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					           PERKINS IV

PLANNING INSTRUCTIONS FOR LOCALS
     For FY09 grant application




      Maine Department of Education
      Career and Technical Education
          23 State House Station
        Augusta, ME 04333-0023
          www.schoolswork.org

              APRIL 2008
                    Perkins IV Grant Contacts
                           Maine Department of Education
                           Career and Technical Education
                                23 State House Station
                               Augusta, ME 04333-0023

Margaret Harvey                             Nigel Norton
Perkins Grant Administrator                 Education Specialist
     Site Profile                                 Articulation
     Administration                               Enhanced Articulation
     Evaluation                                   Programs of Study
     Overall Approval                             Professional Development
624-6739                                          Placement
Margaret.Harvey@maine.gov                   624-6745
                                            Nigel.Norton@Maine.gov
Lora Downing
Interim State Director Career and           Charlie Hartman
Technical Education                         Education Specialist
     Academic Attainment                          Accountability
     Completion                             624-6748
     Graduation                             Charlie.Hartman@maine.gov
624-6740
                                            *************************************
Lora.Downing@maine.gov
                                            Donna Tiner
Buzz Gamble                                 Perkins Grant Manager
     Education Specialist                         Postsecondary
     Special Populations                    Maine Community College System
     Non-Traditional Students
                                            323 State Street
624-6747
                                            Augusta, ME 04330
Buzz.Gamble@maine.gov
                                            629-4012
                                            dtiner@mccs.me.edu
Doug Robertson
Education Specialist
     Collaboration
                                            Gary Seekins
     Skill Attainment                       Online Technical Advice
624-6744                                    985-8802
Doug.Robertson@maine.gov                    gseekins@usaed.net

                                            George Smith
                                            Online Technical Advice
                                            377-3605
                                            smithphd@pivot.net
                         Table of Contents
      Perkins Grant Contacts
      Planning Guide for Locals          Pages 1 – 14
Attachment A       Formula Documentation, Estimation of Funds FY09
Attachment B       Local Application Timeline
Attachment C       Perkins III to Perkins IV
Attachment D       Articulation Agreement Template
Attachment E       Enhanced Articulation Template
Attachment F       Program of Study Template
      F-a          Program of Study Definition
      F-1          Sample – Career Clusters
      F-2          Sample – Central Maine Community College
      F-3          Sample – Cony High School
Attachment G       Comparison Chart - Articulation, Enhanced Articulation and Programs of Study
Attachment H       Professional Development Guidance
Attachment I       Maine State Standards - Special Populations
Attachment J       Accountability Forms
Attachment K       Negotiation Process
Attachment L       OMB Circular A-87- Secondary
Attachment M       A-21 Allowable Costs- Postsecondary
Attachment N       Equipment Guidelines
Attachment O       Perkins Grant Assurances and Certifications
Attachment P       Local Grant Approval Checklist
Attachment Q       Perkins Section 135: Allowable Uses of Funds
Attachment R       Perkins Section 134: Local Plan Requirements
Attachment S       Live or Outside Work Policy
Attachment T       Perkins IV Work Plan
Attachment U       FAQ
Attachment V       V-1 Instruction Letter Secondary
                   V-2 Instruction Letter Postsecondary
Attachment W       Skill Attainment
                                       Perkins IV
                             Planning Instructions for Locals

July 1, 2008 marks the beginning of the five year Perkins IV (P.L. 109-270) plan. The State Board
signed the Perkins IV 5 year plan in March and the plan will be submitted to the federal Office of
Vocational and Adult Education in April, 2008. We are now waiting for the feds to notify us as to the
amount of Perkins funds available to each state. Until we have the final allocation MDOE has sent the
secondary schools and MCCS has sent the postsecondary schools a draft allocation based on last year's
funds. This is an estimate! The Perkins State breakout will remain the same, 50% to secondary and
50% to postsecondary CTE schools. Administration at the local level remains at 5%. (Administration
at the postsecondary level is spent at the System level. There are no local Perkins administration funds
for the colleges of the MCCS.)


The online grant will be open for FY09 on April 18, 2008. We will not have received the final figures
from the federal DOE so we will use the estimated figures and update if we need to when the new
figures come in. PLEASE UNDERSTAND THESE FIGURES ARE ESTIMATES. The grant will open up to
FY09. To access the FY08 for yearend requirements you will need to click on the FY08 link in the top
blue link bar. You will not be able to submit until we can populate the budget figures. FY09 grants are
due on June 6 on the MDOE online grant system. The Postsecondary grants are due May 23 as they
need to be approved by their system office before submission to MDOE

I have attached the draft timeline for the Perkins grant. We understand this timeline is extremely tight.
We had no control over the federal timing but we still know this will be difficult to meet.
                                           See attachment B
Unfortunately if you do not have your grant approved by July 1, 2008 you cannot spend the grant
funds. In the past you could use local dollars and reimburse them with the grant funds when the grant
was approved. The federal guidance we have received at several conferences has informed us that
this is no longer going to be allowed.

Yearend requirements must be submitted and approved before any grantee is eligible for FY09 funds.
The mid-year PPRs were due to MDOE on January 15, 2008. The financial yearend report and Annual
PPR must be submitted to the Maine Department of Education by June 30 to accommodate the new
timeline. The postsecondary recipients may have a different due date to enable the system office to
review and approve before submission to MDOE. The yearend documents should be submitted on the
online grant system. The secondary grantees are also required to hold advisory meetings and review
and approve their live work policy and cooperative agreement yearly. Documentation of this review and
approval in the advisory meeting minutes will meet this requirement. Please send minutes to Jan
Cowan, Maine Department of Education, State House Station #23, Augusta, Maine, 04333

                                    Major Changes in Perkin IV

                                           See attachment C

There are many changes in the new legislation. Here are a few of the major ones:

Tech Prep

                                                                                            Page 1 of 16
The Tech Prep funds have been rolled into the Title 1(c) basic funds and are going to be distributed
using the basic grant funds formula as allowed by Perkins IV. Articulation between secondary CTE and
postsecondary is still a Perkins IV requirement. The State plan requires that a contact/position be
identified by the individual postsecondary Community Colleges and the individual secondary CTE
schools to be responsible for the facilitation, record keeping, and reporting of articulation agreements,
enhanced articulation agreements and program of study agreements.

Adult Education funding

In the previous Acts Adult Education received a percentage of the Perkins funds for CTE activities.
Under the Perkin IV definition they no longer qualify as an eligible recipient. The 30 percent that was
dedicated to Adult Education in the previous funding cycles has been added into the secondary and
postsecondary formulas. Maine Adult Education may provide services to adults in collaboration with
the Community College System and also through a range of adult education programs. The
Department of Education encourages the Maine Community College System campuses to broaden their
contractual relationships with adult education programs to form agreements leading to a certificate,
diploma or associate degree.

Increased Emphasis on Academic and Technical Integration

Academic and technical integration within program area or as part of a sequence of courses is stressed
throughout the act. The Performance indicators in the CAR report require that the NCLB math and
reading percentages now be used to determine academic performance. Academic and technical
integration is a theme throughout the act and is reflected in:
     the purpose,
     the required uses of funds in section 135,
     the development and requirement of one program of study and increased articulation
        requirements
     professional development to encourage academic and CTE teachers to collaborate and work
        together.

Increased Emphasis on Articulation
                                                     Articulation

Articulation is another important requirement in the Perkins IV legislation. The definition of articulation
in the Perkins Act now requires a credit bearing component that was not required in Perkins III. Maine
has defined articulation as credit bearing and institution to institution. Prior agreements were often
secondary teacher to postsecondary teacher and if the teachers left then the articulation was lost. By
making the articulation agreements school to school we are hoping to retain the agreements. The state
plan is going to require that a determined percentage of your programs have articulation agreements
per year of the 5 year plan.

The following table illustrates   the timelines for implementation:
% OF PROGRAMS THAT                 IMPLEMENTATION DATE
MUST BE ARTICULATED
10%                               July   1,   2009
20%                               July   1,   2010
30%                               July   1,   2011
40%                               July   1,   2012
50%                               July   1,   2013

                                                                                              Page 2 of 16
Articulation Agreements can be one of two types:
           Dual Credit
               Dual credit exists when a student is enrolled concurrently in a secondary CTE program,
               as well as the corresponding Community College course at the same time. Students
               enrolled in dual credit courses earn college and high school credit by successfully
               completing these courses. The program is operated jointly by the career and technical
               center and Community College and students receive credit at both institutions upon
               successful completion of dual credit courses. Final grades for dual credit courses are
               reflected on both the student‘s high school transcript and on the Community College‘s
               permanent record.
           Escrow Credit
               Escrow credits become available when the student completes the secondary CTE
               program and then requests the Community College credit, once they are matriculated
               and have completed the Community College requirements to complete the articulation.
               Matriculated students are awarded college credit for the articulated course(s) following
               successful completion of a college‘s identified number of credit hours taken at the
               college. The escrow credit program is governed by a formal, written agreement that
               identifies courses or sequence of courses at a career and technical center which
               successful completion assures the Community College that the student has the
               necessary background, instruction and preparation to enable the student to progress to
               the next level of instruction at the Community College. These escrow credits are applied
               to a degree, but do not carry quality points. They are listed on a transcript as ―P‖ for
               passed.
                                                     See attachment D

The State plan also requires one enhanced articulation agreement by the FY09 grant year. Enhanced
articulation is an articulation that is a systematically planned process linking a secondary career and
technical education school program to a postsecondary career and technical education system
program. Unlike the articulation agreement which can be institution to institution the enhanced
articulation is secondary career and technical education school to postsecondary career and technical
education system. The postsecondary articulation will cross all Community Colleges which offer the like
career and technical education program. The secondary programs will have to meet the requirements
of the Community College system-wide articulation to qualify. Enhanced articulation agreements
between secondary career and technical programs and postsecondary institutions must allow students
to earn a minimum of 3 college credits. By July 1, 2009, one enhanced articulation for each secondary
and postsecondary recipient must be in place. All secondary and postsecondary eligible recipients that
offer the program chosen for enhanced articulation must participate. A student has up to 3 years to
take advantage of the postsecondary credits made available under an Enhanced Articulation
Agreement. (Dependent upon the timeframe determined in the signed written agreement. Three years
is the maximum time allowed.) The 5 year plan will require that 3 Enhanced Articulation Agreements be
in place by the end of the 5 grant period.
                                               See attachment E


More information on Articulation Agreements:
       Articulation Program Objectives
            To encourage career and technical education students to pursue a postsecondary
               education.
            To reduce repetition of mastered competencies between secondary career and technical
               education and Community College.
                                                                                          Page 3 of 16
              To provide a smooth transition from secondary career and technical education to
               Community College education.
              To reduce student and State costs.

       Role of the Institutions
       The secondary career and technical education centers/regions and Community College
       campuses are jointly responsible for developing and executing Articulation Agreements.
       Secondary and postsecondary faculty should partner to identify competencies a student will
       need to successfully transition into the professional/technical program(s) being articulated. As
       the needs of students and the demands of business and industry change, it is reasonable to
       reevaluate and update agreements on an annual basis to reflect those changes in the
       curriculum.

       Secondary and college faculties will agree upon competencies to be examined for the courses to
       be articulated. They will jointly develop an Articulation Agreement listing the student
       requirements needed to achieve the articulated credits. Instructors at the secondary and post-
       secondary levels will meet annually to review course competencies and amend the Articulation
       Agreement as necessary.

       The career and technical education centers/regions and Community Colleges will develop
       methods of publicizing the Articulation Agreements to encourage students to take advantage of
       seamless transitions and advanced placement opportunities. To benefit from articulation, all
       Community College admissions requirements must be met by the student.

       The State will require that a contact/position will be identified by the individual postsecondary
       Community Colleges and the individual secondary CTE schools to be responsible for the
       facilitation, record keeping, and reporting on Articulation Agreements, Enhanced Articulation
       Agreements, and Program of Study Agreements.

Programs of Study Requirement
                                           Programs of Study

Perkins legislation now requires that each Local Recipient develop and implement at least one Program
of Study. A program of study is a planned sequence of courses that integrates high quality core
academic knowledge with technical and occupational skills and knowledge. Programs of study lead to
an industry recognized credential or certificate at the secondary or postsecondary level, or a
postsecondary associate or baccalaureate degree. Programs of study should be developed in
partnership with secondary schools, postsecondary schools, employers, industry groups and other
stakeholders to create curriculum and to support academic, technical and workplace standards. A
program of study may include articulation, but it is not required. At the secondary level, academic
rigor is ensured through the connections to Maine Learning Results (MLR) and No Child Left Behind
(NCLB) accountability measures. Each secondary and postsecondary institution is required to have 1
program of study by July 1, 2008.

More information on Programs of Study
The State of Maine has determined that its programs of study will be planned sequences of courses
that integrate high quality core academic knowledge, and are coherent and rigorous in content,
aligning challenging academic standards with technical and occupational skills and knowledge to
provide secondary CTE students with a pathway to postsecondary CTE education and career goals.
Maine is moving toward incorporating national and State defined standards for determining technical
skill content. The connection to future coursework will motivate students to take the courses to ensure
                                                                                             Page 4 of 16
success in postsecondary education and in careers. One intended outcome of a program of study
would be the enhanced collaboration among program stakeholders. Programs of study would be
supported by signed written agreements and approved by the administrators of the educational
institutions. These agreements would be signed annually by the instructors at the secondary and
postsecondary levels and the administrators at both levels.

The State will require that a contact/position be identified by the individual postsecondary Community
Colleges and the individual secondary CTE schools to be responsible for the facilitation, record keeping,
and reporting on Articulation Agreements, Enhanced Articulation Agreements, and Program of Study
Agreements.
                                        See attachments F and G

Professional Development

Professional development language has been strengthened in Perkins IV and is listed in section 135
under required uses of funds. The local plan now has a separate section for professional development.
The Act also defines professional development in a more rigorous manner and encourages
collaboration with the academic teachers and professional development activities carried out under
NCLB.

PROFESSIONAL DEVELOPMENT GUIDANCE
Professional Development activities:
   Are high-quality, sustained, intensive and classroom-focused in order to have impact on
     classroom instruction.
   Will help teachers and personnel improve student achievement.
   Will help teachers and personnel: stay current with all aspects of an industry; effectively develop
     rigorous and challenging integrated curricula (jointly with academic teachers, to the extent
     practicable), develop a higher level of academic and industry knowledge and skills, and effectively
     use applied learning.
   Promotes integration with professional development activities that the State carries out under title
     II of the Elementary and Secondary Education Act (ESEA) of 1965 and the Higher Education Act
     of 1965. Title II of ESEA prohibits one-day or short-term workshops, unless such workshops and
     conferences are part of a larger series of professional development activities.
   May include internship programs that provide relevant business experience or programs designed
     to train teachers specifically in the effective use and application of technology to improve
     instruction.
   May include initial teacher preparation professional development
   May include teacher development and implementation on CTE and Academic program integration
           Literacy, Numeracy, Revised MLR‘s, Collaboration with other federal initiatives
           Professional Development-technical skill attainment- MDOE and CTE Schools
           Professional Development-statewide-teacher training-MDOE and CTE schools
           Teacher Development-retention and recruitment
                                              See attachment H

Special Populations
A. Definition (excerpted from Perkins Act 2006).—the term ‗special populations‘ means—
       ‗‗(A) individuals with disabilities;
       ‗‗(B) individuals from economically disadvantaged families,
       including foster children;
       ‗‗(C) individuals preparing for nontraditional fields;
       ‗‗(D) single parents, including single pregnant women;

                                                                                            Page 5 of 16
       ‗‗(E) displaced homemakers; and
       ‗‗(F) individuals with limited English proficiency.

Special Populations language has always been a part of the Perkins Act. Perkins IV has taken the
special population guidelines from ―permissive uses of funds‖ to ―required uses of funds‖ under section
135

               (6) develop and implement evaluations of the 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;
               (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.

The local plan guide also requires a grantee to: (section 134)

               (8) describe how the eligible recipient will-
                       (A) review career and technical education 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;
                       ''(B) provide programs that are designed to enable the special populations to meet the
                       local adjusted levels of performance; and
                       ''(C) 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;

Maine Special Populations requirements:
          All K-12 teachers in Maine must complete a ―Teaching Exceptional Students in the Regular
            Classroom‖ course as part of the requirements for certification. Maine CTE teachers at
            each of the regions and centers are included in the Individual Education Plan (IEP) team
            meetings at the partner sending schools.
          CTE secondary and postsecondary schools are required to follow the guidance provided in
            The Maine State Standards of Service for Students Who Are Members of Special
            Populations.
          Services for special populations are embedded in all of the categories as integrated
            components, not as stand-alone programs.
                                          See attachment I


Technical Skill Assessments

During the Maine Perkins five-year State Plan, the Maine Administrators of Career and Technical
Education (MACTE), the Maine Community College System and the Maine Department of Education
CTE team will determine appropriate technical skill standards and assessments for CTE students.

Maine is moving toward implementing national standards for all CTE programs for which there are
national standards. Maine will explore a process to update secondary state standards in program areas
for which there are no national standards. The Maine Administrators of Career and Technical Education
(MACTE) at the secondary level and the CTE team have been convening groups of CTE content area
teachers to discuss national standards and come to agreement on which national standards they are or
will be teaching, how those standards will be assessed and determine which assessments are most

                                                                                                    Page 6 of 16
appropriate for the secondary level, national assessments or locally developed assessments As with
academic achievement, the Department of Education will continue to provide professional development
and technical assistance to the field to help schools improve curriculum, instruction and assessment.
Discussions will include postsecondary instructors, whenever possible, as most of the standards are
too comprehensive to be taught exclusively at the high school level. (SEC. 2. PURPOSE (4)) Maine
CTE will continue to seek ways to support the certification of programs and teachers in industry skills
standards.

National and State defined skills standards
It is a goal for CTE in Maine to have all CTE students in Maine working toward National and/or State defined skills
standards. To accomplish this goal Maine will:
                   Research and discuss secondary program specific Nationally Recognized Technical Skill
                      (NRTS) standards and certification
                   Identify the National and State defined skills standards in both secondary and postsecondary
                      CTE program areas
                   Certify teachers and programs to teach national skill standards
                   Research/develop/adopt secondary and postsecondary- technical skills assessment
                   Develop and implement a plan to meet the federally recognized assessment standards for
                      both secondary and postsecondary CTE education

Secondary Technical Skill Assessment
The data from the secondary national or third party technical skill assessment is reported to the Maine
Department of Education by each school on the EFV 116 in the summer after the students leave the
program in the reporting year.

Should the program not have a National of third party technical skill assessment the students who
complete at least 80% of the standards guiding the State approved program and leave secondary
education during the reporting year will be reported to the Maine Department of Education on the EFV
116.

Secondary student opportunities for the demonstration of CTE technical skill attainment will be
evaluated through:
    The CTE program approval process,
    Maine’s Comprehensive School Review process for career and technical programs
    The local Program Advisory Committee program review.

Program Approval and Technical Skill Assessment
All secondary CTE programs must go through a program approval process and be approved before
they are eligible for state subsidy or federal funding. There are many components to the process
including instructional practices, safety evaluation and other educational requirements. A component
within this process will be identifying which standards will be used to guide the program and which
assessments were used to determine technical skill attainment. The applicants will also have to
provide a plan to advance the program to nationally recognized standards and assessments where they
exist or state certifications/licensure.
Secondary Comprehensive School Review and Technical Skill
Maine has developed a Comprehensive School Review process which evaluates and ensures
continuous school improvement. The Secondary CTE Comprehensive School Review process is built
on 11 standards which schools use to engage in a self-study process. Maine Department of Education
CTE staff affirm the self-study in a 4-day on site visit using a process of interviews and review of
documentation. A report on the site visit is made available to the school, along with a 2-year and a 5-
year follow-up. The review will include a comprehensive examination of the standards guiding the
programs, the assessments to be used to determine technical skill attainment and the plan developed


                                                                                                     Page 7 of 16
to advance the program the program to nationally recognized standards and assessments where they
exist or state certifications/licensure.
.
Program Advisory Committees and Technical Sill Assessment
Maine will increase the requirements for the local program advisory committees (PAC). This will
encourage and promote stronger ties between the CTE training programs and industry. As a condition
of Perkins funding secondary PACs must adhere to the following guidelines:
       PAC meets at least annually- with a suggestion to meet during each semester.
       Membership must include teachers, business and industry partners, secondary and postsecondary
        constituents, students and other interested stakeholders
       Review current curriculum, suggest and approve changes to curriculum and course offerings and provide
        feedback on the success or failures of each program
       Conduct a comprehensive examination of the standards guiding the programs and the assessments to be
        used to determine technical skill attainment (national skills standards, state standards, or locally
        developed standards).
       Develop or review a plan to move the program to nationally recognized technical skills standards and
        assessments where they exist or state certifications/licensure.

Postsecondary Secondary Technical Skill Assessment
The Maine Community College system uses a variety of assessment methods for academic and skill
attainment:
    1. For programs that have professional accreditation or certification standards for the students, national
       standards are the basis for assuring that students are acquiring valid and reliable skills. For these
       programs, the standards are reviewed and confirmed by peer reviews which provide feedback for
       improvement, if needed. Student success on licensure or certification exams demonstrates that the
       students have mastered valid material and their success on these exams demonstrates reliability of the
       learning outcomes.
    2. For other programs, assessments are guided by various policies and procedures (e.g., Program Advisory
       Committees, established in accordance with Policy 306, Program Advisory Committees; Policy 302,
       Program Reviews; Policy 301, Program Planning and Discontinuance; and Policy 304, and Definition of
       Units of Credits and the associated Procedures). These policies and procedures are reviewed for
       reasonableness by the regional accrediting body, New England Association of Schools and Colleges
       (NEASC), Commission on the Institutions of Higher Education (CHIE) to assure that these are typical
       relative to peer institutions in the region. This regional accreditation review also looks at college policies
       and procedures, including student assessment techniques, to assure their reasonableness relative to
       peer institutions.

The Maine Community College system provides for:
   1. Professional development of career and technical faculty assuring that these faculty members are
       knowledgeable of technical advancements in their field of teaching. These faculty members can then
       integrate the appropriate information into the curricula to assure that the students are receiving valid and
       technically current information.
    2. Employer surveys are conducted on satisfaction with graduates hired, and graduate surveys are
       conducted on how well their program of study prepared the graduate for employment in their chosen field.
    3. Student success in their studies/graduation after transferring to a baccalaureate program with
       documented achievement from the receiving institution required to be included in the Transfer
       Agreement. This is particularly important for CTE students who choose to pursue a baccalaureate
       program in their major or a closely related field.

Maine will work towards compliance with the federal requirements for Technical Skill assessment.
Maine secondary education is in frequent contact with other New England states concerning technical
skill assessment.




                                                                                                       Page 8 of 16
Accountability-
     The secondary academic accountability measures are now tied to NCLB for the secondary
       schools, the Academic Attainment indicator will be determined by Maine‘s Annual Measurable
       Objectives (AMOs) from the State ESEA accountability notebook for NCLB. (ESEA, section
       1111(b)(2)(G))
     The secondary graduation rate is now calculated using the National Governors Association
       definition
     Technical skill attainment added
These accountability measures and more on student placement, nontraditional participation and
completion and student retention and completion at the postsecondary level are all part of the required
Consolidated Accountability Report (CAR). Sanctions will be imposed on state and local programs who
fail to meet 90% of an agreed upon goal. States and locals that do not meet the requirement will be
required to develop and implement an improvement plan. If no improvement is made or the program
fails to meet at least 90% of a performance level for 3 years in a row then a portion of Perkins funding
could be withheld.
                                             See attachment J
Perkins IV also requires states to negotiate with locals on the CAR indicators. The Maine DOE will
provide the State levels of performance to the eligible CTE schools and postsecondary schools in Maine,
and each eligible recipient will either accept those performance levels for itself or will negotiate with
the Maine DOE (if secondary) or the MCCS Director of State and Federal Programs (if postsecondary)
to develop its own local performance levels. All local levels of performance will be expressed as
percentages.
While legislation requires that we negotiate levels with the locals the guidance we have received has
indicated that the academic achievement and the graduation rate needs to be consistent with the state
agreed upon percentage. They have also indicated that in year 1-5 it the locals will be strongly
encouraged to use the state agreed upon percentages in the other indicators also. Maine has
developed a negotiation plan and it is attached to these instructions
                                             See attachment K
Once the levels of performance are agreed upon, each eligible recipient will include the negotiated
levels of performance in its local plan. All levels of performance will require the eligible recipient to
make continuous progress toward the goal of improving education for CTE students as measured by
the core indicators. Each eligible recipient shall identify levels of performance for each of the first two
program years covered by the local plan.

Grant recipients are strongly encouraged to use their Perkins funds to reach the agreed upon
performance indicators. A consultant from the Maine DOE will be contacting the secondary CTE
schools to start the levels of performance agreements.




                                                                                                Page 9 of 16
                                  Compliance

Priority uses of funds

   Academic Attainment / Credential, Certificate or Degree (1S1, 1S2, 2P1)

              1.   Programs of Study
              2.   Academic and Technical Integration
              3.   Academic and Technical Rigor
              4.   Literacy and Numeracy Initiatives
              5.   Curriculum Development

   Placement (5S1, 4P1)

            1.     Secondary/Postsecondary Articulation (Dual Enrollment, Escrow Credit and
                   Enhanced)
            2.     Apprenticeship
            3.     Relationships with Business and Industry
            4.     CTE Student Career Guidance and Counseling

   Services for Special Populations (Maine State Performance Measure – Special Populations)
           1.    CTE Special Population Student Support
           2.    Compliance with Maine ―State Standards of Service for Special Populations‖

   Nontraditional Careers (6S1, 6S2, 5P1, 5P2)
          1.    Nontraditional training
          2.    Increase Nontraditional Occupation

   Completion/Graduation/School Retention and Transfer (3S1, 4S1, 4P1)
          1.   CTE Student Organizations (Skills USA, DECA, HOSA, FFA, etc.)
          2.   CTE Student Retention and Transfer
          3.   CTE Program Development/Enhancement

   Collaboration Plan (Maine State Performance Measure – Collaboration)
           1.    Perkins and CTE Awareness
           2.    Collaboration with WIA and other Federal agencies

   Evaluation (Maine State Performance Measure – Evaluation)
            1.       Common Program Evaluation Tool
            2.       Updates to assure CTE Programs are current with Technological Changes
            3.       Program Advisory Committees
            4.       School Review (secondary)

   Skill Attainment (2S1, 1P1)
              1.   Skill Assessments
              2.   Program Technology Improvements




                                                                                Page 10 of 16
           Professional Development Plans
           (Maine State Performance Measure – Professional Development)
                    1.     In service and pre service training for CTE staff
                    2.     CTE Faculty stay Current with Industry
                    3.     Faculty Internships that provide relevant business experience
                    4.     Integration of Technology in the classroom
                    5.     Recruitment and Retention of CTE faculty and staff
                    6.     CTE personnel transition from business and industry to education

           Accountability
           (Maine State Performance Measure – Accountability)
                    1.    State and Local Negotiations
                    2.    Data Structures to meet CARS Measures


Perkins IV State Requirements
   • Mandatory program advisory responsibilities
          PAC meets at least annually
          Membership must include teachers, business and industry partners, secondary and postsecondary
             constituents, students and other interested stakeholders
          Review current curriculum, suggest and approve changes to curriculum and course offerings and
             provide feedback on the success or failures of each program
          Review current program assessments to ensure that the technical skills required for the program are
             assessed and have a third party endorsement.
          Conduct a comprehensive examination of the standards guiding the programs and the assessments
             to be used to determine technical skill attainment (national skills standards, state standards, or
             locally developed standards).
          Develop or review a plan to move the program to nationally recognized technical skills standards
             and assessments where they exist or state certifications/licensure.

   •   Common evaluation tool
              o Maine Department of Education will require that each school develop a program
                  evaluation tool to review all CTE programs within the local school an annual basis.
   •   Exploratory Programs
              o Maine will research the possibility of offering exploratory CTE programs. Interest
                  has been expressed by several schools to offer exploratory programs as part of a
                  sequence of courses. An exploratory CTE program is a CTE program that offers a
                  student a chance to look at several different CTE programs. This exploratory
                  program then becomes a component of a sequence of courses of the related specific
                  CTE programs that are offered for exploration.
   •   School review- staff contribution by participating Maine review schools
          Schools that choose to be reviewed using the Maine Department of Education
            Comprehensive School Review (CSR) process are required to provide a pre-determined
            percentage of staff per year to participate in the review of other CTE schools. In order to
            receive Perkins IV funds schools must participate in either a NEASC review or CSR.
   •   Apprenticeship
          Secondary-Expand pre-apprenticeship opportunities
             Require that each secondary CTE school make students aware of Pre-apprenticeship
                opportunities
             Require that each CTE school have contact with MDOL Pre-apprenticeship program
                representative each school year

                                                                                                Page 11 of 16
               Postsecondary- expand apprenticeship opportunities
                 Require that each Postsecondary CTE school make students aware of apprenticeship
                   opportunities
                 Require that each Postsecondary CTE school have contact with MDOL apprenticeship
                   program representative each school year


Other compliance requirements

      Administration – 5% ceiling-secondary Postsecondary –MCCS office
                 ‗‗(d) ADMINISTRATIVE COSTS.—Each eligible recipient receiving funds under this
                 part shall not use more than 5 percent of the funds for administrative costs associated
                 with the administration of activities assisted under this section.

      Required uses of funds –Perkins Law- section 135

       Maine is a small state and the amounts the grantees receive will not cover all of these
       requirements. It is allowable to use state and local funds to meet the required uses of funds to
       be eligible for Perkins funding. If a grantee can document compliance with the required uses of
       funds then permissive uses of funds may be used.


      Cost principles and allowable costs determined by OMB circulars A-87 for secondary CTE
       schools and A-21 for postsecondary school

                                  See Attachment L — A-87 – Secondary
                                See Attachment M — A-21 – Postsecondary


      Rule of authority – the regulation that is the most rigorous is the document that the grantee
       needs to comply with. Federal Perkins requirements are the final rule when in doubt.
            o    CTSO-  student leadership-
                       State Leadership funds can be spent on
                       leadership workshops
                       curriculum development
                       advisors
                       conferences in which the primary purpose is to disseminate technical information
                       support of student CTE organizations that are an integral part of the CTE
                        instructional program
            o    funds cannot be spent on
                      social assemblage and social conventions
                      purchase of items for students personal ownership
                      purchase of awards
                      Payment of membership dues
            o    Meals, meetings and conferences- costs are allowable if the primary purpose is the
                 dissemination of technical information

            o    All travel costs including meals, mileage and lodging must follow the State of Maine
                 guidelines for allowable costs and adhere to the Federal amounts allowed per state and
                 county. Meal and lodging expenses are the per diem rates established by the United
                                                                                            Page 12 of 16
           States General Services Administration. Further guidance can be found at
           www.maine.gov/osc/travel/travelfaqs.htm.

   Foreign travel- funds cannot be used for foreign travel unless a grantee receives prior approval
    of the awarding agency- Federal DOE. Each trip requires a separate approval

   Two Project Progress Reports (PPR‘s) must be submitted to the Career and Technical Education
    grant manager over the course of the program year. These should outline progress made
    toward the goals stated in your proposal and toward fulfilling the requirements identified in the
    grant agreement. The deadlines for submission of PPR‘s are January 15 and June 30. These
    forms need to be completed and submitted online on the web based online grant system which
    can be accessed at www.4pcamaine.org. Failure to submit acceptable PPR‘s on a timely basis
    may result in suspension of payments. In addition,


   The department has instituted a cash management system to meet federal regulations
    regarding limitations on cash-on-hand among recipients of federal funds. Expenditure and cash
    balance reports will be required on a modified quarterly basis. Further information and forms for
    this requirement can be obtained from DAFS, Division of Finance. Failure to submit necessary
    reports on a timely basis for any given grant may result in suspension of all grant payments.


   Expenditures of Title I, Part C funds must be in accordance with the budget approved for this
    project. Any requests for deviation from that budget that exceed 10% per line category must be
    approved by the Division of Career & Technical Education prior to expenditure of funds. These
    forms (Project/Budget Adjustment Report) need to be completed online at the Carl Perkins
    grant site which can be found at www.4pcamaine.org


   If your approved budget allows for the purchase of equipment in excess of $500, such
    equipment must be reflected in a properly maintained inventory of federally funded equipment.
                                           See attachment N

   The program year runs from July 1 through June 30. All funds must be expended or
    encumbered by purchase order and/or contract by June 30. At the end of the program year,
    grant funds must be accounted for in detail on separate forms available on the online grant
    system. These forms must be completed and submitted by June 30. All unexpended balances
    must be returned to MDOE.

   No funds for the new fiscal year will be released until all previous progress and year-end reports
    have been filed and approved and any unexpended balances returned.


   Supplanting- Federal funds are to be used to supplement, improve or increase the quality of
    CTE services. Funds shall not be used to cover costs previously funded with state or local
    funds.




                                                                                        Page 13 of 16
                SEC. 311. FISCAL REQUIREMENTS.
                 ‗‗(a) SUPPLEMENT NOT SUPPLANT.—Funds made available under this Act for
                career and technical education activities shall supplement, and shall not supplant, non-
                Federal funds expended to carry out career and technical education activities and tech
                prep program activities.

        Funds cannot be used to serve students under grade seven
                ‗‗SEC. 315. LIMITATION FOR CERTAIN STUDENTS.
                ‗‗No funds received under this Act may be used to provide career and technical education
                programs to students prior to the seventh grade, except that equipment and facilities
                purchased with funds under this Act may be used by such students.


        Grantees must sign comply with the assurances that are a part of the grant application.

                                               Attachment O

Online Grant

The online application system has been developed to ensure that all required aspects of the Perkins
grant application are addressed. The system will guide you in providing all the required information in
Section 134.

     to Remember:
Things
    The blue bar is your link line
    Make sure you are in the right grant year, as FY08 will automatically come up
    You enter your data on the data entry page
    After you‘ve entered your data, go to the submission page link to go into the submission page
     menu
    To submit, you need to go to the bottom of each section and click submit and enter your PIN
     number
    An e-mail will be sent to your superintendent to certify your grant. When your superintendent
     certifies your grant application, it will then be forwarded to MDOE

                                               Attachment P

Allowable uses of Perkins funds

    Perkins IV Act
        o Required uses of funds (section 135)

                       strengthen the academic and career and technical skills of students participating
                        in CTE programs through the integration of academics with CTE programs
                        link CTE at the secondary level and postsecondary level, including by offering
                        the relevant elements of not less than 1 career and technical program of study
                        described in section 122I(1)(A);
                        provide students with strong experience in and understanding of all aspects of
                        an industry, which may include work-based learning experiences;
                       develop, improve, or expand the use of technology in career and technical
                        education, which may include—

                                                                                             Page 14 of 16
                   training of CTE teachers, faculty, and administrators to use technology,
                    which may include distance learning;
                 providing CTE students with the academic and career and technical skills
                    that lead to entry into the technology fields
                 encouraging schools to collaborate with technology industries to offer
                    voluntary internships and mentoring programs
          provide professional development programs that are consistent with section 122
           including in-service and pre-service training on
                 effective integration and use of challenging academic and CTE 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 CTE to ensure that such
                    teachers and personnel stay current with all aspects of an industry;
                 internship programs that provide relevant business experience; and
                 programs designed to train teachers specifically in the effective use and
                    application of technology to improve instruction;
          develop and implement evaluations of the CTE programs carried out with funds
           under this title, including an assessment of how the needs of special populations
           are being met;
           initiate, improve, expand, and modernize quality career and technical education
           programs, including relevant technology;
          provide services and activities that are of sufficient size, scope, and quality to be
           effective; and
          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.

                                            Attachment Q


o   PERMISSIVE.—Funds made available to an eligible recipient under this title may be
    used—
        to involve parents, businesses, and labor organizations as appropriate, in the
          design, implementation, and evaluation of career and technical education
          programs
        to provide career guidance and academic counseling for students participating in
          career and technical education programs
        to provide programs for special populations;
        to assist career and technical student organizations;
        for mentoring and support services;
        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 skill achievement;
        for teacher preparation programs that
               address the integration of academic and career and technical education

                                                                                  Page 15 of 16
            assist individuals who are interested in becoming career and technical
             education teachers and faculty, including individuals with experience in
             business and industry;
   to develop and expand postsecondary program offerings at times and in formats
    that are accessible for students, including working students, including through
    the use of distance education;
   to develop initiatives that facilitate the transition of subbaccalaureate career and
    technical education students into baccalaureate degree programs
   to provide activities to support entrepreneurship education and training;
   for improving or developing new career and technical education courses,
    including the development of new proposed career and technical programs of
    study
   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 postsecondary credit to count towards an associate or
    baccalaureate degree
   to develop and support small, personalized career-themed learning communities
   to provide support for family and consumer sciences programs;
   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;
   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.);
   to support training and activities (such as mentoring and outreach) in non-
    traditional fields;
   to provide support for training programs in automotive technologies;
   to pool a portion of such funds with a portion of funds available to not less than
    1 other eligible recipient for innovative initiatives listed in section 135 (19)
   to support other career and technical education activities that are consistent with
    the purpose of this Act.

                           Attachment R




                                                                          Page 16 of 16
ATTACHMENT A
   Formula Document
Estimation of Funds FY09
                              Attachment A – Estimation of Funds

                 Distribution of Title 1 I Vocational Funds to Eligible Recipients
               For the July 1, 2008 – June 30, 2009 Program Year Under Section
                             131 and 132 of the Carl D. Perkins Act
                   ESTIMATES - MAY NOT BE AMOUNT AWARDED IN FY09

                                          FY08 TOTAL          CARRY         TOTAL FUNDS
                                         CENSUS DATA          OVER          CENSUS DATA
        SECONDARY FUNDS                                                        FY2008

        Augusta                              $142,972.00           5695         $148,667.00
        Bath                                  $69,901.00           2784          $72,685.00
        Biddeford                             $98,345.00           3917         $102,262.00
        Bridgton                              $58,938.00           2348          $61,286.00
        Calais                                $35,806.00           1426          $37,232.00
        Caribou                               $35,006.00           1395          $36,401.00
        VanBuran (Caribou Fiscal)              $9,069.00            361           $9,430.00
        Dexter                               $103,994.00           4142         $108,136.00
        Ellsworth                             $89,862.00           3580          $93,442.00
        Farmington                            $76,731.00           3056          $79,787.00
        Lewiston                             $211,700.00           8431         $220,131.00
        Machias                               $51,190.00           2039          $53,229.00
        Portland                             $225,700.00           8989         $234,689.00
        Presque Isle                          $41,041.00           1635          $42,676.00
        Sanford                              $171,854.00           6845         $178,699.00
        Skowhegan                             $94,727.00           3773          $98,500.00
        St. John Valley                       $26,726.00           1065          $27,791.00
        Waterville                           $122,102.00           4863         $126,965.00
        Westbrook                            $136,373.00           5432         $141,805.00
        Region 2                              $47,864.00           1907          $49,771.00
        Region 3                              $50,624.00           2016          $52,640.00
        Region 4                             $164,690.00           6560         $171,250.00
        Region 7                              $63,782.00           2541          $66,323.00
        Region 8                              $81,885.00           3262          $85,147.00
        Region 9                              $53,355.00           2125          $55,480.00
        Region 10                             $70,745.00           2818          $73,563.00
        Region 11                             $50,079.00           1995          $52,074.00
        TOTAL SECONDARY                    $2,385,061.00      $95,000.00      $2,480,061.00
        POST SECONDARY FUNDS
        Maine CC System                    $2,385,061.00      $95,000.00      $2,480,061.00

        TOTAL TITLE I I                    $4,770,122.00     $190,000.00      $4,960,122.00
DRAFT – FOR DISCUSSION ONLY – THESE FIGURES IN NO WAY OBLIGATE THE MDOE TO HONOR THESE AMOUNTS
ATTACHMENT B
Local Application Timeline
                          Attachment B – Local Application Timeline

                    Carl D. Perkins State Plan — Local Application
                               Timeline — Spring 2008
   March 12- State plan review by state board

   March 12-April 11- state plan completion
       o Incorporate additional info requested from state board
       o Incorporate edits from Compliance officer- Susan Corrente
       o Final review of the online grant system and the online grant library
       o Website development to provide info to the field

   April 11- send out approved plan to CTE secondary directors, Postsecondary directors, MDOE staff

   April 11 – guidelines and instructions sent for local state plan development
        o Requirements in state plan
        o Approval Checklist
        o Instructions for application
                  Online grant
                  Compliance with yearend requirements
                  Guidance on new articulation and program of study requirement
                  Guidance on new professional development requirements
                  Guidance on Technical Skill assessment requirements
                  Compliance with advisory board participation
                  Guidance on program evaluation
                  Guidance on required school review
                  Guidance on apprenticeship
                  Negotiation plan for accountability measures
                  Guidance on Special Populations requirements
                  Compliance with section 135 required uses of funds
        o Timelines for local grants

   April 18- Online grant system Live -for narrative only

   No later than April 1, 2008 — Submission of Maine State Plan for Career and Technical Education sent to
    the Federal Department of Education


   May 23- Postsecondary grants due to the System Office


   June 6-Postsecondary Grants due to MDOE


   June 6- Secondary grants due to MDOE



               th
    June 30 - Grant approval from MDOE



          st
    July 1 -FY09 begins


No Carl Perkins funds can be spent until the local grant receives approval from MDOE. If funds are
encumbered before substantial approval Perkins funds cannot be journaled back to cover those costs even if
the costs where approved activities. (Per CFR 34-Edgar)
ATTACHMENT C
Perkins III to Perkins IV
                              Attachment C – Perkins III to Perkins IV


                             Perkins III to Perkins IV

             Carl D. Perkins Career and Technical Education Act of 2006
                                     P.L.109-270
„„SEC. 2. PURPOSE.
       ‗‗The purpose of this Act is to develop more fully the academic and career and technical skills of
       secondary education students and postsecondary education students who elect to enroll in career and
       technical education programs…‖

MAJOR CHANGES IN FEDERAL GRANT REQUIREMENTS
   • Programs of Study requirement
   • Increased emphasis on articulation
   • Increased emphasis on Teacher development
   • Increased accountability-NCLB, technical skills
   • Increased emphasis on academic and technical integration
   • Tech Prep can roll into basic grant
   • Adult Ed funding as a recipient unallowable
   • Special pops moved from permissive to required uses of funds
STATE GRANT SUBMISSION CHANGES
   • Program of Study process defined and required for funding
         The State of Maine has determined that its programs of study will be planned sequences of courses
           that integrate high quality core academic knowledge, and are coherent and rigorous in content,
           aligning challenging academic standards with technical and occupational skills and knowledge to
           provide secondary CTE students with a pathway to postsecondary CTE education and career goals.
           Each school will be required to have one Program of Study implemented by year one of the grant.
   • Articulation requirements increased and strengthened
         Required Articulation and enhanced articulation agreements
            10% increase each year on articulation agreements
            3 enhanced in grant timeframe
   • Professional development emphasized
         Develop and Implement Professional Development on CTE and Academic program Integration
            Literacy, Numeracy, Revised MLR‘s, Collaboration with other federal initiatives
            Professional Development-technical skill attainment- MDOE and CTE Schools
            Professional Development-statewide-teacher training-MDOE and CTE schools
            Teacher Development-retention and recruitment
   • NCLB performance indicators used for accountability measures
   • Technical skills assessments required
         Under the direction and guidance of CTE school directors, instructors and directors are examining
           nationally recognized skills standards and may adopt the standards and the student assessment of
           those standards. Some of the CTE programs are currently nationally certified to teach to national
           standards, and use the industry recognized national assessments to determine skill attainment.
            Research and discuss secondary program specific Nationally Recognized Technical Skill
                (NRTS) standards and certification
            Identify the National and State defined skills standards in both secondary and postsecondary
                CTE program areas
            Certify teachers and programs to teach national skill standards
            Research/develop/adopt secondary and postsecondary technical skills assessment
             Develop and implement a plan to meet the federally recognized assessment standards for both
              secondary and postsecondary CTE education

•   National skill accountability pertaining to standards and assessments, defined
    Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
      The CTE program approval process
           A component within this process will be identifying which standards will be used to guide the
               program and which assessments were used to determine technical skill attainment. The
               applicants will also have to provide a plan to advance the program to nationally recognized
               standards and assessments where they exist or state certifications/licensure.
      Maine‘s Comprehensive School Review process for career and technical programs
           The review will include a comprehensive examination of the standards guiding the programs,
               the assessments to be used to determine technical skill attainment and the plan developed to
               advance the program the program to nationally recognized standards and assessments where
               they exist or state certifications/licensure.
      The local Program Advisory Committee program review.
           Conduct a comprehensive examination of the standards guiding the programs and the
               assessments to be used to determine technical skill attainment (national skills standards, state
               standards, or locally developed standards).
           Develop or review a plan to move the program to nationally recognized technical skills
               standards and assessments where they exist or state certifications/licensure.
•   Tech Prep funds rolled into the Basic Grant and distributed using the Title I(c) formula
•   Adult Education funding stream eliminated per requirement of the federal monitoring visit
•   Special Populations requirements strengthened
      All K-12 teachers in Maine must complete a―Teaching Exceptional Students in the Regular
          Classroom‖ course as part of the requirements for certification. Maine CTE teachers at each of the
          regions and centers are included in the Individual Education Plan (IEP) team meetings at the partner
          sending schools.
      CTE secondary and postsecondary schools are required to follow the guidance provided in The
          Maine State Standards of Service for Students Who Are Members of Special Populations.
      Services for special populations are embedded in all of the categories as integrated components, not
          as stand-alone programs.
•   Mandatory program advisory responsibilities
      PAC meets at least annually
      Membership must include teachers, business and industry partners, secondary and postsecondary
          constituents, students and other interested stakeholders
      Review current curriculum, suggest and approve changes to curriculum and course offerings and
          provide feedback on the success or failures of each program
      Review current program assessments to ensure that the technical skills required for the program are
          assessed and have a third party endorsement.
      Conduct a comprehensive examination of the standards guiding the programs and the assessments
          to be used to determine technical skill attainment (national skills standards, state standards, or
          locally developed standards).
      Develop or review a plan to move the program to nationally recognized technical skills standards
          and assessments where they exist or state certifications/licensure.
•   Common evaluation tool
      Maine Department of Education will require that each school develop a program evaluation tool to
          review all CTE programs within the local school on an annual basis.
•   Exploratory Programs
      Maine will research the possibility of offering exploratory CTE programs. Interest has been
          expressed by several schools to offer exploratory programs as part of a sequence of courses. An
          exploratory CTE program is a CTE program that offers a student a chance to look at several
          different CTE programs. This exploratory program then becomes a component of a sequence of
          courses of the related specific CTE programs that are offered for exploration.
    •   School review- staff contribution by participating Maine review schools
          Schools that choose to be reviewed using the Maine Department of Education Comprehensive
            School Review (CSR) process are required to provide a pre-determined percentage of staff per year
            to participate in the review of other CTE schools. In order to receive Perkins IV funds schools must
            participate in either a NEASC review or CSR.

