General Administrative Requirements for Federal Grants

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Section 200-1 June 2005 200G ENERAL A DMINISTRATIVE R EQUIREMENTS FOR F EDERAL G RANTS G ENERAL R EQUIREMENTS This section discusses the general legal requirements for sub-grantees receiving federal assistance. These general requirements are federal policies established by legislative or executive authority, which apply to all federal programs. The requirements are to be reviewed as part of an audit of each state and local government or other entity which receives federal financial assistance.

Sub-grant- ees should adopt policies implementing each of these requirements. POLITICAL ACTIVITY Federal funds cannot be used for partisan political purposes of any kind by any person or organiza- tion involved in the administration of federally assisted programs. [Hatch Act (5 U.S.C.

1501-1508) and Intergovernmental Personnel Act of 1970, as amended by Title VI of Civil Services Reform Act (Public Law 95-454 Section 4728)] DAVIS-BACON ACT Laborers and mechanics employed by contractors or subcontractors to work on construction projects financed using federal assistance must be paid wages not less than those established for the local project area by the Secretary of Labor. [40 Stat 1494, Mar.3, 1921, Chap. 411, 40 U.S.C.

276A-276A-5] CIVIL RIGHTS No person shall be discriminated against on the grounds of race, color, national origin, age, ... more. less.

or handicap in any program or activity funded by federal funds. Discrimination on the basis of sex or religion is also prohibited in some federal programs. [Age-42 U.S.C. 6101 et seq.; Race-42 U.S.C. 2000d; Handicap-29 U.S.C. 794] CASH MANAGEMENT The timing between the transfer of funds from the U.S. Treasury and the disbursement of funds by the receiving sub-grantee is to be minimized with proper cash management procedures. Sub-grant- ees that in turn sub-grant/transfer federal funds to other sub-grantees for final expenditure shall conform to the same standards of timing and amount. Generally, this standard has been interpreted to mean a sub-grantee should have the minimum amount of federal cash on hand needed for expen- ditures. Excess cash on hand must be repaid to the grantor. Investment of Federal Funds 4Sub-grantees should not have excessive federal cash on hand for investment. If federal funds are invested, interest earnings in excess of $100 per year must be refunded to the federal government. June 2005 Section 200-2 RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION [Note: This section is included for reference only. Real property acquisitions using grant funds received from the OPI would be extremely unlikely.] Occasionally, federal aid programs may require the acquisition of property by a sub-grantee and the subsequent displacement of households and businesses. Property acquired in the administration of federal aid must follow systematic procedures. For example, property must be appraised in the presence of the owner, appraisals must be reviewed, price set and settlements negotiated. Simi- larly, when relocations are involved, the sub-grantee must, for example, provide assistance in locat- ing replacement housing, assure that it meets acceptable standards and maintain records on all acquisitions and relocations. [Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) P. L. 91-646, as amended by the Uniform Relocation Act Amendments of 1987, Title IV of the Surface Transportation and Uniform Relocation Act of 1987 (1987 Amendments) P. L. 100-17, 101 Stat, 246-256] FEDERAL FINANCIAL REPORTS Most federal programs require the periodic preparation of financial reports. During an audit, the auditor reviews supporting documentation and the timeliness and accuracy of the reports submit- ted. [34 CFR, Part 80, Section 41 cUniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments d and Treasury Circular 1075, cWithdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs d] A PPLICATION P ROCESS APPLICATIONS FOR GRANTS A grant application is a legal agreement between the applicant and the Office of Public Instruction (OPI). An applicant may be a school district, a special education cooperative, a nonprofit entity, or an institution of higher education. Each grant is specific about the type of entity that is eligible to apply. The OPI requires each of its sub-grant recipients to sign a cCommon Assurances d form (see Appen- dix B), which is the recipient 9s agreement to follow important state and federal laws and regula- tions related to administration of state and federal grant programs. On the Common Assurances form the recipient agrees to the designation of an Authorized Representative (AR). Assurances not common to all programs may be included in individual grant applications. APPLICATION PROCESS 4NONCOMPETITIVE GRANTS 1.Application forms are sent from the OPI to the AR. 2.The AR leads a cooperative effort of administrators, business managers, parents, teachers and other staff in planning the activities of the project and filing the application with the OPI. Section 200-3 June 2005 3.APPROVAL: The OPI approves the application; or PRELIMINARY DISAPPROVAL: The OPI disapproves the application. If the application is not approved, the OPI will send written notification to the applicant of the preliminary disap- proval and the reasons for preliminary disapproval, and will provide the applicant an opportu- nity to correct deficiencies that caused the disapproval. FINAL DISAPPROVAL: A preliminary disapproval notice will become final if the applicant does not correct deficiencies in the application or does not request a hearing within the time allowed (see COMPLAINTS AND HEARINGS PROCESS below). 