education offersfunding to individuals looking for financial helpin pursuing their educational goals. Underthese programs, the Department makes avariety of grants and loans for postsecondaryeducation. For more information about theseprograms and their application process, dial1-800-4-FEDAID (1-800-433-3243).

Formula grant programs, sometimes referred toas state-administered programs or statutoryentitlement programs, are administered byvarious program offices. Further informationabout formula grant programs at the U.S.Department of Education is contained in the

Guide to U.S. Department of EducationPrograms (the Guide). [Information aboutgetting a copy of the Guide is given in thesection, 'Other Information,' which begins onpage B-1 of this booklet.] You should contactdirectly the program office that administers theparticular formula grant program in which youare interested.

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2 Let's Get Started

The process of making a federal grant begins long before an applicant orrecipient ever sends a piece of paper to the government. Federal grants havetheir origin in the legislative process of the Congress and the regulatoryprocess of the federal agencies. Even then, it would not be possible for afederal agency such as the Department of Education to make grants withoutsetting up a structure for their orderly administration. This chapter presentsthe big picture of the way that discretionary grant programs are set up in theDepartment; it gives you a better idea where grants come from and how youcan learn more about the grant opportunities that are available to you.

What is adiscretionary grant?

Unlike a formula grant, which the Departmentawards to all eligible parties based on apredetermined formula, a discretionary grant isone that the Department awards on the basis ofa competitive process. The Departmentreviews applications competitively in light ofthe legislative and regulatory requirementsestablished for a program. This process ofcompetitive review affords the Departmentdiscretion in determining which applicationsbest address the program requirements and aretherefore most worthy of funding.

How does ED set up Congress establishes discretionary grantdiscretionary grant programs through authorizing legislation andprograms? appropriations legislation. The Department

then usually writes program regulations basedon the authorizing legislation, which describehow the programs are to be administered.After these program regulations are publishedin final form, the Department can solicitapplications and award grants.

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Who runs EDdiscretionary grantprograms?

How do I find outabout EDdiscretionary grantprograms?

The Department is composed of six broad areasof responsibility for program administration,called Principal Offices. Each is responsible foroverseeing a portion of the programsestablished by the Congress and administeredby the Department. The Principal Offices are:

Office of Bilingual Education and MinorityLanguages Affairs (OBEMLA)Office of Educational Research andImprovement (OERI)Office of Elementary and SecondaryEducation (OESE)Office of Postsecondary Education (OPE)Office of Special Education andRehabilitative Services (OSERS)Office of Vocational and Adult Education(OVAE)

The Principal Offices are further subdividedinto program offices, which administer theDepartment's discretionary grant programs ona daily basis. The program office conducts thereview of applications and makesrecommendations for funding to the GrantsDivision of the Grants and Contracts Service,which, in turn, is an administrative unit of theOffice of the Chief Financial Officer. TheGrants Division then negotiates and awards thegrants. Administering grant awards is a jointundertaking of the Grants Division and theprogram offices.

There are different means by which you canget information about the discretionary grantprograms at the Department of Education:

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To get a general overview of theDepartment's programs, you can write orphone the Department to get a copy of theGuide to U.S. Department of EducationPrograms (the Guide), mentioned in theprevious chapter. This publicationdescribes the various discretionary grantprograms and gives a telephone contactnumber for each program, which you cancall for further information. You can alsoget this document in electronic format, asdescribed below.

The Department publishes an applicationnotice in the Federal Register to informpotential applicants of each newdiscretionary grant competition. AnApplication Notice invites applications forone or more competitions, gives basicprogram and funding information on eachcompetition, and informs potentialapplicants when and where they mayobtain applications. Program offices oftenpublish an Application Notice for eachindividual program, but they areencouraged to include their notices in thedepartmental Combined ApplicationNotice (CAN), generally published in thespring. The CAN lists most of thediscretionary grant competitions plannedfor the coming year, with applicationdeadlines and other basic information.

If you have a modem or access to amodem, you can read the Guide and otherinformation about Department ofEducation grant programs by dialing theDepartment's ED Board. You can search

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How do I learn if Iam eligible to receivea discretionary grant?

and download text files, read applicationnotices posted there, and search for typesof discretionary grant funding by PrincipalOffice and type of program. [Informationabout contacting the ED Board or aboutobtaining the Federal Register is given inthe section, 'Other Information,' whichbegins on page B-1 of this booklet.]

The first issue to consider before applying for a

grant is whether your organization is eligible toapply for funding from the program.

If you are not sure about the grant programsunder which you would be eligible, start withthe Guide, discussed above.

The Guide has an index to help you identifythe grant program(s) in which you areinterested. The Guide also gives the CFDAnumber for each grant program, a system ofnumbering based on the Catalog of FederalDomestic Assistance. It is essential that youuse this number when contacting theDepartment so that you will receive the rightinformation about the specific grant program(s)of interest to you.

Once you know the number and title of thegrant program(s) under which you want toapply, you may wish to review the programregulations by looking them up in the Code ofFederal Regulations. [Information aboutobtaining a copy of the Code of FederalRegulations is given in the section, 'OtherInformation,' which begins on page B-1 of thisbooklet.]

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3

How do I apply forfunding from an EDdiscretionary grantprogram?

The Code of Federal Regulations is updatedonly once a year. Therefore, it might notinclude recent changes to program regulations.You should contact the program office listed inthe Guide to confirm the status of the programregulations.

The application package lists the eligibilityrequirements, generally drawn from thelegislation establishing the program. Eligibilitymight be limited to a particular type oforganization (e.g., only state educationagencies), organizations that serve only aparticular group (e.g., disadvantaged studentsonly), or organizations that meet some othercriteria. In some cases an organization wishingto apply under a particular program must firstapply to the Department to be certified aseligible for that program. Requirements varyfrom program to program; read the applicationpackage carefully before preparing yourapplication.

Contact the program office responsible for theprogram that interests you and request anapplication package. Follow the applicationinstructions in the package, which generallyrequire you to complete certain standard formsand send them, along with a narrativedescription of the proposed project and anestimated budget, to the Department by acertain date.

Please note that some program offices publishtheir application forms in the Federal Registeralong with their application notices. In thosecases you may simply photocopy the formsdirectly from the Federal Register pages and donot need to get the forms from the programoffice.

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17

3 On the Paper Trail

Asking for grant funds from the Department of Education is not aninherently complicated process, but it does require that you give us differentkinds of information so that we can consider your request fairly andcompletely. The Department is working toward that day in the future whenit can offer applicants the opportunity to do all this electronically through anautomated process of data exchange between you and us. For the timebeing, however, paper is the primary medium of communication--from youto us, from us to you. Applying for discretionary grant funds means thatyou have to complete and send to us two or more different forms. Thischapter tells what those forms are, why each is needed, how to get copies ofthem for your use, and where to send them.

What is in anapplication package?

How do I get anapplication package?

New discretionary grant application packagesinclude the Application Notice, programregulations and/or legislation, and all forms andinstructions needed to apply for a grant. Someapplication packages contain a Dear Colleagueletter from a Principal Office official, whichgives an overview of the particular programand discusses any funding priorities in effect fora particular competition.

Application packages are available from thespecific program office that is responsible for aparticular program. Some application packagesare also published in the Federal Register for anapplicant to photocopy and use. The programoffice for the program in which you areinterested can tell you how to get a copy oftheir application package.

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How does theDepartment decidewhat goes into anapplication package?

What are thesecertifications andassurances I haveheard about and howdo they apply to myapplication?

What are regulationsand how do theyapply to myapplication?

Certain forms are required by the Department'sregulations or applicable statutes. Others arerequired by the Office of Management andBudget (OMB). Whatever the case, theDepartment needs the information requestedon the forms in order to process yourapplication. The Department is aware of thepaperwork burden that the grants processimposes on applicants and recipients. As partof the federal effort to improve service to thepublic, the Department of Education iscontinuously trying to determine the ways thatpaperwork can be lessened and welcomes yoursuggestions.

Various federal requirements are imposed onapplicants and recipients as a condition forreceiving grant funds. Application packagescontain forms that an applicant is required tosign, promising to abide by various federallaws, regulations, and executive orders thatapply to recipients. For example, standardassurances relate to such items as civil rights orenvironmental laws; one of the certificationsrequires that you agree to maintain a drug-freeworkplace. Some programs give funding to arecipient, who then distributes some of themoney to other persons--e.g., fellowshipholders, contractors, and others. In thesecases, recipients might be required to getcertain forms signed by those persons as well.

Regulations are rules of general applicability(i.e., they apply to all applicants and/orrecipients in a particular program). TheDepartment publishes program regulations inthe Federal Register (which are later made partof the Code of Federal Regulations) before

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What are fundingpriorities and how dothey affect myapplication?

soliciting applications and awarding new grantsin a program. The Department also publishesadministrative regulations that apply to all grantrecipients. One group of these administrativeregulations is collectively known as EDGAREducation Department General Administrative

Regulations).. [Information about obtaining acopy of these regulations is given in thesection, 'Other Information,' which begins onpage B-1 of this booklet.]

For some programs, the Department publishesfunding priorities in the Federal Register toidentify what activities will be funded in a givenyear. If the Department publishes an absolutepriority for a program, it will then fund onlythose applications that address that priority.For example, a published absolute priority tofund only projects that increase the amount oftime students are engaged in the study ofmathematics and science would require thatonly those projects that are designed to achievethis result could potentially receive funding.

If the Department publishes competitivepriorities for a program, applicants meetingthose priorities might receive additional pointsduring the competitive review process. Thereare also invitational priorities, which encourageapplicants to address certain issues. If you areconsidering submitting an application, be sureto read all the material in the applicationpackage carefully to identify any publishedpriorities.