    •   Apprenticeship
          Secondary-Expand pre-apprenticeship opportunities
              Require that each secondary CTE school make students aware of Pre-apprenticeship
                 opportunities
              Require that each CTE school have contact with MDOL Pre-apprenticeship program
                 representative each school year
          Postsecondary- expand apprenticeship opportunities
              Require that each Postsecondary CTE school make students aware of apprenticeship
                 opportunities
              Require that each Postsecondary CTE school have contact with MDOL apprenticeship program
                 representative each school year

                                           Timeline for Perkins IV Grant
                                 Carl D. Perkins Career and Technical Education Act of 2006
                                                      P.L.109-270
May 2007                                          Transition Plan submitted to OVAE
October 15, 2007                                  Stakeholders‘ Meeting
October – November 2007                           5-Year plan draft
December 6, 2007                                  2nd Stakeholders‘ Meeting – review draft
December 2007-January 2008                        Draft revisions
December                                          Notices of hearing in Bangor Daily News, Kennebec Journal, Portland
                                                  Press Herald, and Lewiston Sun-Journal
February 1, 2008                                  Presentation to the Maine Jobs Council
February 8, 2008                                  Public Hearing
February 13, 2008                                 Preliminary Presentation to State Board of Education
March 12, 2008                                    Final Presentation to State Board of Education State Board Chair sign
                                                  off
April 2008                                        Submission of 5-year plan to OVAE

                                               Budget IV Breakdown
        85%-allocated to secondary and postsecondary eligible recipients
            8.5 reserve-10% of the 85% can be used for targeted initiatives
            76.5% allocated to grantees by formula
                   o 50% secondary
                   o 50% postsecondary
            10% for state leadership activities
                   o 1% for Corrections
                   o 9% for state leadership expenses
                             $60,000-$150,000 for non-trad services
            5% for administrative costs
                   o Required dollar for dollar state administrative match

                                        Perkins IV Eligible Recipients Formulas
        Formula Allocations
        The split between secondary and postsecondary will continue to be 50%-50%. Maine has elected to
        combine its tech prep funds with its basic state grant. Under Perkins III, the tech prep funds were given to
        the Maine Community College System to carry out the activities under Title II. Now that the funds are
        combined, each system will be responsible for tech prep activities. Since the onus is on both secondary
        and postsecondary, equally, to improve programs, adopt standards, and develop statewide Articulation
        Agreements and CTE Program of Study Agreements, it is logical that each would have half the funds to
        support its activities.

        Secondary Level Formula
        The funds will be distributed to the local eligible recipients at the secondary level by the formula
        described in the Act:
             30% of the funds will be distributed to the 26 sites in proportion to the total numbers of young
                people ages 5 through 17 determined by the U.S. Census as living in the school districts of the
                sending schools of each site; and
             70% of the funds allocated among the sites in proportion to the total numbers of young people
                ages 5 through 17 determined by the U.S. Census as living in poverty in the school districts of the
                sending schools of each site. (see http://www.census.gov/housing/saipe/)

        Postsecondary Level Formula
        The funds at the postsecondary level will be distributed to the 7 colleges by formula based on Pell Grant
        Awards, TANF recipients and U.S. Census data:

               60% - Pell Awards (reported by colleges)
               10% - Poverty Status (from U.S. Census)
               10% - TANF Recipients (from Maine Department of Health and Human Services)
               10% - Handicapped (from U.S. Census)
               10% - Minority (from U.S. Census)

                                                  Perkins IV Definitions

SEC.3„„(14) ELIGIBLE RECIPIENT.
The term ‗eligible recipient‘ means—
        ‗‗(A) a local educational agency (including a public charter school that operates as a local educational
        agency), an area career and technical education school, an educational service agency, or a consortium,
        eligible to receive assistance under section 131; or
        ‗‗(B) an eligible institution or consortium of eligible institutions eligible to receive assistance under
        section 132

For the state of Maine this definition allows funds to flow to secondary CTE schools and postsecondary
Community Colleges per the federal monitoring visit July 2006

                                         Perkins IV Work plan
                                  FEDERAL PERFORMANCE MEASURES

                                         Perkins IV Performance measure
                                         Academic Attainment - 1S1, 1S2
       Secondary - Literacy Initiatives
            o Mentor training, Literacy workshops, Promising Practices initiative, Leadership training,
                Technical skill test analysis
       Secondary - Academic Integration –high school reform
       Postsecondary-Academic Integration-current and expand with POS
       Secondary - Numeracy Initiative – partnering with MDOE work across content areas
                                          Perkins IV Performance measure
                                       Technical Skill Attainment - 2S1, 1P1
       Equipment acquisition and new program start up- keep Maine CTE current with industry needs
       Secondary - Nationally Recognized Technical Skill (NRTS) certification research
       Secondary-Program specific CTE discussion- Nationally Recognized Technical Skill Standards
       Secondary and postsecondary-research/develop/adopt technical skills assessment
   Secondary and postsecondary-Develop and implement a plan to meet the federally recognized assessment
    standards
                                   Perkins IV Performance measure
                          School Completion, retention and transfer - 3S1, 3P1
   Methods of Administration site visits
   Articulation/Dual Enrollment (Secondary/Postsecondary) requirement
   Special Population services
   Career and Technical Student Organizations (CTSOs)
                                   Perkins IV Performance measure
                     Graduation Rates, Credential, Certificate or Degree - 4S1, 2P1
   Secondary – Research grade 9-12 programs
   Secondary – Research exploratory programs as part of a career pathway
   Programs of Study secondary to postsecondary
   High school diploma and program completion –CTE a partner in high school redesign

                                     Perkins IV Performance measure
                                          Placement - 5S1, 4P1
   Secondary and Postsecondary- continue with current initiatives
   Required Articulation and enhanced articulation agreements
   Stronger ties with Business and Industry
   Explore data collection possibilities
   Secondary-Expand pre-apprenticeship opportunities
   Postsecondary- expand apprenticeship opportunities
   Student Retention

                                    Perkins IV Performance measure
                             Nontraditional Placement - 6S1, 6S2, 5P1, 5P2
   Nontraditional exploratory events
   Postsecondary gender equity and childcare programs
   8.5% initiatives



                              STATE PERFORMANCE MEASURES

                    State of Maine Performance Measure - Business and Industry
   Mandatory Program advisory committee requirements

                          State of Maine Performance Measure - Evaluation
   Program Evaluation and Improvement
       o Annual program review – at the local level
       o Participation of the PAC
       o Common evaluation instrument for all programs – developed at the local level
       o Comprehensive School Review every 5 years

                  State of Maine Performance Measure - Professional Development
   Develop and Implement Professional Development on CTE and Academic program Integration Literacy,
    Numeracy, Revised MLR‘s, Collaboration with other fed. initiatives, Professional Dev.-technical skill
    attainment- MDOE and CTE Schools, Professional Development-statewide-teacher training-MDOE and
    CTE schools

                        State of Maine Performance Measure - Data Collection
      Data collection, analysis and use-maintain current collection (statewide data collection MDOE)
           o Academic Attainment
           o Graduation rate
           o School completion
           o Placement
           o Nontraditional placement
      Gather data on technical skill attainment
           o MDOE will comply with federal regulations as determined and required
      Collaborate with other agencies to obtain information on high skill, high wage, high demand occupations
           o Information available on an annual basis
           o Maine Jobs Council, as the State Workforce Investment Board, will review data from the Center
               for Workforce Research & Information (CWRI) and generate a targeted list of occupations for the
               Competitive Skills Scholarship Program (CSSP)
           o Maine Department of Labor will make this information available on their website.
           o MDOE, local secondary directors and postsecondary staff will attend and participate in State and
               national conventions to attain information on current or emerging occupational opportunities.
           o

                               State of Maine Performance Measure - Collaboration
       Secondary collaboration
            o Local grantees will develop procedures to ensure coordination and non-duplication among
                programs
                     Programs of study, Local Workforce boards. other state and federal agencies
     Postsecondary collaboration
            o Local grantees will develop procedures to ensure coordination and non-duplication among
                programs
                     Programs of study, Local Workforce boards, Other state and federal agencies
                     Required collaboration with WIA
                              State of Maine Performance Measure - Accountability
     Negotiated state performance levels with Federal DOE
            o Negotiate the CAR indicators using the actual data figures on the Maine data collection system
            o Increase performance levels using activities in the work plan
     Negotiated local levels with State DOE
            o Develop negotiation process
            o Have locals provide performance measures if different than state agreed upon performance levels
                            State of Maine Performance Measure - Special Populations
     Special Populations
        Description of how grantees implement program strategies for Special Populations including how
individuals
            o Will be afforded equal access to all activities.
            o Will not be discriminated against on the basis of their status as members of special populations.
            o Will be provided with programs to meet or exceed State adjusted levels of performance.
            o Will be prepared for further learning and for high-skill, high-wage, or high-demand occupations.
            o How funds will be used to promote preparation for high-skill, high-wage, or high demand and
                non-traditional fields.

Maine Definitions for Program of Study
Program of Study (POS)
       A Program of Study is a planned sequence of courses that:
                integrates high quality core academic knowledge with technical and occupational skills and
                   knowledge in a coordinated, non-duplicative, progression of courses;
                provides secondary students with an aligned pathway to postsecondary education and career
                   goals;
            creates partnerships between secondary and postsecondary education;
            may include opportunities for the secondary student to participate in credit bearing articulated
             programs (dual, escrow, or enhanced) or other ways to acquire postsecondary education
             credits; and
            leads students to an industry recognized credential or certificate at the postsecondary level, or
             an associate or baccalaureate degree.

    The model for Maine‘s POS includes Career Clusters, Career Pathways, Program Requirements and
    Personal Learning Plans.
                                  Career and Technical Education
                                           Contact info
•   Lora Downing Lora.Downing@maine.gov
           Career and Technical Education
           Maine Department of Education
           State House Station #23
           Augusta, Maine 04333
           207-624-6740-work 207-441-2040-cell
•   Margaret Harvey Margaret.Harvey@maine.gov
           Career and Technical Education
           Maine Department of Education
           State House Station #23
           Augusta, Maine 04333
           207-624-6739-work 207-441-2936-cell
•   Website      www.schoolswork.org
   ATTACHMENT D
Articulation Agreement Template
                                            Attachment D
                                  Articulation Agreement Template




                                    Maine Department of Education
                                    Career and Technical Education
                                        23 State House Station
                                      Augusta, ME 04333-0023
                                            (207) 624-6730
                                        www.schoolswork.org

                           ARTICULATION AGREEMENT
 For the coordination of curricula between Maine’s Career and Technical Education Centers/Regions
                         and the Maine Community College System Campuses

Program Objectives

      To encourage career and technical education students to pursue a postsecondary education.
      To reduce repetition of mastered competencies between secondary career and technical
       education and Community College.
      To provide a smooth transition from secondary career and technical education to Community
       College education.
      To reduce student and state costs.

Role of the Institutions

The secondary career and technical education centers/regions and Community College campuses are
jointly responsible for developing and executing Articulation Agreements. Secondary and
postsecondary faculty should partner to identify competencies a student will need to successfully
transition into the professional/technical program(s) being articulated. As the needs of students and the
demands of business and industry change, it is reasonable to re-evaluate and update agreements on an
annual basis to reflect those changes in the curriculum.

Secondary and postsecondary faculties will agree upon competencies to be examined for the courses to
be articulated. They will jointly develop an Articulation Agreement listing the student requirements
needed to achieve the articulated credits. Instructors at the secondary and postsecondary levels will
meet annually to review course competencies and amend the Articulation Agreement as necessary.
The career and technical education centers/regions and Community Colleges will develop methods of
publicizing the Articulation Agreements to encourage students to take advantage of seamless transitions
and advanced placement opportunities. To benefit from articulation, all Community College admissions
requirements must be met by the student.

The State requires that a contact/position be identified by the individual postsecondary Community
Colleges and the individual secondary CTE schools to be responsible for the facilitation, record keeping,
and reporting on Articulation, Maine Enhanced Articulation and Program of Study Agreements.

Types of Articulation Agreements

   Dual Credit
   Dual credit exists when a student is enrolled in a secondary CTE program, as well as the
   corresponding Community College course at the same time. Students enrolled in dual credit courses
   earn college and high school credit by successfully completing these courses. The program is
   operated jointly by the career and technical center and community college and students receive credit
   at both institutions upon successful completion of dual credit courses. Final grades for dual credit
   courses are reflected on both the student‘s high school transcript and on the community college‘s
   permanent record.

   Escrow Credit
   Escrow credits become available when the student completes the secondary CTE program and then
   requests the Community College credit, once they are matriculated and have completed the
   Community College requirements to complete the articulation. Matriculated students are awarded
   college credit for the articulated course(s) following successful completion of a college‘s identified
   number of credit hours taken at the college. The escrow credit program is governed by a formal,
   written agreement that identifies courses or sequence of courses at a career and technical center
   which successful completion assures the Community College that the student has the necessary
   background, instruction and preparation to enable the student to progress to the next level of
   instruction at the Community College. These escrow credits are applied to a degree, but do not carry
   quality points. They are listed on a transcript as ―P‖ for passed.

Time Consideration
A student has up to three years to take advantage of the postsecondary credits made available under an
Articulation Agreement.
                              Articulation Agreement
1.   Secondary institution name:
2.    Postsecondary institution name:
3.    Secondary course of study:
4.    Postsecondary course of study:
5.    Secondary course(s) to be used for articulation:
6.   Postsecondary course(s) to waived because of articulation:
7.   Type of articulation:
     (please check)
          Dual Credit
          Escrow Credit
          Student choice of Dual Credit or Escrow Credit

8. What are the minimum and maximum number of credits a student may articulate from the
   postsecondary institution?

9. How will the student demonstrate meeting the competencies?

10. How will the secondary instructor document the student as meeting the competencies?

11. What are the education, training, and/or experience requirements for the secondary instructor?

12. What college entrance requirements must be met by the student?

We, the undersigned administrators, agree to enter into this Articulation Agreement to provide
students a seamless transition from high school instruction to Community College instruction.

We hereby mutually agree that this Articulation Agreement will remain in effect for a period of one
year.

We do hereby mutually agree to abide by all of the terms specified within the Articulation
agreement.

Secondary School Name                            Community College Name
___________________________                      ______________________________
Director Signature/Date                          Campus President Signature/Date
______________________________                   ______________________________
Secondary Instructor/Date                        Academic Dean/Date
______________________________                   ______________________________

                                                 Department Chair/Date
                                                 _____________________________

                                                 Postsecondary Instructor/Date
                                                 ______________________________
        ATTACHMENT E
Enhanced Articulation Agreement Template
                                        Attachment E
                           Enhanced Articulation Agreement Template




                                   Maine Department of Education
                                   Career and Technical Education
                                       23 State House Station
                                     Augusta, ME 04333-0023
                                           (207) 624-6730
                                       www.schoolswork.org

             ENHANCED ARTICULATION AGREEMENT
  For the coordination of curricula between Maine’s Career and Technical Education Centers/Regions
                                and the Maine Community College System
Enhanced Articulation defined
Enhanced Articulation is an articulation that is a systematically planned process linking a secondary
career and technical education school program to a postsecondary career and technical education system
program. Unlike the Articulation Agreement which can be institution to institution, the Maine Enhanced
Articulation Agreement is from secondary career and technical education school to postsecondary career
and technical education system. The postsecondary articulation will cross all Community Colleges
which offer the like career and technical education program. The secondary programs will have to meet
the requirements of the Community Colleges system wide articulation to qualify. Maine Enhanced
Articulation Agreements between secondary career and technical programs and postsecondary
institutions must allow students to earn a minimum of 3 college credits.
By July 1, 2009, one Maine Enhanced Articulation Agreement must be in place. All secondary and
postsecondary eligible recipients that offer the program chosen for enhanced articulation must
participate.

Program Objectives
    To encourage career and technical education students to pursue a postsecondary education.
    To reduce repetition of mastered competencies between secondary career and technical
      education and Community College.
    To provide a smooth transition from secondary career and technical education to Community
      College education.
    To reduce student and State costs.
    Allow secondary career and technical education students in any part of the State of Maine to
      smoothly transition to postsecondary education within the State Community College system.
Role of the Institutions
The secondary career and technical education schools and Community College campuses are jointly
responsible for developing and executing Maine Enhanced Articulation Agreements. Secondary and
postsecondary faculty should partner to identify competencies a student will need to successfully
transition into the professional/technical program(s) being articulated. As the needs of students and the
demands of business and industry change, it is reasonable to reevaluate and update agreements on an
annual basis to reflect those changes in the curriculum.

Secondary and college faculties will agree upon competencies to be examined for the courses to be
articulated. They will jointly develop a Maine Enhanced Articulation Agreement listing the student
requirements needed to achieve the articulated credits.

The career and technical education centers/regions and Community Colleges will develop methods of
publicizing the Maine Enhanced Articulation Agreements to encourage students to take advantage of
seamless transitions and advanced placement opportunities. To benefit from enhanced articulation, all
community college admissions requirements must be met by the student.

The State requires that a contact/position be identified by the individual postsecondary Community
Colleges and the individual secondary CTE schools to be responsible for the facilitation, record keeping,
and reporting on Articulation, Maine Enhanced Articulation and Program of Study Agreements.

Types of Maine Enhanced Articulation Agreements
   Dual Credit
   Dual credit exists when a student is enrolled in a secondary CTE program, as well as the
   corresponding Community College course at the same time. Students enrolled in dual credit courses
   earn college and high school credit by successfully completing these courses. The program is
   operated jointly by the career and technical center and Community College and students receive
   credit at both institutions upon successful completion of dual credit courses. Final grades for dual
   credit courses are reflected on both the student‘s high school transcript and on the Community
   College‘s permanent record.

   Escrow Credit
   Escrow credits become available when the student completes the secondary CTE program and then
   requests the Community College credit, once they are matriculated and have completed the
   Community College requirements to complete the articulation. Matriculated students are awarded
   college credit for the articulated course(s) following successful completion of a college‘s identified
   number of credit hours taken at the college. The escrow credit program is governed by a formal,
   written agreement that identifies courses or sequence of courses at a career and technical center
   which successful completion assures the Community College that the student has the necessary
   background, instruction and preparation to enable the student to progress to the next level of
   instruction at the Community College. These escrow credits are applied to a degree, but do not carry
   quality points. They are listed on a transcript as ―P‖ for passed.

Time Consideration
A student has up to three years to take advantage of the postsecondary credits made available under a
Maine Enhanced Articulation Agreement.
                     Enhanced Articulation Agreement
1. Secondary institution name:
2. Postsecondary institution name:
3. Secondary course of study:
4.  Postsecondary course of study:
5.  Secondary course(s) to be used for articulation:
6. Postsecondary course(s) to waived because of articulation:
7. Type of articulation:
   (please check)
        Dual Credit
        Escrow Credit
        Student choice of Dual Credit or Escrow Credit
8. What are the minimum and maximum number of credits a student may articulate from the
   postsecondary institution?

9. How will the student demonstrate meeting the competencies?

10. How will the secondary instructor document the student as meeting the competencies?

11. What are the education, training, and/or experience requirements for the secondary instructor?

12. What college entrance requirements must be met by the student?

We, the undersigned administrators, agree to enter into this Maine Enhanced Articulation Agreement
to provide students a seamless transition from high school instruction to Community College
instruction.

We do hereby mutually agree to abide by all of the terms specified within the Maine Enhanced
Articulation Agreement.

Secondary School Name                           Community College Name
_____________________________                   ______________________________
Director Signature/Date                         College President Signature/Date
______________________________                  ______________________________
Secondary Instructor/Date                       Campus President/Date
______________________________                  _____________________________
                                                Academic Dean/Date
                                                _____________________________
                                                Department Chair/Date
                                                _____________________________
                                                Postsecondary Instructor/Date
                                                ______________________________
 ATTACHMENT F
Program of Study Template
                                            Appendix F
                               Program of Study Agreement Template




                                    Maine Department of Education
                                    Career and Technical Education
                                        23 State House Station
                                      Augusta, ME 04333-0023
                                            (207) 624-6730
                                        www.schoolswork.org

                    PROGRAM OF STUDY AGREEMENT
 For the Program of Study between Maine’s Career and Technical Education Centers/Regions and the
                            Maine Community College System Campuses

   Maine CTE programs of study contain the following elements:

    Standards-based curriculum aligned to a national or State of Maine skill standard
    Rigorous academics blended and aligned to the “Learning Results-Parameters for Essential
     Instruction”
    Value-added options through industry certification or articulation for college credit
    Quality assurance to keep pace with industry requirements through industry advisory groups
    Accountability which is emphasized through Perkins grant requirements
    Multiple options for students as they prepare for entry into careers and further education


Program of Study Defined

A Program of Study is a planned sequence of courses that integrates high quality core academic
knowledge with technical and occupational skills and knowledge to provide secondary CTE students
with a pathway to postsecondary CTE education and career goals. The connection to future coursework
motivates students to take the courses to ensure success in postsecondary education and in careers.
Programs of Study lead to an industry recognized credential or certificate at the postsecondary level, or
an associate or baccalaureate degree. Programs of Study should be developed in partnership with
secondary schools, post-secondary schools, employers, industry groups and other stakeholders to create
curriculum to support academic, technical and workplace standards. An intended outcome of a program
of study is the enhanced collaboration between program stakeholders. Maine CTE programs of study
increase the academic, career and technical skills of students in order to prepare them for career, college
and citizenship. Maine‘s model of CTE organize programs of study within 15 broad career cluster
programs, designed to provide students with multiple career pathways leading to careers and
postsecondary education. At the secondary level, academic rigor is ensured through the connections to
“Learning Results-Parameters for Essential Instruction” (MLR) and No Child Left Behind (NCLB)
accountability measures. Each secondary and post-secondary institution is required to have one
program of study by July 1, 2008. Program of Study Agreements must be signed written agreements
and be approved annually by the administrators of the educational institutions; these agreements will be
signed by the instructors at the secondary and postsecondary levels and the administrators at both levels.
Programs of Study do not qualify as such if the agreement is signed by secondary CTE instructor to
postsecondary CTE instructor. All requirements for admission by the Community Colleges must be met
by the student.

The State requires that a contact/position be identified by the individual postsecondary Community
Colleges and the individual secondary CTE schools to be responsible for the facilitation, record keeping,
and reporting of articulation agreements, Maine enhanced articulation agreements and programs of
study.

Time Consideration
A student has up to three years to take advantage of the Program of Study made available under a
Program of Study Agreement.
           PROGRAMS OF STUDY PATHWAYS
Cluster Program    Secondary CTE Program                     Postsecondary CTE Program
                   By CIP Codes
Agriculture Food   01.0000 Agriculture/Agribusiness          Business Administration, Agriculture
and Natural        01.0205 Agriculture Mechanization,
                                                             Horticulture
Resources          General                                   Pulp and Paper Technology

                   01.0303 Aquaculture

                   01.0304 Crop Production Operations and
                   Management

                   01.0601 Horticulture Operations and
                   Management

                   01.0601 Applied
                   Horticulture/Horticulture Operations

                   03.0201 Natural Resource Management

                   03.0511 Forest Harvest and Product
                   Technology

Architecture and   15.1301     Architectural Drafting        Air Conditioning and Refrigeration
Construction       15.1301     Drafting, General             Architectural and Civil Engineering
                                                             Technology
                   15.1302     CAD/CADD Drafting and/or
                               Design
                                                             Architectural and Engineering Design
                               Technology/Technician
                                                             Building Construction
                   15.1303     Mechanical Drafting
                                                             Building Construction Technology
                   46.0000 Construction Trades/General
                                                             Construction Technology
                   46.0101 Mason and Tile Setter
                                                             Electrical Construction and
                   46.0201 Carpentry                         Maintenance
                                                             Environmental Science and
                   46.0201 Carpentry/Carpenter
                                                             Technology
                   46.0302 Electrician
                                                             HACRP
                   46.0302 Electrician/Electronics Repair,
                   General                                   Heating
                                                             Heating Technology
                   46.0503 Plumbing and Pipefitting
                                                             Masonry
                   46.0503 Plumbing Technology/Plumber
                                                             Plumbing
                                                             Plumbing and Heating
                                                             Plumbing Technology
                                                             Refrigeration, Air Conditioning and
                                                             Heating

                                                             Residential and Commercial
                                                             Electricity

                                                             Residential Construction
Arts, A/V          10.0202 Radio and TV Broadcast            Communication and News Media
                   Technology
Technology and                                               Digital Media
Communication      10.0301 Graphic Communications            Graphic Arts/Printing Technology
                   50.0101 Visual and Performing Arts,
Cluster Program   Secondary CTE Program                      Postsecondary CTE Program
                  By CIP Codes
                  General

                  50.0402 Graphic Design/Commercial
                  Art and Illustration

                  50.0402 Commercial and Advertising
                  Art

                  50.0602 Film, Video
                  Making/Cinematography and Production

                  50.0602 Data Processing Technology

Business,         32.0301 Parks and Recreational             Business Administration
                  Facilities
Management and                                               Business Administration and
Administration                                               Management
                  52.0201 Business Administration and
                  Management, General
                                                             Business Administration/Business
                                                             Management
                  52.0302 Accounting Technician
                  52.0399 Accounting, Other                  Business
                                                             Administration/Entrepreneurship
                  52.0401 Administrative Assistant/
                  Secretarial
                                                             Business Administration/Marketing
                  52.0401 Business Technology                Business Administration/Office
                                                             Management
                  52.0407 General Office/Clerical/Typing
                  Services
                                                             Business Administrative
                  52.0407 Information Processing/Data        Business Management
                  Entry Technician
                                                             Business
                                                             Management/Entrepreneurship
                  52.0407 Data Processing
                  Technology/Technician
                                                             Business Management/Office
                                                             Administration
                  52.0407 Administrative Assistant/
                  Secretarial
                                                             Business Management/Office
                                                             Technology
                  52.0407 Computer Tech II
                  52.04408 General Office/ Clerical/         Business Management/Small Business
                  Typing Services                            Development

                  52.0701                                    Executive Secretarial Science
                  Entrepreneurship/Entrepreneurial Studies
                                                             Legal Office Administration
                                                             Office Assistant
                                                             Organizational Leadership


Education and                                                Education
Training                                                     Education/Special Education
                                                             Education/Speech and Language
                                                             Education/Early Childhood
                                                             Early Childhood Education
                                                             Early Childhood Education Assistant
                                                             Paraeducation
Cluster Program   Secondary CTE Program                   Postsecondary CTE Program
                  By CIP Codes

Finance           52.0803 Banking and Financial Support   Accounting
                  Services
                                                          Accounting Information Systems
                                                          Business Administration/Accounting
                                                          Business Administration/Finance
                                                          Business Management/Banking


Health Science    51.0000 Health Services/Allied          Advanced Emergency Care
                  Heath/Health Sciences
                                                          Behavioral Health Tech.
                  51.0000 Nursing Assistant/Aide          Biological Sciences
                  51.0703 Health Unit Coordinator/Ward    Cardiovascular Tech
                  Clerk
                                                          Clinical Laboratory Science
                  51.0710 Medical Office Assistant/       Clinical Technician
                  Specialist
                                                          Dietetic Tech
                  51.1614 Nursing Assistant/Aide
                                                          Dietary Manager
                  51.2602 Elder Care Provider/Companion
                  Care                                    Emergency Medical Services
                                                          EMT-Intermediate
                                                          Health Care Secretary
                                                          Health Information Technology
                                                          Massage Therapy
                                                          Medical Assistant
                                                          Medical Assisting
                                                          Medical Coding
                                                          Medical Office Administration
                                                          Medical Office Management
                                                          Medical Office Technology
                                                          Medical Radiography
                                                          Medical Transcription
                                                          Mental Health
                                                          MHRT-1-C
                                                          MHRT-Community
                                                          Nursing
                                                          Nursing Practical
                                                          Occupational Health and Safety
                                                          Occupational Therapy Assistant
                                                          Paramedicine
                                                          Pharmacy Tech.
                                                          Physical Therapist Assistant
                                                          Practical Nursing
                                                          Radiation Therapy
                                                          Radiography
                                                          Radiologic Technology
                                                          Respiratory Therapy
Cluster Program   Secondary CTE Program                      Postsecondary CTE Program
                  By CIP Codes
                                                             Respiratory Therapy Assistant
                                                             Sonography
                                                             Surgical Technology


Hospitality and   12.0503 Culinary Arts/Chef Training        Adventure Recreation and Tourism
Tourism           12.0503 Kitchen Personnel/Cook and         Culinary and Baking
                  Assistant Training
                                                             Culinary Arts
                  12.0503 Food Production and                Food and Beverage Operations
                  Services/Workers and Administrators
                                                             Food Service Specialist
                  12.0503 Kitchen Personnel/Cook, and        Hotel/Restaurant Management
                  Assistant Training
                                                             Lodging and Restaurant Management
                  12.0503 Institutional Food Service         Lodging Operations
                  Administration
                                                             Restaurant and Food Management
                  12.0505 Food Preparation/Professional
                  Cooking/Kitchen Assistant

                  52.1910 Hospitality/Recreational
                  Marketing, General

Human Services    19.0709 Child Care Services/Workers
                  and Managers

                  19.0709 Child Care Provider/Assistant
                  32.0105 Job Seeking/Job Changing
                  Skills

                  32.0107 Career Exploration/Awareness
                  Skills

                  32.0107 Job Seeking/Job Changing
                  Skills

Information       10.0303 Desktop Publishing Equipment;      Business and Computer Applications
                  Operator
Technology                                                   Cisco Networking Specialist
                  10.0305 Graphic/Printing Equipment         Computer Aided Drafting and Design
                  Operator
                                                             Computer Aided Drafting and
                                                             Design/Architectural
                  11.0103 Computer and Information
                  Sciences, General
                                                             Computer Aided Drafting and
                                                             Design/Mechanical
                  11.0801 Data Processing Technology/
                  Technician
                                                             Computer Aided Drafting Tech.
                  50.0409 Digital Graphic Arts Desktop       Computer Applications and Admin.
                  Publishing Equipment Operator              Mgmt.

                  99.100 Cooperative Education               Computer Applications Technology
                  99.3001 Tech Lab                           Computer Electronics
                  99.3001 Intro to Technology                Computer Information Systems
                  99.4000 Tech Prep Academics                Computer Programming
                  99.4000 Multi/Interdisciplinary Studies,   Computer Repair Technology
                  Other
                                                             Computer Support Specialist
Cluster Program      Secondary CTE Program                     Postsecondary CTE Program
                     By CIP Codes
                     99.4000 Basic Skills, General             Computer Support Specialist with a
                                                               specialization in Networking
                     99.4000 English Language and
                     Literature
                                                               Computer Systems Technology
                     99.4000 Applied Academics/Plato           Computer Technology
                     99.4000 Academic Skills/Plato lab         Computer Technology/Network
                                                               Admin
                     99.4000 Applied Academics
                     99.7000 Vocational Special Needs          Computer Technology/Programming
                     99.7000 Diversified Occupations           Computer Technology/Web Dev.
                                                               Digital Media Technology
                                                               Information Technology
                                                               Office Information Specialist
                                                               Telecommunication Technology:
                                                               Verizon

                                                               Telecommunications (Verizon)

Law, Public Safety   43.0000 Protective Services Cluster       Criminal Justice
and Security         43.0000 Emergency Services                Fire Science
                     43.0107 Law Enforcement/Police            Fire Science Tech
                     Sciences

                     43.0107 Criminal Justice/Police Science


Manufacturing        48.0501 Machinist/Machine                 Applied Metal Manufacturing
                     Technologist
                                                               Drafting Tech.
                     48.0501 Machine Tool Technology           Electrical Lineworker Technology
                     48.0506 Sheet Metal Worker                Electromechanical Technology
                     48.0508 Welder/Welding Technologist       Industrial Electrical/Electronics Tech
                                                               Industrial Electricity
                                                               Instrumentation and Controls
                                                               Integrated Manufact. Technology
                                                               Machine Tool Technology
                                                               Mechanical Engineering Technology
                                                               Pipe Fabrication
                                                               Precision Machining Technology
                                                               Precision Metal Manufacturing
                                                               Precision Metals Manufacturing
                                                               Trade and Technical Occupations
                                                               Welding
                                                               Welding and Metal Fabrications
                                                               Welding Technology


Marketing, Sales     47.0101 Electrical/Electronics
                     Equipment Repair
and Service
                     47.0104 Computer Installer and Repairer
Cluster Program    Secondary CTE Program                   Postsecondary CTE Program
                   By CIP Codes
                   47.0104 Computer Technology
                   47.0104 Computer Installation and
                   Repair

                   47.0104 Data Processing Technology
                   47.0606 Small Engine Mechanic/
                   Repairer

                   52.1801 Sales, Distribution and
                   Marketing Operations, General

                   52.1803 General Retailing Operations


Science,           15.0000 Engineering                     Applied Marine Biology/Ocean
                   Technology/Technician
Technology ,                                               Applied Technical Studies
Engineering and    15.0613 Tech Lab                        Applied Electronics and Computer
Mathematics                                                Technology
                   41.0101 Biological Technologies
                                                           Biotechnology
                                                           Boatbuilding Technology
                                                           Electrical and Automation Technology
                                                           Electrical Engineering Tech.
                                                           Electricians Technology
                                                           Electronics Tech.
                                                           General Technology
                                                           Marine Composites
                                                           Marine Electronics
                                                           Marine Mechanics Technology
                                                           Marine Technology with a
                                                           Specialization in Boatbuilding

                                                           Technical and Trade Studies
                                                           Trade and Technical
                                                           Trade and Technical Occupations
                                                           Trade/Technology Occupations

Transportation,    47.0302 Heavy Equipment/Diesel          Auto Body Repair
                   Mechanic Repairer
Distribution and                                           Automotive Parts and Service
Logistics                                                  Management
                   47.0302 Heavy Equipment Maintenance
                   and Repair
                                                           Automotive Technology
                   47.0603 Automotive Body Repair          Civil Engineering
                   47.0604 Automotive Mechanic/            Diesel and Hydraulics
                   Technician
                                                           Diesel Hydraulic Technology
                   47.0604 Automobile/Automotive           Diesel, Truck and Heavy Equipment
                   Mechanics Technology                    Engine Specialist

                   47.0616 Marine Maintenance/Fitter and   Ford Asset (Automotive Technology)
                   Ship Repairer
                                                           Heavy Equipment Operation
                   49.0202 Construction Equipment          Heavy Equipment Maintenance
                   Operator
         Cluster Program      Secondary CTE Program                 Postsecondary CTE Program
                              By CIP Codes
                                                                    Heavy Equipment Systems
                              49.0205 Truck/Bus/Other Commercial
                                                                    Mechanical Technology
                              Vehicle Driver
                                                                    Mechanical Technology with a
                                                                    Specialization in Vehicle Service




                                      Program of Study
Secondary School Name:

Cluster Program:

Course Title and CIP Code:

Please indicate, in the table below, the secondary courses a student would need to complete as part
of this program of study.


GRADUATION   GRADE 9                      GRADE 10                 GRADE 11               GRADE 12
REQUIREMENTS
English

Social Studies

Mathematics

Science and
Technology
Physical and Health
Education
Visual and
Performing Arts
World Languages

CTE Course

Other
Please indicate, in the table below, the value added options a student may earn for completing this
program of study.

OPTION                  PARTNER                CREDENTIAL              VALUE FOR CTE
                                                                       STUDENTS
Example: Dual Credit Northern Maine            AS in Early             Up to 8 credits hours
                     Community College         Childhood Education     earned



OPTION                  PARTNER                CREDENTIAL              VALUE FOR CTE
                                                                       STUDENTS
Dual Credit

Escrow Credit

Enhanced Articulation

Certification(s)

Degree

Other
Two Year College Program Sequence

Program Title:

College:


Please indicate, in the table below, the postsecondary courses for the program of study. Indicate which
courses may receive articulated credit by placing them in the possible articulated credit section.

Semester 1                                         Semester 2




Possible articulated credit courses:               Possible articulated credit courses:




Semester 3                                         Semester 4




Possible articulated credit courses:               Possible articulated credit courses:




Provide a list of examples of the careers students are preparing to enter:




   We, the undersigned administrators, agree to enter into this Program of Study Agreement to provide
   students a seamless transition from high school instruction to Community College instruction.
We hereby mutually agree that this Program of Study Agreement will remain in effect for a period of
one year.

We do hereby mutually agree to abide by all of the terms specified within the Program of Study
Agreement.

Secondary School Name                          Community College Name

______________________________                 ______________________________

Director Signature/Date                        Campus President Signature/Date

______________________________                 ______________________________

Secondary Instructor/Date                      Academic Dean/Date

______________________________                 ______________________________

                                               Department Chair/Date

                                               _____________________________

                                               Postsecondary Instructor/Date

                                               ______________________________
ATTACHMENT F-a
Program of Study Definition
Maine Definitions

Program of Study (POS)
    A Program of Study is a planned sequence of courses that:

           integrates high quality core academic knowledge with technical
            and occupational skills and knowledge in a coordinated, non-
            duplicative, progression of courses;

           provides secondary students with an aligned pathway to
            postsecondary education and career goals;


           creates partnerships between secondary and postsecondary
            education;


           may include opportunities for the secondary student to
            participate in credit bearing articulated programs (dual, escrow,
            or enhanced) or other ways to acquire postsecondary education
            credits; and


           leads students to an industry recognized credential or certificate
            at the postsecondary level, or an associate or baccalaureate
            degree.


