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STATE JUSTICE INSTITUTE GRANT PROGRAM

FY2024 Grant Management Guide

Pursuant to the State Justice Institute Act of 1984 (42 U.S.C. 10701, et seq.), the State Justice 

Institute (SJI) is authorized to award grants, cooperative agreements, and contracts to state and 

local courts, nonprofit organizations, and others for the purpose of improving the quality of 

justice in the state courts of the United States. 

The State Justice Institute Act contains limitations and conditions on grants, contracts, and 

cooperative agreements awarded by SJI. The Board of Directors has approved additional 

policies governing the use of SJI grant funds. These statutory and policy requirements are set 

forth in this guide. 

This guide is intended to be a reference to be used by grantees to assist in achieving full 

compliance with the items detailed both within the current SJI Grant Application Guide and with 

the contents herein. Questions related to the SJI Grant Program or the SJI GMS should be 

directed to contact@sji.gov. 
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Contents

Compliance Requirements.............................................................................................................. 4

Advocacy .................................................................................................................................... 4

Approval of Key Staff................................................................................................................. 4

Audit ........................................................................................................................................... 4

Budget Revisions........................................................................................................................ 4

Conflict of Interest ...................................................................................................................... 4

Inventions and Patents ................................................................................................................ 5

Lobbying..................................................................................................................................... 5

Matching Requirements.............................................................................................................. 5

Nondiscrimination....................................................................................................................... 6

Political Activities....................................................................................................................... 6

Products....................................................................................................................................... 6

Acknowledgment, Logo, and Disclaimer ............................................................................... 6

Charges for Grant-Related Products/Recovery of Costs ........................................................ 7

Copyrights................................................................................................................................... 8

Due Date ..................................................................................................................................... 8

Distribution ................................................................................................................................. 8

Original Material......................................................................................................................... 8

Prohibition Against Litigation Support....................................................................................... 8

Reporting Requirements ............................................................................................................. 9

Research...................................................................................................................................... 9

Availability of Research Data for Secondary Analysis .......................................................... 9

Confidentiality of Information................................................................................................ 9

Human Subject Protection ...................................................................................................... 9

Supplantation and Construction............................................................................................ 10

Suspension or Termination of Funding................................................................................. 10

Title to Property .................................................................................................................... 10

Financial Requirements ................................................................................................................ 10

Supervision and Monitoring Responsibilities........................................................................... 10

Accounting System................................................................................................................... 11

Total Cost Budgeting and Accounting...................................................................................... 12

Timing of Matching Contributions....................................................................................... 12

Records for Match................................................................................................................. 12
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Maintenance and Retention of Records................................................................................ 12

Project-Related Income......................................................................................................... 13

Payments and Financial Reporting Requirements.................................................................... 13

Request for Reimbursement of Funds................................................................................... 14

Financial Reporting............................................................................................................... 14

Consequences of Non-Compliance with Submission Requirement ..................................... 14

Unallowable Costs.................................................................................................................... 14

Allowability of Costs................................................................................................................ 15

Costs Requiring Prior Approval............................................................................................ 15

Travel Costs.......................................................................................................................... 15

Indirect Costs........................................................................................................................ 15

Audit Requirements.................................................................................................................. 16

Implementation ..................................................................................................................... 16

Resolution and Clearance of Audit Reports.......................................................................... 16

Consequences of Non-Resolution of Audit Issues................................................................ 16

Close-Out of Grants.................................................................................................................. 17

Grantee Close-Out Requirements......................................................................................... 17

Extension of Close-out Period .............................................................................................. 17

Grant Adjustments........................................................................................................................ 17

Grant Adjustments Requiring Prior Written Approval............................................................. 17

Requests for Grant Adjustments............................................................................................... 18

Notification of Approval/Disapproval ...................................................................................... 18

Changes in the Scope of the Grant............................................................................................ 18

Date Changes............................................................................................................................ 18

Temporary Absence of the Project Director............................................................................. 19

Withdrawal of/Change in Project Director ............................................................................... 19

Transferring or Contracting Out of Grant-Supported Activities............................................... 19
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COMPLIANCE REQUIREMENTS

Advocacy

No funds made available by SJI may be used to support or conduct training programs for the 

purpose of advocating particular non-judicial public policies or encouraging non-judicial 

political activities (42 U.S.C. 10706(b)). 

Approval of Key Staff

If the qualifications of an employee or consultant assigned to a key project staff position are not 

adequately described in the application or if there is a change of a person assigned to such a 

position, the recipient must submit a description of the qualifications of the newly assigned 

person to SJI. Prior written approval of the qualifications of the new person assigned to a key 

staff position must be received from SJI before the salary or consulting fee of that person and 

associated costs may be paid or reimbursed from grant funds. 

