**Appendix V**

**List of Changes for the 2005 Compliance Supplement**

This Appendix provides a list of changes from the OMB Circular A-133
Compliance Supplement, issued in March 2004, to this 2005 Supplement.

**Table of Contents**

-   The Table of Contents has been corrected to make the names of the
    following programs consistent with those in the *Catalog of Federal
    Domestic Assistance* (CFDA) and the program entries in Parts 4 and 5
    of the Supplement; add five new programs and one new cluster; delete
    two programs; substitute a single program reference in lieu of a
    cluster; and change an entry to reflect the assignment of a CFDA
    number.

    -   CFDA 14.866 -- Added program, "Demolition and Revitalization of
        Severely Distressed Public Housing (HOPE VI)"

    -   CFDA 15.614 -- Added program, "Coastal Wetlands Planning,
        Protection, and Restoration Act"

    -   CFDA 84.268 -- Changed program title to "Federal Direct Student
        Loans (Direct Loan)"

    -   CFDA 84.298 -- Changed program title to "State Grants for
        Innovative Programs"

    -   CFDA 84.338 -- Deleted program, "Reading Excellence"

    -   CFDA 84.366 -- Added program, "Mathematics and Science
        Partnerships"

    -   CFDA 93.224 -- Eliminated cluster of programs and substituted a
        single CFDA number for the "Consolidated Health Centers" program

    -   CFDA 93.820 -- Deleted "Scholarships for Students of Exceptional
        Financial Need (EFN)" program from Student Financial Assistance
        cluster

    -   CFDA 93.889 -- Added program, "National Bioterrorism Hospital
        Preparedness Program"

    -   CFDA 97.004/97.067 -- Added cluster, "Homeland Security Cluster"

    -   CFDA 97.008 -- Added program, "Urban Areas Security Initiative"

    -   CFDA 98.007 -- Changed entry for Foreign Food Donation Program
        from 02.001 to 98.007 and changed title to "Food for Peace
        Development Assistance Program"

        **Part 1 - Background, Purpose, and Applicability**

```{=html}
<!-- -->
```
-   The "Purpose and Applicability" section has been updated for the
    effective date of this Supplement and to include clarifying language
    concerning implementation of the OMB Circulars by Federal agencies.

-   The "Overview of This Supplement" section has been updated to
    indicate that OMB Circular A-110 has been codified as 2 CFR part 215
    and, for the 2005 Supplement, Appendix VI is reserved. Needed
    coverage of Department of Homeland Security programs has been moved
    to the DHS programs in Part 4.

    **Part 2 - Matrix of Compliance Requirements**

```{=html}
<!-- -->
```
-   Updated to add and remove programs to make the matrix consistent
    with the Table of Contents and Part 4. For added programs or
    programs adding compliance requirements, the matrix was updated
    based on the program supplement in Part 4.

    **Part 3 - Compliance Requirements**

```{=html}
<!-- -->
```
-   No changes

    **Part 4 - Agency Program Requirements**

    -   Deleted the following programs: [Page No.]{.underline}

> **84 Department of Education**
>
> 84.338 Reading Excellence 4-84.338-1

-   Converted the following from a cluster to a single program entry:

> **93 Department of Health and Human Services** [Page No.]{.underline}
>
> 93.224 Consolidated Health Centers 4-93.224-1

-   Added the following programs: [Page No.]{.underline}

14. **Department of Housing and Urban Development**

> 14.866 Demolition and Revitalization of Severely\
> Distressed Public Housing (Hope VI) 4-14.866-1
>
> **15 Department of the Interior**
>
> 15.614 Coastal Wetlands Planning, Protection,\
> and Restoration Act 4-15.614-1
>
> **84 Department of Education**
>
> 84.366 Mathematics and Science Partnerships 4-84.366-1
>
> **93 Department of Health and Human Services** [Page No.]{.underline}
>
> 93.889 National Bioterrorism Hospital\
> Preparedness Program 4-93.889-1
>
> **97 Department of Homeland Security** [Page No.]{.underline}
>
> 97.008 Urban Areas Security Initiative 4-97.008-1

-   Added the following cluster: [Page No.]{.underline}

> **97** **Department of Homeland Security**
>
> 97.004 State Domestic Preparedness Equipment Support\
> Program (State Homeland Security Grant Program)
>
> 97.067 Homeland Security Grant Program 4-97.067-1

-   Added a CFDA number for the following: [Page No.]{.underline}

98. **U.S. Agency for International Development**

> 98.007 Food for Peace Development\
> Assistance Program 4-98.007-1
>
> The following significant changes were made to the programs in Part 4:

-   CFDA 10.557 ~~\--~~ Updated II, "Program Procedures." Updated
    III.B.1, "Allowable Costs/Cost Principles - Applicable Credits," to
    include local agency collection requirements. Updated III.E.1.d,
    "Eligibility -- Eligibility for Individuals - Nutritional Risk."
    Updated III.H, "Period of Availability of Federal Funds." Added
    III.N.2, "Special Tests and Provisions -- Review of Food
    Instruments" to Enforce Limitations and Detect Errors." Previous
    III.N.2 was re-numbered to III.N.3 and updated.

