Budgets

Multiple quotes can be accepted as bids. Also acceptable is a statement that says they will obtain bids.

The Perkins Basic Grant and the reVISION Action Grant use the same coding.
Receipts: 4525, and Disbursements: 6700.

Keeping Perkins expenditures coded to the 6700's could benefit the district for other State calculations (when coded prior to the end of the district's fiscal year).

Each code represents a function that describes the activity for which a service or material object is acquired. This coding structure distinguishes and identifies the functions and objects of expenditures.

 
  Examples are below:

03 - Expand Use of Technology (e.g., adding computers and software in Information Technology)

20 - Upgrade Equipment (not replacing, but upgrading to Industry standards)

07 - Modernize Programs (May include professional development in addition to  modernizing  equipment)

08 - CTE Course Development (expenses towards any new CTE course. May include Professional Development training.) 

No, this is not allowable. It is considered a prepayment and outside of the grant period.

No. This would be obligating funds outside the grant period. 

There is a difference between Obligated and Expended. Funds must be obligated within the 12-month period.
Perkins Grant Award Notifications (GANs) have a 12-month grant period starting July 1 and ending June 30.
    The obligation period of the Grant is identified in Grant Award Period.  Obligations cannot be made prior to or after this Grant Period.  All obligations should be liquidated within 45 days after ending date of Grant. 

Expenditure Type When Obligated
Equipment and Supplies Date of Purchase Order
Work of employees When the work occurred
Contracted Services Date of written agreement
Travel expenses When the travel is taken

Yes, however the item should be received and the payment should be made in a very timely manner so that the grant does not need to be left open for an extended period of time. Perkins Grant Awards (GANs) state the following Terms and Conditions:
"The obligation period of the Grant is identified in Grant Award Period.  Obligations cannot be made prior to or after this Grant Period.  All obligations should be liquidated within 45 days after ending date of Grant.  At the completion of the grant period, a final request for funds accompanied by the final report of expenditures must be submitted to the Department with proper documentation not later than 45 days after the last day of the grant period."

No. An annual budget and application for Perkins funds must be approved by NDE before any funds can be obligated from it.

Administrative costs must be associated with the direct administration of the local application. Costs are limited to no more than 5% of total allocation. Approved indirect costs are considered administrative costs and must be included in the 5% limitation. Documentation of actual expenses must be maintained to claim the 5% administrative cost. Budget and reporting of the direct administrative expenditures should appear in the appropriate object code. 

The allowable rate should be the LEA’s or Consortium’s Approved Rate when it is LESS than the 5% maximum. (Up to 5% is the rate allowable by Perkins law.)

Examples:  If the 5% is claimed for staff time, it should be in Category 100-Salary and Category 200-Employee Benefits. You do need to record and submit time certification for reimbursement. The records must show positive time kept under the 5% cap. 

If the 5% administrative cost is directly associated with advisory committee meals or other related expenditures, it would be coded to Category 300- Professional & Technical Services or Category 400/500-Other Purchased Services depending on the type of purchases involved. 

If it is to pay mileage for the ESU staff
  travel expense reimbursement, code to
  Category 400.

The documentation needed depends on the expense. This documentation could be payroll records along with Time and Effort, paid invoices and receipts, contracts, etc. This is would be the same documentation you would need to support any expense where there is no additional documentation for administrative expenses.

If you are charging Indirect Costs to grants you would want to have the documentation showing how the Indirect Cost is being calculated and charged.

No. The reimbursement requests should clearly indicate that the district or community college made those expenditures as this is to whom the grant award was issued.

It is also important that all equipment and supplies purchased with the grant funds be tagged and/or inventoried as property of the school district or community college. 

Direct costs generally include:

• • Salaries and wages

  • Other employee fringe benefits allocable on direct labor employees.

  • Consultant services contracted to accomplish specific grant objectives.

  • Travel of employees.

  • Materials, supplies and equipment purchased directly for use on a specific grant or contract.

  • Communication costs identifiable with a specific award or activity.

Indirect costs represent the expenses of doing business that are not readily identified with a particular grant, contract, project or activity, but are necessary for the general operation and the conduct of activities it performs. In theory, costs like heat, light, accounting and personnel might be charged directly if little meters could record minutes in a cross-cutting manner. Practical difficulties preclude such an approach. Therefore, cost allocation plans or indirect cost rates are used to distribute those costs to benefiting revenue sources.

Documentation at the LEA should have:

• Date of Purchase

• Vendor

• Amount

• Note describing purpose for expenditure

Direct costs can be identified specifically with particular cost objectives such as a grant, contract, project, function or activity.

