1. Raúl Soto Ph.D., Associate Director CTE 1 CTE Funding & OMNI Circular

2. Agenda 1.Review Perkins Funding Requirements 2.Overview of new Omni Circular Disclaimer: Information adapted from Michael Brustein’s January 21, 2014 presentation in Columbus Ohio

3. What are the allowable uses of Perkins funds? 1.Perkins Act 2.EDGAR 3.OMB Omni Circular Basic Roadmap

4. Perkins Act 1.Serve only CTE students 2.Meet the Local Plan requirements on Section 134 (Budgets) 3.Satisfy the Section 135 requirements on uses of funds 4.Accountability – Section 113 5.Local Improvement Plans – Section 123

5. Perkins Act Section 135 a)Improve b)Mandatory uses c)Permissive uses d)Administrative costs

6. Five-Step roadmap in developing your Perkins Budget 1)Is the item allowable under a)Perkins b)State Plan c)State / Local Policies d)Omni Circular

7. 2)Is the item necessary? 3)Is the cost reasonable? 4)Is the cost allocable to Perkins? 5)Is the cost adequately documented?

8. OMB Revised Administrative, Cost, and Audit Rules Governing All Federal Grants The Super Circular – “Omni Circular” The One-Stop Shop for Federal Assistance

9. Date of Applicability of Revised Rules All Drawdowns, after December 26, 2014 at State Level July 1, 2015 at Local Level

10. What is covered? A-102 – Administrative Rules State / Local – Part 80 – EDGAR A-110 – Administrative Rules Postsecondary – Part 74 – EDGAR A-87 – Cost Rules – State / Local A-21 – Cost Rules – Rules – Postsecondary A-122 – Cost Rules – Nonprofit A-133 – Audit Rules (>$750,000)

11. Education Department General Administrative Rules (EDGAR) Part 76 – State Administrative Rules Part 80 – General Administrative Rules

12. EDGAR Part 80 1.Standards for Financial Management* 2.Payments* 3.Allowable Costs* 4.Period of Availability of Funds* 5.Program Income* 6.Non Federal Audit* * Omni Circular Changes

13. EDGAR Part 80 (cont.) 7.Changes* 8.Equipment* 9.Supplies* 10.Procurement* 11.Monitoring* 12.Retention of Records *Omni Circular Changes

14. Who is covered? All “nonfederal entities” expending federal awards

15. Reasons for the Change? 1.Simplicity 2.Consistency 3.Obama Administration Executive Order on Regulatory Review –Increase Efficiency –Strengthen Oversight

16. Most Significant Change Shift from focus on Compliance to focus on PERFORMANCE!!!

17. Flexibility The “Omni Circular” adds significant flexibility to way grantee / subgrantee can adopt their own processes Example: Time and Effort

18. Personnel Activity Report 1.After the fact 2.At least monthly 3.100% of effort 4.Certified by employee

19. New OMNI: (200.430) Charges to federal awards must be based on “records” 1.Supported by a system of internal controls 2.Incorporated into official records of grantee 3.“Reasonably” reflect total activity for which employee is compensated

20. 200.430 New requirements are less prescriptive Grantees encouraged to adopt “substitute systems”

21. 200.430 Acceptable now to allocate sampled employee’s supervisors, clerical and support staffs, based on results of sampled employees *Note: Guidance forthcoming

22. Employees assigned to “administrative” functions Salaries of administrative and clerical staff should be treated as “indirect” unless all of following are met: 1.Such services are integral to the activity 2.Individuals can be specifically identified with the activity 3.Such costs are explicitly included in the budget 4.Costs not also recovered as indirect

23. New Emphasis on Risk 200.205 ODE must have in place a framework for evaluating risks before applicant receives funding

24. Risk Factors: 1.Financial Stability 2.Quality of Management System 3.History of Performance 4.Audit Reports 5.Applicant’s Ability to Effectively Implement Program

25. Fiscal Accountability 200.415 Major emphasis on “strengthening accountability” by improving policies that protect against waste, fraud and abuse (200.415)

26. Conflict of Interest 200.112 All non federal entities must establish conflict of interest policies, and disclose in writing any potential conflict to federal awarding agency

27. Mandatory Disclosures 200.113 Non federal entity must disclose in writing in timely manner to federal agency or pass- through all violations of federal criminal law involving fraud, bribery or gratuity violations potentially affecting federal award

28. Significant Changes to Core Financial Management Standards 200.302 Written Procedures on, Cash Management Allowability of Costs

29. Cash Management Subgrantee must be able to account for the receipt, obligation and expenditure Interest amounts up to $500 may be retained for administrative expense

30. Meals / Conferences / Travel 200.432 Allowable conference costs include rental of facilities, costs of meals and refreshments, transportation, unless restricted by the federal award” Conference hosts must exercise discretion in ensuring costs are appropriate, necessary and managed in manner than minimizes costs to federal award

31. 200.474 - Travel Travel costs may be charged on actual, per diem, or mileage basis Travel charges must be consistent with entity’s written travel reimbursement policies

32. 200.474 - Travel Grantee must retain documentation that participation of individual in conference is necessary for the project

33. 200.474 - Travel Travel costs must be reasonable and consistent with written travel policy /or follow General Services Administration 48, Code of Federal Regulations 31.205-46(a)

34. Computing Devices 200.20 Definition: Machines used to acquire, store, analyze, process, and publish data electronically

35. Supplies 200.314 Now includes “computing devices” Residual inventory of unused supplies exceeding $5,000 in total aggregate value – must compensate federal government

36. Changes to Equipment Rules 200.313 Subgrantee cannot “encumber” the property without approval of pass-through Can shared use, if such use will not “interfere” –1 st preference – projects supported by federal awarding agency –2 nd preference – project funded by other federal agencies –3 rd preference – use for non federally funded programs

37. User Fees “User fees” on equipment “should be considered if appropriate” But “user fees” should not be less than private companies charge for equivalent services

38. Trade-In on Equipment Allowed When grantee acquiring replacement equipment, the equipment to be replaced may be used as a “trade-in” without recourse to federal agency

39. Disposition of Equipment Upon disposition federal agency may permit grantee to retain $500 or 10% of proceeds, whichever is less, for handling expenses

40. Internal Controls on Equipment, Supplies, Computing Devices 200.302(b)(4) Regardless of cost, grantee must maintain effective control and “safeguard all assets and assure that they are used solely for authorized purposes.”

41. Micro-Purchases 200.320 Acquisitions of supplies or services which do not exceed $3,000 may be solicited without competitive quotations if the non federal entity considers the price to be reasonable

42. Insurance Coverage 200.310 At a minimum, grantee must provide equivalent insurance coverage on equipment purchased with federal funds as provided to equipment purchased with nonfederal funds

43. Audit Resolution 200.501 Federal Compliance requirements do not pass through to contractors Auditee is responsible for ensuring compliance for procurement transactions

44. Supplanting Perkins funds must supplement, not supplant, state and local funds for CTE

45. Non-Supplant Tests 1.Perkins funds used for same activity that was paid for in prior year with state / local funds? 2.Perkins funds paid for activity mandated by state / local law?

46. But what if activity would be discontinued in absence of Perkins federal funds? You need to maintain a)Documentation on reduction b)Documentation that activity would have been eliminated without Perkins funds

48. Career-Technical Education Administrative Field Services 614-446-4835 education.ohio.gov