1. 1 OREGON

2. The Perkins Act – http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s250enr.tx t.pdf Your OMB Circulars http://www.whitehouse.gov/OMB/circulars Education Department General Administrative Rules - EDGAR http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html 2 OMB – Office of Management and Budget EDGAR – Education Department General Administrative Regulations

3. Perkins – The Whole Act (On-line or you can order a paper copy from ACTE – Go to http://www.acteonline.org ; select Shop ACTE, go to ACTE Store, scroll down and select ACTE Publications, scroll down to the Perkins Act of 2006)http://www.acteonline.org 3 ACTE – Association for Career and Technical Education

4. 4 OMB Circular A133 – Single Audit Act o Read the entire “Cross Cutting Section” (Compliance Requirements, Section 3) o The Career and Technical Education Compliance Supplement, 4- 48.048-1 o A133 §__.220 - Procurement and Suspension and Debarment

5. 5 o Per the current OMB Circular A133 Audit Guide and the CTE Compliance Supplement (http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011 )http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011 - CFDA 84.048, III. Compliance Requirements, N. Special Tests and Provisions 3.b. - ((Perkins Sec. 113(b)(4)(C)(v)) “Perkins recipients must make their Performance Measure results available to the public…” as recipients begin to fail Performance Measures this requirement has become the NEWEST easy “audit finding” …. CFDA – Catalog of Federal Domestic Assistance

6. 6 Education Department General Administrative Regulations (EDGAR 34CFR 74,75,76,77,79,80,81,82,84,85,86,97, 98 and 99)… Specifically – CFR – Code of Federal Regulations

7. o 34 CFR 76.533 – Acquisition of real property o 34 CFR 76.563 & 564 – Restricted indirect cost rate; maximum 8% o 34 CFR 76.703 - When may a state begin to obligate funds; state plan? o 34 CFR 76.707 – When is an obligation made? o 34 CFR 76.708 - When may a recipient begin to obligate funds (spend $) – Substantial approval? PART 76 STATE GRANTS 7

8. o 34 CFR 80.3 - Definitions o 34 CFR 80.12 – High-risk recipients o 34 CFR 80.21(i) – Allows recipients to keep $100 interest (cash management) o 34 CFR 80.22 – Allowable cost reference table K-12, local governments, etc. OMB Circular A87 Higher education, community colleges OMB Circular A21 o 34 CFR 80.23(b) – 90 day window to eliminate (liquidate) prior period obligations o 34 CFR 80.25(g) – Program income o 34 CFR 80.26(b) – Audit threshold, Single Audit Act, $500k PART 80 UNIFORM ADMINISTRATION - GRANTS 8

9. o 34 CFR.32 Equipment definition, uses, inventory, disposition, etc. 34CFR.20(a)(3) – Personal property under $5k; adequate safeguarding of property (Arizona’s AG refers to it as financial administration’s “stewardship” requirement) o 34CFR80.36(b) Procurement – this section defers this decision to state procurement rules with some exceptions o 34CFR80.37 Cash management o 34CFR80.40 Program monitoring o 34CFR80.42(b) Records retention – 3 years; I recommend 5 years PART 80 UNIFORM ADMINISTRATION - GRANTS 9 AG – Auditor General

10. o 34CFR80.43(b) Enforcement – withholding funds, dictate remedies, recipient appeal rights o 34CFR81.33 Mitigating circumstances appeal to OVAE __________________________________________________ PART 80 UNIFORM ADMINISTRATION – GRANTS PART 81 – GENERAL ED PROVISIONS ACT - GEPA OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULARS o Secondary OMB Circular A87 – Cost Principles o Postsecondary OMB Circular A21 – Approved Cost o Non-Profit (some Charter Schools) OMB Circular A122 – Cost Principles o In particular – Attachment B in A87 & A122; Selected Items of Cost 10

11. PERKINS Section 2 – Purpose Section 3 – Definitions o Section 3(1) – Definition of administration o Section 3(3)(b) – Area CTE schools must have at least 5 programs o Section 3(5)(A)(iii) – Paying for remedial education not allowed o Section 3(29) – Special populations “Other” gone No more “academically” disadvantaged 11 CTE – Career and Technical Education