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Is there anything Ican do to help shaperegulations andfunding priorities?

How do I get helpfilling out theapplication forms?

Where do I send thecompletedapplication?

Yes. Members of the public have theopportunity to offer comments on proposedregulations and funding priorities. Before theDepartment formally publishes regulations andfunding priorities, it issues a notice of proposedfunding priorities or a notice of proposedrulemaking (regulations) with a request forcomments by a certain deadline. Sometimes,the Department accepts comments at publiclyannounced hearings. You can review theFederal Register for Department of Educationnotices of proposed priorities and rulemakingand provide comments during the specifiedcomment period to the persons named or atthe places identified in the notices.

The specific program office for a particularprogram can answer your questions about therequired forms. The notice invitingapplications for a competition, published in theFederal Register, gives the name of a contactperson. In addition, application packages oftencontain a 'Dear Colleague' letter, which usuallygives the name of a contact person forapplicant inquiries. Some program offices alsosponsor pre-application workshops to assistpotential applicants in the application process.

For most grant programs, the ApplicationControl Center, an area of the Department'sGrants and Contracts Service, is the only placein the Department of Education that isauthorized to accept applications fordiscretionary grants and cooperativeagreements. A few programs, however, areauthorized to accept their own applications.Some of these programs are located at theDepartment's headquarters facilities in

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What happens if 1have not sent all therequired paperworkto the Departmentby the deadline?

What happens to anapplication once theDepartment receivesit?

Washington, D.C. Others are located in theDepartment's regional locations throughout thecountry. The application package for eachprogram gives the address and other specificmailing information. Read and follow verycarefully the mailing instructions given in eachapplication package.

The Department has an absolute policy of notaccepting applications that arrive after thedeadline for a particular program'scompetition, known as the deadline date (orthe 'closing date'). To be assured ofconsideration, an application from an eligibleapplicant--with all forms and other requiredpaperwork--must arrive in the ApplicationControl Center (or other place specified in theapplication) by the closing date. TheDepartment notifies an applicant that anapplication will not be considered if it isreceived after the closing date.

The Department's headquarters--or, in somecases, a regional receipt point--records eachapplication, assigns to it a PR/Award numberand sends it to the appropriate program office,which screens the application for eligibility andcompleteness. The program office thenconducts a competitive review of all eligibleapplications, ranks them, and recommends themost highly ranked applications to the GrantsDivision for funding. Grant applicationsrecommended for funding in the Department'sregional offices are sent to the grantadministrator for that region. The GrantsDivision (or regional grants administrator) then

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What happens to myapplication if theDepartment findsthat I am not eligibleto apply?

negotiates with the successful applicants andawards the grants.

If an application does not meet the eligibilitycriteria for the particular program to which itwas sent, the Department notifies the personwho signed the application that the applicationis not eligible and will not be considered. Theletter from the Department explains thereason(s) that the application is not beingreviewed in the competition.

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4 Waiting to Hear

Having to wait for any desired outcome is always a challenging experience.But it is even more so when one is waiting to learn the fate of an applicationto the Department for funding, since the future of programs and individualsat an applicant organization is often linked to the Department's decision.Frequently, some months elapse between an application deadline and the daywhen applicants learn about the funding recommendations made for aparticular group of applications. The Department is always seeking ways toreduce the time period between application deadline and award day andwelcomes your suggestions to that effect. Nonetheless, some waiting isalways involved, due to the volume of applications the Department receivesas well as the added time required for the Department to act on itscommitment to give each application a fair and thorough review. Thischapter describes what happens to your application after the Departmentreceives it and includes a couple of suggestions for what you can do in themeantime.

How does theDepartment reviewmy application?

In addition to recruiting federal employeeswithin and outside the Department to serve asgrant application reviewers, the program officerecruits non-federal persons from outside theDepartment who have expertise in the subjectarea(s) of the applications being considered.Each reviewer reads and scores a group ofassigned applications. After the reviewersscore the applications, the program officeconducts an internal review to assure that thereviewers' scoring sheets are correctlycompleted and that the application meets allthe requirements of the program. These tworeview processes become the basis for a finallisting of applicants that the program officerecommends for funding.

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4

What criteria do thereviewers use inscoring myapplication?

How does theDepartment take intoaccount variations inscoring practicesamong reviewers?

How can I become anapplication reviewer?

How does myapplication getrecommended forfunding?

Reviewers score each application against theselection criteria published in the FederalRegister as part of the program regulations,which are discussed in Chapter 2 of thisbooklet. Or, reviewers use the selectioncriteria in EDGAR if there are no programregulations. In reviewing applications,reviewers are not permitted to use additionalcriteria or consider any information that is notin the application.

Program officials have the option of using acomputer program in the review process tonormalize reviewers' scores. This normalizationcompensates for the tendencies of somereviewers to score applications higher or lowerthan other reviewers for the same group ofapplications. With normalized scores, theprogram officials are able to prepare a rankorder list of applications that negates, as muchas feasible, any unusual variations in scoring.

Contact the staff members in the programoffice that handles grant programs in your areaof expertise and inform them of your interest.Phone numbers for program offices can befound in the Guide. Usually, a staff memberasks a person expressing interest in taking partin the review process to send a resume orcurriculum vitae in order to evaluate theperson's credentials as a potential reviewer.

Your application must score highly and meet allother requirements of the program to berecommended for funding.

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Does arecommendationguarantee funding?

How long does ittake the Departmentto decide on myapplication?

Why does it take thislength of time?

Is there anything elseI can do inconnection with myapplication whilewaiting to hear fromthe Department?

No. An award is not final until the negotiationhas been successfully concluded and a GrantAward Notification has been signed by thegrants officer and mailed to the applicant.(This process is discussed in further detailbelow.)

Although the time varies from program toprogram, it takes approximately six to eightmonths from the time the Department receivesa new grant application to the time the awardis made.

The Department must carefully follow all of itsown procedures, as well as requirementsestablished by Congress and OMB, in reviewingapplications and awarding grants. We mustassure that the review and award process is fairto all applicants. This takes time. However, aspart of its ongoing effort to improve service toits applicants, the Department is studying waysto shorten the review period and consequentwaiting period for applicants.

Yes. You might want to take time to reviewthoroughly the program regulations and otherguidance contained in the application packageto make certain you have a good understandingof the program's requirements. If anyquestions come to mind, jot them down andkeep them with your copy of the applicationmaterials. This puts you in a good position tonegotiate, should the Department let you knowof a favorable decision on your application.

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5 Success!

The big day has finally arrived. You receive from the Department anotification by letter or phone that your application has been recommendedfor funding. You breathe a sigh of relief and then the question undoubtedlycrosses your mind: What next? In a sense, it can be said that it is at thispoint that the real work begins, since further interaction in the form of thenegotiation between you and the Department is usually required before theDepartment can actually provide any funding for your project. And then, ofcourse, come the actual activities of your project, which go on for a year ormore. This chapter delves into the details of the way that your fundingrecommendation turns into a grant award, what takes place during thenegotiation, and the process of turning that prized grant award into thedollars that are essential for you to carry out your project successfully.

What happens to myapplication after theprogram officerecommends it forfunding?

Once the program office completes its review,recommends specific funding amounts forapplications, and ranks applications in order offunding recommendation, it sends the list ofrecommended applications and amounts, calledthe slate, to the Principal Officer of theprogram office for final review. If the PrincipalOfficer concurs in the slate recommendations,he or she signs the slate, making therecommendations official, at which point theprogram office is authorized to send therecommended applications to the GrantsDivision along with any recommendations forchanges to the budget and any questions thatthe program office has for the applicant.

After the Grants Division receives yourapplication, staff members review programoffice recommendations, analyze the budget,

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2 7

What steps does theDepartment takebefore notifyingapplicants of fundingrecommendations?

How do I learn thatmy application hasbeen recommendedfor funding?

negotiate the details of the award with yourorganization's representative, obligate the grantfunds for your organization (see obligation inthe section, 'Glossary,' which begins on pageA-1 of this booklet), and sign your officialGrant Award Notification. This phase of theprocess takes from four to seven weeks. Theanswers to the following questions describethese steps in further detail.

After receiving the application and supportingmaterials from the program office, the GrantsDivision creates an official grant file for eachapplication and assigns each file to a grantsspecialist. The grants specialist then makes acareful review of the materials to make sure allrequired forms (including certifications andassurances) are complete and correct.

The cost analysis comes next. This processdetermines if the proposed costs of anapplicant's budget are allowable, allocable, andreasonable. In analyzing costs, the grantsspecialist reviews the recommendations of theprogram officer, the itemized budget, and partsof the narrative portion of the application todetermine how the costs relate to the activitiesand objectives of the grant. In addition, thegrants specialist might make note of anyadditional questions about certain cost itemsthat the budget does not adequately address,including those related to insufficientjustification for claimed indirect costs.

About the same time that the program office isgetting recommended applications ready tosend to the Grants Division for its review (asmentioned above), it usually sends out

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notification letters to applicants. These letterslet applicants know whether or not theirapplications have been recommended forfunding. The program office might also sendletters to a third group of applicants, advisingthem that they are in a 'hold' funding status.While this latter group is not yet actuallyrecommended for funding, having rankedslightly lower than the recommended group,they still have a chance of being recommendedif additional funds become available or if oneor more of the recommended applicantsdeclines an offer of award.

At the same time, the Department is alsosending notification letters to members ofCongress from states where recommendedapplicants are located. As a result, applicantssometimes receive news of fundingrecommendations from their congressionaldelegations as well.

After having reviewed the application packageand having completed the cost analysis, thegrants specialist contacts the applicant toschedule a mutually agreeable time fornegotiating the grant. Usually, that person isthe one listed in block #3 of the federal formthat acts as the cover page of the application(Standard Form 424 or SF-424).