     The model for Maine‘s POS includes Career Clusters, Career Pathways,
     Program Requirements and Personal Learning Plans.

NOTE: Those schools using Federal Perkins IV funding must comply with the
requirement that funds are only spent on Career and Technical programs and
students.
Career Clusters
     16 Nationally developed groupings of occupations and industries that
have similar core elements.

Career Pathways
      Career Pathways narrow and specify a broad cluster grouping; they
include related occupations that have similar core elements. Each career
cluster has 2-7 different career pathways.

Program Requirements
      Specific coursework determined by a school that guides students through
a secondary to postsecondary career pathway.

Personal Learning Plan (PLP)
      An individualized program of study guided by the schools‘ program
requirements, grades 9-16+
 ATTACHMENT F-1
          Sample 1
Career Clusters – Automotive
   ATTACHMENT F-2
            Sample 2
Central Maine Community College
Building Construction Technology
                                        This sequence of courses results in a Certificate in Building Construction Technology

                                                    Central Maine Community College with course work beginning
                              9th    10th    11th     12th    Semester I                                 Semester 2                                   Transfer Options

         English                                                                                                  ENG 101* College Writing

    English: Literature

  Social Sciences/History

   Science/Engineering
                                                                                                              MAT 105 Geometry and
       Mathematics                                                  MAT 100 * Intermediate Algebra
                                                                                                              Trigonometry
   Arts and Humanities

      Physical Health

Business/ Computer Literacy
                                                                 BCA 120 Introduction to Computer                 BCT 128 Basic Strength of
Career and Technical Course
                                                                            Applications                                 Materials
                                                              BCT 101 Introduction to Hand and Power
Career and Technical Course
                                                              Tool Safety                                     BCT 133 Roofing
Career and Technical Course                                            BCT 106 Concrete Forms
                                                                                                              BCT 134 Siding
Career and Technical Course                                             BCT 107 Floor Framing                      BCT 135 Roof Framing

Career and Technical Course                                             BCT 108 Wall Framing                     BCT 136 Exterior Roof Trim

Career and Technical Course                                       BCT 126 Construction Site Surveying            BCT 138 Doors and Windows

Career and Technical Course                                     BCT 127 Introduction to Residential CAD

Career and Technical Course

                                       * Course placement determined by assessment test scores and or prior college coursework
    High school students meeting articulation requirements are eligible to earn advanced credit for the courses in BOLD above. Guidance/tech prep staff can provide
                                          information regarding the specific requirements to earn Tech Prep Advanced credit.
ATTACHMENT F-3
     Sample 3
  Cony High School
  Law Enforcement
         ATTACHMENT G
Comparison Chart of Articulation, Enhanced
   Articulation and Program of Study
                                                                Attachment G – Comparison Chart

           COMPARISON OF ARTICUALTION, ENHANCED ARTICULATION AND PROGRAM OF STUDY
                                 ARTICULATION                                ENHANCED                             PROGRAM OF STUDY
                                                                            ARTICULATION
 QUICK DEFINITION                A planned process linking            Enhanced articulation is an             A program of study is a planned
                                 secondary CTE programs to            articulation that is a systematically   sequence of courses that integrates high
                                 postsecondary CTE programs.          planned process linking a               quality core academic knowledge with
                                 These agreements allow student to    secondary career and technical          technical and occupational skills and
                                 earn dual credits (both secondary    education school program to a           knowledge to provide secondary CTE
                                 and post secondary credit) or        postsecondary career and technical      students with a pathway to
                                 escrow credits, which are given to   education system program.               postsecondary CTE education and
                                 matriculated students following                                              career goals. Maine‘s model of CTE
                                 successful completion of a                                                   organize programs of study within 15
                                 college‘s identified number of                                               broad career cluster programs designed
                                 credit hours.                                                                to provide students with multiple career
                                                                                                              pathways leading to careers and
                                                                                                              postsecondary education.

     INSTITUTIONS                Secondary school to single           Secondary school to Maine               Secondary school to single community
       INVOLVED                  community college campus             Community College Campuses              college campus
                                                                      that offer the program
WHO RESPONSIBLE                  Secondary CTE schools and            Secondary CTE schools and               Secondary CTE schools and
 FOR DEVELOPING                  community college campuses           community college campuses              community college campuses
 AND EXECUTING?
    HOW OFTEN                    Annually                             At the request of either party          Annually
     UPDATED?
CREDIT BEARING AT                Yes, may be dual credit or escrow    Yes, must be at least 3 credits         Not required, but may include
    PS LEVEL?                    credit
  WHO MUST SIGN                  Secondary director and instructor;   Secondary director and instructor;      Secondary director and instructor;
   AGREEMENT?                    postsecondary campus president,      postsecondary system president,         postsecondary campus president,
                                 academic dean, department chair      campus president, academic dean,        academic dean, department chair and
                                 and instructor                       department chair and instructor         instructor
   REQUIREMENTS                  % of secondary and postsecondary     One must be in place by July 1,         One must be in place by July 1, 2009
*The State plan will require a   program articulation                 2009                                    *Must include an industry recognized
contact/position be named by     10% by 7/1/09                                                                credential, certification, associate‘s or
each individual secondary
school and individual            20% by 7/1/10                                                                baccalaureate degree at postsecondary
community college campus to      30% by 7/1/11                                                                level.
facilitate, keep records and     40% by 7/1/12
report on articulations,         50% by 7/1/13
enhanced articulations and
programs of study.
     ATTACHMENT H
Professional Development Guidance
                             Attachment H – Professional Development

PROFESSIONAL DEVELOPMENT GUIDANCE

Professional Development activities:
   Are high-quality, sustained, intensive and classroom-focused in order to have impact on classroom
     instruction.
   Will help teachers and personnel improve student achievement.
   Will help teachers and personnel: stay current with all aspects of an industry; effectively develop
     rigorous and challenging integrated curricula (jointly with academic teachers, to the extent
     practicable), develop a higher level of academic and industry knowledge and skills, and effectively
     use applied learning.
   Promotes integration with professional development activities that the State carries out under title
     II of the Elementary and Secondary Education Act (ESEA) of 1965 and the Higher Education Act
     of 1965. Title II of ESEA prohibits one-day or short-term workshops, unless such workshops and
     conferences are part of a larger series of professional development activities.
   May include internship programs that provide relevant business experience or programs designed
     to train teachers specifically in the effective use and application of technology to improve
     instruction.
   May include initial teacher preparation professional development



Perkins Act, Local Uses of Funds
Section 135
(5) provide professional development programs that are consistent with section 122 to secondary and
postsecondary teachers, faculty, administrators, and career guidance and academic counselors who are
involved in integrated career and technical education programs, including—
    (A)      in-service and preservice training on—
           (i)      effective integration and use of challenging academic and career and technical
                    education provided jointly with academic teachers to the extent practicable;
           (ii)     effective teaching skills based on research that includes promising practices;
           (iii) effective practices to improve parental and community involvement; and
           (iv)     effective use of scientifically based research and data to improve instruction;
    (B)       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;
    (C)       internship programs that provide relevant business experience; and
    (D)      programs designed to train teachers specifically in the effective use and application of
             technology to improve instruction.

   Section 122
 (2) describes how comprehensive professional development (including initial teacher preparation and
     activities that support recruitment) for career and technical education teachers, faculty,
     administrators, and career guidance and academic counselors will be provided, especially
     professional development that—
         (A) promotes the integration of coherent and rigorous academic content standards and career
              and technical education curricula, including through opportunities for the appropriate
                academic and career and technical education teachers to jointly develop and implement
                curricula and pedagogical strategies, as appropriate;
          (B)   increases the percentage of teachers that meet teacher certification or licensing
                requirements;
          (C)   is high quality, sustained, intensive, and focused on instruction, and increases the
                academic knowledge and understanding of industry standards, as appropriate, of career
                and technical education teachers;
          (D)   encourages applied learning that contributes to the academic and career and technical
                knowledge of the student;
          (E)   provides that knowledge and skills needed to work with and improve instruction for
                special populations;
          (F)   assists in accessing and utilizing data, including data provided under section 118, student
                achievement data, and data from assessments;
          (G)   promotes integration with professional development activities that the State carries out
                under title II of the Elementary and Secondary Education Act of 1965 and title II of the
                Higher Education Act of 1965;

Elementary and Secondary Education Act of 1965
Section 9101 Definitions
(34) PROFESSIONAL DEVELOPMENT- The term professional development’ —
       (A) includes activities that —
               (i) improve and increase teachers’ knowledge of the academic subjects the teachers
               teach, and enable teachers to become highly qualified;
               (ii) are an integral part of broad school-wide and district-wide educational improvement
               plans;
               (iii) give teachers, principals, and administrators the knowledge and skills to provide
               students with the opportunity to meet challenging State academic content standards and
               student academic achievement standards;
               (iv) improve classroom management skills;
               (v)(I) are high quality, sustained, intensive, and classroom-focused in order to have a
               positive and lasting impact on classroom instruction and the teacher’s performance in
               the classroom; and
               (II) are not 1-day or short-term workshops or conferences;
               (vi) support the recruiting, hiring, and training of highly qualified teachers, including
               teachers who became highly qualified through State and local alternative routes to
               certification;
               (vii) advance teacher understanding of effective instructional strategies that are —
                        (I) based on scientifically based research (except that this sub-clause shall not
                        apply to activities carried out under part D of title II); and
                        (II) strategies for improving student academic achievement or substantially
                        increasing the knowledge and teaching skills of teachers; and
                                 (viii) are aligned with and directly related to —
                                          (I) State academic content standards, student academic
                                          achievement standards, and assessments; and
                                          (II) the curricula and programs tied to the standards described in
                                          sub-clause (I) except that this sub-clause shall not apply to
                                          activities described in clauses (ii) and (iii) of section 2123(3)(B);
                                 (ix) are developed with extensive participation of teachers, principals,
                                 parents, and administrators of schools to be served under this Act;
                        (x) are designed to give teachers of limited English proficient children,
                        and other teachers and instructional staff, the knowledge and skills to
                        provide instruction and appropriate language and academic support
                        services to those children, including the appropriate use of curricula and
                        assessments;
                        (xi) to the extent appropriate, provide training for teachers and principals
                        in the use of technology so that technology and technology applications
                        are effectively used in the classroom to improve teaching and learning in
                        the curricula and core academic subjects in which the teachers teach;
                        (xii) as a whole, are regularly evaluated for their impact on increased
                        teacher effectiveness and improved student academic achievement, with
                        the findings of the evaluations used to improve the quality of professional
                        development;
                        (xiii) provide instruction in methods of teaching children with special
                        needs;
                        (xiv) include instruction in the use of data and assessments to inform and
                        instruct classroom practice; and
                        (xv) include instruction in ways that teachers, principals, pupil services
                        personnel, and school administrators may work more effectively with
                        parents; and
(B) may include activities that —
       (i) involve the forming of partnerships with institutions of higher education to establish
       school-based teacher training programs that provide prospective teachers and beginning
       teachers with an opportunity to work under the guidance of experienced teachers and
       college faculty;
       (ii) create programs to enable paraprofessionals (assisting teachers employed by a local
       educational agency receiving assistance under part A of title I) to obtain the education
       necessary for those paraprofessionals to become certified and licensed teachers; and
       (iii) provide follow-up training to teachers who have participated in activities described
       in subparagraph (A) or another clause of this subparagraph that are designed to ensure
       that the knowledge and skills learned by the teachers are implemented in the classroom.
          ATTACHMENT I
Maine State Standards of Service for Students
  Who are Members of Special Populations
                                    Attachment I – Special Populations

    MAINE STATE STANDARDS OF SERVICE FOR STUDENTS WHO ARE
        MEMBERS OF SPECIAL POPULATIONS (revised April 2007)
Introduction
Three basic themes constitute key conceptual underpinnings of the Carl D. Perkins Career and Technical
Education Act of 2006 (Public Law 109-270):

                      Quality career and technical education offerings;
                      Increased emphasis on high wage, high skill and high demand positions for students with
                       special needs; and
                      Improved accountability for program outcomes and impact.

Maine will continue to honor and refine the State Standards of Service for Students with Special Needs
originally developed in compliance with Section 118 in Perkins II.

The following document therefore sets forth a comprehensive set of measures of access and standards of
service for students who are members of populations with special needs. These measures and standards were
originally based on the language of Section 118 and on other relevant passages in Perkins II and have been
revised and updated in conformity with new provisions in Perkins IV, and designed for use by local recipients in
the development, monitoring, and evaluation of Perkins-funded programs.

This revised (Perkins IV-compliant) edition of the State Standards of Service will be applied to the Planning
Instructions for Local Applications for Assistance under Perkins IV. Since Perkins III, the Maine Department of
Education’s Career and Technical Education Team has instituted a complete automated web-based reporting
system which for all of the Perkins reporting functions from the local educational agencies including the sections
on special populations and non-traditional students.

The various specific standards of service are grouped under five general headings:

                  1.   Equal Access;
                  2.   Services for Students With Disabilities;
                  3.   Services for Disadvantaged Students;
                  4.   Services for Students Preparing for Nontraditional Training & Employment; and
                  5.   Planning, Monitoring, and Evaluation.

1. EQUAL ACCESS
Equal access to a full range of quality career and technical education programs, services, and activities must be
provided to all secondary and postsecondary students in the State of Maine, including members of special
populations and target groups.

Members of special populations and target groups shall not be discriminated against in any way on the basis of
their population or group status, or the economic status of their communities.

Members of special populations include:

                      individuals with disabilities;
                      individuals from economically disadvantaged families, including foster children;
                      individuals preparing for nontraditional training and employment;
                      single parents, including single pregnant women;
                      displaced homemakers; and
                      individuals with other barriers to educational achievement, including individuals
                       with limited English proficiency.

Members of State target groups include:

                      youth at risk of dropping out of school or becoming unemployed upon graduation,
                       including homeless students;
                      school dropouts; and
                      individuals in correctional institutions.

A full range of quality career and technical education programs has been defined by the State Board of
Education in the Criteria of Program Quality, adopted on December 8, 1993 and revised on April 14, 1999.
Included are comprehensive, competency-based, and outcome-oriented specific occupational preparation and
technical education programs, apprenticeship preparation and apprenticeship training programs, technical and
professional preparation programs, youth apprenticeship/career internship programs, cooperative education,
and career preparation programs.

Quality career and technical education services and activities include: affirmative outreach and recruitment;
enrollment, assessment, and placement; membership in a career and technical student/youth leadership
organization; and comprehensive career guidance and counseling.

Assessment and career guidance, career development, and career counseling services must be provided to
students who are members of special populations by professional counselors specializing in services to special
populations, with particular emphasis on their prospects for successful program completion and entry into the
world of work

Comprehensive information on the educational and employment opportunities represented by career and
technical education, and on the requirements and procedures for enrollment, must be made available to all
Maine students and their parents no later than the beginning of the ninth grade. The State Department of
Education and local educational agencies must ensure that providers offer information and enrollment
assistance, in an appropriate and accessible form, to any prospective student of any age.

2. SERVICES FOR STUDENTS WITH DISABILITIES
Each recipient of Federal assistance under the Carl D. Perkins Vocational and Technical Education Act must
establish or participate in an area coordinating committee on transition of the disabled, following guidelines
established by Maine’s Interdepartmental Committee on Transition (ICOT), to oversee and coordinate school-to-
work transition and placement services for students with disabilities.

Students with disabilities enrolled in career and technical education shall be afforded all the rights and
protections guaranteed under the Maine State Special Education Rules, Chapter 101, the Individuals with
Disabilities Education Act (IDEA) and its implementing regulations, Section 504 of the Rehabilitation Act of
1973, and the Americans with Disabilities Act (ADA).

Career and technical education programs, services, and activities for students with disabilities must be provided
in the least restrictive environment consistent with federal and State laws and regulations and that is appropriate
for them in their progress. In addition, a full range of supplementary services must be made available to
facilitate enrollment and success of students with disabilities in regular vocational education programs
consistent with their Individual Education Plan (IEP), including (paramount to 34.CFR 300.42):

                      curriculum modification;
                      equipment modification;
                      classroom modification;
                      special support personnel and services; and
                      special instructional aids, devices, and systems.
Special preparation programs will be made available to all students including students with disabilities for whom
enrollment in a regular career and technical education program is inconsistent with their Individual Education
Plans (IEPs) and their employment plans.

3. SERVICES FOR STUDENTS WITH DISADVANTAGES
Career and technical education programs, services, and activities for economically disadvantaged students,
students of limited English proficiency, and students with other barriers to educational achievement should be
provided in the most integrated environment possible.

A full range of supplementary services must be made available to facilitate the success of disadvantaged
students in regular career and technical education programs, including:

                      curriculum modification;
                      special support personnel and services;
                      special instructional aids, devices, and systems;
                      dependent care and transportation; and
                      English language instruction.

4. SERVICES TO STUDENTS PREPARING FOR NON-TRADITIONAL TRAINING AND EMPLOYMENT
In common with other programs supported with Federal assistance, the career and technical education
community should support societal efforts to move toward gender balance in occupational choice.

Under ideal circumstances, the percentage of students of each gender enrolled in each career and technical
education program should approximate the percentage of students of each gender enrolled in its sending
schools. Short of that, the percentage of students of each gender enrolled in each career and technical
education facility should approximate the percentage of each gender enrolled in its sending schools. In addition,
the percentage of students of each gender enrolled in each career and technical education program should
approximate the percentage of workers of each gender represented in the labor market.

All career and technical education programs must cooperate fully with the State program to eliminate sex bias
and stereotyping in secondary, postsecondary, career and technical education. Any programs exhibiting a
gender imbalance greater than 75/25 must be defined as gender-biased. All feasible and appropriate efforts
should be made to reduce gender imbalances to the 60/40 level or below in every program.

Toward this end, a full range of support services must be made available to ensure access to all career and
technical education programs for both men and women students, and to facilitate the success of students who
seek to enter occupations that are nontraditional for their sex and are preparing for nontraditional training and
employment.

Included among these support services must be:

                      comprehensive career guidance and counseling services directed toward the
                       elimination of sex bias and stereotyping;
                      affirmative outreach and recruitment efforts;
                      support systems for students entering nontraditional programs and occupations;
                       and
                      dependent-care services and transportation.
5. PLANNING, MONITORING AND EVALUATION
Each local recipient of Federal assistance under the Carl D. Perkins Career and Technical Education Act of
2006 must establish effective avenues (including necessary information and assistance) for the direct
involvement of parents, students, teachers, representatives of business and industry, labor organizations,
representatives of special populations, and other interested individuals and area residents, in the development,
implementation, and evaluation of career and technical education programs.

In cooperation with the Maine Department of Education, eligible recipients must monitor the provision of career
and technical education programs, services, and activities to students who are members of special populations,
to ensure that all goals and standards of service are being met, including consistency with each student’s
Individual Education Plan (IEP).

With the full and informed participation of representatives of special populations, all programs must be reviewed:

                      to evaluate the progress and success of students who are members of special
                       populations in meeting State levels of performance;
                      to identify and adopt strategies to overcome any barriers that result in lowering
                       rates of access to or success in career and technical education for students who are
                       members of special populations; and
                      to provide programs that are designed to enable the special populations to meet
                       the local adjusted levels of performance.
ATTACHMENT J
Accountability Forms
                            Attachment J – Accountability Forms
New secondary

Part C. Accountability Forms

I.   Student Definitions

     A. Secondary Level

      CTE Participant: A secondary student who has completed at least 10% of the
      standards guiding a State approved career and technical education (CTE) program
      CTE Concentrator: A secondary student who has completed at least 50% of the
      standards guiding a State Approved career and technical education program.
      CTE Completer: A secondary student who has completed at least 80% of the
      standards guiding a State approved career and technical education (CTE) program.


     B. Postsecondary/Adult Level

      CTE Participant: A postsecondary/adult student who has earned one (1) or more
      credits in any CTE program area (both academic and technical skill credits).
      CTE Concentrator: A postsecondary/adult student who as of Fall term of the
      measurement year: (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.
       A. SECONDARY LEVEL

       Column                       Column                                    Column                              Column            Column            Column
           1                           2                                         3                                    4                 5                6
 Indicator & Citation             Measurement                               Measurement                           Baseline         Year One          Year Two
                                   Definition                                Approach                          (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
       1S1              Numerator: Number of             For NCLB, we administer The College Board
   Academic             CTE concentrators who have       SAT to all third year high school students in the
  Attainment –          met the proficient or            state, data from the SAT is provided to             B: 87.45%           L: 50%           L: 41%
Reading/Langua          advanced level on the            Measured Progress . Measured Progress sends
     ge Arts            Statewide high school            student level data files to the Maine Department    Graduation          A:               A:
 113(b)(2)(A)(i)        reading/language arts            of Education.                                       rate agreed
                        assessment administered by                                                           upon goal set
                        the State under Section          Students are scored on a four-point scale of        2005-2006
                        1111(b)(3) of the Elementary     proficiency:                                        CAR
                        and Secondary Education          1) did not meet proficiency goal,
                        Act (ESEA) as amended by         2) partially met goal,
                        the No Child Left Behind         3) met goal, and
                        Act based on the scores that     4) exceeded goal.
                        were included in the State‘s
                        computation of adequate          All CTE senior students who meet or exceed the
                        yearly progress (AYP) and        proficiency goal on the SAT taken in their third
                        who, in the reporting year,      year of high school are counted in the
                        left secondary education.        numerator. All CTE senior students who took
                                                         the SAT in the third year of high school are in
                        Denominator: Number of
                                                         the denominator.
                        CTE concentrators who took
                        the ESEA assessments in
                        reading/language arts
                        whose scores were included
                        in the State‘s computation of
                        AYP and who, in the
                        reporting year, left secondary
                        education.
      Column                      Column                                    Column                              Column            Column            Column
          1                          2                                         3                                    4                 5                6
Indicator & Citation            Measurement                               Measurement                           Baseline         Year One          Year Two
                                 Definition                                Approach                          (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
     1S2               Numerator: Number of             For NCLB, we administer The College Board
  Academic             CTE concentrators who have      SAT to all third year high school students in the
 Attainment -          met the proficient or           state, data from the SAT is provided to             B: 87.45%           L: 20%           L: 21%
 Mathematics           advanced level on the           Measured Progress . All third year students also
113(b)(2)(A)(i)        Statewide high school           take the Maine Math Augmentation. The SAT           Graduation          A:               A:
                       mathematics assessment          and Math Augmentation data are combined by          rate agreed
                       administered by the State       Measured Progress. Measured Progress sends          upon goal set
                       under Section 1111(b)(3) of     student level data files to the Maine Department    2005-2006
                       the Elementary and              of Education.                                       CAR
                       Secondary Education Act
                       (ESEA) as amended by the        Students are scored on a four-point scale of
                       No Child Left Behind Act        proficiency:
                       based on the scores that were   1) did not meet proficiency goal,
                       included in the State‘s         2) partially met goal,
                       computation of adequate         3) met goal, and
                       yearly progress (AYP) and       4) exceeded goal.
                       who, in the reporting year,
                       left secondary education.       All CTE senior students who meet or exceed the
                                                       proficiency goal on the SAT taken in their third
                       Denominator: Number of
                                                       year of high school are counted in the
                       CTE concentrators who took
                                                       numerator. All CTE senior students who took
                       the ESEA assessments in
                                                       the SAT in the third year of high school are in
                       mathematics whose scores
                                                       the denominator.
                       were included in the State‘s
                       computation of AYP and
                       who, in the reporting year,
                       left secondary education.
      Column                       Column                                    Column                             Column            Column            Column
          1                           2                                         3                                   4                 5                6
Indicator & Citation             Measurement                               Measurement                          Baseline         Year One          Year Two
                                  Definition                                Approach                         (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
      2S1              Numerator: Number of             The data from the national or third party
Technical Skill        CTE concentrators who 1)         technical skill assessment is reported to the      B: 88.17%           L: 88.5%         L: 89.00%
  Attainment           passed a national or third-      Maine Department of Education by each school
113(b)(2)(A)(ii)       party technical skill            on the EFV 116 in the summer after the             (2006-07 agreed A:                   A:
                       assessments aligned with         students leave the program in the reporting        upon CAR
                       industry-recognized              year.                                              Goal) Based on
                       standards, or 2) completed                                                          Students who
                       (at least 80% of the standards   Should the program not have a National of third    completed their
                       guiding the State approved       party technical skill assessment the students      CTE program
                       program during the reporting     who complete at least 80% of the standards
                       year.                            guiding the State approved program and leave
                                                        secondary education during the reporting year
                       Denominator: Number of           will be reported to the Maine Department of
                       CTE concentrators who have       Education on the EFV 116.
                       completed their secondary
                       CTE program and left             Student opportunities for the demonstration of
                       secondary education during       CTE technical skill attainment will be evaluated
                       the reporting year.              through:
                                                             the CTE program approval process,
                                                             Maine‘s Comprehensive School Review
                                                               process for career and technical
                                                               programs, and
                                                             the local Program Advisory Committee
                                                               program review.
       Column                      Column                                 Column                            Column            Column            Column
           1                          2                                      3                                  4                 5                6
 Indicator & Citation            Measurement                            Measurement                         Baseline         Year One          Year Two
                                  Definition                             Approach                        (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
     3S1          Numerator:                         Sending high schools record diploma
  Secondary       Number of CTE                      information on each of their students in the      B: 87.45%           L: 87.95% L: 88.45%
    School        concentrators who earned a         state‘s database- MEDMS. The Maine
  Completion      regular secondary school           Department of Education determines how many       Graduation rate     A:               A:
                  diploma, and have left             of the students graduated that year.              agreed upon
113(b)(2)(A)(iii) secondary education during                                                           goal set 2005-
(I-III)           the reporting year.                Note: Our reports on 3S1 and 4S1 have been        2006 CAR
                                                     the same in the past. We are now
                        Denominator:                 distinguishing between students who receive a
                        Number of CTE                diploma and students who graduate according
                        concentrators who left       to NCLB. Our baseline numbers are the same,
                        secondary education during   since the source has been the same in the past.
                        the reporting year.
       Column                       Column                                    Column                            Column            Column            Column
           1                           2                                         3                                  4                 5                6
 Indicator & Citation             Measurement                               Measurement                         Baseline         Year One          Year Two
                                   Definition                                Approach                        (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
      4S1               Numerator: Number of             Using NCLB, the graduation rate is based on
    Student             CTE concentrators who, in        students who graduated in the traditional four    B: 87.45%           L: 87%           L: 87%
  Graduation            the reporting year, were         years, per Section 1111(b)(2)(C) (vi) of the
     Rates              included as graduated in the     ESEA. Students who receive diplomas in            Graduation rate     A:               A:
113(b)(2)(A)(iv)        State‘s computation of its       outside of their cohort are not counted in this   agreed upon
                        graduation rate as described     measure, although they are counted in 3S1.        goal set 2005-
                        in Section 1111(b)(2)(C)(vi)                                                       2006 CAR
                        of the ESEA.                     Note: This measure is now slightly different
                                                         from 3S1, Secondary School Completion.
                        Denominator: Number of
                        CTE concentrators who, in
                        the reporting year, were
                        included in the Sate‘s
                        computation of its graduation
                        rate as defined in the State‘s
                        Consolidated Accountability
                        Plan pursuant to Section
                        1111(b)(2)(C)(vi) of the
                        ESEA.
      Column                       Column                                         Column                                   Column            Column            Column
          1                           2                                              3                                         4                 5                6
Indicator & Citation             Measurement                                    Measurement                                Baseline         Year One          Year Two
                                  Definition                                     Approach                               (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
     5S1               Numerator: Number of            1) We provide a list of CTE graduates in the reporting
  Secondary            CTE concentrators who              year to the Maine Dept. of Labor, which then runs           B: 65.0%            L: 65%           L: 65%
                                                          matches with UI and FEDES.
  Placement            completed a secondary CTE 2) The DOL gives us back one number which represents
113(b)(2)(A)(v)        program, attained a high           the total number of our graduates who are employed          (from CAR           A:               A:
                       school diploma and left            in Maine or in the Federal government. NOTE 1: We           adjusted level
                       secondary education in the         do not currently have a way to discover how many of         of performance
                       reporting year and were            our graduates are employed outside of Maine or the          2006-07, 5%
                                                          federal government. NOTE 2: The DOL does not
                       placed in postsecondary            give us back information matched with the list we
                                                                                                                      increase over
                       education or advanced              sent them, because they say they are prohibited from        05-06)
                       training, in military service,     giving us that information by federal law. This means
                       or employment in the second        we do not have a way to determine which of the
                       quarter following the              names on the list we sent them are employed or in the
                                                          military, only how many. The result is that we
                       program year in which they         cannot currently de-duplicate the number of students
                       left secondary education (i.e.,    who are in post-secondary education and who are also
                       unduplicated placement             employed or in the military. See info below on Natl.
                       status for CTE investors who       Student Clearinghouse.
                       graduated by June 30, 2007      3) We intend to give a list of our graduates to the
                                                          National Student Clearinghouse so we can determine
                       would be assessed between          how many of our graduates are in post-secondary
                       October 1, 2007 and                education. At the moment, we do not have a contract
                       December 31, 2007).                with NSC, so we are using a percentage of graduates
                                                             based on a sample run NSC did for us two years ago.
                       Denominator: Number of                When we have our contract, we will give NSC our list
                                                             of graduates first, then send the names of whichever
                       CTE concentrators who                 students are not in post-secondary information over to
                       completed a secondary CTE             the DOL for employment/military matches. This will
                       program, obtained a high              allow us to avoid duplication.
                       school diploma and left
                       secondary education during
                       the reporting year.
       Column                       Column                                        Column                                Column            Column            Column
           1                           2                                             3                                      4                 5                6
 Indicator & Citation             Measurement                                   Measurement                             Baseline         Year One          Year Two
                                   Definition                                    Approach                            (Indicate Year)   7/1/07-6/30/08    7/1/08-6/30/09
  6S1 and 6S2            6S1: Non-Trad                   1) Determine which CTE students are participants
 Nontraditional         Participation                       (based on participant definition);                     B:                  L: 5.70%         L: 5.72%
                                                         2) Compare participants to NAPE Nontrad list to
  Participation         Numerator: Number of                determine students who are enrolled in a program       For non-trad
and Completion          CTE participants from               that is nontraditional for their gender; –             participation:      A:               A:
113(b)(2)(A)(vi)        underrepresented gender             DENOMINATOR                                            8.35%               Actual
                        groups who participated in a     3) Determine the number of students in step 2 who are                         level of
                        program that leads to               the underrepresented gender for the program. –                             performa
                                                            NUMERATOR
                        employment in                                                                                                  nce 06-07
                        nontraditional fields during     This data will be collected and reported for both males                       5.72%
                        the reporting year.              and females.
                        Denominator: Number of                                                                     For non-trad        L: 10.20% L: 10.30%
                        CTE participants who                                                                       completion:
                        participated in a program that                                                             11.77%              A:               A:
                        leads to employment in
                        nontraditional fields during                                                               (from CAR
                        the reporting year.                                                                        adjusted level      Actual
                                                                                                                   of performance      level of
                        6S2: Non-Trad                                                                              2006-07)            performa
                        Completion                                                                                                     nce 06-07
                        Numerator: Number of                                                                                           10.20%
                        CTE concentrators from
                        underrepresented gender
                        groups who completed a
                        program that leads to
                        employment in
                        nontraditional fields during
                        the reporting year.
                        Denominator: Number of
                        CTE concentrators who
                        completed a program that
                        leads to employment in
                        nontraditional fields during
                        the reporting year.
         B. POSTSECONDARY/ADULT LEVEL

       Column                                Column                                              Column                              Column       Column    Column
          1                                     2                                                   3                                   4            5         6
      Indicator &                         Measurement                                         Measurement                            Baseline    Year One   Year Two
        Citation                           Definition                                          Approach                              (Indicate    7/1/07-    7/1/08-
                                                                                                                                       Year)      6/30/08    6/30/09

        1P1            Numerator: Number of CTE                            1.   determine what programs have “gold” level
                                                                                assessments;
   Technical Skill     concentrators who COMPLETED a CTE                   2. students complete programs and receive a
                                                                                certificate, diploma or degree (e.g. during 2006-
                                                                                                                                    B: None      L: 35.00   L:35.50
    Attainment         program and received an industry-                        2007);
   113(b)(2)(B)(i)     recognized credential, a certificate, or a          3. allow 1 year for students to complete the             This is a
                       degree who                                               assessments and colleges to gather data             new
                                                                                (students may take assessments more than once                 A:            A:
                              1. passed technical skill                         during this year);                                  measure
P-sec 1P1 (see Notes   assessments that are aligned with industry-         4. determine which students TOOK the                     and
                                                                                assessment;
below)                 recognized standards, if available and              5. determine of the students that TOOK the               therefore
                       appropriate, OR                                          assessment… which ones passed (this is one          we have
                                                                                part of the total);
                              2. received a GPA of 3.0 or better           6. of the students that completed the program and        no
                        (Note – The Department recognizes that a State          received a certificate, diploma or degree (those    baseline.
                       may not have technical skill assessments that are        in step 2), remove those that TOOK an
                                                                                assessment (those in step 4) – this gives us the
                       aligned with industry-recognized standards in            remainder of students who either chose not to
                       every CTE program area and for every CTE                 take an assessment OR no assessment was
                       concentrator.)                                           available;
                                                                           7. for the students in step 6 we find those who had
                                                                                a GPA of 3.0 or better (this is part two of the
                       Denominator: Number of CTE                               total);
                                                                           8. the results from steps 5 and 7 will be combined
                       concentrators who                                        to give us the total number of students that
                          1. COMPLETED a CTE program and                        completed a program and received a
                                                                                certificate, diploma or degree and reached the
                              received a recognized credential, a               determined level of skill attainment (passed an
                              certificate, or a degree and TOOK                 assessment or had a GPA of 3.0 or better).
                                                                           *** 2006-2007 completers will be reported on the
                              a technical skill assessment, OR                  December 2008 CARS as students need time to
                          2. COMPLETED a CTE program and                        take assessments and colleges need time to
                                                                                receive and report data.
                              received a recognized credential, a
                              certificate, or a degree.
    Column                           Column                                        Column                          Column       Column    Column
       1                                2                                             3                               4            5         6
   Indicator &                     Measurement                                  Measurement                        Baseline    Year One   Year Two
     Citation                       Definition                                   Approach                          (Indicate    7/1/07-    7/1/08-
                                                                                                                     Year)      6/30/08    6/30/09

     2P1           Numerator: Number of CTE                      State/local administrative records
  Credential,      concentrators who left postsecondary         1.    determine which students are                B: 46.91     L:47.00    L:47.25
Certificate, or    education and received an industry-               concentrators (based on concentrator
    Degree         recognized credential, a certificate, or a        definition);                                 From 06-
113(b)(2)(B)(ii)   degree AND did not transfer to another 2     2. compare fall concentrators of one              07
                                                                     academic year to fall enrollment of the                A:            A:
                   or 4 year postsecondary institution.                                                           Perkins
                                                                     next academic year to determine the
                                                                     CTE concentrators who left
                                                                                                                  III
                   Denominator: Number of CTE                        postsecondary education (leavers) e.g.       CARS.
                   concentrators who left postsecondary              fall 2006 concentrators compared to fall     This
                   education AND did not transfer to another         2007 enrollment–                             measure
                                                                3. compare leavers to National Student            is
                   2 or 4 year postsecondary institution.
                                                                     Clearinghouse to determine which
                                                                     students did not transfer;
                                                                                                                  slightly
                                                                4. subtract transfers (step 3) from leavers       different
                                                                     (step 2) – DENOMINATOR;                      for
                                                                3. compare students in the denominator            Perkins
                                                                     (students in step 4) to graduates of the     IV.
                                                                     spring following the initial fall
                                                                     concentrator determination in step 2
                                                                     (e.g. Spring 2007) to determine which
                                                                     concentrator leavers who did not
                                                                     transfer to another 2 or 4 year
                                                                     institution, received an industry-
                                                                     recognized credential, a certificate, or a
                                                                     degree – NUMERATOR.
                                                                *** NOTE fall 2006 concentrators will be
                                                                reported on the 2008 CARS as enrollment
                                                                data for fall 2007 would not be available for
                                                                comparison until spring 2008.
       Column                             Column                                          Column                        Column       Column    Column
          1                                  2                                               3                             4            5         6
     Indicator &                        Measurement                                     Measurement                     Baseline    Year One   Year Two
       Citation                          Definition                                      Approach                       (Indicate    7/1/07-    7/1/08-
                                                                                                                          Year)      6/30/08    6/30/09

        3P1            Numerator: Number of CTE                           National/state administrative
Student Retention or   concentrators who were enrolled in                               records                        B:58.03      L:58.25    L:58.50
     Transfer          postsecondary education in the previous         1. determine which students are
  113(b)(2)(B)(iii)    academic year and who remained enrolled            concentrators (based on concentrator         From 06-
                       in their original institution or transferred to    definition);                                 07        A:            A:
                       another 2- or 4-year postsecondary              2. compare fall concentrators of one            Perkins
                                                                          academic year to spring completers to        III
                       institution (in-state and out-of-state) the
                                                                          determine the students who did not
                       following academic year AND did not                receive an industry recognized
                                                                                                                       CARS.
                       receive an industry recognized credential,         credential, certificate or degree –          This
                       a certificate or degree.                           DENOMINATOR;                                 measure
                                                                        3.    compare the students in the              is
                                                                             denominator (step 2) to the fall          slightly
                                                                             enrollment of the next academic year to
                                                                             determine the CTE concentrators who
                                                                                                                       different
                       Denominator: Number of CTE                            remained in postsecondary education       for
                       concentrators who were enrolled in                    (e.g. fall 2006 concentrators compared    Perkins
                       postsecondary education the previous                  to fall 2007 enrollment);                 IV.
                                                                        4.    compare the concentrators from step 2
                       reporting year and who did not earn an
                                                                             who are not still enrolled (students in
                       industry-recognized credential, a                     step 2 – students in step 3) to the
                       certificate, or a degree.                             National Student Clearinghouse to find
                                                                             the students of this group who
                                                                             transferred to another 2 or 4 year
                                                                             postsecondary institution;
                                                                        5.    the combination of students from steps
                                                                             3 and 4 is the – NUMERATOR

                                                                        *** NOTE fall 2006 concentrators will be
                                                                            reported on the 2008 CARS as
                                                                            enrollment data for fall 2007 would not
                                                                            be available for comparison until spring
                                                                            2008.
     Column                            Column                                          Column                        Column       Column    Column
        1                                 2                                               3                             4            5         6
    Indicator &                      Measurement                                    Measurement                      Baseline    Year One   Year Two
      Citation                        Definition                                     Approach                        (Indicate    7/1/07-    7/1/08-
                                                                                                                       Year)      6/30/08    6/30/09

       4P1                                                           State administrative records/state
Student Placement   Numerator: Number of CTE                        developed and locally administered B:87.91                   L:85.00    L:85.25
 113(b)(2)(B)(iv)   concentrators who completed their                            surveys
                    postsecondary CTE program and received                                                          From 06-
                                                                    1.    determine which students are
                    an industry-recognized credential, a                 concentrators (based on concentrator
                                                                                                                    07
                                                                                                                    Perkins    A:           A:
                    certificate or a degree who –                        definition);
                                                                    2.    compare fall concentrators of one         III
                            1. left postsecondary education;
                                                                         academic year to fall of the next          CARS.
                            2. did not transfer to another 2 or 4                                                   This
                                                                         academic year to determine students
                    year postsecondary institution; AND                  who are leavers;                           measure
                            3. were placed in employment, or        3.   compare leavers to National Student        is
                    placed in military service or                        Clearinghouse to determine which           different
                    apprenticeship programs in the 2nd quarter           students did not transfer;                 for
                                                                    4.   subtract transfers (step 3) from leavers
                    following the program year in which they                                                        Perkins
                                                                         (step 2) and compare to spring
                    left postsecondary education (i.e.,                  completers to determine the students
                                                                                                                    IV as it
                    unduplicated placement status for CTE                who received an industry recognized        only gives
                    concentrators who graduated by June 30,              credential, certificate or degree –        2
                    2007 would be assessed between October               DENOMINATOR;                               quarters
                                                                    5.    compare the students in the               to become
                    1, 2007 and December 31, 2007).
                                                                         denominator to DOL wage records and        employed
                                                                         FEDES in the second quarter after          instead of
                                                                         graduation (October to December). -        1 year.
                    Denominator: Number of CTE                           NUMERATOR
                    concentrators who left postsecondary
                                                                    *** NOTE fall 2007 completers will be
                    education and received an industry-
                                                                    reported on the 2008 CARS as enrollment
                    recognized credential, a certificate or a       data for fall 2007 would not be available for
                    degree AND did not transfer to another 2        comparison until spring 2008 and DOL
                    or 4 year postsecondary institution.            matches for Oct – Dec are not available until
                                                                    March 2008.
    Column                          Column                                        Column                      Column       Column    Column
       1                               2                                             3                           4            5         6
   Indicator &                   Measurement                                   Measurement                    Baseline    Year One   Year Two
     Citation                     Definition                                    Approach                      (Indicate    7/1/07-    7/1/08-
                                                                                                                Year)      6/30/08    6/30/09

     5P1          Numerator: Number of CTE participants       State/local administrative records
Nontraditional    from underrepresented gender groups who 1. determine which fall CTE students are
                                                                                                             B:19.96      L:19.75    L:19.75
 Participation    participated in a program that leads to        participants (based on participant
113(b)(2)(B)(v)   employment in nontraditional fields during     definition);                                From 06-
                  the reporting year.                        2. compare fall participants to NAPE            07
                                                                    nontrad list to determine students who   Perkins     A:          A:
                                                                    are enrolled in a program that is        III
                                                                    nontraditional for their gender; –       CARS.
                                                                    DENOMINATOR                              This is
                  Denominator: Number of CTE                   3.   determine the number of students in      new data
                  participants who participated in a program        step 2 who are the underrepresented
                                                                    gender for the program. (Males in
                                                                                                             for us and
                  that leads to employment in nontraditional                                                 is slightly
                                                                    Nursing, Females in Automotive) –
                  fields during the reporting year.                 NUMERATOR                                different
                                                                                                             for
                                                               *** NOTE 2007 fall participants would be      Perkins
                                                                   reported on the December 2008 CARS        IV.
                                                                   report.
    Column                          Column                                      Column                        Column       Column    Column
       1                               2                                           3                             4            5         6
   Indicator &                   Measurement                                  Measurement                     Baseline    Year One   Year Two
     Citation                     Definition                                   Approach                       (Indicate    7/1/07-    7/1/08-
                                                                                                                Year)      6/30/08    6/30/09

     5P2          Numerator: Number of CTE                     State/local administrative records
Nontraditional    concentrators from underrepresented          1. determine which students are
                                                                    concentrators (based on concentrator     B:18.16      L:18.00    L:18.00
 Completion       gender groups who completed a program             definition) e.g. fall 2006;
113(b)(2)(B)(v)   that leads to employment in nontraditional   2. compare concentrators (step 1) to NAPE
                                                                                                             From 06-
                  fields during the reporting year.                 nontrad list to determine students who   07
                                                                                                             Perkins     A:          A:
                                                                    are enrolled in a program that is
                                                                    nontraditional for their gender;         III
                  Denominator: Number of CTE
                                                               3. identify concentrator students (from       CARS.
                  concentrators who completed a program             step 2) who received a credential,       This is
                  that leads to employment in nontraditional        certificate or degree -                  new data
                  fields during the reporting year.                 DENOMINATOR e.g. spring 2007             for us and
                                                               4. identify underrepresented gender           is slightly
                                                                    students for each program from the
                                                                                                             different
                                                                    students in step 2 - NUMERATOR
                                                                                                             for
                                                                                                             Perkins
                                                                                                             IV.
Notes for Postsecondary Accountability Measures:

P-sec 1P1 - Where available and appropriate the MCCS will use a State or National
end of program skill assessment. When not available or appropriate the MCCS will
use a GPA of 3.0 or better. The goal of the MCCS is to implement State or National
end of program assessments for every CTE program where they are available and
appropriate based on industry standards.