4.The OPI sends written notice of approval to the AR. 5.The AR will share all written notices and program instructional materials with other adminis- trators, business manager/clerk and other management official(s), local program/project di- rectors, teachers and other instructional or support staff, as appropriate. APPLICATION PROCESS 4 COMPETITIVE GRANTS 1.A notice that application forms are available is sent from the OPI to ARs. Interested ARs request application forms from the OPI. 2.The AR leads a cooperative effort of administrators, business managers, parents, teachers and other staff in planning the activities of the project and filing the application with the OPI. 3.APPROVAL: The OPI approves the application; or DISAPPROVAL: The OPI disapproves the application and sends written notice of disapproval and the reason for disapproval to the AR. 4.The OPI sends written notice of approval to the AR. 5.AR will share all written notices and program instructional materials with the other adminis- trators, business manager/clerk and other management official(s), local program/project di- rectors, teachers and other instructional or support staff, as appropriate. Note: OPI may require additional information or action from an applicant who has been des- ignated as chigh risk d (see Section 600-5). C OMPLAINTS AND H EARINGS P ROCESSES At times, a subrecipient may disagree with the OPI actions or decisions involving federal and state grant programs. In those cases, the sub-recipient may ask for reconsideration of the action or decision by using processes outlined in this section. The following are examples of situations in which a sub-recipient may enter a complaint and/or request a hearing: June 2005 Section 200-4 1.The OPI denied a noncompetitive grant application submitted by the entity or did not make an award for the application; 2.The OPI requires certain corrective action on an audit finding or as a result of site visit or other monitoring effort, and the entity does not agree that corrective action is necessary; 3.The entity feels the OPI has otherwise violated a specific federal statute or program regula- tion; 4.The OPI terminates, in whole, or part, an approved project. In the event the OPI proposes to deny, in whole or part, any sub-grantee application for noncom- petitive federal monies, the district shall be afforded reasonable notice of: 1.The intent to deny the application and the reasons for denial; and 2.The district 9s right to request a hearing before the OPI prior to final denial of the application. The application by the sub-grantee may be denied, in whole or part, if the sub-grantee fails to request a hearing. COMPLAINT PROCESS 4Used in cases where a sub-recipient feels the OPI or another or- ganization has violated a specific law or regulation. A.FILING A COMPLAINT 1.Any individual or organization may file a written, signed complaint with the OPI. The complaint must be addressed to the OPI program director. 2.The complaint must include a statement that the OPI or sub-grantee has violated a re- quirement of a federal statute or regulation or a state statute or administrative rule that applies to the state or federal grant program. 3.The statement must identify: a.The specific section of the law, regulation or administrative rule that has been vio- lated; and b.The facts upon which the statement is based. B.OPI RECEIPT AND REVIEW OF COMPLAINT 1.The OPI will review and act on any complaint within 60 days of the date the complaint was received. 2.The OPI may take one or more of these actions to review and resolve the complaint: a.Resolve the complaint based on facts presented; b.Request additional data to be used in resolving the complaint; or c.Conduct an on-site review to collect data to resolve the complaint. Section 200-5 June 2005 3.If a LEA 9s decision is being appealed, the OPI will resolve the appeal or provide a deci- sion within the 60 days. 4.If resolution is not possible within 60 days due to exceptional circumstances, the OPI may provide an extension on the time limit for resolution. 5.The OPI will issue the complainant a written notice of resolution. 6.If the OPI does not rescind its action, the applicant may file an appeal to the U.S. Secre- tary of Education within 20 days of the OPI 9s ruling on the hearing. If supported by substantial evidence, findings of fact of the OPI will be final. The OPI will provide the complainant with the address of the federal contact person at the time the OPI sends the written notice of resolution. 7.The Secretary may also issue interim orders to the OPI, if necessary, pending appeal or review. 8.If the Secretary determines that the action was contrary to laws or regulations, the Secre- tary may issue an order to the OPI to take appropriate action. Failure to comply may cause the loss of all federal assistance to the state. HEARINGS PROCESS 4Used in cases when the sub-recipient disagrees with the OPI ac- tions, such as the resolution of an audit finding, additional monitoring required of the entity as the result of an on-site visit or other monitoring effort, withholding of a portion or all of an award because of failure to maintain effort, failure to provide a match, disapproval of a non- competitive grant application, etc. The hearings process will be as follows: (34 CFR 76.783, 76.401) 1.The applicant must submit a written request for a hearing to the appropriate OPI program director. 