Program Office: Institutional Service
CFDA Number: 84.382D
Program Type: Formula Grants
Program Description
With the enactment of the Higher Education Opportunity Act (HEOA) of 2008, five Predominantly Black Institutions are eligible to receive funding to improve graduate education opportunities at the master's level in mathematics, engineering, physical or natural sciences, computer science, information technology, nursing, allied health or other scientific disciplines where African American students are underrepresented.
Types of Projects
Institutions may use federal funds for activities that include:
- Purchase, rental or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;
- Construction, maintenance, renovation and improvement in classroom, library, laboratory and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;
- Purchase of library books, periodicals, technical and other scientific journals, microfilm, microfiche, and other educational materials, including telecommunications program materials;
- Scholarships, fellowships, and other financial assistance for needy graduate students to permit the enrollment of students in, and completion of a master's degree in mathematics, engineering, physical or natural sciences, computer science, information technology, nursing, allied health, or other scientific disciplines in which African Americans are underrepresented;
- Establishing or improving a development office to strengthen and increase contributions from alumni and the private sector;
- Assisting in the establishment or maintenance of an institutional endowment to facilitate financial independence pursuant to Section 331;
- Funds and administrative management, and the acquisition of equipment, including software, for use in strengthening funds management and management information systems;
- Acquisition of real property that is adjacent to the campus in connection with the construction, renovation, or improvement of, or an addition to, campus facilities;
- Education or financial information designed to improve the financial literacy and economic literacy of students or the students' families, especially with regards to student indebtedness and student assistance programs under title IV;
- Tutoring, counseling, and student service programs designed to improve academic success;
- Faculty professional development, faculty exchanges, and faculty participation in professional conferences and meetings; and
- Other activities proposed in the application that are approved by the Secretary as part of the review and acceptance of such application.
Program Map of Participating Institutions - This map shows the five institutions eligible to apply for and receive formula grants awarded under this program by Institutional Service (IS), U.S. Department of Education. Grants were awarded in FY 2009 for a period of six years.
Who May Apply: The authorizing statute specifies that the following institutions are eligible to apply for and receive PBI Master's Program grants:
- Chicago State University
- Columbia Union College
- Long Island University, Brooklyn Campus
- Robert Morris College
- York College, The City University of New York
Qualified Graduate Program
The Higher Education Opportunity Act provides that a "qualified master's degree program" is a master's degree program in mathematics, engineering, the physical or natural sciences, computer science, information technology, nursing, allied health, or other scientific disciplines in which African-Americans are underrepresented. The master's degree program must have students enrolled at the time of application for a grant under this section.
Enrollment Exception
An institution may use an amount equal to not more than ten percent of the institution's grant under this section for the development of a new qualified master's degree program.
Institutional Choice
The president or chancellor of the institution may decide which graduate school or qualified masters degree program will receive funds under the grant in any one fiscal year, if the allocation of funds among the schools or programs is delineated in the application for funds submitted to the Secretary under this section.
One Grant Per Institution
The Secretary shall not award more than one grant under this section in any fiscal year to any institution of higher education.
Timeline
Most recent competition: FY 2009
Six year grants were awarded to eligible institutions in FY 2009.
Tips and Assistance
Application Requirements
The Higher Education Opportunity Act (HEOA) requires that an eligible institution desiring a PBI Master's Program grant submit an application containing such information as the Secretary may require. The application must demonstrate how the grant funds would be used to improve graduate educational opportunities for African-American students and low-income students and lead to these students' greater financial independence.
Matching Requirement
In order to receive a grant in excess of $1,000,000, an institution must provide assurances that fifty (50) percent of the cost of the purposes for which the grant is made will be paid from non-federal sources. However, the institution is not required to match any portion of the first $1,000,000 of the institution's award from the Secretary. After funds are made available to each eligible institution under the program funding rules, the HEOA requires that the Secretary distribute, on a pro rata basis, any amounts which an institution cannot use due to the failure to meet the matching requirements to those institutions complying with the matching requirement.
Duration of Grants
The HEOA requires that a PBI Master's Program grant is for a period of not more than six years but may be periodically renewed for a period to be determined by the Secretary.
Subject to the funding rules, the authorizing statute provides that the minimum grant to each eligible institution must not be less than $500,000. Institutions may not receive more than one grant in any fiscal year.