NOTE – Each college of the Maine Community College System (MCCS) is accredited
by the New England Association of Schools and Colleges through its Commission
Institutions on Higher Education (CIHE). The curriculum for each new program of study
must comply with MCCS Policy Section 305 which reflects the accreditation standards of
CIHE, and it is reviewed by the MCCS Academic Affairs Council (the chief academic
officers of each college), the Presidents Council, and the Educational Policy Committee
of the Board of Trustees before being approved by the MCCS Board of Trustees who are
appointed by the Governor and affirmed by the Senate.

By MCCS Policy Section 302 the academic programs of each college are assessed for the
purpose of assuring ―… the highest quality of education and service; to assure that
graduates possess the occupational and academic skills required of employers; …‖, and
the Board of Trustees are apprised annually of the results of this program review using
Procedure Section 304 on a schedule that assures that all academic program offerings will
be assessed and updated as necessary on a five year cycle.
ATTACHMENT K
 Negotiation Process
                        Attachment K – Negotiation Process

                                     Perkins IV
                 Negotiating Process for State and Local Levels of
                                Performance

   A. States Will Reach Negotiated Performance Levels for
      Accountability Core Measures and Standards with the Secretary.
The Maine DOE, with input from the eligible recipients in the State, shall identify valid
and reliable State levels of performance for each of the core indicators required by
Section 113 of the Carl D. Perkins Act for CTE activities authorized under this Title. All
local levels of performance will be expressed in a percentage or numerical form, so as to
be objective, quantifiable, and measurable. These levels of performance will be
determined by conducting an analysis of State and national data from a broad variety of
sources, including NCLB, the Maine Department of Labor, the National Student
Clearinghouse (if possible) and MDOE and MCCS.

The Maine DOE will provide supporting documentation for the performance levels it
develops, including
   1. A description of the methodology used to arrive at the proposed levels.
   2. How these performance levels promote continuous improvement in CTE
       education as measured by the core indicators.

The Maine DOE will work with the Secretary to develop mutually agreeable levels of
performance for the two-year negotiated period. Once the levels of performance are
agreed upon, the Maine DOE will include the negotiated levels of performance in its state
plan.

Subsequently, the Maine DOE shall identify levels of performance prior to the third and
fifth program years covered by the local plan. These levels will take into account how
other similar states have performed on their levels and how much Maine‘s performance
has created continuous improvement in CTE education as measured by the core
indicators.

If unanticipated circumstances arise in Maine with a resulting significant change in the
factors described in clause (vi), the Maine DOE may request that the levels of
performance agreed to under clause (iii) or (iv) be revised. The Secretary shall provide
objective criteria and methods for making such revisions.
                                      Perkins IV
                  Negotiating Process for State and Local Levels of
                                 Performance


   B. Local Performance Levels Negotiation Process
The Maine DOE will provide the State levels of performance to the eligible CTE schools
and postsecondary schools in Maine, and each eligible recipient will either accept those
performance levels for itself or will negotiate with the Maine DOE (if secondary) or the
MCCS Director of State and Federal Programs (if postsecondary) to develop its own
local performance levels. All local levels of performance will be expressed as
percentages.

For the secondary schools, the Academic Attainment indicator will be determined by
Maine‘s Annual Measurable Objectives (AMOs) from the State ESEA accountability
notebook for NCLB. (ESEA, section 1111(b)(2)(G)) These measures are required by
NCLB for secondary education, and they will also be required for the Perkins academic
accountability.

If an eligible recipient wants to negotiate a change in any other indicator, it shall provide
justification for the change, which shall include at a minimum the following information:
    1. The rationale for the change from the state levels
    2. What methodology the school wants to use to measure the indicator
    3. How this change will promote continuous improvement in CTE education as
         measured by the core indicators

The Maine DOE will review the school‘s documentation and will negotiate with the
school to develop mutually agreeable performance levels.

Once the levels of performance are agreed upon, each eligible recipient will include the
negotiated levels of performance in its local plan.

All levels of performance will require the eligible recipient to make continuous progress
toward the goal of improving education for CTE students as measured by the core
indicators.

Each eligible recipient shall identify levels of performance for each of the first two
program years covered by the local plan.

Subsequently, each eligible recipient shall identify levels of performance prior to the
third and fifth program years covered by the local plan. These levels will take into
account how other similar eligible recipients have performed on their levels and how
much the recipient‘s performance has created continuous improvement in CTE education
as measured by the core indicators.

If an eligible recipient has unanticipated circumstances arise with a resulting significant
change in the factors described in clause (v) the eligible recipient may request that the
local adjusted levels of performance agreed to under clause (iii) or (iv) be revised. The
eligible recipient shall use objective criteria and methods for making such revisions.




Core indicators-                Section 113(b)(2)

‗‗(A) CORE INDICATORS OF PERFORMANCE FOR CAREER AND TECHNICAL EDUCATION STUDENTS AT THE
SECONDARYLEVEL.—Each eligible agency shall identify in the State plan core indicators of
performance for career and technical education students at the secondary level that are valid and
reliable, and that include, at a minimum, measures of each of the following:

        ‗‗(i) Student attainment of challenging academic content standards and student academic
        achievement standards, as adopted by a State in accordance with section 1111(b)(1) of
        the Elementary and Secondary Education Act of 1965 and measured by the State
        determined proficient levels on the academic assessments described in section
        1111(b)(3) of such Act.
        ‗‗(ii) Student attainment of career and technical skill proficiencies, including student
        achievement on technical assessments, that are aligned with industry recognized
        standards, if available and appropriate.
        ‗‗(iii) Student rates of attainment of each of the following:
                   ‗‗(I) A secondary school diploma.
                   ‗‗(II) A General Education Development (GED) credential, or other State-
                   recognized equivalent
                   (including recognized alternative standards for individuals with disabilities).
                   ‗‗(III) A proficiency credential, certificate, or degree, in conjunction with a
                   secondary school
                   diploma (if such credential, certificate, or degree is offered by the State in
                   conjunction with a secondaryschool diploma).
        ‗‗(iv) Student graduation rates (as described in section 1111(b)(2)(C)(vi) of the
        Elementary and Secondary Education Act of 1965).
        S. 250—15
        ‗‗(v) Student placement in postsecondary education or advanced training, in military
        service, or in employment.
        ‗‗(vi) Student participation in and completion of career and technical education programs
        that lead tonon-traditional fields.
‗‗(B) CORE INDICATORS OF PERFORMANCE FOR CAREER AND TECHNICAL EDUCATION STUDENTS AT THE POSTSECONDARY
LEVEL.—Each eligible agency shall identify in the State plan core indicators of performance for
career and technical education students at the postsecondary level that are valid and reliable,
and that include, at a minimum, measures of each of the following:
         ‗‗(i) Student attainment of challenging career and technical skill proficiencies, including
         student achievement on technical assessments, that are aligned with industry-recognized
         standards, if available and appropriate.
         ‗‗(ii) Student attainment of an industry-recognized credential, a certificate, or a degree.
         ‗‗(iii) Student retention in postsecondary education or transfer to a baccalaureate degree
         program.
         ‗‗(iv) Student placement in military service or apprenticeship programs or placement or
         retention in employment, including placement in high skill, high wage, or high demand
         occupations or professions.
         ‗‗(v) Student participation in, and completion of, career and technical education programs
         that lead to employment in non-traditional fields.
‗‗(C) ADDITIONAL INDICATORS OF PERFORMANCE.—An eligible agency, with input from eligible recipients,
may identify in the State plan additional indicators of performance for career and technical
education activities authorized under this title, such as attainment of self-sufficiency.


State negotiations with Feds                            Section 113(b)(3)

(A) STATE ADJUSTED LEVELS OF PERFORMANCE FOR CORE INDICATORS OF PERFORMANCE.—

        (i) IN GENERAL.—Each eligible agency, with input from eligible recipients, shall establish
        in the State plan submitted under section 122, levels of performance for each of the core
        indicators of performance described in subparagraphs (A) and (B) of paragraph (2) for
        career and technical education activities authorized under this title. The levels of
        performance established under this subparagraph shall, at a minimum—

                (I) be expressed in a percentage or numerical form, so as to be objective,
                quantifiable, and measurable; and

                (II) require the State to continually make progress toward improving the
                performance of career and technical education students.

        (ii) IDENTIFICATION IN THE STATE PLAN.—Subject to section 4, each eligible agency
        shall identify, in the State plan submitted under section 122, levels of performance for
        each of the core indicators of performance for the first 2 program years covered by the
        State plan.

        (iii)AGREEMENT ON STATE ADJUSTED LEVELS OF PERFORMANCE FOR FIRST 2
        YEARS.—The Secretary and each eligible agency shall reach agreement on the levels of
        performance for each of the core indicators of performance, for the first 2 program years
        covered by the State plan, taking into account the levels identified in the State plan
        under clause (ii) and the factors described in clause (vi). The levels of performance
        agreed to under this clause shall be considered to be the State adjusted level of
        performance for the State for such years and shall be incorporated into the State plan
        prior to the approval of such plan.

        (iv)ROLE OF THE SECRETARY.—The role of the Secretary in the agreement described in
        clauses (iii) and (v) is limited to reaching agreement on the percentage or number of
        students who attain the State adjusted levels of performance.

        (v) AGREEMENT ON STATE ADJUSTED LEVELS OF PERFORMANCE FOR SUBSEQUENT
        YEARS.—Prior to the third and fifth program years covered by the State plan, the
        Secretary and each eligible agency shall reach agreement on the State adjusted levels of
        performance for each of the core indicators of performance for the corresponding
        subsequent program years covered by the State plan, taking into account the factors
        described in clause (vi). The State adjusted levels of performance agreed to under this
        clause shall be considered to be the State adjusted levels of performance for the State
        for such years and shall be incorporated into the State plan.
      (vi) FACTORS.—The agreement described in clause (iii) or (v) shall take into account—

              (I) how the levels of performance involved compare with the State adjusted
              levels of performance established for other States, taking into account factors
              including the characteristics of participants when the participants entered the
              program and the services or instruction to be provided; and

              (II) the extent to which such levels of performance promote continuous
              improvement on the indicators of performance by such State.

      (vii) REVISIONS.—If unanticipated circumstances arise in a State resulting in a significant
      change in the factors described in clause (vi), the eligible agency may request that the
      State adjusted levels of performance agreed to under clause (iii) or (v) be revised. The
      Secretary shall issue objective criteria and methods for making such revisions.


State negotiations with Locals                              Perkins Section 113(b)


(4) LOCAL ADJUSTED LEVELS OF PERFORMANCE FOR CORE INDICATORS OF PERFORMANCE.—

              (i) IN GENERAL.—Each eligible recipient shall agree to accept the State adjusted levels of
              performance established under paragraph (3) as local adjusted levels of performances, or
              negotiate with the State to reach agreement on new local adjusted levels of performance,
              for each of the core indicators of performance described in subparagraphs (A) and (B) of
              paragraph (2) for career and technical education activities authorized under this title. The
              levels of performance established under this subparagraph shall, at a minimum—

                       (I) be expressed in a percentage or numerical form, consistent with the State
                       levels of performance established under paragraph (3), so as to be objective,
                       quantifiable, and measurable; and

                       (II) require the eligible recipient to continually make progress toward improving
                       the performance of career and technical education students.

              (ii)IDENTIFICATION IN THE LOCAL PLAN.—Each eligible recipient shall identify, in the
              local plan submitted under section 134, levels of performance for each of the core
              indicators of performance for the first 2 program years covered by the local plan.

              (iii)AGREEMENT ON LOCAL ADJUSTED LEVELS OF PERFORMANCE FOR FIRST 2 YEARS.—
              The eligible agency and each eligible recipient shall reach agreement, as described in
              clause (i), on the eligible recipient‘s levels of performance for each of the core indicators
              of performance for the first 2 program years covered by the local plan, taking into account
              the levels identified in the local plan under clause (ii) and the factors described in clause
              (v). The levels of performance agreed to under this clause shall be considered to be the
              local adjusted levels of performance for the eligible recipient for such years and shall be
              incorporated into the local plan prior to the approval of such plan.

              (iv)AGREEMENT ON LOCAL ADJUSTED LEVELS OF PERFORMANCE FOR SUBSEQUENT
              YEARS.—Prior to the third and fifth program years covered by the local plan, the eligible
              agency and each eligible recipient shall reach agreement on the local adjusted levels of
              performance for each of the core indicators of performance for the corresponding
              subsequent program years covered by the local plan, taking into account the factors
              described in clause (v). The local adjusted levels of performance agreed to under this
              clause shall be considered to be the local adjusted levels of performance for the eligible
              recipient for such years and shall be incorporated into the local plan.
(v)FACTORS.—The agreement described in clause (iii) or (iv) shall take into account—

         (I) how the levels of performance involved compare with the local adjusted levels
         of performance established for other eligible recipients in the State, taking into
         account factors including the characteristics of participants when the participants
         entered the program and the services or instruction to be provided; and

         (II) the extent to which the local adjusted levels of performance promote
         continuous improvement on the core indicators of performance by the eligible
         recipient.

(vi) REVISIONS.—If unanticipated circumstances arise with respect to an eligible recipient
resulting in a significant change in the factors described in clause (v), the eligible recipient
may request that the local adjusted levels of performance agreed to under clause (iii) or
(iv) be revised. The eligible agency shall issue objective criteria and methods for making
such revisions.
   ATTACHMENT L
OMB Circular A-87 - Secondary
                           Attachment L – A-87 Secondary

                    OMB CIRCULAR A-87 (REVISED 05/10/04)

                                               CIRCULAR NO. A-87
                                                         Revised
      TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS

SUBJECT: Cost Principles for State, Local, and Indian Tribal Governments

1. Purpose. This Circular establishes principles and standards for determining costs for
Federal awards carried out through grants, cost reimbursement contracts, and other
agreements with State and local governments and federally-recognized Indian tribal
governments (governmental units).

2. Authority. This Circular is issued under the authority of the Budget and Accounting
Act of 1921, as amended; the Budget and Accounting Procedures Act of 1950, as
amended; the Chief Financial Officers Act of 1990; Reorganization Plan No. 2 of 1970;
and Executive Order No. 11541 ("Prescribing the Duties of the Office of Management
and Budget and the Domestic Policy Council in the Executive Office of the President").

3. Background. As part of the governmentwide grant streamlining effort under P.L. 106-
107, Federal Financial Award Management Improvement Act of 1999, OMB led an
interagency workgroup to simplify and make consistent, to the extent feasible, the various
rules used to award Federal grants. An interagency task force was established in 2001 to
review existing cost principles for Federal awards to State, local, and Indian tribal
governments; Colleges and Universities; and Non-Profit organizations. The task force
studied Selected Items of Cost in each of the three cost principles to determine which
items of costs could be stated consistently and/or more clearly. A proposed revised
Circular reflecting the results of those efforts was issued on August 12, 2002 at 67 FR
52558. Extensive comments on the proposed revisions, discussions with interest groups,
and related developments were considered in developing this revision.

4. Rescissions. This Circular rescinds and supersedes Circular A-87, as amended, issued
May 4, 1995.
5. Policy. This Circular establishes principles and standards to provide a uniform
approach for determining costs and to promote effective program delivery, efficiency,
and better relationships between governmental units and the Federal Government. The
principles are for determining allowable costs only. They are not intended to identify the
circumstances or to dictate the extent of Federal and governmental unit participation in
the financing of a particular Federal award. Provision for profit or other increment above
cost is outside the scope of this Circular.

6. Definitions. Definitions of key terms used in this Circular are contained in Attachment
A, Section B.

7. Required Action. Agencies responsible for administering programs that involve cost,
reimbursement contracts, grants, and other agreements with governmental units shall
issue regulations to implement the provisions of this Circular and its Attachments.

8. OMB Responsibilities. The Office of Management and Budget (OMB) will review
agency regulations and implementation of this Circular, and will provide policy
interpretations and assistance to insure effective and efficient implementation. Any
exceptions will be subject to approval by OMB. Exceptions will only be made in
particular cases where adequate justification is presented.

9. Information Contact. Further information concerning this Circular may be obtained by
contacting the Office of Federal Financial Management, Financial Standards and
Reporting Branch, Office of Management and Budget, Washington, DC 20503, telephone
202-395-3993.

10. Policy Review Date. OMB Circular A-87 will have a policy review three years from
the date of issuance.

11. Effective Date. This Circular is effective as follows:
- Except as otherwise provided herein, these rules are effective June 9, 2004.

                              OMB CIRCULAR NO. A-87

COST PRINCIPLES FOR STATE, LOCAL AND INDIAN TRIBAL GOVERNMENTS

                                TABLE OF CONTENTS

Attachment A - General Principles for Determining Allowable Costs

Attachment B - Selected Items of Cost

Attachment C - State/Local-Wide Central Service Cost Allocation Plans

Attachment D - Public Assistance Cost Allocation Plans

Attachment E - State and Local Indirect Cost Rate Proposals
                                                                    ATTACHMENT A

                                                                      Circular No. A-87

          GENERAL PRINCIPLES FOR DETERMININGALLOWABLE COSTS

TABLE OF CONTENTS

A. Purpose and Scope

1. Objectives

2. Policy guides

3. Application

B. Definitions

1. Approval or authorization of the awarding or cognizant Federal agency

2. Award

3. Awarding agency

4. Central service cost allocation plan

5. Claim

6. Cognizant agency

7. Common rule

8. Contract

9. Cost

10. Cost allocation plan

11. Cost objective

12. Federally-recognized Indian tribal government

13. Governmental unit

14. Grantee department or agency

15. Indirect cost rate proposal

16. Local government
17. Public assistance cost allocation plan

18. State

C. Basic Guidelines

1. Factors affecting allowability of costs

2. Reasonable costs

3. Allocable costs

4. Applicable credits

D. Composition of Cost

1. Total cost

2. Classification of costs

E. Direct Costs

1. General

2. Application

3. Minor items

F. Indirect Costs

1. General

2. Cost allocation plans and indirect cost proposals

3. Limitation on indirect or administrative costs

G. Interagency Services

H. Required Certifications

A. Purpose and Scope

1. Objectives. This Attachment establishes principles for determining the allowable costs
incurred by State, local, and federally-recognized Indian tribal governments
(governmental units) under grants, cost reimbursement contracts, and other agreements
with the Federal Government (collectively referred to in this Circular as "Federal
awards"). The principles are for the purpose of cost determination and are not intended to
identify the circumstances or dictate the extent of Federal or governmental unit
participation in the financing of a particular program or project. The principles are
designed to provide that Federal awards bear their fair share of cost recognized under
these principles except where restricted or prohibited by law. Provision for profit or other
increment above cost is outside the scope of this Circular.

2. Policy guides.

a. The application of these principles is based on the fundamental premises that:

(1) Governmental units are responsible for the efficient and effective administration of
Federal awards through the application of sound management practices.

(2) Governmental units assume responsibility for administering Federal funds in a
manner consistent with underlying agreements, program objectives, and the terms and
conditions of the Federal award.

(3) Each governmental unit, in recognition of its own unique combination of staff,
facilities, and experience, will have the primary responsibility for employing whatever
form of organization and management techniques may be necessary to assure proper and
efficient administration of Federal awards.

b. Federal agencies should work with States or localities which wish to test alternative
mechanisms for paying costs for administering Federal programs. The Office of
Management and Budget (OMB) encourages Federal agencies to test fee-for-service
alternatives as a replacement for current cost-reimbursement payment methods in
response to the National Performance Review's (NPR) recommendation. The NPR
recommended the fee-for-service approach to reduce the burden associated with
maintaining systems for charging administrative costs to Federal programs and preparing
and approving cost allocation plans. This approach should also increase incentives for
administrative efficiencies and improve outcomes.

3. Application.

a. These principles will be applied by all Federal agencies in determining costs incurred
by governmental units under Federal awards (including subawards) except those with (1)
publicly-financed educational institutions subject to OMB Circular A-21, "Cost
Principles for Educational Institutions," and (2) programs administered by publicly-
owned hospitals and other providers of medical care that are subject to requirements
promulgated by the sponsoring Federal agencies. However, this Circular does apply to all
central service and department/agency costs that are allocated or billed to those
educational institutions, hospitals, and other providers of medical care or services by
other State and local government departments and agencies.
b. All subawards are subject to those Federal cost principles applicable to the particular
organization concerned. Thus, if a subaward is to a governmental unit (other than a
college, university or hospital), this Circular shall apply; if a subaward is to a commercial
organization, the cost principles applicable to commercial organizations shall apply; if a
subaward is to a college or university, Circular A-21 shall apply; if a subaward is to a
hospital, the cost principles used by the Federal awarding agency for awards to hospitals
shall apply, subject to the provisions of subsection A.3.a. of this Attachment; if a
subaward is to some other non-profit organization, Circular A-122, "Cost Principles for
Non-Profit Organizations," shall apply.

c. These principles shall be used as a guide in the pricing of fixed price arrangements
where costs are used in determining the appropriate price.

d. Where a Federal contract awarded to a governmental unit incorporates a Cost
Accounting Standards (CAS) clause, the requirements of that clause shall apply. In such
cases, the governmental unit and the cognizant Federal agency shall establish an
appropriate advance agreement on how the governmental unit will comply with
applicable CAS requirements when estimating, accumulating and reporting costs under
CAS-covered contracts. The agreement shall indicate that OMB Circular A-87
requirements will be applied to other Federal awards. In all cases, only one set of records
needs to be maintained by the governmental unit.

e. Conditional exemptions.

(1) OMB authorizes conditional exemption from OMB administrative requirements and
cost principles circulars for certain Federal programs with statutorily-authorized
consolidated planning and consolidated administrative funding, that are identified by a
Federal agency and approved by the head of the Executive department or establishment.
A Federal agency shall consult with OMB during its consideration of whether to grant
such an exemption.

(2) To promote efficiency in State and local program administration, when Federal non-
entitlement programs with common purposes have specific statutorily-authorized
consolidated planning and consolidated administrative funding and where most of the
State agency's resources come from non-Federal sources, Federal agencies may exempt
these covered State-administered, non-entitlement grant programs from certain OMB
grants management requirements. The exemptions would be from all but the allocability
of costs provisions of OMB Circulars A-87 (Attachment A, subsection C.3), "Cost
Principles for State, Local, and Indian Tribal Governments," A-21 (Section C, subpart 4),
"Cost Principles for Educational Institutions," and A-122 (Attachment A, subsection
A.4), "Cost Principles for Non-Profit Organizations," and from all of the administrative
requirements provisions of OMB Circular A-110, "Uniform Administrative Requirements
for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other
Non-Profit Organizations," and the agencies' grants management common rule.
(3) When a Federal agency provides this flexibility, as a prerequisite to a State's
exercising this option, a State must adopt its own written fiscal and administrative
requirements for expending and accounting for all funds, which are consistent with the
provisions of OMB Circular A-87, and extend such policies to all subrecipients. These
fiscal and administrative requirements must be sufficiently specific to ensure that: funds
are used in compliance with all applicable Federal statutory and regulatory provisions,
costs are reasonable and necessary for operating these programs, and funds are not be
used for general expenses required to carry out other responsibilities of a State or its
subrecipients.

B. Definitions

1. "Approval or authorization of the awarding or cognizant Federal agency" means
documentation evidencing consent prior to incurring a specific cost. If such costs are
specifically identified in a Federal award document, approval of the document constitutes
approval of the costs. If the costs are covered by a State/local-wide cost allocation plan or
an indirect cost proposal, approval of the plan constitutes the approval.

2. "Award" means grants, cost reimbursement contracts and other agreements between a
State local and Indian tribal government and the Federal Government.

3. "Awarding agency" means (a) with respect to a grant, cooperative agreement, or cost
reimbursement contract, the Federal agency, and (b) with respect to a subaward, the party
that awarded the subaward.

4. "Central service cost allocation plan" means the documentation identifying,
accumulating, and allocating or developing billing rates based on the allowable costs of
services provided by a governmental unit on a centralized basis to its departments and
agencies. The costs of these services may be allocated or billed to users.

5. "Claim" means a written demand or written assertion by the governmental unit or
grantor seeking, as a matter of right, the payment of money in a sum certain, the
adjustment or interpretation of award terms, or other relief arising under or relating to the
award. A voucher, invoice or other routine request for payment that is not a dispute when
submitted is not a claim. Appeals, such as those filed by a governmental unit in response
to questioned audit costs, are not considered claims until a final management decision is
made by the Federal awarding agency.

6. "Cognizant agency" means the Federal agency responsible for reviewing, negotiating,
and approving cost allocation plans or indirect cost proposals developed under this
Circular on behalf of all Federal agencies. OMB publishes a listing of cognizant agencies.

7. "Common Rule" means the "Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments; Final Rule" originally issued
at 53 FR 8034-8103 (March 11, 1988). Other common rules will be referred to by their
specific titles.
8. "Contract" means a mutually binding legal relationship obligating the seller to furnish
the supplies or services (including construction) and the buyer to pay for them. It includes
all types of commitments that obligate the government to an expenditure of appropriated
funds and that, except as otherwise authorized, are in writing. In addition to bilateral
instruments, contracts include (but are not limited to): awards and notices of awards; job
orders or task orders issued under basic ordering agreements; letter contracts; orders,
such as purchase orders, under which the contract becomes effective by written
acceptance or performance; and, bilateral contract modifications. Contracts do not
include grants and cooperative agreements covered by 31 U.S.C. 6301 et seq.

9. "Cost" means an amount as determined on a cash, accrual, or other basis acceptable to
the Federal awarding or cognizant agency. It does not include transfers to a general or
similar fund.

10. "Cost allocation plan" means central service cost allocation plan, public assistance
cost allocation plan, and indirect cost rate proposal. Each of these terms are further
defined in this section.

11. "Cost objective" means a function, organizational subdivision, contract, grant, or
other activity for which cost data are needed and for which costs are incurred.

12. "Federally recognized Indian tribal government" means the governing body or a
governmental agency of any Indian tribe, band, nation, or other organized group or
community (including any native village as defined in Section 3 of the Alaska Native
Claims Settlement Act, 85 Stat. 688) certified by the Secretary of the Interior as eligible
for the special programs and services provided through the Bureau of Indian Affairs.

13. "Governmental unit" means the entire State, local, or federally-recognized Indian
tribal government, including any component thereof. Components of governmental units
may function independently of the governmental unit in accordance with the term of the
award.

14. "Grantee department or agency" means the component of a State, local, or federally-
recognized Indian tribal government which is responsible for the performance or
administration of all or some part of a Federal award.

15. "Indirect cost rate proposal" means the documentation prepared by a governmental
unit or component thereof to substantiate its request for the establishment of an indirect
cost rate as described in Attachment E of this Circular.

16. "Local government" means a county, municipality, city, town, township, local public
authority, school district, special district, intrastate district, council of governments
(whether or not incorporated as a non-profit corporation under State law), any other
regional or interstate government entity, or any agency or instrumentality of a local
government.

17. "Public assistance cost allocation plan" means a narrative description of the
procedures that will be used in identifying, measuring and allocating all administrative
costs to all of the programs administered or supervised by State public assistance
agencies as described in Attachment D of this Circular.

18. "State" means any of the several States of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, any territory or possession of the United States, or
any agency or instrumentality of a State exclusive of local governments.

C. Basic Guidelines

1. Factors affecting allowability of costs. To be allowable under Federal awards, costs
must meet the following general criteria:

a. Be necessary and reasonable for proper and efficient performance and administration
of Federal awards.

b. Be allocable to Federal awards under the provisions of this Circular.

c. Be authorized or not prohibited under State or local laws or regulations.

d. Conform to any limitations or exclusions set forth in these principles, Federal laws,
terms and conditions of the Federal award, or other governing regulations as to types or
amounts of cost items.

e. Be consistent with policies, regulations, and procedures that apply uniformly to both
Federal awards and other activities of the governmental unit.

f. 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.

g. Except as otherwise provided for in this Circular, be determined in accordance with
generally accepted accounting principles.

h. Not be included as a cost or used to meet cost sharing or matching requirements of any
other Federal award in either the current or a prior period, except as specifically provided
by Federal law or regulation.

i. Be the net of all applicable credits.

j. Be adequately documented.

2. 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 governmental units or components are predominately
federally- funded. In determining reasonableness of a given cost, consideration shall be
given to:
a. Whether the cost is of a type generally recognized as ordinary and necessary for the
operation of the governmental unit or the performance of the Federal award.

b. The restraints or requirements imposed by such factors as: sound business practices;
arms length bargaining; Federal, State and other laws and regulations; and, terms and
conditions of the Federal award.

c. Market prices for comparable goods or services.

d. Whether the individuals concerned acted with prudence in the circumstances
considering their responsibilities to the governmental unit, its employees, the public at
large, and the Federal Government.

e. Significant deviations from the established practices of the governmental unit which
may unjustifiably increase the Federal award's cost.

3. Allocable costs.

a. A cost is allocable to a particular cost objective if the goods or services involved are
chargeable or assignable to such cost objective in accordance with relative benefits
received.

b. All activities which benefit from the governmental unit's indirect cost, including
unallowable activities and services donated to the governmental unit by third parties, will
receive an appropriate allocation of indirect costs.

c. Any cost allocable to a particular Federal award or cost objective under the principles
provided for in this Circular may not be charged to other Federal awards to overcome
fund deficiencies, to avoid restrictions imposed by law or terms of the Federal awards, or
for other reasons.

d. Where an accumulation of indirect costs will ultimately result in charges to a Federal
award, a cost allocation plan will be required as described in Attachments C, D, and E.

4. Applicable credits.

a. Applicable credits refer to those receipts or reduction of expenditure-type transactions
that offset or reduce expense items allocable to Federal awards as direct or indirect 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
governmental unit relate to allowable costs, they shall be credited to the Federal award
either as a cost reduction or cash refund, as appropriate.

b. In some instances, the amounts received from the Federal Government to finance
activities or service operations of the governmental unit 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) should be recognized in determining the
rates or amounts to be charged to Federal awards. (See Attachment B, item 11,
"Depreciation and use allowances," for areas of potential application in the matter of
Federal financing of activities.)

D. Composition of Cost

1. Total cost. The total cost of Federal awards is comprised of the allowable direct cost of
the program, plus its allocable portion of allowable indirect costs, less applicable credits.

2. Classification of costs. There is no universal rule for classifying certain costs as either
direct or indirect under every accounting system. A cost may be direct with respect to
some specific service or function, but indirect with respect to the Federal award or other
final cost objective. Therefore, it is essential that each item of cost be treated consistently
in like circumstances either as a direct or an indirect cost. Guidelines for determining
direct and indirect costs charged to Federal awards are provided in the sections that
follow.

E. Direct Costs

1. General. Direct costs are those that can be identified specifically with a particular final
cost objective.

2. Application. Typical direct costs chargeable to Federal awards are:

a. Compensation of employees for the time devoted and identified specifically to the
performance of those awards.

b. Cost of materials acquired, consumed, or expended specifically for the purpose of
those awards.

c. Equipment and other approved capital expenditures.

d. Travel expenses incurred specifically to carry out the award.

3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for
reasons of practicality where such accounting treatment for that item of cost is
consistently applied to all cost objectives.

F. Indirect Costs

1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting
more than one cost objective, and (b) not readily assignable to the cost objectives
specifically benefitted, without effort disproportionate to the results achieved. The term
"indirect costs," as used herein, applies to costs of this type originating in the grantee
department, as well as those incurred by other departments in supplying goods, services,
and facilities. To facilitate equitable distribution of indirect expenses to the cost
objectives served, it may be necessary to establish a number of pools of indirect costs
within a governmental unit department or in other agencies providing services to a
governmental unit department. Indirect cost pools should be distributed to benefitted cost
objectives on bases that will produce an equitable result in consideration of relative
benefits derived.

2. Cost allocation plans and indirect cost proposals. Requirements for development and
submission of cost allocation plans and indirect cost rate proposals are contained in
Attachments C, D, and E.

3. Limitation on indirect or administrative costs.

a. In addition to restrictions contained in this Circular, there may be laws that further
limit the amount of administrative or indirect cost allowed.

b. Amounts not recoverable as indirect costs or administrative costs under one Federal
award may not be shifted to another Federal award, unless specifically authorized by
Federal legislation or regulation.

G. Interagency Services. The cost of services provided by one agency to another within
the governmental unit may include allowable direct costs of the service plus a pro rate
share of indirect costs. A standard indirect cost allowance equal to ten percent of the
direct salary and wage cost of providing the service (excluding overtime, shift premiums,
and fringe benefits) may be used in lieu of determining the actual indirect costs of the
service. These services do not include centralized services included in central service cost
allocation plans as described in Attachment C.

H. Required Certifications. Each cost allocation plan or indirect cost rate proposal
required by Attachments C and E must comply with the following:

1. No proposal to establish a cost allocation plan or an indirect cost rate, whether
submitted to a Federal cognizant agency or maintained on file by the governmental unit,
shall be acceptable unless such costs have been certified by the governmental unit using
the Certificate of Cost Allocation Plan or Certificate of Indirect Costs as set forth in
Attachments C and E. The certificate must be signed on behalf of the governmental unit
by an individual at a level no lower than chief financial officer of the governmental unit
that submits the proposal or component covered by the proposal.

2. No cost allocation plan or indirect cost rate shall be approved by the Federal
Government unless the plan or rate proposal has been certified. Where it is necessary to
establish a cost allocation plan or an indirect cost rate and the governmental unit has not
submitted a certified proposal for establishing such a plan or rate in accordance with the
requirements, the Federal Government may either disallow all indirect costs or
unilaterally establish such a plan or rate. Such a plan or rate may be based upon audited
historical data or such other data that have been furnished to the cognizant Federal
agency 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 of failure of the governmental unit to submit a certified
proposal, the plan or rate established will be set to ensure that potentially unallowable
costs will not be reimbursed.
                                                                     ATTACHMENT B

                                                                      Circular No. A-87

                             SELECTED ITEMS OF COST

TABLE OF CONTENTS

   1. Advertising and public relations costs

   2. Advisory councils

   3. Alcoholic beverages

   4. Audit costs and related services

   5. Bad debts

   6. Bonding costs

   7. Communication costs

   8. Compensation for personal services

   9. Contingency provisions

   10. Defense and prosecution of criminal and civil proceedings, and claims

   11. Depreciation and use allowances

   12. Donations and contributions

   13. Employee morale, health, and welfare costs

   14. Entertainment costs

   15. Equipment and other capital expenditures

   16. Fines and penalties

   17. Fund raising and investment management costs

   18. Gains and losses on disposition of depreciable property and other capital assets
   and substantial relocation of Federal programs

   19. General government expenses


   20. Goods or services for personal use
21. Idle facilities and idle capacity

22. Insurance and indemnification

23. Interest

24. Lobbying

25. Maintenance, operations, and repairs

26. Materials and supplies costs

27. Meetings and conferences

28. Memberships, subscriptions, and professional activity costs

29. Patent costs

30. Plant and homeland security costs

31. Pre-award costs

32. Professional service costs

33. Proposal costs

34. Publication and printing costs

35. Rearrangement and alteration costs

36. Reconversion costs

37. Rental costs of building and equipment

38. Royalties and other costs for the use of patents

39. Selling and marketing

40. Taxes

41. Termination costs applicable to sponsored agreements

42. Training costs

43. Travel costs.
Sections 1 through 43 provide principles to be applied in establishing the allowability or
unallowability of certain items of cost. These principles apply whether a cost is treated as
direct or indirect. A cost is allowable for Federal reimbursement only to the extent of
benefits received by Federal awards and its conformance with the general policies and
principles stated in Attachment A to this Circular. Failure to mention a particular item of
cost in these sections is not intended to imply that it is either allowable or unallowable;
rather, determination of allowability in each case should be based on the treatment or
standards provided for similar or related items of cost.

1. Advertising and public relations costs.

a. The term advertising costs means the costs of advertising media and corollary
administrative costs.
Advertising media include magazines, newspapers, radio and television, direct mail,
exhibits, electronic or computer transmittals, and the like.
b. The term public relations includes community relations and means those activities
dedicated to maintaining the image of the governmental unit or maintaining or promoting
understanding and favorable relations with the community or public at large or any
segment of the public.
c. The only allowable advertising costs are those which are solely for:
(1) The recruitment of personnel required for the performance by the governmental unit
of obligations arising under a Federal award ;
(2) The procurement of goods and services for the performance of a Federal award;
(3) The disposal of scrap or surplus materials acquired in the performance of a Federal
award except when governmental units are reimbursed for disposal costs at a
predetermined amount; or
(4) Other specific purposes necessary to meet the requirements of the Federal award.
d. The only allowable public relations costs are:
(1) Costs specifically required by the Federal award;
(2) Costs of communicating with the public and press pertaining to specific activities or
accomplishments which result from performance of Federal awards (these costs are
considered necessary as part of the outreach effort for the Federal award); or
(3) Costs of conducting general liaison with news media and government public relations
officers, to the extent that such activities are limited to communication and liaison
necessary keep the public informed on matters of public concern, such as notices of
Federal contract/grant awards, financial matters, etc.
16
e. Costs identified in subsections c and d if incurred for more than one Federal award or
for both sponsored work and other work of the governmental unit, are allowable to the
extent that the principles in Attachment A, sections E. (―Direct Costs‖) and F. (―Indirect
Costs‖) are observed.
f. Unallowable advertising and public relations costs include the following:
(1) All advertising and public relations costs other than as specified in subsections c, d,
and e;
(2) Costs of meetings, conventions, convocations, or other events related to other
activities of the governmental unit, including:
(a) Costs of displays, demonstrations, and exhibits;
(b) Costs of meeting rooms, hospitality suites, and other special facilities used in
conjunction with shows and other special events; and
(c) Salaries and wages of employees engaged in setting up and displaying exhibits,
making demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia, including models, gifts, and souvenirs;
(4) Costs of advertising and public relations designed solely to promote the governmental
unit.

2. Advisory councils. Costs incurred by advisory councils or committees are allowable as
a direct cost where authorized by the Federal awarding agency or as an indirect cost
where allocable to Federal awards.

3. Alcoholic beverages. Costs of alcoholic beverages are unallowable.

4. Audit costs and related services.

a. The costs of audits required by , and performed in accordance with, the Single Audit
Act, as implemented by Circular A-133, "Audits of States, Local Governments, and Non-
Profit Organizations‖ are allowable. Also see 31 USC 7505(b) and section 230 (―Audit
Costs‖) of Circular A-133.
b. Other audit costs are allowable if included in a cost allocation plan or indirect cost
proposal, or if specifically approved by the awarding agency as a direct cost to an award
c. The cost of agreed-upon procedures engagements to monitor subrecipients who are
exempted from A-133 under section 200(d) are allowable, subject to the conditions listed
in A-133, section 230 (b)(2).
5. Bad debts. Bad debts, including losses (whether actual or estimated) arising from
uncollectable accounts and other claims, related collection costs, and related legal costs,
are unallowable.

6. Bonding costs.
a. Bonding costs arise when the Federal Government requires assurance against financial
loss to itself or others by reason of the act or default of the governmental unit. They arise
also in instances where the governmental unit requires similar assurance. Included are
such bonds as bid, performance, payment, advance payment, infringement, and fidelity
bonds.
b. Costs of bonding required pursuant to the terms of the award are allowable.
c. Costs of bonding required by the governmental unit in the general conduct of its
operations are allowable to the extent that such bonding is in accordance with sound
business practice and the rates and premiums are reasonable under the circumstances.

7. Communication costs. Costs incurred for telephone services, local and long distance
telephone calls, telegrams, postage, messenger, electronic or computer transmittal
services and the like are allowable.
8. Compensation for personal services.

a. General. Compensation for personnel services includes all remuneration, paid currently
or accrued, for services rendered during the period of performance under Federal awards,
including but not necessarily limited to wages, salaries, and fringe benefits. The costs of
such compensation are allowable to the extent that they satisfy the specific requirements
of this Circular, and that the total compensation for individual employees:

(1) Is reasonable for the services rendered and conforms to the established policy of the
governmental unit consistently applied to both Federal and non-Federal activities;

(2) Follows an appointment made in accordance with a governmental unit's laws and
rules and meets merit system or other requirements required by Federal law, where
applicable; and

(3) Is determined and supported as provided in subsection h.

b. Reasonableness. Compensation for employees engaged in work on Federal awards will
be considered reasonable to the extent that it is consistent with that paid for similar work
in other activities of the governmental unit. In cases where the kinds of employees
required for Federal awards are not found in the other activities of the governmental unit,
compensation will be considered reasonable to the extent that it is comparable to that paid
for similar work in the labor

market in which the employing government competes for the kind of employees
involved. Compensation surveys providing data representative of the labor market
involved will be an acceptable basis for evaluating reasonableness.

c. Unallowable costs. Costs which are unallowable under other sections of these
principles shall not be allowable under this section solely on the basis that they constitute
personnel compensation.

d. Fringe benefits.

