UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND

REHABILITATIVE SERVICES

REHABILITATION SERVICES ADMINISTRATION

WASHINGTON, DC 20202

> TECHNICAL ASSISTANCE CIRCULAR
>
> RSA-TAC-01-02
>
> DATE: August 8, 2001

TO : STATE VOCATIONAL REHABILITATION AGENCIES (GENERAL)

> STATE VOCATIONAL REHABILITATION AGENCIES (BLIND)
>
> CLIENT ASSISTANCE PROGRAM GRANTEES
>
> PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS
>
> PROGRAM GRANTEES

SUBJECT : Supplementary Instructions for Completing the SF-269,
Financial Status Report, for the Independent Living Services Program,
Part B, Independent Living, Part C, Centers for Independent Living
Program (if administered by a State agency pursuant to Section 723),
Independent Living services for older individuals who are blind program,
chapter 2, Supported Employment Program, Client Assistance Program, and
Protection and Advocacy of Individual Rights Program

BACKGROUND: State Vocational Rehabilitation agencies and other grantees
are required to use the SF-269, Financial Status Report, to report to
RSA the status of funds for the Independent Living Services Program,
Part B, Independent Living, Part C, Centers for Independent Living
Program (if administered by a State agency pursuant to Section 723),
Independent Living Services for Older Individuals Who Are Blind Program,
Chapter 2, Supported Employment Program, Client Assistance Program, and
Protection and Advocacy of Individual Rights Program. **See Attachment
A, SF-269 and general instructions.**

The report must be submitted to the RSA Regional Office on an annual
basis until the grant (or period during which the grantee is authorized
to liquidate outstanding obligations) has expired.

> RSA uses the SF-269\'s to monitor the financial status of each program
> and to assess compliance with the fiscal requirements contained in the
> Rehabilitation Act of 1973, as amended. Therefore, the reports must be
> accurate and submitted timely.
>
> This Circular provides supplementary instructions to State Vocational
> Rehabilitation agencies and other grantees on preparing the SF-269 for
> the above programs. **See Attachment B, Supplementary Instructions for
> Standard Form-269.**

CITATIONS

IN LAW : Sections 3(b), 19, 107(a)(2)(H), 107(a)(2)(I), and 108 of the
Rehabilitation Act of 1973, as amended.

CITATIONS

IN

REGULATIONS: 34 CFR 74.2, 74.21, 74.23, 74.24, 74.27, 74.52, 76.702,
76.707, 76.709, 77.1, 80.3, 80.20, 80.22, 80.23, 80.24, 80.25, 80.41,
and 80.50; 34 CFR 361.60, 361.64, 363.51, 364.5, 364.6, 365.12, 365.15,
367.40 and 381.33

EFFECTIVE

DATE : Issue Date

EXPIRATION

DATE : Until Retired

INQUIRIES : RSA Regional Commissioners

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Deputy Commissioner

Rehabilitation Services

Administration

CC: American Indian Vocational Rehabilitation Services Program

Council of State Administrators of Vocational Rehabilitation

National Council for Independent Living

National Rehabilitation Facilities Coalition

National Association of Protection and Advocacy Systems

> Regional Rehabilitation Continuing Education Program
>
> (RRCEP)Grantees
>
> RSA Senior Management Team
>
> ATTACHMENT B

**SUPPLEMENTARY INSTRUCTIONS FOR STANDARD FORM 269 FOR THE**

**INDEPENDENT LIVING SERVICES PROGRAM-PART B**

**INDEPENDENT LIVING-PART C, CENTERS FOR INDEPENDENT LIVING PROGRAM**

(IF ADMINISTERED BY A STATE AGENCY PURSUANT TO SECTION 723)

### IL SERVICES FOR OLDER INDIVIDUALS WHO ARE BLIND PROGRAM

**SUPPORTED EMPLOYMENT PROGRAM**

**CLIENT ASSISTANCE PROGRAM**

**PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS PROGRAM**

**BLOCK 1.** FEDERAL AGENCY AND OTHER ORGANIZATIONAL ELEMENT TO WHICH
REPORT IS SUBMITTED. Department of Education, RSA.

**BLOCK 2.** FEDERAL GRANT OR OTHER IDENTIFYING NUMBER ASSIGNED BY
FEDERAL AGENCY. Award Number from Block 4 of the grant award.