-   CFDA 14.872 -- Updated information in II, "Program Procedures,"
    added a regulation to "Program Procedures - Sources of Governing
    Regulations," and added a new subsection, "Program Procedures -
    Availability of Other Program Information." Updated III.A.1,
    "Activities Allowed or Unallowed," to including financing as an
    allowable activity. Added III.D, "Davis-Bacon Act," to provide
    information on the basis for the applicability of the Davis-Bacon
    Act. Revised III.L, "Reporting." Added a new III.N, "Special Tests
    and Provisions - Provisions - FASS -- PHA, Public Housing Assessment
    System Phase Indicator #2, Financial Condition, and HUD-50075, PHA
    Plans."

-   CFDA 84.000 ~~\--~~ Department of Education Cross-Cutting Section
    ~~\--~~ Changed name of CFDA 84.298 to reflect current name.
    Corrected the CFDA number for Reading First to 84.357*.* Deleted
    CFDA 84.338, Reading Excellence*.* Added CFDA 84.366, Mathematics
    and Sciences Partnerships, to the list of applicable programs and
    added references to the new program consistent with the CFDA 84.366
    program supplement. In II, Program Procedures, added sections on
    "Transferability" and "Small Rural Schools Achievement (SRSA)
    Alternative Uses of Funds Program" under "Unique Features of ESEA
    Programs That May Affect the Conduct of the Audit;" revised guidance
    in "General and Program-Specific Cross-Cutting Requirements;" and
    updated website in "Availability of Other Program Information."
    Revised citations and requirements and expanded discussion in
    III.B.2, "Allowable Costs/Cost Principles - Documentation of
    Employee Time and Effort." Updated III.B.3, "Allowable Costs/Cost
    Principles -- Indirect Costs." Updated citations in III.G.2.1,
    "Matching, Level of Effort, Earmarking - Level of Effort --
    Maintenance of Effort (SEAs/LEAs)." Updated citations and program
    names in III.G.2.2, "Matching, Level of Effort, Earmarking - Level
    of Effort -- Supplement Not Supplant (SEAs/LEAs)." Updated III.H,
    "Period of Availability of Federal Funds," added CFDA 84.318 to the
    programs covered by this requirement, and updated the website
    address. Clarified the compliance requirement and suggested audit
    procedures in III. N.2, "Special Tests and Provisions - Schoolwide
    Programs." Add III. N.4, "Special Tests and Provisions - Access to
    Federal Funds for New or Significantly Expanded Charter Schools
    (SEAs/LEAs)." See below for programs affected by this new Special
    Test. Clarified the citation in IV, "Other Information -- Prima
    Facie Case Requirements for Audit Findings."

-   CFDA 84.011 -- Updated II, "Program Procedures." In III.L.3,
    "Reporting -- Special Reporting," updated information in III.L.3.b
    and added a new report in III.L.3.c. Updated III.N.4, "Special Tests
    and Provisions - Priority for Services."

-   CFDA 84.027 and 84.173 -- Updated III.G.2.1, "Matching, Level of
    Effort, Earmarking - Level of Effort -- Maintenance of Effort
    (SEAs/LEAs)" by updating and renumbering "a. LEAs" to "b. LEAs" and
    by adding a new section "a. SEAs." The renumbered III.G.2.1.b,
    "LEAs," is revised to note that the requirement could be met on
    either an aggregate or per capita basis. Updated III.G.3.a(2) and
    b(2), "Matching, Level of Effort, Earmarking - Earmarking" by
    providing additional information on the base period for the
    distribution of funds requirements. Added a new requirement as
    III.G.3.d, "Matching, Level of Effort, Earmarking - Earmarking --
    Redistribution of Formula Funds to LEAs." Added III. N.2, "Special
    Tests and Provisions - Access to Federal Funds for New or
    Significantly Expanded Charter Schools (SEAs/LEAs)."

-   CFDA 84.032 -- Removed outdated material under II, "Program
    Procedures." Updated the internet address in III.L.3, "Reporting -
    Special Reporting." In III.N, "Special Tests and Provisions,"
    updated the compliance requirement and suggested audit procedure in
    N.3, "Conditions of Reinsurance Coverage;" removed outdated material
    and added a citation in N.7, "Federal Share of Borrowed Payments;"
    clarified and deleted outdated material in N.9, "Federal Fund and
    Agency Operating Fund;" and corrected the citation and updated the
    audit objective and suggested audit procedure in N.10, "Investments
    -- Federal Fund." 

