Grant Administration

THE CHIEF EXECUTIVE OFFICER RECOMMENDS:

That the Chicago Board of Education (“Board”) adopt a Grant Administration Policy.

PURPOSE:

The purpose of this policy is to establish grant administration requirements to ensure compliance with funding agency requirements and to ensure the sound and cost-effective management of all Grants received by the Board.

POLICY TEXT:

I. Indirect Cost Reimbursement

All Board grant applications shall include a request for reimbursement of appropriate indirect costs using the rate table established by the Illinois State Board of Education and posted on the CPS Division of Revenue’s website.

Indirect costs are actual costs and expenses incurred by the Board in support of grant activities but which cannot be directly charged to a grant. Indirect costs may include but are not limited to: the costs of using the buildings and equipment; project accounting; personnel; computing; purchasing expense; postage; printing and duplicating expense; library services; and administration. The following costs may not be included in an indirect cost calculation budget, application or expenditure claim: capital; sub-contracted expenditures; fundraising; public relations; advertising bad debts; entertainment; grant expenditures or indirect costs used included on a claim for another grant; or fines & penalties, and such other expenses identified in the grant application as unallowable.

When personnel or administration-related indirect expenses are identified for reimbursement in a grant, staff will be notified at the beginning of a grant period as to the percentage of their workday being allotted for grant project services by the CPS grant administrator.

Funds received from private organizations and individuals that meet all of the following criteria will be deemed a gift or donation and not subject to the requirements of this Policy: (a) funds that provide general or unrestricted support for broadly defined activities in one or more program areas; (b) funds where no detailed fiscal, technical or narrative reports are required; (c) funds where no copyrights or other intellectual property rights resulting from the funds are claimed by the donor; and (d) funds with no time limit on the expenditure of funds and the grant is irrevocable.

Grants and grant agreements that do not permit indirect cost reimbursement or otherwise require the Board to absorb indirect costs under a cost-sharing arrangement must be approved by the Chief Financial Officer or his or her designee, prior to the submittal of the grant proposal or application. The Chief Financial Officer or his or her designee may authorize waivers to this Policy requirement if submitted prior to the submittal of the grant proposal or application if such waiver is deemed to be in the best interest of the Board.

II. Cost Sharing

Grants that require cost sharing commitments must be authorized by the Chief Financial Officer or his or her designee, prior to the submittal of the grant proposal or application. If approved by the Chief Financial Officer or his or her designee, the cost sharing proposal shall then be submitted to the funding source with a schedule detailing the specific Board resources be used to meet the cost sharing obligations. Expenses identified for cost sharing purposes must be incurred during the specified grant period and may not also be identified for purposes of indirect cost reimbursement. Salary dollars in excess of regulatory salary caps may not be cost shared. The department or unit receiving the grant shall document all expenses identified for cost sharing purposes for reporting to the funding source simultaneously with all grant expenditure reports.

III. Excess Cash

Grant funds shall be expended in accordance with the payment and vouchering schedules identified in the grant so as to ensure excess cash balances will not occur. All Board grant applications and proposed grant payment schedules shall be submitted based on actual cash needs and the spending plan for a specified grant period. The Chief Financial Officer or his or her designee will periodically review grant payment schedules to prevent and rectify excess cash occurrences.

IV. Implementation

The Chief Financial Officer may issue guidelines and procedures to effectuate this policy.