BLOCK 3. RECIPIENT ORGANIZATION. Name and address of State agency or
other grantee**.**

BLOCK 4. EMPLOYER IDENTIFICATION NUMBER. DUNS Number from Block 7 of the
grant award**.**

BLOCK 5. RECIPIENT ACCOUNT NUMBER OR IDENTIFYING NUMBER. State agency\'s
or other grantee's internal tracking number**.**

BLOCK 6. FINAL REPORTS. If yes, Blocks 10.k, 10.l, 10.m and 10.s are
zero. All obligations must be liquidated and all program income
disbursed. If no, the agency/grantee has unliquidated obligations and/or
undisbursed program income.

BLOCK 7. BASIS. CASH OR ACCRUAL. Indicate the type of accounting system
the State agency or other grantee is operating under: cash, accrual, or
modified accrual. For cash, receipts are recorded when received and
expenditures are recorded when paid without regard to the reporting
period in which the receipts are earned or the costs incurred. For
reports prepared on an accrual basis, receipts are recorded when earned,
and accrued expenditures are recorded when goods or services are
received, regardless of when cash is received or paid. It is permissible
for a State agency or other grantee to use a modified-accrual basis for
reporting program expenditures. To report accrual information such as
unliquidated obligations, the State agency or other grantee is not
required to convert its accounting system to the accrual basis, but
shall develop such accrual information through an analysis of the
documentation on hand. (34 CFR 80.3 and 80.41(b)(2) for State agencies;
34 CFR 74.2 and 74.52 for Nonprofit Organizations)

**BLOCK 8.** FUNDING PERIOD. The time period established by the Act that
limits the time the grant funds may be obligated. A State agency or
other grantee that obligates all of its grant funds by September 30 of
the year of the appropriation should use a one-year funding period. With
the exception of the IL-Part B and IL-Older Blind Programs, a grantee
that does not obligate all its grant funds by September 30 of the year
of the appropriation should use a two-year funding period to carry over
grant funds. IL-Part B and IL-Older Blind grantees reporting sufficient
matching funds by September 30 of the year for which the funds were
appropriated should also use a two-year funding period to carry over
grant funds. IL-B and IL-Older Blind grantees that do not meet the
requirements to carry over grant funds should use a one-year funding
period. (Section 19 of the Act; 34 CFR 76.709, 361.64, 364.6, 381.33(c))

> GRANT PERIOD. The grant period is one year, which is the Federal
> fiscal year for which the grant funds were appropriated EXCEPT AS
> NOTED ABOVE. (34 CFR 77.1)
>
> **Note:** Federal funds which remain unobligated at the end of the
> year of appropriation in the IL-Part B and IL-Older Blind Programs,
> may be carried over for obligation in the succeeding fiscal year only
> to the extent that the State agency complied with the matching
> requirement applicable to these programs for the fiscal year for which
> the funds were appropriated. (34 CFR 364.6(b))

**BLOCK 9.** PERIOD COVERED BY THIS REPORT. The SF-269 report for each
grant program is cumulative and is submitted annually based on the
Federal fiscal year. The period covered is always the beginning of the
grant period through the end of the reporting period. For example,
October 1, 1999 through September 30, 2000 for an annual report; October
1, 1999 through September 30, 2001 if funds were carried over from the
FY 2000 year.

