Perkins Policies & Procedures

Introduction

This guidance manual explains the policies, guidance, and procedures for the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins IV or the Act). This manual pertains principally to college entities that comprise the North Carolina Community College System (NCCCS). 

Additional resources for compiling this guide are from the Education Department General Administrative Regulations (EDGAR) 2nd Edition, and The 2007 – 2013 (extended to 2016) North Carolina State Plan. 

Contact Information 

If you have questions that cannot be answered by this guidebook, please contact your CTE Program Coordinator

Programmatic Aspects of the Perkins Grant

Framework of the Federal Statute & Purpose

The purpose of the Perkins Act is to develop more fully the academic and career and technical skills of secondary education students and NCCCS students who elect to enroll in career and technical education programs, by— 

1. Building on the efforts of States and localities to develop challenging academic and technical standards and to assist students in meeting such standards, including preparation for high skill, high wage, or high demand occupations in current or emerging professions; 
   
   
2. Promoting the development of services and activities that integrate rigorous and challenging academic and career and technical instruction, and that link secondary education and NCCCS education for participating career and technical education students; 
   
   
3. Increasing State and local flexibility in providing services and activities designed to develop, implement, and improve career and technical education, including tech prep education; 
   
   
4. Conducting and disseminating national research and disseminating information on best practices that improve career and technical education programs, services, and activities; 
   
   
5. Providing technical assistance that; ‘‘(A) promotes leadership, initial preparation, and professional development at the State and local levels; and ‘‘(B) improves the quality of career and technical education teachers, faculty, administrators, and counselors; 
   
   
6. Supporting partnerships among secondary schools, NCCCS institutions, baccalaureate degree granting institutions, area career and technical education schools, local workforce investment boards, business and industry, and intermediaries; 
   
   
7. Providing individuals with opportunities throughout their lifetimes to develop, in conjunction with other education and training programs, the knowledge and skills needed to keep the United States competitive.
   

Respective Role of State Eligible Agency

Perkins IV requires the state to designate a sole state agency (eligible agency) to be responsible for the funds. In Alabama, the State Department of Education (SDE) is the state eligible agency. SDE acts as the fiscal agent for all Perkins grant funds and operates under the authority of the State Board of Education (SBE). In accordance with the State Plan for Perkins IV, SDE negotiates a split each year of the Perkins allocation for activities at the ACCS level. Each state seeking funding under Title I submitted a five year plan to the U.S. Secretary of Education. Alabama submitted a complete six-year plan for FY 2007- 2013. A copy of the current state plan is available on the ACCS Web site. 

The NCCCS allocates funds to colleges, and if applicable, consortia of colleges, based on the number of CTE students receiving Pell grant at the college during the previous reporting year (or in the case of incarcerated students, those who would otherwise be Pell-eligible). Colleges submit an annual College Plan for Career and Technical Education, which serves as the application and extension for Perkins IV Basic Grant funds. 

Organizational Structure and Functions

Alabama State Department of Education (SDE) is the State Eligible Agency (SEA) and acts under the supervisory authority of the Alabama State Board of Education (SBE) and is chaired by the Governor of Alabama. Therefore, the Governor and the SBE are ultimately responsible for the Perkins funds appropriated to Alabama each year. 
SDE is the fiscal agent for Perkins funds and is the principal Electronic Data Collection point for Alabama. The strategies and data used in the ACCS CTE program are designed to assist students to meet or exceed the negotiated levels of performance and are evaluated annually. All ACCS institutions provide annual data required for federal reporting using the methods as prescribed by ACCS and SDE (See ACCS Web site for reporting procedures). Funding may be withheld if required data is not reported in an accurate and timely manner. 

Levels of CTE Students

There are two levels of Postsecondary CTE students for the purpose of Perkins. 

1. Participant – Students who have earned one (1) or more credits in any CTE program area. NOTE: This includes students with a declared major other than CTE who are participating in a CTE course.
   
   
2. Concentrator – A student who: (1) completes at least 12 academic or CTE credits within a single program area sequence that is comprised of 12 or more academic and technical credits and terminates in the award of an industry-recognized credential, a certificate, or a degree; or (2) completes a short-term CTE program sequence of less than 12 credit units that terminates in an industry-recognized credential, a certificate, or a degree.
   

Allocation of Federal Funds

Community colleges and consortia of community colleges offering (CTE) programs are eligible for Perkins funds provided that the funding to be allocated through the formula funding process is not less than $50,000.  Funding is based on the number of CTE students receiving Federal Pell Grant Assistance and/or recipients of assistance from the Bureau of Indian Affairs (BIA).  The formula, as dictated by the Act, is as follows:

Community colleges not meeting the minimum of $50,000 through the above formula are not eligible to receive an allotment.  They may, however, form a consortium with another community college. One college will be the fiscal agent. The consortium receives the total amount both colleges generated and the colleges plan their budget together based on individual needs. Contact the Director of CTE at the System Office for more information.

In March or April, a Pell Grant Verification Form is sent to the Perkins contact at each college.  These are the numbers used in the formula process so it is important to have accurate numbers.  Usually, Financial Aid staff assists in collecting this information.

Use of Funds at the State Level

Administration

Up to 5 percent of the state funds are set aside for administration of the State Plan. ACCS works with SDE to determine how much of the set-aside is provided to ACCS. ACCS receives a portion of this 5 percent set-aside of Perkins funds received by SDE in a formal Memorandum of Agreement (MOA). Administrative funds are used at ACCS for the following costs: Developing the State plan; reviewing a local plan; oversight for monitoring and evaluating program effectiveness; assuring compliance with all Federal laws; providing technical assistance; reporting of all data required and supporting and developing State data systems relevant to the provisions of the Perkins Act. There is a matching requirement under the administration allocation. The state must match, with non-federal funds and on a dollar-for-dollar basis, all Perkins funds spent on administration.