Program Map of Participating Institutions
FY 2009-14
- Abstracts of funded projects PDF (50K)
| State | Grantee | FYs 2009, 2010, and 2011 Awards |
| IL | Robert Morris College | $500,000 annually |
| IL | Chicago State University | $500,000 annually |
| MD | Washington Adventist University (formerly Columbia Union College) | $500,000 annually |
| NY | Long Island University (Brooklyn Campus) | $500,000 annually |
| NY | York College (The City University of New York) | $500,000 annually |
| Total Grant Awards: | $2,500,000 annually |
FY 2011
Number of continuation awards: 5
Average award: $500,000
Total award funding: $2,500,000
FY 2010
Number of continuation awards: 5
Average award: $500,000
Total award funding: $2,500,000
FY 2009
Number of new awards: 5
Average new award: $500,000
Total new award funding: $2,500,000
The Higher Education Opportunity Act (HEOA) provides that, from the amount appropriated to carry out the PBI master's program for any fiscal year, the first $2,500,000 (or any lesser amount appropriated) must be available for the purposes of making minimum grant awards to eligible institutions. If the amount appropriated is not sufficient to pay the minimum grant awards to all the eligible institutions, the amount of the minimum award to each designated eligible institution must be ratably reduced. For fiscal year 2009 and each of the five succeeding fiscal years, sufficient funds have been appropriated under Section 897 of the amended Higher Education Act to make available at least the minimum award amount if all eligible institutions submit an approvable application for a grant. Note that under the provisions of the matching requirement, the Secretary is required to redistribute any funds an institution cannot match to other institutions meeting the matching requirement.
The HEOA requires that any amount in excess of $2,500,000 must be made available to each of the eligible institutions. The award amounts must be based on using a formula developed by the Secretary. The formula must use the following elements:
- the ability of the institution to match Federal funds with non-Federal funds;
- the number of students enrolled in the qualified master's degree program at the eligible institution in the previous academic year;
- the average cost of attendance per student, for all full-time students enrolled in the qualified master's degree program at such institution;
- the number of students in the previous year who received a degree in the qualified master's degree program at such institution; and
- the contribution, on a percent basis, of the programs for which the institution is eligible to receive funds under this section to the total number of African-Americans receiving master's degrees in the disciplines related to the programs for the previous year.
Performance Reports
Annual Performance Report
Recipients of multi-year discretionary awards are required to submit an Annual Performance Report (APR) annually; the collection number is OMB 1840-0766. The annual report provides data on the status of the funded project that corresponds to the scope and objectives established in the approved application and any approved amendments. Under EDGAR Section 75.118, the report must provide the most current performance and financial information (including cost-share data, if applicable). ED Program Staff will analyze each report to ensure that the grantee has made substantial progress toward reaching the objectives included in the grantee's approved application.
Annual Performance Reports are typically due 90 days after the performance period ends; however, grantees will be notified by their ED Program Officer if the submission deadline changes.
Note: If you are a project director and have responsibility for completing the annual report for your institution, please be sure you are designated on the official grant award notification and your e-mail and telephone number are listed correctly in the G5 database.
Final Performance Report
All recipients, in accordance with EDGAR Section 75.590, are required to submit a final performance report. ED Program Staff will review the final performance report and determine whether the grantee achieved the scope and objectives of the grant. The program staff will also determine if all applicable administrative actions and financial obligations have been completed by grantee.
Final Performance Reports are typically due 90 days after the performance period ends (September 30th); however, grantees will be notified by their ED Program Officer if the submission deadline changes.
FAQs
- Where can I get general guidance and resource material about this program and the grantmaking process?
- What changes am I able to make to my project and/or budget without prior ED approval?
- When I have to request project and/or budget changes that require prior approval from ED, how should I submit those changes? How does ED decide to approve or disapprove my request?
- I have unspent and unobligated funds from a previous fiscal year. Can I carry them over into the current budget period and use them on an activity?
- What is a Legislatively Allowable Activity (LAA)?
- What are the guidelines for drawing down funds for upcoming costs?
- Must our institution conduct an audit of our project every year?
- What is the matching funds requirement for endowments? When must the matching funds be raised?
- What kinds of records do I need to keep?
- Who do I contact if I have a problem with the G5 systems?
- Where can I find the most up to date copy of the Code of Federal Regulations (CFR)?
- Where can I find the most recent edition of EDGAR?
- Where can I find form-fillable editions of standard ED Grant Application and Reporting Forms?
