Office of Grants Management
DISCRETIONARY GRANTS - Phone: (609)633-6974
New Jersey Department of Education
Table of Contents
What Is All This Paper?
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 Contractors 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.
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
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:
Third-party Contract: This document is a five-page agreement to be signed by the contractor (grant recipient agency) and the DOE.
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.
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.
The DOE recommends that the project director maintain an administrative file for ready reference, which should contain at a minimum, the following materials:
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.
The following chart provides information about federal OMB Circulars that apply to different types of agencies.
Uniform Administrative Requirements
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.
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
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/
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 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:
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
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 departments Application Control Center (ACC). The ACC is responsible for providing the departments 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:
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:
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
All contractors are expected to:
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.
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 contractors 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.
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:
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)
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).
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).
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:
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 subcontractors 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.
The DOE recommends that the following specific information be considered when developing a subcontract agreement:
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
The DOE defines equipment as any instrument, machine, apparatus, or set of articles that meets all the following criteria:
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).
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.
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:
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).
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.
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.
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.
Due to the variety of federal and state sources of funding (and program specific regulations) incorporated into the DOEs 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:
DOE personnel will review the request, and you will be advised in writing as to how to proceed.
Part Five: 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.
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 contractors grant-funded expenditures being disallowed by the DOE.
Matching requirements may be satisfied through the following:
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
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.
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.
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).
Be sure to check the RFP/C/A and/or the third-party contract.
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).
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 contracts 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 contractors 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.
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.
Part Seven: Contract Monitoring and Reporting
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.
The program officer will observe the contractors 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.
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).
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:
*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 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 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:
Photocopy page 5 (Expenditure Report) of the DOE third-party contract.
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:
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:
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
For each grant-funded staff position, provide the following information on the Interim Personnel Report form:
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:
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:
Final Expenditure Report
Photocopy page 5 (Expenditure Report) of the DOE third-party contract.
Final Equipment Inventory Report (submitted with the Final Expenditure Report)
Final Non-Employee Compensation Reports (submitted with the Final Expenditure Report)
Where Do I Send Reports?
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.
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.
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
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:
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.
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:
To assist in determining when DOE approval is required, a Contract Modification DOE Approval Checklist is contained in the Appendices.
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.
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 programs 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).
The following are examples of requests with acceptable level of detail:
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.
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:
The requested revision will result in the following change(s) (if any) of the approved activity plan.
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.
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.
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.
The requested revision(s) will result in the following change(s) of the approved activity plan:
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:
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.
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.
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.
Requests for contract modifications are to be sent to:
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 DOEs 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.
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.
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.
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.
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 contractors 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
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:
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.
For contractors with Internet access, the following sites provide additional information about grant management and audit requirements: http://www.ed.gov/legislation/ESEA/compliance/
Application Control Center
The Application Control Center (ACC) is the center responsible for providing the NJDOEs 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.
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."
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.
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.
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.
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.
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 LEAs 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 agencys 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-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.
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.
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."
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.
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 Contractors Manual for a full discussion of these restrictions.
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.
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.
The portion of a project or program cost not borne by the NJDOE. See also "Matching Funds" and "Matching Funds Requirement."
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.
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.
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.
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.
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."
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 contractors 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
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.
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.
See "Equipment Inventory Tag."
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.
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.
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.
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.
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.
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 contractors 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.
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.
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.
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.
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."
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.
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 contractors final reports.) The remaining amount is divided into equal monthly payments issued, generally, near the middle to the end of each month.
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 Contractors Manual for more detailed information on subcontract agreements.
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.
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.
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.
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.