EDGAR Part 76 Subpart G (What Are the Administrative Responsibilities of the State and Its Subgrantees?)
Subpart G_What Are the Administrative Responsibilities of the State and
Its Subgrantees?
General Administrative Responsibilities
Sec. 76.700 Compliance with statutes, regulations, State plan, and
applications.
A State and a subgrantee shall comply with the State plan and
applicable statutes, regulations, and approved applications, and shall
use Federal funds in accordance with those statutes, regulations, plan,
and applications.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Sec. 76.701 The State or subgrantee administers or supervises each
project.
A State or a subgrantee shall directly administer or supervise the
administration of each project.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Sec. 76.702 Fiscal control and fund accounting procedures.
A State and a subgrantee shall use fiscal control and fund
accounting procedures that insure proper disbursement of and accounting
for Federal funds.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Sec. 76.703 When a State may begin to obligate funds.
(a)(1) The Secretary may establish, for a program subject to this
part, a date by which a State must submit for review by the Department a
State plan and any other documents required to be submitted under
guidance provided by the Department under paragraph (b)(3) of this
section.
(2) If the Secretary does not establish a date for the submission of
State plans and any other documents required under guidance provided by
the Department, the date for submission is three months before the date
the Secretary may begin to obligate funds under the program.
(b)(1) This paragraph (b) describes the circumstances under which
the submission date for a State plan may be deferred.
(2) If a State asks the Secretary in writing to defer the submission
date for a State plan because of a Presidentially declared disaster that
has occurred in that State, the Secretary may defer the submission date
for the State plan and any other document required under guidance
provided by the Department if the Secretary determines that the disaster
significantly impairs the ability of the State to submit a timely State
plan or other document required under guidance provided by the
Department.
(3)(i) The Secretary establishes, for a program subject to this
part, a date by which the program office must deliver guidance to the
States regarding the contents of the State plan under that program.
(ii) The Secretary may only establish a date for the delivery of
guidance to the States so that there are at least as many days between
that date and the date that State plans must be submitted to the
Department as there are days between the date that State plans must be
submitted to the Department and the date that funds are available for
obligation by the Secretary on July 1, or October 1, as appropriate.
(iii) If a State does not receive the guidance by the date
established under paragraph (b)(3)(i) of this section, the submission
date for the State plan under the program is deferred one day for each
day that the guidance is late in being received by the State.
Note: The following examples describe how the regulations in Sec.
76.703(b)(3) would act to defer the date that a State would have to
submit its State plan.
Example 1. The Secretary decides that State plans under a forward-
funded program must be submitted to the Department by May first. The
Secretary must provide guidance to the States under this program by
March first, so that the States have at least as many days between the
guidance date and the submission date (60) as the Department has between
the submission date and the date that funds are available for obligation
(60). If the program transmits guidance to the States on February 15,
specifying that State plans must be submitted by May first, States
generally would have to submit State plans by that date. However, if,
for example, a State did not receive the guidance until March third,
that State would have until May third to submit its State plan because
the submission date of its State plan would be deferred one day for each
day that the guidance to the State was late.
Example 2. If a program publishes the guidance in the Federal
Register on March third, the States would be considered to have received
the guidance on that day. Thus, the guidance could not specify a date
for the submission of State plans before May second, giving the States
59 days between the date the guidance is published and the submission
date and giving the Department 58 days between the submission date and
the date that funds are available for obligation.
(c)(1) For the purposes of this section, the submission date of a
State plan or other document is the date that the Secretary receives the
plan or document.
(2) The Secretary does not determine whether a State plan is
substantially approvable until the plan and any documents required under
guidance provided by the Department have been submitted.
(3) The Secretary notifies a State when the Department has received
the State plan and all documents required under guidance provided by the
Department.
(d) If a State submits a State plan in substantially approvable form
(or an amendment to the State plan that makes it substantially
approvable), and submits any other document required under guidance
provided by the Department, on or before the date the State plan must be
submitted to the Department, the State may begin to obligate funds on
the date that the funds are first available for obligation by the
Secretary.
