The New Jersey Department of Education Presents: Grants Management Training for FY02 Grant Recipients

Objectives To familiarize grant recipients with the Grant Recipients Manual for Discretionary Grants. To provide practical guidance in effective and efficient grant management. To help grant recipients operate programs that are free from audit exceptions.

Going for the Grant Your application is received by the due date and time. Your application is reviewed and you are notified that you are eligible to receive an award. You make required pre-award revisions. You receive an award. NOW WHAT?

A Look at a Year in the Life... of a Project Director

Before the Program Start Date SETTING UP

What should I do to prepare? Review your responsibilities as a grantee.

...and what else should I do? Obtain and review all grant-related documents carefully, especially: –the grant agreement –the final approved application –Attachments, A, B & C

What grant agreement? Grant Agreement: the five-page legal document signed by your CSA/CEO and the NJDOE.

Where do I find these documents? Get a copy of your agencys grant agreement, with the final approved application, from your CSA/CEO.

What are my timelines for spending grant funds? The award period (agreement start date to end date) is the spending authorization period. COMMON AUDIT FINDING ALERT

How can I prepare for the start of my grant? Hire new grant staff. Set staff assignments. Set up files and logs. Get requisitions ready. Meet with your subgrantees/partners. COMMON AUDIT FINDING ALERT

What do I keep in a grant file? Notice of Grant Opportunity document Executed grant agreement Attachments A, B, and sometimes C Final approved grant application

What else do I keep in a grant file? Copies of all submitted reports Grant-related correspondence Activity-related documentation Grant purchasing documentation COMMON AUDIT FINDING ALERT

Where can I find other useful resources? –NJDOE website –Source for OMB Circulars –Source for full text of EDGAR –Source for federal regulations, program requirements, and public law

Do I need formal agreements with my subgrant partners? YES. –You must have well-constructed subgrant articulation agreements in place to meet audit requirements. COMMON AUDIT FINDING ALERT

Who do I contact when I have a question about my grant? When you have a question about the implementation of your project, contact your program officer at the NJDOE.

Where do I send official grant documents? Send to the Application Control Center (ACC) all documents necessary to meet grant requirements (e.g., interim and final program and fiscal reports, agreement modification requests, etc.).

How do I communicate with the DOE? Include the following information on all correspondence to the department: –NGO# and title –Grantee name & county/LEA code –Project directors name and phone/fax # –Relevant agreement information

How do I communicate with the DOE? Where applicable, also include: –Program report # and report period –Fiscal report # and report period –Agreement modification details

Time Out! Questions anyone?

First Quarter (months 1-3) STARTING UP

May I spend money now? As of the program start date of your agreement, you may begin to obligate approved expenditures.

How will I get reimbursed for expenditures? Standard Payment Schedule: –Where applicable, 100% of approved equipment amount is issued in the first payment –5% of the balance is deducted and held by the DOE –Remaining amount is divided into equal monthly payments

Who owns grant-funded equipment? You do...unless otherwise stated in the NGO. (see Attachment C)

Who maintains inventory of equipment? All grantees are required to maintain a property management system. –minimum identifying information, (per EDGAR) –equipment inventory tags –equipment inventory forms

Must I use equipment only for grant activities? Generally speaking, YES. –Any equipment acquired with grant funds during the grant period must be used primarily to support the scope of work in the final approved grant application.

What reports are required for the 1st quarter? Program Activity Plan Report Expenditure Report (page 5 of the grant agreement)

When are reports due? Page 2 of your grant agreement shows the due dates for interim and final program and fiscal reports.

How do I complete program reports? On the Program Activity Plan form, for each activity completed, fill in the appropriate triangle for the quarter. For each activity not completed, provide a narrative explanation and indicate when the activity will be completed. See the Manual for complete instructions.

How do I complete fiscal reports? Complete all required information on the Expenditure Report form, which is page 5 of your grant agreement. See the Manual for complete instructions.

What identifying information should I include on my reports? NGO# and Title Grantee Name and County/LEA Code Agreement# and Submission Date Project Directors Name & Phone #, Fax # Program Report # and Report Period Fiscal Report # and Report Period Use the Report Transmittal Page sent with your GA.

Where do I send reports? Send the original and one (1) copy of each report to: Application Control Center New Jersey State Department of Education 100 River View Executive Plaza P.O. Box 500 Trenton, New Jersey

What does the DOE do with reports? Program reports are reviewed to determine the extent of progress in meeting the goals and objectives of the approved Program Activity Plan. Fiscal reports are reviewed to determine the extent of adherence to the approved budget.

Time Out! Questions anyone?

Second Quarter (months 4-6) FINE TUNING

What reports are required for the 2nd quarter? Program Activity Plan Report Expenditure Report Interim Equipment Inventory Report Interim Non-Employee Compensation Report

What if I have a grant under a multi- year program? Then, add the following reports, which compose the Mid-Agreement Fiscal Performance Review: –Interim Subgrant Report –Interim Consultant Report

How do I complete interim reports? See the Manual for instructions on completing interim reports.

