1. GRANTS MANAGEMENT TEST FOR STATE AND LOCAL EDUCATIONAL AGENCIES Tiffany R. Winters, Esq. twinters@bruman.com Erin Auerbach, Esq. eauerbach@bruman.com Brustein & Manasevit, PLLC Fall Forum 2013

2. Welcome Back! Please put all of your books away. You have 10 minutes to complete your 30 question pop quiz! Grants Management Test 2 Brustein & Manasevit, PLLC

3. Question 1 Brustein & Manasevit, PLLC 3 A charter school is subject to: a. OMB Circular A-21 b. OMB Circular A-87 c. OMB Circular A-122 d. I have no idea Charter School Program Guidance 2011 (applied A-122) but an OIG Audit in MI 2002 (applied A-87)

4. Question 2 Brustein & Manasevit, PLLC 4 Carryover funds are subject to the laws that existed when the funds were initially granted to the State/school district. a. True b. False 34 C.F.R. § 76.710 BM Handbook pg. 92

5. Question 3 Brustein & Manasevit, PLLC 5 Under a reimbursement system, funds can be drawn down: a. Once the obligation is made b. Once payment is made to the vendor c. When the budget is approved d. Not until after the check has been cashed CMIA § 205.12(b)(5)

6. Question 4 Brustein & Manasevit, PLLC 6 A teacher’s salary obligates to the grant when he/she signs their employment contract. a. True b. False 34 C.F.R. §§ 75.707 and 76.707 BM Handbook pg. 63, 91

7. Question 5 Brustein & Manasevit, PLLC 7 LEAs must implement a financial management system that: a. Can track expenditures down to the school-level b. Is able to identify mandatory set-asides and add them, as necessary, to next year’s allocation c. Tracks unobligated balances d. All of the above 34 C.F.R. § 80.20 BM Handbook pg. 112

8. Question 6 Brustein & Manasevit, PLLC 8 What types of source documentation are acceptable? a. Hard copies of formal documents b. Only formal documents submitted to ED c. Both hard copies and electronic copies are required d. Electronic or hard copies of final documents 34 C.F.R. §§ 76.730, 80.20(b)(6) and 80.42 BM Handbook pg. 93, 113, 130

9. Question 7 Brustein & Manasevit, PLLC 9 An expense obligated on August 1, 2013 may be paid for with funds from: a. The grant award that was issued on July 1, 2013 b. The grant award that was issued on July 1, 2011 assuming that the Tydings Amendment applies c. Either a or b. d. Neither. 34 C.F.R. §§ 75.703, 76.709 and 80.23 BM Handbook pg. 63, 91, 114

10. Question 8 Brustein & Manasevit, PLLC 10 Grantees and subgrantees must remit to USED any interest earned on cash advances over: a. $100 b. $500 c. No earned interest must be remitted d. All earned interest must be remitted to USED 34 C.F.R. § 80.21(i) BM Handbook pg. 114

11. Question 9 Brustein & Manasevit, PLLC 11 In a State-administered program, is an SEA permitted to shorten the 27-month obligation period? a. Yes, but only so that the dates align with the State’s fiscal year b. Yes, but only so that the grant can be closed out by September 30 th c. No, unless the State has a good reason d. Never 34 C.F.R. §§ 76.709 and 80.23(b) BM Handbook pg. 91, 114

12. Question 10 Brustein & Manasevit, PLLC 12 The default rule is that program income may be added to the total amount of the grant. a. True b. False 34 C.F.R. § 80.25(g) BM Handbook pg. 116

13. Question 11 Brustein & Manasevit, PLLC 13 A State must get prior approval from USED when employing a project director who is different than the director named in the grant application. a. True b. False 34 C.F.R. § 80.30(d)(3) BM Handbook pg. 118

14. Question 12 Brustein & Manasevit, PLLC 14 Property records must include the following information: a. Condition of the item b. Vendor where item was purchased c. Color of the item d. Whether the item has helped increased performance e. All of the above must be included 34 C.F.R. § 80.32(d)(1) BM Handbook pg. 120

15. Question 13 Brustein & Manasevit, PLLC 15 An SEA/LEA can contract with a debarred or suspended contractor if the contract is below $25,000. a. True b. False 34 C.F.R. § 80.35 BM Handbook pg. 121

16. Question 14 Brustein & Manasevit, PLLC 16 A conflict of interest arises when any member of an employee’s family works for a vendor applying for a contract. a. True b. False c. It depends 34 C.F.R. § 80.36(b)(3) BM Handbook pg. 121

17. Question 15 Brustein & Manasevit, PLLC 17 In a State-administered program, pre-award costs are reimbursable once a grant has final approval. a. True b. True, but only with prior approval c. False, pre-award costs are reimbursable once the application is deemed “substantially approvable” d. False OMB Circular A-87 Pre-award Costs and 34 C.F.R. §§ 76.708 BM Handbook pg. 241, 91

