Awards Beginning
7/1/01 or Later
Download the text
portion of this document in Microsoft Word format
Download the Appendices/forms in PDF 
- Interim Equipment Inventory Report
- Interim Non-Employee Compensation Report
- Interim Personnel Report
- Interim Subcontract Report
- Interim Consultant Report
- Final Equipment Inventory Report
- Final Non-Employee Compensation Report
- Contract Modification Request Check-Off Sheet
- Contract Modification DOE Approval Checklist
- Budget Modification Request Worksheet
New Jersey Department of Education
Contractor’s Manual for Discretionary Grants
(Managing a Third-party Contract)
Table of Contents
Introduction
STATE BOARD OF EDUCATION
Part One: Success!
General Information All Contractors Should Know
What Is All This Paper?
Do I Need To Know It All?
What Do I Keep In A Grant File?
What Regulations Apply To My Contract?
Which Federal Circulars Apply To My Grant Project?
Who Or What Is EDGAR?
Are There Other Requirements I Should Know About?
How Do I Communicate With The Department Of Education?
Part Two: Spending Grant Funds
What Are My Responsibilities?
What Are My Time Lines For Spending Grant Funds?
How Will I Get Reimbursed For Expenditures?
How Do I Know What Expenditures Are Allowable?
How Do I Know What Program Activities Are Allowable?
Part Three: Subcontracts (Subcontractors, Consortia, Partners,
Subgrants, Subrecipients)
What Are Subcontractors?
Are Subcontractors Subject To Regulations?
Are Consultants Or Vendors Subcontractors?
Do I Need A Formal Contract With Subcontractors?
Can I Approve Changes To My Subcontracts?
Part Four: Grant-Funded Equipment
How Do I Purchase Grant Equipment?
Who Owns the Grant-Funded Equipment?
Who Maintains Inventory Of Equipment?
Who Is Responsible For Equipment Security?
Must I Use Equipment Only For Grant Activities?
What About Use Of Equipment After The Contract Is Over?
How Do I Dispose of Obsolete Equipment?
Part Five: Matching Funds
What Are Matching Funds?
How Are Matching Funds Treated?
What Qualifies As A Match?
Part Six: Program Income
Can My Agency Generate Income Through My Grant?
Can I Spend Program Income?
What About Program Income Generated After The Grant
Is Over?
Do I Need To Keep Records For Program Income?
Can I Copyright Material?
Part Seven: Contract Monitoring and Reporting
Will My Program Be Monitored On-Site?
What Occurs During Contract Monitoring?
What If I Am Not Monitored On-Site?
What Reports Are Required?
How Do I Complete Reports?
Where Do I Send Reports?
What Happens If I Miss A Report Due Date?
What Does The DOE Do With Reports?
Part Eight: Budget Flexibility and Contract Modifications
How Much Flexibility Do I Have Within My Approved Budget?
When Must I Write To Get Approval To Change My Grant?
Can You Explain The Restricted Line Items (Equipment,
Subcontracts and Indirect Costs Changes)?
What Should Be Included In A Contract Modification Request?
Do You Have Examples of Good Contract Modification Requests?
What Are Some Common Problems With Contract Modification
Requests?
Where Do I Send My Contract Modification Request?
What Happens To My Request Once It Has Been Submitted?
Part Nine: Contract Closeout
How Do I Close Out My Contract?
Can Costs Be Disallowed By The DOE?
When Do I Get The Final Payment?
Do I Send A Check If There Are Unspent Grant Funds?
How Long Do I Keep Grant Records?
Part Ten: Audit
Will I Be Audited?
How Can I Safeguard My Grant Against Audit Findings?
Part Eleven:
Appendices (PDF )
- Interim Equipment Inventory Report
- Interim Non-Employee Compensation Report
- Interim Personnel Report
- Interim Subcontract Report
- Interim Consultant Report
- Final Equipment Inventory Report
- Final Non-Employee Compensation Report
- Contract Modification Request Check-Off Sheet
- Contract Modification DOE Approval Checklist
- Budget Modification Request Worksheet
Glossary
Introduction
As project director of a discretionary grant program
awarded by the New Jersey Department of Education (DOE), you are responsible
for managing and implementing the educational program and budget described
in your final approved grant application. You must also ensure that
your agency meets its responsibilities to the DOE under the third-party
contract. Where possible, the individual designated by the applicant
agency to serve as the project director should continue to serve in
that capacity for the entire length of the grant program. This will
help to ensure consistency in program administration, full understanding
of overall program goals and objectives, and steady progress toward
fulfilling the program plan.
The DOE is required to assure to its awarding agency
that funds are awarded and expended in accordance with program and administrative
regulations. To address this requirement, the DOE is committed to assisting
the grant recipient agency (you) with the implementation of successful
grant programs that will avoid audit findings.
This Contractor’s Manual for Discretionary
Grants is intended to provide information and general guidance to
project directors in managing discretionary grant programs under third-party
contracts issued by the DOE. Nothing presented in this manual is intended
to supersede, or be construed as superseding, applicable state or federal
legislation, regulations, or any other requirements that govern the
use of discretionary grant funds. The project director is advised to
refer to specific regulatory documentation when researching specific
questions.
The DOE Office of Grants Management and Development
(OGMD) has developed this manual and welcomes comments and questions.
Please provide any comments and/or questions to the Application Control
Center (ACC), New Jersey Department of Education, 100 River View Executive
Plaza, P.O. Box 500, Trenton, NJ 08625-0500.
STATE
BOARD OF EDUCATION
It is a policy of the New Jersey State Board of Education
and the State Department of Education that no person, on the basis of
race, color, creed, national origin, age, sex, handicap or marital status,
shall be subjected to discrimination in employment or be excluded from
or denied benefits of any activity, program or service for which the
department has responsibility. The department will comply with all state
and federal laws and regulations concerning nondiscrimination.
Part One: Success!
General Information All Contractors Should Know
What Is All This Paper?
Congratulations! Your agency was successful in completing
the application and pre-contract revision process and has received an
award for a discretionary grant program. The packet your Chief School
Administrator (CSA) or Chief Executive Officer (CEO) has received from
the DOE consists of the following:
Award Letter
Third-party Contract: This document is a five-page
agreement to be signed by the contractor (grant recipient agency)
and the DOE.
- Page One - This page includes the contract number, RFP name,
RFP number, name of contractor, contractor’s chief financial
officer, name and telephone number of the DOE program officer who
oversees the grant program, federal Catalog of Federal Domestic Assistance
(CFDA) number of the program (if applicable), the start and end dates
of the contract, regulations pertaining to this contract which are
incorporated by reference, and signature lines for the contractor’s
CSA/CEO, and the appropriate DOE official. The RFP name and contract
number as they appear on page one of the contract, are important identifiers
when communicating with the DOE at any and all times throughout the
duration of the contract period.
- Page Two - This page identifies the method of payment
and the due dates of progress and final program and fiscal reports.
The DOE requires timely submission of reports in accordance with these
due dates (see Part Seven).
- Page Three - This page contains the contract-specific
terms and conditions (listed on Attachment C). This page may simply
refer to an attachment or may contain specific information about your
contract.
- Page Four - This page indicates the approved contract
budget listed by Generally Accepted Accounting Principles (GAAP) category.
This is your "official" budget. It is supported by the final
approved grant application. Your requested budget may have changed
as a result of pre-contract revisions so you will want to become familiar
with the final approved budget as it appears on page four of the contract.
- Page Five - This is the Expenditure Report Form that your
chief fiscal officer (CFO) or Business Administrator (BA) is required
to use in completing and submitting the fiscal reports referenced
on page two of the contract. Photocopy this page for use with each
(usually four (4) total) required fiscal report for the contract (see
Part Seven).
Attachment A, Contract Terms and Conditions: This
document contains the administrative terms and conditions with which
a contractor must comply with under this contract. It is important
to read this document carefully. It refers to many other regulatory
sources that apply to your agency and to any subcontracted agencies.
This document is incorporated into the contract by reference, and
is legally a part of the contract. Attachment A is available on
the NJDOE web site: http://www.state.nj.us/education/.
Attachment B: This document contains requirements
with which a contractor must comply concerning the acknowledgment
of the amount and percentage of federal and non-federal funding when
making any public announcement relating to the contract. Contract
audit requirements and copyright information are also included.
Attachment C: This attachment is included
only where applicable and contains special program-specific terms
and conditions with which a contractor must comply and/or special
terms and conditions imposed on "high risk" contractors.
Approved Grant Application: Your proposed
goals, objectives, activity plan, evaluation plan, budget, etc..,
may have been changed as a result of the pre-contract revision process.
This final approved grant application incorporates all of the
DOE-approved pre-contract revisions. It supersedes all other versions
of the application and is made a part of the contract. It provides
the framework for the program. Use only the final approved grant application
to manage your program.
Do I Need To Know It All?
You should review all documents very carefully, especially
the third-party contract terms and conditions and the
final approved grant application, so you understand all requirements
and responsibilities.
The DOE strongly encourages project directors to share
copies of all materials relating to the contract with their CFO/BA and
to work closely with the business office to ensure that the administrative
requirements of the contract are met. Often project directors initiate
orders, provide an activity code, and sign grant-related purchase requisitions
to help assure proper budgeting and accounting of expenses. From experience,
the DOE believes that good communication between the project director
and the business office is essential to the successful achievement of
programmatic goals, objectives, and activities, as well as to meeting
the administrative requirements of the contract.
What Do I Keep In A Grant File?
The DOE recommends that the project director maintain
an administrative file for ready reference, which should
contain at a minimum, the following materials:
- Copy of the Request for Proposal/Continuation/Application (RFP/C/A)
document
- Copy of the fully executed third-party contract
- Copy of Attachments A, B and C
- Copy of the final approved grant application
- Copy of all submitted reports
- Copy of grant-related correspondence
- Activity related documentation as outlined in the Program Activity
Plan
- Grant related purchasing documentation (i.e., requisitions, purchase
orders, shipping invoices)
What Regulations Apply To My Contract?
All third-party contract language makes reference to,
and incorporates into the contract, many federal and state regulations.
Specifically, these are the requirements contained in Federal Office
of Management and Budget (OMB) Circulars and the Code of Federal Regulations
(CFR 34). These documents provide guidance for the administration of
grants, cost principles, and audit requirements. The grant funds for
which the DOE has oversight come from both federal sources and state
appropriations. Some grant programs are completely federally funded,
some are completely state funded, while other grant programs are a combination
of the two. Federal regulations require that the DOE treat federal and
non-federal sources of funds in a consistent manner and in accordance
with state law. To meet this requirement, the DOE applies the provisions
of the federal OMB circulars uniformly to all contractors.
Which Federal Circulars Apply To My
Grant Project?
The following chart provides information about federal
OMB Circulars that apply to different types of agencies.
