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Office of Extramural Programs, CSREES-USDA 2008 CSREES Administrative Officers Conference Session #62, May 7, 2008, 1:00 pm – 2:15 pm Savannah, Georgia 1994 Tribal College Endowment Interest By Barry Sims, Staff Accountant, Oversight Section, and Kenneth Keys, Team Leader, Funds Management Section Office of Extramural Programs, CSREES-USDA Good afternoon. I am Barry Sims, Staff Accountant in the Policy, Oversight, and Funds Management Branch. Today, I will be discussing issues regarding the 1994 Tribal College Endowment Interest. Kenneth Keys, Team Leader in the Funds Management Section, will discuss completion of the SF-269.

1994 Land-Grant Institutions’ Endowment Interest Endowment Corpus is $89,104,750 (appropriated through FY 2007) Interest Distribution for FY 2008 is $3,080,640 (excluding Federal Administration) Interest earned is made available in the following fiscal year Funds remain available until expended (differs from other awards) The Endowment corpus, which is held in trust for the eligible institutions, is administered by the U.S. Department of Treasury. The funds are invested in interest-bearing Treasury securities. CSREES computes the annual interest allocation and distributes the interest on behalf of the Treasury Department.

Administration (Award and Post-Award) Oversight Section (OS) Computes and distributes the interest Award via memo from CSREES Administrator (Identifies the Amount) Processes SF-269s Receives Primary Contact Person Form Provides Financial Administrative Guidance Science and Education Resources Department (SERD) Provides Programmatic Guidance Collects Planning Document and Annual Progress Report As you can see, the Oversight Section is responsible for determining the amount of Tribal College Endowment interest allocable to each eligible institution and for distributing the interest by authorizing it release from the Division of Payment Management at the U.S. Department of Health and Human Services. The Oversight Section is also responsible for receiving and processing the annual Financial Status Reports and Primary Contact Person forms from the tribal colleges participating in the interest allocation. Finally, the Oversight Section provides guidance regarding the allowable use of the funds. The Science and Education Resources Department of CSREES provides guidance regarding the program, collects the planning document and Annual Progress Report, and responds to Congressional and other inquiries regarding the use of the funds.

Oversight Section Responsible for: Payments made through the DHHS Payment Management System For all 1994’s except Haskell Indian Nations University (paid through IPAC) Letters of Authorization Generated for all awards and amounts not “on hold” Identifies the subaccount used for DHHS-PMS and the amount Amendment number assigned in sequential order As you can see, all but one tribal college is paid through the U.S. Department of Health & Human Service’s Payment Management System. The Haskell Indian Nations University is paid through the Interagency Payment and Collection System. As with the CSREES formula grants administered by the Oversight Section, we will issue letters of authorization for all endowment interest distributions.

Oversight Section Responsible for: Oversight of Formula Grantee Financial Reporting PSC-272, Federal Cash Transactions Report, via DHHS-PMS (Except HINU) Due approximately 45 days after close of quarter Draw down requests will be denied if PSC-272 is not submitted SF-269, Financial Status Report, via the Oversight Section (OEP/CSREES/USDA) Due December 31 each year for Endowment Interest All tribal institutions receiving endowment interest are required to submit two financial reports. The SF-272, Federal Cash Transactions Report, is due approximately 45 days after the close of each calendar quarter. The SF-272 is essentially a cash flow report, reconciling the institution’s beginning and ending endowment interest on hand. This report is required of every institution drawing its funds through the U.S. Department of Health & Human

DHHS-PMS Points of Contact Problems with DHHS-PMS passwords or access Issues with PSC-272, Federal Cash Transactions reports Vivian Hughes 301-443-9181 Fran Odgers 301-443-2090 It is important to note that while CSREES utilizes the DHHS-PMS for recipient drawdowns, we do not administer the system and generally can not respond to questions or concerns regarding it. Therefore, we suggest you call Vivian Hughes or Fran Odgers at the number listed above.

Oversight Section Points of Contact Questions regarding policy issues, please contact: Barry Sims 202-205-0453 formulagrantquestions@csrees.usda.gov All other questions regarding Letters of Authorization, availability of funds, and SF-269, Financial Status Reports, please contact: Arnita Cross Jillian Worthen 202-401-8982 202-401-4248 across@csrees.usda.gov jworthen@csrees.usda.gov Within our group, you can contact me regarding policy issues. If you have questions regarding Letters of Authorization, availability of funds, and SF-269, Financial Status Reports, please call either Arnita Cross or Jillian Worthen.

