Grant Administration

THE CHIEF EXECUTIVE OFFICER RECOMMENDS:

That the Chicago Board of Education (“Board”) amend the Grant Administration Policy Section 403.8 Board Report 06-0426-PO3.

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. The administration of grants should be equitable to all impacted parties while operationalizing the CPS Equity Framework and aligning with the CPS mission.

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.

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. A systematic methodology should be used to distribute indirect costs to programs or functions in order to approximate their full cost.

Funds received from private organizations and individuals will be deemed a gift or donation are subject to the requirements of this Policy.

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 Office of Finance, in collaboration with 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. Any excess cash that needs to be refunded will be reported to the Board per Board Rule 7-13.

IV. Implementation

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