Leadership 

We need to add a blurb about leadership grants

Required Use of State Leadership Funds

There are specific Mandatory leadership activities for which leadership funds under Perkins must be used. These activities include: 

1. Develop and implement assessment of the CTE programs funded by Perkins, including an assessment of how the needs of special populations are being met and how the CTE programs are designed to enable special populations to meet the state adjusted levels of performance and prepare the special populations for further education, training or for highskill, high-wage, or high-demand occupations. 
   
   
2. Develop, improve, or expand the use of technology in CTE that may include: 
   

• Training of CTE teachers, faculty, career guidance and academic counselors, and administrators to use technology, including distance learning. 
• Providing CTE students with the academic and career and technical skills (including mathematics and science knowledge that provides a strong basis for such skills) that lead to entry into technology fields, including nontraditional fields; or 
• Encouraging schools to collaborate with technology industries to offer voluntary internships and mentoring programs. 

1. Provide professional development programs to CTE teachers, faculty, administrators, career guidance and academic counselors who are involved in integrated CTE programs; 
   
   
2. Provide programs that strengthen the academic and career and technical skills of CTE students participating in CTE programs; 
   
   
3. Prepare students for nontraditional fields in current and emerging professions, and other activities that expose students, including special populations, to high-skill, high-wage occupations; 
   
   
4. Support partnerships among local educational agencies, institutions of higher education, adult education providers, and as appropriate, employers, labor organizations, intermediaries, parents, and local partnerships which allow students to achieve academic state standards, and CTE skills or complete a program of study;
    
   
5. Support state correctional institutions and institutions that serve individuals with disabilities; 
   
   
6. Prepare special populations for high skill, high wage, or high demand occupations; 
   
   
7. Provide technical assistance for eligible colleges; The activities listed above are the specific mandatory activities provided in the Perkins statute.

Permissible Use of State Leadership Funds

In addition to the mandatory uses listed above, there are also a number of permissive uses. NCCCS may spend its leadership funds on the activities described below: 

1. Improve career guidance and academic counseling and programs that will encourage NCCCS students to graduate with a diploma or a degree, and expose students to high-skill, high-wage occupations and non-traditional fields; 
   
2. Establish articulation agreements between secondary and NCCCS programs; 
   
3. Support for initiatives to facilitate the transition of subbaccalaureate career and technical education students into baccalaureate degree programs; 
   
4. Support for career and technical student organizations, especially with respect to efforts to increase the participation of students who are members of special populations; 
   
5. Support for public charter schools operating career and technical education programs; 
   
6. Support for career and technical education programs that offer experience in, and understanding of, all aspects of an industry for which students are preparing to enter;
   
7. Support for family and consumer sciences programs; 
   
8. Support for partnership between education and business, including adjunct faculty arrangements; 
   
9. Support to improve or develop new career and technical education courses and initiatives, including career clusters, career academies, and distance education, that prepare individuals academically and technically for high skill, high wage, or high demand occupations; 
   
10. Awarding incentive grants to eligible colleges; 
    
11. Support entrepreneurship education and training; 
    
12. Coordinate secondary CTE programs for adults and school drop outs under the Adult Education and Family Literacy Act; 
    
13. Providing assistance to individuals, who have participated in services and activities under this title, in continuing the individuals’ education or training or finding appropriate jobs, such as through referral to the system established under section 121 of Public Law 105– 220; 
    
14. Developing valid and reliable assessments of technical skills; 
    
15. Developing and enhancing data systems to collect and analyze data on academic and employment outcomes; 
    
16. Improve recruitment and retention of CTE teachers, faculty, administrators, and career guidance and academic counselors and transition to teaching from business and industry; 
    
17. Support CTE programs that offer experience in, and understanding of, all aspects of an industry;

Reserve Funds

Pursuant to section 112(a)(1) of the Perkins Act, a state may reserve not more than 10 percent of the 85 percent of Perkins pass through funds to make grant awards to eligible colleges to carry out the activities enumerated in section 135 (local uses of funds). NCCCS may take advantage of this optional set-aside through ACCS’s administration of the reserve funds.  NCCCS may allocate the 10 percent reserve on a competitive basis by issuing Requests for Proposals and soliciting responsive bids for eligible colleges.

Local Use of Funds

This section provides for the specific uses of funds for which a college is authorized to spend its Perkins allocation, and how much must be spent toward each use. Each college that receives Perkins funds shall use the funds to improve career and technical education programs.

Administration

Colleges are not authorized funding for administrative expenses without prior approval from ACCS. As required by the Perkins Act section 135(d), a college may not use more than 5 percent of its sub-grant for administrative expenses. Administrative activities are those activities necessary for the effective and efficient performance of the eligible college’s duties under Perkins, including the supervision of such activities. Any cost that supports the management of the Perkins program is administrative in nature. Examples of allowable administrative costs include, but are not limited to, the salary costs associated with the development of the local application plan. Administrative costs must be tracked separately from program costs. Federal Perkins funds may be used for salaries only if supporting program improvement and have prior approval from ACCS. Colleges must follow 2 CFR Part 200.430 for Compensation-Personal Services (Time and Effort).

