U. S. DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

REHABILITATION SERVICES ADMINISTRATION

WASHINGTON, D.C. 20202

INFORMATION MEMORANDUM

RSA-IM-91-14 (REVISION)

RSM-1050 [1]{.underline}/

DATE: March 26, 1991

TO : STATE VOCATIONAL REHABILITATION AGENCIES (GENERAL)

STATE VOCATIONAL REHABILITATION AGENCIES (BLIND)

CLIENT ASSISTANCE PROGRAM GRANTEES

RSA SENIOR MANAGEMENT TEAM

SUBJECT : Replacement of Information Memorandum - RSA-IM-91-14

FY 1991 Reallotment Schedule for Formula Grants under the Rehabilitation
Act

CONTENT : **This information memorandum replaces Information Memorandum
RSA-IM-91-14, dated March 12, 1991. Please disregard that information
memorandum and substitute this one for use for the reallotment
schedule.**

The Rehabilitation Act of 1973, as amended, grants the Commissioner the
authority to reallot to other grant recipients that portion of a
recipient\'s annual grant that cannot be used or matched. To maximize
the use of appropriated funds under the formula grant programs, RSA
establishes the following two reallotment schedules for Fiscal Year 1991
for the Basic Support (Title I); Independent Living, Part A (IL);
Supported Employment (SE); and Client Assistance (CA) Programs.

Each State VR Agency and Client Assistance grantee will submit to its
respective RSA Regional Office (RO), by the date indicated, information
as to whether or not it is relinquishing funds, is requesting additional
funds, or will not seek to change its award level. The RSA RO will then
report the information, provided by the grant recipients in its region,
to RSA Central Office (CO). RSA CO will then issue award documents
reflecting the reallotment change of funds.

[1]{.underline}/ Under Development

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[REALLOTMENT SCHEDULE FOR FY 1991]{.underline}

[FIRST REALLOTMENT]{.underline}

[Title I]{.underline} [IL]{.underline} [SE]{.underline} [CA]{.underline}

States Report to RSA RO 8/1 8/1 8/1 7/15

RSA RO Reports to RSA CO 8/5 8/5 8/5 7/19

RSA CO Issues Awards 8/19 9/6 9/6 8/6

[SECOND REALLOTMENT]{.underline}

[Title I]{.underline} [IL]{.underline} [SE]{.underline} [CA]{.underline}

States Report to RSA RO 9/5 9/5 9/5 8/13

RSA RO Reports to RSA CO 9/9 9/9 9/9 8/16

RSA CO Issues Awards 9/25 9/19 9/17 8/30

[State Director Assurance in the Basic Support Program]{.underline}

Federal Regulation 34 CFR 361.87 requires each State Agency, before
receiving reallotment funds in the Basic Support Program, provide
assurance that it is able to obligate and match all of its regular
allotment within the fiscal year that funds were appropriated. This
provision includes funds for the receiving agency transferred from one
State Agency within the State but excludes funds transferred to the
other State Agency within the State. Only those funds received during
the reallotment process can be carried over into the subsequent year to
pay for [initial expenditures]{.underline}. Initial expenditures are
obligations incurred by November 15 of the fiscal year subsequent to the
fiscal year from which the funds were reallotted. For the other three
formula grant programs, funds received through the reallotment process,
as well as the regular allotment, must be obligated by September 30,
1991.

A VR Agency Director, who requests additional funds under the Basic
Support Program during the reallotment process, must submit a signed
assurance to his or her RSA Regional Commissioner, that the State Agency
is able to obligate fully all of its original allotment within the
fiscal year for which funds were appro-priated. Only one assurance
statement from each State Agency Director is required for the
reallotment process for that fiscal year. Copies of the written
assurances will be received and filed in the RO. The Regional
Commissioner will provide to RSA CO a signed statement that assurances
have been received by all State Agencies requesting reallotment funds.

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[Unobligated Balances]{.underline}

To minimize unobligated balances in FY 1991 and in future years, State
Agencies are advised that proper recordkeeping is essential and, as
well, a program requirement in order to identify obligations made. In FY
1989, more than \$4.9 million was reported as being unobligated, as of
year-end reporting. It is essential that all State Agencies work to
minimize these unobligated balances through better recordkeeping and
methods for more accurate estimates of obligations to be made through
the end of the grant period.

Efforts to more accurately account for unliquidated obligations will
result in lower unobligated balances. RSA is currently developing an
Information Memorandum, which outlines RSA\'s requirements for
accountability of unliquidated obligations under State VR Programs. This
Information Memorandum refers to the appropriate section of the
Rehabilitation Services Manual which prescribes required documentation
for unliquidated balances, and to 34 CFR 80.12 (EDGAR) which addresses
special grant conditions or restrictions for high-risk grantees. RSA may
require the submission of the referenced documentation from those
grantees that may be identified as high risk. This determination will be
made on a case-by-case basis.

[Cancellation of Reallotment]{.underline}

If, during the first reallotment, ample funds are not relinquished, RSA
will exercise its discretion to cancel the first scheduled reallotment
for that program. RSA will notify the grantees that the reallotment has
been canceled and that the money released during the first reallotment
will automatically be considered for redistribution during the second
scheduled reallotment.

[Reallotment Reporting Format]{.underline}

To request or relinquish funds during the reallotment process, please
use the format shown below to report the following information for each
program.

Current Total Grant Amount \$

Requested Total Grant Amount \$

Increased or Decreased Amount \$

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INQUIRIES :Any questions concerning this reallotment schedule should be
addressed to the Director, Management Services Staff at (202) 732-1358.

Commissioner, RSA