-   CFDA 93.224 -- Changed title to 93.224, Consolidated Health Centers
    (Community Health Centers, Migrant Health Centers, Health Care For
    The Homeless, Public Housing Primary Care, And School Based Health
    Centers), and deleted references to other programs previously
    considered part of a cluster. Added IV, "Other Information" to
    explain this change in funding and reporting. Added reference in I.,
    "Program Objectives," to allowability of governing board waiver
    under migrant health services funding. Updated citations in
    III.A.1.e, "Activities Allowed or Unallowed;" III.J; "Program
    Income"; and III.N.1, "Special Tests and Provisions - Governing
    Board -- Compliance Requirement."

-   CFDA 93.556 -- Added a new paragraph 6 on "Administrative Costs"
    under III.A, "Activities Allowed or Unallowed," with a cross
    reference to a newly added III.G.2." Renumbered the remaining
    paragraphs of III.A. Expanded the citation under the new III.A.7 to
    45 CFR section 1357.32(h)(3).

```{=html}
<!-- -->
```
-   CFDA 93.558 -- Under III.L.2, "Reporting -- Performance Reporting,"
    included discussion of importance of reporting related to work
    participation and added line items to be reviewed in the TANF and
    Tribal TANF Data Reports: Section One -- Family-Level Data - Item 28
    *Is the TANF family exempt from the Federal time limit provisions;*
    Section One - Person-Level Data - Item 30 *Family Affiliation Code;*
    Item 32 *Date of Birth;* Item 39 *Parents with a Minor Child; and*
    Item 44 *Number of months countable toward the Federal time limit.*

    -   CFDA 93.658 -- Added a new III.A.2.b, "Activities Allowed or
        Unallowed -- Activities Unallowed." Updated III.E.1,
        "Eligibility -- Eligibility for Individuals." Clarified III.G.1,
        "Matching, Level of Effort, Earmarking -- Matching" by
        reiterating exemption from specified requirements of the A-102
        Common Rule.

> The following non-substantive changes or changes or changes of a less
> significant nature were made to the programs in Part 4:

-   10.001 -- Deleted the last sentence under II, "Program Procedures --
    Food for Progress Program" because it is outdated.

-   CFDA 10.500 --

    -   Added West Virginia University as an eligible recipient under
        this program. References to West Virginia University have been
        added under II, "Program Procedures," III.G.1d, Matching, Level
        of Effort, Earmarking -- Matching, III.H, "Period of
        Availability of Federal Funds, and III.L.1.a, Reporting --
        Financial Reporting," in each case to read "...including
        Tuskegee University and West Virginia University."

    -   Updated II, "Program Procedures," and III.A.1, "Activities
        Allowed or Unallowed" to note that a 2-Year Plan of Work Update
        is required for fiscal years (FYs) 2005 and 2006 instead of
        submitting a new 5-Year Plan of Work for FYs 2005-2009 (See
        Revisions to the Guidelines for State Plans of Work for the
        Agricultural Research and Extension Formula Funds, 69 *Federal
        Register* (FR) 6244-48, February 10, 2004). The 2-Year Plan of
        Work Update extends coverage of the original 5-Year Plan of Work
        to include FYs 2005 and 2006 and was due April 1, 2004. The
        2-Year Plan of Work Update should be based on the original
        national goals established in the FY 2000 -- FY 2004 Plan of
        Work.

    -   Updated II, "Program Procedures," to add "Availability of Other
        Program Information" at http://www.csrees.usda.gov.

    -   Updated III.G.1.c and d, "Matching, Level of Effort,
        Earmarking - Matching," to add "and the 2-Year Plan of Work
        Update" after "5-Year Plan of Work."

    -   Updated III.G.1.d, "Matching," by adding "1890 Land-Grant
        Institutions, including Tuskegee University and West Virginia
        University, may carry over matching funds from one fiscal year
        to the following fiscal year" to the end of the paragraph.