Program Activities

In accordance with the Perkins Act of 2006, Section 135, “Local Use of Funds”; these funds made available to eligible colleges under this part shall be used to support career and technical education programs. Colleges must address all required uses of funds before permissible uses. The Office of Career, Technical, and Adult Education (OCTAE) policy is that while a recipient must demonstrate that they are complying with all mandatory uses, the recipient does not have to use federal Perkins funds to satisfy all required uses. See OCTAE Non-Regulatory Guidance, version 1.0, Question D.11 (Jan 9, 07) online at the Perkins Collaborative Resource Network at: http://cte.ed.gov/docs/nonregulatory/answers.pdf.

Required Uses of Funds

Colleges must use Perkins basic grant funds to: 

1. Strengthen the academic and career and technical skills of students participating in career and technical programs, by strengthening the academic and career and technical education components of such programs through the integration of academics with career and technical education programs through a coherent sequence of courses. 
   
• the core academic subjects; and 
• the career and technical education subjects; 
  
  
2. Link career and technical education at the secondary level and career and technical education at the NCCCS level, including by offering the relevant elements of not less than 1 career and technical program of study. 
   
   
3. Provide students with strong experience in and understanding of all aspects of an industry, which may include work-based learning experiences; 
   
   
4. Develop, improve, or expand the use of technology in career and technical education, which may include:
• training of career and technical education teachers, faculty, and administrators to use technology, which may include distance learning. 
• providing career and technical education students with the academic and career and technical skills (including the mathematics and science knowledge that provides a strong basis for such skills) that lead to entry into the technology fields; or provides a strong basis for such skills) that lead to entry into the technology fields; or 
• encouraging schools to collaborate with technology industries to offer voluntary internships and mentoring programs, including programs that improve the mathematics and science knowledge of students; 
  
  
5. Provide professional development programs for secondary and NCCCS teachers, faculty, administrators, and career guidance and academic counselors who are involved in integrated career and technical education programs, including: 
• in-service and preservice training on: 
• effective integration and use of challenging academic and career and technical education provided jointly with academic teachers to the extent practicable; 
• effective teaching skills based on research that includes promising practices; 
• effective practices to improve parental and community involvement; and 
• effective use of scientifically based research and data to improve instruction; 
• support of education programs for teachers of career and technical education in public schools and other public school personnel who are involved in the direct delivery of educational services to career and technical education students, to ensure that such teachers and personnel stay current with all aspects of an industry; 
• internship programs that provide relevant business experience;  
• programs designed to train teachers specifically in the effective use and application of technology to improve instruction; 
  
  
6. Develop and implement evaluations of career and technical education programs carried out with funds under this title, including an assessment of how the needs of special populations are being met; 
   
   
7. Initiate, improve, expand, and modernize quality career and technical education programs, including relevant technology; 
   
   
8. Provide services and activities that are of sufficient size, scope, and quality to be effective; and 
   
   
9. Provide activities to prepare special populations, including single parents and displaced homemakers who are enrolled in career and technical education programs for high skill, high wage, or high demand occupations that will lead to self-sufficiency.
   

Permissive - Colleges may use Perkins basic grant funds: 

1. To involve parents, businesses, and labor organizations as appropriate, in the design, implementation, and evaluation of career and technical education programs authorized under this title, including establishing effective programs and procedures to enable informed and effective participation in such programs; 
   
   
2. To provide career guidance and academic counseling, which may include information for students participating in career and technical education programs, that— (a) improves graduation rates and provides information on NCCCS and career options, including baccalaureate degree programs, for secondary students, which activities may include the use of graduation and career plans; and (b) provides assistance for NCCCS students, including for adult students who are changing careers or updating skills; 
   
   
3. For local education and business (including small business) partnerships, including for—
   • work-related experiences for students, such as internships, cooperative education, to career and technical education programs;
   • adjunct faculty arrangements for qualified industry professionals; and 
   • industry experience for teachers and faculty;
   
   
4. To provide programs for special populations;
   
   
5. To assist career and technical student organizations; 
   
   
6. For mentoring and support services; 
   
   
7. For leasing, purchasing, upgrading or adapting equipment, including instructional aids and publications (including support for library resources) designed to strengthen and support academic and technical skills achievement; 
   
   
8. for teacher preparation programs that address the integration of academic and career and technical education and that assist individuals who are interested in becoming career and technical education teachers and faculty, including individuals with experience in business and industry; 
   
   
9. To develop and expand NCCCS program offerings at times and in formats that are accessible for students, including working students, including through the use of distance education; 
   
   
10. To develop initiatives that facilitate the transition of subbaccalaureate career and technical education students into baccalaureate degree programs, including:
    • articulation agreements between sub-baccalaureate degree granting career and technical education NCCCS educational institutions and baccalaureate degree granting NCCCS educational institutions;
    • NCCCS dual and concurrent enrollment programs;
    • academic and financial aid counseling for sub-baccalaureate career and technical education students that informs the students of the opportunities for pursuing a baccalaureate degree and advises the students on how to meet any transfer requirements; and
    • other initiatives: 
    • to encourage the pursuit of a baccalaureate degree; and 
    • to overcome barriers to enrollment in completion of baccalaureate degree programs, including geographic and other barriers affecting rural students and special populations; 
      
      
11. To provide activities to support entrepreneurship education and training; 
    
    
12. For improving or developing new career and technical education courses, including the development of new proposed career and technical programs of study for consideration by the eligible agency and courses that prepare individuals academically and technically for high skill, high wage, or high demand occupations and dual or concurrent enrollment opportunities by which career and technical education students at the secondary level could obtain NCCCS credit to count towards an associate or baccalaureate degree;
    
