Expanded Authorities

&
Financial Monitoring
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 The
“Expanded Authorities”
Amendments

Greater flexibility for managing

ED Discretionary Grants

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“Expanded Authorities”
GOALS:

Increase flexibility
Increase accountability
Reduce paperwork burden
Develop partnerships

✯ Promote successful project outcomes

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“Expanded Authorities”

Pre-award Costs
Carryover
Budget Transfers
Time Extensions
4
 Pre-award Costs

Incurred up to 90 days
before budget period begins

• No prior approval required

•Applies to New and NCC awards
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Pre-award Costs
Reasonable expectation of
receiving a grant
Incurred at own risk
ED funds are not available
for drawdown until the
budget period begins
Not for cost over-runs
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 Pre-award Costs
Incurred more than 90 days
before budget period begins:

Requires OK
prior
approval
7
 Carryover
Unexpended funds are
carried over without
prior approval
For any allowable cost
within the approved
project scope
finishing uncompleted
activities
new activities within scope 8
 Carryover

Program Office may

require a written
statement
• How will unexpended funds be used?
• When: At time of funding decision
• In rare cases, new funds may be
reduced
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 Budget Transfers
No prior approval required for
most budget transfers
1
Exceptions in EDGAR: 0%r
ule
Transfer training funds to other
categories
Transfer or contracting out any work
Check OMB Cost Principles for
other exceptions
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EDGAR Prior Approval
Requirements
Changes in project scope or objectives
Changes in key personnel

IHE and non-profit project directors:

Absence for more than 3 months
25% reduction in time

Need for additional federal funds

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Time Extensions
Final Year:
One-time extension
for up to one year
without prior
approval
Grantees should
carefully consider
time extension
needs 12
 Time Extensions
Send written notice to
program officer:

No later than 10 days before

project ends
State reasons for extension
Include revised expiration date
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 Time Extensions

Not just for using

unexpended funds

No additional
federal funds

No change to scope
or objectives
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Important Reminders

Check grant terms, conditions and grant

award attachments for possible
exceptions
In rare circumstances, some or all may
be denied
When in doubt, call your Program
Officer
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 Conclusion

New spirit of partnership

Focus on successful
project outcomes!

We welcome your feedback.

Let us know what’s working and what’s not.

Internet address: grantspolicy@ed.gov 16

17
Financial Management/
Monitoring in GAPS

Grant Administration &

Payment System

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Grant Administration &
Payment System
Request
drawdown by
grant award
number
Drawdowns
treated as
expenditures
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 Grantee

receives grant award from ED

administers the grant in
accordance with ED
regulations
DUNS number needed to
participate
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 Payee

Requests and manages funds

May be the grantee or other entity

identified by the grantee
Needs DUNS Number to participate

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 Payment Methods
U.S. Department of Education

 
Advance Payment Reimbursement Payment
Method Method 22
Receiving ED Funds

Your Bank

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 Cash Management

Drawn funds must be

expended within three
business days after they are
deposited in your bank
account.

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Monitoring For Results

Performance monitoring

Financial monitoring

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 The Results Act

The Government Performance

and Results Act of 1993 (GPRA)

Develop program standards & indicators

Ties federal funding to results!
What is happening with the money?
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 Grant Teams Monitor

*GAPS*
Track spending patterns for each grant

Why:
❑ Identify performance problems
❑ Identify financial management problems
❑ Work in partnership to resolve
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What Grant Teams Are
Looking For

Rate of draws:
Commensurate with
approved scope of
work & project
milestones?
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Exercise #1 - LLU
Grant for $275,000 to LLU -
their first federal grant
Project was on track, meeting
goals and objectives
Performance report indicated
$200,000 expended
GAPS shows no funds
drawn down
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Exercise #2 - BobU

BobU received $75,000 grant

Performance report indicates

$25,000 unexpended

Program officer calls

grantee to discuss why

Bob 30
Exercise #3 - SKI
SKI receives $400,000 grant
Key milestones being reached
on schedule
GAPS indicates all $400,000
was drawn down in first three
months

Smarter Kids . . . Start Here! 31

When Grant
Teams
Check GAPS
Throughout the life of the grant
At the end of each budget period
Before performance monitoring
Before technical assistance contacts
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 Red Flags
Not drawing down funds//Regular draw
downs not being made

Is work being performed?

Are performance indicators being met?
Is there a financial management problem?

✎ Work is being performed, but payee is

not drawing down funds
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 Red Flags
Large amount of unobligated funds at
end of budget period

Has grantee made substantial progress?

Other issues:

Did project have a late start (Year 1) ?

Did key personnel leave the project?

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 Red Flags
Excessive amount
of funds drawn
down
Draws exceed
immediate need
(3-day rule)

Draws not in line with

project scope &
milestones 35
 Conclusion
Project Directors:
Communicate with your Fiscal
Staff
Ensure that the drawdowns in
GAPS reflect status of project
Grant Teams rely on drawdown
in GAPS to monitor your
project
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37
Thanks for attending!
Please complete an
evaluation form and -

Good Luck with your

ED discretionary grant!
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