Uniform Administrative Requirements
(Common rule contract management standards for contractors)
| If the contractor is a/an - |
Applicable OMB Circular |
Entity of state/local government
(includes Local Education Agencies (LEAs)) |
OMB Circular A-102 |
| Institution of higher education (college or university),
hospital, or a non-profit organization
(May be applied to for-profit organizations)
|
OMB Circular A-110 |
Cost Principles
(Common rule which defines allowable and unallowable costs)
| If the contractor is a/an - |
Applicable OMB Circular/Regulation |
| Entity of state/local government (includes LEAs) |
OMB Circular A-87 |
|
Institution of higher education (college or university)
|
OMB Circular A-21 |
| Non-profit organization |
OMB Circular A-122 |
Hospital
For-profit organization |
45 CFR, part 74, Appendix E
FAR, 48 CFR part 31 |
Audit Requirements
| If the contractor is a/an - |
Applicable OMB Circular |
|
Entity of state/ local government, Institution
of higher education (college, university), hospital, or a non-profit
organization
|
OMB Circular A-133 |
For contractors with Internet access, all of the
OMB circulars listed above are available on the World Wide Web http://www.whitehouse.gov/WH/EOP/OMB/Grants/
or by calling the OMB publications office in Washington, D.C. at (202)
395-7332.
Who Or What Is EDGAR?
The U.S. Department of Education (USDOE) funds many
of the discretionary grant programs administered by the NJDOE. The regulations
affecting these programs are found in Title 34 of the Code of Federal
Regulations. Education Department General Administrative Regulations
(EDGAR) is a book issued by the USDOE that reprints the portions
of Title 34 containing the administrative requirements for grant recipients
(parts 74, 75, 76, 77, 79, 80, 81, 82, and 86). These regulations are
incorporated into the DOE third-party contract by reference. For
contractors with Internet access, the text of the most current printed
version of EDGAR may be found on the World Wide Web in compressed format
at: http://gcs.ed.gov/grntinfo/edgar.htm
Are There Other Requirements I Should
Know About?
All programs administered by the DOE are also subject
to program-specific requirements (program regulations, enabling legislation),
as well as state law. Program-specific requirements (programmatic and
administrative) will be referenced in the RFP/C/A document. Some federal
and State regulations and public laws may be found on the World Wide
Web. (The USDOE home page can be found at http://www.ed.gov/index.html). In
the near future, the DOE will have a regulatory section on the grants
page of the DOE home page - http://www.state.nj.us/education/
How Do I Communicate With The Department Of Education?
There are two basic circumstances under which you may
need to communicate with the Department of Education during the grant
period for your local project:
- When you have a question about the implementation of your project,
and
- When you need to transmit official documents to the department to
comply with the requirements of the grant program.
When you have questions about the implementation of
your local project, your primary point of contact will be the program
officer assigned to your particular grant program. The name and telephone
number of the assigned program officer appears on the award letter and
on Page One of your third-party contract document.
The program officer is the DOE staff person who will
work most closely with you throughout the duration of the grant period,
and who will become most familiar with your local project. This person
is responsible for providing technical assistance, monitoring local
project performance, reviewing and approving interim fiscal and program
reports, and following up with contractors on requests to modify the
contract.
You are encouraged to contact your program officer
on matters relating to:
- Program concepts and implementation
- Administrative regulations and program requirements
- Special circumstances relating to your local project
The program officer and program office director will
be the DOE staff with whom you will have most of your contact during
the grant period. You should feel free to contact your program officer
by phone for technical assistance with your project as often as necessary
in order to help carry out the activities approved in your final approved
grant application (see table below for program office numbers).
DOE Program Office Information
| Office of: |
Phone: 609- |
FAX: 609- |
| Assessment |
292-5180 |
984-6032 |
| Bilingual Education & Equity
Issues |
292-8777 |
292-1211 |
| Community Services |
633-9627 |
777-2939 |
| Educational Support Services &
Interagency Initiatives |
292-5935 |
633-9655 |
| Educational Technology |
292-3518 |
292-1645 |
| Fiscal Standards & Efficiency |
777-4484 |
292-6794 |
| Goals 2000 |
633-9625 |
292-1645 |
| Innovative Programs & Practices |
292-5850 |
633-9825 |
| Licensing & Credentials |
292-2070 |
292-3768 |
| Program Review & Improvement |
292-6874 |
292-6483 |
| School-to-Career & College Initiatives |
292-6341 |
984-5347 |
| Special Education Programs |
633-6833 |
984-8422 |
| Specialized Populations |
633-9715 |
633-6874 |
| Standards and Professional Development |
984-1805 |
292-7276 |
When you need to transmit official documents to
the department to comply with the requirements of the grant program,
your contact will be with the department’s Application Control
Center (ACC). The ACC is responsible for providing the department’s
centralized control function for grant administration. All documents
and correspondence related to the four areas below must be sent to the
attention of the ACC, which tracks and oversees all of the requirements
contained in Attachment A & B: Terms and Conditions of the third-party
contract for your discretionary grant award. The key documents that
must be sent to the attention of the ACC include:
- Interim and final program and fiscal reports
- Contract modification requests
- Request permission to submit a late report
- Other official contract business
You should be aware that reports, contract modification
requests, other special requests and correspondence submitted through
the ACC are the only reports, requests and correspondence
that will be officially recognized and recorded by the department. The
original and one copy must be included in the mailing (the ACC does
not have the resources to make additional copies for you). Upon receipt,
the ACC will quickly log in these documents and correspondence, and
then transmit the copies directly to the appropriate program officer
for action. Please note that the staff of the ACC maintain very close
working relationships with the program officers of the individual grant
programs; therefore, turnaround time for processing submissions to the
ACC is minimal. If your correspondence does not relate to Attachments
A & B: Terms and Conditions (the four areas above), it will be forwarded
immediately to the program officer (see Parts Seven & Eight).
In general, when writing to the DOE for any reason,
it is important that we are able to identify you, your program and the
reason you are writing. Including the following information will
ensure the quick identification of your project:
| Send the Original and One Copy
to: |
Include the Following Information: |
|
Application Control Center (ACC)
New Jersey State Department of Education
100 River View Executive Plaza
P.O. Box 500
Trenton, New Jersey 08625-0500
|
RFP/C/A # and Title
Contractor Name and County/LEA Code
Contract # and Submission Date
Project Director’s Name and Phone # Fax or Relevant Contact
Info.
Program Report # and Report Period
Fiscal Report # and Report Period
Contract Modification Details |
To summarize, when you have general questions about
the implementation of your local project, call your assigned program
officer. When you need to correspond with the department in order to
comply with the regulations and requirements of the grant program (e.g.,
submitting reports, requesting a contract modification), submit
your correspondence directly to the attention of the ACC.
Part Two: Spending Grant Funds
What Are My Responsibilities?
All contractors are expected to:
- Accomplish the goals, objectives and activities in the final approved
grant application;
- Evaluate progress toward accomplishing approved project outcomes;
- Consult with DOE staff as necessary to ensure that the goals and
objectives of the program are met;
- Expend grant funds in accordance with the applicable regulations
and the approved budget;
- Maintain separate accounts and records for each source of funds
used to support the program;
- Maintain separate records for matching (if local matching funds
are required by the RFP/C/A) and Program Income funds ;
- Maintain internal control procedures adequate to safeguard grant
funds and resources (including equipment);
- Maintain equipment inventory and disposition records for equipment
purchased with grant funds;
- Cooperate with DOE staff during on-site monitoring visits;
- Submit program and fiscal reports in accordance with the schedule
on Page Two of the contract; and
- Maintain program and fiscal records pertaining to the contract for
a period of three years after the end of the contract.
What Are My Time Lines For Spending
Grant Funds?
The contract period (contract start date to contract
end date) is the spending authorization period. It is important to review
the start and end dates of the contract, which are found on Page
One of the contract. Within this time frame, the contractor is
authorized to incur costs in accordance with the approved program activity
plan and budget, and to perform the program work. You may begin to obligate
grant funds (spend, process purchase orders, etc..), and begin
program activities, as of the start date of the contract. All
grant costs must be incurred prior to the end date of the contract and
all program work must be performed within the time frame of the contract.
How Will I Get Reimbursed For Expenditures?
All third-party contracts are issued on a cost-reimbursement
basis. This means that for each third-party contract, the amount of
grant funds paid by the DOE during the contract period cannot exceed
the amount of eligible program expenditures incurred by the contractor
for the contract period. If a contractor incurs costs in excess of the
contract amount or outside the approved GAAP line item categories, (see
Part Eight) the DOE will reimburse the contractor for eligible expenditures
only up to the dollar amount of the contract. Costs incurred in excess
of the contract amount are the sole responsibility of the contractor.
The standard payment schedule for third-party
contracts is as follows:
If equipment is approved, 100% of the approved equipment
amount (function/object codes 400-731 & 400-732) is issued in
the first payment. This allows you to place purchase orders early
in the project period to ensure timely receipt and use of equipment.
Five percent (5%) of the balance is deducted and held by the DOE.
(The 5% is released upon receipt and approval of the contractor’s
final program and fiscal reports). The remaining amount is divided
into equal monthly payments. Generally, payments are issued near the
middle to end of each month. (Note: Most payments to school districts
are made through electronic transfer. Agencies that are not school
districts will receive checks.)
If there is a delay in receipt of federal funds and/or
if the establishment of accounts results in a delay of the payments,
your first payment will include payment all previous months payments
will be included in your first payment.
How Do I Know What Expenditures Are
Allowable?
Contractors must ensure that all expenditures of grant
funds are made in accordance with the approved budget or DOE
approved contract modification (see Part Eight). All expenditures must
be allowable in accordance with the RFP/C/A guidelines and the OMB Cost
Principle Circular applicable to the type of contractor (see Part One).
During the pre-contract revision process, DOE staff
reviewed your proposed budget and program plan with reference to the
OMB circulars and RFP/C/A parameters. Generally speaking, all costs
that were approved in your budget are considered allowable in accordance
with the following criteria established in the OMB Cost Principle Circulars:
All costs must:
- reflect resources necessary and directly allocable to
the program plan (goals, objectives and activities);
- have a cost basis to support the identification of the amount
(i.e., quantity x unit cost = total request);
- be administratively efficient;
- be reasonable for the performance of the project;
- conform to any limitations or exclusions as set forth in
the RFP/C/A, program regulations, and/or cost principles most appropriate
to the contractor type;
- be treated in a consistent manner by the contractor as an
item of cost, regardless of the source of funds involved;
- be categorized in accordance with Generally Accepted
Accounting Principles (GAAP); and
- not be included as an item of cost in any other federally funded
program (no double funding!);
How Do I Know What Program Activities Are Allowable?
All grant activities have been approved by the DOE
during the precontract revision process and appear in your final
approved grant application. Changes to these activities may
require DOE approval. Contact your program officer for assistance in
determining whether DOE approval is required (see Part Eight).
Part Three: Subcontracts (Subcontractors, Consortia,
Partners, Subgrants, Subrecipients)
What Are Subcontractors?
A subcontractor is an entity (person or agency) that
has a formal financial arrangement with the contractor to provide an
integral part of the grant program. A subcontractor has responsibility
for programmatic decisions, adherence to applicable compliance requirements,
and uses grant funds to "carry-out" program activities. The
subcontractor is accountable to you, the contractor, in the use of grant
funds, subject to applicable federal and state regulations (all applicable
regulations "flow-down" to the subcontractor), and is
accountable for the delivery of subcontracted program activities (see
Part One). Individuals authorized to enter into contracts by their respective
agencies should execute a subcontract agreement. A contractor
may not enter into a subcontract with a subcontractor that is debarred,
proposed for debarment, suspended, or voluntarily excluded from receiving
federal funds.
Your final approved grant application may have included
requests for subcontracts. Subcontractors may also be called consortium
members, partners, subgrants or subrecipients. Subcontractors do not
include procurement purchases with vendors or fee-for-service
arrangements such as consultants. Unless otherwise stated in
the RFP/C/A document, all subcontractors, their budgets and program
activities were approved as part of your final approved grant application.