18. Question 16 Brustein & Manasevit, PLLC 18 If there is a tie between two vendors responding to a RFP, preference is given to the vendor located in the district, which is a reasonable way to select the winner. a. True b. False 34 C.F.R. § 80.36(c) BM Handbook pg. 122

19. Question 17 Brustein & Manasevit, PLLC 19 If you name a vendor in your application and the application is granted, then the agency can use sole sourcing and simply contract with that vendor. a. True b. False c. It depends 34 C.F.R. § 80.36(d)(4) BM Handbook pg. 124

20. Question 18 Brustein & Manasevit, PLLC 20 Grantees and subgrantees should retain their records for: a. Until the program director retires b. 3 years from the date of the final expenditure report c. 5 years from the date of obligation d. Indefinitely 34 C.F.R. § 81.31(c) BM Handbook pg. 140

21. Question 19 Brustein & Manasevit, PLLC 21 When determining the acquisition cost of an item, which of the following could be excluded from the calculation. a. Property (i.e., laptop, printer) b. Accessories (i.e., speakers) c. Attachments (i.e., cords, cables) d. Installation (i.e., set-up costs) 34 C.F.R. § 80.3 Acquisition Cost BM Handbook pg. 107

22. Question 20 Brustein & Manasevit, PLLC 22 Federal equipment can stay at a private school as long as its needed even if the school is no longer eligible under the Federal program. a. True b. False 34 C.F.R. § 80.32(c)(1) BM Handbook pg. 119

23. Question 21 Brustein & Manasevit, PLLC 23 GAAP stands for: a. The Generally Accepted Accounting Principles b. The General Acquisition and Accounting Procedures c. A really wide space d. None of the above OMB Circular A-87 BM Handbook pg. 227

24. Question 22 Brustein & Manasevit, PLLC 24 An LEA uses a computer lab during the school day for the Perkins program and after school for its 21 st CCLC program. The LEA wants to pay for the cost of new computers for the lab entirely with Perkins funds since that program uses it more than 50% of the time. This is unallowable because the cost is not: a. Necessary b. Reasonable c. Allocable d. Adequately documented OMB Circular A-87 BM Handbook pg. 227

25. Question 23 Brustein & Manasevit, PLLC 25 Federal funds can be used to pay for a federally funded employee’s sick leave. a. True, but only if it is specified in the grant b. True, but only if charged consistently with State funded employees’ sick leave c. Never d. Wait, people get sick? OMB Circular A-87 BM Handbook pg. 227, 231

26. Question 24 Brustein & Manasevit, PLLC 26 If purchased with federal funds, the following items must be credited back to the federal grant: a. Rebates and discounts b. Overpayments c. End of the year “cash back” refunds d. Travel rewards (miles, points, etc.) e. All of the above. f. It depends OMB Circular A-87 BM Handbook pg. 228

27. Question 25 Brustein & Manasevit, PLLC 27 Generally, overhead costs such as utilities, space, and electricity may be allocated to grants as direct costs as long as there is some minimal benefit to the federal program. a. True b. False OMB Circular A-87 BM Handbook pg. 228

28. Question 26 Brustein & Manasevit, PLLC 28 An administrative set-aside or cap must include any applicable indirect cost recovery. a. True b. False OMB Circular A-87 Composition of Cost BM Handbook pg. 228

29. Question 27 Brustein & Manasevit, PLLC 29 If an employee is paid less than 5% with Federal funds, the employee does not have to fill out a time and effort certification. a. True b. False OMB Circular A-87 BM Handbook pg. 231

30. Question 28 Brustein & Manasevit, PLLC 30 Assuming all costs are reasonable, which of the following costs incurred for a conference is unallowable: a. Rental of facilities b. Speaker fees c. Transportation d. Photographer OMB Circular A-87 BM Handbook pg. 227, 241

31. Question 29 Brustein & Manasevit, PLLC 31 A subgrantee is different from a subcontractor because: a. They are the same, both must follow EDGAR and OMB Circulars b. They are the same, neither have to follow EDGAR or the Circulars unless its in the agreement. c. Only the subgrantee has to meet the program requirements. d. Only the subcontractor has to meet the program requirements. OMB Circular A-133 § __.210(b)(5) BM Handbook pg. 294

32. Question 30 Brustein & Manasevit, PLLC 32 Semi-annual certifications and PARs must be used to reconcile an agency’s budget: a. Monthly, if the budget is off by more than 10%, otherwise by the end of the year. b. Quarterly, if the budget is off by more than 10%, otherwise by the end of the year. c. Before the final expenditure report is filed. d. When we remember. OMB Circular A-87 BM Handbook pg. 234

33. Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. The End! What Grade Did You Get?? 33 Brustein & Manasevit, PLLC