 

13. To develop and support small, personalized career-themed learning communities; 
    
    
14. To provide support for family and consumer science programs; 
    
    
15. To provide career and technical education programs for adults and school dropouts to complete the secondary school education, or upgrade the technical skills, of the adults and school dropouts; 
    
    
16. To provide assistance to individuals who have participated in services and activities under this Act in continuing their education or training or finding an appropriate job, such as through referral to the system established under section 121 of Public Law 105-220 (29 U.S.C. 2801 et seq.); 
    
    
17. To support training and activities (such as mentoring and outreach) in non-traditional fields; 
    
    
18. To provide support for training programs in automotive technologies; 
    
    
19. To pool a portion of such funds with a portion of funds available to not less than 1 other eligible recipient for innovative initiatives, which may include:
• improving the initial preparation and professional development of career and technical education teachers, faculty, administrators, and counselors;
• establishing, enhancing, or supporting systems for:
• accountability data collection under this Act; or ii. reporting data under this Act;
• implementing career and technical programs of study described in section 122(c)(1)(A); or
• implementing technical assessments; and 
• To support other career and technical education activities that are consistent with the purpose of this Act.

Additional NCCCS Requirements

In addition to the statutory requirements outlined above, NCCCS has additional requirements that colleges must adhere to, as follows:

1. If a college did not meet 90 percent of the agreed upon performance levels for a performance indicator, the college must indicate in their Perkins budget how funds will be used to correct the performance in that category. NOTE: Colleges may use college funding sources in lieu of Perkins funds or combine Perkins funding with other college funding to address deficiencies, so long as the combination of funds do not violate federal, state, NCCCS funding rules.
   
   
2. As Perkins funds are intended to be used for the improvement of CTE programs, generally, a college should not use Perkins funds on the same activity for more than three years.
   
   
3. No more than 10% per fiscal year of Federal Perkins funds may be used for salaries by colleges for instructors for the first two years of starting a new CTE program. NOTE: Prior approval must be obtained from ACCS for salaries. When the new program begins its third year, it is considered established and therefore self-sustaining. Time and effort records must be maintained and copies forwarded with the monthly request for reimbursement. (Ref: CFR 200.430)

Permissible Expense FAQ

The grant college should consider the following questions to determine if an activity is eligible for Perkins funding: 

1. Does the activity address a core indicator area that is deficient?
   Colleges not meeting at least 90% of the target for the core indicator must provide a performance improvement plan with their annual Perkins report and indicate specified funding in their annual Perkins budget to address any core indicator deficiencies. Colleges may use college funding sources in lieu of Perkins funds or combine Perkins funding with other college funding to address deficiencies, so long as the combination of funds do not violate federal, state, NCCCS funding rules. 
   
   
2. Is the activity a new or does it improve or expand an existing program?
   In general, the institution must use federal funds to improve career and technical education programs. This means that eligible colleges must target the limited federal dollars for new or improved activities. NOTE: Colleges must use funds for program improvement and expansion, and not to maintain existing activities. Consumable supplies are considered unallowable under this definition. 
   
   
3. Does this activity address “Required Uses” of Perkins funds (Perkins Act, Section 135)?
   The institution must address all required uses of funds with either Perkins or non-Perkins dollars. The college’s activities collectively must meet all the required usage categories. 
   
   
4. Is the activity of sufficient size and scope as to effectively impact performance measures?
   Attention must be applied to ensure the program meets high wage, high skill, or high demand professions. Programs must further lead to awards and/or credentials necessary for entry and success in the targeted profession. Documentation must be provided to this effect. 
   
   
5. How long has Perkins funded the activity?
   Perkins funds should only support an activity for three years. 
   
   
6. Was the activity funded during the previous year by Perkins or the institution?
   Perkins funds may not be used to continue an activity funded by non-Perkins funds the previous year. That would be supplanting which is expressly prohibited by law. 
   
   
7. Is the activity required by federal, state or local law?
   If so, this would be supplanting and would not be eligible for funding. 
   
   
8. Is there data to support the identified need for the proposed activity and can the impact of Perkins funding be measured?
   How Perkins funds are used must be supported by data at the program level and the institution must have the capacity to measure improvement attained as a result of the use of Perkins funds. If an activity cannot be measured, it cannot be funded with Perkins funds.
   

Accountability Requirements

State Performance Measures (Core Indicators)

The state and local levels of performance are in accordance with the Final Agreed Upon Performance Levels (FAUPL) designated by OCTAE annually. Colleges report their performance based on these target levels. Target levels for core indicators are on the ACCS Web site. Core indicators for ACCS Education are:

Local Plans

In accordance with The Perkins legislation, Section 134(b)(1) through (12), colleges must conduct certain activities. The following activities and requirements must be addressed in accordance with the Act. Provide a brief concise narrative for each of the following.

Local Application

1. Describe how the CTE programs required under Section 135(b) will be carried out with funds received under this title.
2. Describe how the CTE activities will be carried out with respect to meeting state and local levels of performance established under Section 113 (Accountability/Core Indicators).
   
3. Describe how the eligible recipient (college) will:
• Offer the appropriate courses of not less than one CTE program of study.
• Improve the academic and technical skills of students participating in CTE programs by strengthening the academic and CTE components of such programs through the integration of coherent and rigorous content aligned with challenging academic standards and relevant CTE programs to ensure learning in:
• Provide students with strong experience in, and understanding of, all aspects of an industry.
  