**BLOCK 10.** TRANSACTIONS:

> **a**\-\--TOTAL OUTLAYS. The issuance of checks or disbursement of
> cash to liquidate an obligation. Outlays are the sum of actual cash
> disbursements. Outlays are made by the State agency or other grantee
> for allowable program expenditures. (34 CFR 80.3 for State agencies;
> 34 CFR 74.2 for Nonprofit Organizations)
>
> **b**\-\--REFUNDS, REBATES,ETC. Refunds are recovery of excess
> payments due to cancellations, discounts or errors. Rebates are
> promotional incentives generated during the grant period.
>
> Note: Refunds should be reported for the grant under which the
> expenditures were claimed. For example, a refund, received in FY 2001
> for an expenditure claimed under a FY 1999 grant should be reflected
> on the Financial Status Report for the FY 1999 grant. If the final
> report for the FY 1999 grant has already been submitted, that report
> should be revised and resubmitted.
>
> **c**\-\--PROGRAM INCOME USED IN ACCORDANCE WITH THE DEDUCTION
> ALTERNATIVE. The amount of program income deducted from total
> allowable costs. This reporting alternative must be used in the
> Supported Employment Program unless written prior approval is obtained
> from RSA to use the addition alternative. (34 CRF 80.25(g) for State
> agencies; 34 CFR 74.24(b) for Nonprofit Organizations)
>
> **d**\-\--NET OUTLAYS. Total outlays (Block 10.a), minus the sum of
> Block 10.b and Block 10.c.
>
> **e**\-\--THIRD PARTY (IN-KIND) CONTRIBUTIONS. This Block should be
> zero except for the Independent Living Services - Part B and IL-Older
> Blind Programs, which may have an entry here. (34 CFR 80.3, 34 CFR
> 361.60(b)(2), and 34 CFR 365.15)
>
> **f**\-\--OTHER FEDERAL AWARDS USED TO MATCH THIS AWARD. Outlays made
> with other Federal grant funds may be allowable costs if permitted by
> Federal statute. (34 CFR 80.24(b)(1) for State agencies; 34 CFR
> 74.23(a)(5) for Nonprofit Organizations)
>
> **g**\-\--PROGRAM INCOME USED IN ACCORDANCE WITH THE MATCHING OR COST
> SHARING ALTERNATIVE. This Block should be zero. RSA does not authorize
> the use of program income for match or cost sharing purposes. (34 CFR
> 80.25(g)(3) for State agencies; 34 CFR 74.24 for Nonprofit
> Organizations)
>
> **h**\-\--ALL OTHER RECIPIENT OUTLAYS NOT SHOWN ON LINES E, F, or G.
> These outlays should be outlays not reported on Lines e and f.
>
> **i**\-\--TOTAL RECIPIENT SHARE OF NET OUTLAYS. The sum of Blocks
> 10.e, 10.f and 10.h. (Block 10.g must be zero.) This amount should be
> equal to or greater than 10 percent of total outlays for the
> Independent Living - Part B and IL-Older Blind Programs. (34 CFR
> 365.12(b)(1))

**Note:** Unless the grantee is submitting a correction to previously
reported expenditures in the IL-Part B and IL-Older Blind Programs, the
sum of the recipient's share of net outlays reported in Block 10.i
(column III) and the recipient's share of unliquidated obligations
(Block 10.l), should not increase after submission of the year-end
Financial Status Report.

> **j**\-\--FEDERAL SHARE OF NET OUTLAYS. The required amount under the
> grant agreement that will be paid with the Federal grant. This amount
> should be less than or equal to 90 percent of total outlays for the
> Independent Living - Part B and IL Older Blind Programs. (34 CFR
> 365.12(b)(1))
>
> k\-\--TOTAL UNLIQUIDATED OBLIGATIONS. Obligations incurred but not
> paid by the end of the reporting period. (34 CFR 76.707, 34 CFR 80.3
> and 34 CFR 74.2)
>
> **l**\-\--RECIPIENT\'S SHARE OF UNLIQUIDATED OBLIGATIONS. For the
> Independent Living - Part B Program, that portion of unpaid
> obligations to be paid by the recipient.