Audit

Recipients of SJI grants must provide for an annual fiscal audit which includes an opinion on 

whether the financial statements of the grantee present fairly its financial position and its 

financial operations are in accordance with generally accepted accounting principles. If 

requested, a copy of the audit report must be made available electronically to SJI.

Budget Revisions

Budget revisions among direct cost categories that: (a) transfer grant funds to an unbudgeted cost 

category, or (b) individually or cumulatively exceed five percent of the approved original budget 

or the most recently approved revised budget require prior SJI approval. Refer to the Grant 

Adjustments section for additional details about the process to modify the project budget.

Conflict of Interest

Personnel and other officials connected with SJI-funded programs must adhere to the following 

requirements: 

1. No official or employee of a recipient court or organization shall participate 

personally through decision, approval, disapproval, recommendation, the 

rendering of advice, investigation, or otherwise in any proceeding, application, 

request for a ruling or other determination, contract, grant, cooperative agreement, 

claim, controversy, or other particular matter in which SJI funds are used, where, 

to his or her knowledge, he or she or his or her immediate family, partners, 

organization other than a public agency in which he or she is serving as officer, 

director, trustee, partner, or employee or any person or organization with whom 

he or she is negotiating or has any arrangement concerning prospective 

employment, has a financial interest. 
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2. In the use of SJI project funds, an official or employee of a recipient court or 

organization shall avoid any action which might result in or create the appearance 

of: 

a. Using an official position for private gain; or 

b. Affecting adversely the confidence of the public in the integrity of the SJI

program. 

3. Requests for proposals or invitations for bids issued by a recipient of SJI funds or 

a subgrantee or subcontractor will provide notice to prospective bidders that the 

contractors who develop or draft specifications, requirements, statements of work, 

and/ or requests for proposals for a proposed procurement will be excluded from 

bidding on or submitting a proposal to compete for the award of such 

procurement.

Inventions and Patents

If any patentable items, patent rights, processes, or inventions are produced in the course of SJIsponsored work, such fact shall be promptly and fully reported to SJI. Unless there is a prior 

agreement between the grantee and SJI on disposition of such items, SJI shall determine whether 

protection of the invention or discovery may be sought should the awardee choose to pursue such 

a protection. 

Lobbying

Funds awarded to recipients by SJI shall not be used, indirectly or directly, to influence 

Executive Orders or similar promulgations by federal, state or local agencies, or to influence the 

passage or defeat of any legislation by federal, state or local legislative bodies (42 U.S.C. 

10706(a)). 

It is the policy of the Board of Directors to award funds only to support applications submitted 

by organizations that would carry out the objectives of their applications in an unbiased manner. 

Consistent with this policy and the provisions of 42 U.S.C. 10706, SJI will not knowingly award 

a grant to an applicant that has, directly or through an entity that is part of the same organization 

as the applicant, advocated a position before Congress on the specific subject matter of the 

application. 

Matching Requirements

All grant recipients are required to provide a match. A match is the portion of project costs not 

borne by SJI. Match includes both cash and in-kind contributions. Cash match is the direct 

outlay of funds by the grantee or a third party to support the project. In-kind match for state and 

local courts or other units of government consists of contributions of time and/or services of 

current staff members, new employees, space, supplies, etc., made to the project by the grantee 

or others (e.g., advisory board members) working directly on the project. Generally, these same 

items are considered cash match for non-governmental entities. For non-governmental entities,

federally-approved indirect cost rate may be used as an in-kind match for that portion of the rate 
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that exceeds the SJI Guideline’s limit of permitted charges for indirect costs (75 percent of 

salaries and benefits). 

Under normal circumstances, allowable match may be incurred only during the project period. 

The amount and nature of required match depends on the type of grant. Refer to the Match 

Requirements section of the SJI Grant Application Guide for details by grant type.

The grantee is responsible for ensuring that the total amount of match proposed is contributed. If 

a proposed contribution is not fully met, SJI may reduce the award amount accordingly, to

maintain the ratio originally provided for in the award agreement. Match should be expended at 

the same rate as SJI funding.

The Board of Directors looks favorably upon any unrequired match contributed by applicants 

when making grant decisions. The match requirement may be waived in exceptionally rare 

circumstances upon the request of the chief justice of the highest court in the state, or the highest 

ranking official in the requesting organization, and approval by the Board of Directors (42 

U.S.C. 10705(d)). The Board of Directors encourages all applicants to provide the maximum 

amount of cash and in-kind match possible, even if a waiver is approved. The amount and nature 

of match are criteria in the grant selection process. 

Other federal department and agency funding may not be used for cash match.

Nondiscrimination

No person may, on the basis of race, sex, national origin, disability, color, or creed be excluded 

from participation in, denied the benefits of, or otherwise subjected to discrimination under any 

program or activity supported by SJI funds. Recipients of SJI funds must immediately take any 

measures necessary to effectuate this provision. 