    -   Updated III.L.1.d, "Reporting - Financial Reporting," by
        replacing "SF-272, *Federal Cash Transactions Report* -- Not
        Applicable" with "SF-272, *Federal Cash Transactions Report* -
        Payments under this program are made by the HHS Payment
        Management System. Reporting equivalent to the SF-272 is
        accomplished through the Payment Management System and is
        evidenced by the PSC-272 series of reports."

```{=html}
<!-- -->
```
-   CFDA 10.551 and 10.561 -- Updated and clarified coverage in II,
    "Program Procedures."

```{=html}
<!-- -->
```
-   "Certification - Assessing Need" now reads as follows:

> "Households generally cannot exceed a gross income eligibility
> standard set at 130 percent of the Federal poverty standard (7 CFR
> section 273.9(a)(1)). Households also cannot exceed a net income
> standard, which is set at 100 percent of the Federal poverty standard
> (7 CFR section 273.9(a)(2)). The net income standard allows specified
> deductions from gross income, e.g., a standard deduction and
> deductions for medical expenses (elderly and disabled only), excess
> shelter costs, and work expenses. Non-financial eligibility criteria
> include age, school status, citizenship/legal immigration status,
> residency, household composition, work requirements, and disability
> status. Some non-citizens are ineligible to participate in the program
> (7 USC 2015(f)). Able-bodied adults without dependents are subject to
> a time limit for receiving benefits if certain requirements are not
> met (7 USC 2015(o))."

-   The second paragraph under "Benefits" has been changed to read as
    follows:

> "The benefits each household receives are redeemed for food in
> participating retail stores. States issue benefits in the form of
> debit cards, which recipients can use to purchase food. This is known
> as electronic benefits transfer (EBT). Welfare reform legislation
> required all States to use EBT by 2002, and all States have achieved
> full compliance."

-   The first two sentences of "Certification Quality Control System --
    Implications of Quality Control for the Compliance Supplement" have
    been changed as follows:

> "The Food Stamp Program Quality Control system uses an intensive State
> review of a sample of active cases across the United States to measure
> the accuracy of Food Stamp Program eligibility determinations and
> benefit amounts. An FNS re-review of a subset of those cases follows."

-   CFDA 10.553, 10.555, 10.556, and 10.559 -- Changed title of III.A.3
    under "Activities Allowed or Unallowed" to "Exceptions for States
    with Simplified SFSPC Programs," and added Colorado, Louisiana,
    Michigan, Mississippi, Ohio, and Oregon to the States covered by the
    exception. The period for the exception for the 19 States is October
    1, 2004 through September 30, 2009.

-   CFDA 10.558 --

    -   Updated II, "Program Procedures - Federal Assistance to States -
        Funding State-Level Administrative Costs" to note that the one
        and one-half percent of FNS payments available to comply with
        audit requirements and to fund costs associated with performing
        administrative reviews of institutions after the audit
        requirements have been met is reduced to one percent for FYs
        2005 through 2007.

    -   Updated III.A.2.b, "Activities Allowed and Unallowed -
        Sponsoring Organization Procedures -- Sponsoring Organizations
        of Centers," to note that the portion of a center's meal
        reimbursement that the sponsor may retain for its own
        administrative expenses may not exceed 15 percent.

    -   Updated III.E.1.a(1), "Eligibility - Eligibility for
        Individuals," by revising the definition of "children" to
        include "persons through age 18 that are in emergency shelters."

    -   Updated III.E.3.b, "Eligibility - Eligibility for
        Subrecipients," by replacing everything after "(2)" with "as of
        June 30, 2004, at least 25 percent of the children in their care
        are eligible for free or reduced price meals (42 USC
        1766(a)(2)(B))."

```{=html}
<!-- -->
```
-   CFDA 11.300 and 11.307 -- Added a new section III.D, "Davis-Bacon
    Act," to provide the statutory citation that makes the Davis-Bacon
    Act apply to these programs (42 USC 3212) and corrected citation to
    add omitted "13" before CFR in III.N.1, "Special Tests and
    Provisions - Increases to RLF Capital Base -- Compliance
    Requirement".

-   CFDA 12.401 -- Updated National Guard Bureau Manual citation under
    III.J, "Program Income," to "NGR 5-1/ANGI 63-101, chapter 7-3b(2)."

    -   CFDA 14.239 -- Updated the website for the HOME Rule under II,
        "Program Procedures -- Availability of Other Program
        Information" to
        <http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/>.
        Updated language in III.G.1, "Matching," by deleting "Except for
        funds allocated in Fiscal Year 1992."

    -   CFDA 14.850 -- Corrected the report number in II, "Program
        Procedures -- Performance Reporting" and III.L.2, "Reporting -
        Performance Reporting," to "HUD Form 50072."

    -   CFDA 15.605 and 15.611 --

        -   Updated website address under II, "Program Procedures -
            Availability of Other Program Information," to
            [http://federalaid.fws.gov-grants/grantinf.html](http://federalaid.fws.gov/grants/grantinf.html).

        -   Revised III.G.3.a, "Matching, Level of Effort, Earmarking -
            Earmarking," citation to 50 CFR section 80.15(e).