**Note:** Unless the grantee is submitting a correction to previously
reported expenditures in the IL-Part B and IL-Older Blind Programs, the
sum of the recipient's share of net outlays reported in Block 10.i
(column III) and the recipient's share of unliquidated obligations
(Block 10.l), should not increase after submission of the year-end
Financial Status Report.

> **m**\-\--FEDERAL SHARE OF UNLIQUIDATED OBLIGATIONS. That portion of
> unpaid obligations to be paid with Federal funds.
>
> **n**\-\--TOTAL FEDERAL SHARE. The sum of Blocks 10.j and 10.m.
>
> **o**\-\--TOTAL FEDERAL FUNDS AUTHORIZED FOR THIS FUNDING PERIOD. The
> cumulative amount shown on the last grant award received for the
> reporting period (Block 9), including amounts received during
> reallotment.
>
> **p**\-\--UNOBLIGATED BALANCE OF FEDERAL FUNDS. Block 10.o minus Block
> 10.n. (34 CFR 80.3 and 34 CFR 74.2)
>
> **q**\-\--DISBURSED PROGRAM INCOME SHOWN ON LINES C AND/OR G.
>
> Enter the amount from Block 10.c. (Block 10.g must be zero.)
>
> **r**\-\--DISBURSED PROGRAM INCOME USING THE ADDITION ALTERNATIVE. The
> amount of program income funds used in accordance with the addition
> alternative. This block is actual disbursements, i.e., outlays. All
> Social Security reimbursements must be reported in the program in
> which they are earned (Basic Support Program) as well as in the
> program(s) in which they are used (Basic Support Program and other
> eligible programs). [Any Social Security reimbursement funds that have
> been used under other eligible programs should be reported as a
> disbursement in Block 10.r and specifically annotated in Block 12,
> Remarks, of the Financial Status Report for the Basic Support Program.
> This income must also be shown as obligated and/or expended in Block
> 12, Remarks on the Financial Status Report of the eligible program
> into which the funds were transferred]{.underline}. (Section 108 of
> the Act, and 34 CFR 80.25(g)(2) and 34 CFR 74.24)

# **Example 1**: Basic Support Program SF-269 - FY 2000[^1]

> Block 10r. *Disbursed program income using the addition alternative*
> \$[100,000]{.underline}\*
>
> Block 12. *Remarks.*

\*Includes \$15,000 in program income transferred to and used in the
Independent Living-Part B Program.

> **Example 2:** [SF-269 Submitted for Independent Living (Part B)
> Program]{.underline} - FY 2000[^2]
>
> Block 10r. *Disbursed program income using the addition alternative*
> \$[5,000]{.underline}\*
>
> Block 12. *Remarks.*
>
> \*Additional Program Income transferred from the Basic Support Program
> and used in this program - \$15,000. Total program income expended -
> \$20,000.
>
> Note: The outlay of all program income funds must meet the same
> standards of allowability in OMB Circular A-87 for State agencies and
> OMB Circular A-122 for Nonprofit Organizations that are applicable to
> the expenditure of Federal funds. (34 CFR 80.22 and 34 CFR 74.27)
>
> **s**\-\--UNDISBURSED PROGRAM INCOME. The cumulative amount of program
> income received during the appropriation year, but not yet disbursed.
> The amount to be reported here includes the total of both unobligated
> funds and unliquidated obligations. If reporting as of the end of the
> year of receipt, the amount of program income reported here is
> available for obligation and expenditure during the subsequent Federal
> fiscal year. (Section 19 of the Act)
>
> Note: Before filing a final SF-269 report for any of the subject
> programs, all program income must be: (1) disbursed per a legal
> obligation (Block 10.r), or (2) deducted as an offset to final total
> outlays (Block 10.c) which may result in an increased Federal
> unobligated balance (Block 10.p).
>
> **t**\-\--TOTAL PROGRAM INCOME REALIZED. The sum of Blocks 10.q, 10.r,
> and 10.s.
>
> **Note:** Unless the grantee is submitting a correction to previously
> reported program income receipts, the amount reported in Block 10.t
> should not increase after submission of the year-end Financial Status
> Report.

