1 Expanded Authorities & Financial Monitoring

2 Greater flexibility for managing ED Discretionary Grants The “Expanded Authorities” Amendments Amendments

3 GOALS : “Expanded Authorities”  Increase flexibility  Increase accountability  Reduce paperwork burden  Develop partnerships O Promote successful project outcomes

4 “Expanded Authorities”  Pre-award Costs  Carryover  Budget Transfers  Time Extensions

5 Pre-award Costs Incurred up to 90 days Incurred up to 90 days before budget period begins before budget period begins No prior approval required No prior approval required Applies to New and NCC awardsApplies to New and NCC awards

6 Pre-award Costs  Reasonable expectation of receiving a grant  Incurred at own risk  ED funds are not available for drawdown until the budget period begins  Not for cost over-runs

7 Pre-award Costs Incurred more than 90 days before budget period begins: Requires prior approval OK

8 Carryover  Unexpended funds are carried over without prior approval  For any allowable cost within the approved project scope  finishing uncompleted activities  new activities within scope

9Carryover  Program Office may require a written statement How will unexpended funds be used?How will unexpended funds be used? When: At time of funding decisionWhen: At time of funding decision In rare cases, new funds may be reducedIn rare cases, new funds may be reduced

10 Budget Transfers  No prior approval required for most budget transfers  Exceptions in EDGAR:  Transfer training funds to other categories  Transfer or contracting out any work  Check OMB Cost Principles for other exceptions 10% rule

11 EDGAR Prior Approval Requirements  Changes in project scope or objectives  IHE and non-profit project directors:  Absence for more than 3 months  25% reduction in time  Need for additional federal funds  Changes in key personnel

12 Time Extensions Final Year: Final Year:  One-time extension for up to one year without prior approval  Grantees should carefully consider time extension needs

13 Time Extensions  Send written notice to program officer:  No later than 10 days before project ends  State reasons for extension  Include revised expiration date

14 Time Extensions  Not just for using unexpended funds  No change to scope or objectives  No additional federal funds

15 Important Reminders  Check grant terms, conditions and grant award attachments for possible exceptions  In rare circumstances, some or all may be denied  When in doubt, call your Program Officer

16 Conclusion New spirit of partnership We welcome your feedback. Let us know what’s working and what’s not. Internet address: Internet address: Focus on successful project outcomes!

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18 Grant Administration & Payment System Financial Management/ Monitoring in GAPS Monitoring in GAPS

19 Grant Administration & Payment System  Request drawdown by grant award number  Drawdowns treated as expenditures

20Grantee  receives grant award from ED  administers the grant in accordance with ED regulations  DUNS number needed to participate

21 Payee  Requests and manages funds  May be the grantee or other entity identified by the grantee  Needs DUNS Number to participate

22 Payment Methods  Advance Payment Method U.S. Department of Education  Reimbursement Payment Method

23 Receiving ED Funds Your Bank

24 Cash Management Drawn funds must be expended within three business days after they are deposited in your bank account.

25 Monitoring For Results  Performance monitoring  Financial monitoring

26 The Results Act  Develop program standards & indicators  Ties federal funding to results!  What is happening with the money? The Government Performance and Results Act of 1993 (GPRA)

27 Track spending patterns for each grant Grant Teams Monitor * GAPS* * GAPS* Why: qIdentify performance problems qIdentify financial management problems qWork in partnership to resolve

28 Rate of draws: Commensurate with approved scope of work & project milestones? Commensurate with approved scope of work & project milestones? What Grant Teams Are Looking For

29  Grant for $275,000 to LLU - their first federal grant  Project was on track, meeting goals and objectives  Performance report indicated $200,000 expended  GAPS shows no funds drawn down Exercise #1 - LLU

30  BobU received $75,000 grant  Performance report indicates $25,000 unexpended  Program officer calls grantee to discuss why Exercise #2 - BobU Bob

31  SKI receives $400,000 grant  Key milestones being reached on schedule  GAPS indicates all $400,000 was drawn down in first three months Exercise #3 - SKI Smarter Kids... Start Here!

32 When Grant Teams Check GAPS  Throughout the life of the grant  At the end of each budget period  Before performance monitoring  Before technical assistance contacts

33 Red Flags  Not drawing down funds//Regular draw downs not being made  Is work being performed?  Are performance indicators being met?  Is there a financial management problem?. Work is being performed, but payee is not drawing down funds

34 Red Flags  Large amount of unobligated funds at end of budget period  Has grantee made substantial progress?  Other issues:  Did project have a late start (Year 1) ?  Did key personnel leave the project?

35 Red Flags  Excessive amount of funds drawn down  Draws exceed immediate need (3-day rule) (3-day rule)  Draws not in line with project scope & milestones

36  Project Directors: Communicate with your Fiscal Staff Conclusion  Ensure that the drawdowns in GAPS reflect status of project  Grant Teams rely on drawdown in GAPS to monitor your project

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38 Thanks for attending! Please complete an evaluation form and - Please complete an evaluation form and - Good Luck with your ED discretionary grant!