Political Activities

No recipient may contribute or make available SJI funds, program personnel, or equipment to 

any political party or association, or the campaign of any candidate for public or party office. 

Recipients are also prohibited from using funds in advocating or opposing any ballot measure, 

initiative, or referendum. Officers and employees of recipients shall not intentionally identify SJI 

or recipients with any partisan or nonpartisan political activity associated with a political party or 

association, or the campaign of any candidate for public or party office (42 U.S.C. 10706(a)). 

Products 

Acknowledgment, Logo, and Disclaimer 

Recipients of SJI funds must acknowledge prominently on all products developed with grant 

funds that support was received from the SJI. The ‘‘SJI’’ logo must appear on the front cover of 

a written product, or in the opening frames of a multimedia product, unless another placement is 

approved in writing by SJI. This includes final products printed or otherwise reproduced during 

the grant period, as well as re-printings or reproductions of those materials following the end of 
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the grant period. The SJI logo can be downloaded from SJI’s website at the bottom of the Grants 

page. .

Recipients also must display the following disclaimer on all grant products: ‘‘This [document, 

film, videotape, etc.] was developed under [grant/cooperative agreement] number SJI-[insert 

number] from the State Justice Institute. The points of view expressed are those of the 

[author(s), filmmaker(s), etc.] and do not necessarily represent the official position or policies of 

the State Justice Institute.’’

For Project Grants, in addition to other required grant products and reports, recipients must 

provide a one-page executive summary of the project. The summary should include a 

background on the project, the tasks undertaken, and the outcome. In addition, the summary 

should provide the performance metrics that were used during the project, and how performance 

will be measured in the future.

For Technical Assistance (TA) Grants, grantees must submit a final report that explains how it 

intends to act on the consultant’s recommendations, as well as a copy of the consultant’s written 

report. Both must be submitted in electronic format.

For Curriculum Adaptation and Training (CAT) Grants, grantees must submit an electronic 

version of the agenda or schedule, outline of presentations and/or relevant instructor’s notes, 

copies of overhead transparencies, power point presentations, or other visual aids, exercises, case 

studies and other background materials, hypotheticals, quizzes, and other materials involving the 

participants, manuals, handbooks, conference packets, evaluation forms, and suggestions for 

replicating the program, including possible faculty or the preferred qualifications or experience 

of those selected as faculty, developed under the grant at the conclusion of the grant period, 

along with a final report that includes any evaluation results and explains how the grantee 

intends to present the educational program in the future, as well as the consultant’s or trainer’s 

report. All items must be submitted in electronic format.

Charges for Grant-Related Products/Recovery of Costs 

1. SJI’s mission is to support improvements in the quality of justice and foster 

innovative, efficient solutions to common issues faced by all courts. SJI has 

recognized and established procedures for supporting research and development 

of grant products (e.g. a report, curriculum, video, software, database, or website) 

through competitive grant awards based on merit review of proposed projects. To 

ensure that all grants benefit the entire court community, projects SJI considers 

worthy of support (in whole or in part), are required to be disseminated widely 

and available for public consumption. This includes open-source software and 

interfaces. Costs for development, production, and dissemination are allowable as 

direct costs to SJI. 

2. Applicants must disclose their intent to sell grant-related products in the 

application. Grantees must obtain SJI’s prior written approval of their plans to 

recover project costs through the sale of grant products. Written requests to 
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recover costs ordinarily should be received during the grant period and must

specify the nature and extent of the costs to be recouped, the reason that such 

costs were not budgeted (if the rationale was not disclosed in the approved 

application), the number of copies to be sold, the intended audience for the 

products to be sold, and the proposed sale price. If the product is to be sold for 

more than $25, the written request also must include a detailed itemization of 

costs that will be recovered and a certification that the costs were not supported

by either SJI grant funds or grantee matching contributions. 

3. In the event that the sale of grant products results in revenues that exceed the 

costs to develop, produce, and disseminate the product, the revenue must continue 

to be used for the authorized purposes of SJI-funded project or other purposes 

consistent with the State Justice Institute Act that have been approved by SJI. 

Copyrights

Except as otherwise provided in the terms and conditions of a SJI award, a recipient is free to 

copyright any books, publications, or other copyrightable materials developed in the course of a 

SJI-supported project, but SJI shall reserve a royalty-free, nonexclusive and irrevocable right to 

reproduce, publish, or otherwise use, and to authorize others to use, the materials for purposes 

consistent with the State Justice Institute Act. 

Due Date

All products and, for TA and CAT grants, consultant and/or trainer reports are to be completed 

and distributed not later than the end of the award period, not the 90-day close out period. The 

latter is only intended for grantee final reporting and to liquidate obligations. 

Distribution

In addition to the distribution specified in the grant application, grantees shall send an electronic

version of all products in HTML or PDF format to SJI.