• Ensure that students who participate in such CTE programs are taught to the same coherent and rigorous content aligned with challenging academic standards as are taught to all other students.
  
• Encourage career and technical education students to enroll in rigorous and challenging academic subjects.
  
4. Describe how comprehensive professional development (including initial teacher preparation) for CTE, academic, guidance, and administrative personnel will be provided that promotes the integration of coherent and rigorous content aligned with challenging academic standards and relevant CTE (including curriculum development).
5. Describe how parents, students, academic and CTE teachers, faculty, administrators, career guidance and academic counselors, representatives of tech prep consortia (if applicable), representatives of the entities participating in activities described in Section 117 (Workforce Investment Act), Public Law 105-220 (if applicable), representatives of business (including small business) and industry, labor organizations, representatives of special populations, and other interested individuals are involved in the development, implementation, and evaluation of CTE programs assisted under this title, and how such individuals and entities are effectively informed about, and assisted in understanding the requirements of this title, including CTE programs of study.
6. Provide assurances that the eligible recipient (college) will provide a CTE program that is of such size, scope, and quality to bring about improvement in the quality of CTE programs.
7. Describe the process that will be used to evaluate and continuously improve the performance of the eligible recipient.
8. Describe how the eligible recipient (college) will:
• Review CTE programs, and identify and adopt strategies to overcome barriers that result in lowering rates of access to, or lowering success in the programs, for special populations.
• Provide programs that are designed to enable the special populations to meet the local adjusted levels of performance.
• Provide activities to prepare special populations, including single parents and displaced homemakers, for high-skill, high-wage, or high-demand occupations that will lead to self-sufficiency.
9. Describe how individuals who are members of special populations will not be discriminated against on the basis of their status as members of the special populations.
10. Describe how funds will be used to promote preparation for non-traditional fields.
11. Describe how career guidance and academic counseling will be provided to CTE students, including linkages to future education and training opportunities.
12. Describe efforts to improve:
• The recruitment and retention of CTE teachers, faculty, and career guidance and academic counselors, including individuals in groups underrepresented in the teaching profession.
• The transition to teaching from business and industry.
13. The plan must include the recipient’s strategy for the grant award for the upcoming year. During the planning process, the following should be reviewed to determine potential activities for Perkins funding:
• Local five-year plan and institutional needs;
• Usage categories in Section 134 of the Perkins Act;
• Low performance areas and associated core indicator areas that could be improved;
• Institutional data regarding student achievement;
• Feedback from program instructors, advisory councils and/or the business community; and
• Special population performance.

Modification to Plan and Application

Changes to a college’s 5 year plan are driven by a number of factors including, but not limited to, local business and industry input, student needs, and previous performance of measures of core indicators. Generally these changes are reflected in the annual college Perkins performance report.

This annual report reflects performance in relation to the core indicators. It serves as the college’s annual application for Perkins funds. Colleges must reflect in their report a plan for improving any core indicator below the adjusted level of performance and any funds directed at improvement.

NCCCS serves as the approval authority for Annual Modification to Plan and Application. NCCCS will notify colleges of approval or need for modification.

The current five year plans submitted by the colleges, pertaining to Perkins IV, expired in 2013. Colleges will submit a College Plan for Career and Technical Education, which serves as the Application for Perkins IV Basic Grant funds. This plan is contained within the annual report submitted to ACCS reflecting Perkins activities during the preceding Perkins reporting year. Additional revisions may be directed as necessary to changes in the Perkins law or other directions from OCTAE.

Programmatic Fiscal Requirements

Mandatory Disclosures

Supplementing Versus Supplanting

In accordance with the Perkins Act of 2006, Section 311 (a), funds made available under the Act must supplement and not supplant non-federal funds expended to carry out CTE activities. In other words, federal Perkins funds may only be used in addition to funds already spent by the state and colleges on CTE, and cannot be used in place of non-Perkins funds.

1. It will be presumed that supplanting has occurred where:
• NCCCS or one of the colleges uses Perkins funds to provide services that NCCCS or one of the colleges is required to make available under another federal, state, or local law; or
• NCCCS or one of the colleges uses Perkins funds to provide services that NCCCS or one of the colleges provided with non-Perkins funds in the prior year; or
• NCCCS or one of the colleges provides services for non-CTE students with non-federal funds, and provides the same services to CTE students using Perkins funds.
2. These presumptions are rebuttable if NCCCS or one of the colleges can demonstrate that it would have not been provided the services in question with non-Perkins funds had the Perkins funds not been available.
3. If presumed supplanting occurred, due to a significant reduction in non-federal funds or a change in the state’s priorities, NCCCS and/or the college will develop and maintain contemporaneous written documents, such as meeting minutes and/or itemized budget documents for one year to the next, demonstrating that the decision to not fund an activity with state or local funds was made without regard to the availability of Perkins funds. If NCCCS or a college uses Perkins funds to support activities that otherwise would be funded with state or local funds, the activities funded must be allowable under Perkins.
4. NCCCS provides technical assistance and training on supplanting as needed. If you are a college who has questions or concerns regarding supplanting or any other Perkins matters, please contact the Director for Career and Technical Education.