        -   Added the following paragraph to III.J, "Program Income:"

> "Grant agreements will normally contain specific language that income
> generated by the grantee outside of the grant period from federal
> assistance-supported acquisitions or other activities will either be:
> (1) treated as license revenue and used to support the administration
> of the State fish and wildlife agency; or (2) if the State so
> requests, used as additional funding for purposes consistent with the
> grant or the program that generated the income. Lacking specific
> language requested by the grantee in the grant agreement, there are no
> requirements to account for income generated by a subgrantee outside
> of the grant period unless provided for by the grantee in the award to
> the subgrantee. However, the grantee and subgrantee may enter into
> subsequent contractual agreements that require accounting for income
> generated outside the grant period in order to comply with separate
> obligations (e.g., maintenance of a facility during its useful life,
> oversight of allowable commercial activities, etc)."

-   Updated III.L.3, "Special Reporting," to add the report number\
    "Form 3-154A" and to add the following information:

> "License holders shall be counted over a period of 12 months; the
> calendar year, fiscal year, or other licensing period may be used
> provided it is consistent from year to year in each State. The data is
> used in the calculation for apportioning the annual appropriation of
> funds to all State grantees and, therefore, exaggerating the number of
> license holders can result in additional Federal funds. Determining
> and reporting the number of persons holding paid licenses requires
> eliminating duplication or multiple counting of single individuals in
> the certified figures. Sampling and other statistical techniques may
> be utilized by the certifying officer for this purpose. \[A paid
> license holder is one person, regardless of the number of licenses,
> tags, permits, or stamps held.\] Trapping licenses, commercial
> licenses, and other licenses that are not for the express purpose of
> permitting the holder to hunt or fish for sport or recreation shall
> not be included; licenses that do not return net revenue to the State
> shall not be included; licenses valid for more than one year may be
> counted in each of the years for which they are valid; and combination
> fishing and hunting licenses (a single license that permits the holder
> both to hunt and fish) shall be included in the determination of both
> the number of paid hunting license holders and the number of persons
> holding paid licenses to fish for sport or recreation."

-   Revised III.N.1, "Special Tests and Provisions - Assent Legislation
    and Diversion of License Fees," by replacing "Federal funds" with
    "State license fee revenue."

```{=html}
<!-- -->
```
-   CFDA 45.129 -- Under III.G.1, "Matching, Level of Effort, Earmarking
    -- Matching," added "Federal" in front of "Matching Funds in each
    instance in the first and third paragraphs and substituted "Cost
    Sharing" for "Matching" in front of "Outright Funds."

-   CFDA 66.468 -- Deleted III.G.1. c., "Matching, Level of Effort,
    Earmarking -- Matching" because that provision of the Safe Drinking
    Water Act no longer applies.

    -   As noted above for the ED Cross-Cutting Section (84.000),
        updated III.N, "Special Tests and Provisions," of the programs
        listed below by adding a reference to the new ED Cross-Cutting
        Section requirement in III. N.4, "Special Tests and Provisions -
        Access to Federal Funds for New or Significantly Expanded
        Charter Schools (SEAs/LEAs)," as follows:

> "**Access to Federal Funds for New or Significantly Expanded Charter
> Schools**
>
> See ED Cross-Cutting Section."

-   Program to be updated where this addition is the only change to the
    program are:

> ESEA programs: SDFSCA (except the Governor's Program authorized under
> Section 4114) (CFDA 84.186); Ed Tech (CFDA 84.318); Reading First
> (CFDA 84.357); Title III, Part A (CFDA 84.365); and Title II, Part A
> (CFDA 84.367). Other program: Adult Education (CFDA 84.002).

-   As noted elsewhere in this appendix, coverage of this new
    requirement is being added to the following programs that also have
    other changes in this Supplement:

Title I, Part A (CFDA 84.010), IDEA, Part B (CFDA 84.027 and 84.173),
Vocational Education (CFDA 84.048), 21^st^ CCLC (CFDA 84.287), and Title
V, Part A (CFDA 84.298).

-   CFDA 84.010 --

    -   Added the citation 20 USC 6315 to II, "Program Procedures."

    -   Added to II, "Program Procedures" the following:

        **Availability of Other Program Information**

> A number of documents contain non-regulatory guidance applicable to
> the Title I, Part A requirements in this Supplement. They include:

-   [Local Educational Agency Identification and Selection of School
    Attendance Areas and Schools and Allocation of Title I Funds to
    Those Areas and Schools (August
    2003)](http://www.ed.gov/programs/titleiparta/wdag.doc)
    (<http://www.ed.gov/programs/titleiparta/wdag.doc>);

-   [Improving Teacher Quality State Grants (Jan. 16,
    2004)](http://www.ed.gov/programs/teacherqual/guidance.doc)
    (<http://www.ed.gov/programs/teacherqual/guidance.doc>);