Original Material

All products prepared as the result of SJI-supported projects must be originally developed

material unless otherwise specified in the award documents. Material not originally developed 

that is included in such products must be properly identified, whether the material is in a 

verbatim or extensive paraphrase format. 

Prohibition Against Litigation Support 

No funds made available by SJI may be used directly or indirectly to support legal assistance to 

parties in litigation, including cases involving capital punishment. 
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Reporting Requirements 

1. Recipients of SJI funds must submit Quarterly Progress and Financial Status 

Reports within 30 days of the close of each calendar quarter (that is, no later than 

January 30, April 30, July 30, and October 30). The Quarterly Progress Reports 

shall include a narrative description of project activities during the calendar 

quarter, the relationship between those activities and the task schedule and 

objectives set forth in the approved application or an approved adjustment thereto, 

any significant problem areas that have developed and how they will be resolved, 

and the activities scheduled during the next reporting period. Failure to comply 

with the requirements of this provision could result in the termination of a 

grantee’s award. 

2. The quarterly Financial Reporting must be submitted in accordance with this 

Guide. A final project Progress Report and Financial Status Report shall be 

submitted within 90 days after the end of the grant period.

Research 

Availability of Research Data for Secondary Analysis 

Upon request, grantees must make available for secondary analysis backup files containing 

research and evaluation data collected under an SJI grant and the accompanying code manual. 

Grantees may recover the actual cost of duplicating and mailing or otherwise transmitting the 

data set and manual from the person or organization requesting the data. Grantees may provide 

the requested data set in the format in which it was created and analyzed. 

Confidentiality of Information

Except as provided by federal law other than the State Justice Institute Act, no recipient of 

financial assistance from SJI may use or reveal any research or statistical information furnished 

under the Act by any person and identifiable to any specific private person for any purpose other 

than the purpose for which the information was obtained. Such information and copies thereof 

shall be immune from legal process, and shall not, without the consent of the person furnishing 

such information, be admitted as evidence or used for any purpose in any action, suit, or other 

judicial, legislative, or administrative proceedings.

Human Subject Protection

Human subjects are defined as individuals who are participants in an experimental procedure or 

who are asked to provide information about themselves, their attitudes, feelings, opinions, and/or 

experiences through an interview, questionnaire, or other data collection technique. All research 

involving human subjects shall be conducted with the informed consent of those subjects and in 

a manner that will ensure their privacy and freedom from risk or harm and the protection of 

persons who are not subjects of the research but would be affected by it, unless such procedures 

and safeguards would make the research impractical. In such instances, SJI must approve 

procedures designed by the grantee to provide human subjects with relevant information about 

the research after their involvement and to minimize or eliminate risk or harm to those subjects 

due to their participation. 
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Supplantation and Construction

To ensure that SJI funds are used to supplement and improve the operation of state courts, rather 

than to support basic court services, SJI funds shall not be used for the following purposes: 

1. To supplant state or local funds supporting a program or activity (such as paying 

the salary of court employees who would be performing their normal duties as 

part of the project, or paying rent for space which is part of the court’s normal 

operations) 

2. To construct court facilities or structures

3. Solely to purchase equipment 

Suspension or Termination of Funding

After providing a recipient reasonable notice and opportunity to submit written documentation 

demonstrating why fund termination or suspension should not occur, SJI may terminate or 

suspend funding of a project that fails to comply substantially with the Act, the Grant 

Application and Management Guides, or the terms and conditions of the award (42 U.S.C. 

10708(a)). 

Title to Property

At the conclusion of the project, title to all expendable and nonexpendable personal property 

purchased with SJI funds shall vest in the recipient court, organization, or individual that 

purchased the property if certification is made to and approved by SJI that the property will 

continue to be used for the authorized purposes of the SJI-funded project or other purposes 

consistent with the State Justice Institute Act. If such certification is not made or SJI

disapproves such certification, title to all such property with an aggregate or individual value of 

$1,000 or more shall vest in SJI, which will direct the disposition of the property. 

FINANCIAL REQUIREMENTS

The purpose of this section is to establish accounting system requirements and offer guidance on 

procedures to assist all grantees, sub-grantees, contractors, and other organizations in: 

1. Complying with the statutory requirements for the award, disbursement, and 

accounting of funds 

2. Complying with regulatory requirements of SJI for the financial management and 

disposition of funds 

3. Generating financial data to be used in planning, managing, and controlling 

projects 

4. Facilitating an effective audit of funded programs and projects 

Supervision and Monitoring Responsibilities 

All grantees receiving awards from SJI are responsible for the management and fiscal control of 

all funds. Responsibilities include accounting for receipts and expenditures, maintaining 
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adequate financial records, and refunding expenditures disallowed by audits. If the project 

includes subawards, the grantees responsibilities also include: 

1. Reviewing Financial Operations. The grantee or its designee must be familiar 

with, and periodically monitor, its sub-grantee’s financial operations, records 

system, and procedures. Particular attention should be directed to the maintenance 

of current financial data. 