The DOE must approve all subcontract arrangements in advance as well
as any changes to approved subcontract budgets (see Part Eight).
Are Subcontractors Subject To Regulations?
The subcontractor is subject to the same terms and
conditions (see Part One) as the contractor, and is responsible
to you for the agreed upon scope of work (approved goals, objectives
and activities), and the expenditure of subcontract funds. In turn,
you are responsible for ensuring to us, the DOE, that the subcontractor
is and remains in compliance. The subcontractor reports to you and
you report to us. You are also responsible for the collection of
applicable subcontractor audit reports as required by OMB Circular A-133
(see Part Ten and Attachment A: Contract Terms and Conditions of the
third-party contract).
Are Consultants Or Vendors Subcontractors?
Consultants (or vendors) are not employed, either full-time
or part-time, by the grant-recipient agency (they are non-employees)
and are considered a "purchased service." They are unlike
subcontractors in that they are hired to provide a specific service
or product (product purchase or fee-for-service) within their normal
business operations. Consultants/vendors are not subject to compliance
requirements; they operate in a competitive environment and provide
services or goods to many different purchasers. Any payments for non-employee
compensation must be made through a formal contract with the individual
or entity providing the product or service and receiving payment. The
contractor is responsible for retaining a copy of the non-employee contract
for audit and monitoring purposes. The DOE requires the submission
of an interim and final Non-Employee Compensation Report (see Part
Seven).
Do I Need A Formal Contract With Subcontractors?
To meet audit requirements, it is necessary to have
a well-constructed subcontract agreement. The DOE suggests that you
consider the following general guidance when developing the subcontract
agreement terms and conditions:
- The subcontractor must have been included in the final approved
grant application submitted to the DOE, unless the RFP/C/A document
specifically includes other instructions.
- The subcontractor must not be debarred, suspended, or voluntarily
excluded from receiving federal funds (see Federal Executive Orders
12549 and 12689).
- The budget for the subcontractor must be for the same amount,
and for the same line item amounts, as included in your DOE final
approved grant application. The subcontractor has the same degree
of line item flexibility as you (see Part Eight).
- The start and end dates of the subcontract must not fall
outside the start and end dates of the contract between you and the
DOE.
Example: A contractor has received a contract
from the DOE for the period 10/1/99 -- 9/30/00, which contains a
budgeted subcontract. The subcontractor’s period of performance
may not start before 10/1/99, nor may it end after 9/30/00. No subcontract
can be issued beyond the end date of the contract between the DOE
and the contractor.
- There must be a clear and well-defined scope of work consistent
with the final approved grant application including goals, objectives,
activities, and timelines.
The DOE recommends that the following specific information
be considered when developing a subcontract agreement:
- A prohibition against subcontracting any portion of the scope
of work by the subcontractor to another entity without prior approval
of the DOE,
- A conflict of interest clause to prevent a real or perceived
situation is identified and addressed,
- Cost principles appropriate to the subcontractor’s
organizational type (OMB Circulars A-87, A-21, or A-122),
- The payment terms (generally not less than monthly) and format
of the proposed subcontract (which must be cost-reimbursement basis),
- A subcontractor reporting schedule, program and fiscal. Note:
it is important for the contractor to receive and review subcontractor
reports prior to the submission of your program and fiscal
reports to the DOE. (Again, Page two of the third-party contract
identifies your reporting due dates),
- Termination clauses for both convenience and cause (including
default),
- Record retention clauses consistent with the contract between
the DOE and the contractor (generally three years from the closeout
of the contract),
- Provisions for an audit for all subcontracts of $25,000 or
more in accordance with OMB Circular A-133,
- A property management clause consistent with OMB Circular
A-102 or A-110, as appropriate to the subcontractor,
- A records access and retention clause which permits access
to the books and records of the subcontractor by DOE personnel or
their authorized designees. (In the event that federal funds are used,
this right of access is extended to the Director of the federal funding
agency providing the funds, the Comptroller General of the United
States, and/or their authorized designees),
- An equal employment opportunity clause, which requires subcontractor
compliance with E.O. 11246, as amended by E.O. 11375 and as supplemented
by regulations at 41 CFR part 60,
- An anti-lobbying clause, which requires subcontractor compliance
with the Byrd Anti-Lobbying Modification at 31 U.S.C. 1352. (The subcontractor
must certify that no federal funds have been or will be used for lobbying
purposes relating to this subcontract),
- A clause incorporating the provisions of the New Jersey Public
Schools Contracts Law (NJSA 18A: 18A),
- A resolution of disputes clause,
- An assignment clause which prohibits the subcontractor from
assigning or transferring the subcontract to another entity,
- A governing law clause which states that the subcontract
is governed by, and shall be interpreted under, the laws of the State
of New Jersey,
- A copyright clause, in which the subcontractor agrees to
provide an irrevocable, non-exclusive, royalty free license to the
DOE, for governmental purposes, to use, reproduce, distribute, or
to authorize others to do so, materials developed by the subcontractor
which were supported by subcontract funds. (If federal funds are used
in the subcontract, this license must be granted to the federal funding
agency as well), and
- The administrative terms and conditions that the contractor
is bound by in its contract with the DOE. (These terms and conditions
must be included in all subcontract agreements). It is advisable to
include a clause in the subcontract which incorporates the terms and
conditions of the entire contract, as well as the final approved grant
application and the RFP/C/A, between the contractor and the DOE into
the subcontract by reference.
Can I Approve Changes To My Subcontracts?
Any changes (program or fiscal) requested by a subcontractor
must be reviewed by you and, if you support the changes, forwarded to
the DOE for review if they are consistent with contract modification
requirements (see Part Eight). As the contractor, you do not have
the authority to approve for subcontractors, any changes in their program
activities, any budget variances or any other changes that require prior
approval by the DOE (see Part Eight).
Part Four: Grant-Funded Equipment
How Do I Purchase Grant Equipment?
The DOE defines equipment as any instrument, machine,
apparatus, or set of articles that meets all the following criteria:
- It retains its original shape, appearance and character with use;
- It does not lose its identity through fabrication or incorporation
into a different or more complex unit or substance;
- It is nonexpendable; that is, if the item is damaged or some of
its parts are lost or worn out, it is more feasible to repair the
item than to replace it with an entirely new unit;
- It can be expected to serve its purpose for at least one year; and
- The item costs more than $500.
Federal guidelines require contractors to be prudent
in the purchase of equipment. You, along with your chief fiscal officer/business
administrator, have the responsibility for conducting a prior review
of each proposed (and budgeted) equipment purchase, to ensure that the
equipment is needed and that the need cannot be met with equipment already
in your possession. If prior approval is required for the purchase (equipment
addition or substitution from the equipment list in the final approved
grant application), the contractor must ensure that appropriate written
approval is obtained from the DOE in advance of the purchase
(see Part Eight).
Who Owns the Grant-Funded Equipment?
Unless otherwise stated in the RFP/C/A or the contract,
title to approved equipment purchased by the contractor using grant
funds vests with the contractor immediately upon acquisition. Subcontractors
who purchase approved equipment retain title to grant-funded equipment
and must comply with applicable requirements.
Who Maintains Inventory Of Equipment?
All contractors are required to maintain a property
management system that meets the requirements of the appropriate
federal OMB Uniform Administrative Requirements Circular applicable
to the contractor. According to EDGAR, you must maintain the following
minimum information for each piece of equipment:
- Description of the property
- Serial number or other identification number
- Funding source for the equipment purchase
- Title holder to the equipment
- Acquisition date
- Acquisition cost
- Percentage of grant funds (by source if split-funded) used in the
purchase of the equipment
- Location, use, and condition of the equipment
- Any equipment disposition information
The DOE suggests that an inventory tag be placed
on each piece of equipment that would link the equipment to an inventory
record containing the above information. Your agency probably has established
fixed assets inventory procedures that meet these requirements.
EDGAR also requires that you make a physical inventory
of all grant-funded equipment at least once every two years and reconcile
the results with the property records. However, the DOE requires the
completion of an equipment inventory form with each contract
mid-contract and final reports (see Part Seven).
Who Is Responsible For Equipment Security?
Contractors are also required to develop, implement,
and maintain a control system to ensure adequate safeguards to prevent
loss, damage, or theft of grant-funded equipment. Any loss, damage,
or theft must be investigated, and the DOE promptly notified in writing.
The notice to the DOE must include a copy of the police report of the
incident. In addition, contract funds cannot be used to replace equipment
that was lost, damaged or stolen, without prior written approval of
the DOE.
Must I Use Equipment Only For Grant
Activities?
During the contract period, any equipment acquired
with contract funds must be used primarily for purposes
consistent with the scope of work approved in the final approved
grant application. The contractor may make this equipment available
for use on other contracts or programs if the other use will not interfere
with the program under which the equipment was purchased.
What About Use Of Equipment After
The Contract Is Over?
Contractors who have used federal or state grant funds
to purchase equipment can use the equipment in the program for which
it was acquired, for as long as needed. When the program for which it
was purchased no longer needs the equipment, you can use the equipment
in connection with other programs currently funded by the same grantor
agency (usually the USDOE) that provided the funding for the equipment.
If the contractor does not have any programs that are currently funded
by the grantor agency that financed the purchase of the equipment, priority
use of the equipment must be given to programs received by the contractor
that were previously funded by the grantor agency. If no eligible programs
exist, the agency may use the equipment as needed or dispose of the
equipment.
How Do I Dispose of Obsolete Equipment?
Due to the variety of federal and state sources of
funding (and program specific regulations) incorporated into the DOE’s
discretionary grant programs, there is no one standard treatment
of contract-funded equipment disposition. Requests to dispose
of equipment must be submitted to your program officer
in writing. The request must contain, at a minimum, the following
information for each piece of equipment to be disposed:
- The agency identification information (see Part One);
- Contract number of the contract under which the equipment was purchased;
- Detailed description of each piece of equipment, including the make,
model number, and serial number;
- Description of the current condition of the equipment;
- Original purchase price of each piece of equipment; and
- Current value of each piece of equipment after depreciation.
DOE personnel will review the request, and you will
be advised in writing as to how to proceed.
Part Five: Matching Funds
What Are Matching Funds?
Some RFP/C/As contain a matching funds requirement.
That is, the contractor must match a certain percentage of the DOE contract
amount from local resources. These matching funds, in order to satisfy
a matching requirement, must be expended during the contract period,
and be for costs directly supporting the overall program. These matching
funds, in almost all instances, must come from non-federal sources,
(Check the RFP/C/A to be sure.) Therefore, funds that are federal
in origin, such as federal entitlement funds, are usually not allowed
as matching funds. In certain instances, program income funds may be
used to satisfy a matching requirement. However, the DOE must approve
all uses of program income funds (see Part Six).
All costs claimed by the contractor as matching costs
must meet the standards for allowable costs in accordance with the OMB
Cost Principle Circulars described earlier (e.g., unallowable costs
cannot be counted as matching costs). In addition,
costs claimed as matching costs on one grant program cannot be claimed
as matching costs on another grant program, regardless of whether the
costs are from cash matching funds or in-kind contributions. If there
are any questions as to whether a contract has a matching requirement,
please consult the RFP/C/A document for the grant program or contact
your assigned program officer.
How Are Matching Funds Treated?