2.Special requirements related to audit resolution problems: a.Address the request to the OPI School Accounting Supervisor. b.When controversy over the acceptability of the entity 9s response to an audit finding is the cause of the request for hearing, the request must be received within 30 days of the date of the Department of Administration 9s notice stating the audit response is not acceptable. 3.Within 30 days of receiving the applicant 9s request, the OPI will hold a hearing on the record and review its action. 4.Within 10 days after the hearing, the OPI will issue a written ruling, including findings of fact and reasons for the ruling. 5.If the OPI determines its action was contrary to law or regulations, the OPI will review its action and change its action to be in compliance with law or regulations. June 2005 Section 200-6 6.If the OPI does not rescind its action, the applicant may file an appeal to the U.S. Secre- tary of Education within 20 days of the OPI 9s ruling on the hearing. If supported by substantial evidence, findings of fact of the OPI will be final. The OPI will provide the entity with the address of the federal contact person at the time the OPI sends the written notice of resolution. 7.The Secretary may also issue interim orders to the OPI, if necessary, pending appeal or review. 8.If the Secretary determines that the action was contrary to laws or regulations, the Secre- tary may issue an order to the OPI to take appropriate action. Failure to comply may cause the loss of all federal assistance to the state. C OMMON A SSURANCES (CA) AND P ROGRAM -S PECIFIC A SSURANCES Sub-grantees receiving education funds must certify, by signature of the board chair or executive officer, that they will abide by legislated requirements as a condition for receipt of the funds (for example, that the funds will be used for the purposes for which they were intended). Each legal entity that participates in one or more of the programs listed, must complete and return this form to the OPI prior to the award of funds for any U. S. Department of Education administered program: ESEA Reauthorized by the No Child Left Behind Act of 2001, P. L. No. 107-110,115 Stat. 1425 Individuals with Disabilities Education Act (IDEA), Part B, 20 USC §1400 Carl D. Perkins Vocational and Technical Education Act, 20 USC §2301 Workforce Investment Act, 29 USC §2801 Adult Basic Literacy Education, 42 USC §4959 General Education Provisions Act (GEPA), 20 USC §1221 Pro-Children 9s Act of 2001, P. L. No. 107-110, §9532, 115 Stat. 1984 Common Assurances and Program-Specific Assurances for Federal Funding (see Appendix B): Statements of required assurances that are common across many programs, as well as assurances specific to individual programs. All education funds distributed by the OPI are subject to specific state accounting and reporting requirements. In addition, several federal education programs have federal requirements that are the same from program to program. Rather than repeat the same assurance requests for each pro- gram, the OPI has gathered together those assurances that are the same for several programs and placed them in one common assurance document. That document also contains program-specific assurances that are listed under the title of the program. Process for Common Assurances: Each year, the authorized representative for a sub-grantee that may receive education funds from Section 200-7 June 2005 the OPI, is asked to certify to the OPI that the sub-grantee will comply with the requirements listed in the Common Assurance form prior to receipt of program funds. The list of common assurances and a copy of the signed certification are to be kept on file by each entity. If the assurances are unchanged from one year to the next, the certification will be that no conditions have changed since the original certification of common assurances. When requirements for assurances change, a new Common Assurance listing will be distributed for certification by sub-grantees receiving education funding. The Common Assurances for federal programs, and specific program assurances for those pro- grams in which a legal entity participates, are accepted as the basic conditions for local participa- tion and assistance in the operation of the projects/programs in which it participates. The recipient agrees to the designation of an Authorized Representative to make representations and commit- ments on behalf of the applicant under the provisions of each program. The applicant, by signature of its Board Chair or Executive Officer, assures the OPI that the applicant will adhere to the specific program assurances if participating in any of the programs listed beginning on page 4 of the assur- ances. Each federal grant award administered by the OPI requires a person to act as the AR. The AR is a liaison between the grantor, the OPI, and the sub-grantee (see Section 700 in this manual). M AINTENANCE OF E FFORT (MOE) DEFINITION AND PURPOSE cMaintenance of Effort d (or cMOE d or cMaintenance of Fiscal Effort d) is required by many grant programs. The purpose of a maintenance of effort requirement is to ensure the recipient of federal funds does not spend those funds in place of state and local dollars. The MOE ensures a recipient spends state and local dollars for the same activities that would be provided if federal dollars were not available. Thus, federal programs supplement the normal activities of the entity and do not replace, or supplant, their normal activities. Sub-recipients who do not meet MOE requirements may lose eligibility to a portion or all of the grant funds under the program which requires it. TYPES OF MAINTENANCE OF EFFORT There are four types of MOE monitored by OPI. They are: 1.Federal ESEA Title MOE is used for the following