2. Recording Financial Activities. The sub-grantee’s grant award or contract 

obligation, as well as cash advances and other financial activities, must be 

recorded in the financial records of the grantee or its designee in summary form. 

Sub-grantee expenditures should be recorded on the books of the state supreme 

court or evidenced by report forms duly filed by the sub-grantee. Matching 

contributions provided by sub-grantees should likewise be recorded, as should 

any project income resulting from program operations. 

3. Budgeting and Budget Review. The grantee or its designee must ensure that 

each sub-grantee prepares an adequate budget as the basis for its award 

commitment. The state supreme court should maintain the details of each project 

budget on file. 

4. Accounting for Match. The grantee or its designee will ensure that sub-grantees 

comply with the match requirements specified in this guide. 

5. Audit Requirement. The grantee or its designee is required to ensure that subgrantees meet the necessary audit requirements set forth by SJI. 

6. Reporting Irregularities. The grantee, its designees, and its sub-grantees are 

responsible for promptly reporting to SJI the nature and circumstances 

surrounding any financial irregularities discovered. 

Accounting System

The grantee is responsible for establishing and maintaining an adequate system of accounting 

and internal controls and for ensuring that an adequate system exists for each of its sub-grantees 

and contractors. An acceptable and adequate accounting system: 

1. Properly accounts for receipt of funds under each grant awarded and the 

expenditure of funds for each grant by category of expenditure (including 

matching contributions and project income) 

2. Assures that expended funds are applied to the appropriate budget category 

included within the approved grant 

3. Presents and classifies historical costs of the grant as required for budgetary and 

evaluation purposes

4. Provides cost and property controls to assure optimal use of grant funds 

5. Is integrated with a system of internal controls adequate to safeguard the funds 

and assets covered, check the accuracy and reliability of the accounting data, 

promote operational efficiency, and assure conformance with any general or 

special conditions of the grant 

6. Meets the prescribed requirements for periodic financial reporting of operations 

7. Provides financial data for planning, control, measurement, and evaluation of 

direct and indirect costs 
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Total Cost Budgeting and Accounting

Accounting for all funds awarded by SJI must be structured and executed on a ‘‘Total Project 

Cost’’ basis. That is, total project costs, including SJI funds, state and local matching shares, and 

any other fund sources included in the approved project budget serve as the foundation for fiscal 

administration and accounting. Grant applications and financial reports require budget and cost 

estimates based on total costs.

Timing of Matching Contributions 

Matching contributions should be applied at the same time as the obligation of SJI funds. 

Ordinarily, the full matching share must be obligated during the award period; however, with the 

written permission of SJI, contributions made following approval of the grant by the Board of 

Directors, but before the beginning of the grant, may be counted as match. If a proposed cash or 

in-kind match is not fully met, SJI may reduce the award amount accordingly to maintain the 

ratio of grant funds to matching funds stated in the award agreement. 

Records for Match

All grantees must maintain records that clearly show the source, amount, and timing of all 

matching contributions. In addition, if a project has included, within its approved budget, 

contributions which exceed the required matching portion, the grantee must maintain records of 

those contributions in the same manner as it does SJI funds and required matching shares. For 

all grants made to state and local courts, the state supreme court has primary responsibility for 

grantee/sub-grantee compliance with the requirements of this section. 

Maintenance and Retention of Records

All financial records, including supporting documents, statistical records, and all other 

information pertinent to grants, sub-grants, cooperative agreements, or contracts under grants, 

must be retained by each organization participating in a project for at least three years for 

purposes of examination and audit. State supreme courts may impose record retention and 

maintenance requirements in addition to those prescribed in this section. 

1. Coverage: The retention requirement extends to books of original entry, source 

documents supporting accounting transactions, the general ledger, subsidiary ledgers, 

personnel and payroll records, canceled checks, and related documents and records. 

Source documents include copies of all grant and sub-grant awards, applications, and 

required grantee/sub-grantee financial and narrative reports. Personnel and payroll 

records shall include the time and attendance reports for all individuals reimbursed under 

a grant, sub-grant or contract, whether they are employed full-time or part-time. Time and 

effort reports are required for consultants. 

2. Retention Period: The three-year retention period starts from the date of the submission 

of the final expenditure report.

3. Maintenance: Grantees and sub-grantees are expected to see that records of different 

fiscal years are separately identified and maintained so that requested information can be 
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readily located. Grantees and sub-grantees are also obligated to protect records 

adequately against fire or other damage. When records are stored away from the 

grantee’s/sub-grantee’s principal office, a written index of the location of stored records 

should be on hand, and ready access should be assured. 