-   [Public School Choice (Feb. 6,
    2004)](http://www.ed.gov/policy/elsec/guid/schoolchoiceguid.doc)
    (<http://www.ed.gov/policy/elsec/guid/schoolchoiceguid.doc>);

-   [Report Cards, Title I, Part A (Sept. 12,
    2003)](http://www.ed.gov/programs/titleiparta/reportcardsguidance.doc)
    (<http://www.ed.gov/programs/titleiparta/reportcardsguidance.doc>);

-   [Supplemental Educational Services (Aug. 22,
    2003)](http://www.ed.gov/policy/elsec/guid/suppsvcsguid.doc)
    (<http://www.ed.gov/policy/elsec/guid/suppsvcsguid.doc>);

-   [Title I Paraprofessionals (Mar. 1,
    2004)](http://www.ed.gov/policy/elsec/guid/paraguidance.doc)
    (<http://www.ed.gov/policy/elsec/guid/paraguidance.doc>);

-   [Title I Services to Eligible Private School Children (Oct. 17,
    2003)](http://www.ed.gov/programs/titleiparta/psguidance.doc)
    (<http://www.ed.gov/programs/titleiparta/psguidance.doc>); and

-   LEA and School Improvement (Jan. 7, 2004)
    (<http://www.ed.gov/policy/elsec/guid/schoolimprovementguid.pdf>

    -   Updated the second paragraph of III.E.2.b, "Eligibility -
        Eligibility for Group of Individuals or Area of Service
        Delivery," by replacing "An LEA may not allocate a higher amount
        per poor child to areas or schools with lower percentages of
        poverty than to areas with higher percentages" with "With the
        possible exception of a school in corrective action or
        restructuring, an LEA may not allocate a higher amount per poor
        child to areas or schools with lower percentages of poverty than
        to areas with higher percentages. Because an LEA may not reduce
        the allocation of a school identified for corrective action or
        restructuring by more than 15 percent in order to reserve Title
        I funds for choice-related transportation and supplemental
        educational services, the final allocation per poor child of
        such a school after application of this rule may be higher than
        a higher-poverty school." Updated the citation to include "Title
        I, Section 1116(b)(10)(D) of ESEA (20 USC 6316(b)(10)(D))."

    -   Added the new ED Cross-Cutting requirement as III.N.4, "Special
        Tests and Provisions - Access to Federal Funds for New or
        Significantly Expanded Charter Schools. See ED Cross-Cutting
        Section"

    ```{=html}
    <!-- -->
    ```
    -   CFDA 84.042, 84.044, 84.047, 84,066, and 84.217 --

        -   Updated III.E.1.a(2), "Eligibility -- Eligibility for
            Individuals -- SSS Program -- Grant Aid to SSS Students," to
            note that maximum and minimum amounts for Pell Grants does
            not change for the 2004-05 academic year, i.e., they stay at
            \$4,050 and \$400, respectively.

        -   Beginning with project year 2003-2004, the following forms
            were revised, changing the line numbers and titles for some
            key line items as follows for:

            -   III.L.2.b, "Reporting -- Performance Reporting --
                *Upward Bound, Upward Bound Math-Science, and Veterans
                Upward Bound Programs Annual Performance Report (OMB No.
                1840-0762).*" Revise to:

> *Key Line Items* - The following line items contain critical
> information:
>
> \(1\) Section II-A, *Record Structure for Participant List for Upward
> Bound and Upward Bound Math-Science Projects,* fields:
>
> 11 Eligibility
>
> 12 UB Initiative Participant
>
> 14 Date of First Entry into Project
>
> 17 Date of Last Program Service (if applicable)
>
> 19 Participant Status
>
> 20 Participation Level (for the reporting period only)
>
> 21 Academic Need - primary
>
> 33 Grade Level (at time of first entry into project)
>
> 34 Grade Level (at the end of the reporting period)
>
> \(2\) Section II-B, *Record Structure for Participant List for
> Veterans Upward Bound Projects*, fields:
>
> 11 Eligibility
>
> 13 Date of First Entry into Project
>
> 14 Educational Status (at time of entry into project)
>
> 17 Participant Status
>
> 18 Length of Program Participation
>
> 19 Educational Status (at end of reporting period)

-   III.L.2.d, "Reporting -- Performance Reporting -- *Ronald E. McNair
    Postbaccalaureate Achievement Performance Report*, *(OMB No.
    1840-0640).*" Revise to:

> *Key Line Items -* The following items contain critical information:
>
> \(1\) Section II, *Record Structure for Participant List*, fields:
>
> 11-13 Eligibility
>
> 14 First School Enrollment Date
>
> 15 Project Entry Date
>
> 16 Participant Status
>
> 17 College Grade Level (entry into project)
>
> 18 College Grade Level (Current - at the end of the spring/summer
> term)
>
> 19 Enrollment Status (for the academic year being reported)
>
> 21 Highest Degree Earned in the Reporting Year