grants: Title I, Part A, Improving Basic Programs Title I, Part B, Subpart 1, Reading First Title I, Part B, Subpart 3, Even Start Title I, Part C, Migrant Education Title I, Part D, Neglected, Delinquent and At-Risk Youth Title I, Part F, Comprehensive School Reform Title II, Part A, Teacher and Principal Training and Recruiting Fund Title II, Part D, Educational Technology Title III, Part A, English Language Acquisition and Language Enhancement June 2005 Section 200-8 Title IV, Part A, Safe and Drug-Free Schools and Communities Title IV, Part B, 21st Century Community Learning Centers Title V, Part A, Innovative Programs Title VI, Part B, Subpart 2, Rural Low-Income Schools (RLI) The MOE information is provided to the U.S. Department of Education for Title VII, Indian Education and Title VIII, Impact Aid. 2.IDEA MOE 4used for IDEA Part B 3.Carl Perkins Vocational Education MOE 4Required on a statewide level, not at indi- vidual sub-recipient level. 4.Adult Basic and Literacy Education MOE 4Required on a statewide level, not at indi- vidual sub-recipient level. SPECIAL EDUCATION COOPERATIVES/CONSORTIUMS AND MOE When the prime applicant is a special education cooperative/consortium, MOE is based on the combined activity of the cooperative 9s or consortium 9s members. The eligibility for continued funding under a program requires MOE by the cooperative or consortium as a whole. Failure of the combined membership to maintain effort as a cooperative or consortium may result in a decrease or loss of funding for the cooperative or consortium. HOW THE OPI MONITORS MAINTENANCE OF EFFORT Each prime applicant of federal funds is responsible for ensuring the entity maintains effort. As a sub-grantor, the OPI is required to monitor and confirm that each of its sub-recipients maintained effort. The OPI confirms MOE for school districts and special education cooperatives using data reported on the district 9s or cooperative 9s annual Trustees 9 Financial Summary (TFS) submitted to the OPI each September, and by reviewing audit reports. The OPI also requests data from other entities that receive funds to determine their status of MOE. TIMELINE FOR MAINTENANCE OF EFFORT 2nd Mon. in Sept.The OPI receives annual Trustees 9 Financial Summary (TFS) reports from school districts and special education cooperatives. December 1The OPI calculates preliminary MOE and notifies recipients of their status. By December 20School districts and special education cooperatives must submit any changes/ corrections to data reported on their TFS reports to the OPI. Changes after this date will only be accepted through the hearings process. After December 20The MOE calculations are finalized. April - JuneThe OPI reports final MOE status to districts as part of the application pro- cess for the next year. Section 200-9 June 2005 SPECIFIC PROGRAM REQUIREMENTS FOR MAINTENANCE OF EFFORT (MOE) MOE for Federal ESEA Title Grants: (also see APPENDIX C) A recipient may receive its full allocation if either the combined fiscal effort per student or the aggregate of all expenditures of local funds used for providing a free public education for the preceding fiscal year was not less than 90 percent of the combined fiscal effort per student or the aggregate expenditures for the second preceding year. The MOE for these programs is calculated using data reported on the school district 9s Trustees 9 Financial Summary (TFS) (see explanation of calculation in Appendix C). Title VII, Indian Education and Title VIII, Impact Aid have reductions made at the federal level if MOE is not met. MOE for IDEA Part B: (also see APPENDIX D) A recipient may receive its allocation if the expenditures for special education and related services in the preceding year were at least equal to the expenditures for special education and related services in the second preceding year. An applicant may not reduce its level of expenditures of state or state and local funds below the level of those expenditures for the preceding fiscal year except for those conditions pro- vided for under 34 CFR 300.232 and 300.233. The MOE for members of a special education cooperative is determined for the cooperative as a whole. Expenditures of the member districts and the cooperative itself are combined to calculate MOE. The MOE for these programs is calculated using data reported on the school district 9s Trust- ees 9 Financial Summary (TFS) (see explanation of calculations and exceptions in Appendix D). MOE for Carl Perkins Vocational and Technology Education Act of 1998 The Act uses basically the same cmaintenance of effort d language as the 1990 Act to ensure that states continue to provide funding for vocational and technical education programs at least at the level of support of the previous year. The Secretary of Education may grant a waiver of up to 5 percent for exceptional or uncontrollable circumstances (such as a natural disaster or a dramatic financial decline) that affect the state 9s ability to continue funding at the prior year 9s levels. MOE for Adult Basic and Literacy Education The state is required to match, with nonfederal funds, 25 percent of the total amount expended for adult education and literacy activities. The statute retains the typical csupplement, not supplant d provision. However, the maintenance of effort provisions were revised to provide significantly more flexibility than previously existed. Now if the state fails to maintain effort from the prior year, the Secretary of Education is authorized to provide for pro rata reductions in federal funding rather than a total cutoff. For more information about MOE requirements, contact