Matching funds must be expended at approximately the
same rate as the grant funds being matched, otherwise the contractor
runs the risk of not having enough matching expenditures incurred before
the end date of the contract. Insufficient matching expenditures may
result in some or all of the contractor’s grant-funded expenditures
being disallowed by the DOE.
What Qualifies As A Match?
Matching requirements may be satisfied through the
following:
- Cash match,
- In-kind contributions, or
- Some combination of the above.
Funds allocated for matching purposes, but unspent
at the end of the contract period does not qualify as matching expenditures.
In-kind contributions must be valued in accordance
with the provisions of the OMB Uniform Administrative Requirement Circular
applicable to the contractor. In addition, the contractor must retain
records of matching expenditures for a period of three years after the
submission of the final program and fiscal reports to the DOE.
Part Six: Program Income
Can My Agency Generate Income Through
My Grant?
Program income is defined as gross income earned
by the contractor that is directly generated by a grant-supported activity
or earned as a result of the grant. It includes, but is not limited
to: income from fees for services performed, the use or rental of real
or personal property acquired under the grant, the sale of commodities
or items developed or fabricated under the grant. Certain types of programs
will contain provisions for program income. Generally speaking, program
income should not be generated as a result of receiving a grant. You
should check the RFP/C/A for specific program income information. See
"What About Copyrights?" in this section if program income
is being derived from materials developed or fabricated under the grant.
Can I Spend Program Income?
According to federal regulation, program income may
be handled in accordance with one of the three following methods. The
DOE will determine which methodology applies to a particular RFP/C/A
or contract.
- Deduction method. The amount of program income funds generated
are to be used to offset the level of financial assistance provided
by the DOE under the third-party contract, and used for allowable
costs under the program.
This is the "default method" of handling
program income and, unless otherwise stated in the third-party contract
or RFP/C/A, this is the method to be used.
Example: If the contract amount is $100,000 and
the contractor generates $5,000 in program income, although a formal
contract modification is not needed, the total available contract
amount is understood to be reduced by $5,000 and now becomes $95,000).
- Additional costs method. The amount of program income funds
generated is to be used for allowable costs in addition to the contract
amount. The DOE will approve this method for certain grant programs.
Example: If the contract amount is $100,000 and
the contractor generates $5,000 in program income, the contractor
can use the program income funds for allowable costs in excess of
the contract amount. The contract amount remains unchanged).
- Cost-sharing or matching. The amount of program income may
be used to satisfy a matching or cost-sharing requirement. The contract
amount remains unchanged.
Be sure to check the RFP/C/A and/or the third-party
contract.
What About Program Income Generated After The Grant
Is Over?
There are no general requirements governing the use
of program income generated after the contract period. If grant programs
are designed to become self-supporting, program income generated after
grant period may be used to sustain the program (check the RFP/C/A
for additional information).
Do I Need To Keep Records For Program
Income?
Contractors who earn program income must maintain separate
records for the expenditure of these funds. If a contractor has
more than one contract that generates program income, separate records
for each contract’s revenue stream of program income must be maintained.
These funds may not be co-mingled with contract funds, nor co-mingled
with other program income funds. Contractors are required to retain
expenditure records of these funds for three years after the end of
the fiscal year in which the grant support terminates. The DOE will
provide directions for reporting program income during the grant period.
Example: A contractor is awarded a contract for the
period September 1, 1999 to August 31, 2000, and generates program
income, as a result of the contract, during that period. The contractor’s
fiscal year runs from July 1 to June 30. The contract ends in the
fiscal year ending June 30, 2001. Therefore, the contractor must retain
program income records for this contract until June 30, 2004.
Can I Copyright Material?
Contractors who develop materials during the course
of a grant-supported program may exercise their right to ownership by
copyrighting the materials. However, the contractor (and all subcontractors,
if the subcontractor develops materials) must grant to the DOE and the
federal agency providing the funds (if federal funds are used), for
governmental purposes, a royalty-free, non-exclusive and irrevocable
license to reproduce, publish, or otherwise use these materials and
to authorize others to do so.
This license to the DOE covers any and all materials
developed under the contract (deliverables) but does not preclude the
contractor from exercising its right of ownership of the materials,
or prevent the contractor from selling or licensing the materials. If
the materials are to be licensed, or sold by the contractor, then the
net proceeds constitute program income as defined, and the funds
must be treated accordingly.
- IMPORTANT NOTE: At least one copy of all materials developed
by the contractor during the period of contract must be forwarded to
the DOE at time of contract closeout.
Part Seven: Contract Monitoring and Reporting
Will My Program Be Monitored On-Site?
During the period of the contract, the DOE program
office staff may visit your agency. Since the program office must
certify whether a contractor is eligible to continue into the next
year of funding, monitoring is required for all multi-year programs.
In addition, the program officer will select single-year programs
for on-site monitoring visits.
What Occurs During Contract Monitoring?
The program officer will observe the contractor’s
program in action, meet with staff and review program and fiscal records.
The program officer may conduct an on-site monitoring visit of any
subcontractor(s) as well.
The DOE assures to its grantor agency that subgrant
recipient agencies comply with applicable state and federal requirements
and that performance goals are being achieved. The DOE conducts on-site
monitoring to determine the extent to which you, the contractor, are
complying with the provisions of the contract, and to determine the
progress you are making towards accomplishing the goals, objectives
and activities in the final approved grant application.
The program officer prepares a written report that
is shared with you, the project director and your Chief Executive
Officer. This report details any concerns that the program officer
may have with the status of the program. The contractor may be asked
to address any deficiencies noted by the program officer in a corrective
action plan.
What If I Am Not Monitored On-Site?
All contracts, whether or not they are subject
to an on-site monitoring visit, are subject to desk monitoring.
Desk monitoring is accomplished through the submission and review
of interim and final program and fiscal reports. In most cases, interim
reports are due quarterly and final reports are due to the DOE within
sixty (60) days after the end date of the contract. Page Two of your
third-party contract contains the report due dates (see Part One and
Part Seven).
What Reports Are Required?
Page Two of your third-party contract contains the
due dates for interim and final program and fiscal reports. The RFP/C/A
and this section of the manual contain information about the required
content of those reports.
In general, the following reports are required:
| DUE |
PROGRAM REPORT |
FISCAL REPORT |
| FIRST
QUARTER |
PROGRAM
ACTIVITY PLAN REPORT* |
EXPENDITURE
REPORT
(page 5 of the third-party contract ) |
| SECOND
QUARTER |
PROGRAM
ACTIVITY PLAN REPORT* |
EXPENDITURE
REPORT
INTERIM EQUIPMENT INVENTORY REPORT
INTERIM NON-EMPLOYEE COMPENSATION REPORT |
Multi-year
programs add:
Mid-contract Fiscal PERFORMANCE Review -
- INTERIM PERSONNEL REPORT
- INTERIM SUBCONTRACT REPORT
- INTERIM CONSULTANT REPORT
|
| THIRD QUARTER |
PROGRAM
ACTIVITY PLAN REPORT* |
EXPENDITURE
REPORT |
| FINAL
REPORT |
FINAL
PROGRAM ACTIVITY PLAN REPORT* |
FINAL
EXPENDITURE REPORT
FINAL EQUIPMENT INVENTORY FORM
FINAL NON-EMPLOYEE COMPENSATION FORM |
*Additional program specific reports may be required
in the RFP/C/A and/or by the program officer.
How Do I Complete Reports?
Use the following instructions to complete the required reports.
(Copies of all reports are found in the appendices)
Program Reports
Program Activity Plan Reports
For the first report: Photocopy the approved Program Activity
Plan from the final approved grant application. (There should
be "open" triangles in the Report Period column in the quarter(s)
relevant to the completion of the activity.)
- For each activity completed, fill in the appropriate triangle
for the quarter.
- For each activity not completed by the quarter indicated
on the activity plan:
- Draw an arrow to the quarter in which the activity
will be completed.
- Include a narrative to explain: (1) the reason(s)
the activity could not be completed as originally planned, (2)
how the activity will be completed as revised, and (3) how the
change will impact the program overall.
- Include any program specific data/information as required in the
RFP/C/A and/or by the DOE.
- Sign (Project Director) and date of the report.
For subsequent reports: Quarterly reports must be cumulative
in nature. Photocopy the previous report, and follow the instructions
under 1 through 4 above.
Final Program Activity Plan Report
Photocopy the last quarter report. Fill in the triangles as appropriate.
Using the final approved grant application Evaluation Plan, prepare
and submit a narrative report detailing:
- A comparison of actual accomplishments to the approved goals and
objectives. Where the outcomes of contract programs can be readily
quantified, such quantitative data must be provided.
- Reasons why established goals and objectives were not met (if
applicable).
- Any program specific data/information as required in the RFP/C/A
and/or by the DOE.
- Signature (Project Director) and date of the report.
- IMPORTANT NOTE: At least one copy of all materials developed
by the contractor during the period of contract must be forwarded to
the DOE at time of contract closeout.
Fiscal Reports
Expenditure Reports
Photocopy page 5 (Expenditure Report) of the DOE third-party contract.
- Enter the Reporting Period in block #29.
- Indicate the Basis of Report in block #30.
- Record expenditures to date in the Cumulative Expenditures column.
(Report expenditures in the appropriate approved budget column(s),
i.e., State, federal, Other)
- The Chief Fiscal Officer must sign and date the report.
- Include any additional reports as required by the DOE (i.e.,
program income, matching, etc.)
Interim Equipment Inventory Report (Submitted with
the mid-contract reports)
For each item of equipment purchased to date, provide
the following information on the Interim Equipment Report form:
- Check the box if there are no expenditures to report. (complete
and send)
- Make necessary copies of the form. (Indicate page __ of ___)
- Complete the as of __/__/__date of the report.
- Fill in Header Items 1 - 4.
- Make/model/description (including purpose for use, i.e., instructional
or non-instructional)
- Inventory tag number
- Purchase date
- Amount budgeted
- Purchase cost
- Location
Interim Non-Employee Compensation Report (Submitted with the mid-contract
reports)
Non-employee compensation includes fees or other
forms of compensation for services rendered by an individual or entity
that are not employed by the contractor (i.e., consultants, subcontractors,
workshop presenters, etc.).
On the Interim Non-Employee Compensation Report:
- Check the box if there are no expenditures to report. (complete
and send)
- Make necessary copies of the form. (Indicate page __ of ___)
- Complete the as of __/__/__date of the report.
- Fill in Header Items 1 - 4.
- Complete all information. (Enter N/A if not applicable)
- Obtain business administrator and project director’s signatures.
- IMPORTANT NOTE: Any payments for non-employee compensation
must be made through a formal contract with the individual or entity
receiving payment. The contractor is responsible for retaining a copy
of the contract for audit and monitoring purposes.
Mid-Contract Fiscal Performance Review (for multi-year
(Request for Continuation) programs only)
Submit all three forms with your mid-contract
EXPENDITURE report.
Through the Mid-Contract Fiscal Performance Review,
the DOE will collect specific information regarding expenditures made
in four key areas: consultant services, equipment, staff (salaries
and fringe benefits) and subcontracts.
For each of these four areas, contractors are required
to provide the following information on the forms included in this
review package. A narrative report must be provided explaining any
substantial deviation from anticipated and/or approved expenditures
up to the midpoint of the grant program.
Each form must be signed and dated by the business
administrator and project director. Copy forms as needed for additional
space.