When must I write to get approval to change my grant? Prior written DOE approval to change a grant agreement is required when the grantee proposes: –Changes to the approved scope of work –Transfer of funds to an unbudgeted line

When else? When the grantee proposes: –Transfers of funds to/from the indirect costs line. –When increasing/decreasing the total contract amount. –Any additions, deletions or substitutions to the approved equipment purchases –A change in the contract time frame –Changes to approved subgrants

And? When the grantee proposes: –Costs requiring prior approval pursuant to the Federal Cost Principles –Budget transfers, the cumulative total of which equals or exceeds 10 percent of the total agreement amount, or $10,000, whichever is less COMMON AUDIT FINDING ALERT

Can my subgrantees change their approved budgets and activities? Any changes proposed by a subgrantee must first be reviewed by you, the lead agency. If necessary, the proposed changes must be sent to the NJDOE for approval.

What should be included in a grant agreement modification request? A well-constructed modification request identifies: –A compelling programmatic justification and rationale –The impact on the program –What is changing

What are some common problems with modification requests? Lack of detail regarding the nature and substance of the request Mathematical errors Incorrect starting budget used

What are some other common problems? Submission after 90-day deadline Violations of NGO guidelines Lack of response to DOE requests for additional information or clarification

What identifying information should I include on my request? NGO # and Title Grantee Name and County/LEA Code Agreement# and Submission Date Project Directors Name & Phone #, Fax # Modification Details

Where do I send my modification request? Application Control Center New Jersey State Department of Education 100 River View Executive Plaza P.O. Box 500 Trenton, New Jersey

What happens to my request once it has been submitted? Staff review the request for completeness. –Incomplete requests are returned to the grantee; complete requests are forwarded to the program officer for review. The program officer makes a recommendation either to proceed with the request or to deny the request. The ACC notifies the grantee, in writing, of the DOEs decision.

When may I implement approved changes? Changes that require NJDOE approval may be implemented only after receipt by the grantee of written department approval.

Time Out! Questions anyone?

Third Quarter (months 7-9) CRUISING

What reports are required for the 3rd quarter? Program Activity Plan Report Expenditure Report

May I submit another agreement modification request? YES, but remember, you must submit any additional requests as soon as the need arises and as far in advance of the 90-day deadline as possible.

Do I base my second request on my original approved budget? NO. Be certain that you base your subsequent request(s) on the latest approved agreement budget.

Will my program be monitored on site? Multi-year programs: monitored to certify that a grantee is eligible to continue into the next year of funding. Single-year programs: all grantees are subject to monitoring.

What happens during monitoring? The program officer: –meets with staff –observes the grantees program in action –reviews program and fiscal records –may visit any subgrantee partner –prepares a written report of findings –verifies equipment, if applicable –checks expenditure documentation

What if I am not monitored on site? All grantees are subject to desk monitoring whether or not they are monitored on-site.

Fourth Quarter (months 10-12) WINDING DOWN & WRAPPING UP

What should I be doing now at this stage of the grant? Assess your progress toward: –Achieving program goals and objectives –Carrying out approved activities –Expending funds in conformance with the approved budget

What reports are required for the 4th quarter? Final Program Activity Plan Report Final Expenditure Report Final Equipment Inventory Form Final Non-Employee Compensation Form

How do I complete final reports? See the Manual for instructions on completing interim reports. COMMON AUDIT FINDING ALERT

How do I close out my agreement? Prepare and submit the final program and fiscal reports to the DOE within 60 days after the end date of the agreement. Include any deliverables specified in the NGO.

Can costs be disallowed by the DOE? YES. –DOE staff will note disallowed costs and adjust the final expenditure amount accordingly. DOE disallows any expenditures that violate the terms and conditions of the contract. COMMON AUDIT FINDING ALERT

When do I get final payment? The final payment (5 percent withholding) will be made after the DOE receives and approves the final program and fiscal reports. No final payments will be made in the absence of required reports.

Do I send a check if there are unspent grant funds? Where applicable, the DOE will send a refund request to the grantee. Do not send a refund check with your final reports.

How long do I keep grant records? You must keep all grant records for three years from the date that the DOE approves your final program and fiscal reports.

Will I be audited? Recipients of federal and/or state funds are required to have an annual audit performed. See the states policy regarding audits of grant recipients in the Manual.

How can I safeguard my grant from audit findings? Read the DOEs Grant Recipients Manual for Discretionary Grant Programs (see the list of Common Audit Findings) Read your agreement documents, including Attachments A, B, and sometimes C.

Time Out! Questions anyone?

A Project Directors Year in Review Setting Up 1st Quarter - Starting Up 2nd Quarter - Fine Tuning 3rd Quarter - Cruising 4th Quarter - Winding Down & Wrapping Up

Special Considerations Matching Funds Program Income Non-Public Schools

What are matching funds? Local resources used to support a discretionary grant program (NON- FEDERAL SOURCES) Expended during the grant period for costs directly supporting the overall program Meet all standards for allowable costs

What qualifies as a match? Matching requirements, where they exist, may be satisfied through the following: –Cash match, –In-kind contributions, –Some combination of the above.

Can my agency generate income through my grant? Generally speaking, NO. Program income is the gross income earned by the grantee that is directly generated by a grant-supported activity or earned as a result of the grant.

May I spend program income? YES. Federal regulations require program income to be handled in one of 3 ways: –Deduction method –Additional costs method –Cost-sharing or matching

Do I need to keep records on program income? YES. –Maintain separate records for program income expenditures. –Do not co-mingle program income with grant funds or other funds. –Keep program income expenditure records for 3 years after the end date of your grant.

Non-Public Schools Check the NGO for your grant program for program-specific requirements regarding non-public schools Remember that subgranting with non-public schools is not allowable.

Last Chance! Final questions anyone?