In general, it is the practice of the GrantsDivision to do a negotiation by telephone,although occasionally they are done in person.In cases where the Grants Division determinesthat there are no substantive fiscal orregulatory issues pertaining to the application, anegotiation might just be carried out by letter.

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What am I expectedto do in anegotiation? How doI prepare?

The length of the negotiation depends on thenumber of questions you might have, thequestions the program officer and grantsspecialist might have, the nature andcomplexity of the application, and thepossibility of future continuation grants.

As each grants specialist reminds applicants,the phone negotiation does not constitute anaward. Keep in mind that, at the point ofnegotiation, any proposed funding is still arecommendation only, and the award is notofficial until you have received the signedGrant Award Notification. (A sample of aGrant Award Notification is found on pageC-1 of this booklet.)

Sometimes the program officer and/or programstaff take part in the negotiation, depending onthe concerns of the program office and thenature of the grant. Other times the grantsspecialist shares the program officer's concernswith you and asks you to respond in writing.

The grants specialist expects you to answerquestions about your application that came upduring the panel review or the subsequentreview conducted by the program office. Thegrants specialist also discusses with you thebudget for the project. More often than not,applicants need to make reductions and otherchanges to the original, proposed budget as aresult of the negotiation. One of the bestthings you can do to prepare for a negotiationis to have in mind ways of adjusting theproposed activities discussed in the application,so as to achieve the stated goals of your projecteven if your budget is modified or reduced.

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In general, applicants are asked to respond inwriting to both programmatic and budgetaryquestions and to prepare revised materials. Insuch cases, you can plan on being asked toprovide the basis for the amounts requested inyour budget. An example: If you arerequesting six computers, please tell us why. Is

it because the program is operating in sixschool buildings? Or is there anotherrationale? Another example: If you arerequesting travel funds, a grants specialist asksfor details to support your estimate (Who istraveling? To what location? For whatpurpose? What amounts are for air fare, perdiem, or mileage?).

A surprising number of budget adjustmentsmust be made during the negotiation due tocomputation errors. We cannot emphasizeenough the importance of checking yourbudget figures thoroughly before you send yourapplication and revised materials to theDepartment.

Other items that are discussed during anegotiation are budget period, project period,EIN, and the regulations that apply to yourgrant. The EIN is the IRS-assigned employeridentification number, which your institution ororganization enters in block #6 of the StandardForm 424. For you to get your money, it isvery important that the EIN is correct becauseit becomes the basis of the entity number,which identifies your account in theDepartment. Once the grant is awarded, anentity number is entered into block #7 of theGrant Award Notification. The Department,in turn, links the entity number to a Payment

21

Identification Number (PIN1, which you use todraw down your award funds electronically.

The grants specialist guides you throughapplicable regulations during the negotiation.One important thing to remember is thatdifferent regulations apply to a grant award,depending on the program to which you havesent an application and the type of recipientyou are. State and local government entitieshave different regulations from institutions ofhigher education (IHEs), nonprofitorganizations (NPOs), or commercial entities.

Throughout the negotiation the grants specialistkeeps a careful written record of the detailsdiscussed, which is turned into a writtenmemorandum for the official grant file. Basedon the items discussed during your negotiation,applicants are asked to send revised materials,generally within a very short time. If you havequestions while preparing your revisedmaterials, contact your grants specialist as soonas possible for technical assistance. It isextremely important to return the revisedmaterials by the deadline to which you haveagreed. Remember to send an original for theofficial grant file and one copy for the programoffice.

(NOTE: At approximately the same time asthe negotiation is taking place, it isrecommended that you work with yourbusiness office to set the grant up on aschedule that coincides as much as possiblewith your institution's or organization's

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Is an applicationalways funded for thewhole amountoriginally requested?

What happens after anegotiation?

administrative and accounting needs as well asthe needs of the project.)

No. In some cases the reviewers or programoffice might determine that certain proposedactivities in the application are unnecessary andrecommend deleting them and their associatedcosts from the award. In others, the grantsspecialist who performs the cost analysis mightdetermine that the amounts requested forparticular items are excessive and negotiate adifferent amount with you.

In addition, some programs have cost-sharingrequirements. This means that the programlegislation or regulations require that therecipient contribute some percentage of thetotal project costs during the budget periodbeing funded. Be sure to read applicationmaterials carefully to learn if you are requiredto include cost-sharing contributions in yourapplication budget. The grants specialist whonegotiates your award with you also calls anyrequirements for cost-sharing to your attentionduring the negotiation.

After a negotiation, the grants specialist entersthe negotiated amounts, budget and projectperiods, the names of key personnel, entitynumber, and other applicable data into theDepartment's computer system and prints theGrant Award Notification. At this point, theGrant Award Notification is still not official,however, since it has not yet been signed by agrants officer. The grants specialist carefullychecks revised materials to make sure that allcomputations are correct and that all issueshave been addressed. If the revised materials

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What does my GrantAward Notificationcontain? How do Iget it?

contain errors or are incomplete, the grantsspecialist contacts you for further revisions.

Once revised materials are complete andcorrect, the grants specialist presents theofficial file and Grant Award Notification tothe grants officer who actually signs thedocument and makes the obligation for theaward.

After it is signed by the grants officer, yourGrant Award Notification is ready for mailingout. Some Grant Award Notifications containattachments, which spell out additional termsand conditions of the award, and enclosuresthat give further guidance on administrativeprocedures (e.g., where to mail requiredreports). The attachments and enclosurescontain important information about youraward; you are urged to pay particularattention to them as you read your GrantAward Notification. Grant AwardNotifications for the first or interim years ofmulti-year awards contain information aboutanticipated future periods and tentative levelsof funding.

Two copies are mailed to each institution.One copy goes to the certifying representative(the person who signed block #18 of theSF-424). The second copy goes to the personlisted in block #5 of the Grant AwardNotification, who is usually the projectdirector. The Department mails a bookcontaining the Education Department GeneralAdministrative Regulations with each projectdirector's copy. These materials generallyarrive by mail a short time thereafter.

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3

How do I actually getmy grant funds?

Some recipients who have never had a grantfrom the Department or another federal agencymight expect to receive a check for the grantamount with the Grant Award Notification.However, the Department has established anindirect procedure for paying out grant fundsto recipients.

If you have not previously received a grantaward from the Department, you will receive apackage from the Department's FinancialPayments Group at about the same time thatyou receive the Grant Award Notification.This package contains information andinstructions to follow after receiving yoursigned Grant Award Notification so that yourorganization can establish an entity numberwith the Department in order to request fundsthrough the Education Department PaymentManagement System (EDPMS).

If you have received an ED grant before andhave already established an entity number, youdo not receive the financial informationpackage. Instead, the Grant AwardNotification will include an attachment thatgives the latest payment request information.

In either case, the Department generally makesadvance payment on grant awards to arecipient using one of two methods:1) Automated Clearing House/ElectronicFunds Transfer (ACH/EFT) or 2) FEDWIRE -Electronic Funds Transfer.

How long does it With the ACH/EFT method, funds will appeartake to get my grant in your bank account approximately two daysfunds? after you have sent a payment request. With

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How do I get fundsafter the first year ifmy organizationreceives a multi-yearaward?

the FEDWIRE method, approved payments areelectronically transferred the next day.

During the course of the first year or eachinterim year of a multi-year award, the staff ofthe program office that is responsible foradministering your particular grant reviewsdifferent kinds of information about theprogress that your project is making under theaward. This information is gathered primarilyfrom reports that you are required to send tothe Department. (You will find more detailsabout reporting requirements under grants inChapter 8.)

If the program office determines that yourproject has made substantial progress with thecurrent funding already received and ifCongress appropriates funds, the programoffice staff will recommend to the GrantsDivision that funding for your award becontinued into the next year. After receivingthis recommendation from the program office,the staff of the Grants Division will prepareanother Grant Award Notification that givesdetails of the time period and amount offunding for the next phase of your award.

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6 Doing It Right

Recipients often ask what is required for them to do their projects 'right.' In

fact, there is more than one answer to that question since a grant project isreally a combination of different efforts: performing the substantive activitiesrelated to the project's professional discipline or field of endeavor, managingthe personnel and the other administrative aspects of a project, learning andfollowing the various requirements of law and regulation that govern federallyfunded projects, and undertaking the whole project within the framework ofthe organization that has received the grant and is sponsoring the projectactivities. This chapter presents some of the most frequently asked questionsrecipients have about trying to do it all 'right.' As your project progresses,you will undoubtedly think of others.

What responsibilitiesdo I have under aDepartment ofEducationdiscretionary grantor cooperativeagreement?

You have the following major responsibilitieswhen undertaking a project funded by theDepartment of Education:

performing the work promised in theapplication;exercising proper stewardship of federalfunds;complying with all legal and regulatoryrequirements; andreporting all required information tothe Department.

In addition, each award for a discretionarygrant or cooperative agreement imposesspecific responsibilities on a recipient,depending on the program from which youreceive funding.

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What must I do if Ineed to change somepart of my projectfrom the originalapplication?

What can I do tohelp my request for achange get processedmore rapidly?

The first step is to determine whether or notthe planned change requires approval. Pleasenote that many changes do NOT require theprior approval of the grants officer. You areurged to read the book containing the EDGARregulations that comes with your awardpackage to determine whether or not this istrue for your case. If you determine that aplanned change does not require priorapproval, you can avoid having to prepareunnecessary paperwork to send to theDepartment. If, after reading the regulations,you are still not certain, call your grantsspecialist for technical assistance. Changes thatrequire prior approval are called administrativeactions and generally take from 15 to 30 daysto process.

