**U.S. DEPARTMENT OF EDUCATION**

**OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES**

**REHABILITATION SERVICES ADMINISTRATION**

WASHINGTON, D.C. 20202-2800

> INFORMATION MEMORANDUM
>
> RSA-IM-05-09
>
> DATE: June 10, 2005

TO : STATE VOCATIONAL REHABILITATION AGENCIES (GENERAL)

> STATE VOCATIONAL REHABILITATION AGENCIES (BLIND)
>
> CLIENT ASSISTANCE PROGRAM
>
> PROTECTION AND ADVOCACY OF INDIVIDUALS RIGHTS PROGRAM
>
> INDEPENDENT LIVING, PART B PROGRAM
>
> INDEPENDENT LIVING OLDER BLIND PROGRAM
>
> PROTECTION AND ADVOCACY FOR ASSISTIVE TECHNOLOGY PROGRAM

SUBJECT : FY 2005 Reallotment Schedule for Formula Grants under the
Rehabilitation Act

CONTENT : The Rehabilitation Act of 1973, as amended (Act), authorizes
the Commissioner to reallot to other grant recipients that portion of a
recipient\'s annual grant that cannot be used. To maximize the use of
appropriated funds under the formula grant programs, RSA has established
the following FY 2005 reallotment schedule for the Basic Support (Title
I); Supported Employment (SE); Independent Living, Part B (IL);
Independent Living Older Blind (IL-OB); Client Assistance (CAP);
Protection and Advocacy of Individual Rights (PAIR); and Protection and
Advocacy for Assistive Technology (PAAT) programs.

> Each formula grant recipient is requested to submit to RSA
> Headquarters (HQ), [**by**]{.underline} **[August 3,
> 2005]{.underline}**, information as to whether or not it is
> relinquishing grant funds, is requesting additional grant funds, or
> whether it will not seek to change its current grant award. We ask
> that you submit this information in accordance with the format set
> forth below. RSA will make every effort to award funds through the
> reallotment process by **September 20, 2005**. RSA HQ will issue
> revised award documents reflecting changes in cumulative funding for
> FY 2005 to those grantees that either relinquish funds or receive
> additional funds through reallotment.
>
> **[Format for Submitting Information regarding
> Reallotment]{.underline}:**
>
> Please use this format for providing information as to whether you
> will be relinquishing funds, requesting additional funds, or will be
> seeking no change to the current grant award. Please provide this
> information [for each program]{.underline}.
>
> A. Program Name
>
> B. Current Grant Amount \$
>
> C. Additional Amount Requested \$
>
> D. Amount of Funds to be Relinquished \$
>
> E. Requested Total Annual Grant Amount
>
> (Lines B+C=E or B-D=E) \$
>
> **If you are relinquishing funds**, please provide additional
> information that briefly explains: (1) why the funds are being
> relinquished; (2) what conditions resulted in the need to relinquish
> funds; and (3) whether you expect that funds will need to be
> relinquished in FY 2006 and why.
>
> Submit the above requested information in writing to:
>
> Director, FMISS/RSA
>
> 400 Maryland Avenue, S.W.
>
> Potomac Center Plaza, Room 5148
>
> Washington, DC 20202-2800
>
> The information also can be faxed to (202) 245-7589. Please note that
> this will be RSA\'s only notice of the reallotment process. RSA must
> receive the above information **no later than August 3**.
>
> **[Other Important and Relevant Information to
> Consider]{.underline}:**
>
> [Reallotment as Increase to Grant Award & Matching
> Requirements]{.underline}:
>
> Section 110(b)(3) of the Act makes it clear that funds reallotted to
> another State are considered to be an increase to that State\'s
> allotment for the fiscal year for which funds were appropriated.
> Therefore, States receiving funds through the reallotment process must
> be capable of providing sufficient match (21.3%) for the additional
> funds received by September 30, 2005 (see section 110(b)(2) of the
> Act).
>
> [Requirements for the Carryover of Funds]{.underline}:
>
> Section 19(a) of the Act authorizes formula grantees to carry over any
> funds appropriated in FY 2005, including original allotments and
> reallotments, which are not obligated or expended by recipients by
> September 30, 2005. Funds carried over remain available for obligation
> and expenditure during the following fiscal year, **provided the
> recipient has fully met, by September 30, 2005, any matching
> requirement on the funds to be carried over** (see section 19(b) of
> the Act).
>
> [Unobligated Balances]{.underline}
>
> To minimize unobligated balances, RSA strongly recommends that grant
> recipients maintain proper recordkeeping in order to identify
> obligations made.
>
> [Cancellation of Reallotment]{.underline}
>
> If ample funds are not relinquished, RSA will exercise its discretion
> to cancel any scheduled reallotment for each program. RSA will notify
> grantees if a reallotment has been cancelled.

INQUIRIES : Any questions concerning this Information Memorandum should
be addressed to the Director, Financial Management and Information
Systems Staff at (202) 245-7254.

> Edward Anthony, Ph.D.
>
> Delegated the authority to perform the functions of Commissioner for
> Rehabilitation Services Administration

cc:

> Regional Rehabilitation Continuing Education Programs (RRCEPs)

American Indian Vocational Rehabilitation Programs

Council of State Administrators of Vocational Rehabilitation (CSAVR)

National Organization of Rehabilitation Partners (NORP)