(1) Fringe benefits are allowances and services provided by employers to their employees
as compensation in addition to regular salaries and wages. Fringe benefits include, but are
not limited to, the costs of leave, employee insurance, pensions, and unemployment
benefit plans. Except as provided elsewhere in these principles, the costs of fringe
benefits are allowable to the extent that the benefits are reasonable and are required by
law, governmental unit-employee agreement, or an established policy of the
governmental unit.

(2) The cost of fringe benefits in the form of regular compensation paid to employees
during periods of authorized absences from the job, such as for annual leave, sick leave,
holidays, court leave, military leave, and other similar benefits, are allowable if: (a) they
are provided under established written leave policies; (b) the costs are equitably allocated
to all related activities, including Federal awards; and, (c) the accounting basis (cash or
accrual) selected for costing each type of leave is consistently followed by the
governmental unit.

(3) When a governmental unit uses the cash basis of accounting, the cost of leave is
recognized in the period that the leave is taken and paid for. Payments for unused leave
when an employee retires or terminates employment are allowable in the year of payment
provided they are allocated as a general administrative expense to all activities of the
governmental unit or component.

(4) The accrual basis may be only used for those types of leave for which a liability as
defined by Generally Accepted Accounting Principles (GAAP) exists when the leave is
earned. When a governmental unit uses the accrual basis of accounting, in accordance
with GAAP, allowable leave costs are the lesser of the amount accrued or funded.

(5) The cost of fringe benefits in the form of employer contributions or expenses for
social security; employee life, health, unemployment, and worker's compensation
insurance (except as indicated in section 22, Insurance and indemnification); pension plan
costs (see subsection e.); and other similar benefits are allowable, provided such benefits
are granted under established written policies. Such benefits, whether treated as indirect
costs or as direct costs, shall be allocated to Federal awards and all other activities in a
manner consistent with the pattern of benefits attributable to the individuals or group(s)
of employees whose salaries and wages are chargeable to such Federal awards and other
activities.

e. Pension plan costs. Pension plan costs may be computed using a pay-as-you-go method
or an acceptable actuarial cost method in accordance with established written policies of
the governmental unit.

(1) For pension plans financed on a pay-as-you-go method, allowable costs will be
limited to those representing actual payments to retirees or their beneficiaries.

(2) Pension costs calculated using an actuarial cost- based method recognized by GAAP
are allowable for a given fiscal year if they are funded for that year within six months
after the end of that year. Costs funded after the six month period (or a later period agreed
to by the cognizant agency) are allowable in the year funded. The cognizant agency may
agree to an extension of the six month period if an appropriate adjustment is made to
compensate for the timing of the charges to the Federal Government and related Federal
reimbursement and the governmental unit's contribution to the pension fund. Adjustments
may be made by cash refund or other equitable procedures to compensate the Federal
Government for the time value of Federal reimbursements in excess of contributions to
the pension fund.

(3) Amounts funded by the governmental unit in excess of the actuarially determined
amount for a fiscal year may be used as the governmental unit's contribution in future
periods.

(4) When a governmental unit converts to an acceptable actuarial cost method, as defined
by GAAP, and funds pension costs in accordance with this method, the unfunded liability
at the time of conversion shall be allowable if amortized over a period of years in
accordance with GAAP.

(5) The Federal Government shall receive an equitable share of any previously allowed
pension costs (including earnings thereon) which revert or inure to the governmental unit
in the form of a refund, withdrawal, or other credit.

f. Post-retirement health benefits. Post-retirement health benefits (PRHB) refers to costs
of health insurance or health services not included in a pension plan covered by
subsection e. for retirees and their spouses, dependents, and survivors. PRHB costs may
be computed using a pay-as-you-go method or an acceptable actuarial cost method in
accordance with established written polices of the governmental unit.

(1) For PRHB financed on a pay as-you-go method, allowable costs will be limited to
those representing actual payments to retirees or their beneficiaries.

(2) PRHB costs calculated using an actuarial cost method recognized by GAAP are
allowable if they are funded for that year within six months after the end of that year.
Costs funded after the six month period (or a later period agreed to by the cognizant
agency) are allowable in the year funded. The cognizant agency may agree to an
extension of the six month period if an appropriate adjustment is made to compensate for
the timing of the charges to the Federal Government and related Federal reimbursements
and the governmental unit's contributions to the PRHB fund. Adjustments may be made
by cash refund, reduction in current year's PRHB costs, or other equitable procedures to
compensate the Federal Government for the time value of Federal reimbursements in
excess of contributions to the PRHB fund.

(3) Amounts funded in excess of the actuarially determined amount for a fiscal year may
be used as the government's contribution in a future period.

(4) When a governmental unit converts to an acceptable actuarial cost method and funds
PRHB costs in accordance with this method, the initial unfunded liability attributable to
prior years shall be allowable if amortized over a period of years in accordance with
GAAP, or, if no such GAAP period exists, over a period negotiated with the cognizant
agency.

(5) To be allowable in the current year, the PRHB costs must be paid either to:

(a) An insurer or other benefit provider as current year costs or premiums, or

(b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of
providing post-retirement benefits to retirees and other beneficiaries.

(6) The Federal Government shall receive an equitable share of any amounts of
previously allowed post-retirement benefit costs (including earnings thereon) which
revert or inure to the governmental unit in the form of a refund, withdrawal, or other
credit.
g. Severance pay.

(1) Payments in addition to regular salaries and wages made to workers whose employment is being
terminated are allowable to the extent that, in each case, they are required by (a) law, (b) employer-
employee agreement, or (c) established written policy.

(2) Severance payments (but not accruals) associated with normal turnover are allowable. Such
payments shall be allocated to all activities of the governmental unit as an indirect cost.

(3) Abnormal or mass severance pay will be considered on a case-by-case basis and is allowable only if
approved by the cognizant Federal agency.

h. Support of salaries and wages. These standards regarding time distribution are in addition to the
standards for payroll documentation.

(1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be
based on payrolls documented in accordance with generally accepted practice of the governmental unit
and approved by a responsible official(s) of the governmental unit.

(2) No further documentation is required for the salaries and wages of employees who work in a single
indirect cost activity.

(3) Where employees are expected to work solely on a single Federal award or cost objective, charges
for their salaries and wages will be supported by periodic certifications that the employees worked
solely on that program for the period covered by the certification. These certifications will be prepared
at least semi-annually and will be signed by the employee or supervisory official having first hand
knowledge of the work performed by the employee.

(4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or
wages will be supported by personnel activity reports or equivalent documentation which meets the
standards in subsection (5) unless a statistical sampling system (see subsection (6)) or other substitute
system has been approved by the cognizant Federal agency. Such documentary support will be required
where employees work on:

(a) More than one Federal award,

(b) A Federal award and a non-Federal award,

(c) An indirect cost activity and a direct cost activity,

(d) Two or more indirect activities which are allocated using different allocation bases, or

(e) An unallowable activity and a direct or indirect cost activity.

(5) Personnel activity reports or equivalent documentation must meet the following standards:

(a) They must reflect an after-the-fact distribution of the actual activity of each employee,

(b) They must account for the total activity for which each employee is compensated,

(c) They must be prepared at least monthly and must coincide with one or more pay periods, and
(d) They must be signed by the employee.

(e) Budget estimates or other distribution percentages determined before the services are performed do
not qualify as support for charges to Federal awards but may be used for interim accounting purposes,
provided that:

(i) The governmental unit's system for establishing the estimates produces reasonable approximations of
the activity actually performed;

(ii) At least quarterly, comparisons of actual costs to budgeted distributions based on the monthly
activity reports are made. Costs charged to Federal awards to reflect adjustments made as a result of the
activity actually performed may be recorded annually if the quarterly comparisons show the differences
between budgeted and actual costs are less than ten percent; and

(iii) The budget estimates or other distribution percentages are revised at least quarterly, if necessary, to
reflect changed circumstances.

(6) Substitute systems for allocating salaries and wages to Federal awards may be used in place of
activity reports. These systems are subject to approval if required by the cognizant agency. Such systems
may include, but are not limited to, random moment sampling, case counts, or other quantifiable
measures of employee effort.

(a) Substitute systems which use sampling methods (primarily for Temporary Assistance to Needy
Families (TANF), Medicaid, and other public assistance programs) must meet acceptable statistical
sampling standards including:

(i) The sampling universe must include all of the employees whose salaries and wages are to be
allocated based on sample results except as provided in subsection (c);

(ii) The entire time period involved must be covered by the sample; and

(iii) The results must be statistically valid and applied to the period being sampled.

(b) Allocating charges for the sampled employees' supervisors, clerical and support staffs, based on the
results of the sampled employees, will be acceptable.

(c) Less than full compliance with the statistical sampling standards noted in subsection (a) may be
accepted by the cognizant agency if it concludes that the amounts to be allocated to Federal awards will
be minimal, or if it concludes that the system proposed by the governmental unit will result in lower
costs to Federal awards than a system which complies with the standards.

(7) Salaries and wages of employees used in meeting cost sharing or matching requirements of Federal
awards must be supported in the same manner as those claimed as allowable costs under Federal awards.

i. Donated services.

(1) Donated or volunteer services may be furnished to a governmental unit by professional and technical
personnel, consultants, and other skilled and unskilled labor. The value of these services is not
reimbursable either as a direct or indirect cost. However, the value of donated services may be used to
meet cost sharing or matching requirements in accordance with the provisions of the Common Rule.
(2) The value of donated services utilized in the performance of a direct cost activity shall, when
material in amount, be considered in the determination of the governmental unit's indirect costs or
rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs.

(3) To the extent feasible, donated services will be supported by the same methods used by the
governmental unit to support the allocability of regular personnel services.

9. Contingency provisions. Contributions to a contingency reserve or any similar provision made for
events the occurrence of which cannot be foretold with certainty as to time, intensity, or with an
assurance of their happening, are unallowable. The term "contingency reserve" excludes self-insurance
reserves (see Attachment B, section 22.c.), pension plan reserves (see Attachment B, section 8.e.), and
post-retirement health and other benefit reserves (see Attachment B, section 8.f.) computed using
acceptable actuarial cost methods.
10. Defense and prosecution of criminal and civil proceedings, and claims.

a. The following costs are unallowable for contracts covered by 10 U.S.C. 2324(k), "Allowable costs
under defense contracts."

(1) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including
filing of false certification brought by the United States where the contractor is found liable or has
pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a false
certification).

(2) Costs incurred by a contractor in connection with any criminal, civil or administrative proceedings
commenced by the United States or a State to the extent provided in 10 U.S.C. 2324(k).

b. Legal expenses required in the administration of Federal programs are allowable. Legal expenses for
prosecution of claims against the Federal Government are unallowable.

11. Depreciation and use allowances.

a. Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting
from asset use. Compensation for the use of fixed assets on hand may be made through depreciation or
use allowances. A combination of the two methods may not be used in connection with a single class of
fixed assets (e.g., buildings, office equipment, computer equipment, etc.) except as provided for in
subsection g. Except for enterprise funds and internal service funds that are included as part of a
State/local cost allocation plan, classes of assets shall be determined on the same basis used for the
government-wide financial statements.
b. The computation of depreciation or use allowances shall be based on the acquisition cost of the assets
involved. Where actual cost records have not been maintained, a reasonable estimate of the original
acquisition cost may be used. The value of an asset donated to the governmental unit by an unrelated
third party shall be its fair market value at the time of donation. Governmental or quasi-governmental
organizations located within the same State shall not be considered unrelated third parties for this
purpose.
c. The computation of depreciation or use allowances will exclude:
(1) The cost of land;
(2) Any portion of the cost of buildings and equipment borne by or donated by the Federal Government
irrespective of where title was originally vested or where it presently resides; and
(3) Any portion of the cost of buildings and equipment contributed by or for the governmental unit, or a
related donor organization, in satisfaction of a matching requirement.
d. Where the depreciation method is followed, the period of useful service (useful life) established in
each case for usable capital assets must take into consideration such factors as type of construction,
nature of the equipment used, historical usage patterns, technological developments, and the renewal and
replacement policies of the governmental unit followed for the individual items or classes of assets
involved. In the absence of clear evidence indicating that the expected consumption of the asset will be
significantly greater in the early portions than in the later portions of its useful life, the straight line
method of depreciation shall be used.
Depreciation methods once used shall not be changed unless approved by the Federal cognizant or
awarding agency. When the depreciation method is introduced for application to an asset previously
subject to a use allowance, the annual depreciation charge thereon may not exceed the amount that
would have resulted had the depreciation method been in effect from the date of acquisition of the asset.
The combination of use allowances and depreciation applicable to the asset shall not exceed the total
acquisition cost of the asset or fair market value at time of donation.
e. When the depreciation method is used for buildings, a building's shell may be segregated from the
major component of the building (e.g., plumbing system, heating, and air conditioning system, etc.) and
each major component depreciated over its estimated useful life, or the entire building (i.e., the shell and
all components) may be treated as a single asset and depreciated over a single useful life.
f. Where the use allowance method is followed, the use allowance for buildings and improvements
(including land improvements, such as paved parking areas, fences, and sidewalks) will be computed at
an annual rate not exceeding two percent of acquisition costs. The use allowance for equipment will be
computed at an annual rate not exceeding 6 2/3 percent of acquisition cost. When the use allowance
method is used for buildings, the entire building must be treated as a single asset; the building's
components (e.g., plumbing system, heating and air condition, etc.) cannot be segregated from the
building's shell.
The two percent limitation, however, need not be applied to equipment which is merely attached or
fastened to the building but not permanently fixed to it and which is used as furnishings or decorations
or for specialized purposes (e.g., dentist chairs and dental treatment units, counters, laboratory benches
bolted to the floor, dishwashers, modular furniture, carpeting, etc.). Such equipment will be considered
as not being permanently fixed to the building if it can be removed without the destruction of, or need
for costly or extensive alterations or repairs, to the building or the equipment. Equipment that meets
these criteria will be subject to the 6 2/3 percent equipment use allowance limitation.
g. A reasonable use allowance may be negotiated for any assets that are considered to be fully
depreciated, after taking into consideration the amount of depreciation previously charged to the
government, the estimated useful life remaining at the time of negotiation, the effect of any increased
maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization
of the asset for the purpose contemplated.
h. Charges for use allowances or depreciation must be supported by adequate property records. Physical
inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to
ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with
State laws and procedures. When the depreciation method is followed, depreciation records indicating
the amount of depreciation taken each period must also be maintained.

12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations, including cash, property, and
services, made by the governmental unit, regardless of the recipient, are unallowable.
b. Donated services received:
(1) Donated or volunteer services may be furnished to a governmental unit by professional and technical
personnel, consultants, and other skilled and unskilled labor. The value of these services is not
reimbursable either as a direct or indirect cost. However, the value of donated services may be used to
meet cost sharing or matching requirements in accordance with the Federal Grants Management
Common Rule.
(2) The value of donated services utilized in the performance of a direct cost activity shall, when
material in amount, be considered in the determination of the governmental unit's indirect costs or
rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs.
(3) To the extent feasible, donated services will be supported by the same methods used by the
governmental unit to support the allocability of regular personnel services.

13. Employee morale, health, and welfare costs.

a. The costs of employee information publications, health or first-aid clinics and/or infirmaries,
recreational activities, employee counseling services, and any other expenses incurred in accordance
with the governmental unit's established practice or custom for the improvement of working conditions,
employer-employee relations, employee morale, and employee performance are allowable.
b. Such costs will be equitably apportioned to all activities of the governmental unit. Income generated
from any of these activities will be offset against expenses.

14. Entertainment. Costs of entertainment, including amusement, diversion, and social activities and any
costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging,
rentals, transportation, and gratuities) are unallowable.
15. Equipment and other capital expenditures.

a. For purposes of this subsection 15, the following definitions apply:
(1) "Capital Expenditures‖ means expenditures for the acquisition cost of capital assets (equipment,
buildings, land), or expenditures to make improvements to capital assets that materially increase their
value or useful life. Acquisition cost means the cost of the asset including the cost to put it in place.
Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the
cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable
for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in transit
insurance, freight, and installation may be included in, or excluded from the acquisition cost in
accordance with the governmental unit's regular accounting practices.
(2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life of
more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level
established by the governmental unit for financial statement purposes, or $5000.
(3) "Special purpose equipment" means equipment which is used only for research, medical, scientific,
or other technical activities. Examples of special purpose equipment include microscopes, x-ray
machines, surgical instruments, and spectrometers.
(4) "General purpose equipment" means equipment, which is not limited to research, medical, scientific
or other technical activities. Examples include office equipment and furnishings, modular offices,
telephone networks, information technology equipment and systems, air conditioning equipment,
reproduction and printing equipment, and motor vehicles.
b. The following rules of allowability shall apply to equipment and other capital expenditures:
(1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct
charges, except where approved in advance by the awarding agency.
(2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items
with a unit cost of $5000 or more have the prior approval of the awarding agency.
(3) Capital expenditures for improvements to land, buildings, or equipment which materially increase
their value or useful life are unallowable as a direct cost except with the prior approval of the awarding
agency.
(4) When approved as a direct charge pursuant to Attachment B, section 15.b (1), (2), and (3) above,
capital expenditures will be charged in the period in which the expenditure is incurred, or as otherwise
determined appropriate and negotiated with the awarding agency. In addition, Federal awarding agencies
are authorized at their option to waive or delegate the prior approval requirement.
(5) Equipment and other capital expenditures are unallowable as indirect costs. However, see section 11,
Depreciation and use allowance, for rules on the allowability of use allowances or depreciation on
buildings, capital improvements, and equipment. Also, see section 37, Rental costs, concerning the
allowability of rental costs for land, buildings, and equipment.
(6) The unamortized portion of any equipment written off as a result of a change in capitalization levels
may be recovered by continuing to claim the otherwise allowable use allowances or depreciation on the
equipment, or by amortizing the amount to be written off over a period of years negotiated with the
cognizant agency.
(7) When replacing equipment purchased in whole or in part with Federal funds, the governmental unit
may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the
cost of the replacement property.
16. Fines and penalties. Fines, penalties, damages, and other settlements resulting from violations (or
alleged violations) of, or failure of the governmental unit to comply with, Federal, State, local, or Indian
tribal laws and regulations are unallowable except when incurred as a result of compliance with specific
provisions of the Federal award or written instructions by the awarding agency authorizing in advance
such payments.

17. Fund raising and investment management costs.

a. Costs of organized fund raising, including financial campaigns, solicitation of gifts and bequests, and
similar expenses incurred to raise capital or obtain contributions are unallowable, regardless of the
purpose for which the funds will be used.

b. Costs of investment counsel and staff and similar expenses incurred to enhance income from
investments are unallowable. However, such costs associated with investments covering pension, self-
insurance, or other funds which include Federal participation allowed by this Circular are allowable.

c. Fund raising and investment activities shall be allocated an appropriate share of indirect costs under
the conditions described in subsection C.3.b. of Attachment A.

18. Gains and losses on disposition of depreciable property and other capital assets and substantial
relocation of Federal programs.

a. (1) Gains and losses on the sale, retirement, or other disposition of depreciable property shall be
included in the year in which they occur as credits or charges to the asset cost grouping(s) in which the
property was included. The amount of the gain or loss to be included as a credit or charge to the
appropriate asset cost grouping(s) shall be the difference between the amount realized on the property
and the undepreciated basis of the property.
(2) Gains and losses on the disposition of depreciable property shall not be recognized as a separate
credit or charge under the following conditions:

(a) The gain or loss is processed through a depreciation account and is reflected in the depreciation
allowable under sections 11 and 15.

(b) The property is given in exchange as part of the purchase price of a similar item and the gain or loss
is taken into account in determining the depreciation cost basis of the new item.

(c) A loss results from the failure to maintain permissible insurance, except as otherwise provided in
subsection 22.d.

(d) Compensation for the use of the property was provided through use allowances in lieu of
depreciation.

b. Substantial relocation of Federal awards from a facility where the Federal Government participated in
the financing to another facility prior to the expiration of the useful life of the financed facility requires
Federal agency approval. The extent of the relocation, the amount of the Federal participation in the
financing, and the depreciation charged to date may require negotiation of space charges for Federal
awards.

c. Gains or losses of any nature arising from the sale or exchange of property other than the property
covered in subsection a., e.g., land or included in the fair market value used in any adjustment resulting
from a relocation of Federal awards covered in subsection b. shall be excluded in computing Federal
award costs.

19. General government expenses.

a. The general costs of government are unallowable (except as provided in Attachment B, section 43,
Travel costs). These include:
(1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a political
subdivision or the chief executive of federally-recognized Indian tribal government;
(2) Salaries and other expenses of a State legislature, tribal council, or similar local governmental body,
such as a county supervisor, city council, school board, etc., whether incurred for purposes of
legislation or executive direction;
(3) Costs of the judiciary branch of a government;
(4) Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by
program statute or regulation (however, this does not preclude the allowability of other legal activities
of the Attorney General); and
(5) Costs of other general types of government services normally provided to the general public, such
as fire and police, unless provided for as a direct cost under a program statute or regulation.
b. For federally-recognized Indian tribal governments and Councils Of Governments (COGs), the
portion of salaries and expenses directly attributable to managing and operating Federal programs by the
chief executive and his staff is allowable
20. Goods or services for personal use. Costs of goods or services for personal use of the governmental
unit's employees are unallowable regardless of whether the cost is reported as taxable income to the
employees.
21. Idle facilities and idle capacity.

a. As used in this section the following terms have the meanings set forth below:
(1) "Facilities" means land and buildings or any portion thereof, equipment individually or collectively,
or any other tangible capital asset, wherever located, and whether owned or leased by the governmental
unit.
(2) "Idle facilities" means completely unused facilities that are excess to the governmental unit's current
needs.
(3) "Idle capacity" means the unused capacity of partially used facilities. It is the difference between: (a)
that which a facility could achieve under 100 percent operating time on a one-shift basis less operating
interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other normal
delays; and (b) the extent to which the facility was actually used to meet demands during the accounting
period. A multi-shift basis should be used if it can be shown that this amount of usage would normally
be expected for the type of facility involved.
(4) "Cost of idle facilities or idle capacity" means costs such as maintenance, repair, housing, rent, and
other related costs, e.g., insurance, interest, property taxes and depreciation or use allowances.
b. The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet fluctuations in workload; or
(2) Although not necessary to meet fluctuations in workload, they were necessary when acquired and are
now idle because of changes in program requirements, efforts to achieve more economical operations,
reorganization, termination, or other causes which could not have been reasonably foreseen. Under the
exception stated in this subsection, costs of idle facilities are allowable for a reasonable period of time,
ordinarily not to exceed one year, depending on the initiative taken to use, lease, or dispose of such
facilities.
c. The costs of idle capacity are normal costs of doing business and are a factor in the normal
fluctuations of usage or indirect cost rates from period to period. Such costs are allowable, provided that
the capacity is reasonably anticipated to be necessary or was originally reasonable and is not subject to
reduction or elimination by use on other Federal awards, subletting, renting, or sale, in accordance with
sound business, economic, or security practices. Widespread idle capacity throughout an entire facility
or among a group of assets having substantially the same function may be considered idle facilities.

22. Insurance and indemnification.

a. Costs of insurance required or approved and maintained, pursuant to the Federal award, are allowable.

b. Costs of other insurance in connection with the general conduct of activities are allowable subject to
the following limitations:

(1) Types and extent and cost of coverage are in accordance with the governmental unit's policy and
sound business practice.

(2) Costs of insurance or of contributions to any reserve covering the risk of loss of, or damage to,
Federal Government property are unallowable except to the extent that the awarding agency has
specifically required or approved such costs.

c. Actual losses which could have been covered by permissible insurance (through a self-insurance
program or otherwise) are unallowable, unless expressly provided for in the Federal award or as
described below. However, the Federal Government will participate in actual losses of a self insurance
fund that are in excess of reserves. Costs incurred because of losses not covered under nominal
deductible insurance coverage provided in keeping with sound management practice, and minor losses
not covered by insurance, such as spoilage, breakage, and disappearance of small hand tools, which
occur in the ordinary course of operations, are allowable.

d. Contributions to a reserve for certain self-insurance programs including workers compensation,
unemployment compensation, and severance pay are allowable subject to the following provisions:

(1) The type of coverage and the extent of coverage and the rates and premiums would have been
allowed had insurance (including reinsurance) been purchased to cover the risks. However, provision for
known or reasonably estimated self-insured liabilities, which do not become payable for more than one
year after the provision is made, shall not exceed the discounted present value of the liability. The rate
used for discounting the liability must be determined by giving consideration to such factors as the
governmental unit's settlement rate for those liabilities and its investment rate of return.

(2) Earnings or investment income on reserves must be credited to those reserves.

(3) Contributions to reserves must be based on sound actuarial principles using historical experience and
reasonable assumptions. Reserve levels must be analyzed and updated at least biennially for each major
risk being insured and take into account any reinsurance, coinsurance, etc. Reserve levels related to
employee-related coverages will normally be limited to the value of claims (a) submitted and
adjudicated but not paid, (b) submitted but not adjudicated, and (c) incurred but not submitted. Reserve
levels in excess of the amounts based on the above must be identified and justified in the cost allocation
plan or indirect cost rate proposal.

(4) Accounting records, actuarial studies, and cost allocations (or billings) must recognize any
significant differences due to types of insured risk and losses generated by the various insured activities
or agencies of the governmental unit. If individual departments or agencies of the governmental unit
experience significantly different levels of claims for a particular risk, those differences are to be
recognized by the use of separate allocations or other techniques resulting in an equitable allocation.

(5) Whenever funds are transferred from a self-insurance reserve to other accounts (e.g., general fund),
refunds shall be made to the Federal Government for its share of funds transferred, including earned or
imputed interest from the date of transfer.

e. Actual claims paid to or on behalf of employees or former employees for workers' compensation,
unemployment compensation, severance pay, and similar employee benefits (e.g., subsection 8.f. for
post retirement health benefits), are allowable in the year of payment provided (1) the governmental unit
follows a consistent costing policy and (2) they are allocated as a general administrative expense to all
activities of the governmental unit.

f. Insurance refunds shall be credited against insurance costs in the year the refund is received.

g. Indemnification includes securing the governmental unit against liabilities to third persons and other
losses not compensated by insurance or otherwise. The Federal Government is obligated to indemnify
the governmental unit only to the extent expressly provided for in the Federal award, except as provided
in subsection d.

h. Costs of commercial insurance that protects against the costs of the contractor for correction of the
contractor's own defects in materials or workmanship are unallowable.

23. Interest.
    a. Costs incurred for interest on borrowed capital or the use of a governmental unit‘s own funds,
    however represented, are unallowable except as specifically provided in subsection b. or authorized by
    Federal legislation.

b. Financing costs (including interest) paid or incurred which are associated with the otherwise allowable
     costs of building acquisition, construction, or fabrication, reconstruction or remodeling completed on or
     after October 1, 1980 is allowable subject to the conditions in (1) through (4) of this section 23.b.
     Financing costs (including interest) paid or incurred on or after September 1, 1995 for land or associated
     with otherwise allowable costs of equipment is allowable, subject to the conditions in (1) through (4).

    (1) The financing is provided (from other than tax or user fee sources) by a bona fide third party external
       to the governmental unit;

    (2) Thee assets are used in support of Federal awards;

    (3) Earnings on debt service reserve funds or interest earned on borrowed funds pending payment of the
       construction or acquisition costs are used to offset the current period's cost or the capitalized interest,
       as appropriate. Earnings subject to being reported to the Federal Internal Revenue Service under
       arbitrage requirements are excludable.

    (4) For debt arrangements over $1 million, unless the governmental unit makes an initial equity
       contribution to the asset purchase of 25 percent or more, the governmental unit shall reduce claims
       for interest cost by an amount equal to imputed interest earnings on excess cash flow, which is to be
       calculated as follows. Annually, non-Federal entities shall prepare a cumulative (from the inception
       of the project) report of monthly cash flows that includes inflows and outflows, regardless of the
       funding source. Inflows consist of depreciation expense, amortization of capitalized construction
       interest, and annual interest cost. For cash flow calculations, the annual inflow figures shall be
       divided by the number of months in the year (i.e., usually 12) that the building is in service for
       monthly amounts. Outflows consist of initial equity contributions, debt principal payments (less the
       pro rata share attributable to the unallowable costs of land) and interest payments. Where cumulative
       inflows exceed cumulative outflows, interest shall be calculated on the excess inflows for that period
       and be treated as a reduction to allowable interest cost. The rate of interest to be used to compute
       earnings on excess cash flows shall be the three-month Treasury bill closing rate as of the last
       business day of that month.

   (5) Interest attributable to fully depreciated assets is unallowable.

    24. Lobbying.

           a. General. The cost of certain influencing activities associated with obtaining grants, contracts,
    cooperative agreements, or loans is an unallowable cost. Lobbying with respect to certain grants,
    contracts, cooperative agreements, and loans shall be governed by the common rule, "New Restrictions
    on Lobbying" published at 55 FR 6736 (February 26, 1990), including definitions, and the Office of
    Management and Budget "Government-wide Guidance for New Restrictions on Lobbying" and notices
    published at 54 FR 52306 (December 20, 1989), 55 FR 24540 (June 15, 1990), and 57 FR 1772 (January
    15, 1992), respectively.

            b. Executive lobbying costs. Costs incurred in attempting to improperly influence either directly
    or indirectly, an employee or officer of the Executive Branch of the Federal Government to give
    consideration or to act regarding a sponsored agreement or a regulatory matter are unallowable.
    Improper influence means any influence that induces or tends to induce a Federal employee or officer to
give consideration or to act regarding a federally-sponsored agreement or regulatory matter on any basis
other than the merits of the matter.

25. Maintenance, operations, and repairs. Unless prohibited by law, the cost of utilities, insurance,
security, janitorial services, elevator service, upkeep of grounds, necessary maintenance, normal repairs
and alterations, and the like are allowable to the extent that they: (1) keep property (including Federal
property, unless otherwise provided for) in an efficient operating condition, (2) do not add to the
permanent value of property or appreciably prolong its intended life, and (3) are not otherwise included
in rental or other charges for space. Costs which add to the permanent value of property or appreciably
prolong its intended life shall be treated as capital expenditures (see sections 11 and 15).

26. Materials and supplies costs.

a. Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal award are
allowable.

b. Purchased materials and supplies shall be charged at their actual prices, net of applicable credits.
Withdrawals from general stores or stockrooms should be charged at their actual net cost under any
recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation
charges are a proper part of materials and supplies costs.

c. Only materials and supplies actually used for the performance of a Federal award may be charged as
direct costs.

d. Where federally-donated or furnished materials are used in performing the Federal award, such
materials will be used without charge.

27. Meetings and conferences. Costs of meetings and conferences, the primary purpose of which is the
dissemination of technical information, are allowable. This includes costs of meals, transportation, rental
of facilities, speakers' fees, and other items incidental to such meetings or conferences. But see
Attachment B, section 14, Entertainment costs.

28. Memberships, subscriptions, and professional activity costs.

a. Costs of the governmental unit‘s memberships in business, technical, and professional organizations
are allowable.
b. Costs of the governmental unit‘s subscriptions to business, professional, and technical periodicals are
allowable.
c. Costs of membership in civic and community, social organizations are allowable as a direct cost with
   the approval of the Federal awarding agency.
d. Costs of membership in organizations substantially engaged in lobbying are unallowable.
29. Patent costs.
a. The following costs relating to patent and copyright matters are allowable: (i) cost of preparing
disclosures, reports, and other documents required by the Federal award and of searching the art to the
extent necessary to make such disclosures; (ii) cost of preparing documents and any other patent costs
in connection with the filing and prosecution of a United States patent application where title or
royalty-free license is required by the Federal Government to be conveyed to the Federal Government;
and (iii) general counseling services relating to patent and copyright matters, such as advice on patent
and copyright laws, regulations, clauses, and employee agreements (but see Attachment B, sections 32,
Professional service costs, and 38, Royalties and other costs for use of patents and copyrights ).
b. The following costs related to patent and copyright matter are unallowable:
(i) Cost of preparing disclosures, reports, and other documents and of searching the art to the extent
necessary to make disclosures not required by the award
(ii) Costs in connection with filing and prosecuting any foreign patent application, or (ii) any United
States patent application, where the Federal award does not require conveying title or a royalty-free
license to the Federal Government (but see Attachment B, section 38., Royalties and other costs for use
of patents and copyrights ).

30. Plant and homeland security costs. Necessary and reasonable expenses incurred for routine and
homeland security to protect facilities, personnel, and work products are allowable. Such costs include,
but are not limited to, wages and uniforms of personnel engaged in security activities; equipment;
barriers; contractual security services; consultants; etc. Capital expenditures for homeland and plant
security purposes are subject to section 15., Equipment and other capital expenditures, of this Circular.
31. Pre-award costs. Pre-award costs are those incurred prior to the effective date of the award directly
pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply
with the proposed delivery schedule or period of performance. Such costs are allowable only to the
extent that they would have been allowable if incurred after the date of the award and only with the
written approval of the awarding agency.

32. Professional service costs.

a. Costs of professional and consultant services rendered by persons who are members of a particular
profession or possess a special skill, and who are not officers or employees of the governmental unit,
are allowable, subject to subparagraphs b and c when reasonable in relation to the services rendered
and when not contingent upon recovery of the costs from the Federal Government.

In addition, legal and related services are limited under Attachment B, section 10.

b. In determining the allowability of costs in a particular case, no single factor or any special
combination of factors is necessarily determinative. However, the following factors are relevant:

(1) The nature and scope of the service rendered in relation to the service required.

(2) The necessity of contracting for the service, considering the governmental unit's capability in the
particular area.

(3) The past pattern of such costs, particularly in the years prior to Federal awards.

(4) The impact of Federal awards on the governmental unit's business (i.e., what new problems have
arisen).

(5) Whether the proportion of Federal work to the governmental unit's total business is such as to
influence the
governmental unit in favor of incurring the cost, particularly where the services rendered are not of a
continuing nature and have little relationship to work under Federal grants and contracts.
(6) Whether the service can be performed more economically by direct employment rather than
contracting.
(7) The qualifications of the individual or concern rendering the service and the customary fees charged,
especially on non-Federal awards.
(8) Adequacy of the contractual agreement for the service (e.g., description of the service, estimate of
time required, rate of compensation, and termination provisions).
c. In addition to the factors in subparagraph b, retainer fees to be allowable must be supported by
available or rendered evidence of bona fide services available or rendered.

33. Proposal costs. Costs of preparing proposals for potential Federal awards are allowable. Proposal
costs should normally be treated as indirect costs and should be allocated to all activities of the
governmental unit utilizing the cost allocation plan and indirect cost rate proposal. However, proposal
costs may be charged directly to Federal awards with the prior approval of the Federal awarding agency.

34. Publication and printing costs.

a. Publication costs include the costs of printing (including the processes of composition, plate-making,
press work, binding, and the end products produced by such processes), distribution, promotion,
mailing, and general handling. Publication costs also include page charges in professional publications.
b. If these costs are not identifiable with a particular cost objective, they should be allocated as indirect
costs to all benefiting activities of the governmental unit.
c. Page charges for professional journal publications are allowable as a necessary part of research costs
where:
(1) The research papers report work supported by the Federal Government: and
(2) The charges are levied impartially on all research papers published by the journal, whether or not by
federally-sponsored authors

35. Rearrangement and alteration costs. Costs incurred for ordinary and normal rearrangement and
alteration of facilities are allowable. Special arrangements and alterations costs incurred specifically for
a Federal award are allowable with the prior approval of the Federal awarding agency.

36. Reconversion costs. Costs incurred in the restoration or rehabilitation of the governmental unit's
facilities to approximately the same condition existing immediately prior to commencement of Federal
awards, less costs related to normal wear and tear, are allowable.

37. Rental costs of buildings and equipment.

a. Subject to the limitations described in subsections b. through d. of this section, rental costs are
allowable to the extent that the rates are reasonable in light of such factors as: rental costs of comparable
property, if any; market conditions in the area; alternatives available; and, the type, life expectancy,
condition, and value of the property leased. Rental arrangements should be reviewed periodically to
determine if circumstances have changed and other options are available.
b. Rental costs under ―sale and lease back‖ arrangements are allowable only up to the amount that would
be allowed had the governmental unit continued to own the property. This amount would include
expenses such as depreciation or use allowance, maintenance, taxes, and insurance.
c. Rental costs under "less-than-arms-length" leases are allowable only up to the amount (as explained in
Attachment B, section 37.b) that would be allowed had title to the property vested in the governmental
unit. For this purpose, a less-than-arms-length lease is one under which one party to the lease agreement
is able to control or substantially influence the actions of the other. Such leases include, but are not
limited to those between (i) divisions of a governmental unit; (ii) governmental units under common
control through common officers, directors, or members; and (iii) a governmental unit and a director,
trustee, officer, or key employee of the governmental unit or his immediate family, either directly or
through corporations, trusts, or similar arrangements in which they hold a controlling interest. For
example, a governmental unit may establish a separate corporation for the sole purpose of owning
property and leasing it back to the governmental unit.
d. Rental costs under leases which are required to be treated as capital leases under GAAP are allowable
only up to the amount (as explained in subsection b) that would be allowed had the governmental unit
purchased the property on the date the lease agreement was executed. The provisions of Financial
Accounting Standards Board Statement 13, Accounting for Leases, shall be used to determine whether a
lease is a capital lease. Interest costs related to capital leases are allowable to the extent they meet the
criteria in Attachment B, section 23. Unallowable costs include amounts paid for profit, management
fees, and taxes that would not have been incurred had the governmental unit purchased the facility.

38. Royalties and other costs for the use of patents.
a. Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright,
patent, or rights thereto, necessary for the proper performance of the award are allowable unless:
(1) The Federal Government has a license or the right to free use of the patent or copyright.
(2) The patent or copyright has been adjudicated to be invalid, or has been administratively determined
to be invalid.
(3) The patent or copyright is considered to be unenforceable.
(4) The patent or copyright is expired.
b. Special care should be exercised in determining reasonableness where the royalties may have been
arrived at as a result of less-than-arm's-length bargaining, e.g.:
(1) Royalties paid to persons, including corporations, affiliated with the governmental unit.
(2) Royalties paid to unaffiliated parties, including corporations, under an agreement entered into in
contemplation that a Federal award would be made.
(3) Royalties paid under an agreement entered into after an award is made to a governmental unit.
c. In any case involving a patent or copyright formerly owned by the governmental unit, the amount of
royalty allowed should not exceed the cost which would have been allowed had the governmental unit
retained title thereto.

39. Selling and marketing. Costs of selling and marketing any products or services of the governmental
unit are unallowable (unless allowed under Attachment B, section 1. as allowable public relations costs
or under Attachment B, section 33. as allowable proposal costs.

40. Taxes.

a. Taxes that a governmental unit is legally required to pay are allowable, except for self-assessed taxes
that disproportionately affect Federal programs or changes in tax policies that disproportionately affect
Federal programs. This provision becomes effective for taxes paid during the governmental unit's first
fiscal year that begins on or after January 1, 1998, and applies thereafter.

b. Gasoline taxes, motor vehicle fees, and other taxes that are in effect user fees for benefits provided to
the Federal Government are allowable.

c. This provision does not restrict the authority of Federal agencies to identify taxes where Federal
participation is inappropriate. Where the identification of the amount of unallowable taxes would require
an inordinate amount of effort, the cognizant agency may accept a reasonable approximation thereof.