Monitoring

Colleges selected for on-site monitoring are determined by a number of risk factors to include but not limited to:

• Failure to meet Perkins core indicator levels for 2 or more consecutive years;
  
• Significant deficiency in any Perkins core indicators;
  
• Newly assigned key personnel affecting Perkins budgeting or control of Perkins resources
  
• Significant amounts of Perkins funds received
  
• Other factors requiring an on-site monitoring visit as determined by the NCCCS Director of CTE
  

Fiscal Grant Management

Compliance with EDGAR

EDGAR establishes rules that apply to all education programs. Secondary to the Perkins Act itself, EDGAR is a primary reference for this guidebook. EDGAR regulations include, but are not limited to such issues as application procedures, financial administration, property management, records retention, lobbying and oversight. SDE, ACCS and colleges are subject to all applicable areas of the EDGAR. This guidebook includes excerpts from these publications; however, users should become familiar with both of the complete basic documents that apply to them. (Ref: 2 CFR Part 200, Subpart D- Post Federal Award Requirements)

Overview of Financial Management/Accounting Systems

1. North Carolina accounts for Perkins grant funds in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees, must be sufficient to:
2. Permit preparation of reports required by the statutes of the grant, and
3. Permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes.
4. North Carolina's financial management systems of grantees and sub-grantees meets the following standards:
• Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the requirements of the grant or sub-grant.
• Accounting records. Grantees and sub-grantees must maintain records which adequately identify the source and application of funds provided for CTE activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.
• Internal control. Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub- grantees must adequately safeguard all such property and must assure that it is used solely for authorized purposes.
• Budget control. Actual expenditures must be compared with budgeted amounts for each grant or sub-grant. Financial information must be related to performance or productivity data.
• Allowable cost. 2 C.F.R. Part 200; 200.404, Reasonable Costs and 200.405, Allocable Costs and ACCS policy and procedures contained herein, and the terms of grant and sub-grant agreements will be followed in determining the reasonableness, costs allowable, and allocable.
• Source documentation. Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records, contract and sub-grant award documents, etc.
5. NCCCS may review the adequacy of the financial management system of any sub-grantee as part of a pre-award review or at any time subsequent to award.

College Perkins Budgets

Colleges must have clearly defined and documented processes as part of their respective policy guidelines for budgeting. The college’s Perkins Budget has seven primary categories. Colleges must align funds for each category with Perkins core indicators. Institutions must establish accounts consistent with these categories so that Perkins funds can be properly identified and required reports submitted. Expenses should be accounted for by category according to federal program guidelines and the guidelines of the individual institution. Copies of all budget forms are available on the NCCCS Moodle site. Budgeted items must comply with EDGAR. Budget category descriptions are:

1. Capitalized Equipment - Equipment purchased costing more than $5,000. Must show evidence which CTE programs it is benefiting.
2. Non-Capitalized Equipment (and significant technological items) - Equipment purchased costing more than $500 and less than $5,000. Must show evidence which CTE programs it is benefiting.
3. Non-Consumable Supplies – Items (other than equipment) that are used in CTE programs that provides assistance in the instructional area. These items must benefit all students in that particular program. NOTE: This includes computing devices.
4. Travel – Perkins related travel and mileage reimbursement for conferences, for staff going to schools, businesses, other local entities, professional development, etc.
5. Purchased Services - Expenditures for contractual services obtained from consultants or others not employed by the institution are recorded in this section.
6. Salaries/Benefits - Regular Employee Salaries and Benefits. Note: Includes salaries and benefits for personnel performing direct services for an activity. A timesheet must be maintained for each employee paid. Perkins funds may be used for faculty salaries and benefits for startup programs not to exceed two years. See Section VI, C. 3. for specific information.
7. Other items - Items that do not fit in any of the categories above (i.e. software, reference manuals, training modules, maintenance agreements, memberships in professional organizations, etc.). These must meet the allowable expenses set by the Perkins Act.

Annual Budget Review and Approval Process

Changes to Budgets

1. Relation to cost principles. The cost principle requirements of EDGAR 2 C.F.R. PART 200 apply.
2. Budget changes — Colleges shall obtain the prior approval of NCCCS whenever any of the following changes is anticipated under Perkins grant award: (a.) any revision which would result in the need for additional funding. (b.) unless waived by the awarding agency, cumulative transfers among direct cost categories, or, if applicable, among separately budgeted programs, projects, functions, or activities which exceed or are expected to exceed ten percent of the current total approved budget, or funding in a subcategory is insufficient, and shall be accompanied by a narrative justification for the proposed revision.
3. Construction projects. Construction projects using Perkins funding is typically unauthorized by sub-grantees. Renovation to an existing structure for the purpose of installing CTE training equipment may be permitted, however sub-grantees shall obtain prior written approval.
4. Programmatic changes. Colleges must obtain the prior approval of NCCCS whenever there are any revision of the scope or objectives of the program.

NOTE: Final budget amendments for the current fiscal year must be submitted no later than July 31st. Any amendments past this date may not be approved.

Program Income

Basic Cost Principles

Factors Affecting Allowability of Costs

Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards:

• Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
• Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
• Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the college.
• Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
• Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part.
• Not to be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. See also § 200.306 Cost sharing or matching paragraph (b).
• Be adequately documented. See also §§ 200.300 Statutory and national policy requirements through 200.309 Period of performance of this part.

Reasonable Costs

A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when the college is predominantly federally-funded. In determining reasonableness of a given cost, consideration must be given to:

• Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the college or the proper and efficient performance of the Federal award.
• The restraints or requirements imposed by such factors as: sound business practices; arm's- length bargaining; Federal, state and other laws and regulations; and terms and conditions of the Federal award.
• Market prices for comparable goods or services for the geographic area.
• Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the college, its employees, where applicable its students or membership, the public at large, and the Federal government.
• Whether the college significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost.