1. Where can I get general guidance and resource material about this program and the grantmaking process?
The questions and answers presented here are provided as a resource to our grantees, but are not intended to replace communication with your Department of Education (ED) program officer. Please continue to contact your program officer with specific questions about your grant awards.
Project directors and/or other grant personnel who are new to the grantmaking process should review the Grantmaking at ED publication (http://www2.ed.gov/fund/grant/about/grantmaking/index.html), which is a non-technical summary of ED's discretionary grants process (application, review, award, administration, grant closeout, and audit) and the laws and regulations that govern the process.
In addition, online grants management training and resources for project directors are available at: http://e-grants.ed.gov/training/GMT0101000.htm.
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2. What changes am I able to make to my project and/or budget without prior ED approval?
Grantees are allowed a certain degree of flexibility to make post-award changes and budget revisions without prior approval. Section 74 of the Education Department General Administrative Regulations (EDGAR) generally permits grantees to undertake the following administrative actions without seeking approval from their program office. Usually the program office requires the grantee to provide a notification of the change, including supporting justification:
- Obligate funds for up to 90 days before the start date of the grant's performance period (EDGAR § 74.25(e)(1))
- Extend the project period one time at the end of the grant for a period of up to 12 months (EDGAR § 74.25(e)(2))
- Carry funds over from one budget period to the next (EDGAR § 74.25(e)(3))
- Transfer funds among budget line items (EDGAR § 74.25(f)).
If the change you wish to make is beyond these allowable administrative actions, you must contact ED for prior approval. Grantees are urged to review the sections in EDGAR relating to the type of change they wish to make.
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3. When I have to request project and/or budget changes that require prior approval from ED, how should I submit those changes? How does ED decide to approve or disapprove my request?
Proposed project and/or budget changes must be submitted in writing to your ED program officer. The proposal should include the following documents:
- Cover Letter providing overview of proposed changes and why they are necessary to the success of the project
- Revised Activity Narrative (if applicable)
- Revised Budget Summary (if applicable)
- Revised Individual Activity Budget Form (if applicable)
- Revised Activity Objectives and Anticipated Results (if applicable)
- Revised Implementation Strategy/Timetable Form (if applicable)
- Curriculum Vitae or Resume of New Project Director and/or Activity Director (if applicable).
Upon receipt of the written request, the program staff may contact grantees directly for clarification or additional information as needed.
All submitted requests for programmatic and/or budget changes are evaluated on a case-by-case basis. The decision to approve or disapprove a request is based on requirements imposed by applicable Federal statutes, including the General Education Provisions Act (GEPA), program legislation and regulations, EDGAR, and OMB circulars. All resulting costs and activities related to approved changes must be allowable. No official may authorize any administrative actions that conflict with any applicable Federal statute, program legislation or regulation, EDGAR, grant conditions; or permit changes that would alter the scope or objectives of a competitive discretionary grant.
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4. I have unspent and unobligated funds from a previous fiscal year. Can I carry them over into the current budget period and use them on an activity?
Section 74.25(e)(3) of EDGAR states that, "(e) Except for requirements listed in paragraphs (c)(1) and (c)(4) of this section, the Secretary may waive cost-related and administrative prior written approvals required by this part and OMB Circulars A-21 and A-122. These waivers may authorize recipients to do any one or more of the following: (3) Carry forward unobligated balances to subsequent funding years." Based on this regulation, you may carry-over funds however they can only be spent on approved activities listed in your application or other legislatively allowable activities.
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5. What is a Legislatively Allowable Activity (LAA)?
The legislatively allowable activities for Title VII, Part A programs are listed in Section 724 of the Higher Education Opportunity Act (HEOA) as amended, as well as OMB Circular A-21. If you are uncertain whether a proposed activity is legislatively allowable or not you should always contact your assigned program officer to inquire. They will issue a written response with a determination.
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6. What are the guidelines for drawing down funds for upcoming costs?