If indirect costs were claimed on any other Federal Grant in the grant year, they must also be claimed for the Perkins Grant in that same year.  

Perkins grant indirect costs are capped at 5%. Additionally, administration fees must be included within the 5%. Combined, this amount cannot exceed the 5% cap.  

The amount of capital outlay (equipment) is excluded from the total direct costs when the indirect cost rate is applied to determine the dollar amount of indirect cost to be allowed by the project. 

NDE views indirect cost rates to be applied to the rate in effect at the time of the direct cost.  The approved IC rate for August of the allowable direct costs for August could be charged to the grant.

If it is June’s time worked on a June Timesheet, you can allow it as an obligation for a payment being made in July. Time and Effort reporting would follow the same dates. 

EDGAR §200.406   Applicable credits.  Applicable credits refer to those receipts or reduction-of-expenditure-type transactions that offset or reduce expense items allocable to the Federal award as direct or indirect (F&A) costs. Examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the non-Federal entity relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate. E.g., deduct the amount of the rebate from the request for reimbursement before submitting to the NDE. 

Yes, with proper documentation. Review 2 CFR 200.313 (Equipment) of the Uniform Guidance. When it is time for this item to be sold or disposed of, it will be important there are records of the proportional amount of Perkins funds that were used in the acquisition of the equipment. Additionally, the equipment must be used for CTE programs and services, the cost must be reasonable, necessary, and allocable to the grant. 

Equipment costing $5000 or more per item = 700 category Capital Assets. Equipment costing $4,999 or less per item = 600 category Supplies.

* It is not permissible to purchase residential grade equipment and seek Perkins reimbursement.

Items purchased with Perkins funds can be disposed of following the school’s own “Accounting Depreciation Procedure for Disposing of School Inventory.” The NDE does not determine the depreciation cycle for equipment, rather, it is left up to the ESU’s and district’s policies.  In most cases it means keeping track of the item in their accounting records for 5-7 years. (5 years for a Perkins federal audit.) *The key is the actual value of the equipment now, not the depreciated value.

Equipment that is no longer functional and can’t be upgraded or updated essentially has a value of “0”. Keep documentation on file that indicates the item, inventory number and explanation that it has no value and was disposed of on such and such date.

Equipment with a depreciated value of “0” can be sold, however documentation must be on file and the proceeds have to be refunded into the CTE program.

In most cases, yes, however if an item is made of several different parts that are not dependent on each other and can be used independently on their own, then categorizing the kit can be made under 600-Supplies. 

If none of the individual items are over $5000 each, but they are all dependent on being ordered together to run the equipment that totals over $5000- then they need to be categorized as 700s-Equipment. 

Probably - with proper documentation and prior approval.

Equipment purchased with Perkins funds in part by a district and in part by the Consortium should follow OCTAE guidance:  Review 2 CFR 200.313 (Equipment) of the Uniform Guidance. When it is time for this item to be sold or disposed of, it will be important there are records of the proportional amount of Perkins funds that were used in the acquisition of the equipment. 

Management requirements, at a minimum, must meet the following requirements: 

1. Equipment purchased with Perkins grant funds can only being used for approved CTE programs and services.
   Equipment purchased by a consortium remains the property of the consortium and is to be made available to all consortia members. It is strongly recommended that these equipment purchases be made by the consortium.

2. Property Records must be maintained that include a description of the property, a serial number or other ID number, the source of funding (including the FAIN (Federal Award Identification Number), who holds the title (Consortium), acquisition date, cost of the property, Percentage of Federal participation in the project costs for the Federal award under and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Inventory Records need to be obtainable at both entities: the consortium and the district fiscal offices. 

3. A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.

4. A control system must be developed to ensure adequate safeguards to prevent loss, damage or theft of the property. Any loss, damage or theft must be investigated.

5. Adequate maintenance procedures must be developed to keep the property in good condition. 

6. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible level of return.

This category is used for payment of Professional Development Registration and/or fees to consultants or for professional and technical services.
ESU's also use this code for payment from consortiums to schools for stipends to teachers and Substitute Teacher reimbursement as requested in the local application.

Yes.

No. Perkins does not allow carry over funds for their annual grants. Obligations cannot be made prior to or after the grant period (July 1st through June 30th).

No. Per 2 CFR Part 200, 200.470 local governments that are tax exempt cannot be reimbursed for tax that was inadvertently paid.

Yes, however, just like any other expenditure the fee must align with the overarching CTE application and four-year plan for the consortium and is considered an allowable expense. A vendor must provide a description of exactly what the fees are for, detailed information on any personnel services charged to the grant and the item’s purpose and will these activities provided by the vendor reasonably contribute to the identified results of the comprehensive local needs assessment.