(e) If a State submits a State plan in substantially approvable form
(or an amendment to the State plan that makes it substantially
approvable) or any other documents required under guidance provided by
the Department after the date the State plan must be submitted to the
Department, and--
(1) The Department determines that the State plan is substantially
approvable on or before the date that the funds are first available for
obligation by the Secretary, the State may begin to obligate funds on
the date that the funds are first available for obligation by the
Secretary; or
(2) The Department determines that the State plan is substantially
approvable after the date that the funds are first available for
obligation by the Secretary, the State may begin to obligate funds on
the earlier of the two following dates:
(i) The date that the Secretary determines that the State plan is
substantially approvable.
(ii) The date that is determined by adding to the date that funds
are first available for obligation by the Secretary--
(A) The number of days after the date the State plan must be
submitted to the Department that the State plan or other document
required under guidance provided by the Department is submitted; and
(B) If applicable, the number of days after the State receives
notice that the State plan is not substantially approvable that the
State submits additional information that makes the plan substantially
approvable.
(f) Additional information submitted under paragraph (e)(2)(ii)(B)
of this section must be signed by the person who submitted the original
State plan (or an authorized delegate of that officer).
(g)(1) If the Department does not complete its review of a State
plan during the period established for that review, the Secretary will
grant pre-award costs for the period after funds become available for
obligation by the Secretary and before the State plan is found
substantially approvable.
(2) The period established for the Department's review of a plan
does not include any day after the State has received notice that its
plan is not substantially approvable.
Note: The following examples describe how the regulations in Sec.
76.703 would be applied in certain circumstances. For the purpose of
these examples, assume that the grant program established an April 1 due
date for the submission of the State plan and that funds are first
available for obligation by the Secretary on July 1.
Example 1. Paragraph (d): A State submits a plan in substantially
approvable form by April 1. The State may begin to obligate funds on
July 1.
Example 2. Paragraph (e)(1): A State submits a plan in substantially
approvable form on May 15, and the Department notifies the State that
the plan is substantially approvable on June 20. The State may begin to
obligate funds on July 1.
Example 3. Paragraph (e)(2)(i): A State submits a plan in
substantially approvable form on May 15, and the Department notifies the
State that the plan is substantially approvable on July 15. The State
may begin to obligate funds on July 15.
Example 4. Paragraph (e)(2)(ii)(A): A State submits a plan in
substantially approvable form on May 15, and the Department notifies the
State that the plan is substantially approvable on August 21. The State
may begin to obligate funds on August 14. (In this example, the plan is
45 days late. By adding 45 days to July 1, we reach August 14, which is
earlier than the date, August 21, that the Department notifies the State
that the plan is substantially approvable. Therefore, if the State chose
to begin drawing funds from the Department on August 14, obligations
made on or after that date would generally be allowable.)
Example 5. Paragraph (e)(2)(i): A State submits a plan on May 15,
and the Department notifies the State that the plan is not substantially
approvable on July 10. The State submits changes that make the plan
substantially approvable on July 20 and the Department notifies the
State that the plan is substantially approvable on July 25. The State
may begin to obligate funds on July 25. (In this example, the original
submission is 45 days late. In addition, the Department notifies the
State that the plan is not substantially approvable and the time from
that notification until the State submits changes that make the plan
substantially approvable is an additional 10 days. By adding 55 days to
July 1, we reach August 24. However, since the Department notified the
State that the plan was substantially approvable on July 25, that is the
date that the State may begin to obligate funds.)