You are urged to read §74.22 of EDGAR to learn more about federal requirements related to grant payments. For any cash that you draw from your Department of Education grant account, you must:
- Draw down only as much cash as is necessary to meet the immediate needs of the grant project
- Keep to the minimum the time between drawing down the funds and paying them out for grant activities
- Return to the government the interest earned on grant funds deposited in interest-bearing bank accounts (except for a small amount of interest earned each year that your entity is allowed to keep to reimburse itself for administrative expenses)
In order to meet these requirements, you are urged to:
- Take into account the need to coordinate the timing of drawdowns with prior internal clearances (e.g., by boards, directors, or other officials) when projecting immediate cash needs so that funds drawndown from ED do not stay in a bank account for extended periods of time while waiting for approval
- Monitor the fiscal activity (drawdowns and payments) under your grant on a continuous basis
- Plan carefully for cash flow in your grant project during the budget period and review project cash requirements before each drawdown
- Pay out grant funds for project activities as soon as it is practical to do so after receiving cash from the Department.
Keep in mind that the Department monitors cash drawdown activity for all grants on a weekly basis. Department staff will contact grantees who appear to have drawn down excessive amounts of cash under one or more grants during the fiscal quarter to discuss the particular situation. Grantees that fail to follow federal cash management requirements may be designated as high-risk, which may affect future funding.
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7. Must our institution conduct an audit of our project every year?
Grantees that spend $500,000 or more in combined federal funds (regardless of agency) during fiscal years ending after December 31, 2003, or $300,000 or more in federal funds during fiscal years ended on December 31, 2003 or earlier, are required to have an annual institutional audit. Generally, these audits, referred to as "A-133 audits" or "single audits," review expenditures of federal funds across an entire organization instead of specific costs of individual grants. These audits must be conducted in accordance with "Standards for the Audit of Governmental Organizations, Programs, Activities and Functions," published by the Comptroller General of the Government Accountability Office (GAO). Independent non-federal auditors selected by the grantee may perform these audits. Grantees that fail to meet the A-133 audit requirement may be designated as high-risk, which may affect future funding.
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8. What is the matching funds requirement for endowments? When must the matching funds be raised?
According to the Higher Education Opportunity Act (HEOA) as amended, grant funds used for endowments must be matched in equal or greater amounts with funds from non-federal sources. In addition, no more than 20 percent of an annual grant award can be used to establish or increase an endowment fund at the institution.
If a grantee institution decides to use any of its grant funds for endowment purposes, it must match those grant funds immediately with non-federal funds when it places those funds into its endowment fund.
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9. What kinds of records do I need to keep?
You must keep records regarding the use of grant funds, compliance with program requirements, and the date the project used to demonstrate the effectiveness of the project in meeting the grant's objectives. Keep your copy of the approved application. The financial records must show the amount and source of all funds spent on the grant, including any matching funds that were promised in the approved application. The records must document how all federal and matching funds were used. You must also keep records that document other types of information you provided the Department in your annual or final reports, such as records of program participants and the source data used to report on performance measures.
If you purchase equipment with grant funds, you must maintain inventory records until the equipment is no longer needed to meet the project objectives, and then you should request disposition instructions from the Department. Keep copies of all correspondence with the Department regarding the project; GEPA (20 U.S.C. 31) and EDGAR regulations (34 CFR §75.730-732) provide specific requirements for record retention. You may need these records to demonstrate to program monitors or auditors that all expenditures and activities you conducted with the grant were allowable and accurately reported.
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10. Who do I contact if I have a problem with the G5 systems?
Help with G5 is available through e-mail or by calling the EDCAPS hotline.
Hours of Operation: 8:00 a.m. to 6:00 p.m., Monday-Friday, EST
Toll Free: (888) 336-8930
TTY: (866) 697-2696
Local: (202) 401-6238
E-mail: edcaps.user@ed.gov
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11. Where can I find the most up to date copy of the Code of Federal Regulations (CFR)?
The Code of Federal Regulations (CFR) can be accessed at http://www.gpoaccess.gov/cfr.
Hard copies of the CFR are often available in the reference section of major libraries. For information about purchasing the CFR, go to the Government Printing Office (GPO) online bookstore at http://bookstore.gpo.gov or call the Superintendent of Documents at (202) 512-1800 or toll free at (866) 512-1800.
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12. Where can I find the most recent edition of EDGAR?
A PDF version of EDGAR is available for download and printing at http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html.
The most recent regulations that comprise EDGAR can also be found in the Code of Federal Regulations. Please note that EDGAR comprises only Parts 74-99.
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13. Where can I find form-fillable editions of standard ED Grant Application and Reporting Forms?
Electronic versions of ED Grant Application and Other Forms are available at http://www2.ed.gov/fund/grant/apply/appforms/appforms.html.