Allocable Costs

1. A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost:
• Is incurred specifically for the Federal award;
• Benefits both the Federal award and other work of the college and can be distributed in proportions that may be approximated using reasonable methods; and
• Is necessary to the overall operation of the college and is assignable in part to the Federal award in accordance with the principles in this subpart.
2. All activities which benefit from the college's indirect (F&A) cost, including unallowable activities and donated services by the college or third parties, will receive an appropriate allocation of indirect costs.
3. Any cost allocable to a particular Federal award under the principles provided for in this part may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by Federal statutes, regulations, or terms and conditions of the Federal awards, or for other reasons. However, this prohibition would not preclude the college from shifting costs that are allowable under two or more Federal awards in accordance with existing Federal statutes, regulations, or the terms and conditions of the Federal awards.
4. Direct cost allocation principles. If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost should be allocated to the projects based on the proportional benefit. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, then, notwithstanding paragraph (c) of this section, the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Where the purchase of equipment or other capital asset is specifically authorized under a Federal award, the costs are assignable to the Federal award regardless of the use that may be made of the equipment or other capital asset involved when no longer needed for the purpose for which it was originally required. See also §§ 200.310 Insurance coverage through 200.316 Property trust relationship and 200.439 Equipment and other capital expenditures.
5. If the contract is subject to CAS, costs must be allocated to the contract pursuant to the Cost Accounting Standards. To the extent that CAS is applicable, the allocation of costs in accordance with CAS takes precedence over the allocation provisions in this part.

Applicable Credits

Applicable credits refer to those receipts or reduction-of-expenditure-type transactions that offset or reduce expense items allocable to the Federal award as direct or indirect (F&A) costs. Examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the College relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate.

In some instances, the amounts received from the Federal Government to finance activities or service operations of the College should be treated as applicable credits. Specifically, the concept of netting such credit items (including any amounts used to meet cost sharing or matching requirements) must be recognized in determining the rates or amounts to be charged to the Federal award. (See §§200.436 Depreciation and 200.468 Specialized service facilities, for areas of potential application in the matter of Federal financing of activities.)

Allowable and Non-Allowable Costs

For a comprehensive information on allowable and non-allowable costs, please refer to the Allowable and Non-Allowable Costs handbook.

Direct & Indirect Costs

Direct Costs

1. General. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs.
2. Application to Federal awards. Identification with the Federal award rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect (F&A) costs of Federal awards. Typical costs charged directly to a Federal award are the compensation of employees who work on that award, their related fringe benefit costs, the costs of materials and other items of expense incurred for the Federal award. If directly related to a specific award, certain costs that otherwise would be treated as indirect costs may also include extraordinary utility consumption, the cost of materials supplied from stock or services rendered by specialized facilities or other institutional service operations.
3. The salaries of administrative and clerical staff should normally be treated as indirect (F&A) costs. Direct charging of these costs may be appropriate only if all of the following conditions are met:
• Administrative or clerical services are integral to a project or activity;
• Individuals involved can be specifically identified with the project or activity;
• Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
• The costs are not also recovered as indirect costs.
4. Minor items. Any direct cost of minor amount may be treated as an indirect (F&A) cost for reasons of practicality where such accounting treatment for that item of cost is consistently applied to all Federal and non-Federal cost objectives.
5. The costs of certain activities are not allowable as charges to Federal awards. However, even though these costs are unallowable for purposes of computing charges to Federal awards, they nonetheless must be treated as direct costs for purposes of determining indirect (F&A) cost rates and be allocated their equitable share of the College's indirect costs if they represent activities which:
• Include the salaries of personnel,
• Occupy space, and
• Benefit from the College's indirect (F&A) costs.

Indirect Costs

1. Facilities and Administration Classification. For major IHEs and major nonprofit organizations, indirect (F&A) costs must be classified within two broad categories: “Facilities” and “Administration.” “Facilities” is defined as depreciation on buildings, equipment and capital improvement, interest on debt associated with certain buildings, equipment and capital improvements, and operations and maintenance expenses. “Administration” is defined as general administration and general expenses such as the director's office, accounting, personnel and all other types of expenditures not listed specifically under one of the subcategories of “Facilities” (including cross allocations from other pools, where applicable).
2. Federal Agency Acceptance of Negotiated Indirect Cost Rates.
• The negotiated rates must be accepted by all Federal awarding agencies. A Federal awarding agency may use a rate different from the negotiated rate for a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by a Federal awarding agency head or delegate based on documented justification as described in paragraph (c)(3) of this section.
• The Federal awarding agency head or delegate must notify OMB of any approved deviations.
• The Federal awarding agency must implement, and make publicly available, the policies, procedures and general decision making criteria that their programs will follow to seek and justify deviations from negotiated rates.
• The Federal awarding agency must include in the notice of funding opportunity the policies relating to indirect cost rate reimbursement, matching, or cost share. As appropriate, the Federal agency should incorporate discussion of these policies into Federal awarding agency outreach activities with colleges prior to the posting of a notice of funding opportunity.
• NCCCS must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes required information from CFR 200.331 at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward.