It is the goal of the Grants Division to reducethe paperwork burden on recipients, includingthose related to administrative actions, to thefull extent allowable by regulation. However, ifprior approval is required, you need to send tothe Grants Division an original and one copy ofyour request. The Grants Division sends thecopy to the appropriate program officer for awritten recommendation for approval ordisapproval. The grants specialist then preparesa written recommendation and presents thedocuments to the grants officer for a finaldecision of approval or disapproval.

You can take a number of steps that greatlyadd to the speed with which we can processyour request for a change to a project. Mostof them seem to be minor, but multiplied overthousands of grants, such small items add up togreat gains in efficiency on the part of the

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Department, and help us do a better job foryou. For example:

Always use your PR/Award number. Alsocalled your 'grant number,' this numbergives the Grants Division a great deal ofinformation. We recommend you even putit on the outside of your envelopes, so thatin the event your grant is reassigned toanother grants specialist, yourcorrespondence can be properly redirectedbefore we even open the envelope. ThePR/Award number is the only quick andaccurate way we have to access yourofficial file or your records in our datasystem. Always have it handy, evenwhen leaving a phone message.

Always send an original and one copy.Both the Grants Division and the programoffice keep records of each action. Sinceour copiers stay very busy, we can serveyou much more quickly if you make thecopy before you send it.

Always check your computations inbudgets more than once. We recommendthat you ask others on your staff to helpproof the math portions of yourapplication, revised materials, or priorapproval requests. Computation errors areone of the biggest causes of delays inprocessing your requests.

Read carefully the attachments andenclosures that came with your GrantAward Notification. The attachments andenclosures sent with your Grant Award

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What are OMBCirculars? Do theyapply to my grantaward?

How do I make surethat I am complyingwith the regulationsthat apply to myaward?

Notification contain important informationthat can simplify administering your granton such topics as getting payment, sendingrequired reports, and following specialterms and conditions.

When in doubt, ask. If you are not sureabout something, do not hesitate tocontact your grants specialist. Grantsspecialists are here to give you technicalassistance and to help you understand grantregulations and the award documents.Their guidance can help you to make surethat your documents are complete the firsttime you send them in and to avoidsending unnecessary paperwork.

The Office of Management and Budget, in theExecutive Office of the President, issues OMBcirculars, documents that act as guidance forfederal departments and agencies on a varietyof topics. Some circulars establish federalpolicy on matters of grant administration. It isimportant for you to remember that OMBcirculars do not apply to Department ofEducation grant awards until the Departmentadopts them in regulations that specificallygovern the Department. [Information aboutobtaining OMB circulars is given in the section,'Other Information,' which begins on pageB-1 of this booklet.]

Carrying out your project in a way that isconsistent with the requirements of federalregulations is really a process that begins beforeyou even receive a Grant Award Notification.From the time that you are notified that yourapplication has been recommended for funding

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and is likely to receive a grant from theDepartment, we suggest that you make yourselfvery familiar with the program regulations.You can find these regulations in theapplication materials that the Departmentoriginally sent to you. As time passes, weencourage you to develop the same knowledgeof the administrative regulations found in thecopy of the EDGAR book mailed to you withyour Grant Award Notification. The table ofcontents at the beginning of each part of theseregulations helps you locate the area(s) ofinterest to you.

If you still have questions after reading throughthe regulations, call the grants specialist whosetelephone number appears on your GrantAward Notification under the line that reads'Education Grants Staff.' If that person is notavailable, you can talk with the grants officerwho signed your Grant Award Notification.

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7 Let's Talk

As the previous chapter implies, a big part of doing it 'right' is two-waycommunication between the Department and its recipients about recipients'activities throughout the life of a grant project. Naturally, recipients oftenwonder to whom in the Department they should be talking, how often, andunder what circumstances. This chapter describes the various staff in theDepartment whom recipients encounter during a grant project, their role inthe process of grant administration, and the place that departmentalmonitoring holds in your project.

What is thedifference betweenstaff members in aprogram office andthose in the GrantsDivision?

The program offices and the Grants Divisionwork cooperatively to administer theDepartment's programs. However, persons inthese offices have different roles in the grantsprocess.

Program officers are responsible for developingprogram regulations, application notices, andapplication packages; they oversee the reviewand ranking of applications sent to theDepartment. Program officers provide detailedrecommendations to the Grants Division ongrant applications and participate in anegotiation, as necessary. They also monitorfunded projects and make recommendations tothe Grants Division on requests from recipientsfor revisions to a project. (See monitoring inthe section, 'Glossary,' which begins on pageA-1 of this booklet.)

Grants officers have final authority for both theaward of grants and for the approval (ordisapproval) of changes to projects supportedby grants. They work on a daily basis with

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Does the programofficer or grantsofficer keep in touchwith me regularly?How often do I needto talk with themabout my project?

grants specialists, who report to them. Grantsspecialists are responsible for analyzingapplication budgets and negotiating grants withthose applicants recommended by the programofficer for funding. You must send all requestsfor revisions to a project funded by theDepartment to the 'Education Grants Staff'member whose name appears in Block 3 of theGrant Award Notification. This will usually bethe grants specialist assigned to your project.He or she consults with the program officerbefore making a recommendation to the grantsofficer for a final decision on your request forrevisions.

Should you receive a grant, take special noticeof the names of the program officer, the grantsofficer, and the grants specialist that appear onyour Grant Award Notification.

Receiving your Grant Award Notificationsymbolizes the beginning of a partnershipbetween your organization and the Departmentof Education. On-going dialogue is asignificant feature of that relationship.

Monitoring discretionary grants andcooperative agreements is the most importantaspect of the Department's participation insuch a partnership. The Department providesboth oversight and technical assistance torecipients through a continual process of reviewand evaluation of a recipient's project activities.

The Department's monitoring can take manyforms, some of which include:

regular phone calls;

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Do program officersor grants officersvisit my project?

letters between the Department andthe recipient;review of independent evaluators'reports of recipient progress;activity reports that the recipient sends;face-to-face meetings between EDemployees and recipient staff membersat professional meetings;'site' visits by ED staff members to arecipient's location.

The types and extent of monitoring vary byprogram and the type of recipient. Whateverthe case, the Department intends to providesome monitoring for all projects, so as toenhance two-way communication that furthersthe goal of better stewardship of federal funds.

You should feel free to contact theDepartment's program officers and/or grantsofficers and specialists about your project asoften as necessary in order to make substantialprogress in carrying out your project activities.The Department welcomes efforts from itsrecipients to initiate and sustaincommunication. ED staff members stand readyto answer your questions and help youunderstand federal requirements andprocedures better.

There is no way to predict exactly whichrecipients will receive a site visit from theDepartment. However, in view of the fact thatthe Department has limited resources for traveland makes well over 10,000 awards fordiscretionary grants and cooperativeagreements each fiscal year, the likelihood that

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any particular recipient will receive a site visitin any given year is very small.

From time to time there seems to be amisunderstanding among some recipients thatthe Department chooses only 'troubled'projects for site visits. Nothing could befurther from the truth! Ideally, theDepartment seeks to make site visits to arepresentative sampling of recipients andprojects across programs.

There are numerous reasons for a site visit to arecipient's location, most of them favorable.Recipients should view site visits as uniqueoccasions, which present an opportunity forstaff members from the Department andrecipient organizations to get to know oneanother better. They also permit the recipientto present information about the progress of itsproject in depth and detail.

What do I need to do Since the requirements of each program andto prepare for a site the procedures of each program office vary,visit? you should ask for guidance from the program

office and/or Grants Division staff membersassigned to your project about preparing for anannounced site visit.

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8 Wrapping It Up

Finishing project activities by the end of a budget period or the projectperiod is really only half of the story of a grant project. The other half istelling the sponsoring agency--in this case, the Department of Education--about it. You should put as much care into timely, accurate, andcomprehensive reporting of activities you undertake as you put into planningthose same activities when writing the application. Your reporting, in turn,becomes the basis for the Department's evaluation of the effectiveness of itsprograms as well as its own reporting to Congress, the General AccountingOffice, and the public. This chapter gives some frequently asked questionsabout the required reports and points you toward staff members in theDepartment who can help you complete them.

What happens afterthe project hasended?

What is my role inthis process? Whatresponsibilities do Ihave after the projecthas ended?

The Department begins steps to close out agrant officially after the expiration ortermination of grant support (i.e., usually afterthe end of the project period). Duringcloseout, the Department determines that allapplicable administrative actions as well as therequired work of a grant project have beencompleted and that all federal funds have beenproperly accounted for.

You are responsible for preparing two basictypes of reports for discretionary grants andcooperative agreements: financial reports andperformance reports. (Cooperative agreementsmight require additional items as well.) Theterms and conditions of all grants require thatyou send reports after the end of the projectperiod. In addition, discretionary grants orcooperative agreements of more than onebudget period require that you send reportsintermittently during the life of the project as

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What happens if Icannot send my finalreports by the duedates because I havenot finished the workof the project?

well. For all reports, be sure that you alwaysprovide complete and accurate information.

The Department must have all of your requiredreports in order to close out a grant.Therefore, you are responsible for sending tothe Department all financial and performancereports as well as any other documentsrequired as a condition of the grant. Interimfinancial or performance reports are dueaccording to the schedule of due dates shownin your Grant Award Notification and itsaccompanying materials. Final financial andperformance reports for all awards are duewithin 90 days after the end of the projectperiod (or the termination of the grant, if thatoccurs).

You can request an extension of the project,and you can do so up to 45 calendar daysbefore the end of the project period.However, we recommend that you notify yourgrants specialist of such a request sooner thanthat if at all possible. You must clearly justify arequest to extend a project period anddemonstrate that: a) the extension does notinvolve the obligation of additional funds; b)time is needed to carry out the activitiesalready approved; and c) the extension doesnot violate any statute or regulation. You mustsend the written request, with one copy, toyour grants specialist. The Department looksat each request on a case-by-case basis.