Program Office: Institutional Service
CFDA Number: 84.382D
Program Type: Formula Grants
Program Description
With the enactment of the Higher Education Opportunity Act (HEOA) of 2008, five Predominantly Black Institutions are eligible to receive funding to improve graduate education opportunities at the master's level in mathematics, engineering, physical or natural sciences, computer science, information technology, nursing, allied health or other scientific disciplines where African American students are underrepresented.
Types of Projects
Institutions may use federal funds for activities that include:
- Purchase, rental or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;
- Construction, maintenance, renovation and improvement in classroom, library, laboratory and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;
- Purchase of library books, periodicals, technical and other scientific journals, microfilm, microfiche, and other educational materials, including telecommunications program materials;
- Scholarships, fellowships, and other financial assistance for needy graduate students to permit the enrollment of students in, and completion of a master's degree in mathematics, engineering, physical or natural sciences, computer science, information technology, nursing, allied health, or other scientific disciplines in which African Americans are underrepresented;
- Establishing or improving a development office to strengthen and increase contributions from alumni and the private sector;
- Assisting in the establishment or maintenance of an institutional endowment to facilitate financial independence pursuant to Section 331;
- Funds and administrative management, and the acquisition of equipment, including software, for use in strengthening funds management and management information systems;
- Acquisition of real property that is adjacent to the campus in connection with the construction, renovation, or improvement of, or an addition to, campus facilities;
- Education or financial information designed to improve the financial literacy and economic literacy of students or the students' families, especially with regards to student indebtedness and student assistance programs under title IV;
- Tutoring, counseling, and student service programs designed to improve academic success;
- Faculty professional development, faculty exchanges, and faculty participation in professional conferences and meetings; and
- Other activities proposed in the application that are approved by the Secretary as part of the review and acceptance of such application.
Program Map of Participating Institutions - This map shows the five institutions eligible to apply for and receive formula grants awarded under this program by Institutional Service (IS), U.S. Department of Education. Grants were awarded in FY 2009 for a period of six years.
Who May Apply: The authorizing statute specifies that the following institutions are eligible to apply for and receive PBI Master's Program grants:
- Chicago State University
- Columbia Union College
- Long Island University, Brooklyn Campus
- Robert Morris College
- York College, The City University of New York
Qualified Graduate Program
The Higher Education Opportunity Act provides that a "qualified master's degree program" is a master's degree program in mathematics, engineering, the physical or natural sciences, computer science, information technology, nursing, allied health, or other scientific disciplines in which African-Americans are underrepresented. The master's degree program must have students enrolled at the time of application for a grant under this section.
Enrollment Exception
An institution may use an amount equal to not more than ten percent of the institution's grant under this section for the development of a new qualified master's degree program.
Institutional Choice
The president or chancellor of the institution may decide which graduate school or qualified masters degree program will receive funds under the grant in any one fiscal year, if the allocation of funds among the schools or programs is delineated in the application for funds submitted to the Secretary under this section.
One Grant Per Institution
The Secretary shall not award more than one grant under this section in any fiscal year to any institution of higher education.
Timeline
Most recent competition: FY 2009
Six year grants were awarded to eligible institutions in FY 2009.
Tips and Assistance
Application Requirements
The Higher Education Opportunity Act (HEOA) requires that an eligible institution desiring a PBI Master's Program grant submit an application containing such information as the Secretary may require. The application must demonstrate how the grant funds would be used to improve graduate educational opportunities for African-American students and low-income students and lead to these students' greater financial independence.
Matching Requirement
In order to receive a grant in excess of $1,000,000, an institution must provide assurances that fifty (50) percent of the cost of the purposes for which the grant is made will be paid from non-federal sources. However, the institution is not required to match any portion of the first $1,000,000 of the institution's award from the Secretary. After funds are made available to each eligible institution under the program funding rules, the HEOA requires that the Secretary distribute, on a pro rata basis, any amounts which an institution cannot use due to the failure to meet the matching requirements to those institutions complying with the matching requirement.
Duration of Grants
The HEOA requires that a PBI Master's Program grant is for a period of not more than six years but may be periodically renewed for a period to be determined by the Secretary.
Subject to the funding rules, the authorizing statute provides that the minimum grant to each eligible institution must not be less than $500,000. Institutions may not receive more than one grant in any fiscal year.