Interim Personnel (Salaries and Fringe Benefits) Report (Submitted
with the mid-contract reports)
For each grant-funded staff position, provide the
following information on the Interim Personnel Report form:
- Check the box if there are no expenditures to report. (complete
and send)
- Make necessary copies of the form. (Indicate page __ of ___)
- Complete the as of __/__/__ date of the report.
- Fill in Header Items 1 - 4.
- Name of person
- Position title
- Status (full-time or part-time)
- Total Salary budgeted
- Total Salary expended to date
- Total Fringe budgeted
- Total Fringe expended to date
If one individual is serving in two grant-funded
positions (e.g., teacher and counselor), enter each position
separately on the Interim Personnel Report form. Complete all columns
for each
Interim Subcontract Report (Submitted with the mid-contract
reports)
For each subcontractor who has incurred expenses
as of the report date, provide the following information on the Interim
Subcontract Report form:
- Check the box if there are no expenditures to report. (complete
and send)
- Make necessary copies of the form. (Indicate page __ of ___)
- Complete the as of __/__/__ date of the report.
- Fill in Header Items 1 - 4.
- Subcontractor name
- Total budgeted
- Total expended by budget category (e.g., equipment, instructional
supplies)
Interim Consultants Report (Submitted with the mid-contract
reports)
For each consultant engaged as of the report date,
provide the following information on the Interim Consultant Report
form:
- Check the box if there are no expenditures to report. (complete
and send)
- Make necessary copies of the form. (Indicate page __ of ___)
- Complete the as of __/__/__ date of the report.
- Fill in Header Items 1 - 4.
- Name
- Description of services provided (e.g., staff training, program
evaluation)
- Date(s) of service
- Amount budgeted
- Amount expended
Final Expenditure Report
Photocopy page 5 (Expenditure Report) of the DOE third-party contract.
- Check the "Final" box and enter the Reporting Period
(entire contract timeframe) in block #29.
- Indicate the Basis of Report in block #30.
- Record expenditures in the Cumulative Expenditures column. (Report
expenditures in the corresponding approved budget column(s), i.e.,
State, federal, Other)
- The Chief Fiscal Officer must sign and date the report.
Final Equipment Inventory Report (submitted with the Final Expenditure
Report)
- Check the box if there are no expenditures to report (complete
and send).
- Make necessary copies of the form. (Indicate page __ of ___).
- Complete the as of __/__/__ date of the report.
- Fill in Header Items 1 - 4.
- Complete all information. (Enter N/A if not applicable).
- Obtain the Business Administrator and Project Director’s
signatures.
Final Non-Employee Compensation Reports (submitted with the Final
Expenditure Report)
- Check the box if there are no expenditures to report (complete
and send).
- Make necessary copies of the form (Indicate page __ of ___).
- Complete the as of __/__/__ date of the report.
- Fill in Header Items 1 - 4.
- Complete all information (Enter N/A if not applicable).
- Obtain Business Administrator and Project Director’s signatures.
Where Do I Send Reports?
|
Send the Original and One Copy to:
|
| Application Control Center
New Jersey State Department of Education
100 River View Executive Plaza
P.O. Box 500
Trenton, New Jersey 08625-0500
|
è IMPORTANT
NOTE: If the original and one copy of the reports are not
mailed directly to the Application Control Center (ACC), the report
will not be recorded as having been received by the DOE and will not
count toward compliance with the requirements of the grant program.
What Happens If I Miss A Report Due Date?
The DOE will notify you one time of delinquent reports.
Since reports are considered part of desk monitoring, the DOE reserves
the right to withhold payments, suspend contract activities or terminate
this contract if reports are not submitted as required.
For multi-year programs, Mid-contract Fiscal Performance
Reports will be used as documentation for on-site monitoring by
your program officer. On-site monitoring and approved reports are
also necessary for certification by the DOE to continue to be eligible
to apply for continuation funding.
If you anticipate a delay in submission of your report(s),
contact your assigned program officer.
What Does The DOE Do With Reports?
Program reports are reviewed to determine the extent
to which the contractor is making progress in meeting the stated goals
and objectives in the approved activity plan. Fiscal reports are reviewed
to determine the extent to which the contractor has adhered to the
approved budget.
If discrepancies are noted in either the program
or fiscal reports (or through on-site monitoring), the program officer
will contact you to obtain a written response addressing the DOE concerns.
Part Eight: Budget Flexibility and Contract Modifications
How Much Flexibility Do I Have Within
My Approved Budget?
Section XIV of Attachment A: Contract Terms and Conditions
contains guidelines for budget modifications. Generally speaking,
contractors may move funds budgeted in one GAAP category to another
GAAP category without DOE approval when:
- the transfer of funds does not result in a change in the scope
of work (scope of work means program changes representing a
significant departure from the originally approved project under
the contract);
- the funds are not transferred to or from a restricted line
item such as equipment, subcontracts or indirect costs;
- IMPORTANT NOTE: The subcontractor is subject
to the same terms and conditions (see Part One) as the contractor,
and is responsible to you for the agreed upon scope of work (approved
goals, objectives and activities), and the expenditure of subcontract
funds. Any changes (program or fiscal) requested by a subcontractor
must be reviewed by the contractor and, if you support the changes,
forwarded to the DOE for review if they are consistent with contract
modification requirements. As the contractor, you do not
have the authority to approve for subcontractors any changes in
their program activities, any budget variances or any other changes
that require prior approval by the DOE.
- the funds are transferred to a previously budgeted line item.
(Contractors may not move funds to an unbudgeted line item without
written DOE approval);
- the transferred funds will not be used for expenditures that are
specifically disallowed by the language in the RFP/C/A document,
the applicable OMB Cost Principle Circular and the contract. Expenditure
for costs disallowed by the RFP/C/A, the contract and/or the applicable
OMB Cost Principle Circular by the DOE will be subject to monitoring
and/or audit findings; and
- the cumulative amount of all transfers will be below
ten (10) percent of the total contract amount, or $10,000 whichever
is less.
When Must I Write To Get Approval
To Change My Grant?
You may find it necessary to request changes to what
you had originally proposed in your final approved grant application.
When this occurs, you need to obtain written approval from
the DOE. This formal DOE approval process is called a Contract
Modification.
- IMPORTANT NOTE: All requests for a contract modification
must be received by the Application Control Center a minimum
of 90 days prior to the end date of the contract.
Example: If your contract ends 8/31/00, any contract modification
request must be received by the ACC no later than 6/1/00.
Attachment A: Section XIV identifies the following conditions that
require prior written DOE approval:
- Changes to the approved scope of work (see above);
- Transfer of expenditures to or from an unbudgeted line item;
- Transfer of expenditures to or from the indirect costs line;
- Costs requiring prior approval pursuant to the Federal
Cost principles (see Part Two);
- Budget category expenditure variances, the cumulative total
of which equals or exceeds ten (10) percent of the total contract
amount, or $10,000, whichever is less (called the contract
threshold);
- Any additions, deletions or substitutions to the approved equipment
purchases;
- Increases or decreases in the total contract amount;
- Extension or contraction of contract time frame; and
- changes to approved subcontracts.
To assist in determining when DOE approval is required,
a Contract Modification DOE Approval Checklist is contained
in the Appendices.
Can You Explain The Restricted Line
Items (Equipment, Subcontracts and Indirect Costs Changes)?
Equipment: Contractors are limited to the
specific equipment items listed in the final approved grant
application budget. Unbudgeted equipment purchases, regardless of
dollar amount, require prior approval.
Example: A contractor budgets $6,000
for three computers at $2,000 each. The contractor later finds that
it can purchase four computers at $1,500 each. The contractor
cannot purchase the fourth computer without prior DOE approval,
even though funds are available.
Example: A contractor budgets $4,000
for two automobile diagnostic computers at $2,000 each. The contractor
later finds that the total purchase price of the two computers will
be $5,000, or $2,500 each. The contractor may purchase the two APPROVED
computers without prior DOE approval. The additional funds
would need to be identified as local, in-kind or transferred from
an underexpended line. The "over-expenditure" in the equipment
line (and all other budget variances) must stay within the contract
threshold limit (10% or $10,000, whichever is lower). If this purchase
will result in a cumulative budget transfer in excess of the contract
threshold limit, then the contractor must request
prior approval. (Please note that there has
not been a change to the specific approved equipment.)
Example: A contractor does not budget
for the purchase of equipment, and wishes to purchase equipment.
If the equipment costs are allowable under the RFP/C/A, the contractor
must obtain prior DOE approval for the purchase, regardless
of whether the costs involved are under the threshold limit for
the grant.
Subcontracts: All subcontractors are included
in the approved budget. Contractors may not substitute or add subcontractors
without prior written approval from the DOE, regardless of whether
the subcontracting costs would remain within the threshold limits.
The subcontractor is subject to the same terms and conditions (see
Part One) as the contractor, and is responsible to you for the agreed
upon scope of work (approved goals, objectives and activities), and
the expenditure of subcontract funds. Any changes (program or fiscal)
requested by a subcontractor must be reviewed by the contractor and,
if you support the changes, forwarded to the DOE for review if they
are consistent with contract modification requirements. As the
contractor, you do not have the authority to approve for subcontractors
any changes in their program activities, any budget variances or any
other changes that require prior approval by the DOE.
Transfers between direct and indirect costs:
Indirect costs are those costs that are incurred as a result of agency
activities, and provide a benefit to the contract, but cannot be allocated
directly to a contract. Examples of such indirect costs include facilities,
utilities, accounting and bookkeeping services, legal services, contract
administration systems, procurement systems, general operating expenses,
etc. As these costs cannot be directly allocated to
a particular contract or contracts, an indirect cost rate is used
instead. Contractors may not cover cost over-runs of direct costs
from cost under-runs of indirect costs, or vice versa. Direct costs
are approved for a specific purpose just as indirect costs are approved
to cover general operating expenditures. The agency cannot transfer
costs between these two types of costs without requesting and obtaining
DOE approval.
What Should Be Included In A Contract
Modification Request?
The contract modification process requires substantial
programmatic and fiscal review by the DOE. If a contract modification
request is not submitted directly to the ACC, under the signature
of the CSA/CEO, or does not contain the necessary information to complete
the review, it will be returned and may not be considered.
The basic components of a well-constructed contract
modification request include the following:
The reason for the change: A compelling
programmatic justification and rationale for the need for
the requested change which must be in keeping with the intent, goals,
and objectives of the RFP/C/A, the project application and contract.
As the agent of the governing board, the CSA/CEO signature provides
assurance both that the modification is necessary and that it
will directly benefit the grant. An authorizing board resolution
will also be required if there will be formal changes to the contract
(DOE will notify you when this is required).
The impact on the program: The impact,
if any, on the program’s goals and objectives due to the proposed
changes must be identified. The DOE may also require a modified
activity plan form. If so, affected final approved grant application
pages must be submitted, marked with the changes and dated.
What is changing: If budget changes
are necessary, the request must include revised budget detail forms
with revisions clearly marked, including program activity links
using goal and objective numbers. Again, you must justify all
decreases as well as increases to budget line items. The
Chief Fiscal Officer must certify budget revisions through his/her
signature. (Forms are available in the Appendix and must be used
when submitting a contract modification request).
- IMPORTANT NOTE: The contractor cannot implement contract
modifications until official written notification of approval by DOE
is received. Any changes enacted prior to notification of approval may
be disallowed or may become the object of an audit finding, and are
done so at the contractor’s own risk. Receipt and review of a contract
modification request by the DOE does not imply or indicate pending approval.