the OPI program director or accountant. June 2005 Section 200-10 M ATCHING R EQUIREMENTS Several of the federal grants administered by the OPI require the sub-grantee to cmatch d the grant funds using local dollars. When a match is required, the recipient must spend the required amount of state and local dollars in order to be eligible to spend the grant funds. If a sub-grantee does not meet the matching requirements of a particular grant, the OPI must disallow the grant expenditures and may require repayment of grant funds used without providing the necessary match. MONEY USED FOR MATCHING Grant regulations specify the type and amount of required match. Depending on the program, the match may include cash outlay and/or in-kind contributions. Generally, matching requirements state the recipient must spend state and/or local dollars to provide the match. cCash outlay d is the sub-grantee 9s cash spending. The cash may have come to the sub-grantee from individuals, public agencies, institutions, private organizations, etc. Although not common, other federal grants may be used as cash outlay to meet matching requirements when authorized by the program 9 s regulations. cIn-kind contributions d are the value of non-cash contributions made by the sub-grantee, individu- als, public agencies, institutions, private organizations, etc. They may include charges for real property and equipment and the value of goods and services directly benefiting and specifically identifiable to the grant program. Although not common, property purchased with other federal grants may be used as in-kind contributions to meet matching requirements when authorized by the program 9 s regulations. ACCOUNTING FOR THE MATCH A sub-grantee is responsible for demonstrating the appropriate matching funds were spent. To do that, a recipient must record expenditures of the grant AND the matching expenditures in enough detail to track the match. Usually, the clerk tracks matching funds by using the same expenditure program number to record the expenditure of matching funds as is used for expenditure of the grant funds themselves. For example, charges to the Title I Part B, Subpart 3, Even Start grant are recorded using expenditure program 424, so matching funds spent in the general fund would also be charged to expenditure program 424. See Section 3-0600 of the School Accounting Manual for expenditure program code identifiers. MATCHING REQUIREMENTS BY PROGRAM T itle I, Par t B, Subpar t 3, Even Star t Recipients must contribute a matching share as the federal share decreases each year of the program as follows: 1st year10% match required 2nd Year20% match required 3rd Year30% match required 4th Year40% match required 5th - 8th Years50% match required 9th - 12th Years65% match required Section 200-11 June 2005 Adult Basic and Literacy Education (ABLE) The higher of either the matching (25 percent) or the maintenance of effort requirement is the amount the state as a whole is required to meet during a particular fiscal year. This includes a combination of all nonfederal local and state funds. Learn and Serve Homeland Security In-kind match is required: 10 percent 1st year, 20 percent 2nd year, 30 percent 3rd year. Learn and Serve Montana The Learn and Serve Mini-grants have a 10 percent in-kind match. Gifted and T alented Gifted and talented grants require 100 percent or more in cash; in-kind match is not allowed by MCA 20-7-903(3). S UPPLEMENT N OT S UPPLANT An LEA may use program funds only to supplement and, to the extent practical, increase the level of funds that would, in the absence of the Federal funds, be made available from non-Federal sources for the education of participating students. In no case may an LEA use Federal program funds to supplant funds from non-Federal sources. The following are instances where it is pre- sumed that supplanting has occurred: a.The LEA used Federal funds to provide services that the LEA was required to make available under other Federal, State or local laws. b.The LEA used Federal funds to provide services that the LEA provided with non-Federal funds in the prior year. c.The LEA used Title I, Part A or MEP funds to provide services for participating children that the LEA provided with non-Federal funds for nonparticipating children. These presumptions are rebuttable if the LEA can demonstrate that it would not have provided the services in question with non-Federal funds had the Federal funds not been available. Programs to which this section applies are: Adult Basic Literacy Education Carl D. Perkins Basic Grants Gaining Early Awareness & Readiness for Undergraduate Programs (GEAR UP) IDEA, Part B IDEA, Preschool ESEA Title I, Part A, Improving Basic Programs ESEA Title I, Part B, Subpart 1, Reading First ESEA Title I, Part C, Migrant Education ESEA Title I, Part D, Neglected and Delinquent ESEA Title I, Part F, Comprehensive School Reform June 2005 Section 200-12 ESEA Title II, Part A, Teacher and Principal Training and Recruiting Fund ESEA Title II, Part D, Technology ESEA Title III, Part A, English Language Acquisition and Language Enhancement ESEA Title IV, Part A, Safe and Drug-Free Schools and Communities ESEA Title IV, Part B, 21st Century Community Learning Centers ESEA Title V, Part A, Innovative Programs ESEA Title V, Part D, Subpart 3, Partnerships in Character Education ESEA Title VI, Part B, Subpart 2, Rural and Low-Income Schools (RLI) ESEA Title VI, Part B, Subpart 1, Small Rural Schools (SRS) C ARRYOVER F UNDS BASIC CARRYOVER PROVISIONS cCarryover d funds are grant funds which, if not obligated by the end of the project period, remain available to the