Program Map of Participating Institutions
FY 2009-14
- Abstracts of funded projects PDF (50K)
| State | Grantee | FYs 2009, 2010, and 2011 Awards |
| IL | Robert Morris College | $500,000 annually |
| IL | Chicago State University | $500,000 annually |
| MD | Washington Adventist University (formerly Columbia Union College) | $500,000 annually |
| NY | Long Island University (Brooklyn Campus) | $500,000 annually |
| NY | York College (The City University of New York) | $500,000 annually |
| Total Grant Awards: | $2,500,000 annually |
FY 2011
Number of continuation awards: 5
Average award: $500,000
Total award funding: $2,500,000
FY 2010
Number of continuation awards: 5
Average award: $500,000
Total award funding: $2,500,000
FY 2009
Number of new awards: 5
Average new award: $500,000
Total new award funding: $2,500,000
The Higher Education Opportunity Act (HEOA) provides that, from the amount appropriated to carry out the PBI master's program for any fiscal year, the first $2,500,000 (or any lesser amount appropriated) must be available for the purposes of making minimum grant awards to eligible institutions. If the amount appropriated is not sufficient to pay the minimum grant awards to all the eligible institutions, the amount of the minimum award to each designated eligible institution must be ratably reduced. For fiscal year 2009 and each of the five succeeding fiscal years, sufficient funds have been appropriated under Section 897 of the amended Higher Education Act to make available at least the minimum award amount if all eligible institutions submit an approvable application for a grant. Note that under the provisions of the matching requirement, the Secretary is required to redistribute any funds an institution cannot match to other institutions meeting the matching requirement.
The HEOA requires that any amount in excess of $2,500,000 must be made available to each of the eligible institutions. The award amounts must be based on using a formula developed by the Secretary. The formula must use the following elements:
- the ability of the institution to match Federal funds with non-Federal funds;
- the number of students enrolled in the qualified master's degree program at the eligible institution in the previous academic year;
- the average cost of attendance per student, for all full-time students enrolled in the qualified master's degree program at such institution;
- the number of students in the previous year who received a degree in the qualified master's degree program at such institution; and
- the contribution, on a percent basis, of the programs for which the institution is eligible to receive funds under this section to the total number of African-Americans receiving master's degrees in the disciplines related to the programs for the previous year.
Performance Reports
Annual Performance Report
Recipients of multi-year discretionary awards are required to submit an Annual Performance Report (APR) annually; the collection number is OMB 1840-0766. The annual report provides data on the status of the funded project that corresponds to the scope and objectives established in the approved application and any approved amendments. Under EDGAR Section 75.118, the report must provide the most current performance and financial information (including cost-share data, if applicable). ED Program Staff will analyze each report to ensure that the grantee has made substantial progress toward reaching the objectives included in the grantee's approved application.
Annual Performance Reports are typically due 90 days after the performance period ends; however, grantees will be notified by their ED Program Officer if the submission deadline changes.
Note: If you are a project director and have responsibility for completing the annual report for your institution, please be sure you are designated on the official grant award notification and your e-mail and telephone number are listed correctly in the G5 database.
Final Performance Report
All recipients, in accordance with EDGAR Section 75.590, are required to submit a final performance report. ED Program Staff will review the final performance report and determine whether the grantee achieved the scope and objectives of the grant. The program staff will also determine if all applicable administrative actions and financial obligations have been completed by grantee.
Final Performance Reports are typically due 90 days after the performance period ends (September 30th); however, grantees will be notified by their ED Program Officer if the submission deadline changes.
FAQs
- Where can I get general guidance and resource material about this program and the grantmaking process?
- What changes am I able to make to my project and/or budget without prior ED approval?
- When I have to request project and/or budget changes that require prior approval from ED, how should I submit those changes? How does ED decide to approve or disapprove my request?
- I have unspent and unobligated funds from a previous fiscal year. Can I carry them over into the current budget period and use them on an activity?
- What is a Legislatively Allowable Activity (LAA)?
- What are the guidelines for drawing down funds for upcoming costs?
- Must our institution conduct an audit of our project every year?
- What is the matching funds requirement for endowments? When must the matching funds be raised?
- What kinds of records do I need to keep?
- Who do I contact if I have a problem with the G5 systems?
- Where can I find the most up to date copy of the Code of Federal Regulations (CFR)?
- Where can I find the most recent edition of EDGAR?
- Where can I find form-fillable editions of standard ED Grant Application and Reporting Forms?