Approval of a contract modification is dependent upon a justifiable
programmatic and/or fiscal need that will be of direct benefit to the
program and that is permissible under the established RFP/C/A parameters.
Do You Have Examples of Good Contract
Modification Requests?
The following are examples of requests with acceptable level of detail:
Example #1
| Item |
Original Amount |
Revised Amount |
Amount of Change |
| 200-580 |
$2,825 |
$5,750 |
+ $2,925 |
| 200-600 |
$2,925 |
$0 |
-$2,925 |
The reason for the requested revision(s) is:
Although registration fees for the annual Parents
as Teachers summer conference were included in the original grant
budget, transportation, hotel, and meal costs were inadvertently
omitted. Supplies originally budgeted to the grant for the office
is being paid for by the agency, making a total of $2,925 available.
| RT Airfare, Philadelphia to St. Louis - $360 X 2 persons |
$720 |
| Hotel costs - $85 X 4 nights |
340 |
| Meals - $40/day X 4 days X 2 persons |
320 |
TOTAL
|
$1,380 |
Two staff members are in need of Parents as Teachers
training for the 0-3 years age group. In the past, this training
has been offered in Newark, Delaware, keeping transportation costs
at a minimum. This year, the training is not being offered within
a reasonable distance and will mean that airfare, hotel and meal
costs must be added to the original budgeted amounts. These are
as follows:
| RT Airfare, Philadelphia to St. Louis - $360 X 2 persons |
$720 |
| Hotel costs - $85 X 5 nights (double occupancy) |
425 |
| Meals - $40/day X 5 days X 2 persons |
400 |
TOTAL
|
$1,545 |
The requested revision will result in the following change(s) (if
any) of the approved activity plan.
No change
___________________________________________________________________________________________
Example #2
| Item |
Original Amount |
Revised Amount |
Amount of Change |
| 200-590 |
$1,045 |
$2,435 |
+ $1,390 |
| 200-580 |
$4,000 |
$2,610 |
- $1,390 |
The reason for the requested change(s)
$1,390 in funds budgeted for staff travel will
not be needed since these positions were filled late. The budget
was originally prepared using a calculation figure of 25 families
as a target maximum enrollment. When the grant request was approved,
the program was asked to instead target 35 families for participation.
This number has been achieved, resulting in greater than expected
numbers of participants in professional development training.
Fee for 10 additional participants @ $113.10 each
Another unforeseen expense has been the payment
of GED fees to the State for participants who are ready to take
the exam. Six enrollees have taken the exam already this year, and
it is anticipated that four more may take it prior to the end of
the year.
10 adult GED fees @ $25.85
|
$258 |
The requested revision will result in the following change(s) of
the approved activity plan:
The program will pay the GED test fees for any
participant who has been pre-tested by adult education staff and
determined to be ready for the examination (GOAL: To provide literacy
training for parents). The program will also add an additional 10
participants to the professional development activity.
____________________________________________________________________________________________
Example #3
| Item |
Original Amount |
Revised Amount |
Amount of Change |
| 100-610 |
$2,185 |
$4,341 |
+ $2,150 |
| 400-731 |
$10,500 |
$8,344 |
- $2,150 |
The reason(s) for the requested revision is:
Due to a price reduction for computers, there is
a surplus of funds in 400-731 in the amount of $2,156. Because the
scheduling of additional staff to be trained during the summer,
money for materials and supplies are needed.
| Training materials (inc. books, paper etc.)10 @ 215 each |
$2,150 |
| TOTAL |
$2,150 |
The requested revision(s) will result in the following change(s)
of the approved activity plan:
No Change
Example #4
| Item |
Original Amount |
Revised Amount |
Amount of Change |
| 100-101 |
22,500 |
25,000 |
+$2,500 |
| 200-200 |
$7,700 |
$7,943 |
+$243 |
| 200-320 |
$15,000 |
$13,000 |
-$2,000 |
| 200-600 |
$1,000 |
$257 |
-$743 |
The reason(s) for the requested revision is:
Due to increasing enrollment for our summer program, it has become
necessary to increase the number of teachers to provide the instructional
content of the program.
1 teacher X $25/hour X 100 hours = $2,500
Accordingly, the fringe benefit request will need to be adjusted.
$2,500 X 7.65% FICA = $191 + 2.09% TPAF = $52. TOTAL = $243.
Workshop presenters $2,000 and workshop supplies $743 will be assumed
by the agency as agency-funded costs.
The requested revision(s) will result in the following change(s)
of the approved activity plan:
No change
What Are Some Common Problems With Contract Modification
Requests?
- Lack of detail as to the need for, and nature and substance
of the request. A common problem with contractor modification
requests is the lack of detail (programmatic, budgetary, etc.)
sufficient to enable DOE staff to evaluate the merits of the request.
Requests that do not have a compelling programmatic rationale and
justification, are not well thought out, or lack adequate detail
are very time-consuming to review and process, as the program officer
may be required to contact the contractor several times to obtain
the needed information.
As a general rule of thumb, the degree of cost
detail that a contractor needs to provide in a modification request
is the same level of detail that is required on the budget detail
forms in the final approved grant application. The use approved
Budget Detail forms to show requested revisions will facilitate
the review of your request.
- IMPORTANT NOTE: Do not submit a request for a contract
modification merely to spend unexpended balances. This reason is
not considered adequate or justified and will be automatically denied
by the DOE.
- Modifications submitted towards the end of the grant program.
Per Attachment A: Contract Terms and Conditions, no request for
modifications will be reviewed if it is submitted to the DOE within
90 days of the contract end date. As a general rule, any requests
for contract modification(s) should be submitted to the DOE as soon
as the need for a modification becomes known. The sooner the request
is submitted the sooner it can be evaluated and, if approved,
the sooner the program will benefit.
- Lack of response from contractors to requests for information.
A major source of concern is that some contractors have not been
responsive to requests from the program officer for additional information.
While some problems may arise, (e.g., key people may not be readily
available especially during the summer months), we recommend
strongly that the contractor designate someone to act as a contact
person for all contract modification requests (usually the project
director). This person should be able to respond to any requests
for information from the program officer during the time that the
request is pending.
If a contractor should decide not to pursue a previously
submitted request before a decision has been made, the contractor
should send a letter (to the same address to which the original
request was sent) withdrawing the request so that the request can
be removed from consideration.
- Contractor revising modification requests during administrative
review. Additional information required to review the modification
request will be solicited by the program officer. Contractors should
respond with only the information that the program officer
has requested. Unsolicited information unrelated to the information
requested will not be considered.
Example: A contractor submits a request
to move $2,000 from travel to instructional supplies, but provides
no cost detail in the original request. The program officer requests
cost detail on the instructional supplies to be purchased. The contractor
provides cost detail on $2,000 of instructional supplies. Furthermore,
the contractor indicates that it also wants to reallocate $1,500
from purchased services into staff salaries. The request to move
funds from purchased services into staff salaries will automatically
be denied by the DOE, as it was a change not solicited by the program
officer.
- Mathematical errors. Mathematical errors will compromise
your request. Please always check your math, as accuracy is essential.
Your numbers must add up. Also, remember to round all figures
down to the nearest dollar.
- Circumventing RFP/C/A guidelines. The restrictions
on allowable and non-allowable uses of funds in the RFP/C/A document
are firm. Contractors are strongly advised to review their proposed
modification request against the RFP/C/A guidelines, and not to
submit any modification requests that are in clear violation of
the RFP/C/A guidelines. If a modification request is found to be
in violation of the RFP/C/A guidelines, the DOE will automatically
deny the request.
- Wrong budget. Sending a contract modification request
based on a budget that is not the final approved budget will
delay your review. If you have had previous budget modifications
approved by the DOE, be sure you are working with the most up-to-date
DOE approved budget.
Where Do I Send My Contract Modification
Request?
Requests for contract modifications are to be sent
to:
| New Jersey State Department of Education
Application Control Center
100 River View Executive Plaza
P.O. Box 500
Trenton, New Jersey 08625-0500
|
- IMPORTANT NOTE: All requests for contract modifications
must contain the contractor identification information (see Part One).
What Happens To My Request Once It
Has Been Submitted?
Once the Application Control Center has received
the request, staff review it for completeness in accordance with the
guidelines contained in the contract modification packet (see Appendix).
If it is incomplete, it will be returned to you. If it contains the
necessary information, copies are immediately forwarded to the program
officer for review.
The program officer will make a recommendation either
to proceed with the modification request or deny the request. If multiple
actions are requested, an item by item recommendation is made. If
the recommendation is to proceed, the request and recommendation are
forwarded for final review. The Application Control Center notifies
the contractor in writing of the DOE’s decision and requests
an authorizing resolution from the agency.
Part Nine: Contract Closeout
How Do I Close Out My Contract?
In order to close out a contract, you need to prepare
and submit the final program and final expenditure reports, along
with any deliverables specified in the RFP/C/A or the contract, to
the DOE within sixty (60) days after the end date of the contract
(see Part Seven).
In order for a contractor to submit a final expenditure
report, it must liquidate (pay) all outstanding obligations, such
as open purchase orders, within this period, so that the final expenditure
report can be prepared and submitted.
Can Costs Be Disallowed By The DOE?
The final program and expenditure reports are reviewed
by DOE staff to determine the extent to which the contractor has achieved
the approved goals and objectives of the program and to what extent
the contractor has complied with the approved budget. Any costs claimed
by the contractor that are disallowed by DOE are noted and the final
approved expenditure amount is adjusted accordingly.
- IMPORTANT NOTE: Any reported expenditure that violates
the terms and conditions of the contract (i.e., over threshold changes,
changes to approved equipment, expenditures in unapproved line items,
disallowed program activities, etc.) will be automatically disallowed
by the DOE and a refund will be requested.
When Do I Get The Final Payment?
Once the final program and expenditure reports are
received and approved by the DOE, the final payment of five percent
of the contract amount (less any adjustments for prior overpayments,
disallowed costs, etc..) is made to the contractor. No final
payments will be made in the absence of required reports.
Do I Send A Check If There Are Unspent
Grant Funds?
In the event that you received payments in excess
of the total eligible program expenditures (minus any adjustments),
the DOE will send you a refund request for the difference.
Do not send a refund check with your final report. Unspent
contract funds may not be retained by the contractor for any reason
and must be returned to the DOE.
- IMPORTANT NOTE: Please be advised that delinquency
in the remittance of a refund will affect the agency’s eligibility
for future grant awards.
How Long Do I Keep Grant Records?
Generally speaking, financial records, program records,
all supporting documentation and other records pertinent to a grant
must be retained by your agency for a period of three years
from the submission and approval of the final program and fiscal
reports by the DOE. Program income records, and all supporting
documentation must be retained for a period of three years
after the end of the contractor’s fiscal year in which the
contract ended (see Part Six).
Any and all records, financial and programmatic,
that relate to audits, appeals, litigation, or the settlement of claims
which may arise out of the performance of the project must be retained
until the audits, appeals, litigation, or claims are resolved.
The DOE, or any of its duly authorized representatives
retain access rights to any pertinent books, documents, papers and
records of the agency to make audits, examinations, excerpts and transcripts.
If federal funds are used in the awarding of the contracts, the term
"authorized representatives" includes, but is not limited
to, the director of the federal funding agency providing the funds,
the Comptroller General of the United States, or any of their duly
authorized representatives. This access also extends to the records
of any and all subcontractors (including participating organizations
in collaborative efforts).