4. Access: Grantees and sub-grantees must give any authorized representative of SJI access 

to and the right to examine all records, books, papers, and documents related to an SJI 

grant.

Project-Related Income

Records of the receipt and disposition of project-related income must be maintained by the 

grantee in the same manner as required for the project funds that gave rise to the income and 

must be reported to SJI (see Financial Reporting). The policies governing the disposition of the 

various types of project-related income are listed below.

1. Interest: A state and any agency or instrumentality of a state, including institutions 

of higher education and hospitals, shall not be held accountable for interest earned on 

advances of project funds. When funds are awarded to sub-grantees through a state, 

the sub-grantees are not held accountable for interest earned on advances of project 

funds. Local units of government and nonprofit organizations that are grantees must 

refund any interest earned. Grantees shall ensure minimum balances in their 

respective grant cash accounts. 

2. Royalties: The grantee/sub-grantee may retain all royalties received from copyrights 

or other works developed under projects or from patents and inventions unless the 

terms and conditions of the grant provide otherwise.

3. Registration and Tuition Fees: Registration and tuition fees may be considered as 

cash match with prior written approval from SJI. Estimates of registration and tuition 

fees, and any expenses to be offset by the fees, should be included in the application 

budget forms and narrative. 

4. Income from the Sale of Grant Products: If the sale of products occurs during the 

project period, the income may be treated as cash match with the prior written 

approval of SJI. The costs and income generated by the sales must be reported on the 

Quarterly Financial Status Reports and documented in an auditable manner. 

Whenever possible, the intent to sell a product must be disclosed in the application or 

reported to SJI in writing once a decision to sell products has been made. The grantee 

must request approval to recover its product development, reproduction, and 

dissemination costs. (See Charges for Grant-Related Products/Recovery of Costs.)

5. Other: Other project income shall be treated in accordance with disposition 

instructions set forth in the grant’s terms and conditions. 

Payments and Financial Reporting Requirements 

The procedures and regulations set forth below are applicable to all SJI grant funds and grantees. 
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Request for Reimbursement of Funds

Grantees will receive funds on a reimbursable, U.S. Treasury ‘‘check-issued’’ or electronic funds 

transfer (EFT) basis. Upon receipt, review, and approval of a Request for Reimbursement (Form 

R) by SJI, payment will be issued directly to the grantee or its designated fiscal agent. The Form 

R, along with the instructions for its preparation, and the SF 3881 Automated Clearing House 

(ACH/Miscellaneous Payment Enrollment Form for EFT) are available for download and 

submission in the SJI GMS.

 

Financial Reporting 

1. General Requirements. To obtain financial information concerning the use of 

funds, SJI requires that grantees/sub-grantees submit timely reports for review. 

2. Due Dates and Contents. A Financial Status Report is required from all grantees 

for each active quarter on a calendar-quarter basis. This report is due within 30 

days after the close of the calendar quarter. It is designed to provide financial 

information relating to SJI funds, state and local matching shares, project income, 

and any other sources of funds for the project, as well as information on 

obligations and outlays. The Financial Status Report (Form F), along with 

instructions, are accessible in the SJI GMS. If a grantee requests substantial 

payment for a project prior to the completion of a given quarter, SJI may request a 

brief summary of the amount requested, by object class, to support the Request 

for Reimbursement. 

Consequences of Non-Compliance with Submission Requirement 

Failure of the grantee to submit required financial and progress reports may result in suspension 

or termination of grant reimbursement. 

Unallowable Costs

To ensure that funds made available under this chapter are used to supplement and improve the 

operation of State courts, rather than to support basic court services, funds shall not be used—

(1) to supplant State or local funds currently supporting a program or activity; or

(2) to construct court facilities or structures, except to remodel existing facilities to 

demonstrate new architectural or technological techniques, or to provide temporary 

facilities for new personnel or for personnel involved in a demonstration or 

experimental program.

Examples of basic court services include:

• Hiring of personnel

• Purchase and/or maintenance of equipment

• Purchase of software and/or licenses

• Purchase of internet access or service

• Supplies to support the day-to-day operations of courts
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The final determination of what constitutes basic court services is made by SJI and is not 

negotiable. Applicants are encouraged to contact SJI Staff to discuss any questions related to 

this section prior to or during the application process.

Likewise, meals and refreshments are generally not allowable costs unless the applicant or 

grantee obtains written prior approval from SJI. This applies to all awards, including contracts, 

grants, and cooperative agreements. In general, SJI may approve such costs only in very rare 

instances where: 

➢ Sustenance is not otherwise available (e.g., extremely remote areas); 

➢ The size of the event and nearby food/beverage vendors would make it impractical to not 

provide meals and/or refreshments; and/or 

➢ A special presentation at a conference requires a plenary address where there is no other 

time for sustenance to be obtained. 