Example 6. Paragraph (e)(2)(ii)(B): A State submits a plan on May
15, and the Department notifies the State that the plan is not
substantially approvable on August 1. The State submits changes that
make the plan substantially approvable on August 20, and the Department
notifies the State that the plan is substantially approvable on
September 5. The State may choose to begin drawing funds from the
Department on September 2, and obligations made on or after that date
would generally be allowable. (In this example, the original submission
is 45 days late. In addition, the Department notifies the State that the
plan is not substantially approvable and the time from that notification
until the State submits changes that make the plan substantially
approvable is an additional 19 days. By adding 64 days to July 1, we
reach September 2, which is earlier than September 5, the date that the
Department notifies the State that the plan is substantially
approvable.)
Example 7. Paragraph (g): A State submits a plan on April 15 and the
Department notifies the State that the plan is not substantially
approvable on July 16. The State makes changes to the plan and submits a
substantially approvable plan on July 30. The Department had until July
15 to decide whether the plan was substantially approvable because the
State was 15 days late in submitting the plan. The date the State may
begin to obligate funds under the regulatory deferral is July 29 (based
on the 15 day deferral for late submission plus a 14 day deferral for
the time it took to submit a substantially approvable plan after having
received notice). However, because the Department was one day late in
completing its review of the plan, the State would get pre-award costs
to cover the period of July 1 through July 29.
(h) After determining that a State plan is in substantially
approvable form, the Secretary informs the State of the date on which it
could begin to obligate funds. Reimbursement for those obligations is
subject to final approval of the State plan.
(Authority: 20 U.S.C. 1221e-3, 3474, 6511(a) and 31 U.S.C. 6503)
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 60 FR 41294, Aug. 11, 1995; 61 FR 14484, Apr. 2, 1996]
Sec. 76.704 New State plan requirements that must be addressed in a
State plan.
(a) This section specifies the State plan requirements that must be
addressed in a State plan if the State plan requirements established in
statutes or regulations change on a date close to the date that State
plans are due for submission to the Department.
(b)(1) A State plan must meet the following requirements:
(i) Every State plan requirement in effect three months before the
date the State plan is due to be submitted to the Department under 34
CFR 76.703; and
(ii) Every State plan requirement included in statutes or
regulations that will be effective on or before the date that funds
become available for obligation by the Secretary and that have been
signed into law or published in the Federal Register as final
regulations three months before the date the State plan is due to be
submitted to the Department under 34 CFR 76.703.
(2) If a State plan does not have to meet a new State plan
requirement under paragraph (b)(1) of this section, the Secretary takes
one of the following actions:
(i) Require the State to submit assurances and appropriate
documentation to show that the new requirements are being followed under
the program.
(ii) Extend the date for submission of State plans and approve pre-
award costs as necessary to hold the State harmless.
(3) If the Secretary requires a State to submit assurances under
paragraph (b)(2) of this section, the State shall incorporate changes to
the State plan as soon as possible to comply with the new requirements.
The State shall submit the necessary changes before the start of the
next obligation period.
(Authority: 20 U.S.C. 1221e-3, 3474, 6511(a) and 31 U.S.C. 6503)
[60 FR 41296, Aug. 11, 1995]
Sec. 76.707 When obligations are made.
The following table shows when a State or a subgrantee makes
obligations for various kinds of property and services.
------------------------------------------------------------------------
If the obligation is for-- The obligation is made--
------------------------------------------------------------------------
(a) Acquisition of real or personal On the date on which the
property. State or subgrantee makes a
binding written commitment
to acquire the property.
(b) Personal services by an employee of When the services are
the State or subgrantee. performed.
(c) Personal services by a contractor who On the date on which the
is not an employee of the State or State or subgrantee makes a
subgrantee. binding written commitment
to obtain the services.
(d) Performance of work other than On the date on which the
personal services. State or subgrantee makes a
binding written commitment
to obtain the work.
(e) Public utility services............... When the State or subgrantee
receives the services.
(f) Travel................................ When the travel is taken.
(g) Rental of real or personal property... When the State or subgrantee
uses the property.
(h) A preagreement cost that was properly
approved by the State under the cost
principals identified in 34 CFR 74.171
and 80.22..