The Department can waive the 45-dayrequirement for written requests for a timeextension to a project if: a) you could nothave known of the need for an extension on or

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4 N?

What happens if Ihave completed thework of the projectbut cannot send myfinal reports by thedue date for someother valid reason?

How do I get helpcompleting myreports?

Where do I send myreports and howmany do I need tosend?

before the start of the 45-day time period; orb) you can show that failing to give a 45-daynotice was otherwise unavoidable.

The Department might extend the due date foryour final reports or other required documentsif you send a request in writing with a strongjustification for the need to do so.

Your program officer can give you guidance onthe required content and format for theperformance report(s) you are required tosend.

For help with the type of financial report thatthe Department requires from most recipients,the SF-272, you can ask for help from thepayment contact person in the FinancialPayments Group. The phone number of theFinancial Payments Group staff memberassigned to your state or territory is included inthe information sent with your Grant AwardNotification. For some grants, the Departmentrequires that the recipient also send anothertype of financial report, the SF-269. You candirect questions about the latter report to yourgrants specialist.

Keep in mind that the terms and conditions ofgrant awards require that you send to theDepartment different types of reports:performance reports and financial reports(discussed above) and audit reports (discussedin the next chapter). Refer to the attachments

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What happens if theDepartment does notreceive my reports?

Do I have to keepany records relatedto my grant projectafter the Departmentcloses out my grant?

and enclosures with your Grant AwardNotification to learn the address to which youmust send your reports (or other requireddocuments). Note also that different reportsgo to different places. As always, remember tosend an original and one copy of each reportor required document. Always write yourPR/Award number on all documents.

Your reports and other required documentsgive the two people who worked most closelywith your project, the program officer and thegrants specialist, the opportunity to learndirectly from you about your project's activitiesand achievements and your management offederal funds.

Not sending reports or other requireddocuments can place your organization in non-compliance with the terms and conditions ofthe grant award. Noncompliance statusjeopardizes your chance for future fundingfrom the Department. Therefore, it is criticalthat you send all your reports by the due datesto the proper persons.

Yes. Grant closeout affects neither therecipient's legal requirements for retaining allrecords of a grant project nor the rights of afederal agency to have access to those records.

Almost all ED programs fall under the recordretention provisions of the General EducationProvisions Act (GEPA), which require you tomaintain grant records for three years after thecompletion of the activities for which grantfunds were used (usually interpreted by the

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Department as three years after the enddate of the project period).

Your grants specialist can answer any questionsyou have about record retention.

4050

9 Just One More Thing

The project activities are finished, the Department has received all therequired reports, and the records of your project are safely stored away forthe next few years. That just about takes care of everything, right? Notquite.

During the life of a grant project, you will most likely be required to get anindependent audit of your project and its expenditures and to send a copy ofthe audit report to the Department for its review. In some instances theDepartment conducts its own audit of your grant project after the end of theproject period. This is one reason that it is important that you observe andfollow the record retention requirements discussed in the previous chapter.This chapter discusses a few things you should keep in mind with regard todepartmental audit requirements and procedures, especially in those(hopefully rare) instances where you might have to give some of the grantmoney back.

What are the auditrequirements relatedto my grant?

In all cases, it is crucial to keep in mind thatthe time to start planning for an audit isbefore the grant begins. One of the mostimportant contributions to wise management offederal funds is a well-established system offinancial management and control for grantfunds. In fact, 'audit readiness' is a natural by-product of the proper conduct of federal grantactivities, since accepting federal funds carrieswith it the Department's expectation that therecipient will exercise good stewardship ofpublic funds.

One way to insure that your systems areadequate to meet audit standards is to workclosely with the business office in your agencyor institution or with outside financial

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consultants before the start of the first budgetperiod. Doing so enables you to anticipate anyareas of fiscal accountability that might requireparticular attention (e.g., creating andmaintaining complete and accurate time andeffort records for the work of grant projectpersonnel).

The audit requirements of EDGAR depend onthe type of recipient and the total dollaramounts of awards received. States and localgovernments receiving between $25,000 and$100,000 in federal funds must have an auditdone annually, in accordance with OMBCircular A-128. Institutions of highereducation or nonprofit organizations receivingover $100,000 in federal awards are required,under OMB Circular A-133, to have an auditdone at least every two years.

It is important to remember there are twotypes of audits for discretionary grant projects.The first type is the one your organizationarranges to have done by independent auditorsin response to requirements of OMB CircularsA-128 or A-133, as discussed above. Thesecond type is an audit for fiscal and programcompliance done by the ED Office of InspectorGeneral (OIG). These occur less frequentlyand not every recipient receives one. The OIGis the area of the Department that reviews yourA-128 and A-133 audit reports. OIG auditsare most frequently triggered by serious auditfindings identified during an OIG review of theA-128 and A-133 audit reports.

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What happens in anOIG audit?

You must send copies of your audit reports tothe address given in the instructions thataccompany your Grant Award Notification.

The OIG audit follows several specific steps,which include an entrance conference, survey,fieldwork, exit conference, draft audit report,and final audit report. The entranceconference is held to explain the purpose ofthe audit, establish working arrangements,obtain copies of necessary documents fromyour organization, and answer any questionsyou may have.

During the survey phase, OIG auditors gatherfrom you general information on yourorganization. In the third phase, fieldwork,auditors study specific activities or operationsand examine pertinent documents, records,and procedures.

The exit conference takes place before the OIGissues its draft report. The exit conferencegives your organization an opportunity tocomment on OIG findings and provideadditional information before the draft report isissued.

The draft report presents the preliminary OIGfindings and recommendations. You will have30 days to respond to the findings in a draftreport. Your comments will be included as anattachment to the final report. The final reportgives the name of an official in the Departmentwho is responsible for resolving the issuesdiscussed in the report. Sometimes, the finalreport will ask you to offer comments on thatversion in 30 days as well.

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What happens ifcosts or activities aredetermined to beunallowable as aresult of my audit?Will I have to paymoney back?

Can I appeal theDepartment'sdecision that I mustrepay money?

Sometimes an audit reveals information aboutdeficiencies or weaknesses in activities carriedout under a grant. Whether they concernmonetary or non-monetary concerns, suchitems are called audit findings. Sometimes thisinformation is related to expenditures for itemsor services that the Department determines arenot allowed by ED (or other federal)regulations. If this happens, the Departmenttakes steps to recover the money from therecipient, starting with the audit resolutionprocess. The Department's Audit ResolutionSpecialist assigned to your audit conducts anobjective review of the auditor's findings andrecommendations. You may be asked toprovide further information in addition to yourinitial response to the audit.

The audit resolution process is designed both toprotect the Department's interests in ED-funded programs and activities and to be fair toits recipients. An authorized managementofficial in the Department writes a ProgramDetermination Letter (PDL), notifying you ofmanagement's decisions on the auditor'sfindings and recommendations. If there areaudit findings, the letter will indicate thecorrective action you are asked to take and/orthe amount you are asked to repay. Detailedinstructions regarding the method of repaymentaccompany repayment requests.

The Program Determination Letter will includeany information on appeal procedures thatmight be available to you and your opportunityto provide further documentation. You needto adhere to these procedures carefully,particularly with respect to the deadline forsubmitting an appeal.

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GlossaryAdministrative regulations. Regulations that implement (1) guidancefrom the Office of Management and Budget (OMB) contained in circularsthat apply to the administration of all federal grants and cooperativeagreements, (2) Presidential Executive Orders (where regulation isnecessary), and (3) legislation that affects all applicants for or recipients offederal grants and cooperative agreements; see also EDGAR (defined below).

Application Control Center. The area of the Department of Education [inthe Grants and Contracts Service (defined below)] that is officially authorizedto receive applications for discretionary grants and cooperative agreements.

Application notice. A notice published in the Federal Register (definedbelow) that invites applications for one or more discretionary grant orcooperative agreement competitions, gives basic program and fiscalinformation on each competition, informs potential applicants when andwhere they can obtain applications, and cites the deadline date (definedbelow), for a particular competition.

Application package. A package that contains the application notice forone or more programs and all the information and forms needed to apply fora discretionary grant or cooperative agreement.

Appropriations legislation. A law passed by the Congress to provide acertain level of funding for a grant program in a given year.

Assurances. A listing of a variety of requirements, found in differentfederal laws, regulations, and executive orders that applicants agree in writingto observe as a condition of receiving federal assistance.

Audit finding. A conclusion about a monetary or non-monetary matterrelated to an auditor's examination of an organization, program, activity, orfunction, which frequently identifies problems and provides recommendationsfor corrective action in order to prevent their future recurrence.

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Audit resolution process. The process by which the Departmentdetermines whether costs under a grant that have been identified in an auditreport as questioned or unsupported are actually allowable or unallowableand initiates action to have recipients return unallowable expenditures.

Audit Resolution Specialist. The Department staff member who reviewsaudit reports on recipients' projects and develops the proposedrecommendations to management for settling cases of expenditures notallowed under discretionary grants or cooperative agreements; theserecommendations become the basis for decisions issued in the ProgramDetermination Letter (defined below).

Authorizing legislation. A law passed by the Congress that establishes orcontinues a grant program.

Budget period. An interval of time into which a project period is dividedfor budgetary purposes, usually twelve months.

Catalog of Federal Domestic Assistance. Publication and databaseproduced by the General Services Administration that lists the domesticassistance programs of all federal agencies and gives information about aprogram's authorization, fiscal details, accomplishments, regulations,guidelines, eligibility requirements, information contacts, and application andaward process; also called the CFDA.

Certification. A statement, signed by an applicant or recipient as aprerequisite for receiving federal funds, that it 1) meets or will adhere tocertain conditions and/or 2) will undertake or not undertake certain actions.