41. Termination costs applicable to sponsored agreements. Termination of awards generally gives rise to
the incurrence of costs, or the need for special treatment of costs, which would not have arisen had the
Federal award not been terminated. Cost principles covering these items are set forth below. They are to
be used in conjunction with the other provisions of this Circular in termination situations.
a. The cost of items reasonably usable on the governmental unit's other work shall not be allowable
unless the governmental unit submits evidence that it would not retain such items at cost without
sustaining a loss. In deciding whether such items are reasonably usable on other work of the
governmental unit, the awarding agency should consider the governmental unit's plans and orders for
current and scheduled activity. Contemporaneous purchases of common items by the governmental unit
shall be regarded as evidence that such items are reasonably usable on the governmental unit's other
work. Any acceptance of common items as allocable to the terminated portion of the Federal award shall
be limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of
the reasonable quantitative requirements of other work.
b. If in a particular case, despite all reasonable efforts by the governmental unit, certain costs cannot be
discontinued immediately after the effective date of termination, such costs are generally allowable
within the limitations set forth in this Circular, except that any such costs continuing after termination
due to the negligent or willful failure of the governmental unit to discontinue such costs shall be
unallowable.
c. Loss of useful value of special tooling, machinery, and equipment is generally allowable if:
(1) Such special tooling, special machinery, or equipment is not reasonably capable of use in the other
work of the governmental unit,
(2) The interest of the Federal Government is protected by transfer of title or by other means deemed
appropriate by the awarding agency, and
(3) The loss of useful value for any one terminated Federal award is limited to that portion of the acquisition
cost which bears the same ratio to the total acquisition cost as the terminated portion of the Federal
award bears to the entire terminated Federal award and other Federal awards for which the special
tooling, machinery, or equipment was acquired.
d. Rental costs under unexpired leases are generally allowable where clearly shown to have been
reasonably necessary for the performance of the terminated Federal award less the residual value of such
leases, if:
(1) the amount of such rental claimed does not exceed the reasonable use value of the property leased for
the period of the Federal award and such further period as may be reasonable, and
(2) the governmental unit makes all reasonable efforts to terminate, assign, settle, or otherwise reduce
the cost of such lease. There also may be included the cost of alterations of such leased property,
provided such alterations were necessary for the performance of the Federal award, and of reasonable
restoration required by the provisions of the lease.
e. Settlement expenses including the following are generally allowable:
(1) Accounting, legal, clerical, and similar costs reasonably necessary for:
(a) The preparation and presentation to the awarding agency of settlement claims and supporting data
with respect to the terminated portion of the Federal award, unless the termination is for default (see
Subpart __.44 of the Grants Management Common Rule implementing OMB Circular A-102); and
(b) The termination and settlement of subawards.
(2) Reasonable costs for the storage, transportation, protection, and disposition of property provided by
the Federal Government or acquired or produced for the Federal award, except when grantees or
contractors are reimbursed for disposals at a predetermined amount in accordance with Subparts__.31
and ___.32 of the Grants Management Common Rule implementing OMB Circular A-102.
f. Claims under subawards, including the allocable portion of claims which are common to the Federal
award, and to other work of the governmental unit are generally allowable.
An appropriate share of the governmental unit's indirect expense may be allocated to the amount of
settlements with subcontractors and/or subgrantees, provided that the amount allocated is otherwise
consistent with the basic guidelines contained in Attachment A. The indirect expense so allocated shall
exclude the same and similar costs claimed directly or indirectly as settlement expenses.
42. Training costs. The cost of training provided for employee development is allowable.
43. Travel costs.

a. General. Travel costs are the expenses for transportation, lodging, subsistence, and related items
incurred by employees who are in travel status on official business of the governmental unit. Such costs
may be charged on an actual cost basis, on a per diem or mileage basis in lieu of actual costs incurred, or
on a combination of the two, provided the method used is applied to an entire trip and not to selected
days of the trip, and results in charges consistent with those normally allowed in like circumstances in
the governmental unit‘s non-federally-sponsored activities. Notwithstanding the provisions of
Attachment B, section 19, General government expenses, travel costs of officials covered by that section
are allowable with the prior approval of an awarding agency when they are specifically related to
Federal awards.
b. Lodging and subsistence. Costs incurred by employees and officers for travel, including costs of
lodging, other subsistence, and incidental expenses, shall be considered reasonable and allowable only to
the extent such costs do not exceed charges normally allowed by the governmental unit in its regular
operations as the result of the governmental unit‘s written travel policy. In the absence of an acceptable,
written governmental unit policy regarding travel costs, the rates and amounts established under
subchapter I of Chapter 57, Title 5, United States Code (―Travel and Subsistence Expenses; Mileage
Allowances‖), or by the Administrator of General Services, or by the President (or his or her designee)
pursuant to any provisions of such subchapter shall apply to travel under Federal awards (48 CFR
31.205-46(a)).
c. Commercial air travel.
    (1) Airfare costs in excess of the customary standard commercial airfare (coach or equivalent),
    Federal Government contract airfare (where authorized and available), or the lowest commercial
    discount airfare are unallowable except when such accommodations would:
   (a) require circuitous routing;
   (b) require travel during unreasonable hours;
   (c) excessively prolong travel;
   (d) result in additional costs that would offset the transportation savings; or
   (e) offer accommodations not reasonably adequate for the traveler‘s medical needs. The
   governmental unit must justify and document these conditions on a case-by-case basis in order for
   the use of first-class airfare to be allowable in such cases.
(2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a
governmental unit's determinations that customary standard airfare or other discount airfare is
unavailable for specific trips if the governmental unit can demonstrate either of the following: (a) that
such airfare was not available in the specific case; or (b) that it is the governmental unit‘s overall
practice to make routine use of such airfare.
d. Air travel by other than commercial carrier. Costs of travel by governmental unit-owned, -leased, or -
chartered aircraft include the cost of lease, charter, operation (including personnel costs), maintenance,
depreciation, insurance, and other related costs. The portion of such costs that exceeds the cost of
allowable commercial air travel, as provided for in subsection c., is unallowable.
e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received
prior approval of the awarding agency. Each separate foreign trip must receive such approval. For
purposes of this provision, ―foreign travel‖ includes any travel outside Canada, Mexico, the United
States, and any United States territories and possessions. However, the term ―foreign travel‖ for a
governmental unit located in a foreign country means travel outside that country.
      ATTACHMENT M
A-21 Allowable Costs - Postsecondary
                           Attachment M – A-21

J. General provisions for selected items of cost.
Sections 1 through 54 provide principles to be applied in
establishing the allowability of certain items involved in
determining cost. These principles should apply irrespective of
whether a particular item of cost is properly treated as direct cost
or F&A cost. Failure to mention a particular item of cost is not
intended to imply that it is either allowable or unallowable; rather,
determination as to allowability in each case should be based on the
treatment provided for similar or related items of cost. In case of a
discrepancy between the provisions of a specific sponsored agreement
and the provisions below, the agreement should govern.
1. Advertising and public relations costs.
a. The term advertising costs means the costs of advertising media and
corollary administrative costs. Advertising media include magazines,
newspapers, radio and television, direct mail, exhibits, electronic or
computer transmittals, and the like.
b. The term public relations includes community relations and means those
activities dedicated to maintaining the image of the institution or
maintaining or promoting understanding and favorable relations with the
community or public at large or any segment of the public.
c. The only allowable advertising costs are those that are solely for:
(1) The recruitment of personnel required for the performance by the
institution of obligations arising under a sponsored agreement (See also
subsection b. of section J.42, Recruiting);
(2) The procurement of goods and services for the performance of a
sponsored agreement;
(3) The disposal of scrap or surplus materials acquired in the
performance of a sponsored agreement except when non-Federal entities are
reimbursed for disposal costs at a predetermined amount; or
(4) Other specific purposes necessary to meet the requirements of the
sponsored agreement.
d. The only allowable public relations costs are:
(1) Costs specifically required by the sponsored agrrement;
(2) Costs of communicating with the public and press pertaining to
specific activities or accomplishments which result from performance of
sponsored agreements (these costs are considered necessary as part of the
outreach effort for the sponsored agreement); or
(3) Costs of conducting general liaison with news media and government
public relations officers, to the extent that such activities are limited
to communication and liaison necessary keep the public informed on
matters of public concern, such as notices of Federal contract/grant
awards, financial matters, etc.
e. Costs identified in subsections c and d if incurred for more than one
sponsored agreement or for both sponsored work and other work of the
institution, are allowable to the extent that the principles in sections
D. (“Direct Costs”) and E. (“F & A Costs”) are observed.
f. Unallowable advertising and public relations costs include the
following:
(1) All advertising and public relations costs other than as specified in
subsections 1.c, 1.d and 1.e.
(2) Costs of meetings, conventions, convocations, or other events related
to other activities of the institution, including:
(a) Costs of displays, demonstrations, and exhibits;
(b) Costs of meeting rooms, hospitality suites, and other special
facilities used in conjunction with shows and other special events; and
(c) Salaries and wages of employees engaged in setting up and displaying
exhibits, making demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia, including models, gifts,
and souvenirs;
(4) Costs of advertising and public relations designed solely to promote
the institution.
2. Advisory councils.
Costs incurred by advisory councils or committees are allowable as a
direct cost where authorized by the Federal awarding agency or as an
indirect cost where allocable to sponsored agreements.
3. Alcoholic beverages.
Costs of alcoholic beverages are unallowable.
4. Alumni/ae activities.
Costs incurred for, or in support of, alumni/ae activities and similar
services are unallowable.
5. Audit costs and related services.
a. The costs of audits required by, and performed in accordance with,
the Single Audit Act, as implemented by Circular A-133, "Audits of
States, Local Governments, and Non-Profit Organizations” are
allowable. Also see 31 USC 7505(b) and section ___.230 (“Audit
Costs”) of Circular A-133.
b. Other audit costs are allowable if included in an indirect cost
rate proposal , or if specifically approved by the awarding agency as
a direct cost to an award.
c. The cost of agreed-upon procedures engagements to monitor
subrecipients who are exempted from A-133 under section ___.200(d)
are allowable, subject to the conditions listed in A-133, section
___.230 (b)(2).
6. Bad Debt.
Bad debts, including losses (whether actual or estimated) arising
from uncollectable accounts and other claims, related collection
costs, and related legal costs, are unallowable.
7. Bonding costs.
a. Bonding costs arise when the Federal Government requires assurance
against financial loss to itself or others by reason of the act or
default of the institution. They arise also in instances where the
institution requires similar assurance. Included are such bonds as
bid, performance, payment, advance payment, infringement, and
fidelity bonds.
b. Costs of bonding required pursuant to the terms of the award are
allowable.
c. Costs of bonding required by the institution in the general
conduct of its operations are allowable to the extent that such
bonding is in accordance with sound business practice and the rates
and premiums are reasonable under the circumstances.
8. Commencement and convocation costs.
Costs incurred for commencements and convocations are unallowable,
except as provided for in Section F.9.
9. Communication costs.
Costs incurred for telephone services, local and long distance
telephone calls, telegrams, postage, messenger, electronic or
computer transmittal services and the like are allowable.
10. Compensation for personal services.
a. General. Compensation for personal services covers all amounts
paid currently or accrued by the institution for services of
employees rendered during the period of performance under sponsored
agreements. Such amounts include salaries, wages, and fringe benefits
(see subsection f). These costs are allowable to the extent that the
total compensation to individual employees conforms to the
established policies of the institution, consistently applied, and
provided that the charges for work performed directly on sponsored
agreements and for other work allocable as F&A costs are determined
and supported as provided below. Charges to sponsored agreements may
include reasonable amounts for activities contributing and intimately
related to work under the agreements, such as delivering special
lectures about specific aspects of the ongoing activity, writing
reports and articles, participating in appropriate seminars,
consulting with colleagues and graduate students, and attending
meetings and conferences. Incidental work (that in excess of normal
for the individual), for which supplemental compensation is paid by
an institution under institutional policy, need not be included in
the payroll distribution systems described below, provided such work
and compensation are separately identified and documented in the
financial management system of the institution.
b. Payroll distribution.
(1) General Principles.
(a) The distribution of salaries and wages, whether treated as direct
or F&A costs, will be based on payrolls documented in accordance with
the generally accepted practices of colleges and universities.
Institutions may include in a residual category all activities that
are not directly charged to sponsored agreements, and that need not
be distributed to more than one activity for purposes of identifying
F&A costs and the functions to which they are allocable. The
components of the residual category are not required to be separately
documented.
(b) The apportionment of employees' salaries and wages which are
chargeable to more than one sponsored agreement or other cost
objective will be accomplished by methods which will-
(1) be in accordance with Sections A.2 and C;
(2) produce an equitable distribution of charges for employee's
activities; and
(3) distinguish the employees' direct activities from their F&A
activities.
(c) In the use of any methods for apportioning salaries, it is
recognized that, in an academic setting, teaching, research, service,
and administration are often inextricably intermingled. A precise
assessment of factors that contribute to costs is not always
feasible, nor is it expected. Reliance, therefore, is placed on
estimates in which a degree of tolerance is appropriate.
(d) There is no single best method for documenting the distribution
of charges for personal services. Methods for apportioning salaries
and wages, however, must meet the criteria specified in subsection
b.(2). Examples of acceptable methods are contained in subsection c.
Other methods that meet the criteria specified in subsection b.(2)
also shall be deemed acceptable, if a mutually satisfactory
alternative agreement is reached.
(2) Criteria for Acceptable Methods.
(a) The payroll distribution system will
(i) be incorporated into the official records of the institution;
(ii) reasonably reflect the activity for which the employee is
compensated by the institution; and
(iii) encompass both sponsored and all other activities on an
integrated basis, but may include the use of subsidiary records.
(Compensation for incidental work described in subsection a need not
be included.)
(b) The method must recognize the principle of after-the-fact
confirmation or determination so that costs distributed represent
actual costs, unless a mutually satisfactory alternative agreement is
reached. Direct cost activities and F&A cost activities may be
confirmed by responsible persons with suitable means of verification
that the work was performed. Confirmation by the employee is not a
requirement for either direct or F&A cost activities if other
responsible persons make appropriate confirmations.
(c) The payroll distribution system will allow confirmation of
activity allocable to each sponsored agreement and each of the
categories of activity needed to identify F&A costs and the functions
to which they are allocable. The activities chargeable to F&A cost
categories or the major functions of the institution for employees
whose salaries must be apportioned (see subsection b.(1)b)), if not
initially identified as separate categories, may be subsequently
distributed by any reasonable method mutually agreed to, including,
but not limited to, suitably conducted surveys, statistical sampling
procedures, or the application of negotiated fixed rates.
(d) Practices vary among institutions and within institutions as to
the activity constituting a full workload. Therefore, the payroll
distribution system may reflect categories of activities expressed as
a percentage distribution of total activities.
(e) Direct and F&A charges may be made initially to sponsored
agreements on the basis of estimates made before services are
performed. When such estimates are used, significant changes in the
corresponding work activity must be identified and entered into the
payroll distribution system. Short-term (such as one or two months)
fluctuation between workload categories need not be considered as
long as the distribution of salaries and wages is reasonable over the
longer term, such as an academic period.
(f) The system will provide for independent internal evaluations to
ensure the system's effectiveness and compliance with the above
standards.
(g) For systems which meet these standards, the institution will not
be required to provide additional support or documentation for the
effort actually performed.
c. Examples of Acceptable Methods for Payroll Distribution:
(1) Plan-Confirmation: Under this method, the distribution of
salaries and wages of professorial and professional staff applicable
to sponsored agreements is based on budgeted, planned, or assigned
work activity, updated to reflect any significant changes in work
distribution. A plan-confirmation system used for salaries and wages
charged directly or indirectly to sponsored agreements will meet the
following standards:
(a) A system of budgeted, planned, or assigned work activity will be
incorporated into the official records of the institution and
encompass both sponsored and all other activities on an integrated
basis. The system may include the use of subsidiary records.
(b) The system will reasonably reflect only the activity for which
the employee is compensated by the institution (compensation for
incidental work described in subsection a need not be included).
Practices vary among institutions and within institutions as to the
activity constituting a full workload. Hence, the system will reflect
categories of activities expressed as a percentage distribution of
total activities. (See Section H for treatment of F&A costs under the
simplified method for small institutions.)
(c) The system will reflect activity applicable to each sponsored
agreement and to each category needed to identify F&A costs and the
functions to which they are allocable. The system may treat F&A cost
activities initially within a residual category and subsequently
determine them by alternate methods as discussed in subsection
b.(2)(c).
(d) The system will provide for modification of an individual's
salary or salary distribution commensurate with a significant change
in the employee's work activity. Short-term (such as one or two
months) fluctuation between workload categories need not be
considered as long as the distribution of salaries and wages is
reasonable over the longer term, such as an academic period. Whenever
it is apparent that a significant change in work activity that is
directly or indirectly charged to sponsored agreements will occur or
has occurred, the change will be documented over the signature of a
responsible official and entered into the system.
(e) At least annually a statement will be signed by the employee,
principal investigator, or responsible official(s) using suitable
means of verification that the work was performed, stating that
salaries and wages charged to sponsored agreements as direct charges,
and to residual, F&A cost or other categories are reasonable in
relation to work performed.
(f) The system will provide for independent internal evaluation to
ensure the system's integrity and compliance with the above
standards.
(g) In the use of this method, an institution shall not be required
to provide additional support or documentation for the effort
actually performed.
(2) After-the-fact Activity Records: Under this system the
distribution of salaries and wages by the institution will be
supported by activity reports as prescribed below.
(a) Activity reports will reflect the distribution of activity
expended by employees covered by the system (compensation for
incidental work as described in subsection a need not be included).
(b) These reports will reflect an after-the-fact reporting of the
percentage distribution of activity of employees. Charges may be made
initially on the basis of estimates made before the services are
performed, provided that such charges are promptly adjusted if
significant differences are indicated by activity records.
(c) Reports will reasonably reflect the activities for which
employees are compensated by the institution. To confirm that the
distribution of activity represents a reasonable estimate of the work
performed by the employee during the period, the reports will be
signed by the employee, principal investigator, or responsible
official(s) using suitable means of verification that the work was
performed.
(d) The system will reflect activity applicable to each sponsored
agreement and to each category needed to identify F&A costs and the
functions to which they are allocable. The system may treat F&A cost
activities initially within a residual category and subsequently
determine them by alternate methods as discussed in subsection
b.(2)(c).
(e) For professorial and professional staff, the reports will be
prepared each academic term, but no less frequently than every six
months. For other employees, unless alternate arrangements are agreed
to, the reports will be prepared no less frequently than monthly and
will coincide with one or more pay periods.
(f) 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 in subsections (a)
through (e).
(3) Multiple Confirmation Records: Under this system, the
distribution of salaries and wages of professorial and professional
staff will be supported by records which certify separately for
direct and F&A cost activities as prescribed below.
(a) For employees covered by the system, there will be direct cost
records to reflect the distribution of that activity expended which
is to be allocable as direct cost to each sponsored agreement. There
will also be F&A cost records to reflect the distribution of that
activity to F&A costs. These records may be kept jointly or
separately (but are to be certified separately, see below).
(b) Salary and wage charges may be made initially on the basis of
estimates made before the services are performed, provided that such
charges are promptly adjusted if significant differences occur.
(c) Institutional records will reasonably reflect only the activity
for which employees are compensated by the institution (compensation
for incidental work as described in subsection a need not be
included).
(d) The system will reflect activity applicable to each sponsored
agreement and to each category needed to identify F&A costs and the
functions to which they are allocable.
(e) To confirm that distribution of activity represents a reasonable
estimate of the work performed by the employee during the period, the
record for each employee will include:
(1) the signature of the employee or of a person having direct
knowledge of the work, confirming that the record of activities
allocable as direct costs of each sponsored agreement is appropriate;
and,
(2) the record of F&A costs will include the signature of responsible
person(s) who use suitable means of verification that the work was
performed and is consistent with the overall distribution of the
employee's compensated activities. These signatures may all be on the
same document.
(f) The reports will be prepared each academic term, but no less
frequently than every six months.
(g) 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
purposes, provided they meet the requirements in subsections (a)
through (f).
d. Salary rates for faculty members.
(1) Salary rates for academic year. Charges for work performed on
sponsored agreements by faculty members during the academic year will
be based on the individual faculty member's regular compensation for
the continuous period which, under the policy of the institution
concerned, constitutes the basis of his salary. Charges for work
performed on sponsored agreements during all or any portion of such
period are allowable at the base salary rate. In no event will
charges to sponsored agreements, irrespective of the basis of
computation, exceed the proportionate share of the base salary for
that period. This principle applies to all members of the faculty at
an institution. Since intra-university consulting is assumed to be
undertaken as a university obligation requiring no compensation in
addition to full-time base salary, the principle also applies to
faculty members who function as consultants or otherwise contribute
to a sponsored agreement conducted by another faculty member of the
same institution. However, in unusual cases where consultation is
across departmental lines or involves a separate or remote operation,
and the work performed by the consultant is in addition to his
regular departmental load, any charges for such work representing
extra compensation above the base salary are allowable provided that
such consulting arrangements are specifically provided for in the
agreement or approved in writing by the sponsoring agency.
(2) Periods outside the academic year.
(a) Except as otherwise specified for teaching activity in subsection
(b), charges for work performed by faculty members on sponsored
agreements during the summer months or other period not included in
the base salary period will be determined for each faculty member at
a rate not in excess of the base salary divided by the period to
which the base salary relates, and will be limited to charges made in
accordance with other parts of this section. The base salary period
used in computing charges for work performed during the summer months
will be the number of months covered by the faculty member's official
academic year appointment.
(b) Charges for teaching activities performed by faculty members on
sponsored agreements during the summer months or other periods not
included in the base salary period will be based on the normal policy
of the institution governing compensation to faculty members for
teaching assignments during such periods.
(3) Part-time faculty. Charges for work performed on sponsored
agreements by faculty members having only part-time appointments will
be determined at a rate not in excess of that regularly paid for the
part-time assignments. For example, an institution pays $5000 to a
faculty member for half-time teaching during the academic year. He
devoted one-half of his remaining time to a sponsored agreement.
Thus, his additional compensation, chargeable by the institution to
the agreement, would be one-half of $5000, or $2500.
e. Noninstitutional professional activities. Unless an arrangement is
specifically authorized by a Federal sponsoring agency, an
institution must follow its institution-wide policies and practices
concerning the permissible extent of professional services that can
be provided outside the institution for noninstitutional
compensation. Where such institution-wide policies do not exist or do
not adequately define the permissible extent of consulting or other
noninstitutional activities undertaken for extra outside pay, the
Federal Government may require that the effort of professional staff
working on sponsored agreements be allocated between (1)
institutional activities, and (2) noninstitutional professional
activities. If the sponsoring agency considers the extent of
noninstitutional professional effort excessive, appropriate
arrangements governing compensation will be negotiated on a case-by-
case basis.
f. Fringe benefits.
(1) Fringe benefits in the form of regular compensation paid to
employees during periods of authorized absences from the job, such as
for annual leave, sick leave, military leave, and the like, are
allowable, provided such costs are distributed to all institutional
activities in proportion to the relative amount of time or effort
actually devoted by the employees. See subsection 11.f.(4) for
treatment of sabbatical leave.
(2) Fringe benefits in the form of employer contributions or expenses
for social security, employee insurance, workmen's compensation
insurance, tuition or remission of tuition for individual employees
are allowable, provided such benefits are granted in accordance with
established educational institutional policies, and are distributed
to all institutional activities on an equitable basis. Tuition
benefits for family members other than the employee are unallowable
for fiscal years beginning after September 30, 1998. See Section
J.45.b, Scholarships and student aid costs, for treatment of tuition
remission provided to students.
(3) Rules for pension plan costs are as follows:
(a) Costs of the institution's pension plan which are incurred in
accordance with the established policies of the institution are
allowable, provided: (i) such policies meet the test of
reasonableness, (ii) the methods of cost allocation are equitable for
all activities, (iii) the amount of pension cost assigned to each
fiscal year is determined in accordance with subsection (b), and (iv)
the cost assigned to a given fiscal year is paid or funded for all
plan participants within six months after the end of that year.
However, increases to normal and past service pension costs caused by
a delay in funding the actuarial liability beyond 30 days after each
quarter of the year to which such costs are assignable are
unallowable.
(b) The amount of pension cost assigned to each fiscal year shall be
determined in accordance with generally accepted accounting
principles. Institutions may elect to follow the "Cost Accounting
Standard for Composition and Measurement of Pension Cost" (48 Part
9904-412).
(c) Premiums paid for pension plan termination insurance pursuant to
the Employee Retirement Income Security Act (ERISA) of 1974 (Pub. L.
93-406) are allowable. Late payment charges on such premiums are
unallowable. Excise taxes on accumulated funding deficiencies and
prohibited transactions of pension plan fiduciaries imposed under
ERISA are also unallowable.
(4) Rules for sabbatical leave are as follows:
(a) Costs of leave of absence by employees for performance of
graduate work or sabbatical study, travel, or research are allowable
provided the institution has a uniform policy on sabbatical leave for
persons engaged in instruction and persons engaged in research. Such
costs will be allocated on an equitable basis among all related
activities of the institution.
(b) Where sabbatical leave is included in fringe benefits for which a
cost is determined for assessment as a direct charge, the aggregate
amount of such assessments applicable to all work of the institution
during the base period must be reasonable in relation to the
institution's actual experience under its sabbatical leave policy.
(5) Fringe benefits may be assigned to cost objectives by identifying
specific benefits to specific individual employees or by allocating
on the basis of institution-wide salaries and wages of the employees
receiving the benefits. When the allocation method is used, separate
allocations must be made to selective groupings of employees, unless
the institution demonstrates that costs in relationship to salaries
and wages do not differ significantly for different groups of
employees. Fringe benefits shall be treated in the same manner as the
salaries and wages of the employees receiving the benefits. The
benefits related to salaries and wages treated as direct costs shall
also be treated as direct costs; the benefits related to salaries and
wages treated as F&A costs shall be treated as F&A costs.
g. Institution-furnished automobiles.
That portion of the cost of institution-furnished automobiles that
relates to personal use by employees (including transportation to and
from work) is unallowable regardless of whether the cost is reported
as taxable income to the employees.
h. Severance pay. (1) Severance pay is compensation in addition to
regular salary and wages which is paid by an institution to employees
whose services are being terminated. Costs of severance pay are
allowable only to the extent that such payments are required by law,
by employer-employee agreement, by established policy that
constitutes in effect an implied agreement on the institution's part,
or by circumstances of the particular employment. (2) Severance
payments that are due to normal recurring turnover and which
otherwise meet the conditions of subsection (1) may be allowed
provided the actual costs of such severance payments are regarded as
expenses applicable to the current fiscal year and are equitably
distributed among the institution's activities during that period.
(3) Severance payments that are due to abnormal or mass terminations
are of such conjectural nature that allowability must be determined
on a case-by-case basis. However, the Federal Government recognizes
its obligation to participate, to the extent of its fair share, in
any specific payment. (4) Costs incurred in excess of the
institution's normal severance pay policy applicable to all persons
employed by the institution upon termination of employment are
unallowable.
11. Contingency provisions.
Contributions to a contingency reserve or any similar provision made
for events the occurrence of which cannot be foretold with certainty
as to time, intensity, or with an assurance of their happening, are
unallowable, except as noted in the cost principles in this circular
regarding self-insurance, pensions, severance and post-retirement
health costs.
12. Deans of faculty and graduate schools.
The salaries and expenses of deans of faculty and graduate schools,
or their equivalents, and their staffs, are allowable.
13. Defense and prosecution of criminal and civil proceedings,
claims, appeals and patent infringement.
a. Definitions.
"Conviction," as used herein, means a judgment or conviction of a
criminal offense by any court of competent jurisdiction, whether
entered upon verdict or a plea, including a conviction due to a plea
of nolo contendere.
"Costs," include, but are not limited to, administrative and clerical
expenses; the cost of legal services, whether performed by in-house
or private counsel; the costs of the services of accountants,
consultants, or others retained by the institution to assist it;
costs of employees, officers and trustees, and any similar costs
incurred before, during, and after commencement of a judicial or
administrative proceeding that bears a direct relationship to the
proceedings.
"Fraud," as used herein, means –
(1) acts of fraud or corruption or attempts to defraud the Federal
Government or to corrupt its agents;
(2) acts that constitute a cause for debarment or suspension (as
specified in agency regulations), and (3) acts which violate the
False Claims Act, 31 U.S.C., sections 3729-3731, or the Anti-kickback
Act, 41 U.S.C., sections 51 and 54.
"Penalty," does not include restitution, reimbursement, or
compensatory damages.
"Proceeding," includes an investigation.
b. (1) Except as otherwise described herein, costs incurred in
connection with any criminal, civil or administrative proceeding
(including filing of a false certification) commenced by the Federal
Government, or a State, local or foreign government, are not
allowable if the proceeding
(a) relates to a violation of, or failure to comply with, a Federal,
State, local or foreign statute or regulation, by the institution
(including its agents and employees); and
(b) results in any of the following dispositions:
(i) In a criminal proceeding, a conviction.
(ii) In a civil or administrative proceeding involving an allegation
of fraud or similar misconduct, a determination of institutional
liability.
(iii) In the case of any civil or administrative proceeding, the
imposition of a monetary penalty.
(iv) A final decision by an appropriate Federal official to debar or
suspend the institution, to rescind or void an award, or to terminate
an award for default by reason of a violation or failure to comply
with a law or regulation.
(v) A disposition by consent or compromise, if the action could have
resulted in any of the dispositions described in subsections (i)
through (iv).
(2) If more than one proceeding involves the same alleged misconduct,
the costs of all such proceedings shall be unallowable if any one of
them results in one of the dispositions shown in subsection b.
c. If a proceeding referred to in subsection b. is commenced by the
Federal Government and is resolved by consent or compromise pursuant
to an agreement entered into by the institution and the Federal
Government, then the costs incurred by the institution in connection
with such proceedings that are otherwise not allowable under
subsection b. may be allowed to the extent specifically provided in
such agreement.
d. If a proceeding referred to in subsection b. is commenced by a
State, local or foreign government, the authorized Federal official
may allow the costs incurred by the institution for such proceedings,
if such authorized official determines that the costs were incurred
as a result of –
(1) a specific term or condition of a federally-sponsored agreement;
or
(2) specific written direction of an authorized official of the
sponsoring agency.
e. Costs incurred in connection with proceedings described in
subsection b, but which are not made unallowable by that subsection,
may be allowed by the Federal Government, but only to the extent
that:
(1) The costs are reasonable in relation to the activities required
to deal with the proceeding and the underlying cause of action;
(2) Payment of the costs incurred, as allowable and allocable costs,
is not prohibited by any other provision(s) of the sponsored
agreement;
(3) The costs are not otherwise recovered from the Federal Government
or a third party, either directly as a result of the proceeding or
otherwise; and,
(4) The percentage of costs allowed does not exceed the percentage
determined by an authorized Federal official to be appropriate
considering the complexity of procurement litigation, generally
accepted principles governing the award of legal fees in civil
actions involving the United States as a party, and such other
factors as may be appropriate. Such percentage shall not exceed 80
percent. However, if an agreement reached under subsection c has
explicitly considered this 80 percent limitation and permitted a
higher percentage, then the full amount of costs resulting from that
agreement shall be allowable.
f. Costs incurred by the institution in connection with the defense
of suits brought by its employees or ex-employees under section 2 of
the Major Fraud Act of 1988 (Pub. L. 100-700), including the cost of
all relief necessary to make such employee whole, where the
institution was found liable or settled, are unallowable.
g. Costs of legal, accounting, and consultant services, and related
costs, incurred in connection with defense against Federal Government
claims or appeals, or the prosecution of claims or appeals against
the Federal Government, are unallowable.
h. Costs of legal, accounting, and consultant services, and related
costs, incurred in connection with patent infringement litigation,
are unallowable unless otherwise provided for in the sponsored
agreements.
i. Costs, which may be unallowable under this section, including
directly associated costs, shall be segregated and accounted for by
the institution separately. During the pendency of any proceeding
covered by subsections b and f, the Federal Government shall
generally withhold payment of such costs. However, if in the best
interests of the Federal Government, the Federal Government may
provide for conditional payment upon provision of adequate security,
or other adequate assurance, and agreement by the institution to
repay all unallowable costs, plus interest, if the costs are
subsequently determined to be unallowable.
14. Depreciation and use allowances.
a. Institutions may be compensated for the use of their buildings,
capital improvements, and equipment, provided that they are used,
needed in the institutions' activities, and properly allocable to
sponsored agreements. Such compensation shall be made by computing
either depreciation or use allowance. Use allowances are the means of
providing such compensation when depreciation or other equivalent
costs are not computed. The allocation for depreciation or use
allowance shall be made in accordance with Section F.2. Depreciation
and use allowances are computed applying the following rules:
b. The computation of depreciation or use allowances shall be based
on the acquisition cost of the assets involved. The acquisition cost
of an asset donated to the institution by a third party shall be its
fair market value at the time of the donation.
c. For this purpose, the acquisition cost will exclude:
(1) the cost of land;
(2) any portion of the cost of buildings and equipment borne by or
donated by the Federal Government, irrespective of where title was
originally vested or where it is presently located; and
(3) any portion of the cost of buildings and equipment contributed by
or for the institution where law or agreement prohibits recovery.
d. In the use of the depreciation method, the following shall be
observed:
(1) The period of useful service (useful life) established in each
case for usable capital assets must take into consideration such
factors as type of construction, nature of the equipment,
technological developments in the particular area, and the renewal
and replacement policies followed for the individual items or classes
of assets involved.
(2) The depreciation method used to charge the cost of an asset (or
group of assets) to accounting periods shall reflect the pattern of
consumption of the asset during its useful life.
In the absence of clear evidence indicating that the expected
consumption of the asset will be significantly greater in the early
portions than in the later portions of its useful life, the straight-
line method shall be presumed to be the appropriate method.
Depreciation methods once used shall not be changed unless approved
in advance by the cognizant Federal agency. The depreciation methods
used to calculate the depreciation amounts for F&A rate purposes
shall be the same methods used by the institution for its financial
statements. This requirement does not apply to those institutions
(e.g., public institutions of higher education) which are not
required to record depreciation by applicable generally accepted
accounting principles (GAAP).
(3) Where the depreciation method is introduced to replace the use
allowance method, depreciation shall be computed as if the asset had
been depreciated over its entire life (i.e., from the date the asset
was acquired and ready for use to the date of disposal or withdrawal
from service). The aggregate amount of use allowances and
depreciation attributable to an asset (including imputed depreciation
applicable to periods prior to the conversion to the use allowance
method as well as depreciation after the conversion) may be less
than, and in no case, greater than the total acquisition cost of the
asset.
(4) The entire building, including the shell and all components, may
be treated as a single asset and depreciated over a single useful
life. A building may also be divided into multiple components. Each
component item may then be depreciated over its estimated useful
life. The building components shall be grouped into three general
components of a building: building shell (including construction and
design costs), building services systems (e.g., elevators, HVAC,
plumbing system and heating and air-conditioning system) and fixed
equipment (e.g., sterilizers, casework, fume hoods, cold rooms and
glassware/washers). In exceptional cases, a Federal cognizant agency
may authorize a institution to use more than these three groupings.
When a institution elects to depreciate its buildings by its
components, the same depreciation methods must be used for F&A
purposes and financial statement purposes, as described in subsection
d.2.
(5) Where the depreciation method is used for a particular class of
assets, no depreciation may be allowed on any such assets that have
outlived their depreciable lives. (See also subsection e.(3))
e. Under the use allowance method, the following shall be observed:
(1) The use allowance for buildings and improvements (including
improvements such as paved parking areas, fences, and sidewalks)
shall be computed at an annual rate not exceeding two percent of
acquisition cost.
The use allowance for equipment shall be computed at an annual rate
not exceeding six and two-thirds percent of acquisition cost. Use
allowance recovery is limited to the acquisition cost of the assets.
For donated assets, use allowance recovery is limited to the fair
market value of the assets at the time of donation.
(2) In contrast to the depreciation method, the entire building must
be treated as a single asset without separating its "shell" from
other building components under the use allowance method. The entire
building must be treated as a single asset, and the two-percent use
allowance limitation must be applied to all parts of the building.
The two-percent limitation, however, need not be applied to equipment
or other assets that are merely attached or fastened to the building
but not permanently fixed and are used as furnishings, decorations or
for specialized purposes (e.g., dentist chairs and dental treatment
units, counters, laboratory benches bolted to the floor, dishwashers,
modular furniture, and carpeting). Such equipment and assets will be
considered as not being permanently fixed to the building if they can
be removed without the need for costly or extensive alterations or
repairs to the building to make the space usable for other purposes.
Equipment and assets that meet these criteria will be subject to the
6 2/3 percent equipment use allowance.
(3) A reasonable use allowance may be negotiated for any assets that
are considered to be fully depreciated, after taking into
consideration the amount of depreciation previously charged to the
Federal Government, the estimated useful life remaining at the time
of negotiation, the effect of any increased maintenance charges,
decreased efficiency due to age, and any other factors pertinent to
the utilization of the asset for the purpose contemplated.
(4) Notwithstanding subsection e.(3), once a institution converts
from one cost recovery methodology to another, acquisition costs not
recovered may not be used in the calculation of the use allowance in
subsection e.(3).
f. Except as otherwise provided in subsections b. through e., a
combination of the depreciation and use allowance methods may not be
used, in like circumstances, for a single class of assets (e.g.,
buildings, office equipment, and computer equipment).
g. Charges for use allowances or depreciation must be supported by
adequate property records, and physical inventories must be taken at
least once every two years to ensure that the assets exist and are
usable, used, and needed. Statistical sampling techniques may be used
in taking these inventories. In addition, when the depreciation
method is used, adequate depreciation records showing the amount of
depreciation taken each period must also be maintained.
h. This section applies to the largest college and university
recipients of Federal research and development funds as displayed in
Exhibit A, List of Colleges and Universities Subject to Section
J.14.h of Circular A-21.
(1) Institutions shall expend currently, or reserve for expenditure
within the next five years, the portion of F&A cost payments made for
depreciation or use allowances under sponsored research agreements,
consistent with Section F.2, to acquire or improve research
facilities. This provision applies only to Federal agreements, which
reimburse F&A costs at a full negotiated rate. These funds may only
be used for (a) liquidation of the principal of debts incurred to
acquire assets that are used directly for organized research
activities, or (b) payments to acquire, repair, renovate, or improve
buildings or equipment directly used for organized research. For
buildings or equipment not exclusively used for organized research
activity, only appropriately proportionate amounts will be considered
to have been expended for research facilities.
(2) An assurance that an amount equal to the Federal reimbursements
has been appropriately expended or reserved to acquire or improve
research facilities shall be submitted as part of each F&A cost
proposal submitted to the cognizant Federal agency which is based on
costs incurred on or after October 1, 1991. This assurance will cover
the cumulative amounts of funds received and expended during the
period beginning after the period covered by the previous assurance
and ending with the fiscal year on which the proposal is based. The
assurance shall also cover any amounts reserved from a prior period
in which the funds received exceeded the amounts expended.
15. Donations and contributions.
a. Contributions or Donations rendered.
Contributions or donations, including cash, property, and services,
made by the institution, regardless of the recipient, are
unallowable.
b. Donated services received.
Donated or volunteer services may be furnished to a institution by
professional and technical personnel, consultants, and other skilled
and unskilled labor. The value of these services is not reimbursable
either as a direct or F&A cost. However, the value of donated
services may be used to meet cost sharing or matching requirements in
accordance with Circular A-110.
c. Donated property.
The value of donated property is not reimbursable either as a direct
or F&A cost, except that depreciation or use allowances on donated
assets are permitted in accordance with Section J.14. The value of
donated property may be used to meet cost sharing or matching
requirements, in accordance with Circular A-110.
16. Employee morale, health, and welfare costs and costs.
a. The costs of employee information publications, health or first-
aid clinics and/or infirmaries, recreational activities, employee
counseling services, and any other expenses incurred in accordance
with the institution's established practice or custom for the
improvement of working conditions, employer-employee relations,
employee morale, and employee performance are allowable.
b. Such costs will be equitably apportioned to all activities of the
institution. Income generated from any of these activities will be
credited to the cost thereof unless such income has been irrevocably
set over to employee welfare organizations.
c. Losses resulting from operating food services are allowable only
if the institution’s objective is to operate such services on a
break-even basis. Losses sustained because of operating objectives
other than the above are allowable only (a) where the institution can
demonstrate unusual circumstances, and (b) with the approval of the
cognizant Federal agency.
17. Entertainment costs.
Costs of entertainment, including amusement, diversion, and social
activities and any costs directly associated with such costs (such as
tickets to shows or sports events, meals, lodging, rentals,
transportation, and gratuities) are unallowable.
18. Equipment and other capital expenditures.
a. For purposes of this subsection, the following definitions apply:
(1) "Capital Expenditures” means expenditures for the acquisition
cost of capital assets (equipment, buildings, and land), or
expenditures to make improvements to capital assets that materially
increase their value or useful life. Acquisition cost means the cost
of the asset including the cost to put it in place. Acquisition cost
for equipment, for example, means the net invoice price of the
equipment, including the cost of any modifications, attachments,
accessories, or auxiliary apparatus necessary to make it usable for
the purpose for which it is acquired. Ancillary charges, such as
taxes, duty, protective in transit insurance, freight, and
installation may be included in, or excluded from the acquisition
cost in accordance with the institution's regular accounting
practices.
(2) "Equipment" means an article of nonexpendable, tangible personal
property having a useful life of more than one year and an
acquisition cost which equals or exceeds the lesser of the
capitalization level established by the institution for financial
statement purposes, or $5000.
(3) "Special purpose equipment" means equipment which is used only
for research, medical, scientific, or other technical activities.
Examples of special purpose equipment include microscopes, x-ray
machines, surgical instruments, and spectrometers.
(4) "General purpose equipment" means equipment, which is not limited
to research, medical, scientific or other technical activities.
Examples include office equipment and furnishings, modular offices,
telephone networks, information technology equipment and systems, air
conditioning equipment, reproduction and printing equipment, and
motor vehicles.
b. The following rules of allowability shall apply to equipment and
other capital expenditures:
(1) Capital expenditures for general purpose equipment, buildings,
and land are unallowable as direct charges, except where approved in
advance by the awarding agency.
(2) Capital expenditures for special purpose equipment are allowable
as direct costs, provided that items with a unit cost of $5000 or
more have the prior approval of the awarding agency.
(3) Capital expenditures for improvements to land, buildings, or
equipment which materially increase their value or useful life are
unallowable as a direct cost except with the prior approval of the
awarding agency.
(4) When approved as a direct charge pursuant to subsections
J.18.b(1) through (3)above, capital expenditures will be charged in
the period in which the expenditure is incurred, or as otherwise
determined appropriate by and negotiated with the awarding agency.
(5) Equipment and other capital expenditures are unallowable as
indirect costs. However, see section J.14, Depreciation and use
allowances, for rules on the allowability of use allowances or
depreciation on buildings, capital improvements, and equipment. Also,
see section J.43, Rental costs of buildings and equipment, for rules
on the allowability of rental costs for land, buildings, and
equipment.
(6) The unamortized portion of any equipment written off as a result
of a change in capitalization levels may be recovered by continuing
to claim the otherwise allowable use allowances or depreciation on
the equipment, or by amortizing the amount to be written off over a
period of years negotiated with the cognizant agency.
19. Fines and penalties.
Costs resulting from violations of, or failure of the institution to
comply with, Federal, State, and local or foreign laws and
regulations are unallowable, except when incurred as a result of
compliance with specific provisions of the sponsored agreement, or
instructions in writing from the authorized official of the
sponsoring agency authorizing in advance such payments.
20. Fund raising and investment costs.
a. Costs of organized fund raising, including financial campaigns,
endowment drives, solicitation of gifts and bequests, and similar
expenses incurred solely to raise capital or obtain contributions,
are unallowable.
b. Costs of investment counsel and staff and similar expenses
incurred solely to enhance income form investments are unallowable.
c. Costs related to the physical custody and control of monies and
securities are allowable.
21. Gain and losses on depreciable assets.
a. (1) Gains and losses on the sale, retirement, or other disposition
of depreciable property shall be included in the year in which they
occur as credits or charges to the asset cost grouping(s) in which
the property was included. The amount of the gain or loss to be
included as a credit or charge to the appropriate asset cost
grouping(s) shall be the difference between the amount realized on
the property and the undepreciated basis of the property.
(2) Gains and losses on the disposition of depreciable property shall
not be recognized as a separate credit or charge under the following
conditions:
(a) The gain or loss is processed through a depreciation account and
is reflected in the depreciation allowable under Section J.14.
(b) The property is given in exchange as part of the purchase price
of a similar item and the gain or loss is taken into account in
determining the depreciation cost basis of the new item.
(c) A loss results from the failure to maintain permissible
insurance, except as otherwise provided in Section J.25.
(d) Compensation for the use of the property was provided through use
allowances in lieu of depreciation.
b. Gains or losses of any nature arising from the sale or exchange of
property other than the property covered in subsection a shall be
excluded in computing sponsored agreement costs.
c. When assets acquired with Federal funds, in part or wholly, are
disposed of, the distribution of the proceeds shall be made in
accordance with Circular A-110, "Uniform Administrative Requirements
for Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations."
22. Goods or services for personal use.
Costs of goods or services for personal use of the institution's
employees are unallowable regardless of whether the cost is reported
as taxable income to the employees.
23. Housing and personal living expenses.
a. Costs of housing (e.g., depreciation, maintenance, utilities,
furnishings, rent, etc.), housing allowances and personal living
expenses for/of the institution's officers are unallowable regardless
of whether the cost is reported as taxable income to the employees.
b. The term "officers" includes current and past officers.
          24. Idle facilities and idle capacity.