12. PERKINS Section 112 – Your set-asides o Section 112(a)(3) – 5% administration limit (max) o Statewide leadership – 10% (max) Corrections – 1% Non-Traditional - $60-$150K o Formula – 85% (min) o Section 112(b) – Dollar-for-dollar match o Section 112(c) – The ‘Reserve’; up to 10% of formula funds (Section 112(a)(1) Section 113 – Accountability. Beginning to cost recipients money in some states… Section 122 – State Plan requirements (? Perkins V) o Amendments (substantial change) Section 123 – Improvement plans 12

13. PERKINS Section 124 – State Leadership ~ FLEXIBLE o Section 124(b) Required Uses Assessment Improve CTE o Training o Academic Skills o Collaboration Professional development Technical assistance o Section 124(c) – Permissive uses Tech Prep activities CTSOs (Career and Technical Student Organizations) Data systems o Section 124(d) – Cannot be used for administrative costs 13

14. PERKINS Section 124(c)(6) – Support for “Career and Technical Student Organizations” (CTSOs) You need to go back to the last published Perkins regulations (Perkins 2) – 34(CFR)403.71(c) 14

15. Section 131 – Secondary distribution of funds o Section 131(c) - Minimum allocations; Waivers ($15K) o Sufficient size and scope Section 131(f)(1)(c) Section 134(b)(6) – local application o Section 131(d) – No elementary o Section 132 – Postsecondary distribution of funds o Section 132(c) - Minimum allocation $50K o Consortium required – no postsecondary waiver o Section 134 – Local plans (applications) PERKINS 15

16. PERKINS Section 133 – Specials rules that allow a state flexibility when the amount allocated for either the secondary or postsecondary recipients as a group is 15% or less… Section 135 – Local uses of funds o Required uses – may be met with non-federal funds o Permissive uses – a favorite Parent involvement CTSOs Teacher prep New program development Etc. o Section 135(d) – 5% cap on administration Indirect costs are considered administrative costs 16

17. PERKINS Section 311(a) - Supplement not supplant Section 311(b) – Maintenance of Effort (MOE) o Section 311(c) – One time 5% waiver guidance o Section 323 – State-funded administration MOE SUPPLANTING DEFENSE 17 OMB A133 Compliance Supplement 4-84.000, III Compliance Requirements > III.G.2.2 - Level of Effort – Supplement Not Supplant. May be rebuttable if you, ‘would not have provided the service in the absence of federal funds…’

18. 18 Tech Prep – Not Funded Some states are closing out their Tech Prep programs, running on old (carryover) monies under the 27 month Tydings Amendment period If you are doing so – you need to expend these funds under the provisions of – Sections 201 through 206 of Perkins o Section 202 - Consolidation

19. YOUR OWN STATE’S LAWS ON Procurement – 34CFR80.36(b) defers procurement rules to each individual state’s procurement rules Inventory – The same is true for inventory requirements for most K-12 schools in your state, because most states usually set their K-12 inventory requirements for equipment or other types of personal property at less than $5K. The state’s guidelines are often more restrictive – and, unless otherwise stated, you will need to follow the more restrictive guidelines – whether state or federal 19

20. YOUR OWN STATE’S LAWS ON Audit guides - Those most commonly used by your own state’s Auditor General or Inspector Generals to do fiscal audits of your state’s K-12 schools and community colleges. Please look specifically at those questions dealing with - o Procurement o Inventory controls Codified state procurement codes that apply to your type of institution Codified fiscal procedures that apply to your state’s K-12 schools and community colleges. Your state’s educational laws and code. 20

21. PART 76 STATE GRANTS o 34 CFR 76.707 – When is an obligation made? o 34 CFR 76.708 - When may a recipient begin to obligate funds (spend $) – substantial approval? PART 80 UNIFORM ADMINISTRATION - GRANTS o 34 CFR 80.3 - Definitions o 34 CFR 80.21(i) – Allows recipients to keep $100 interest o 34 CFR 80.22 – Allowable cost reference table K-12, local governments, etc. OMB Circular A87 Higher education, community colleges OMB Circular A21 21