-   CFDA 84.048 -- Under III.E.3.a, "Eligibility - Eligibility for
    Subrecipients," deleted the entire second paragraph (the paragraph
    beginning "For the program years beginning July 1, 1999...") because
    the information is outdated. Removed "(Form IV)" from the title of
    the form in III.L.2, "Reporting - Performance Reporting." Added the
    new ED Cross-Cutting requirement, as III.N.2, "Special Test and
    Provisions - Access to Federal Funds for New or Significantly
    Expanded Charter Schools. See ED Cross-Cutting Section."

-   CFDA 84.186 -- Corrected numbering and a reference under III.G.3,
    "Matching, Level of Effort, Earmarking -- Earmarking." Numbering was
    corrected to normal outline numbering, i.e., 3.a(1) and (2), 3.b,
    etc. Under III.G.3.a(2), corrected the reference from "an SEA may
    reserve not more than five percent of its total allocation for
    State-level activities authorized under Section 4112(c) (Section
    4112(c)(1) of the SDFSCA (20 USC 7112(c)(1)))" to "an SEA may
    reserve not more than five percent of its total allocation for
    State-level activities authorized under Section 4112(c) of the
    SDFSCA (20 USC 7112(c)(1)))."

```{=html}
<!-- -->
```
-   CFDA 84.282 -- Revised the last sentence in the first paragraph
    under II, "Program Procedures," by adding "non-SEA" prior to
    "eligible applicant."

-   CFDA 84.287 -- Revised III.H.2, "Period of Availability of Federal
    Funds -- NCLB," as follows: "Funds not obligated by the end of the
    Federal fiscal year for which they were appropriated may be
    obligated for one additional Federal fiscal year. For example, funds
    appropriated for Federal fiscal year 2005 are available from October
    1, 2004 (the beginning of Federal fiscal year 2005) until September
    30, 2005 (Title III of Pub. L. 107-116, School Improvement Programs,
    115 Stat. 2202) plus an additional 12 months (34 CFR sections 76.707
    through 76.709)." Added the new ED Cross-Cutting requirement as,
    III.N.3, "Special Test and Provisions - Access to Federal Funds for
    New or Significantly Expanded Charter Schools. See ED Cross Cutting
    Section."

-   CFDA 84.298 -- Changed name of program from "Innovative Education
    Program Strategies" to "State Grants for Innovative Programs." Added
    the new ED Cross-Cutting requirement, as III.N.3, "Special Test and
    Provisions - Access to Federal Funds for New or Significantly
    Expanded Charter Schools. See ED Cross-Cutting Section."

-   CFDA 93.563 -- Changed regulatory citation under II, "Program
    Procedures -- Source of Governing Requirements" to 45 CFR parts 301
    through 309. Added a new III.A.2.a(11), "Activities Allowed or
    Unallowed - Activities Unallowed," as follows: "Purchased support
    enforcement services which are not secured in accordance with 45 CFR
    section 304.22." Under III.E.1, "Eligibility - Eligibility for
    Individuals," deleted reference to 45 CFR section 302.32(a). Under
    III.G.1.a, "Matching, Level of Effort, Earmarking -- Matching,"
    changed reference from\
    45 CFR section 304.30 to 45 CFR section 304.29.

-   CFDA 93.991 -- Added 2010 under I, "Program Objectives," and
    III.A.1, "Activities Allowed and Unallowed," to read "2000/2010
    objectives" and "for the year 2000/2010," respectively.

-   CFDA 94.006 -- Corrected reference under III.A.1, "Activities
    Allowed or Unallowed," from 42 USC 12754 to 42 USC 12574. Under
    III.E.1, "Eligibility -- Eligibility for Individuals," updated
    living allowances by deleting completed years and adding most recent
    year as follows for Program Year, Minimum Allowance and Maximum
    Allowance:

> 2003-2004 \$9,900 \$19,800

2004-2005 \$10,197 \$20,934

2005-2006 \$10,600 \$21,200

**Part 5 - Clusters of Programs**

> The following non-substantive changes or changes or changes of a less
> significant nature were made to the Student Financial Assistance
> Cluster:

**STUDENT FINANCIAL ASSISTANCE PROGRAMS**

**Department of Education**

**Department of Health and Human Services**

-   Deleted references to CFDA 93.820 -- Scholarships for Students of
    Exceptional Financial Need (EFN) from list of programs in the
    cluster; under II, "Program Procedures -- Source of Governing
    Requirements, and under III.E.1, "Eligibility - Eligibility for
    Individuals."