CFDA number. Identifying number for a federal assistance program,composed of a unique two-digit prefix to identify the federal agency ('84'for the Department of Education), followed by a period and a unique three-digit code for each authorized program.

Closeout. The process during which the Department determines that therecipient has performed all required work of a discretionary grant orcooperative agreement and undertakes all necessary administrative actions tomake any final fiscal adjustments to a recipient's account.

A-256

Code of Federal Regulations (CFR). Compilation of all final regulationsissued by federal agencies and published annually by the National Archivesand Records Administration; divided into numbered 'Tit les'; Title 34contains the regulations of the Department of Education.

Competitive review process. The process used by the Department ofEducation to select discretionary grant and cooperative agreementapplications for funding, in which applications are scored by subject-areaexperts and the most highly scored applications are recommended forfunding.

Continuation grant. Additional funding awarded for budget periodsfollowing the initial budget period of a multi-year discretionary grant orcooperative agreement.

Cooperative agreement. A type of federal assistance; essentially, avariation on a discretionary grant (defined below), awarded by theDepartment when it anticipates having substantial involvement with therecipient during the performance of a funded project.

Deadline date. The date by which the Department must receive adiscretionary grant or cooperative agreement application for it to beconsidered for funding.

Discretionary grant. An award of financial assistance in the form ofmoney, or property in lieu of money, by the federal government to aneligible recipient, usually made on the basis of a competitive review process.

ED. The acronym for the U.S. Department of Education (i.e., EducationDepartment).

ED Board. An electronic bulletin board service (BBS) of the Department ofEducation that gives information on discretionary grant, cooperativeagreement, and contract opportunities at the Department.

EDGAR (Education Department General Administrative Regulations).Administrative regulations governing ED discretionary grant and cooperativeagreement programs found in Parts 74, 75, 76, 77, 79, 80, 81, 82, 85,

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and 86 of Title 34 of the Code of Federal Regulations (defined above); abook issued by the Department that contains a reprint of these regulations.

Employer identification number (EIN). The number the InternalRevenue Service assigns to every employer; used by the Department as thebasis for the entity number (defined below).

Entity number. The number the Department creates, using the employeridentification number (defined above), to identify a recipient (as distinctfrom the award itself) in its dealings with the Department; enables theDepartment to establish an account and to identify the correct recipient toreceive the funds awarded under a discretionary grant or cooperativeagreement.

Federal Register. Daily compilation of federal regulations and legal notices,presidential proclamations and executive orders, federal agency documentshaving general applicability and legal effect, documents required to bepublished by act of Congress, and other federal agency documents of publicinterest; prepared by the National Archives and Records Administration forpublic distribution by the Government Printing Office; publication of recordfor ED regulations.

Financial Payments Group (Financial Services). The administrative unitof the Department of Education that makes payments of federal funds torecipients of discretionary grants and cooperative agreements and receivesrecipients' completed SF-272 reports. (See Financial report, below.)

Financial report. A document the recipient sends to the Departmentshowing the amounts and/or types of expenditures made under an EDdiscretionary grant or cooperative agreement; usually made on a federalform, SF-272; for some grants, the financial report is also made on anotherfederal form, SF-269.

Formula grant. A grant that the Department is directed by Congress tomake to recipients, for which the amount is established by a formula basedon certain criteria (e.g., population) that are written into the legislation andprogram regulations; directly awarded and administered in the Department'sprogram offices (defined below).

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Funding priorities. Activities, identified by the Department in advance of adiscretionary grant or cooperative agreement competition, that applicants areasked to include in an application so as to receive preference in the reviewprocess; they include absolute priorities (the applicant must address themin order to be considered for funding), competitive priorities (theapplicant can choose whether or not to address them and the applicationmight receive additional points for doing so, depending how well theapplicant addresses the priority), and invitational priorities (the applicantis encouraged to address the stated priorities, but the application does notreceive extra points for doing so).

Grant application reviewer ('reviewer'). An individual who serves theDepartment by reviewing new discretionary grant and cooperative agreementapplications; also referred to as 'field reader' or 'peer reviewer.'

Grant Award Notification. Official document signed by the grants officerstating the amount and the terms and conditions of an award for adiscretionary grant or cooperative agreement.

Grant programs. For the purposes of this booklet, programs ofdiscretionary grants and/or cooperative agreements administered by theDepartment of Education.

Grants and Contracts Service (GCS). The organizational unit of theDepartment of Education that has authority for overseeing the Department'sassistance (grants) and procurement (contracts) processes; holdsresponsibility for the related functions of establishing indirect cost rates anddeveloping automated systems for processing grants and contracts.

Grants Division. The administrative unit of the Grants and ContractsService (defined above) responsible for negotiating, awarding, administering,and closing out all of the Department of Education's discretionary grants andcooperative agreements.

Grants officer. The only person in the Department of Education who hasthe authority to award its discretionary grants and cooperative agreementsand to establish or revise their terms and conditions.

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Grants specialist. The staff person in the Grants Division (defined above)who reports to the grants officer and who negotiates discretionary grants andcooperative agreements and handles the details of administering them on adaily basis.

Indirect costs. Costs of an organization incurred for common or jointobjectives, which cannot be readily and specifically identified with aparticular grant project or other institutional activity.

Monitoring. Activities undertaken by ED staff members to review andevaluate specific aspects of a recipient's activities under a discretionary grantor cooperative agreement; they include 1) measuring a recipient'sperformance, 2) assessing a recipient's adherence to applicable laws,regulations, and the terms and conditions of the award, 3) providingtechnical assistance to recipients, and 4) assessing whether a recipient hasmade substantial progress.

Negotiation. Preaward discussions conducted by the Grants Division toestablish the conditions and amount of a discretionary grant or cooperativeagreement; based on recommendations from the cognizant Principal Office, acost analysis of the applicant's budget, and a review of proposed activities.

Notice of proposed rulemaking. An announcement published in theFederal Register (defined above) of proposed new regulations ormodifications to existing regulations; the first stage in the process of creatingor modifying regulations.

Obligation. An entry made by a grants officer in the Department'sautomated accounting system that authorizes the Financial Payments Group(defined above) to make payments of federal grant funds to a recipient.

Office of the Chief Financial Officer. A major organizational unit in theDepartment that includes the Grants and Contracts Service and the GrantsDivision as well as the Financial Payments Group (defined above).

Office of Management and Budget (OMB) circulars. Administrativepolicy documents that give instruction to federal agencies on a variety of

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topics, including the administration of federal grants and cooperativeagreements.

Payment identification number (PIN). A number associated with arecipient's entity number (defined above), which enables the recipient todraw down cash payments authorized by a discretionary grant or cooperativeagreement award.

Performance report. A report of the specific activities the recipient of adiscretionary grant or cooperative agreement has performed during thebudget period or the project period.

Principal Office. For the purposes of this booklet, one of six organizationalunits of the Department responsible for administering programs that awarddiscretionary grants and cooperative agreements: Office of BilingualEducation and Minority Languages Affairs (OBEMLA); Office of EducationalResearch and Improvement (OERI); Office of Elementary and SecondaryEducation (OESE); Office of Postsecondary Education (OPE); Office ofSpecial Education and Rehabilitative Services (OSERS); and Office ofVocational and Adult Education (OVAE).

Principal Officer. The Department official who is head of one of the sixPrincipal Offices listed above; holds the rank of assistant secretary or itsequivalent.

Program Determination Letter (PDL). An official written notice from anauthorized Department of Education management official to an auditedrecipient that sets forth the Department's decision on findings in an auditreport, including all necessary actions and repayment of funds for which therecipient is responsible.

Program office. A sub-unit of a Principal Office that conducts the dailywork of administering ED discretionary grant and cooperative agreementprograms, including the review and ranking of applications.

Program officer. Program office staff person responsible for 1) developingprogram regulations (defined below), application notices, and applicationPackages (defined above), 2) overseeing the review and ranking of

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applications submitted under their programs, 3) providing detailed fundingrecommendations to the Grants Division for applications, 4) participating innegotiations, as necessary, 5) providing technical assistance to applicants andrecipients, 6) monitoring funded projects, and 7) making recommendationsto the Grants Division about recipients' requests for revisions to projectactivities and budgets.

Program regulations. Regulations that implement legislation passed byCongress to authorize a specific grant program; they include applicant andparticipant eligibility criteria, nature of activities funded, allowability ofcertain costs, selection criteria under which applications will be selected forfunding, and other relevant information.

Program staff. Individuals who report to program officers and handle day-to-day program office responsibilities as assigned by the program officer.

Project period. The total amount of time (sometimes several years) duringwhich the Department authorizes a recipient to complete the approved workof the project described in the application; project periods of more than oneyear are divided into budget periods (defined above).

PR/Award number. The identifying number for a discretionary grant orcooperative agreement award, composed of seven parts (e.g.,H029A31234-93C):

1. Principal Office designator (H)2. CFDA numeric suffix of the program (029)3. Alphabetic sub-program identifier (A)4. Last digit of the fiscal year

of the competition (3)5. Unique application identifier (1234)6. Fiscal year of the funding (93)7. Sequential order of the most recent

funding action in a Fiscal Year (C)

The first five parts remain the same throughout the life of the project periodwhile the last two parts change by budget period.

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Regulations. For purposes of this booklet, federal rules of generalapplicability that are authorized by federal laws or other federal authority andcontained in the Code of Federal Regulations (defined above).

Slate. The official list of recommended applicants and award amounts in adiscretionary grant or cooperative agreement competition.

Standard Form 424 or SF-424. A standard grant application form,sometimes referred to as the application 'cover page,' used by theDepartment of Education and other federal agencies.