     a. As used in this section the following terms have the meanings
set forth below:
     (1) "Facilities" means land and buildings or any portion
thereof, equipment individually or collectively, or any other
tangible capital asset, wherever located, and whether owned or leased
by the institution.
     (2) "Idle facilities" means completely unused facilities that
are excess to the institution's current needs.
     (3) "Idle capacity" means the unused capacity of partially used
facilities. It is the difference between:
     (a) that which a facility could achieve under 100 percent
operating time on a one-shift basis less operating interruptions
resulting from time lost for repairs, setups, unsatisfactory
materials, and other normal delays; and
     (b) the extent to which the facility was actually used to meet
demands during the accounting period. A multi-shift basis should be
used if it can be shown that this amount of usage would normally be
expected for the type of facility involved.
     (4) "Cost of idle facilities or idle capacity" means costs such
as maintenance, repair, housing, rent, and other related costs, e.g.,
insurance, interest, property taxes and depreciation or use
allowances.
     b. The costs of idle facilities are unallowable except to the
extent that:
     (1) They are necessary to meet fluctuations in workload; or
     (2) Although not necessary to meet fluctuations in workload,
they were necessary when acquired and are now idle because of changes
in program requirements, efforts to achieve more economical
operations, reorganization, termination, or other causes which could
not have been reasonably foreseen. Under the exception stated in this
subsection, costs of idle facilities are allowable for a reasonable
period of time, ordinarily not to exceed one year, depending on the
initiative taken to use, lease, or dispose of such facilities.
     c. The costs of idle capacity are normal costs of doing business
and are a factor in the normal fluctuations of usage or indirect cost
rates from period to period. Such costs are allowable, provided that
the capacity is reasonably anticipated to be necessary or was
originally reasonable and is not subject to reduction or elimination
by use on other sponsored agreements, subletting, renting, or sale,
in accordance with sound business, economic, or security practices.
Widespread idle capacity throughout an entire facility or among a
group of assets having substantially the same function may be
considered idle facilities.
25. Insurance and indemnification.
a. Costs of insurance required or approved, and maintained, pursuant
to the sponsored agreement, are allowable.
b. Costs of other insurance maintained by the institution in
connection with the general conduct of its activities, are allowable
subject to the following limitations:
(1) types and extent and cost of coverage must be in accordance with
sound institutional practice;
(2) costs of insurance or of any contributions to any reserve
covering the risk of loss of or damage to federally-owned property
are unallowable, except to the extent that the Federal Government has
specifically required or approved such costs; and
(3) costs of insurance on the lives of officers or trustees are
unallowable except where such insurance is part of an employee plan
which is not unduly restricted.
c. Contributions to a reserve for a self-insurance program are
allowable, to the extent that the types of coverage, extent of
coverage, and the rates and premiums would have been allowed had
insurance been purchased to cover the risks.
d. Actual losses which could have been covered by permissible
insurance (whether through purchased insurance or self-insurance) are
unallowable, unless expressly provided for in the sponsored
agreement, except that costs incurred because of losses not covered
under existing deductible clauses for insurance coverage provided in
keeping with sound management practice as well as minor losses not
covered by insurance, such as spoilage, breakage and disappearance of
small hand tools, which occur in the ordinary course of operations,
are allowable.
e. Indemnification includes securing the institution against
liabilities to third persons and other losses not compensated by
insurance or otherwise. The Federal Government is obligated to
indemnify the institution only to the extent expressly provided for
in the sponsored agreement, except as provided in subsection d.
f. Insurance against defects. Costs of insurance with respect to any
costs incurred to correct defects in the institution's materials or
workmanship are unallowable.
g. Medical liability (malpractice) insurance is an allowable cost of
research programs only to the extent that the research involves human
subjects. Medical liability insurance costs shall be treated as a
direct cost and shall be assigned to individual projects based on the
manner in which the insurer allocates the risk to the population
covered by the insurance.
26. Interest.
a. Costs incurred for interest on borrowed capital, temporary use of
endowment funds, or the use of the institution’s own funds, however
represented, are unallowable. However, interest on debt incurred
after July 1, 1982 to acquire buildings, major reconstruction and
remodeling, or the acquisition or fabrication of capital equipment
costing $10,000 or more, is allowable.
b. Interest on debt incurred after May 8, 1996 to acquire or replace
capital assets (including construction, renovations, alterations,
equipment, land, and capital assets acquired through capital leases)
acquired after that date and used in support of sponsored agreements
is allowable, subject to the following conditions:
(1) For facilities costing over $500,000, the institution shall
prepare, prior to acquisition or replacement of the facility, a
lease-purchase analysis in accordance with the provisions of
Sec___.30 through____.37 of OMB Circular A-110, which shows that a
financed purchase, including a capital lease is less costly to the
institution than other operating lease alternatives, on a net present
value basis. Discount rates used shall be equal to the institution's
anticipated interest rates and shall be no higher than the fair
market rate available to the institution from an unrelated ("arm's
length") third-party. The lease-purchase analysis shall include a
comparison of the net present value of the projected total cost
comparisons of both alternatives over the period the asset is
expected to be used by the institution. The cost comparisons
associated with purchasing the facility shall include the estimated
purchase price, anticipated operating and maintenance costs
(including property taxes, if applicable) not included in the debt
financing, less any estimated asset salvage value at the end of the
defined period. The cost comparison for a capital lease shall include
the estimated total lease payments, any estimated bargain purchase
option, operating and maintenance costs, and taxes not included in
the capital leasing arrangement, less any estimated credits due under
the lease at the end of the defined period. Projected operating lease
costs shall be based on the anticipated cost of leasing comparable
facilities at fair market rates under rental agreements that would be
renewed or reestablished over the period defined above, and any
expected maintenance costs and allowable property taxes to be borne
by the institution directly or as part of the lease arrangement.
(2) The actual interest cost claimed is predicated upon interest
rates that are no higher than the fair market rate available to the
institution from an unrelated (arm's length) third party.
(3) Investment earnings, including interest income on bond or loan
principal, pending payment of the construction or acquisition costs,
are used to offset allowable interest cost. Arbitrage earnings
reportable to the Internal Revenue Service are not required to be
offset against allowable interest costs.
(4) Reimbursements are limited to the least costly alternative based
on the total cost analysis required under subsection (1). For
example, if an operating lease is determined to be less costly than
purchasing through debt financing, then reimbursement is limited to
the amount determined if leasing had been used. In all cases where a
lease-purchase analysis is required to be performed, Federal
reimbursement shall be based upon the least expensive alternative.
(5) For debt arrangements over $1 million, unless the institution
makes an initial equity contribution to the asset purchase of 25
percent or more, the institution shall reduce claims for interest
expense by an amount equal to imputed interest earnings on excess
cash flow, which is to be calculated as follows. Annually, non-
Federal entities shall prepare a cumulative (from the inception of
the project) report of monthly cash flows that includes inflows and
outflows, regardless of the funding source. Inflows consist of
depreciation expense, amortization of capitalized construction
interest, and annual interest cost. For cash flow calculations, the
annual inflow figures shall be divided by the number of months in the
year (i.e., usually 12) that the building is in service for monthly
amounts. Outflows consist of initial equity contributions, debt
principal payments (less the pro rata share attributable to the
unallowable costs of land) and interest payments. Where cumulative
inflows exceed cumulative outflows, interest shall be calculated on
the excess inflows for that period and be treated as a reduction to
allowable interest cost. The rate of interest to be used to compute
earnings on excess cash flows shall be the three-month Treasury bill
closing rate as of the last business day of that month.
(6) Substantial relocation of federally-sponsored activities from a
facility financed by indebtedness, the cost of which was funded in
whole or part through Federal reimbursements, to another facility
prior to the expiration of a period of 20 years requires notice to
the cognizant agency. The extent of the relocation, the amount of the
Federal participation in the financing, and the depreciation and
interest charged to date may require negotiation and/or downward
adjustments of replacement space charged to Federal programs in the
future.
(7) The allowable costs to acquire facilities and equipment are
limited to a fair market value available to the institution from an
unrelated (arm's length) third party.
c. Institutions are also subject to the following conditions:
(1) Interest on debt incurred to finance or refinance assets re-
acquired after the applicable effective dates stipulated above is
unallowable.
(2) Interest attributable to fully depreciated assets is unallowable.
d. The following definitions are to be used for purposes of this
section:
(1) “Re-acquired” assets means assets held by the institution prior
to the applicable effective dates stipulated above that have again
come to be held by the institution, whether through repurchase or
refinancing. It does not include assets acquired to replace older
assets.
(2) "Initial equity contribution" means the amount or value of
contributions made by non-Federal entities for the acquisition of the
asset prior to occupancy of facilities.
(3) "Asset costs" means the capitalizable costs of an asset,
including construction costs, acquisition costs, and other such costs
capitalized in accordance with Generally Accepted Accounting
Principles (GAAP).
27. Labor relations costs.
Costs incurred in maintaining satisfactory relations between the
institution and its employees, including costs of labor management
committees, employees' publications, and other related activities,
are allowable.
28. Lobbying.
Reference is made to the common rule published at 55 FR 6736
(2/26/90), and OMB's governmentwide guidance, amendments to OMB's
governmentwide guidance, and OMB's clarification notices published at
54 FR 52306 (12/20/89), 61 FR 1412 (1/19/96), 55 FR 24540 (6/15/90)
and 57 FR 1772 (1/15/92), respectively. In addition, the following
restrictions shall apply:
a. Notwithstanding other provisions of this Circular, costs
associated with the following activities are unallowable:
(1) Attempts to influence the outcomes of any Federal, State, or
local election, referendum, initiative, or similar procedure, through
in kind or cash contributions, endorsements, publicity, or similar
activity;
(2) Establishing, administering, contributing to, or paying the
expenses of a political party, campaign, political action committee,
or other organization established for the purpose of influencing the
outcomes of elections;
(3) Any attempt to influence –
(i) the introduction of Federal or State legislation;
(ii) the enactment or modification of any pending Federal or State
legislation through communication with any member or employee of the
Congress or State legislature, including efforts to influence State
or local officials to engage in similar lobbying activity; or
(iii) any government official or employee in connection with a
decision to sign or veto enrolled legislation;
(4) Any attempt to influence –
(i) the introduction of Federal or State legislation; or
(ii) the enactment or modification of any pending Federal or State
legislation by preparing, distributing, or using publicity or
propaganda, or by urging members of the general public, or any
segment thereof, to contribute to or participate in any mass
demonstration, march, rally, fund raising drive, lobbying campaign or
letter writing or telephone campaign; or
(5) Legislative liaison activities, including attendance at
legislative sessions or committee hearings, gathering information
regarding legislation, and analyzing the effect of legislation, when
such activities are carried on in support of or in knowing
preparation for an effort to engage in unallowable lobbying.
b. The following activities are excepted from the coverage of
subsection a:
(1) Technical and factual presentations on topics directly related to
the performance of a grant, contract, or other agreement (through
hearing testimony, statements, or letters to the Congress or a State
legislature, or subdivision, member, or cognizant staff member
thereof), in response to a documented request (including a
Congressional Record notice requesting testimony or statements for
the record at a regularly scheduled hearing) made by the recipient
member, legislative body or subdivision, or a cognizant staff member
thereof, provided such information is readily obtainable and can be
readily put in deliverable form, and further provided that costs
under this section for travel, lodging or meals are unallowable
unless incurred to offer testimony at a regularly scheduled
Congressional hearing pursuant to a written request for such
presentation made by the Chairman or Ranking Minority Member of the
Committee or Subcommittee conducting such hearings;
(2) Any lobbying made unallowable by subsection a.(3) to influence
State legislation in order to directly reduce the cost, or to avoid
material impairment of the institution's authority to perform the
grant, contract, or other agreement; or
(3) Any activity specifically authorized by statute to be undertaken
with funds from the grant, contract, or other agreement.
c. When an institution seeks reimbursement for F&A costs, total
lobbying costs shall be separately identified in the F&A cost rate
proposal, and thereafter treated as other unallowable activity costs
in accordance with the procedures of Section B.1.d.
d. Institutions shall submit as part of their annual F&A cost rate
proposal a certification that the requirements and standards of this
section have been complied with.
e. Institutions shall maintain adequate records to demonstrate that
the determination of costs as being allowable or unallowable pursuant
to this section complies with the requirements of this Circular.
f. Time logs, calendars, or similar records shall not be required to
be created for purposes of complying with this section during any
particular calendar month when:
(1) the employee engages in lobbying (as defined in subsections a and
b) 25 percent or less of the employee's compensated hours of
employment during that calendar month; and
(2) within the preceding five-year period, the institution has not
materially misstated allowable or unallowable costs of any nature,
including legislative lobbying costs. When conditions (1) and (2) are
met, institutions are not required to establish records to support
the allowability of claimed costs in addition to records already
required or maintained. Also, when conditions (1) and (2) are met,
the absence of time logs, calendars, or similar records will not
serve as a basis for disallowing costs by contesting estimates of
lobbying time spent by employees during a calendar month.
g. Agencies shall establish procedures for resolving in advance, in
consultation with OMB, any significant questions or disagreements
concerning the interpretation or application of this section. Any
such advance resolutions shall be binding in any subsequent
settlements, audits, or investigations with respect to that grant or
contract for purposes of interpretation of this Circular, provided,
however, that this shall not be construed to prevent a contractor or
grantee from contesting the lawfulness of such a determination.
h. Executive lobbying costs.
Costs incurred in attempting to improperly influence either directly
or indirectly, an employee or officer of the Executive Branch of the
Federal Government to give consideration or to act regarding a
sponsored agreement or a regulatory matter are unallowable. Improper
influence means any influence that induces or tends to induce a
Federal employee or officer to give consideration or to act regarding
a federally-sponsored agreement or regulatory matter on any basis
other than the merits of the matter.
29. Losses on other sponsored agreements or contracts.
Any excess of costs over income under any other sponsored agreement
or contract of any nature is unallowable. This includes, but is not
limited to, the institution's contributed portion by reason of cost-
sharing agreements or any under-recoveries through negotiation of
flat amounts for F&A costs.
30. Maintenance and repair costs.
Costs incurred for necessary maintenance, repair, or upkeep of
buildings and equipment (including Federal property unless otherwise
provided for) which neither add to the permanent value of the
property nor appreciably prolong its intended life, but keep it in an
efficient operating condition, are allowable. Costs incurred for
improvements which add to the permanent value of the buildings and
equipment or appreciably prolong their intended life shall be treated
as capital expenditures (see section 18.a(1)).
31. Material and supplies costs.
a. Costs incurred for materials, supplies, and fabricated parts
necessary to carry out a sponsored agreement are allowable.
b. Purchased materials and supplies shall be charged at their actual
prices, net of applicable credits. Withdrawals from general stores or
stockrooms should be charged at their actual net cost under any
recognized method of pricing inventory withdrawals, consistently
applied. Incoming transportation charges are a proper part of
materials and supplies costs.
c. Only materials and supplies actually used for the performance of a
sponsored agreement may be charged as direct costs.
d. Where federally-donated or furnished materials are used in
performing the sponsored agreement, such materials will be used
without charge.
32. Meetings and Conferences.
Costs of meetings and conferences, the primary purpose of which is
the dissemination of technical information, are allowable. This
includes costs of meals, transportation, rental of facilities,
speakers' fees, and other items incidental to such meetings or
conferences. But see section J.17, Entertainment costs.
33. Memberships, subscriptions and professional activity costs.
a. Costs of the institution’s membership in business, technical, and
professional organizations are allowable.
b. Costs of the institution’s subscriptions to business,
professional, and technical periodicals are allowable.
c. Costs of membership in any civic or community organization are
unallowable.
d. Costs of membership in any country club or social or dining club
or organization are unallowable.
34. Patent costs.
a. The following costs relating to patent and copyright matters are
allowable:
(1) cost of preparing disclosures, reports, and other documents
required by the sponsored agreement and of searching the art to the
extent necessary to make such disclosures;
(2) cost of preparing documents and any other patent costs in
connection with the filing and prosecution of a United States patent
application where title or royalty-free license is required by the
Federal Government to be conveyed to the Federal Government; and
(3) general counseling services relating to patent and copyright
matters, such as advice on patent and copyright laws, regulations,
clauses, and employee agreements (but see sections J.37, Professional
service costs, and J.44, Royalties and other costs for use of
patents) .
b. The following costs related to patent and copyright matter are
unallowable:
(i) Cost of preparing disclosures, reports, and other documents and
of searching the art to the extent necessary to make disclosures not
required by the award
(ii) Costs in connection with filing and prosecuting any foreign
patent application, or any United States patent application, where
the sponsored agreement award does not require conveying title or a
royalty-free license to the Federal Government, (but see section
J.44, Royalties and other costs for use of patents ).
35. Plant and homeland security costs.
Necessary and reasonable expenses incurred for routine and homeland
security to protect facilities, personnel, and work products are
allowable. Such costs include, but are not limited to, wages and
uniforms of personnel engaged in security activities; equipment;
barriers; contractual security services; consultants; etc. Capital
expenditures for homeland and plant security purposes are subject to
section J.18, Equipment and other capital expenditures, of this
Circular.
36. Preagreement costs. Costs incurred prior to the effective date of
the sponsored agreement, whether or not they would have been
allowable thereunder if incurred after such date, are unallowable
unless approved by the sponsoring agency.
37. Professional service costs.
a. Costs of professional and consultant services rendered by persons
who are members of a particular profession or possess a special
skill, and who are not officers or employees of the institution, are
allowable, subject to subparagraphs b and c when reasonable in
relation to the services rendered and when not contingent upon
recovery of the costs from the Federal Government. In addition, legal
and related services are limited under section J.13.
 b. In determining the allowability of costs in a particular case, no
 single factor or any special combination of factors is necessarily
 determinative. However, the following factors are relevant:
 (1) The nature and scope of the service rendered in relation to the
 service required.
 (2) The necessity of contracting for the service, considering the
 institution's capability in the particular area.
 (3) The past pattern of such costs, particularly in the years prior
 to sponsored agreements.
(4) The impact on the institution's business (i.e., what new problems
have arisen).
(5) Whether the proportion of Federal work to the institution's total
business is such as to influence the
institution in favor of incurring the cost, particularly where the
services rendered are not of a continuing nature and have little
relationship to work under Federal grants and contracts.
(6) Whether the service can be performed more economically by direct
employment rather than contracting.
(7) The qualifications of the individual or concern rendering the
service and the customary fees charged, especially on non-sponsored
agreements.
(8) Adequacy of the contractual agreement for the service (e.g.,
description of the service, estimate of time required, rate of
compensation, and termination provisions).
c. In addition to the factors in subparagraph b, retainer fees to be
allowable must be supported by evidence of bona fide services
available or rendered.
38. Proposal costs.
Proposal costs are the costs of preparing bids or proposals on
potential federally and non-federally-funded sponsored agreements or
projects, including the development of data necessary to support the
institution's bids or proposals. Proposal costs of the current
accounting period of both successful and unsuccessful bids and
proposals normally should be treated as F&A costs and allocated
currently to all activities of the institution, and no proposal costs
of past accounting periods will be allocable to the current period.
However, the institution's established practices may be to treat
proposal costs by some other recognized method. Regardless of the
method used, the results obtained may be accepted only if found to be
reasonable and equitable.
39. Publication and printing costs.
a. Publication costs include the costs of printing (including the
processes of composition, plate-making, press work, binding, and the
end products produced by such processes), distribution, promotion,
mailing, and general handling. Publication costs also include page
charges in professional publications.
b. If these costs are not identifiable with a particular cost
objective, they should be allocated as indirect costs to all
benefiting activities of the institution.
c. Page charges for professional journal publications are allowable
as a necessary part of research costs where:
(1) The research papers report work supported by the Federal
Government: and
(2) The charges are levied impartially on all research papers
published by the journal, whether or not by federally-sponsored
authors.
40. Rearrangement and alteration costs.
Costs incurred for ordinary or normal rearrangement and alteration of
facilities are allowable. Special arrangement and alteration costs
incurred specifically for the project are allowable with the prior
approval of the sponsoring agency.
41. Reconversion costs.
Costs incurred in the restoration or rehabilitation of the
institution's facilities to approximately the same condition existing
immediately prior to commencement of a sponsored agreement, fair wear
and tear excepted, are allowable.
42. Recruiting costs.
a. Subject to subsections b, c, and d, and provided that the size of
the staff recruited and maintained is in keeping with workload
requirements, costs of "help wanted" advertising, operating costs of
an employment office necessary to secure and maintain an adequate
staff, costs of operating an aptitude and educational testing
program, travel costs of employees while engaged in recruiting
personnel, travel costs of applicants for interviews for prospective
employment, and relocation costs incurred incident to recruitment of
new employees, are allowable to the extent that such costs are
incurred pursuant to a well-managed recruitment program. Where the
institution uses employment agencies, costs not in excess of standard
commercial rates for such services are allowable.
b. In publications, costs of help wanted advertising that includes
color, includes advertising material for other than recruitment
purposes, or is excessive in size (taking into consideration
recruitment purposes for which intended and normal institutional
practices in this respect), are unallowable.
c. Costs of help wanted advertising, special emoluments, fringe
benefits, and salary allowances incurred to attract professional
personnel from other institutions that do not meet the test of
reasonableness or do not conform with the established practices of
the institution, are unallowable.
d. Where relocation costs incurred incident to recruitment of a new
employee have been allowed either as an allocable direct or F&A cost,
and the newly hired employee resigns for reasons within his control
within 12 months after hire, the institution will be required to
refund or credit such relocation costs to the Federal Government.
43. Rental costs of buildings and equipment.
a. Subject to the limitations described in subsections b. through d.
of this section, rental costs are allowable to the extent that the
rates are reasonable in light of such factors as: rental costs of
comparable property, if any; market conditions in the area;
alternatives available; and, the type, life expectancy, condition,
and value of the property leased. Rental arrangements should be
reviewed periodically to determine if circumstances have changed and
other options are available.
b. Rental costs under “sale and lease back” arrangements are
allowable only up to the amount that would be allowed had the
institution continued to own the property. This amount would include
expenses such as depreciation or use allowance, maintenance, taxes,
and insurance.
c. Rental costs under "less-than-arms-length" leases are allowable
only up to the amount (as explained in subsection b) that would be
allowed had title to the property vested in the institution. For this
purpose, a less-than-arms-length lease is one under which one party
to the lease agreement is able to control or substantially influence
the actions of the other. Such leases include, but are not limited to
those between -–
(1) divisions of a institution;
(2) non-Federal entities under common control through common
officers, directors, or members; and
(3) a institution and a director, trustee, officer, or key employee
of the institution or his immediate family, either directly or
through corporations, trusts, or similar arrangements in which they
hold a controlling interest. For example, a institution may establish
a separate corporation for the sole purpose of owning property and
leasing it back to the institution.
d. Rental costs under leases which are required to be treated as
capital leases under GAAP are allowable only up to the amount (as
explained in subsection b) that would be allowed had the institution
purchased the property on the date the lease agreement was executed.
The provisions of Financial Accounting Standards Board Statement 13,
Accounting for Leases, shall be used to determine whether a lease is
a capital lease. Interest costs related to capital leases are
allowable to the extent they meet the criteria in section J.26.
Unallowable costs include amounts paid for profit, management fees,
and taxes that would not have been incurred had the institution
purchased the facility.
44. Royalties and other costs for use of patents.
a. Royalties on a patent or copyright or amortization of the cost of
acquiring by purchase a copyright, patent, or rights thereto,
necessary for the proper performance of the award are allowable
unless:
(1) The Federal Government has a license or the right to free use of
the patent or copyright.
(2) The patent or copyright has been adjudicated to be invalid, or
has been administratively determined to be invalid.
(3) The patent or copyright is considered to be unenforceable.
(4) The patent or copyright is expired.
b. Special care should be exercised in determining reasonableness
where the royalties may have been arrived at as a result of less-
than-arm's-length bargaining, e.g.:
(1) Royalties paid to persons, including corporations, affiliated
with the institution.
(2) Royalties paid to unaffiliated parties, including corporations,
under an agreement entered into in contemplation that a sponsored
agreement award would be made.
(3) Royalties paid under an agreement entered into after an award is
made to a institution.
c. In any case involving a patent or copyright formerly owned by the
institution, the amount of royalty allowed should not exceed the cost
which would have been allowed had the institution retained title
thereto.
45. Scholarships and student aid costs.
a. Costs of scholarships, fellowships, and other programs of student
aid are allowable only when the purpose of the sponsored agreement is
to provide training to selected participants and the charge is
approved by the sponsoring agency. However, tuition remission and
other forms of compensation paid as, or in lieu of, wages to students
performing necessary work are allowable provided that --
(1) The individual is conducting activities necessary to the
sponsored agreement;
(2) Tuition remission and other support are provided in accordance
with established educational institutional policy and consistently
provided in a like manner to students in return for similar
activities conducted in nonsponsored as well as sponsored activities;
and
(3) During the academic period, the student is enrolled in an
advanced degree program at the institution or affiliated institution
and the activities of the student in relation to the Federally-
sponsored research project are related to the degree program;
(4) the tuition or other payments are reasonable compensation for the
work performed and are conditioned explicitly upon the performance of
necessary work; and
(5) it is the institution's practice to similarly compensate students
in nonsponsored as well as sponsored activities.
b. Charges for tuition remission and other forms of compensation paid
to students as, or in lieu of, salaries and wages shall be subject to
the reporting requirements stipulated in Section J.10, and shall be
treated as direct or F&A cost in accordance with the actual work
being performed. Tuition remission may be charged on an average rate
basis.
46. Selling and marketing.
Costs of selling and marketing any products or services of the
institution are unallowable (unless allowed under subsection J.1 as
allowable public relations costs or under subsection J.38 as
allowable proposal costs).
47. Specialized service facilities.
a. The costs of services provided by highly complex or specialized
facilities operated by the institution,
such as computers, wind tunnels, and reactors are allowable, provided
the charges for the services meet the conditions of either subsection
47.b. or 47.c. and, in addition, take into account any items of
income or Federal financing that qualify as applicable credits under
subsection C.5. of this Circular.
b. The costs of such services, when material, must be charged
directly to applicable awards based on actual usage of the services
on the basis of a schedule of rates or established methodology that
(1) does not discriminate against federally-supported activities of
the institution, including usage by the institution for internal
purposes, and
(2) is designed to recover only the aggregate costs of the services.
The costs of each service shall consist normally of both its direct
costs and its allocable share of all F&A costs. Rates shall be
adjusted at least biennially, and shall take into consideration
over/under applied costs of the previous period(s).
c. Where the costs incurred for a service are not material, they may
be allocated as F&A costs.
d. Under some extraordinary circumstances, where it is in the best
interest of the Federal Government and the institution to establish
alternative costing arrangements, such arrangements may be worked out
with the cognizant Federal agency.
48. Student activity costs.
Costs incurred for intramural activities, student publications,
student clubs, and other student activities, are unallowable, unless
specifically provided for in the sponsored agreements.
49. Taxes.
a. In general, taxes which the institution is required to pay and
which are paid or accrued in accordance with generally accepted
accounting principles are allowable. Payments made to local
governments in lieu of taxes which are commensurate with the local
government services received are allowable, except for--
(1) taxes from which exemptions are available to the institution
directly or which are available to the institution based on an
exemption afforded the Federal Government, and in the latter case
when the sponsoring agency makes available the necessary exemption
certificates; and
(2) special assessments on land which represent capital improvements.
b. Any refund of taxes, interest, or penalties, and any payment to
the institution of interest thereon, attributable to taxes, interest,
or penalties which were allowed as sponsored agreement costs, will be
credited or paid to the Federal Government in the manner directed by
the Federal Government. However, any interest actually paid or
credited to an institution incident to a refund of tax, interest, and
penalty will be paid or credited to the Federal Government only to
the extent that such interest accrued over the period during which
the institution has been reimbursed by the Federal Government for the
taxes, interest, and penalties.
50. Termination costs applicable to sponsored agreements.
Termination of awards generally gives rise to the incurrence of
costs, or the need for special treatment of costs, which would not
have arisen had the sponsored agreement not been terminated. Cost
principles covering these items are set forth below. They are to be
used in conjunction with the other provisions of this Circular in
termination situations.
a. The cost of items reasonably usable on the institution's other
work shall not be allowable unless the institution submits evidence
that it would not retain such items at cost without sustaining a
loss. In deciding whether such items are reasonably usable on other
work of the institution, the awarding agency should consider the
institution's plans and orders for current and scheduled activity.
Contemporaneous purchases of common items by the institution shall be
regarded as evidence that such items are reasonably usable on the
institution's other work. Any acceptance of common items as allocable
to the terminated portion of the
sponsored agreement shall be limited to the extent that the
quantities of such items on hand, in transit, and on order are in
excess of the reasonable quantitative requirements of other work.
b. If in a particular case, despite all reasonable efforts by the
institution, certain costs cannot be discontinued immediately after
the effective date of termination, such costs are generally allowable
within the limitations set forth in this Circular, except that any
such costs continuing after termination due to the negligent or
willful failure of the institution to discontinue such costs shall be
unallowable.
c. Loss of useful value of special tooling, machinery, and equipment
is generally allowable if:
(1) Such special tooling, special machinery, or equipment is not
reasonably capable of use in the other work of the institution,
(2) The interest of the Federal Government is protected by transfer
of title or by other means deemed appropriate by the awarding agency,
and
(3) The loss of useful value for any one terminated sponsored
agreement is limited to that portion of the acquisition cost which
bears the same ratio to the total acquisition cost as the terminated
portion of the sponsored agreement bears to the entire terminated
sponsored agreement award and other sponsored agreements for which
the special tooling, machinery, or equipment was acquired.
d. Rental costs under unexpired leases are generally allowable where
clearly shown to have been reasonably necessary for the performance
of the terminated sponsored agreement less the residual value of such
leases, if:
(1) the amount of such rental claimed does not exceed the reasonable
use value of the property leased for the period of the sponsored
agreement and such further period as may be reasonable, and
(2) the institution makes all reasonable efforts to terminate,
assign, settle, or otherwise reduce the cost of such lease. There
also may be included the cost of alterations of such leased property,
provided such alterations were necessary for the performance of the
sponsored agreement, and of reasonable restoration required by the
provisions of the lease.
e. Settlement expenses including the following are generally
allowable:
(1) Accounting, legal, clerical, and similar costs reasonably
necessary for:
(a) The preparation and presentation to the awarding agency of
settlement claims and supporting data with respect to the terminated
portion of the sponsored agreement, unless the termination is for
default (see Subpart. __.61 of Circular A-110); and
(b) The termination and settlement of subawards.
(2) Reasonable costs for the storage, transportation, protection, and
disposition of property provided by the Federal Government or
acquired or produced for the sponsord agreement, except when
institutions are reimbursed for disposals at a predetermined amount
in accordance with Subparts ___.32 through ___.37 of Circular A-110.
(3) F&A costs related to salaries and wages incurred as settlement
expenses in subsections b.(1) and (2). Normally, such F&A costs shall
be limited to fringe benefits, occupancy cost, and immediate
supervision.
f. Claims under subawards, including the allocable portion of claims
which are common to the sponsored agreement and to other work of the
institution, are generally allowable.
An appropriate share of the institution's F&A costs may be allocated
to the amount of settlements with subcontractors and/or subgrantees,
provided that the amount allocated is otherwise consistent with the
basic guidelines contained in section E, F&A costs. The F&A costs so
allocated shall exclude the same and similar costs claimed directly
or indirectly as settlement expenses.
51. Training costs.
The cost of training provided for employee development is allowable.
52. Transportation costs.
Costs incurred for freight, express, cartage, postage, and other
transportation services relating either to goods purchased, in
process, or delivered, are allowable. When such costs can readily be
identified with the items involved, they may be charged directly as
transportation costs or added to the cost of such items. Where
identification with the materials received cannot readily be made,
inbound transportation cost may be charged to the appropriate F&A
cost accounts if the institution follows a consistent, equitable
procedure in this respect. Outbound freight, if reimbursable under
the terms of the sponsored agreement, should be treated as a direct
cost.
53. Travel costs.
a. General.
Travel costs are the expenses for transportation, lodging,
subsistence, and related items incurred by employees who are in
travel status on official business of the institution. Such costs may
be charged on an actual cost basis, on a per diem or mileage basis in
lieu of actual costs incurred, or on a combination of the two,
provided the method used is applied to an entire trip and not to
selected days of the trip, and results in charges consistent with
those normally allowed in like circumstances in the institution’s
non-federally-sponsored activities.
b. Lodging and subsistence.
Costs incurred by employees and officers for travel, including costs
of lodging, other subsistence, and incidental expenses, shall be
considered reasonable and allowable only to the extent such costs do
not exceed charges normally allowed by the institution in its regular
operations as the result of the institution’s written travel policy.
In the absence of an acceptable, written institution policy regarding
travel costs, the rates and amounts established under subchapter I of
Chapter 57, Title 5, United States Code (“Travel and Subsistence
Expenses; Mileage Allowances”), or by the Administrator of General
Services, or by the President (or his or her designee) pursuant to
any provisions of such subchapter shall apply to travel under
sponsored agreements (48 CFR 31.205-46(a)).
c. Commercial air travel.
(1) Airfare costs in excess of the customary standard commercial
airfare (coach or equivalent), Federal Government contract airfare
(where authorized and available), or the lowest commercial discount
airfare are unallowable except when such accommodations would:
(a) require circuitous routing;
(b) require travel during unreasonable hours; (c) excessively prolong
travel;
(d) result in additional costs that would offset the transportation
savings; or
(e) offer accommodations not reasonably adequate for the traveler’s
medical needs. The institution must justify and document these
conditions on a case-by-case basis in order for the use of first-
class airfare to be allowable in such cases.
(2) Unless a pattern of avoidance is detected, the Federal Government
will generally not question a institution's determinations that
customary standard airfare or other discount airfare is unavailable
for specific trips if the institution can demonstrate either of the
following:
(a) that such airfare was not available in the specific case; or
(b) that it is the institution’s overall practice to make routine use
of such airfare.
d. Air travel by other than commercial carrier.
Costs of travel by institution-owned, -leased, or -chartered aircraft
include the cost of lease, charter, operation (including personnel
costs), maintenance, depreciation, insurance, and other related
costs. The portion of such costs that exceeds the cost of allowable
commercial air travel, as provided for in subsection 53.c., is
unallowable.
54. Trustees.
Travel and subsistence costs of trustees (or directors) are
allowable. The costs are subject to restrictions regarding lodging,
subsistence and air travel costs provided in Section 53.
ATTACHMENT N
Equipment Guidelines
                                   Attachment N – Equipment Guidelines
                                                   Perkins IV
                 CAREER AND TECHNICAL EDUCATION EQUIPMENT GUIDELINES
                          Summary of applicable federal regulations

1.   Equipment is defined as follows:

       a.     Tangible personal property (equipment), as opposed to real property (land, buildings).
       b.     Items whose useful life must be equal to or longer than one year.
2.   Equipment with a purchase price limitation of $1,000 or more must be accounted for and controlled in accordance with
     the provisions of OMB Circular A-87 and A-21
3.   Minor equipment lists should be kept for equipment costing less than $1000 with a useful life equal to or longer than
     one year
4.   Equipment must be logically related to, and necessary to, the occupation being taught. The equipment is to be used only
     for Career and Technical Education programs or loaned/shared with other school-based programs so as not to interfere
     with the Career and Technical Education program for which the equipment was originally purchased.
5.   Eligible recipient will have available upon request requisitions, purchase orders and invoices for all Career and
     Technical Education equipment purchases.
6.   Eligible recipients will have available upon request a physical inventory of Career and Technical Education equipment.
     Districts and recipients should update their general fixed assets listing at least annually.
7.   Property records of Career and Technical Education equipment with a unit cost of $1,000 or more shall include:

           a.     Location (school, department, building, etc.)
            b.    Identification number (tag number, serial number, or other number that specifically identifies the item)
            c.    Description (model number, size, color, etc.)
            d.    Method of acquisition (purchase, donation, construction, trade, or lease-purchase)
           e.     Source of funding
           f.     Acquisition date (month and year of acquisition)
            g.    Purchase document number (P.O. number, voucher number, or other document number that can be used to
                  trace to the supporting documentation)
            h.    Actual or estimated historical cost
            i.    Condition of asset (for assets with unit costs of $5,000 or more purchased with federal monies)
     j.     Percentage of federal participation (for assets with unit costs of $5,000 or more purchased with federal monies)

8.        A control system must be developed to ensure adequate safeguards to prevent loss, damage or theft of the property.

Any loss, damage or theft shall be investigated.

9.     Adequate maintenance procedures must be developed to keep property in good condition.
10.    Eligible recipient will show that proper procedures were followed when disposing of Career and Technical Education
equipment. A summary of required procedures is as follows:
     a. Disposition - when original or replacement equipment acquired under a grant or sub grant is no longer needed for
          the original project or program or for other activities currently or previously supported by a federal agency,
          disposition of the equipment will be made as follows:
          1. Items of equipment with a current per unit fair market value of less than $5,000 may be retained, sold or
               otherwise disposed of with no further obligation to the awarding agency.
          2. Items of equipment with a current per unit fair market value in excess of $5,000 may be retained or sold and
               the awarding agency shall have a right to an amount calculated by multiplying the current market value or
               proceeds from sale by the awarding agency‘s share of the equipment.
          3. In cases where a grantee or sub grantee fails to take appropriate disposition action, the awarding agency may
               direct the grantee or sub grantee to take excess and disposition action.

11. All procurement transactions must be in compliance with State law and local regulations.
12. All equipment must be marked with a permanent marker indicating grant source, year of purchase, school name and
    program area.
EQUIPMENT USAGE:

Please note that the federal regulations require:

     a.   that a district will not expend funds under this grant to acquire equipment (including computer software) that
          results in direct financial benefit to any purchasing entity or its employees or any affiliate of such an organization;
          and
     b.   that the district will use equipment for other instructional purposes only if (1) the acquisition of the equipment was
          reasonable and necessary for the purpose of conducting a properly designed project or activity; (2) the equipment is
          used after regular school hours or on weekends; and (3) such other use is:

          1.   Incidental to the use of the equipment;
          2.   Does not interfere with the use of that equipment for the purpose under which it was purchased; and
          3.   Does not add to the cost of using that equipment for the purpose under which it was purchased.

                                                    Regulation References- Law

Perkins Section 122-State Plan

‗‗(12) provides assurances that none of the funds expended under this Act will be used to acquire equipment (including
computer software) in any instance in which such acquisition results in a direct financial benefit to any organization
representing the interests of the acquiring entity or the employees of the acquiring entity, or any affiliate of such an
organization;


Perkins „„SEC. 315. LIMITATION FOR CERTAIN STUDENTS.

‗‗No funds received under this Act may be used to provide Career and Technical Education programs to students prior to the
seventh grade, except that equipment and facilities purchased with funds under this Act may be used by such students.


OMB Circular-21 attachment N

18. Equipment and other capital expenditures.
a. For purposes of this subsection, the following definitions apply:
         (1) "Capital Expenditures‖ means expenditures for the acquisition cost of capital assets (equipment, buildings, and
         land), or expenditures to make improvements to capital assets that materially increase their value or useful life.
         Acquisition cost means the cost of the asset including the cost to put it in place. Acquisition cost for equipment, for
         example, means the net invoice price of the equipment, including the cost of any modifications, attachments,
         accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary
         charges, such as taxes, duty, protective in transit insurance, freight, and installation may be included in, or excluded
         from the acquisition cost in accordance with the institution's regular accounting practices.
         (2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life of more than one
         year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the
         institution for financial statement purposes, or $5000.
         (3) "Special purpose equipment" means equipment which is used only for research, medical, scientific, or other
         technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical
         instruments, and spectrometers.
         (4) "General purpose equipment" means equipment, which is not limited to research, medical, scientific or other
         technical activities. Examples include office equipment and furnishings, modular offices, telephone networks,
         information technology equipment and systems, air conditioning equipment, reproduction and printing equipment,
         and motor vehicles.
b. The following rules of allowability shall apply to equipment and other capital expenditures:
         (1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges,
         except where approved in advance by the awarding agency.
         (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit
         cost of $5000 or more have the prior approval of the awarding agency.
         (3) Capital expenditures for improvements to land, buildings, or equipment which materially increase their value or
         useful life are unallowable as a direct cost except with the prior approval of the awarding agency.
         (4) When approved as a direct charge pursuant to subsections J.18.b(1) through (3)above, capital expenditures will
         be charged in the period in which the expenditure is incurred, or as otherwise determined appropriate by and
         negotiated with the awarding agency.
         (5) Equipment and other capital expenditures are unallowable as indirect costs. However, see section J.14,
         Depreciation and use allowances, for rules on the allowability of use allowances or depreciation on buildings, capital
         improvements, and equipment. Also, see section J.43, Rental costs of buildings and equipment, for rules on the
         allowability of rental costs for land, buildings, and equipment.
         (6) The unamortized portion of any equipment written off as a result of a change in capitalization levels may be
         recovered by continuing to claim the otherwise allowable use allowances or depreciation on the equipment, or by
         amortizing the amount to be written off over a period of years negotiated with the cognizant agency.