1. Where can I get general guidance and resource material about this program and the grantmaking process?
The questions and answers presented here are provided as a resource to our grantees, but are not intended to replace communication with your Department of Education (ED) program officer. Please continue to contact your program officer with specific questions about your grant awards.
Project directors and/or other grant personnel who are new to the grantmaking process should review the Grantmaking at ED publication (http://www2.ed.gov/fund/grant/about/grantmaking/index.html), which is a non-technical summary of ED's discretionary grants process (application, review, award, administration, grant closeout, and audit) and the laws and regulations that govern the process.
In addition, online grants management training and resources for project directors are available at: http://e-grants.ed.gov/training/GMT0101000.htm.
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2. What changes am I able to make to my project and/or budget without prior ED approval?
Grantees are allowed a certain degree of flexibility to make post-award changes and budget revisions without prior approval. Section 74 of the Education Department General Administrative Regulations (EDGAR) generally permits grantees to undertake the following administrative actions without seeking approval from their program office. Usually the program office requires the grantee to provide a notification of the change, including supporting justification:
- Obligate funds for up to 90 days before the start date of the grant's performance period (EDGAR § 74.25(e)(1))
- Extend the project period one time at the end of the grant for a period of up to 12 months (EDGAR § 74.25(e)(2))
- Carry funds over from one budget period to the next (EDGAR § 74.25(e)(3))
- Transfer funds among budget line items (EDGAR § 74.25(f)).
If the change you wish to make is beyond these allowable administrative actions, you must contact ED for prior approval. Grantees are urged to review the sections in EDGAR relating to the type of change they wish to make.
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3. When I have to request project and/or budget changes that require prior approval from ED, how should I submit those changes? How does ED decide to approve or disapprove my request?
Proposed project and/or budget changes must be submitted in writing to your ED program officer. The proposal should include the following documents:
- Cover Letter providing overview of proposed changes and why they are necessary to the success of the project
- Revised Activity Narrative (if applicable)
- Revised Budget Summary (if applicable)
- Revised Individual Activity Budget Form (if applicable)
- Revised Activity Objectives and Anticipated Results (if applicable)
- Revised Implementation Strategy/Timetable Form (if applicable)
- Curriculum Vitae or Resume of New Project Director and/or Activity Director (if applicable).
Upon receipt of the written request, the program staff may contact grantees directly for clarification or additional information as needed.
All submitted requests for programmatic and/or budget changes are evaluated on a case-by-case basis. The decision to approve or disapprove a request is based on requirements imposed by applicable Federal statutes, including the General Education Provisions Act (GEPA), program legislation and regulations, EDGAR, and OMB circulars. All resulting costs and activities related to approved changes must be allowable. No official may authorize any administrative actions that conflict with any applicable Federal statute, program legislation or regulation, EDGAR, grant conditions; or permit changes that would alter the scope or objectives of a competitive discretionary grant.
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4. I have unspent and unobligated funds from a previous fiscal year. Can I carry them over into the current budget period and use them on an activity?
Section 74.25(e)(3) of EDGAR states that, "(e) Except for requirements listed in paragraphs (c)(1) and (c)(4) of this section, the Secretary may waive cost-related and administrative prior written approvals required by this part and OMB Circulars A-21 and A-122. These waivers may authorize recipients to do any one or more of the following: (3) Carry forward unobligated balances to subsequent funding years." Based on this regulation, you may carry-over funds however they can only be spent on approved activities listed in your application or other legislatively allowable activities.
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5. What is a Legislatively Allowable Activity (LAA)?
The legislatively allowable activities for Title VII, Part A programs are listed in Section 724 of the Higher Education Opportunity Act (HEOA) as amended, as well as OMB Circular A-21. If you are uncertain whether a proposed activity is legislatively allowable or not you should always contact your assigned program officer to inquire. They will issue a written response with a determination.
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6. What are the guidelines for drawing down funds for upcoming costs?