Student financial assistance. ED funding in support of undergraduate orgraduate students attending colleges, universities, and other postsecondaryinstitutions that meet the Department's eligibility requirements; provided byStudent Financial Assistance Programs in the Department's Office ofPostsecondary Education and administered separately from the Department'sdiscretionary grant and cooperative agreement programs; sometimes referredto as 'student aid.'

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Other Information

1. U.S. Department of Education

General Information

To get more information about any aspect of the Department, itsstructure, or its program, or to get answers to questions not answeredby this booklet, contact:

Goals 2000(800) USA-LEARN

U.S. Department of Education Guide to Programs

You can ask for a copy of the Guide in one of the following ways:

By telephone (voice): (202) 708-8773

By mail:

By modem:

ED Board

U.S. Department of EducationManagement Support DivisionGCSRoom 3616, ROBWashington, DC 20202-4653

The text of the Guide can be downloadedfrom ED Board, one of the Department'scomputer bulletin boards. (Seeinformation below for guidance in usingED Board services.)

(This is the computer bulletin board that lists opportunities for gettinggrant, cooperative agreement, and contract funding from theDepartment of Education. It contains such items as Federal Register

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notices announcing competitions and the Combined ApplicationNotice. Information on ED Board can be downloaded.)

Dial-in number: (202) 260-9950Modem speed: 14,400 bpsSettings: 8 data bits/1 stop bit/no parityTerminal emulation: VT 100Line feeds: recommended

(NOTE: ED Board can also be accessed via the Fed World bulletinboard on (703) 321-8020 or via the INTERNET at:

gopher://gcs.ed.govhttp://gcs.ed.gov

INTERNET

Those with access to the INTERNET can tap a rich collection ofeducation-related information at the U.S. Department of Education'sOERI Gopher/FTP/World Wide Web site. The material at the siteconcentrates on statistical information and educational research andimprovement and contains such items as research findings andsyntheses, full-text publications, directories of effective programs, andother similar data. You have the following options for access:

ED/OERI WWW server: Point your WWW client software to ouruniform resource locator (URL)

http://www.ed.gov

ED/OERI Gopher server: Point your Gopher client software to

gopher.ed.gov

All other Gophers: Select

North America > USA >General >

U.S. Department of Education

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FTP: ftp.ed.govlog on anonymous

(same material available on Gopher server)

(NOTE: The Department does not offer public access Gopheror WWW clients. You cannot access the server through Telnetsessions with the Department's site. You must either have anappropriate Gopher or WWW client, such as NCSA Mosaic orLynx, at your site or be able to telnet to a public access clientelsewhere.)

You can address suggestions or questions about the contents of theGopher, FTP, and WWW servers to one of the following e-mailaddresses:

inetmgr@inet.ed.govgopheradm@inet.ed.govwwwadmin@inet.ed.gov

2. Catalog of Federal Domestic Assistance (CFDA)

The Catalog of Federal Domestic Assistance gives comprehensiveinformation on grants and other forms of assistance available fromprograms across the whole federal government. In addition, it provides awealth of information on such topics as the organizational structure offederal agencies and grant proposal writing. The catalog is sent to anumber of distribution points, including U.S. Government DepositoryLibraries in each state, Federal Executive Boards in major metropolitanareas, and offices of state and local governments. It is often available inthe reference sections of major libraries as well. You can also purchase asubscription directly from the Government Printing Office. For furtherinformation, please contact:

Superintendent of DocumentsAttn: New OrdersBox 371954Pittsburgh, PA 15250-7954

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or any of the U.S. Government Bookstores located in major citiesthroughout the nation (see 9., below).

Data on catalog programs can also be searched through the FederalAssistance Programs Retrieval System (FAPRS), a computerized question-answer system designed to provide rapid access to information in thecatalog via key-word and criteria searches. States have designated accesspoints where you may request a search of FAPRS to be made. Catalogdata may also be purchased on floppy diskettes (or magnetic tape) foruse at local sites. For further information on FAPRS, designated accesspoints, or purchasing the catalog in data format, please contact:

Federal Domestic Assistance Catalog Staff(WKU)

General Services AdministrationGround Floor, Reporters Building300 7th Street, SWWashington, DC 20407Telephone: (202) 708-5126Toll-Free Answering Service: 1-800-669-8331

3. Federal Register

The Federal Register is published daily, Monday through Friday, andprovides a uniform system for making available to the public regulationsand legal notices issued by federal agencies. The Government PrintingOffice distributes paper, 24x microfiche, and online versions to U.S.Government Depository Libraries (see 8., below). It is often available inthe reference sections of other major libraries as well. You can alsopurchase your own paper or microfiche subscription. For furtherinformation, contact:

Superintendent of DocumentsAttn: New OrdersBox 371954Pittsburgh, PA 15250-7954

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or any of the U.S. Government Bookstores located in major citiesthroughout the nation (see below).

Telephone orders can be made with a credit card by dialing:

(202) 512-1800 (voice)(202) 512-2250 (fax)(202) 512-2265 (TDD)

The Federal Register is also available as an online database. Public accessis available in the following ways:

Telnet to swais.access.gpo.gov, login as guest (no passwordrequired)Use a modem to dial (202) 512-1661, type swais, login as guest (nopassword required)Reach the database via the World Wide Web at the URL:

http://www.access.gpo.gov/su_docs/

Dial (202) 512-1530 (voice) for information and assistance withonline services

Other questions about the Federal Register can be directed to customerservice on (202) 523-5227.

4. Code of Federal Regulations

The Government Printing Office distributes the Code of FederalRegulations to each U.S. Government Depository Library (see 8.,below). The Code is often available in the reference sections of majorlibraries as well. You can also purchase volumes directly from theGovernment Printing Office. For further information please contact:

Superintendent of DocumentsAttn: New OrdersBox 371954Pittsburgh, PA 15250-7954

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or any of the U.S. Government Bookstores located in major citiesthroughout the nation (see 9., below).

Telephone orders can be made with a credit card by dialing:

(202) 512-1800 (voice)(202) 512-2250 (fax)(202) 512-2265 (TDD)

5. Federal Legislation

You can obtain copies of pending and enacted federal legislation bycontacting the Senate or House of Representatives at the followingnumbers:

Senate Document Room: (202) 224-7701House Document Room: (202) 225-3456

(NOTE: You must know the bill or law number in order toask for copies of legislation.)

For further information about ordering other congressional documents,contact the Government Printing Office on (202) 512-1800.

6. Education Department General Administrative Regulations(EDGAR)

EDGAR is composed of Parts 74-86 of Title 34 of the Code of FederalRegulations (see 4., above). Since it is designed primarily for the benefitof recipients of discretionary grants and cooperative agreements, theDepartment provides copies, as a matter of practice, only to those whohave already received an award. If you are a recipient who did notreceive a copy with your award package, you may ask for one bycontacting the grants specialist named in block 3 of your Grant AwardNotification. An electronic version of EDGAR can be downloaded fromthe ED Board (see 1., above).

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7. Office of Management and Budget (OMB) Circulars

To order OMB circulars by telephone, call (202) 395-7332. You cansend written requests to:

Office of Management and BudgetEOP PublicationsRoom 2200, NEOB725 17th Street, NWWashington, DC 20503

You must know the number of the circular that you wish to receive.

8. U.S. Government Depository Libraries

U.S. Government Depository Libraries are found in each state and act asofficial repositories for federal documents, such as some of thosementioned in this booklet. To learn the location of the libraries in yourstate, you can purchase a copy of the booklet, A Directory of U.S.Government Depository Libraries, from one of the regional U.S.Government Bookstores (see 9., below). Or, you can call:

(202) 512-1119 (voice)(202) 512-1432 (fax)

Those with INTERNET access can send a message to:

inspect@access.digex.net

9. U.S. Government Bookstores

In addition to buying publications directly from the Government PrintingOffice, you can find them at any of the 24 regional U.S. GovernmentBookstores throughout the nation. Bookstores are located in thefollowing cities:

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Atlanta, GA Dallas, TX Laurel, MD Portland, ORBirmingham, AL Denver, CO Los Angeles, CA Pueblo, COBoston, MA Detroit, MI Milwaukee, WI San Francisco, CAChicago, IL Houston, TX New York, NY Seattle, WACleveland, OH Jacksonville, FL Philadelphia, PA Washington, DCColumbus, OH Kansas City, MO Pittsburgh, PA

Please call directory assistance to get the most recent phone numbers forany of the locations.