Trinkets (items such as hats, mugs, portfolios, t-shirts, coins, gift bags, gift cards, etc.) may not 

be purchased with SJI grant funding.

Allowability of Costs 

Costs Requiring Prior Approval 

1. Pre-agreement Costs. The written prior approval of SJI is required for costs 

considered necessary but which occur prior to the start date of the project period. 

2. Equipment. Grant funds may be used to purchase or lease only that equipment 

essential to accomplishing the goals and objectives of the project. The written

prior approval of SJI is required when the amount of automated data processing 

(ADP) equipment to be purchased or leased exceeds $10,000 or software to be 

purchased exceeds $3,000. 

3. Consultants. The written prior approval of SJI is required when the rate of 

compensation to be paid a consultant exceeds $800 a day. SJI funds may not be 

used to pay a consultant more than $1,100 per day. 

4. Budget Revisions. Budget revisions among direct cost categories that (i) transfer 

grant funds to an unbudgeted cost category or (ii) individually or cumulatively 

exceed five percent (5%) of the approved original budget or the most recently 

approved revised budget require prior SJI approval. 

Travel Costs

Transportation and per diem rates must comply with the policies of the grantee. If the grantee 

does not have an established written travel policy, then travel rates must be consistent with those 

established by the U.S. General Services Administration. SJI funds may not be used to cover 

the transportation or per diem costs of a member of a national organization to attend an annual or 

other regular meeting, or conference of that organization. 

Indirect Costs

Indirect costs are only applicable to organizations that are not state courts or government 

agencies. These are costs of an organization that are not readily assignable to a particular project 
9/29/2023 16

but are necessary to the operation of the organization and the performance of the project. The 

cost of operating and maintaining facilities, depreciation, and administrative salaries are 

examples of the types of costs that are usually treated as indirect costs. Although SJI’s policy 

requires all costs to be budgeted directly, it will accept indirect costs if a grantee has an indirect 

cost rate approved by a federal agency. However, recoverable indirect costs are limited to no 

more than 75 percent of a grantee’s direct personnel costs (salaries plus fringe benefits). 

Approved Plan Available

1. A copy of an indirect cost rate agreement or allocation plan approved for a 

grantee during the preceding two years by any federal granting agency on the 

basis of allocation methods substantially in accord with those set forth in the 

applicable cost circulars must be submitted to SJI. 

2. Where flat rates are accepted in lieu of actual indirect costs, grantees may not also 

charge expenses normally included in overhead pools, e.g., accounting services, 

legal services, building occupancy and maintenance, etc., as direct costs. 

Audit Requirements 

Implementation

Grantees must provide for an annual fiscal audit. This requirement also applies to a state or local 

court receiving a sub-grant from the state supreme court. Audits conducted using generally 

accepted auditing standards in the United States will satisfy the requirement for an annual fiscal 

audit. The audit must be conducted by an independent Certified Public Accountant, or a state or 

local agency authorized to audit government agencies. The audit report must be made available 

to SJI electronically, if requested.

Resolution and Clearance of Audit Reports 

Timely action on recommendations by responsible management officials is an integral part of the 

effectiveness of an audit. Each grantee must have policies and procedures for acting on audit 

recommendations by designating officials responsible for: 

1. Follow-up

2. Maintaining a record of the actions taken on recommendations and time schedules

3. Responding to and acting on audit recommendations

4. Submitting periodic reports to SJI on recommendations and actions taken

Consequences of Non-Resolution of Audit Issues 

Ordinarily, SJI will not make a subsequent grant award to an applicant that has an unresolved 

audit report involving SJI awards. Failure of the grantee to resolve audit questions may also 

result in the suspension or termination of payments for active SJI grants to that organization. 
9/29/2023 17

Close-Out of Grants 

Grantee Close-Out Requirements 

Within 90 days after the end date of the grant or any approved extension thereof, the following 

documents must be submitted to SJI by grantees: 

1. Financial Status Report. The final report of expenditures must have no 

unliquidated obligations and must indicate the exact balance of unobligated funds. 

Any unobligated/ unexpended funds will be de-obligated from the award by SJI.

Final payment requests for obligations incurred during the award period must be 

submitted to SJI prior to the end of the 90-day close-out period. 

2. Final Progress Report. This report must describe the project activities during the 

final calendar quarter of the project and the close-out period, including to whom 

project products have been disseminated; provide a summary of activities during 

the entire project; specify whether all the objectives set forth in the approved 

application or an approved adjustment have been met and, if any of the objectives 

have not been met, explain why not; and discuss what, if anything, could have 

been done differently that might have enhanced the impact of the project or 

improved its operation. These reporting requirements apply at the conclusion of 

every grant. 