22. PART 80 UNIFORM ADMINISTRATION - GRANTS o 34 CFR 80.23(b) – 90-day window to eliminate (liquidate) prior period obligations o 34 CFR.32 Equipment definition, uses, inventory, disposition, etc. 34CFR.20(a)(3) – Personal property under $5K; adequate safeguarding of property (Arizona’s AG refers to it as financial administration’s “stewardship” requirement o 34CFR80.36(b) Procurement – this section defers this decision to state procurement rules with some exceptions 22

23. PART 80 UNIFORM ADMINISTRATION - GRANTS o 34CFR80.37 Cash management o 34CFR80.40 Program monitoring o 34CFR80.42(b) Records retention – 3 years; I recommend 5 PART 80 UNIFORM ADMINISTRATION – GRANTS o 34CFR80.43(b) Enforcement – withholding funds, dictate remedies, recipient appeal rights 23

24. OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULARS o Secondary OMB Circular A87 – Approved Cost o Postsecondary OMB Circular A21 – Approved Cost In particular – Attachment B in both documents; Selected Items of Cost 24

25. PERKINS Section 2 – Purpose Section 3 – Definitions o Section 3(1) – Definition of administration o Section 3(3)(b) – Area CTE schools must have at least 5 programs o Section 3(5)(A)(iii) – Paying for remedial education not allowed o Section 3(29) – Special populations “Other” gone No more “academically” disadvantaged 25

26. PERKINS Section 113 – Accountability. Beginning to cost recipients money as more and more recipient programs fail to produce their negotiated outcomes Section 123 – Improvement plans Section 131 – Secondary distribution of funds o Section 131(c) - Minimum allocations; Waivers ($15K) Section 132 – Postsecondary distribution of funds o Section 132(c) - Minimum allocation $50K Section 134 – Local plans (applications) 26

27. PERKINS Section 135 – Local uses of funds o Required uses – may be met with non-federal funds o Permissive uses – a favorite Parent involvement CTSOs; (Perkins 2) – 34(CFR)403.71(c) Teacher prep New program development Etc. o Section 135(d) – 5% cap on administration Indirect costs are considered an administrative costs 27

28. TECH PREP CONSORTIUM - Close Out If your state is closing out Tech Prep this year (using carryover), rather than rolling these monies into the Basic Grant, you are still subject to – o Sections 201 through 206 Section 202 Consolidation with Perkins formula funds SUPPLANTING DEFENSE OMB A133 Compliance Supplement 4-84.000, III Compliance Requirements > III.G.2.2 - Level of Effort – Supplement Not Supplant.. May be rebuttable if you, ‘would not have provided the service in the absence of federal funds…’ 28

29. YOUR DISTRICT’S OR COLLEGE’S GUIDANCE FOR - Procurement of supplies, equipment, services or people Inventory requirements and procedures (Both should logically reflect your own state’s guidance on both) 29

30. Federal Program Offices – http://www.ed.gov Perkins Act – http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s250enr.txt.pdf http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s250enr.txt.pdf OMB Circulars – http://www.whitehouse.gov/OMB/circularshttp://www.whitehouse.gov/OMB/circulars EDGAR – http://www.ed.gov/policy/fund/reg/edgarReg/edgar.htmlhttp://www.ed.gov/policy/fund/reg/edgarReg/edgar.html Make sure you have the most current document… 30

31. Your state’s educational statutes Your state’s Auditor or Inspector General’s website(s) OIG Web pages – http://www.ed.gov/about/offices/list/oig/areports.html & http://www.ed.gov/about/offices/list/oig/areports.html http://www.ed.gov/about/offices/list/oig/whatsnew.html “The Green Book” - Cost Allocation Guide for State and Local Governments – Make sure you have the most current document… 31 http://www2.ed.gov/about/offices/list/ocfo/fipao/guideigcwebsite.pdf