Part Ten: Audit
Will I Be Audited?
Again, Attachment A, Contract Terms and Conditions,
Section XIII provides guidance regarding audits. Recipients of federal
and/or state grant funds are required to have an annual audit performed
in accordance with the Single Audit Act, Federal OMB Circular A-133
and State Circular 98-07. (For contractors with Internet access,
a copy of the New Jersey State Grant Compliance Supplement may be
found on the World Wide Web at http://www.state.nj.us/treasury/omb/educ.pdf.)
The state policy regarding grant recipients is as follows:
- Recipients that expend $300,000 or more in federal and/or state
funds within their fiscal year must have an annual organization-wide
audit performed in accordance with the revised Single Audit Act,
OMB Circular No. A-133.
- Recipients that expend less than $300,000 but $100,000 or more
in federal and/or state funds within their fiscal year must have
either an annual financial audit performed in accordance with Government
Auditing Standards or an annual program specific audit performed
in accordance with the revised Single Audit Act, OMB Circular No.
A-133 Revised, Section 235.
- Audit reports for recipients requiring an annual organization-wide
audit as indicated in No. 1 above, must include the auditor’s
comments on internal controls over state grants and state aid, and
compliance with material terms and conditions of state grant agreements,
state aid programs, and applicable laws and regulations.
- Single audit reports must also include a supplementary schedule
of the recipient’s state grant and state aid financial assistance
programs. This schedule, entitled Schedule of State Financial
Assistance, must show the following information for each grant
program:
State Grantor Department
Program Title
State Account Number
Program Amount (Funds received)
Program/Grant Contract period
Total Disbursements
- IMPORTANT NOTE: Failure to comply with these audit requirements
could jeopardize your eligibility for future grant funding. You should
consult your business administrator and independent accountant regarding
these requirements.
How Can I Safeguard My Grant Against
Audit Findings?
You have already taken the first step in safeguarding
your grant by reading this manual and reviewing all grant documents!
The DOE has an Office of Compliance that,
among other things, oversees the use of state and federal funds by
the DOE and its grant recipient agencies. There is a chance that your
agency could be selected for a contract audit by this office.
Again, paying careful attention to the terms, conditions and guidance
presented here, will help safeguard your grant against audit findings.
For your convenience, the DOE Office of Grants
Management and Development has compiled the following list of
"Common Audit Findings." Keep these as a reference
when managing your discretionary grant program.
- Grant funds used for expenses not included in the budget. For
example, travel expenses incurred and reported, but not budgeted;
or type of equipment purchased was not approved in the budget.
- Costs incurred prior to or subsequent to the contract time frame,
as shown on page One of the contract.
- Costs reported on final expenditure report were more than the
costs recorded in the accounting records.
- Costs reported, per budget category, exceed the $10,000/10% threshold
rule and require but did not receive DOE approval.
- Costs reported/recorded in an incorrect expense category, which
results in costs exceeding the $10,000/10% rule.
- Reported costs include amounts encumbered at the end of the grant
period, but never paid for goods or services received after the
end of the grant period (never liquidated expenditures).
- Costs were incurred at the end of the grant period and were of
a type that did not provide a direct benefit to the grant period
(All grant expenditures must directly benefit the grant program).
- Time records were inadequate to support employee salary charges
to the grant, especially for employees who only spent part of their
time working on the grant.
- Time and attendance records were not approved by supervisors and
not signed by employees.
- No record of board approval for salary, hourly pay rate for part-time
employees or hourly pay rate for employees working outside the normal
work day.
- Improper classification/reporting of employee and consultant expenses.
- Reporting fringe benefit costs using the budgeted percentage
when actual fringe benefit costs incurred were lower.
- Reporting the school district’s share of FICA (Social Security)
and pension costs as a grant expense for those employees who are
members of TPAF (Teacher’s Pension) and whose FICA and pension
are already paid for by the state.
- Mathematical or clerical errors made when calculating a charge
to the grant.
- Charges to the grant for supplies, equipment, etc., which
are not supported by vendor invoices.
- Costs for entertainment where such costs do not represent a valid
grant expense are not allowable according to OMB Cost Principles.
- Charges to the grant for supplies requisitioned from stock and
reimbursed with grant funds that are not supported with adequate
documentation.
- Methods used to determine charges to the grant for a portion of
expenses such as telephone, postage, rent, duplicating, etc..,
which do not have a reasonable basis of allocation. Charging the
budgeted amount without reasonable justification is not acceptable.
- Reporting of costs that are not reasonably related to the purpose
of the grant.
- Grantee’s accounting records do not provide for an audit
trail. As a result, the auditors cannot reconcile the final expenditure
report submitted to the DOE with the grantee’s accounting records.
- Documentation is not maintained to substantiate the dates, numbers
of hours and type of services provided by consultants.
For contractors with Internet access, the following
sites provide additional information about grant management and audit
requirements: http://www.ed.gov/legislation/ESEA/compliance/
http://www.whitehouse.gov/WH/EOP/OMB/Grants/
.
GLOSSARY
Application Control Center
The Application Control Center (ACC) is the center
responsible for providing the NJDOE’s centralized control function
for grant administration. Among the various functions of the ACC are
the receipt of proposals, applications and contractor reports, and
the administration of the proposal evaluation and application review
processes, and of the contract modification review and approval process.
Approved Application
The goals, objectives, activity plan, evaluation
plan, budget, etc., proposed by an applicant may have been changed
as a result of the pre-contract revision process. The "approved
application" incorporates all of the NJDOE-approved pre-contract
revisions. It supersedes all other versions of the application and
is made a part of the contract by reference. It provides the framework
for the program and is used by the contractor in the implementation
of the local project.
Approved Grant Application
See "Approved Application."
Articulation Agreement
See "Subcontract Agreement."
Attachment A, Contract Terms and Conditions
The administrative terms and conditions that a contractor
must comply with under its contract with the NJDOE. The document is
incorporated into the contract by reference, and is legally a part
of the contract.
Attachment B
Requirements with which a contractor must comply
concerning the acknowledgement of the amount and percentage of federal
and non-federal funding when many any public announcement relating
to the contract. Contract audit requirements and copyright information
are also included.
Attachment C
Special program-specific terms and conditions with
which a contractor must comply and/or special terms and conditions
placed on "high risk" contractors. It is included as part
of the third party contract only where applicable.
Audit
The examination of records and documents and the
securing of other evidence by a qualified accountant for one or more
of the following purposes: (a) determining the propriety of proposed
or completed transactions, (b) ascertaining whether all transactions
have been recorded, (c) determining whether transactions are accurately
recorded in the accounts and in the statements drawn from the accounts.
Audit Findings
A deficiency or deficiencies in a local project,
found during the audit process, in one or more of several key areas,
e.g., internal control, compliance, questioned costs, or fraud. Common
audit findings include, but are not limited to: grant funds used for
expenses not included in the budget; costs incurred outside of the
contract time frame; inadequate time records to support employee salary
charges; mathematical or clerical errors when calculating a charge
to the grant, etc.
Catalogue Of Federal Domestic Assistance (CFDA)
A government-wide compilation of federal programs,
projects, services, and activities that provide assistance or benefits
to the American public. The primary purpose of the CFDA is to assist
users in identifying programs that meet specific objectives of a potential
applicant, and to obtain general information on federal assistance
programs; the catalogue is published one yearly, usually in June;
an update occurs around December. The CFDA contains a brief description
of each program, eligible applicants, the type of assistance provided,
the estimated amount of money available, the typical award size, and
the name and telephone number of the agency contact for the program.
In accordance with the audit requirements of OMB Circular A-133,
contractors are required to track expenditures by CFDA number.
Chief Fiscal Officer
For contractors that are local education agencies
(LEAs), the chief fiscal officer (CFO) is considered to be the LEA’s
business administrator. For contractors other than LEAs, e.g., community-based
organizations, colleges and universities, etc., the chief fiscal officer
is the person charged with responsibility for fiscal oversight of
the agency’s financial activities.
Code of Federal Regulations (Title 34, Education)
A codification of the general and permanent rules
published in the Federal Register by the Executive departments
and agencies of the Federal Government.
Co-Mingled Funds
Co-mingling of funds occurs when a contractor fails
to maintain separate records for each revenue stream (program income
and/or grant funds by funding source), which may result in the improper
use of funds designated for a specific purpose and subject to specific
restrictions.
Consortium Member
See "Subcontractor."
Consultants
Independent contractors engaged under a grant to
provide a specific service or product (product purchase or fee-for-service).
They are not employees of the contractor and no employer-employee
relationship exists between the consultant and the contractor.
Contract Addenda Committee (CAC)
The body within the NJDOE charged with responsibility
for reviewing and approving contract modification requests. Only those
requests that require NJDOE approval and that have been recommended
for approval by staff of the sponsoring program office and by staff
of the Office of Grants Management and Development are considered
by the CAC.
Contract Audit
See "Audit."
Contract Close-Out
The process by which the NJDOE determines that all
applicable administrative actions and all required work of the contract
have been completed by the contractor. As a condition to close-out,
contractors must submit a final program report and a final fiscal
report. Upon approval of the final reports, the contractor will receive
its final payment or will be required to refund grant funds to the
NJDOE. See also "Standard Payment Schedule."
Contract Period
The timeframe during which funds provided by the
NJDOE may be used for the purposes of the specific grant program.
The start and end dates of the contract period are specified on Page
One of the third party contract document.
Contract Threshold
The amount of funds that contractors may transfer
between/among previously budgeted line items where the cumulative
amount of all of those transfers will be below ten (10) percent of
the total contract amount, or $10,000, whichever is less. The ten
(10) percent or $10,000 figure represents the contract threshold amount.
Note: There are other restrictions placed on the transfer of funds
that apply below this threshold amount. Contractors are encouraged
to refer to Part Eight of this Contractor’s Manual for
a full discussion of these restrictions.
Contractor
The government or non-government entity to which
a grant is awarded and which is accountable to the NJDOE for the use
of the funds provided. The contractor is the entire legal entity even
if only a particular component of the entity is designated in the
grant award document.
Cost-Reimbursement
The basis on which all third party contracts are
issued. This means that for each third party contract, the amount
of grant funds paid by the NJDOE during the contract period cannot
exceed the amount of eligible program expenditures incurred by the
contractor for the contract period. The NJDOE will reimburse the contractor
for eligible expenditures only up to the dollar amount of the contract.
Cost Sharing
The portion of a project or program cost not borne
by the NJDOE. See also "Matching Funds" and "Matching
Funds Requirement."
Desk Monitoring
The review by the NJDOE of contractor interim and
final program and fiscal reports to ascertain the extent to which
a contractor is complying with the provisions of the contract, and
to determine the progress being made towards accomplishment of the
goals, objectives, and activities in the approved grant application.
In most cases, interim reports are due quarterly and final reports
are due to the NJDOE within sixty (60) days after the end date of
the contract.
Direct Costs
Costs that are approved for a specific purpose and
that can be identified with a particular grant program or instructional
activity, or that can be directly assigned to such activities relatively
easily with a high degree of accuracy. Typical direct costs are: compensation
of employees for the time devoted and identified specifically to the
performance of the grant award; cost of materials acquired, consumed,
or expended specifically for the grant award; equipment and other
approved capital expenditures; and travel expenses incurred specifically
to carry out the award.