-   In II, "Program Procedures," revised "(8) making refunds" to "(8)
    returning funds" to reflect current terminology.

-   Under III.E.1, "Eligibility - Eligibility for Individuals - *Annual
    Limits for Unsubsidized Loans*," replaced a reference for Exceptions
    from a Dear Colleague Letter to "Volume 8, Chapter 3 of the 2003-04
    SFA *Handbook*. The *Handbook* is available on the Internet
    (<http://ifap.ed.gov/)>."

-   Under III.L.1.e, "Reporting - Financial Reporting -- *Pell Payment
    Data,*" revised information on key items to: "Key items to test on
    origination records are: Social Security Number, award amount,
    enrollment date, verification status code, transaction number,
    expected family contribution (applicable for phase-in participants
    only), cost of attendance, academic calendar\* and payment
    methodology\*, weeks\*, and clock/credit hours\* (\* optional
    reporting items for phase-in participants; auditor should test when
    participants report these items). Key items to test on disbursement
    records are disbursement date and amount. The information may be
    accessed by the institution for the auditor at
    <http://www.cod.ed.gov/> (34 CFR section 690.83; SFA *Handbook*)."

-   In III.N.3.b, "Special Tests and Provisions - Disbursements To or On
    Behalf of Students-Compliance Requirement," replaced reference to
    the *Federal Register* (67 FR 67071) with 34 CFR section 668.4(b).

-   In III.N.3.b(2)(c), "Special Tests and Provisions - Disbursements To
    or On Behalf of Students-Compliance Requirement," replaced the
    reference to the *Federal Register* (67 FR 67071, 67072) to 34 CFR
    section 668.4(b)(3) and, under *Pell*, the reference to the *Federal
    Register* (67 FR 67073) with 34 CFR section 668.164(g).

-   In III.N.4, "Special Tests and Provisions - Return of Title IV
    Funds - Compliance Requirements," replaced reference under
    *Post-withdrawal Disbursements* to the *Federal Register* (67
    FR 67074) with 34 CFR section 668.164(g) and the reference under
    *Timing of Returning of Title IV Funds*, to the *Federal Register*\
    (67 FR 67074) with 34 CFR section 668.173(b).

-   In III.N.10, "Special Tests and Provisions - Institutional
    Eligibility," replaced the introductory paragraph in 10.c. to
    clarify that zone alternative and provisional certification
    alternative only apply to nonprofit institutions as follows:

> "Nonprofit institutions not meeting ED's financial responsibility
> regulations may, for a limited time, participate in SFA programs under
> either the zone alternative or the provisional certification
> alternative. Generally, a nonprofit institution participating under
> the zone alternative receives a letter to that effect and, as a
> condition of participation, is placed on a cash-monitoring method of
> funding. If a nonprofit institution is participating under the zone
> alternative or the provisional certification alternative, the
> nonprofit institution must notify the Secretary of Education by
> certified mail or electronic or facsimile transmission within 10 days
> of any of the following events (34 CFR section 668.175):"
>
> Revised Suggested Audit Procedure paragraph c. to:
>
> "When the zone alternative or provisional certification alternative is
> applicable to a nonprofit institution:"

-   Updated list of other clusters for programs included in this
    Supplement to delete Consolidated Health Centers Cluster and add
    State Homeland Security Cluster.

    **Part 6 - Internal Control**

```{=html}
<!-- -->
```
-   No changes.

    **Part 7 - Guidance for Auditing Programs Not Included in This
    Compliance Supplement**

```{=html}
<!-- -->
```
-   No changes.

    **Appendix I - Federal Programs Excluded from the A-102 Common
    Rule**

-   No changes.

    **Appendix II - Federal Agency Codification of Certain
    Governmentwide Grant Requirements**

    -   No changes.

        **Appendix III - Federal Agency Contacts for A-133 Audits**

```{=html}
<!-- -->
```
-   This Appendix has been modified to update responsible offices and
    related information, as appropriate.

    **Appendix IV - Internal Reference Tables**

-   Updated tables for changes in this Supplement.

    **Appendix V - List of Changes for the 2004 Compliance Supplement**

-   Updated this appendix to provide a list of changes from the OMB
    Circular A‑133 Compliance Supplement issued in March 2004 to this
    2005 Supplement.

    **Appendix VI**

-   "Department of Homeland Security and the Compliance Supplement"
    deleted. Appendix reserved for future years.

**Appendix VII**

-   No change

**Appendix VIII**

-   No change

    **Appendix IX - Compliance Supplement Core Team**

```{=html}
<!-- -->
```
-   Updated this Appendix to recognize contributions of current
    interagency team responsible for the production of this Supplement.