You are urged to read §74.22 of EDGAR to learn more about federal requirements related to grant payments. For any cash that you draw from your Department of Education grant account, you must:
- Draw down only as much cash as is necessary to meet the immediate needs of the grant project
- Keep to the minimum the time between drawing down the funds and paying them out for grant activities
- Return to the government the interest earned on grant funds deposited in interest-bearing bank accounts (except for a small amount of interest earned each year that your entity is allowed to keep to reimburse itself for administrative expenses)
In order to meet these requirements, you are urged to:
- Take into account the need to coordinate the timing of drawdowns with prior internal clearances (e.g., by boards, directors, or other officials) when projecting immediate cash needs so that funds drawndown from ED do not stay in a bank account for extended periods of time while waiting for approval
- Monitor the fiscal activity (drawdowns and payments) under your grant on a continuous basis
- Plan carefully for cash flow in your grant project during the budget period and review project cash requirements before each drawdown
- Pay out grant funds for project activities as soon as it is practical to do so after receiving cash from the Department.
Keep in mind that the Department monitors cash drawdown activity for all grants on a weekly basis. Department staff will contact grantees who appear to have drawn down excessive amounts of cash under one or more grants during the fiscal quarter to discuss the particular situation. Grantees that fail to follow federal cash management requirements may be designated as high-risk, which may affect future funding.
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7. Must our institution conduct an audit of our project every year?
Grantees that spend $500,000 or more in combined federal funds (regardless of agency) during fiscal years ending after December 31, 2003, or $300,000 or more in federal funds during fiscal years ended on December 31, 2003 or earlier, are required to have an annual institutional audit. Generally, these audits, referred to as "A-133 audits" or "single audits," review expenditures of federal funds across an entire organization instead of specific costs of individual grants. These audits must be conducted in accordance with "Standards for the Audit of Governmental Organizations, Programs, Activities and Functions," published by the Comptroller General of the Government Accountability Office (GAO). Independent non-federal auditors selected by the grantee may perform these audits. Grantees that fail to meet the A-133 audit requirement may be designated as high-risk, which may affect future funding.
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8. What is the matching funds requirement for endowments? When must the matching funds be raised?
According to the Higher Education Opportunity Act (HEOA) as amended, grant funds used for endowments must be matched in equal or greater amounts with funds from non-federal sources. In addition, no more than 20 percent of an annual grant award can be used to establish or increase an endowment fund at the institution.
If a grantee institution decides to use any of its grant funds for endowment purposes, it must match those grant funds immediately with non-federal funds when it places those funds into its endowment fund.
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9. What kinds of records do I need to keep?
You must keep records regarding the use of grant funds, compliance with program requirements, and the date the project used to demonstrate the effectiveness of the project in meeting the grant's objectives. Keep your copy of the approved application. The financial records must show the amount and source of all funds spent on the grant, including any matching funds that were promised in the approved application. The records must document how all federal and matching funds were used. You must also keep records that document other types of information you provided the Department in your annual or final reports, such as records of program participants and the source data used to report on performance measures.
If you purchase equipment with grant funds, you must maintain inventory records until the equipment is no longer needed to meet the project objectives, and then you should request disposition instructions from the Department. Keep copies of all correspondence with the Department regarding the project; GEPA (20 U.S.C. 31) and EDGAR regulations (34 CFR §75.730-732) provide specific requirements for record retention. You may need these records to demonstrate to program monitors or auditors that all expenditures and activities you conducted with the grant were allowable and accurately reported.
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10. Who do I contact if I have a problem with the G5 systems?
Help with G5 is available through e-mail or by calling the EDCAPS hotline.
Hours of Operation: 8:00 a.m. to 6:00 p.m., Monday-Friday, EST
Toll Free: (888) 336-8930
TTY: (866) 697-2696
Local: (202) 401-6238
E-mail: edcaps.user@ed.gov
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11. Where can I find the most up to date copy of the Code of Federal Regulations (CFR)?
The Code of Federal Regulations (CFR) can be accessed at http://www.gpoaccess.gov/cfr.
Hard copies of the CFR are often available in the reference section of major libraries. For information about purchasing the CFR, go to the Government Printing Office (GPO) online bookstore at http://bookstore.gpo.gov or call the Superintendent of Documents at (202) 512-1800 or toll free at (866) 512-1800.
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12. Where can I find the most recent edition of EDGAR?
A PDF version of EDGAR is available for download and printing at http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html.
The most recent regulations that comprise EDGAR can also be found in the Code of Federal Regulations. Please note that EDGAR comprises only Parts 74-99.
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13. Where can I find form-fillable editions of standard ED Grant Application and Reporting Forms?
Electronic versions of ED Grant Application and Other Forms are available at http://www2.ed.gov/fund/grant/apply/appforms/appforms.html.