Disallowed Costs
Any charges to the contract that the NJDOE has determined
to be beyond the scope of the purpose of a contract, excessive or
otherwise unallowable.
Discretionary
Grant
A grant made in support of an individual project
in accordance with legislation that permits the NJDOE to exercise
judgment in selecting the project, the contractors, and the amount
of the award. Applicants may or may not compete for these funds.
Discretionary Grant Program
Discretionary grant programs are designated to address
essential education and related initiatives. Discretionary grant funds
are most often awarded through a competitive or limited competitive
process that requires eligible applicants to submit proposals in response
to an NJDOE-initiated request for proposals (RFP).
Education Department General Administrative Regulations
(EDGAR)
A book issued by the USDOE that reprints portions
of Title 34 of the Code of Federal Regulations (parts 74, 75,
76, 77, 79, 80, 81, 82, 85, 86) containing the administrative requirements
for contractors. The regulations affecting discretionary grant programs
funded by the USDOE and funded by the NJDOE are found in Title 34.
Equipment
An item of tangible personal property that meets
all of the following criteria: (1) it retains its original shape,
appearance and character with use; (2) it does not lost its identify
through fabrication or incorporation into a different or more complex
unit or substance; (3) it is non-expendable; that is, if the item
is damaged or some of its parts are lost or worn out, it is more feasible
to repair the item than to replace it; (4) under normal conditions
of use, including reasonable care and maintenance, it can be expected
to serve its principle purpose for at least one year; and (5) the
item costs more than $500.
Equipment Inventory Form
A form requesting the following information on each
piece of equipment purchased with grant funds: make/model/description
of the equipment; inventory tag number; purchase date; amount budgeted;
purchase cost; and location of the equipment. An equipment inventory
form is completed by each contractor at the mid-contract and final
reporting periods for a grant program. See also "Property Management
System."
Equipment Inventory Tag
A tag placed on each piece of equipment linking that
equipment to an inventory record containing the following information:
description of the property; serial number or other identification
number; funding source for the equipment purchase; title holder to
the equipment; acquisition date; acquisition cost; percentage of grant
funds (by funding source if split-funded) used in the purchase of
the equipment; location, use, and condition of the equipment; and
any equipment disposition information. See also "Property Management
System."
Expenditure Report Form
The Expenditure Report Form is page five of the Third
Party Contract. The contractor’s chief fiscal officer is required
to use this form in completing and submitting the fiscal reports referenced
on page two of the Third Party Contract.
Generally Accepted Accounting Principles (Gaap)
A technical term in accounting which encompasses
the conventions, rules and procedures necessary to define accepted
accounting practice at a particular time. The standard of "generally
accepted accounting principles" includes not only broad guidelines
of general application, but also detailed rules and procedures.
Grant Recipient Agency
See "Contractor."
Grantee
See "Contractor."
Indirect Costs
Any costs that are incurred as a result of contract
activities, and provide a benefit to the contract, but cannot be allocated
directly to a contract. Examples of indirect costs are: facilities,
utilities, accounting and bookkeeping services, legal services, contract
administration systems, procurement systems, general operating expenses,
etc. As these costs cannot allocated directly to a particular contract
or contracts, an indirect cost rate is used instead.
In-Kind Contributions
The value of non-cash contributions provided by the
contractor and/or subcontractor(s) under a grant program. In-kind
contributions may be in the form of charges for real property and
non-expendable personal property, and the value of goods and services
directly benefiting and specifically identifiable to the project or
program.
Inventory Tag
See "Equipment Inventory
Tag."
Matching Funds
Local financial resources applied in support of a
discretionary grant program. Matching funds may be in the form of
cash and/or in-kind contributions. See also "Matching Funds Requirement."
Matching Funds Requirement
A requirement in an RFP, RFC, or RFA that obligates
a contractor to match a certain percentage of the NJDOE contract amount
from local resources. In order to satisfy a matching funds requirement,
the matching funds must be expended during the contract period, and
be for costs directly supporting the overall program. See also "Matching
Funds."
Mid-Contract Fiscal Performance Review
For multi-year programs, the Mid-Contract Fiscal
Performance Review is used as documentation for on-site monitoring
by NJDOE program staff. Through this Review, the NJDOE collects specific
information regarding expenditures made in four key areas: consultant
services, equipment, staff (salaries and fringe benefits), and subcontracts.
A separate form exists for each of these four areas to be completed
by the contractor as part of mid-contract reporting.
Monitoring
A method which the NJDOE utilizes to ascertain the
extent to which a contractor is complying with the provisions of the
contract, and to determine the progress being made towards accomplishment
of the goals, objectives, and activities in the approved grant application.
Multi-Year Grant Programs
A grant program designated in the initiating RFP
to extend for more than a single contract period, usually 12 months
in duration. The initial selection of contractors usually occurs on
a competitive basis, with subsequent years of funding provided on
a non-competitive basis to those contractors selected in year one
and certified by the program office to be performing successfully
at the midpoint of the current contract period.
Non-Employee Compensation
Fees or other forms of compensation for services
rendered by an individual or entity that is not an employee of the
contractor (e.g., consultants, workshop presenters, etc.). Any payments
for non-employee compensation must be made through a formal contract
with the individual or entity receiving payment.
Non-Public Schools
An elementary or secondary school within the State,
other than a public school, offering education for grades kindergarten
through 12, or any combination of them, wherein any child may legally
fulfill compulsory school attendance requirements and which complies
with the requirements of Title VI of the Civil Rights Act of 1964
(P.L. 88-352). A list of non-public schools by LEA district, can
be found in the New Jersey Department of Education School Directory
or by calling your County Office of Education.
Office Of Management and Budget
Circulars (Federal)
Federal guidance for the administration of grants,
cost principles, and audit requirements. Federal regulations require
that state departments of education treat federal and non-federal
sources of funds in a consistent manner and in accordance with state
law. To meet this requirement, the NJDOE applies the provisions of
the Federal OMB Circulars uniformly to all contractors, regardless
of the source of funds.
OMB Circulars
See "Office of Management
and Budget Circulars (Federal)."
On-Site Monitoring
On-site monitoring is a method which the NJDOE utilizes
to ascertain the extent to which the contractor is complying with
the provisions of the contract and to determine the progress being
made towards accomplishment of the goals, objectives, and activities
in the approved grant application. During an on-site monitoring visit,
NJDOE program office staff observe the contractor’s program in
action, meet with staff, and review program and fiscal records. For
multi-year programs, on-site monitoring and approved reports are also
necessary in order to be certified by the NJDOE to be eligible to
apply for continuation funding.
Partner
See "Subcontractor."
Program Income
The gross income earned by the contractor that is
generated directly by a grant-supported activity or earned as a result
of the grant. It includes, but is not limited to: income from fees
for services performed, the use or rental of real or personal property
acquired under the grant, the sale of commodities or items developed
or fabricated under the grant.
Project Costs
All allowable costs incurred by the contractor and
subcontractor(s), where applicable, and the value of the in-kind contributions
made by the contractor and/or subcontractor(s) in accomplishing the
objectives of the grant or other agreement during the contract period.
Project Director
A designated employee of the contractor who is responsible
for managing and implementing the educational program and budget described
in the approved application. The project director ensures that the
contractor meets its responsibilities to the NJDOE under the grant
program in a timely manner.
Project Period
See "Contract Period."
Property Management System
A system to track the following information for each
piece of equipment purchased contractors and/or subcontractors with
grant funds: description of the property; serial number or other identification
number; funding source for the equipment purchase; title holder to
the equipment; acquisition date; acquisition cost; percentage of grant
funds (by source if split-funded) used in the purchase of the equipment;
location, use, and condition of the equipment; and any equipment disposition
information. Additionally, the NJDOE requires that an equipment inventory
be completed and the results reported on at the mid-contract and final
reporting periods of the grant program. All contractors and subcontractors
are required to maintain a property management system that meets the
requirements of the appropriate Federal OMB Uniform Administrative
Requirements Circulars (A-110, A-102) applicable to the
contractor or subcontractor. See also "Equipment Inventory Form"
and "Equipment Inventory Tag."
Reimbursement
See "Cost Reimbursement."
Restricted Line Items
Restricted line items of a budget include equipment,
subcontracts, and indirect costs. Changes proposed to any budget which
would have an impact upon a restricted line item require NJDOE approval.
Scope of Work
The goals, objectives, activities, and time lines
of the approved grant application.
Split-Funded
Grant programs that are supported by both state and
federal funds. In such cases, a certain percentage of the total grant
amount available is designated as state funds and a certain percentage
is designated as federal funds. Furthermore, in some instances, a
grant program may be supported my multiple state and/or federal sources.
These programs are also referred to as split-funded.
Standard Payment Schedule
The standard payment schedule for third party contracts
is as follows: If equipment is approved, 100% of the approved equipment
amount (function/object codes 400-731 and 400-732) is issued with
the first payment. Five percent (5%) of the balance is deducted and
held by the NJDOE. (The 5% is released upon receipt and approval by
the NJDOE of the contractor’s final reports.) The remaining amount
is divided into equal monthly payments issued, generally, near the
middle to the end of each month.
Subcontract Agreement
A formal financial agreement between a third-party
contractor and another entity (a "fourth party") to provide
an integral part of the grant program. Provisions of subcontract agreements
should include information such as a clear, well-defined scope of
work and the start and end dates of the subcontract. A subcontract
agreement may also include such provisions as: payment terms; reporting
schedule; termination clauses; records access and retention clauses;
property management clause; etc. Note: Contractors are encouraged
to refer to Part Three of this Contractor’s Manual for
more detailed information on subcontract agreements.
Subcontractor
An entity (person or agency) that has a formal financial
arrangement with the contractor to provide an integral part of the
grant program. A subcontractor has responsibility for programmatic
decisions, adherence to applicable compliance requirements and uses
grant funds to "carry out" program activities. The subcontractor
is accountable to the contractor in the use of grant funds, subject
to applicable federal and state regulations, and is accountable for
the delivery of the subcontracted program activities. A subcontractor
may also be called a consortium member, a partner, a subgrantee, or
a subrecipient.
Subgrantee
See "Subcontractor."
Subrecipient
See "Subcontractor."
Suspension
An action by the NJDOE that temporarily suspends
assistance under the grant pending corrective action by the grantee,
or pending a decision by the NJDOE to terminate the grant.
Termination
The cancellation of sponsorship of a grant project,
in whole or in part, by the NJDOE under an agreement at any time prior
to the date of completion.
Third Party Contract
A standardized legally binding agreement for the
issuance of discretionary funds based upon specific priorities, needs,
performance criteria, and budgetary constraints. The third party contract
used by the NJDOE for its discretionary grant program consists of
five pages and contains the following information: grant program identification
and identification of key contact persons (at the contractor and at
the NJDOE); contract time period; applicable regulations; payment
information and due dates of progress and final program and fiscal
reports; contract-specific terms and conditions; approved contract
budget; and the Expenditure Report Form.
Unbudgeted Line Item
A budget line in the final approved grant application
budget in which no funds had been requested by the contractor. Funds
may not be transferred into unbudgeted lines by the contractor without
prior approval by the Department of Education.
Vendors
Individuals or firms hired to provide a specific
service or product (product purchase or fee-for-service) within their
normal business operations. Vendors are not employed, either full-time
or part-time, by the contractor and are considered a "purchased
service." Vendors are not subject to compliance requirements;
they operate in a competitive environment and provide services or
goods to many different purchasers.
