# Presentation: 486194

## Welcome to...

**&**
**Financial Monitoring **

**Welcome to...**

- Archived Information

- Archived Information

## The 

*Greater flexibility for managing *
*ED Discretionary Grants*

_**The **_
_**“**__**Expanded Authorities”**_
_** **__**Amendments**_

## “Expanded Authorities”

- GOALS**:**

_**“**__**Expanded Authorities”**_

** **Increase flexibility
-  Increase accountability
-  Reduce paperwork burden
-  Develop partnerships

*** ******Promote successful project outcomes***

## “Expanded Authorities”  

_**“**__**Expanded Authorities”  **_

** **Pre-award Costs
-  Carryover
-  Budget Transfers
-  Time Extensions

## Pre-award Costs

-       Incurred *up to 90 days*
-   before budget period begins

** **_**No**_** prior approval required**
**Applies to New and NCC awards**

## Pre-award Costs

_**Pre-award Costs**_

- Reasonable expectation of receiving a grant

- Incurred at own risk
- ED funds are not available for drawdown until the budget period begins
- Not for cost over-runs

## Pre-award Costs

- Incurred *more than 90 days*  before budget period begins:

**Requires prior approval**

- OK

## Carryover

_**Carryover**_

- Unexpended funds are carried over without prior approval

- For ***any*** allowable cost within the approved project scope

- finishing uncompleted activities
- new activities within scope

## Carryover

_**Carryover**_

- Program Office may require a written statement

- How will unexpended funds be used?
- _When_: At time of funding decision
- In rare cases, new funds may be reduced

## Budget Transfers

_**Budget Transfers**_

_*No*_ prior approval required for most budget transfers

- Exceptions in EDGAR:
- Transfer training funds to other categories
- Transfer or contracting out any work

- Check OMB Cost Principles for other exceptions

- 10%rule

## EDGAR Prior Approval Requirements

_**EDGAR Prior Approval Requirements**_

- Changes in project scope or objectives

- IHE and non-profit project directors:
- Absence for more than 3 months
- 25% reduction in time

- Need for additional federal funds

- Changes in key personnel

## Time Extensions

-    Final Year:

- One-time extension for up to one year without prior approval
- Grantees should carefully consider time extension needs

## Time Extensions

- Send written notice to program officer:

- No later than 10 days before project ends
- State reasons for extension
- Include revised expiration date

## Time Extensions

- Not just for using unexpended funds

- No change to scope or objectives

- No additional federal funds

## Important Reminders

- Check grant terms, conditions and grant award attachments for possible exceptions
- In rare circumstances, some or all may be denied
- When in doubt, call your Program Officer

## Conclusion

_**Conclusion**_

- New spirit of partnership

**We welcome your feedback. **
**Let us know what’s working and what’s not.**
** ****Internet address: grantspolicy@ed.gov**

- Focus on successful
- project outcomes!

## questions?

## Financial Management/

*Grant Administration & Payment System*

_**Financial Management/**_
_** **__**Monitoring in GAPS**_

## Grant Administration & Payment System

_**Grant Administration & Payment System**_

- Request drawdown by grant award number
- Drawdowns treated as expenditures

## Grantee

_**Grantee**_

- receives grant award from ED

- administers the grant in accordance with ED regulations
- DUNS number needed to participate

## Payee

_**Payee**_

- Requests and manages funds

- May be the grantee or other entity identified by the grantee
- Needs DUNS Number to participate

## 

_**Payment Methods**_

- Advance Payment   	     	Method

- U.S. Department of Education

- 
- Reimbursement Payment 	Method

## Receiving ED Funds

_**Receiving ED Funds**_

_**Your Bank**_

## Cash Management

- Drawn funds must be expended within three business days after they are deposited in your bank account.

## Monitoring For Results

- Performance monitoring
- Financial monitoring

## The Results Act

_**The Results Act**_

- Develop program standards & indicators
- Ties federal funding to results!
- What is happening with the money?

- The Government Performance and Results Act of 1993 (GPRA)

##  		*GAPS*

_**Grant Teams Monitor**_
** ****	****	*******_**GAPS***_

- Why:
- Identify performance problems
- Identify financial management problems
- Work in partnership to resolve

## Rate of draws: 

-   Commensurate with   	 	approved scope of 			work & project 		milestones?

_**What Grant Teams Are Looking For**_

## Exercise #1 - LLU

- Project was on track, meeting goals and objectives
- Performance report indicated $200,000 expended
- GAPS shows no funds
- 	drawn down

_**Exercise #1 - LLU**_

- Go, Fighting Lizards!

## Exercise #2 - BobU

- Performance report indicates $25,000 unexpended
- Program officer calls
- 	grantee to discuss why

_**Exercise #2 - BobU**_

- Bob

## Exercise #3 - SKI

- Key milestones being reached on schedule
- GAPS indicates all $400,000 was drawn down in first three months

_**Exercise #3 - SKI**_

- Smarter Kids . . .  Start Here!

## When Grant Teams Check GAPS

- Throughout the life of the grant
- At the end of each budget period
- Before performance monitoring
- Before technical assistance contacts

## Red Flags

- Not drawing down funds//Regular draw downs not being made

- Is work being performed?
- Are performance indicators being met?
- Is there a financial management problem?
-   Work is being performed, but payee is 		      not drawing down funds

## Red Flags

- Large amount of unobligated funds at end of budget period

- Has grantee made substantial progress?
- Other issues:
- Did project have a late start (Year 1) ?
- Did key personnel leave the project?

## Red Flags

- Excessive amount of funds drawn down

- Draws exceed immediate need
-        (3-day rule)
- Draws not in line with project scope & milestones

## Conclusion

- Project Directors: Communicate with your Fiscal Staff

_**Conclusion**_

- Ensure that the drawdowns in GAPS reflect status of project
- Grant Teams rely on drawdown in GAPS to monitor your project

## questions?

## Thanks for attending!

***Thanks****** for attending!***
-  Please complete an  	    evaluation form and -
*Good Luck** with your *
*ED discretionary grant!*