------------------------------------------------------------------------
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 55 FR 14817, Apr. 18, 1990; 57 FR 30342, July 8, 1992]
Sec. 76.708 When certain subgrantees may begin to obligate funds.
(a) If the authorizing statute for a program requires a State to
make subgrants on the basis of a formula (see Sec. 76.5), the State may
not authorize an applicant for a subgrant to obligate funds until the
later of the following two dates:
(1) The date that the State may begin to obligate funds under Sec.
76.703; or
(2) The date that the applicant submits its application to the State
in substantially approvable form.
(b) Reimbursement for obligations under paragraph (a) of this
section is subject to final approval of the application.
(c) If the authorizing statute for a program gives the State
discretion to select subgrantees, the State may not authorize an
applicant for a subgrant to obligate funds until the subgrant is made.
However, the State may approve pre-agreement costs in accordance with
the cost principles that are appended to 34 CFR part 74 (Appendices C-
F).
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980.
Further redesignated at 60 FR 41295, Aug. 11, 1995]
Sec. 76.709 Funds may be obligated during a ``carryover period.''
(a) If a State or a subgrantee does not obligate all of its grant or
subgrant funds by the end of the fiscal year for which Congress
appropriated the funds, it may obligate the remaining funds during a
carryover period of one additional fiscal year.
(b) The State shall return to the Federal Government any carryover
funds not obligated by the end of the carryover period by the State and
its subgrantees.
Note: This section is based on a provision in the General Education
Provisions Act (GEPA). Section 427 of the Department of Education
Organization Act (DEOA), 20 U.S.C. 3487, provides that except to the
extent inconsistent with the DEOA, the GEPA ``shall apply to functions
transferred by this Act to the extent applicable on the day preceding
the effective date of this Act.'' Although standardized nomenclature is
used in this section to reflect the creation of the Department of
Education, there is no intent to extend the coverage of the GEPA beyond
that authorized under section 427 or other applicable law.
(Authority: U.S.C. 1221e-3, 1225(b), and 3474)
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 45 FR 86296, Dec. 30, 1980. Redesignated at 60 FR 41295,
Aug. 11, 1995]
Sec. 76.710 Obligations made during a carryover period are subject to
current statutes, regulations, and applications.
A State and a subgrantee shall use carryover funds in accordance
with:
(a) The Federal statutes and regulations that apply to the program
and are in effect for the carryover period; and
(b) Any State plan, or application for a subgrant, that the State or
subgrantee is required to submit for the carryover period.
Note: This section is based on a provision in the General Education
Provisions Act (GEPA). Section 427 of the Department of Education
Organization Act (DEOA), 20 U.S.C. 3487, provides that except to the
extent inconsistent with the DEOA, the GEPA ``shall apply to functions
transferred by this Act to the extent applicable on the day preceding
the effective date of this Act.'' Although standardized nomenclature is
used in this section to reflect the creation of the Department of
Education, there is no intent to extend the coverage of the GEPA beyond
that authorized under section 427 or other applicable law.
(Authority: U.S.C. 1221e-3, 1225(b), and 3474)
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 45 FR 86296, Dec. 30, 1980. Redesignated at 60 FR 41295,
Aug. 11, 1995]
Sec. 76.711 Requesting funds by CFDA number.
If a program is listed in the Catalog of Federal Domestic Assistance
(CFDA), a State, when requesting funds under the program, shall identify
that program by the CFDA number.
(Authority: 20 U.S.C. 1221e-3, 6511(a), 3474, 31 U.S.C. 6503)
[60 FR 41296, Aug. 11, 1995]
Reports
Sec. 76.720 Financial and performance reports by a State.
(a) This section applies to a State's reports required under 34 CFR
80.41 (Financial reporting) and 34 CFR 80.40 (Monitoring and reporting
of program performance).
(b) A State shall submit these reports annually, unless the
Secretary allows less frequent reporting.