Required Certifications

To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets, the annual and final fiscal reports or vouchers requesting payment under the agreements must include a certification, signed by an official who is authorized to legally bind the College, which reads as follows: “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”

Certification of cost allocation plan or indirect (F&A) cost rate proposal. Each cost allocation plan or indirect (F&A) cost rate proposal must comply with the following:

• A proposal to establish a cost allocation plan or an indirect (F&A) cost rate, whether submitted to a Federal cognizant agency for indirect costs or maintained on file by the College, must be certified by the College using the Certificate of Cost Allocation Plan or Certificate of Indirect Costs as set forth in Appendices III through VII, and Appendix IX. The certificate must be signed on behalf of the College by an individual at a level no lower than vice president or chief financial officer of the College that submits the proposal.
• Unless the College has elected the option under §200.414 Indirect (F&A) costs, paragraph (f), the Federal Government may either disallow all indirect (F&A) costs or unilaterally establish such a plan or rate when the College fails to submit a certified proposal for establishing such a plan or rate in accordance with the requirements. Such a plan or rate may be based upon audited historical data or such other data that have been furnished to the cognizant agency for indirect costs and for which it can be demonstrated that all unallowable costs have been excluded. When a cost allocation plan or indirect cost rate is unilaterally established by the Federal Government because the College failed to submit a certified proposal, the plan or rate established will be set to ensure that potentially unallowable costs will not be reimbursed.

Record Keeping

1. Colleges are required to keep intact and accessible all financial records, supporting source documents, statistical records, and other records pertinent to the grant. These include but are not limited to; invoices and backup documentation which supports the expenditure, purchase requisitions, purchase orders, contracts, and associated backup documentation, check logs and check registers, collections and disbursement of funds, and journal entries pertinent to grants and contract.
2. The Attorney General’s Office requested that retention schedules be submitted for revision. This was accomplished and the State Records Commission extended the requirement to six (6) years.
3. For funds allotted to a State for any program year, records must be retained for six years following the date on which the annual expenditure report containing the final expenditures charged to the program year’s allotment is submitted to the Department of Education. This equates to an effective period of nine (9) years (i.e. Grant received 10/1/10 and the final report due on 12/31/13. Six years from due date of final report is 12/31/19.)
4. The awarding agency, the Department of Education (including the Department of Education’s Office of the Inspector General), and the Comptroller General of the United States, or any of their authorized representatives, have the right of timely and reasonable access to any books, documents, papers, computer records, or other records of colleges and sub-colleges that are pertinent to the grant, in order to conduct audits and examinations, and to make excerpts, transcripts, and photocopies of such documents. This right also includes timely and reasonable access to college and sub-college personnel for the purpose of interview and discussion related to such documents. The right of access in this section is not limited to the required retention period but last as long as the records are retained.

Payroll & Time Distribution

NCCCS Time and Effort Reporting

1. Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:
• Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;
• Be incorporated into the official records of the organization.
2. NCCCS employees compensated using Perkins funds are required to maintain audible "time and effort" documentation that show how each employee spent his or her compensated time. Such documentation is written, after-the-fact (not estimated or budgeted) documenting how the time was actually spent.
• Semi-annual certifications are required for personnel whose compensation is funded solely from the Perkins grant. These certifications document that he/she has been working solely in activities supported by the Perkins grant. Some colleges (grant colleges) may require monthly reports for these personnel. Every six months is only the minimum. The certification must
1. cover a semi-annual period of time,
2. identify Perkins as the program, and
3. be signed and dated by an employee and supervisor having first-hand knowledge of the work performed by the employee.
• Monthly reports are required for personnel whose time is charged in part to Perkins and in part to other revenue sources (split-funded staff). These reports document the portions of time and effort dedicated to Perkins and to other revenue sources. Such records must
1. be completed after-the-fact,
2. account for the total time for which the employee is compensated,
3. be prepared at least monthly,
4. coincide with one or more pay periods, and
5. be signed by the employee and countersigned by an administrator or supervisor.
• If there are differences in the amount of time that an individual is reporting and what is actually being paid, adjustments must be made in the payroll to accurately reflect the time and effort spent on a particular federal program.

Colleges Time and Effort Reporting

College employees compensated using Perkins funds are required to maintain auditable Perkins activity reports or "time and effort" documentation. The type of documentation that a college employee must maintain is not based on the cost objective, but rather on the type of employee (i.e. faculty/professional versus non-faculty/non-professional), as prescribed below.

• Time and effort documentation will reflect the distribution of activity expended by employees for CTE specific functions applicable to reimbursement by Perkins funds.
• These reports will reflect an after the fact reporting of the percentage distribution of activity of employees.
• Reports will reasonably reflect the Perkins activities for which employees are compensated as-well-as any non-Perkins activities subject to other cost objectives for the individual. To confirm that the distribution of activity represents the work performed by the employee during the period, the reports will be signed by the employee, verified by their supervisor or responsible official(s), verifying that the work was performed.
• These reports will reflect activity applicable to Perkins and to each category that accounts for 100% of the employee’s compensation for the subject pay period, verifying that the costs and the functions are allocable.
• For faculty and professional staff compensated with Perkins funds, reports will be prepared and submitted monthly. For all other employees, reports will be prepared and submitted not less than once monthly, and will coincide with one or more pay periods.
• Where the institution uses time cards or other forms of after the fact payroll documents as original documentation for payroll and payroll charges, such documents shall qualify as records for this purpose, provided that they meet the requirements listed in the above subsections.

Audit/Monitoring Resolution

Audit/Monitoring Resolution

Key Definitions of the Act

• In general — The term ‘individual with a disability’ means an individual with any disability (as defined in section 3 of the Americans with Disabilities Act of 1990)
  
• Individuals with disabilities —The term ‘individuals with disabilities’ means more than one individual with a disability.
  

Industry Accreditation/Certification Body - Organization that, by accrediting or approving a career/technical education program in its industry area certifies that the program facilities, training equipment, instructors, and curriculum meet the quality criteria established by that organization (e.g., NIMS certification of Machine Tool Technology programs).