**BLOCK 11.** INDIRECT EXPENSE. Indirect costs are normally charged
under Federal awards via an indirect cost rate. The rate is simply the
percentage relationship of indirect costs to direct costs and is
substantiated by a standardized set of work papers referred to as the
indirect cost proposal. Any State agency or other grantee that wishes to
claim indirect costs under Federal grants must prepare an indirect cost
proposal and submit it to the cognizant Federal agency for approval.
(OMB Circular A-87 for State agencies and OMB Circular A-122 for
non-profits)

> Note: Grantees claiming indirect expense based on an approved indirect
> cost rate should complete Blocks 11.a through 11.e.
>
> **a**\-\--TYPE OF RATE. At the time of approval, the Federal cognizant
> agency will determine and identify one of three kinds of agreements
> that the rate is based on \--Provisional/Final, Predetermined, or
> Fixed with Carry Forward (FCF). Indicate the kind of agreement that is
> identified in the Federal cognizant agency approval.
>
> **b**\-\--RATE. Enter the indirect rate(s) approved by the Federal
> cognizant agency and the period(s) covered. For example: six percent,
> July 1998 through June 1999.
>
> **c**\-\--BASE. Enter the total amount of expenditures (Base) that the
> indirect rate is being applied against.
>
> **d**\-\--TOTAL AMOUNT. Multiply Block 11.c by the percentage rate
> identified in Block 11.b and indicate that amount.
>
> **e**\-\--FEDERAL SHARE. Multiply Block 11.d by the percentage of
> Federal Financial Participation (90 percent for Independent Living -
> Part B and Independent Living \-- Older Blind Programs) and indicate
> that amount as the claimed Federal share.
>
> Note: Grantees claiming indirect expense based on an approved cost
> allocation plan, rather than an indirect cost rate, should leave
> Blocks 11.a, 11.b and 11.c blank, but should enter the total amount of
> indirect expense claimed during the reporting period in Block 11.d.
> The Federal share of the amount reported in Block 11.d should be
> reported in Block 11.e.

**BLOCK 12.** REMARKS. This Block is used to clarify and explain amounts
reported, such as changes from amounts previously reported and the use
of program income (Social Security reimbursement funds) that were
transferred from the Basic Support Program. An example to clarify
reporting requirements is provided under the instructions for Block
10.r.

> NOTE: For the Supported Employment, Title VI-B Program, Federal
> regulations in 34 CFR 363.51(b) stipulate that no more than five
> percent of the allotment may be spent on administrative costs.
>
> For the Protection and Advocacy for Individual Rights Programs,
> Federal regulations in 34 CFR 381.33(b) stipulate that an eligible
> system located *within a State agency* may not use more than five
> percent of any allotment for the costs of administration of the
> program.
>
> Of the total amount of outlays and unliquidated obligations reported
> for these programs, enter in this block how much was for services and
> administrative costs respectively.

**BLOCK 13.** CERTIFICATION. The report must be signed and dated by the
authorizing official. A financial status report submitted without a
signature or a date is considered an invalid report.

**SUBMISSION**

**OF THE REPORT:** Send the original and two copies of the report to the
RSA Regional Office serving your State.

[^1]: In this example, the [total program income received in the Basic
    Support Program during FY 2000]{.underline} consists of the
    \$100,000 in disbursed program income shown above in Block 10.r, any
    program income used in accordance with the deduction alternative
    (Block 10.c), and any undisbursed program income reported in Block
    10s.

[^2]: In this example, the [total program income earned and reported as
    a disbursement in this program]{.underline} is \$5,000. However, the
    grantee also received and disbursed \$15,000 in additional program
    income that was transferred from the Basic Support Program. The
    receipt and disbursement of the transferred program income is
    reflected in Block 12 -- Remarks. In addition, the grantee has
    provided additional information to clarify the total amount in
    program income expended under this grant program.