Extension of Close-out Period 

Upon the written request of the grantee, SJI may extend the close-out period to assure 

completion of the grantee’s close-out requirements. Requests for an extension must be submitted 

at least 14 days before the end of the close-out period and must explain why the extension is 

necessary and what steps will be taken to assure that all the grantee’s responsibilities will be met 

by the end of the extension period. Extensions must be submitted via the SJI GMS as Grant 

Adjustments.

GRANT ADJUSTMENTS

All requests for programmatic or budgetary adjustments requiring SJI approval must be 

submitted by the project director in a timely manner (ordinarily 30 days prior to the 

implementation of the adjustment being requested). All requests for changes from the approved 

application will be carefully reviewed for both consistency with this Grant Management Guide 

and the enhancement of grant goals and objectives. Failure to submit adjustments in a timely 

manner may result in the termination of a grantee’s award. 

Grant Adjustments Requiring Prior Written Approval 

The following grant adjustments require the prior written approval of SJI: 

1. Budget revisions among direct cost categories that (a) transfer grant funds to an 

unbudgeted cost category or (b) individually or cumulatively exceed five percent 

(5%) of the approved original budget or the most recently approved revised 

budget.

2. A change in the scope of work to be performed or the objectives of the project. 

3. A change in the project site. 
9/29/2023 18

4. A change in the project period, such as an extension of the grant period and/or 

extension of the final financial or progress report deadline. 

5. Satisfaction of special conditions, if required. 

6. A change in or temporary absence of the project director. 

7. The assignment of an employee or consultant to a key staff position whose 

qualifications were not described in the application, or a change of a person 

assigned to a key project staff position. 

8. A change in or temporary absence of the person responsible for managing and 

reporting on the grant’s finances. 

9. A change in the name of the grantee organization. 

10. A transfer or contracting out of grant-supported activities.

11. A transfer of the grant to another recipient. 

12. Pre-agreement costs. 

13. The purchase of automated data processing equipment and software.

14. Consultant rates. 

15. A change in the nature or number of the products to be prepared or the way a 

product would be distributed. 

Requests for Grant Adjustments

All grantees must promptly notify SJI, in writing, of events or proposed changes that may require 

adjustments to the approved project design. In requesting an adjustment, the grantee must set 

forth the reasons and basis for the proposed adjustment and any other information the program 

manager determines would help SJI’s review. All requests for Grant Adjustments must be 

submitted via the SJI GMS.

Notification of Approval/Disapproval

If the request is approved, the grantee will be sent a Grant Adjustment signed by the SJI 

Executive Director. If the request is denied, the grantee will be sent a written explanation of the 

reasons for the denial. 

Changes in the Scope of the Grant

Major changes in scope, duration, training methodology, or other significant areas must be 

approved in advance by SJI. A grantee may make minor changes in methodology, approach, or 

other aspects of the grant to expedite achievement of the grant’s objectives with subsequent 

notification to SJI. 

Date Changes

A request to change or extend the grant period must be made at least 30 days in advance of the 

end date of the grant. A revised task plan should accompany a request for an extension of the 

grant period, along with a revised budget if shifts among budget categories will be needed. A 

request to change or extend the deadline for the final financial report or final progress report 

must be made at least 14 days in advance of the report deadline.
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Temporary Absence of the Project Director

Whenever an absence of the project director is expected to exceed a continuous period of one 

month, the plans for the conduct of the project director’s duties during such absence must be 

approved in advance by SJI. This information must be provided in a letter signed by an 

authorized representative of the grantee/sub-grantee at least 30 days before the departure of the 

project director, or as soon as it is known that the project director will be absent. The grant may 

be terminated if arrangements are not approved in advance by SJI.

Withdrawal of/Change in Project Director

If the project director relinquishes or expects to relinquish active direction of the project, SJI

must be notified immediately. In such cases, if the grantee/sub-grantee wishes to terminate the 

project, SJI will forward procedural instructions upon notification of such intent. If the grantee 

wishes to continue the project under the direction of another individual, a statement of the 

candidate’s qualifications should be sent to SJI for review and approval. The grant may be 

terminated if the qualifications of the proposed individual are not approved in advance by SJI. 

Transferring or Contracting Out of Grant-Supported Activities

No principal activity of a grant-supported project may be transferred or contracted out to another 

organization without specific prior approval by SJI. All such arrangements must be formalized 

in a contract or other written agreement between the parties involved. Copies of the proposed 

contract or agreement must be submitted for prior approval of SJI at the earliest possible time. 

The contract or agreement must state, at a minimum, the activities to be performed, the time 

schedule, the policies and procedures to be followed, the dollar limitation of the agreement, and 

the cost principles to be followed in determining what costs, both direct and indirect, will be 

allowed. The contract or other written agreement must not affect the grantee’s overall 

responsibility for the direction of the project and accountability to SJI.