Section 533(c) of the Equity in Educational Land-Grant Status Act of 1994 Establishes certain tribal colleges as 1994 Land-Grant Institutions. Requires the Secretary of Treasury to establish, fund, and distribute interest from an endowment fund. Requires funds to be distributed as follows: 4% Federal Administration Remainder 40% Equally 60% Based on Student Count Section 533(c) of the Equity in Educational Land-Grant Status Act of 1994, which is authorized under the First Morrill Act, establishes 1994 Land-Grant Institutions. It also provides that, in lieu of the scrip given to States in 1862 to establish land-grant colleges for the benefit of agriculture and the mechanical arts, the Secretary of Treasury will establish and fund an endowment fund, a portion of the interest from which will be used to endow and maintain institutions which teach agriculture and the mechanical arts. The student count used for purposes of distributing 60 percent of the interest available is determined using the definition at section 2(a) of the Tribally Controlled College or University Assistance Act of 1978.

General Policies Secretary of the Treasury has ultimate policy authority. Institution must exist legally. Funds may be deposited in interest-bearing accounts without recourse. Though CSREES administers the allocation and distribution of the endowment interest, as well as the programmatic reporting, the Secretary of the Treasury has the ultimate authority regarding the allowable uses of the funds. As you can see, in order to qualify for the endowment interest, the institution must legally exist. Unlike grant funds, endowment interest may be deposited into an interest-bearing account until it is expended, and the institution need not refund the interest earned on the account to the Federal Government. In order to qualify for the endowment interest, the institution must be listed in section 532 of the Equity in Educational Land-Grant Status Act of 1994 and must legally exist. . If a doubt exists regarding an institution’s legal existence, CSREES will hold the institution’s distribution until that doubt has been resolved. The president of each 1994 Institution bears the burden of proving the institution’s legal existence to CSREES if such doubt exists. The 1994 Institutions may deposit the interest distributed to them from the 1994 Institutions Endowment Fund into interest-bearing bank accounts without having to return the yield thereof to the United States Government. There is no time limit on spending the endowment funds. The funds must be used for the endowment and maintenance of institutions for the benefit of agriculture and the mechanical arts. To the extent permitted by law, CSREES delegates the authority to expend endowment interest to the President of each 1994 Institution. To the same extent, CSREES will hold the President of each 1994 Institution responsible for complying with the provisions of this policy statement.

General Policies The interest from the endowment fund should benefit the 1994 Land-Grant Institutions by supporting teaching programs in the food and agricultural sciences in the targeted areas of: Curricula design and instructional materials development; Faculty development and preparation for teaching; Instruction delivery systems; Student experiential learning; Equipment and instrumentation for teaching; and Student recruitment and retention. Funds may be drawn until they are fully expended (no time limit). Authority to spend is delegated to the President of the Institution. As you can see, there are six targeted uses for the endowment interest. There is no time limit on using the interest, and the President of the 1994 Institution has the authority to spend the funds.

Planning Document Two pages long, at most. Submit to Multicultural Alliances Section of SERD. Address these issues for the coming fiscal year: A description of how the funds will be used; A justification of how the proposed expenditure supports the institution’s land-grant mission; A time line for work completion; A budget, by project activity, which accounts for both the announced amount of the next Federal fiscal year’s distribution and any carryover funds at September 30 for the institution; and A list of key personnel involved in performing the work. One of the two programmatic documents which institutions need to submit is the annual Planning Document. It should be one to two pages long and should address the issues listed on this slide.

Planning Document (Continued) May use percentages in the budget. Construction projects must be pre-approved. Must submit on CSREES-approved form. In lieu of dollar amounts, institutions may report their budgets in percentages. Further, the institution should list any funds that being saved for future use as a project activity. Finally, any institution proposing to use the funds for construction must have the project approved in writing in advance of starting the construction project. The SERD unit can provide you with guidance regarding pre-approval of construction activities. When instructed to do, each 1994 Institution shall submit the planning document on a form provided by CSREES.

Technical/Progress Report Submitted annually. Submit to the Multicultural Alliances Section of SERD. Address these issues for the previous fiscal year: The institution’s name; The name of the person submitting the report; A paragraph identifying the institution’s accomplishments during the Federal fiscal year; A list of known objectives still to be met; and Photographs, if available, to help tell the story of the institution’s accomplishments. The annual Technical/Progress Report is also submitted to the Multicultural Alliances section of the SERD unit. It should address the issues listed on this slide for the previous fiscal year. This report should be submitted to the Multicultural Alliances section of SERD, as well.

Primary Contact Person Form Submit to Oversight Section. Contains name, title, address, phone number, and fax number of the President and alternative contact person. Submit a revised form each time an institution’s contact person changes. The Primary Contact Person form needs to be submitted to the Oversight Section. Please list the name, title, address, telephone and fax numbers, and e-mail address of each 1994 Institution’s president and an alternative contact person on each form you submit. Additionally, each institution should submit a revised Primary Contact Person form each time a change occurs in either position. It is very important that this form be submitted, as it provides our only means of contacting the proper people should a glitch occur regarding payment processing.

Kenneth Keys will now discuss completion of the SF-269 Kenneth Keys will now discuss completion of the SF-269. Thank you for attending my presentation. 16