Texas Even Start Administrative Manual
June 2004, (Revised January 2008)
Accountability
Fiscal
Allowable Costs
Allowable costs for Even Start programs are included in the Application
Guidelines. Part 1. General and Fiscal Guidelines, pages 9-11. A copy
of the text follows. An item must be an allowable expense to be reported
as local cost share. Additional detail can be found at
http://www.whitehouse.gov/omb/circulars/a021/a021.html.
eGrants Application Guidelines
Performance Assessment and Evaluation ) to TEA
within 30 days after the end of the project. The grantee is not in compliance
with grant conditions and requirements until such time as this report
is received by the TEA Project Administrator. Final payment may be withheld
pending receipt of the report. Eligibility of grantee to receive future
grants, including continuation grants, from TEA may be impacted by such
noncompliance.
Upon receipt of the written final expenditure report and other required
documents, such as the final evaluation report, TEA will enter the
final cumulative expenditures and make the final payment to the grantee.
eGrant
Information at TEA
Fiscal Guidelines
- To ensure compliance with required accounting procedures, all
applicants are strongly encouraged to consult with their business
office prior to submitting the application regarding
the assignment of budgeted items to the proper class-object codes.
Advance coordination with the business office will expedite negotiation
and processing of the application.
- The applicant must maintain a financial management system that
provides for accurate, current, and complete disclosure of the financial
results of each grant project. The financial management system records
must adequately identify the source and application of funds and
must contain information pertaining to grant awards, authorizations,
obligations, unobligated balances, assets, outlays (i.e., expenditures),
income and interest.
- Budgeted expenditures will be shown by class-object code. School
districts, open enrollment charter schools, and ESCs are required
to maintain records on all expenditures by budget function, class-object
code, and year of entitlement (appropriation), in accordance with
the provisions of the Financial Accountability System Resource
Guide. Detail of the form BS6000 Budget Summary will
be shown on budget support forms BS6100, BS6200, BS6300, BS6400,
BS6500, and BS6600 and BS6629, as appropriate.
Do not enter zeros (.00) or cents (.37) in the budget figures. Use
whole dollar amounts only (e.g. $1,970).
- Fiscal control and accounting procedures must permit the tracing
of funds to a level of expenditure adequate to establish that funds
have been used in accordance with the approved grant application.
The applicant must maintain effective control over and accountability
for all funds, property, and other assets.
Funds requested must only be for those items that are reasonable
and necessary for accomplishing the objectives of the program and for
implementing activities as described in the application.
A. Reasonable and Necessary
Reasonable costs are consistent with prudent business practice and
comparable to current market value. Necessary costs are essential to
accomplish the objectives of the project. All items requested must
be allowable expenditures under the authorizing program statutes, regulations,
and rules. In general, the budget forms must evidence that:
- Project costs are reasonable in relation to expected outcomes:
- the amount requested might realistically be expected to have
an impact on the stated needs,
- and the expected outcomes are sufficient to justify the amounts
requested;
- The program will identify and coordinate funding from several sources;
and e-Grants
- All expenditures are pertinent to and appropriate for the objectives
and activities stated.
B. Allowable
To be allowable, costs must meet the following criteria:
- Be reasonable for the performance of the grant and be allocable
under the applicable cost principles;
- Conform to limitations or exclusions set forth in applicable cost
principles or the grant agreement as to types or amount of costs;
- Be consistent with policies and procedures that apply uniformly
to federally funded activities and activities funded from other sources;
- Be accorded consistent treatment among all grant programs, regardless
of funding source;
- Be determined in accordance with generally accepted accounting
principles (GAAP);
- If federal, not be included as cost or used to meet cost-sharing
or matching requirements of any other federally-funded program in
the current or a prior period; and
- Not be used for lease/purchases (i.e., debt service). Refer to Part
2: Program Guidelines for additional guidance pertaining to
allowable and unallowable costs.
C. Reasonable
Determine the reasonableness of a cost
by considering whether:
- The cost is of a type generally recognized as ordinary and necessary
for operation of the organization or grant performance;
- Restrictions or requirements are imposed for generally accepted
sound business practices, arms length bargaining, federal /state
laws and regulations, grant award terms and conditions;
- Individuals acted with prudence in the circumstances of responsibility
to the organization, its members, employees, clients, the public,
and federal government; and
- There are significant deviations from established practices of
the organization which may unjustifiably increase grant costs.
D. Allocable Costs
- A cost is allocable to a particular grant in accordance with the
relative benefits received and if it is treated consistently with
other costs incurred for the same purposes in like circumstances
and if it:
- Is incurred specifically for the grant;
- Benefits both the grant and other work and can be distributed
in reasonable proportion to the benefits received; and it
- Any cost allocable to a particular grant or other cost objective
may not be shifted to other federal awards to overcome funding
deficiencies, or to avoid restrictions imposed by law or by the
terms of the grant award.
Consult the form and instructions for CS7000 – Provisions,
Assurances, and Certifications to determine the applicable cost
principles and with the document General Guidelines Applicable
To All Cost Principles to determine allowability of certain
costs. Always consult the original applicable circular pertaining
to cost principles for the full text. OMB Cost Principle Circulars
include:
A-87 State, Local, and Indian Tribal Governments
http://www.whitehouse.gov/omb/circulars/a087/a087-all.html
A-21 Educational Institutions, including Institutions of Higher Education
http://www.whitehouse.gov/omb/circulars/a021/a021.html
A-122 Nonprofit Agencies
http://www.whitehouse.gov/omb/circulars/a122/a122.html
- All encumbrances, expenditures, and obligations of funds for this
program must occur on or after the effective date of this application
and within the grant beginning and ending dates listed on the Notice
of Grant Award (NOGA). All goods must be received and all services
must be rendered between the beginning and ending dates of the project
as specified in the “Project Period” section in Application
Guidelines – Part 2: Program Guidelines. An encumbrance,
accounts payable, and an expenditure, as with all other project accounting
terms, will be as defined in the Financial Accountability System
Resource Guide.
- Funds granted through this project must be used for those purposes
described in the Program Purpose, Goals, and Description,
and Project Requirements sections of Part 2 of this application.
Applicants may elect to use additional resources and other sources
of financial support to help maximize the effectiveness of the project
goals and objectives.
- The applicant must commence and perform project activities according
to the time lines described in the application. Failure to do so
may result in reduction and reallocation of funds.
- Project funding will be based on appropriation by the authorized
governmental body and on general budget approval by the commissioner
of education, the state legislature, or U. S. Congress, as applicable.
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