sub-grantee for one additional project period. Grant project periods for most of the grants administered by the OPI begin July 1, and end on either June 30 or September 30. For some grants, funds that remain unobligated at the end of the project period are considered for inclusion in the ensuing year 9s project as carryover. That is, the unobli- gated funds are in addition to the amount awarded for the following year. If cash obligated during the prior year 9s project period is not requested by the time that project 9s fiscal closeout report is due, it is also included in the calculation of ccarryover d for eligible projects. (See cFiscal Closeout and Final Program Reports d Section 400.) As a result that cash is no longer available to pay the obligations incurred during the prior year 9s project period. The prior year obligations are considered disallowed, and they must be paid from the sub-grantee 9s other, nonfederal resources. The following grants allow carryover: ESEA Title I, Part A, Improving Basic Programs ESEA Title I, Part B, Reading First ESEA Title I, Part B, Even Start ESEA Title I, Part D, Neglected, Delinquent and At-Risk Youth ESEA Title I, Part F, Comprehensive School Reform ESEA Title I, Part H, School Dropout Prevention ESEA Title II, Part A, Teacher and Principal Training and Recruiting ESEA Title II, Part D, Educational Technology ESEA Title III, Part A, English Language Acquisition ESEA Title IV, Part A, Safe and Drug Free Schools ESEA Title V, Part A, Innovative Programs ESEA Title V, Part D, Subpart 3, Character Education ESEA Title VI, Part B, Subpart 2, Rural Low-Income Schools IDEA B IDEA Preschool Costs allowable using carryover funds are subject to the same requirements as all other funding Section 200-13 June 2005 under that particular federal program. A recipient must spend the carryover funds in compliance with the same regulations and terms as other program funds in the current year 9s award. RESTRICTIONS FOR ESEA TITLES I, II, IV, V and VI These percentage limitations are applied at the end of the project period based on information submitted on the Fiscal Closeout Report: "The carryover amount for T itle I, Part A, Improving Basic Programs is limited to 15 percent of a district 9s total allocation for districts that receive an allocation of $50,000 or more. Districts that receive reallocated funds and are currently eligible for T itle I are not allowed any carryover (see Appendix F). "The carryover amount is limited to 25 percent of a district 9s total allocation for the current year (without carryover) for the following grants: ESEA Title II, Part A, Teacher and Principal Training and Recruiting ESEA Title II, Part D, Educational Technology ESEA Title IV, Part A, Safe and Drug Free Schools ESEA Title V, Part A, Innovative Programs ESEA Title VI, Part B, Subpart 2, Rural Low-Income Schools This percentage is set in statute for Title IV, Part A and is established by the OPI as ca prudent and justifiable reserve for operating effectively during the succeeding fiscal year d for Title II, Title V and Title VI. "A district may submit a written request for a waiver to one or more of the ESEA carryover limitations by June 1. In the case of Title I, a request may be granted only once every three years. Criteria for approval of such requests and detailed directions on submission are avail- able from the OPI program specialists for each program. RESTRICTIONS FOR IDEA PART B AND PRESCHOOL FUNDS The IDEA regulations do not limit the amount of carryover for Part B or Preschool entitlement funds. Therefore, any ccurrent-year d funds in an applicant 9s project which were not expended dur- ing the project year will be automatically provided to the applicant in the next school year as carryover funds. cAUTOMATIC d CARRYOVER The OPI automatically allows sub-grantees to carryover the funds which are subject to the allow- able carryover provisions. To do this, the OPI verifies final carryover amounts for all programs after receiving final fiscal closeout reports and refunds. The OPI determines final carryover amounts and then amends the sub-grantee 9s appropriate project budget by adding the final carryover amount (up to any percent- age limitation as explained above) into the Operating Expenses category of the budget. If an indi- rect cost rate was included on the proposed and first-approved budgets, the OPI recalculates the maximum amount allowable for indirect cost recovery on the amended award. Electronic notification will be sent to the authorized representative to inform the LEA that carryover has been amnded into the ESEA Title grants that are included in the Consolidated Application. An amended Annual Cash Request form (see Appendix B) must be submitted to request cash available from carryover. June 2005 Section 200-14 N ONPUBLIC S CHOOL P ARTICIPATION Federal statutes require that public school districts have meaningful and timely consultation with NONPUBLIC schools within their boundaries concerning the availability of the various federal programs in which nonpublic schools may participate, whether individually or in a consortium or cooperative. All districts must offer the opportunity for a free and appropriate public education for students with disabilities residing within their boundaries. Nonpublic School Participation Notification Annually, public school districts will consult with all nonpublic schools within their boundaries, informing them of opportunities to participate in federal education programs and designing pro- grams that will benefit the participating public and nonpublic school students. Pr ocess for Nonpublic School Par ticipation