(c) However, the Secretary may, under 34 CFR 80.12 (Special grant or
subgrant conditions for ``high-risk'' grantees) or 34 CFR 80.20
(Standards for financial management systems) require a State to report
more frequently than annually.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
[57 FR 30342, July 8, 1992]
Sec. 76.722 A subgrantee makes reports required by the State.
A State may require a subgrantee to furnish reports that the State
needs to carry out its responsibilities under the program.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Records
Sec. 76.730 Records related to grant funds.
A State and a subgrantee shall keep records that fully show:
(a) The amount of funds under the grant or subgrant;
(b) How the State or subgrantee uses the funds;
(c) The total cost of the project;
(d) The share of that cost provided from other sources; and
(e) Other records to facilitate an effective audit.
(Approved by the Office of Management and Budget under control number
1880-0513)
(Authority: 20 U.S.C. 1232f)
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 53 FR 49143, Dec. 6, 1988]
Sec. 76.731 Records related to compliance.
A State and a subgrantee shall keep records to show its compliance
with program requirements.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Privacy
Sec. 76.740 Protection of and access to student records; student
rights in research, experimental programs, and testing.
(a) Most records on present or past students are subject to the
requirements of section 438 of GEPA and its implementing regulations
under 34 CFR part 99. (Section 438 is the Family Educational Rights and
Privacy Act of 1974.)
(b) Under most programs administered by the Secretary, research,
experimentation, and testing are subject to the requirements of section
439 of GEPA and its implementing regulations at 34 CFR part 98.
(Authority: 20 U.S.C. 1221e-3, 1232g, 1232h, 3474, and 6511(a))
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 57 FR 30342, July 8, 1992]
Use of Funds by States and Subgrantees
Sec. 76.760 More than one program may assist a single activity.
A State or a subgrantee may use funds under more than one program to
support different parts of the same project if the State or subgrantee
meets the following conditions:
(a) The State or subgrantee complies with the requirements of each
program with respect to the part of the project assisted with funds
under that program.
(b) The State or subgrantee has an accounting system that permits
identification of the costs paid for under each program.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Sec. 76.761 Federal funds may pay 100 percent of cost.
A State or a subgrantee may use program funds to pay up to 100
percent of the cost of a project if:
(a) The State or subgrantee is not required to match the funds; and
(b) The project can be assisted under the authorizing statute and
implementing regulations for the program.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
State Administrative Responsibilities
Sec. 76.770 A State shall have procedures to ensure compliance.
Each State shall have procedures for reviewing and approving
applications for subgrants and amendments to those applications, for
providing technical assistance, for evaluating projects, and for
performing other administrative responsibilities the State has
determined are necessary to ensure compliance with applicable statutes
and regulations.
(Authority: 20 U.S.C. 1221e-3 and 3474)
[57 FR 30342, July 8, 1992]
Sec. 76.783 State educational agency action--subgrantee's opportunity
for a hearing.
(a) A subgrantee may request a hearing if it alleges that any of the
following actions by the State educational agency violated a State or
Federal statute or regulation:
(1) Ordering, in accordance with a final State audit resolution
determination, the repayment of misspent or misapplied Federal funds; or
(2) Terminating further assistance for an approved project.
(b) The procedures in Sec. 76.401(d)(2)-(7) apply to any request
for a hearing under this section.
Note: This section is based on a provision in the General Education
Provisions Act (GEPA). Section 427 of the Department of Education
Organization Act (DEOA), 20 U.S.C. 3487, provides that except to the
extent inconsistent with the DEOA, the GEPA ``shall apply to functions
transferred by this Act to the extent applicable on the day preceding
the effective date of this Act.'' Although standardized nomenclature is
used in this section to reflect the creation of the Department of
Education, there is no intent to extend the coverage of the GEPA beyond
that authorized under section 427 or other applicable law.
(Authority: 20 U.S.C. 1231b-2)
[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980,
as amended at 45 FR 86296, Dec. 30, 1980; 57 FR 30342, July 8, 1992]
EDGAR version June 23, 2005