10. Federal Information Center

The Federal Information Center provides a wealth of information aboutthe operations and offerings of the federal government, includingtelephone contact numbers that you can dial to get grant-relatedinformation from other Federal departments and agencies. You cancontact the Federal Information Center between 9:00 a.m. and8:00 p.m. (eastern time) at:

1-800-347-1997

11. Miscellaneous sources of information

National Grants Management Association (NGMA) is a privatemembership organization of representatives of federal and stategrantor entities, non-governmental organizations, college anduniversity officials, and other persons responsible for administeringassistance programs. The organization provides monthly andannual training conferences in the Washington, DC area andpublishes a semi-annual journal and a quarterly newsletter.Membership is available by paying annual dues. For furtherinformation, contact:

NGMA1414 Prince StreetSuite 375Alexandria, VA 22314(703) 519-1712

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The Foundation Center

The Foundation Center provides information about non-federalsources of funding. In addition to its publications and extensivecollection of materials at its several locations in the U.S., theCenter also offers an Associates Program and a CooperatingCollections Program at numerous sites throughout the nation. Youcan obtain more information by contacting the Center'sheadquarters at:

The Foundation Center79 Fifth Avenue, Dept. 1GNew York, NY 10003-3076(212) 620-4230

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U.S. DEPARTMENT OF EDUCATIONWASHINGTON, D.C. 20202

GRANT AWARD NOTIFICATIONGRANTS AND CONTRACTS

SERVICE

RECIPIENT NAME AWARD INFORMATION

I OREGON SCHOOL DISTRICT NO. 1 4 PR/AWARD NUMBERACTION NUMBER

S277A5017701

P. O. BOX 3107 ACTION TYPE NEWPORTLAND, OR 97208 AWARD TYPE DISCRETIONARY

AWARD PERIODSPROJECT TITLE

5 BUDGET PERIOD 02/01/95 - 07/31/96

2 PORTLAND COALITION FOR SAFE SCHOOLS PROJECT PERIOD 02/01/95 - 07/31/96

AUTHORIZED FUNDING

PROJECT STAFF 6THIS ACTION 1,196,339

BUDGET PERIOD 1,196,339

3 RECIPIENT PROJECT DIRECTOR PROJECT PERIOD 1,196,339

MAURICE CABA 503-331-3220

EDUCATION PROGRAM STAFF

JOHN MATHEWS 202-260-3657 ADMINISTRATIVE INFORMATION

EDUCATION GRANTS STAFF 7 PAYMENT METHOD ED PMSENTITY NUMBER 1-936000830-A3

STEPHEN RUE 202-708-7646 REGULATIONS EDGAR, AS APPLICABLE

ATTACHMENTS ABCS

LEGISLATIVE 8 FISCAL DATA

AUTHORITY: SAFE SCHOOLS ACT OF 19948 PROGRAM TITLE: DRUG FREE SCHOOLS 8 COMMUNITY - SAFE SCHOOLS ACT CFDA 84.277A

APPROPRIATION FY CAN OBJECT CLASS AMOUNT91 4/51000 95 E004624 4115 1,196,339

TERMS AND CONDITIONS OF AWARD

THE FOLLOWING ITEMS ARE INCORPORATED IN THE GRANT AGREEMENT:1) THE RECIPIENT'S APPLICATION (BLOCK 2),2) THE APPLICABLE EDUCATION DEPARTMENT REGULATIONS (BLOCK 7).

OTHER INFORMATION AFFECTING THIS ACTION IS PROVIDED IN THE ATTACHMENTS SHOWN IN BLOCK 7.

0/ //QUErAULKC7TYL R

Ver. 2 GRANTS OFFICER DATE

ED - GCS 007 (11M8) PLEASE SEE OTHER SIDE FOR MORE INFORMATION

c-I 73 BEST COPY AVAILABLE

EXPLANATION OF BLOCKS ON THE GRANT AWARD NOTIFICATION

FOR DISCRETIONARY, FORMULA, AND BLOCK GRANTS(See Block 4 of the Notification)

1. RECIPIENT NAME - Legal name of the recipient, name of theprimary organizational unit that will undertake the funded activ-ity, and the complete address of the recipient. The recipientis commonly known as the 'grantee.'

2. PROJECT TITLE - A brief description of the project that in-cludes the Catalog of Federal Domestic Assistance (CFDA) titleand/or the project title as shown on the grant application form,the date(s) of the application, and any negotiated amendments.

*3. PROJECT STAFF - This block contains the names andtelephone numbers of the U.S. Department of Education andrecipient staff who are responsible for project direction andoversight.

'RECIPIENT PROJECT DIRECTOR - The recipient staffperson responsible for administering the project. This per-son represents the recipient to the U.S. Department ofEducation.

EDUCATION PROGRAM STAFF - The U.S. Departmentof Education staff person responsible for the program-matic concerns of the Department.

EDUCATION GRANTS STAFF - The U.S. Department ofEducation staff person responsible for the administrativeand business-management concerns of the Department.

4. AWARD INFORMATION - Unique items of informationthat identify this notification.

PR/AWARD NUMBER - A unique, identifying numberassigned by the Department to each application. Onfunded applications, this is commonly known as the 'grantnumber.'

ACTION NUMBER - A numeral that represents thecumulative number of steps taken by the Department todate to establish or modify the award through fiscal oradministrative means. Action number '01' will always be'NEW AWARD.'

ACTION TYPE - The nature of this notification (e.g., NEWAWARD, CONTINUATION, REVISION, ADMINISTRA-TIVE).

AWARD TYPE - The particular assistance category inwhich funding for this award is provided, i.e., DISCRE-TIONARY, FORMULA, or BLOCK.

5. AWARD PERIODS - Project activities and funding are ap-proved with respect to two different time periods, describedbelow:

BUDGET PERIOD - A specific portion of time for whichFederal funds are being provided from a particular fiscalyear to fund a recipient's approved budget. The start andend dates of the budget period are shown.

PROJECT PERIOD - The complete length of time for ap-proved activities, from the start date of the first budgetperiod to the projected end date cf the final budget period.A project period may contain one or more budget periods.

6. AUTHORIZED FUNDING - The dollar figures in this block referto the Federal funds provided to a recipient during the awardperiods.

THIS ACTION - The amount of funds obligated (added)or de-obligated (subtracted) by this notification.

CARRY-OVER - The amount of funds, remaining from theprevious budget period, that are authorized by the GrantsOfficer for use in the current budget period. This item doesnot appear on all notifications.

*BUDGET PERIOD - The total amount of funds of all obliga-tions during the stated budget period, plus any authoriz-ed carry-over.

PROJECT PERIOD - The amount of funds obligated fromthe start date of the first budget period to this date. Thisamount does not include carry-over.

RECIPIENT COST-SHARE The funds, expressed as apercentage, that the recipient is required to contributeto the project, as defined by the program legislation orregulations and/or the terms and conditions of the award.

This item differs or does not appear on formula and block grants.

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7. ADMINISTRATIVE INFORMATION - This information is pro-vided to assist the recipient in completing the approved activitiesand managing the project in accordance with U.S. Departmentof Education procedures and regulations.

PAYMENT METHOD - The means by which Federalfunds are transferred to a recipient's account. Most grantsare paid through the U.S. Department of Education Pay-ment Management System (EDPMS).

ENTITY NUMBER - A unique, identifying number that theDepartment assigns to each recipient for payment pur-poses. The number is based on the recipient's InternalRevenue Service tax identification number.

REGULATIONS - The parts of the Education DepartmentGeneral Administrative Regulations (EDGAR) and specificprogram regulations that govern the award and ad-ministration of this grant.

*ATTACHMENTS - Additional sections of the Grant AwardNotification that discuss payment and reporting re-quirements, explain Department procedures, and addspecial terms and conditions in addition to those establish-ed in Block 9 of the award. Any attachments provided witha notification continue in effect through the project perioduntil modified or rescinded by the Grants Officer.

B. LEGISLATIVE AND FISCAL DATA - This block gives the nameof the authorizing legislation for this grant, the CFDA title ofthe program through which funding is provided, and U.S.Department of Education fiscal information.

APPROPRIATION, FY, CAN, OBJECT CLASS - Thefiscal information recorded by the U.S. Department ofEducation accounting system to track obligations byaward.

AMOUNT - The amount of funds provided from a par-ticular appropriation and common accounting number(CAN). Some notifications authorize more than oneamount from separate appropriations and/or CANs. Thetotal of all amounts in this block equals the amountshown on the line, 'THIS ACTION' (see 'AUTHORIZEDFUNDING' above (Number 6)).

9. TERMS AND CONDITIONS OF AWARD - Requirements of theaward that are binding on the recipient.

'GRANTS OFFICER - The U.S. Department of Educationofficial authorized to award Federal funds to the recipient,establish or change the terms and conditions of the award,and authorize modifications to the award.

FOR FORMULA AND BLOCK GRANTS ONLY:(See also Numbers 1, 4, 5, & 8 above)

2. PROJECT DESCRIPTION - A brief statement that identifies thedate of the application, the Catalog of Federal DomesticAssistance (CFDA) title, and any amendments.

3. EDUCATION STAFF - The U.S. Department of Education staffpersons to be contacted for programmatic and paymentquestions.

6. AUTHORIZED FUNDING

CURRENT AWARD AMOUNT - The amount of funds thatare obligated (added) or de-obligated (subtracted) by thisaction.

PREVIOUS CUMULATIVE AMOUNT - The total amountof funds awarded under the grant before this action.

CUMULATIVE AMOUNT - The total amount of fundsawarded under the grant, this action included.

7. STATE APPLICATION IDENTIFIER (SAI) NUMBER - A twelve-character number assigned by a state clearinghouse to applica-tions that require state review or that are covered by ExecutiveOrder 12372.

9. TERMS AND CONDITIONS OF AWARD

AUTHORIZED OFFICIAL - The U.S. Department of Ed-ucation staff person authorized to award Federal funds tothe recipient, to establish or change the terms and condi-tions of the award, and to authorize modifications to theaward.

74 BEST COPY AVAILABLE

AFTERWORD

We hope that you have found the information in thisbooklet to be helpful. We welcome your comments andsuggestions for future editions. Please send them to:

DirectorGrants Division, GCSU.S. Department of EducationWashington, D.C. 20202-4700

*U.S. Government Printing Office: 1996 - 411-857/5041775

U.S. Department of EducationWashington, D.C.

BEST COPY AVAILAB

o

(9/92)

U.S. DEPARTMENT OF EDUCATIONOffice of Educational Research and Improvement (OERI)

Educational Resources information Center (ERIC)

NOTICE

REPRODUCTION BASIS

E'4 a.:P 1 ,P.9.2-.

ERIC

This document is covered by a signed "Reproduction Release(Blanket)" form (on file within the ERIC system), encompassing allor classes of documents from its source organization and, therefore,does not require a "Specific Document" Release form.

This document is Federally-funded, or carries its own permission toreproduce, or is otherwise in the public domain and, therefore, maybe reproduced by ERIC without a signed Reproduction Releaseform (either "Specific Document" or "Blanket").