Notification In late March, the OPI provides districts with forms to use for nonpublic school participation noti- fication, lists of nonpublic schools reported in October and program descriptions. Between March and early May, districts will notify all nonpublic schools within their boundaries of a general meeting to explain the federal programs for which nonpublic students are eligible and invite them to participate. Home school parents may have completed check-off forms requesting that the district not contact them at any time in the future about federal program participation. Districts should maintain records of schools contacted and the method of notification (some use registered mail). Following distribution of the information and timely and meaningful consultation with nonpublic schools, districts return Nonpublic Participation in Federally Funded Programs to the OPI in May, informing the OPI that they have had meaningful consultation with the nonpublic schools within their boundaries and listing which nonpublic school students will participate in the federal programs with the public school district. BASIC PROVISIONS The authorizing statutes for most federal programs administered by the OPI require that the state and sub-grant recipient provide for participation by students enrolled in nonpublic schools. Some programs also allow participation by nonpublic school staff. Sub-grant recipients sign a cCommon Assurances Form d which indicates the intention of the re- cipient to provide equitable services to eligible nonpublic school students under the various pro- grams. Copies of forms are kept on file at the OPI and must be retained by each sub-grant recipient for audit purposes. ADMINISTRATIVE RESPONSIBILITY FOR NONPUBLIC SCHOOL PARTICIPATION Sub-grant recipients must fulfill these general administrative responsibilities: (34 CFR 76.651- 662) 1.Provide eligible nonpublic school students a genuine opportunity for equitable participation in accordance with federal laws and regulations for a program; Section 200-15 June 2005 2.Provide nonpublic school students the opportunity to participate consistent with the number of nonpublic school students and their needs; 3.Maintain administrative control over federal funds and federal property used for students en- rolled in nonpublic schools; 4.Checklist for Consultations General Items 4To ensure timely and meaningful consultation, a LEA shall consult with ap- propriate nonpublic officials during the design and development of the district 9s programs under this part, on issues such as: 4 How the children 9s needs will be identified; 4 What services will be offered; 4 How, where, and by whom the services will be provided; 4 How the services will be assessed (academically assessed in Title I, Part A) and how the results of that assessment will be used to improve those services; 4 The size and scope of the equitable services to be provided to the eligible nonpublic school children, and the amount of funds available for those services; 4 How and when the district will make decisions about the delivery of services to such children including a thorough consideration and analysis of the views of the nonpublic school officials on the provision of services through a contract with potential third-party providers; and 4 How, if the district disagrees with the views of the nonpublic school officials on the provision of services through a contract, the LEA will provide in writing to such nonpublic school officials an analysis of the reasons why the LEA has chosen not to use a contrac- tor. 4 TIMING 4Such consultation shall include meetings of district and nonpublic school of- ficials and shall occur before the LEA makes any decision that affects the opportunities of eligible nonpublic school children to participate in programs under this part. Such meetings shall continue throughout implementation and assessment of services provided under this section. 4 DISCUSSION 4Such consultation shall include a discussion of service delivery mecha- nisms a LEA can use to provide equitable services to eligible nonpublic school children. a.Consultation Requirements Under IDEA, Part B To ensure equitable participation of nonpublic school children with disabilities paren- tally enrolled in nonpublic schools, the school district must consult with nonpublic school representatives during the design and development of special education and related ser- vices for the children, including regarding 4 June 2005 Section 200-16 (1)the child find process and how nonpublic school children suspected of having a disability can participate equitably, including how parents, teachers, and private school officials will be informed of the process; (3)the determination of the proportionate amount of Federal funds available to serve nonpublic school children with disabilities, including the determination of how the amount was calculated; (3)the consultation process among the school district, nonpublic school officials, and representatives of parents of parentally placed nonpublic school children with dis- abilities, including how such process will operate throughout the school year to ensure that parentally placed private school children with disabilities identified through the child find process can meaningfully participate in special education and related services; (4)how, where, and by whom special education and related services will be provided for nonpublic school children with disabilities, including a discussion of types of services, including direct services and alternate service delivery mechanisms, how such services will be apportioned if funds are insufficient to serve all children, and how and when these decisions will be made; and (5)how, if the school district disagrees with the view of the nonpublic school officials on the provision of services or the types of services, whether provided directly or through a contract, the school district shall provide to the nonpublic school officials a written explanation of the reasons why the school district chose not to provide services directly or through a contract. 5.Assure that program benefits provided for nonpublic school students are comparable in qual- ity, scope, and opportunity to participate as are benefits provided to students in public schools; 6.Assure that if needs of students in nonpublic schools are different than in public schools, the benefits provided are different; 7.Assure that equitable opportunities are provided for students in nonpublic schools as provided to students with the same needs in public schools; 8.Assure the program funds are not used to finance the existing level of instruction or otherwise benefit the nonpublic school; 9.Assure the same average amount of program funds are spent for benefits to nonpublic and public schools, or that the average cost is different because the needs differ from needs of students in public schools; 10.Keep title and control over equipment purchased for use in a nonpublic school; 11.Place equipment and supplies in a nonpublic school for the time needed for the project; 12.Assure that equipment or supplies placed in a nonpublic school are used only for the project and are removable without remodeling at the end of the project; 13.Remove equipment or supplies from a nonpublic school if they are no longer used for the project or if necessary to avoid use on a different project; Section 200-17 June 2005 14.Assure that program funds are not used for construction of nonpublic school facilities; 15.Use program funds to pay services of an employee of a nonpublic school if the services are performed outside the regular workday and if the employee performs the services under the control and supervision of the public school; and 16.Report nonpublic school fiscal and evaluation data by program to the OPI as required by various program regulations. SPECIFIC PROGRAM ELIGIBILITY ESEA T itle I, Par t A, Impr oving Basic Pr ograms: Nonpublic school students with academic needs who reside in Title I attendance areas may receive equitable services to the extent possible with funds generated by low-income nonpublic school students. ESEA T itle II, Par t A, T eacher and Principal T raining and Recruiting: If there are nonpublic schools within a district boundary, the local district must include the nonpublic school staff in its Title II program if the nonpublic school staff wishes to participate. Local education agencies shall consult with appropriate nonpublic school officials during the design and development of the dis- trict Title II program. ESEA T itle II, Par t D, Educational T echnology: School districts must provide opportunity for nonpublic participants in an equitable manner. Grant recipients must notify nonpublic school par- ticipants before grant funds will be released. ESEA T itle III, Par t A, English Language Acquisition and Language Enhancement: Students identified as limited English proficient and/or immigrant under the Immigration and Nationality Act and who are enrolled in a nonpublic school may be eligible. ESEA T itle IV , Par t A, Safe and Drug-Fr ee Schools and Communities: Students and staff from a nonpublic school may be eligible to receive equitable services. The public school district serves as the fiscal agent for the funds and retains fiscal control over the services provided for the benefit of nonpublic school students and/or staff. Forty percent of the allocation is based on the LEA enrollment, including enrollment in nonpublic schools within the boundaries of the LEA. Sixty percent of the allocation is based on the Title I, Part A amount the LEA received the previous year. ESEA T itle IV , Par t B, 21st Centur y Community Learning Centers: Eligible applicants include public schools, community-based organizations, other public or private entities, or a consortium of two or more of such agencies or entities. Award priority is given to eligible entities that serve a high percentage of students from low-income families. ESEA T itle V , Par t A, Innovative Education Pr ograms: School districts will consult with the appropriate officials of nonpublic schools wishing to participate in Title V programs to determine services on an equitable basis for the benefit of the students in those nonpublic schools, whether or not the services desired are the same Title V services the district provides to the public school students. The district retains fiscal and administrative control over all materials and services pro- vided for the benefit of nonpublic school students. June 2005 Section 200-18 IDEA Part B: Public schools are obligated to establish a service agreement for students with disabilities attending nonpublic schools in accordance with the requirements of 34 CFR 300.450- 300.462. This agreement must be established with input from the nonpublic school. For those nonpublic schools who indicate a desire to participate in IDEA services, the public school is obli- gated to make special education services available consistent with its services agreement, but may limit the services provided to an amount calculated under the provisions of IDEA regulations. Carl Perkins: Nonpublic schools may participate through a public school: nonpublic schools cannot apply for funds directly.

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