OMB 87 Attachment M

15. Equipment and other capital expenditures.

a. For purposes of this subsection 15, the following definitions apply:
         (1) "Capital Expenditures‖ means expenditures for the acquisition cost of capital assets (equipment, buildings, land),
         or expenditures to make improvements to capital assets that materially increase their value or useful life. Acquisition
         cost means the cost of the asset including the cost to put it in place. Acquisition cost for equipment, for example,
         means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or
         auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, such as
         taxes, duty, protective in transit insurance, freight, and installation may be included in, or excluded from the
         acquisition cost in accordance with the governmental unit's regular accounting practices.
         (2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life of more than one
         year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the
         governmental unit for financial statement purposes, or $5000.
         (3) "Special purpose equipment" means equipment which is used only for research, medical, scientific, or other
         technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical
         instruments, and spectrometers.
         (4) "General purpose equipment" means equipment, which is not limited to research, medical, scientific or other
         technical activities. Examples include office equipment and furnishings, modular offices, telephone networks,
         information technology equipment and systems, air conditioning equipment, reproduction and printing equipment,
         and motor vehicles.
b. The following rules of allowability shall apply to equipment and other capital expenditures:
         (1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges,
         except where approved in advance by the awarding agency.
         (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit
         cost of $5000 or more have the prior approval of the awarding agency.
         (3) Capital expenditures for improvements to land, buildings, or equipment which materially increase their value or
         useful life are unallowable as a direct cost except with the prior approval of the awarding agency.
         (4) When approved as a direct charge pursuant to Attachment B, section 15.b (1), (2), and (3) above, capital
         expenditures will be charged in the period in which the expenditure is incurred, or as otherwise determined
         appropriate and negotiated with the awarding agency. In addition, Federal awarding agencies are authorized at their
         option to waive or delegate the prior approval requirement.
         (5) Equipment and other capital expenditures are unallowable as indirect costs. However, see section 11,
         Depreciation and use allowance, for rules on the allowability of use allowances or depreciation on buildings, capital
         improvements, and equipment. Also, see section 37, Rental costs, concerning the allowability of rental costs for
         land, buildings, and equipment.
         (6) The unamortized portion of any equipment written off as a result of a change in capitalization levels may be
         recovered by continuing to claim the otherwise allowable use allowances or depreciation on the equipment, or by
         amortizing the amount to be written off over a period of years negotiated with the cognizant agency.
         (7) When replacing equipment purchased in whole or in part with Federal funds, the governmental unit may use the
         equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement
         property.

EDGAR
Sec. 74.34 Equipment.

   (a) Title to equipment acquired by a recipient with Federal funds shall vest in the recipient, subject to conditions of this
section.
   (b) The recipient may not use equipment acquired with Federal funds to provide services to non-Federal outside
organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by
Federal statute, for as long as the Federal Government retains an interest in the equipment.
   (c) The recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or
not the project or program continues to be supported by Federal funds and may not encumber the property without approval
of the Secretary. When no longer needed for the original project or program, the recipient shall use the equipment in
connection with its other federally-sponsored activities, in the following order of priority:
             (1) Activities sponsored by the Federal awarding agency which funded
             the original project; and then
             (2) Activities sponsored by other Federal awarding agencies.
   (d) During the time that equipment is used on the project or program for which it was acquired, the recipient shall make it
available for use on other projects or programs if other use will not interfere with the work on the project or program for
which the equipment was originally acquired. First preference for other use shall be given to other projects or programs
sponsored by the Federal awarding agency that financed the equipment; second preference shall be given to projects or
programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other
activities not
sponsored by the Federal Government shall be permissible if authorized by the Federal awarding agency. User charges shall
be treated as program income.
   (e) When acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the
equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Secretary.
   (f) The recipient's property management standards for equipment acquired with Federal funds and federally-owned
equipment shall include all of the following:
             (1) Equipment records shall be maintained accurately and shall         include the following information:
                         (i) A description of the equipment.
                         (ii) Manufacturer's serial number, model number, Federal stock
                         number, national stock number, or other identification number.
                         (iii) Source of the equipment, including the award number.
                         (iv) Whether title vests in the recipient or the Federal Government.
                         (v) Acquisition date (or date received, if the equipment was
                         furnished by the Federal Government) and cost.
                          (vi) Information from which one can calculate the percentage of
                         Federal participation in the cost of the equipment (not applicable to equipment furnished by the
                         Federal Government).
                         (vii) Location and condition of the equipment and the date the
                         information was reported.
                         (viii) Unit acquisition cost.
                         (ix) Ultimate disposition data, including date of disposal and sales
                         price or the method used to determine current fair market value where a recipient compensates ED for
                         its share.
             (2) Equipment owned by the Federal Government must be identified to
             indicate Federal ownership.
             (3) A physical inventory of equipment must be taken and the results reconciled with the equipment records at least
          once every two years. Any differences between quantities determined by the physical inspection and those shown in
          the accounting records must be investigated to determine the causes of the difference. The recipient shall, in
          connection with
          the inventory, verify the existence, current utilization, and continued need for the equipment.
             (4) A control system must be in effect to insure adequate safeguards to prevent loss, damage, or theft of the
          equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented; if the equipment
          was owned by the Federal Government, the recipient shall promptly notify the Secretary.
             (5) Adequate maintenance procedures must be implemented to keep the equipment in good condition.
             (6) Where the recipient is authorized or required to sell the equipment, proper sales procedures must be
          established which provide for competition to the extent practicable and result in the highest possible return.
   (g) When the recipient no longer needs the equipment, the equipment may be used for other activities in accordance with
the following standards:
            (1) For equipment with a current per unit fair market value of $5000 or more, the recipient may retain the
         equipment for other uses provided that compensation is made to ED or its successor. The amount of compensation
         shall be computed by applying the percentage of Federal participation in the cost of the original project or program
         to the current fair market value of the equipment.
            (2) If the recipient has no need for the equipment, the recipient shall request disposition instructions from the
         Secretary. The Secretary shall determine whether the equipment can be used to meet ED requirements. If no
         requirement exists within ED, the availability of the equipment shall be reported to the General Services
         Administration by the Secretary to determine whether a requirement for the equipment exists in other Federal
         agencies. The Secretary issues instructions to the recipient no later than 120 calendar days after the recipient's
         request and the following procedures govern:
                          (i) If so instructed or if disposition instructions are not issued
                          within 120 calendar days after the recipient's request, the recipient shall sell the equipment and
                          reimburse ED an amount computed by applying to the sales proceeds the percentage of Federal
                          participation in the cost of the original project or program. However, the recipient shall bepermitted to
                          deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for the
                          recipient's selling
                          and handling expenses.
                       (ii) If the recipient is instructed to ship the equipment elsewhere, the recipient is reimbursed by ED by an
                    amount which is computed by applying the percentage of the recipient's participation in the cost of the
                    original project or program to the current fair market value of the equipment, plus any reasonable shipping
                    or interim storage costs
                          incurred.
                       (iii) If the recipient is instructed to otherwise dispose of the equipment, the recipient is reimbursed by ED
                    for costs incurred in its disposition.
                       (iv) The Secretary may reserve the right to transfer the title to the Federal Government or to a third party
                    named by the Federal Government when the third party is otherwise eligible under existing statutes. This
                    transfer shall be subject to the following standards:
                                         (A) The equipment must be appropriately identified in the award or otherwise made known
                                to the recipient in writing.
                                          (B) The Secretary issues disposition instructions within 120 calendar days after receipt of
                                a final inventory. The final inventory must list all equipment acquired with grant funds and
                                federally-owned equipment. If the Secretary does not issue disposition instructions within the 120
                                calendar day period, the recipient shall apply the standards of this section, as appropriate.
                                         (C) When the Secretary exercises the right to take title, the equipment is subject to the
                                provisions for federally-owned equipment.

(Approved by the Office of Management and Budget under control number
1880-0513)
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
[59 FR 34724, July 6, 1994, as amended at 60 FR 6660, Feb. 3, 1995]

EDGAR

Sec. 80.32 Equipment.

   (a) Title. Subject to the obligations and conditions set forth in this section, title to equipment acquired under a grant or sub
grant will vest upon acquisition in the grantee or sub grantee respectively.
   (b) States. A State will use, manage, and dispose of equipment acquired under a grant by the State in accordance with State
laws and procedures. Other grantees and sub grantees will follow paragraphs (c) through (e) of this section.
   (c) Use. (1) Equipment shall be used by the grantee or sub grantee in the program or project for which it was acquired as
long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed
for the original program or project, the equipment may be used in other activities currently or previously supported by a
Federal agency.
             (2) The grantee or sub grantee shall also make equipment available for use on other projects or programs currently
          or previously supported by the Federal Government, providing such use will not interfere with the work on the
          projects or program for which it was originally acquired. First preference for other use shall be given to other
          programs or projects supported by the awarding agency. User fees should be considered if appropriate.
             (3) Notwithstanding the encouragement in Sec. 80.25(a) to earn program income, the grantee or sub grantee must
          not use equipment acquired with grant funds to provide services for a fee to compete unfairly with private
          companies that provide equivalent services, unless specifically permitted or contemplated by Federal statute.
             (4) When acquiring replacement equipment, the grantee or sub grantee may use the equipment to be replaced as a
          trade-in or sell the property and use the proceeds to offset the cost of the replacement property, subject to the
          approval of the awarding agency.
             (d) Management requirements. Procedures for managing equipment (including replacement equipment), whether
          acquired in whole or in part with grant funds, until disposition takes place will, as a minimum, meet the following
          requirements:
              (1) Property records must be maintained that include a description of the property, a serial number or other
          identification number, the source of property, who holds title, the acquisition date, and cost of the property,
          percentage of Federal participation in the cost of the property, the location, use and condition of the property, and
          any ultimate disposition data including the date of disposal and sale price of the property.
             (2) A physical inventory of the property must be taken and the results reconciled with the property records at least
          once every two years.
             (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the
          property. Any loss, damage, or theft shall be investigated.
             (4) Adequate maintenance procedures must be developed to keep the property in good condition.
             (5) If the grantee or sub grantee is authorized or required to sell the property, proper sales procedures must be
          established to ensure the highest possible return.
   (e) Disposition. When original or replacement equipment acquired under a grant or sub grant is no longer needed for the
original project or program or for other activities currently or previously supported by a Federal agency, disposition of the
equipment will be made as follows:
             (1) Items of equipment with a current per-unit fair market value of less than $5,000 may be retained, sold or
          otherwise disposed of with no further obligation to the awarding agency.
             (2) Items of equipment with a current per unit fair market value in excess of $5,000 may be retained or sold and
          the awarding agency shall have a right to an amount calculated by multiplying the current market value or proceeds
          from sale by the awarding agency's share of the equipment.
             (3) In cases where a grantee or sub grantee fails to take appropriate disposition actions, the awarding agency may
          direct the grantee or sub grantee to take excess and disposition actions.
   (f) Federal equipment. In the event a grantee or sub grantee is provided federally-owned equipment:
             (1) Title will remain vested in the Federal Government.
             (2) Grantees or sub grantees will manage the equipment in accordance with Federal agency rules and procedures,
          and submit an annual inventory listing.
             (3) When the equipment is no longer needed, the grantee or sub grantee will request disposition instructions from
          the Federal agency.
   (g) Right to transfer title. The Federal awarding agency may reserve the right to transfer title to the Federal Government or
a third part named by the awarding agency when such a third party is otherwise eligible under existing statutes. Such
transfers shall be subject to the following standards:
             (1) The property shall be identified in the grant or otherwise made known to the grantee in writing.
             (2) The Federal awarding agency shall issue disposition instruction within 120 calendar days after the end of the
          Federal support of the project for which it was acquired. If the Federal awarding agency fails to issue disposition
          instructions within the 120 calendar-day period the grantee shall follow Sec. 80.32(e).
             (3) When title to equipment is transferred, the grantee shall be paid an amount calculated by applying the
          percentage of participation in the purchase to the current fair market value of the property.
   (h) The provisions of paragraphs (c), (d), (e), and (g) of this section do not apply to disaster assistance under 20 U.S.C.
241-1(b)-(c)
and the construction provisions of the Impact Aid Program, 20 U.S.C. 631-647.

(Approved by the Office of Management and Budget under control number
1880-0517)

(Authority: 20 U.S.C. 3474; OMB Circular A-102)

[53 FR 8071 and 8087, Mar. 11, 1988, as amended at 53 FR 8072, Mar. 11,
1988; 53 FR 49143, Dec. 6, 1988]
         ATTACHMENT O
Perkins Grant Assurances and Certifications
                        Attachment O – Assurances and Certifications


                                 Maine Department of Education
                                    Consolidated Application
                                 Career and Technical Education

                      ASSURANCES AND CERTIFICATIONS
                          CARL D. PERKINS GRANT
    APPLICANT :_______
    AGREEMENT AMOUNT $__0_____
    DATE ____

2. INVOICES AND PAYMENTS The Department will pay the provider as follows:

          Per Approved payment schedule
    Payments are subject to the Provider's compliance with all items set forth in this Agreement and
    subject to the availability of funds. The Department will process approved payments within 30 days.

3. BENEFITS AND DEDUCTIONS If the Provider is an individual, the Provider understands and
   agrees that he/she is an independent contractor for whom no Federal or State Income Tax will be
   deducted by the Department, and for whom no retirement benefits, survivor benefit insurance, group
   life insurance, vacation and sick leave, and similar benefits available to State employees will accrue.
   The Provider further understands that annual information returns, as required by the Internal Revenue
   Code or State of Maine Income Tax Law, will be filed by the State Controller with the Internal
   Revenue Service and the State of Maine Bureau of Revenue Services, copies of which will be
   furnished to the Provider for his/her Income Tax records.
4. INDEPENDENT CAPACITY In the performance of this Agreement, the parties hereto agree that the
   Provider, and any agents and employees of the Provider shall act in the capacity of an independent
   contractor and not as officers or employees or agents of the State.
5. DEPARTMENT'S REPRESENTATIVE The Agreement Administrator shall be the Department's
   representative during the period of this Agreement. He/she has authority to curtail services if
   necessary to ensure proper execution. He/she shall certify to the Department when payments under
   the Agreement are due and the amounts to be paid. He/she shall make decisions on all claims of the
   Provider, subject to the approval of the Commissioner of the Department.
6. AGREEMENT ADMINISTRATOR All progress reports, correspondence and related submissions
   from the Provider shall be submitted to:

    Name: Wanda Monthey
    Title: State Director of Vocational Education
    Address: Dept of Education, Workforce Education, Station #23, Augusta, Maine 04333

    who is designated as the Agreement Administrator on behalf of the Department for this Agreement,
    except where specified otherwise in this Agreement.

7. CHANGES IN THE WORK The Department may order changes in the work, the Agreement Amount
   being adjusted accordingly. Any monetary adjustment or any substantive change in the work shall be
   in the form of an amendment, signed by both parties and approved by the Maine Department of
   Education. Said amendment must be effective prior to execution of the work.
8. SUB-AGREEMENTS Unless provided for in this Agreement, no arrangement shall be made by the
   Provider with any other party for furnishing any of the services herein contracted for without the
   consent and approval of the Agreement Administrator. Any sub-agreement hereunder entered into
   subsequent to the execution of this Agreement must be annotated "approved" by the Agreement
      Administrator before it is reimbursable hereunder. This provision will not be taken as requiring the
      approval of contracts of employment between the Provider and its employees assigned for services
      thereunder.
9.    SUBLETTING, ASSIGNMENT OR TRANSFER The Provider shall not sublet, sell, transfer, assign
      or otherwise dispose of this Agreement or any portion thereof, or of its right, title or interest therein,
      without written request to and written consent of the Agreement Administrator. No subcontracts or
      transfer of agreement shall in any case release the Provider of its liability under this Agreement.
10.   EQUAL EMPLOYMENT OPPORTUNITY During the performance of this Agreement, the Provider
      agrees as follows:
           a. The Provider shall not discriminate against any employee or applicant for employment relating
               to this Agreement because of race, color, religious creed, sex, national origin, ancestry, age,
               physical or mental disability, unless related to a bona fide occupational qualification. The
               Provider shall take affirmative action to ensure that applicants are employed and employees
               are treated during employment, without regard to their race, color, religion, sex, age, national
               origin, or physical or mental disability. Such action shall include but not be limited to the
               following: employment, upgrading, demotions, or transfers; recruitment or recruitment
               advertising; layoffs or terminations; rates of pay or other forms of compensation; and selection
               for training including apprenticeship. The Provider agrees to post in conspicuous places
               available to employees and applicants for employment notices setting forth the provisions of
               this nondiscrimination clause.
           b. The Provider shall, in all solicitations or advertising for employees placed by or on behalf of
               the Provider relating to this Agreement, state that all qualified applicants shall receive
               consideration for employment without regard to race, color, religious creed, sex, national
               origin, ancestry, age, physical or mental disability.
           c. The Provider shall send to each labor union or representative of the workers with which it has
               a collective bargaining agreement, or other agreement or understanding, whereby it is
               furnished with labor for the performance of this Agreement a notice to be provided by the
               contracting agency, advising the said labor union or workers' representative of the Provider's
               commitment under this section and shall post copies of the notice in conspicuous places
               available to employees and applicants for employment.
           d. The Provider shall inform the contracting Department's Equal Employment Opportunity
               Coordinator of any discrimination complaints brought to an external regulatory body (Maine
               Human Rights Commission, EEOC, Office of Civil Rights) against their agency by any
               individual as well as any lawsuit regarding alleged discriminatory practice.
           e. The Provider shall comply with all aspects of the Americans with Disabilities Act (ADA) in
               employment and in the provision of service to include accessibility and reasonable
               accommodations for employees and clients.
           f. Contractors and subcontractors with contracts in excess of $50,000 shall also pursue in good
               faith affirmative action programs.
           g. The Provider shall cause the foregoing provisions to be inserted in any subcontract for any
               work covered by this Agreement so that such provisions shall be binding upon each
               subcontractor, provided that the foregoing provisions shall not apply to contracts or
               subcontracts for standard commercial supplies or raw materials.
11.   EMPLOYMENT AND PERSONNEL The Provider shall not engage any person in the employ of any
      State Department or Agency in a position that would constitute a violation of 5 MRSA ? 18 or 17
      MRSA ? 3104. The Contractor shall not engage on a full-time, part-time or other basis during the
      period of this Agreement, any other personnel who are or have been at any time during the period of
      this Agreement in the employ of any State Department or Agency, except regularly retired employees,
      without the written consent of the State Purchases Review Committee. Further, the Provider shall not
      engage on this project on a full-time, part-time or other basis during the period of this Agreement any
      retired employee of the Department who has not been retired for at least one year, without the written
      consent of the State Purchases Review Committee. The Provider shall cause the foregoing provisions
      to be inserted in any subcontract for any work covered by this Agreement so that such provisions shall
      be binding upon each subcontractor, provided that the foregoing provisions shall not apply to
      contracts or subcontracts for standard commercial supplies or raw materials.
12.   STATE EMPLOYEES NOT TO BENEFIT No individual employed by the State at the time this
      Agreement is executed or any time thereafter shall be admitted to any share or part of this Agreement
      or to any benefit that might arise therefrom directly or indirectly that would constitute a violation of 5
      MRSA ? 18 or 17 MRSA ? 3104. No other individual employed by the State at the time this
      Agreement is executed or any time thereafter shall be admitted to any share or part of this Agreement
      or to any benefit that might arise therefrom directly or indirectly due to his employment by or financial
      interest in the Provider or any affiliate of the Provider, without the written consent of the State
      Purchases Review Committee. The Provider shall cause the foregoing provisions to be inserted in any
      subcontract for any work covered by this Agreement so that such provisions shall be binding upon
      each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts
      for standard commercial supplies or raw materials.
13.   WARRANTY The Provider warrants that it has not employed or contracted with any company or
      person, other than for assistance with the normal study and preparation of a proposal, to solicit or
      secure this Agreement and that it has not paid, or agreed to pay, any company or person, other than a
      bona fide employee working solely for the Provider, any fee, commission, percentage, brokerage fee,
      gifts, or any other consideration, contingent upon, or resulting from the award for making this
      Agreement. For breach or violation of this warranty, the Department shall have the right to annul this
      Agreement without liability or, in its discretion to otherwise recover the full amount of such fee,
      commission, percentage, brokerage fee, gift, or contingent fee.
14.   ACCESS TO RECORDS The Provider shall maintain all books, documents, payrolls, papers,
      accounting records and other evidence pertaining to this Agreement and make such materials
      available at its offices at all reasonable times during the period of this Agreement and for such
      subsequent period as specified under Maine Uniform Accounting and Auditing Practices for
      Community Agencies (MAAP) rules. The Provider shall allow inspection of pertinent documents by the
      Department or any authorized representative of the State of Maine or Federal Government, and shall
      furnish copies thereof, if requested.
15.   TERMINATION The performance of work under the Agreement may be terminated by the
      Department in whole, or in part, whenever for any reason the Agreement Administrator shall
      determine that such termination is in the best interest of the Department. Any such termination shall
      be effected by delivery to the Provider of a Notice of Termination specifying the extent to which
      performance of the work under the Agreement is terminated and the date on which such termination
      becomes effective. The Agreement shall be equitably adjusted to compensate for such termination,
      and modified accordingly.
16.   GOVERNMENTAL REQUIREMENTS The Provider warrants and represents that it will comply with
      all governmental ordinances, laws and regulations.
17.   GOVERNING LAW This Agreement shall be governed in all respects by the laws, statutes, and
      regulations of the United States of America and of the State of Maine. Any legal proceeding against
      the State regarding this Agreement shall be brought in State of Maine administrative or judicial
      forums. The Provider consents to personal jurisdiction in the State of Maine.
18.   STATE HELD HARMLESS The Provider agrees to indemnify, defend and save harmless the State,
      its officers, agents and employees from any and all claims, costs, expenses, injuries, liabilities, losses
      and damages of every kind and description (hereinafter in this paragraph referred to as "claims")
      resulting from or arising out of the performance of this Agreement by the Provider, its employees,
      agents, or subcontractors. Claims to which this indemnification applies include, but without limitation,
      the following: (i) claims suffered or incurred by any contractor, subcontractor, materialman, laborer
      and any other person, firm, corporation or other legal entity (hereinafter in this paragraph referred to
      as "person") providing work, services, materials, equipment or supplies in connection with the
      performance of this Agreement; (ii) claims arising out of a violation or infringement of any proprietary
      right, copyright, trademark, right of privacy or other right arising out of publication, translation,
      development, reproduction, delivery, use, or disposition of any data, information or other matter
      furnished or used in connection with this Agreement; (iii) Claims arising out of a libelous or other
      unlawful matter used or developed in connection with this Agreement; (iv) claims suffered or incurred
      by any person who may be otherwise injured or damaged in the performance of this Agreement; and
      (v) all legal costs and other expenses of defense against any asserted claims to which this
      indemnification applies. This indemnification does not extend to a claim that results solely and directly
      from (i) the Department's negligence or unlawful act, or (ii) action by the Provider taken in reasonable
      reliance upon an instruction or direction given by an authorized person acting on behalf of the
      Department in accordance with this Agreement.
19.   NOTICE OF CLAIMS The Provider shall give the Contract Administrator immediate notice in writing
      of any legal action or suit filed related in any way to the Agreement or which may affect the
      performance of duties under the Agreement, and prompt notice of any claim made against the
      Provider by any subcontractor which may result in litigation related in any way to the Agreement or
      which may affect the performance of duties under the Agreement.
20. APPROVAL This Agreement must have the approval of the State Controller and the State
    Purchases Review Committee before it can be considered a valid, enforceable document.
21. LIABILITY INSURANCE The Provider shall keep in force a liability policy issued by a company fully
    licensed or designated as an eligible surplus line insurer to do business in this State by the Maine
    Department of Professional & Financial Regulation, Bureau of Insurance, which policy includes the
    activity to be covered by this Agreement with adequate liability coverage to protect itself and the
    Department from suits. Providers insured through a "risk retention group" insurer prior to July 1, 1991
    may continue under that arrangement. Prior to or upon execution of this Agreement, the Provider shall
    furnish the Department with written or photocopied verification of the existence of such liability
    insurance policy.
22. NON-APPROPRIATION Notwithstanding any other provision of this Agreement, if the State does not
    receive sufficient funds to fund this Agreement and other obligations of the State, if funds are de-
    appropriated, or if the State does not receive legal authority to expend funds from the Maine State
    Legislature or Maine courts, then the State is not obligated to make payment under this Agreement.
23. SEVERABILITY The invalidity or unenforceability of any particular provision or part thereof of this
    Agreement shall not affect the remainder of said provision or any other provisions, and this
    Agreement shall be construed in all respects as if such invalid or unenforceable provision or part
    thereof had been omitted.
24. INTEGRATION All terms of this Agreement are to be interpreted in such a way as to be consistent at
    all times with the terms of Rider B (except for expressed exceptions to Rider B included in Rider C),
    followed in precedence by Rider A, and any remaining Riders in alphabetical order.
25. FORCE MAJEURE The Department may, at its discretion, excuse the performance of an obligation
    by a party under this Agreement in the event that performance of that obligation by that party is
    prevented by an act of God, act of war, riot, fire, explosion, flood or other catastrophe, sabotage,
    severe shortage of fuel, power or raw materials, change in law, court order, national defense
    requirement, or strike or labor dispute, provided that any such event and the delay caused thereby is
    beyond the control of, and could not reasonably be avoided by, that party. The Department may, at its
    discretion, extend the time period for performance of the obligation excused under this section by the
    period of the excused delay together with a reasonable period to reinstate compliance with the terms
    of this Agreement.
26. SET-OFF RIGHTS The State shall have all of its common law, equitable and statutory rights of set-
    off. These rights shall include, but not be limited to, the State's option to withhold for the purposes of
    set-off any monies due to the Provider under this Agreement up to any amounts due and owing to the
    State with regard to this Agreement, any other Agreement, any other Agreement with any State
    department or agency, including any Agreement for a term commencing prior to the term of this
    Agreement, plus any amounts due and owing to the State for any other reason including, without
    limitation, tax delinquencies, fee delinquencies or monetary penalties relative thereto. The State shall
    exercise its set-off rights in accordance with normal State practices including, in cases of set-off
    pursuant to an audit, the finalization of such audit by the State agency, its representatives, or the
    State Controller.
27. ENTIRE AGREEMENT This document contains the entire Agreement of the parties, and neither
    party shall be bound by any statement or representation not contained herein. No waiver shall be
    deemed to have been made by any of the parties unless expressed in writing and signed by the
    waiving party. The parties expressly agree that they shall not assert in any action relating to the
    Agreement that any implied waiver occurred between the parties which is not expressed in writing.
    The failure of any party to insist in any one or more instances upon strict performance of any of the
    terms or provisions of the Agreement, or to exercise an option or election under the Agreement, shall
    not be construed as a waiver or relinquishment for the future of such terms, provisions, option or
    election, but the same shall continue in full force and effect, and no waiver by any party of any one or
    more of its rights or remedies under the Agreement shall be deemed to be a waiver of any prior or
    subsequent rights or remedy under the Agreement or at law.
28. GRANT EXPENITURES AND REPORTING The expenditure of grant funds under this agreement will
    be in accordance with: the recipients approved application, budget and the standards and
    requirements set forth in the Carl D. Perkins Vocational and Technical Education Act of 1998
    (P.L.105-392) including the requirement to submit mid-year (due Jan 15) and annual project progress
    reports and a yearend financial report (due June 30).
29. DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS

    As required by Executive Order 12549, Debarment and Suspension, and implemented at 34 CFR,
       Part 85, for prospective participants in primary covered transactions, as defined at 34 CFR, Park 85,
       Sections 85.105 and 85.110.

           1. The applicant certifies that it and its principals:
                  a. Are not presently debarred, suspended, proposed for debarment, declared ineligible,
                       or voluntarily excluded from covered transactions by any Federal department or
                       agency;
                  b. Have not within a three-year period preceding this application been convicted of or
                       had a civil judgment rendered against them for commission of fraud or a criminal
                       offense in connection with obtaining, attempting to obtain, or performing a public
                       (Federal, State, or Local) transaction or contract under a public transaction; violation
                       of Federal or State antitrust statutes or commission or embezzlement, theft, forgery,
                       bribery, falsification or destruction of records, making false statements, or receiving
                       stolen property;
                  c. Are not presently indicted for or otherwise criminally or civilly charged by a
                       governmental entity (Federal, State, or Local) with commission of any of offenses
                       enumerated in 1(b) of this citation; and
                  d. Have not within a three-year period preceding this application had one or more public
                       transactions (Federal, State, or Local) terminated for cause of default; and
           2. Where the applicant is unable to certify to any of the statements in this certification, he or she
              shall attach an explanation to this application.




        Supplement Not Supplant. --Funds made available under this Act for vocational and technical
education activities shall supplement, and shall not supplant, non-Federal funds expended to carry out
vocational and technical education activities and tech-prep activities.

    SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL                                  TITLE



              APPLICANT ORGANIZATION                                       DATE SUBMITTED
   ATTACHMENT P
Local Grant Approval Checklist
                                  Attachment P – Local Grant Checklist
        DRAFT LOCAL PERKINS PLAN-APPROVAL REQUIREMENTS
        CHECKLIST COMPILED FROM INDIVIDUAL APPROVALS AT BOTTOM OF EACH SECTION ON THE ONLINE
                                            GRANT SYSTEM



Site Profile     (20-A chapter 313)
Secondary
     List of programs
     Affirmation of a consortium or cooperative agreement
     Date of first meeting of your schools advisory (centers) or cooperative (regions) board.
Postsecondary
     Organizational structure
     List of programs, degrees or certificates offered
     Give percentage of CTE students


Administration Plan              (Perkins Act section 135 (d))
        a) Perkins funded (for Postsecondary Admin is used at System level)
        b) Total CTE Programming.


Academic Attainment / Credential, Certificate or Degree
(Perkins Act Section 134(b) 3, 135 (B) 2; and 135 (b) 1, Section 122 (c) (1)) (1S1, 1S2, 2P1)
     One Actual Program of Study included in grant
     List of additional Programs of Study
     Hard copies of all Programs of Study mailed to MDOE
     Identification of what specific programs of study are being planned for/working towards this year
     Identified which academics are integrated with CTE Programs of study
     Description of how are these academics integrated with the career and technical program of study and
        strategies to be employed to strengthen academic rigor
     strategies/activities will be used to ensure learning in the core academic areas identified
     strategies will be used to encourage career and technical education students to enroll in rigorous and
        challenging core academic subjects identified
     strategies/activities will be employed to ensure that students in career and technical education programs
        are taught to the same coherent and rigorous content aligned with challenging academic standards as all
        other students identified
     strategies to increase and improve literacy and numeracy in reading/language arts, math, science and
        technology

                             CURRICULUM DEVELOPMENT (Section 134-4)
        school-wide or specific program curriculum improvement effort and plans identified



Placement          (5S1, 4P1)
        Description of the articulation agreement process in school.
        Indication of what benefits/advantages are available to the students as a result of the secondary/post-
         secondary linkage
        Identification of required articulation contact
        Description of specific articulation agreements working towards this year
        Description of what enhanced articulation projects working towards this year
        Table completed
        strategies will be used to provide students with strong experience and understanding of ―all aspects of
         the industry‖ which may include work-based learning experiences identified
Services for Special Populations                      (Maine State Performance Measure – Special Populations) (Section
134-8C and 135-9) (Section 135-6)
    Review of career and technical education programs, and identification of strategies to overcome barriers.
    Description of how school enrolls assesses and monitors the students‘ needs.
    Does description include the following?
      a. Describe how you enroll, assess and monitor the students‘ needs.
      b. Include an outline of the students Individual Education Plan process along with the associated
      c. Instructional methods and modifications
      d. Equipment Adaptations
      e. Support Services
      f. Outreach Efforts
      g. Examples of any ―best practices‖ in individualized instruction.
    Provided a listing of services and programs that are designed to enable the special populations to meet
        the local adjusted accountability levels of performance required by Perkins.
    Application includes a complete and detailed description of courses of study, programs, activities and
        services to prepare special populations for high skill, high wage, or high demand occupations that will
        lead to self-sufficiency
    description of how school complies with Maine ―State Standards of Service for Special Populations"
    assurance that individuals who are members of special populations will not be discriminated against on
        the basis of their special population status:
    Description of the evaluation process for determining how well the needs of Special Populations are being
        met



Preparation for Nontraditional Careers                        (Section 134-10)
       detailed description of how Perkins funds, or other funds, will be used for nontraditional training and
        employment


Completion/Graduation/School Retention and Transfer
(3S1, 4S1, 4P1) (Perkins 134b‗‗(11))
     CTE Student Organizations (Skills USA, DECA, HOSA, FFA, etc.)
     Strategies to improve CTE program retention and transfer
     Strategies/activities to be used to remedy any program deficits identified through local assessment of
        students
     Description of the ―size, scope, and quality‖ of program improvement projects and explanation of how
        these projects support continuous improvement in the quality of career and technical education
                        A. EXISTING PROGRAM DEVELOPMENT/ENHANCEMENT(Section 135-4,7)
     How will funds be used to improve/enhance the existing programs identified
     How will school initiate, improve, expand, and modernize quality career and technical education
        programs, including relevant technology identified
     Where are each of these program(s) in relation to becoming a program of study identified
                          B. NEW PROGRAM DEVELOPMENT
     new programs being developed identified

                        C. NEW PROGRAM IMPLEMENTATION
       New program implementation description

                          D. ONE –YEAR OLD PROGRAM UPDATE
       How will funds be used to improve the new career and technical education program(s)/course(s)
        identified
       MDOE Program approval date identified
Collaboration Plan ((Section 134 ‗‗(5) (State plan guide II A 11.) (Sec. 122(c)(20))
        Description of how stakeholders as required by application are involved in the development,
         implementation, and evaluation of career and technical education programs assisted under this title.
        Description of how such individuals and entities are effectively informed about, and assisted in
         understanding, the requirements of this title, including career and technical programs of study
        Description of how school has involved local workforce investment board

                      Postsecondary
       Postsecondary career and technical education programs assisted under Perkins IV are mandatory partners
       in the one-stop career center delivery system established by WIA. You are encouraged to collaborate with
       your State Workforce Investment Board and other one-stop partners as you plan for the participation of
       postsecondary career and technical programs in your State‘s one-stop career center delivery system. (Page
       11 state plan guide)

        Description of collaboration and other coordination systems in place.
        Mandatory postsecondary WIA collaboration
                  Secondary
        Description of any coordination efforts your school is involved in. You are encouraged to collaborate with
         your State Workforce Investment Board and other one-stop partners.

Evaluation           (Section 134-7 and 135-6)
    Description on evaluation including
                          Who evaluates programs
                          How often do you internally (within your school) review programs and what evaluation
                           tool is used
                          How often do you externally review your programs
                          Identification of which required school wide review process is used
                          Programs has a plan to meet the needs of employees and are current with technological
                           changes
                          Description of the assessment that determines that the needs of special populations are
                           being met.
                          Description of the process for updating, suspending, canceling and replacing programs
                          Description of the involvement of PACs
                          Description of the PAC process to review program skill assessments to assure third party
                           Skill Assessment are used when available and appropriate.



Skill Attainment (2S1, 1P1)
        Strategies to be used to ensure learning and skill attainment in the CTE programs
        Strategies to be used to ensure that CTE students meet skill assessment standards
        Strategies to be used to ensure that CTE students have adequate skills to enter employment, further
         education or the military
        Strategies to be used to ensure CTE programs acquire the needed equipment to remain current with the
         industry
        Activities engaged in to assure CTE programs meet Perkins IV skill assessment requirements
                                TECHNOLOGY IMPROVEMENT (Section 135-4)
        Description of how school will develop, improve, or expand the use of technology in career and technical
         education
Professional Development Plans (Section 134-B-4 and 135-5A to 5D) (134 b ‗‗(12)
      In service and pre service training for CTE staff on:
           a. Effective integration and use of challenging academic and career and technical education
                provided jointly with academic teachers to the extent practicable (such as numeracy and literacy)
           b. Effective teaching skills based on research that include promising practices
           c. Effective use of scientifically based research and date to improve instruction
           d. Effective training on technical skill assessment
      Identification of support of education programs for teachers of career and technical education and other
       public school personnel involved in the direct delivery of educational services to career and technical
       education students to ensure that CTE teachers and other personnel stay current with all aspects of the
       industry
      Internship programs that provide relevant business experience
      Programs designed to train CTE teachers specifically in the effective use and application of technology to
       improve instruction
      The recruitment and retention of career and technical education teachers, faculty, and career guidance
       and academic counselors for CTE students, including individuals in groups underrepresented in the
       teaching profession
      The transition of CTE personnel to teaching from business and industry.


Accountability         (Section 134-b-2) (section 113)
      Assurance that all programs meet the requirements of the "Core Measures and Standards"
      Local negotiations plans- agreed upon performance levels accepted
ATTACHMENT Q
   Perkins Section 135
Allowable Uses of Funds
                             Attachment Q – Section 135
Allowable use of funds- section 135
''SEC. 135. LOCAL USES OF FUNDS.

''(a) GENERAL AUTHORITY.-Each eligible recipient that receives funds under this part shall
use such funds to improve career and technical education programs.
''(b) REQUIREMENTS FOR USES OF FUNDS.-Funds made available to eligible recipients
under this part shall be used to support career and technical education programs that-
''(1) strengthen the academic and career and technical skills of students participating in
career and technical education 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, such as
career and technical programs of study described in section 122(c)(1)(A), to ensure learning
in-
''(A) the core academic subjects (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965); and
''(B) career and technical education subjects;
''(2) link career and technical education at the secondary level and career and technical
education at the postsecondary level, including by offering the relevant elements of not less
than 1 career and technical program of study described in section 122(c)(1)(A);
''(3) provide students with strong experience in and understanding of all aspects of an
industry, which may include workbased learning experiences;
''(4) develop, improve, or expand the use of technology in career and technical education,
which may include-
''(A) training of career and technical education teachers, faculty, and administrators to use
technology, which may include distance learning;
''(B) 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
''(C) 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 that are consistent with section 122 to
secondary and postsecondary teachers, faculty, administrators, and career guidance and
academic counselors who are involved in integrated career and technical education
programs, including-
''(A) in-service and preservice training on- S. 250-53
''(i) effective integration and use of challenging academic and career and technical education
provided jointly with academic teachers to the extent practicable;
''(ii) effective teaching skills based on research that includes promising practices;
''(iii) effective practices to improve parental and community involvement; and
''(iv) effective use of scientifically based research and data to improve instruction;
''(B) 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;
''(C) internship programs that provide relevant business experience; and
''(D) programs designed to train teachers specifically in the effective use and application of
technology to improve instruction;
''(6) develop and implement evaluations of the 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.
''(c) PERMISSIVE.-Funds made available to an eligible recipient under this title may be used-
''(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
described in section 118, for students participating in career and technical education
programs, that-
''(A) improves graduation rates and provides information on postsecondary 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 postsecondary students, including for adult students who are
changing careers or updating skills;
''(3) for local education and business (including small business) partnerships, including for- S.
250-54
''(A) work-related experiences for students, such as internships, cooperative education,
school-based enterprises, entrepreneurship, and job shadowing that are related to career
and technical education programs;
''(B) adjunct faculty arrangements for qualified industry professionals; and
''(C) 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 skill 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 postsecondary 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-
''(A) articulation agreements between sub-baccalaureate degree granting career and
technical education postsecondary educational institutions and baccalaureate degree
granting postsecondary educational institutions;
''(B) postsecondary dual and concurrent enrollment programs;
''(C) academic and financial aid counseling for subbaccalaureate 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
''(D) other initiatives-
''(i) to encourage the pursuit of a baccalaureate degree; and
''(ii) to overcome barriers to enrollment in and 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
postsecondary credit to count towards an associate or baccalaureate degree;
''(13) to develop and support small, personalized careerthemed learning communities; S.
250-55
''(14) to provide support for family and consumer sciences 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-
''(A) improving the initial preparation and professional development of career and technical
education teachers, faculty, administrators, and counselors;
''(B) establishing, enhancing, or supporting systems for-
''(i) accountability data collection under this Act; or
''(ii) reporting data under this Act;
''(C) implementing career and technical programs of study described in section 122(c)(1)(A);
or
''(D) implementing technical assessments; and
''(20) to support other career and technical education activities that are consistent with the
purpose of this Act.
''(d) ADMINISTRATIVE COSTS.-Each eligible recipient receiving funds under this part shall
not use more than 5 percent of the funds for administrative costs associated with the
administration of activities assisted under this section.
ATTACHMENT R
  Perkins Section 134
Local Plan Requirements
                             Attachment R – Section 134
Local plan requirements section 134
''SEC. 134. LOCAL PLAN FOR CAREER AND TECHNICAL EDUCATION PROGRAMS.

''(a) LOCAL PLAN REQUIRED.-Any eligible recipient desiring financial assistance under this
part shall, in accordance with requirements established by the eligible agency (in consultation
with such other educational training entities as the eligible agency determines to be
appropriate) submit a local plan to the eligible agency. Such local plan shall cover the same
period of time as the period of time applicable to the State plan submitted under section 122.
''(b) CONTENTS.-The eligible agency shall determine the requirements for local plans,
except that each local plan shall-
''(1) describe how the career and technical education programs required under section 135(b)
will be carried out with funds received under this title;
''(2) describe how the career and technical education activities will be carried out with respect
to meeting State and local adjusted levels of performance established under section 113;
''(3) describe how the eligible recipient will-
''(A) offer the appropriate courses of not less than 1 of the career and technical programs of
study described in section 122(c)(1)(A);
''(B) improve the academic and technical skills of students participating in career and
technical education programs by strengthening the academic and career and technical
education components of such programs through the integration of coherent and rigorous
content aligned with challenging academic standards and relevant career and technical
education programs to ensure learning in-
''(i) the core academic subjects (as defined in section 9101 of the Elementary and Secondary
Education Act of 1965); and
''(ii) career and technical education subjects;
''(C) provide students with strong experience in, and understanding of, all aspects of an
industry; S. 250-51
''(D) ensure that students who participate in such career and technical education programs
are taught to the same coherent and rigorous content aligned with challenging academic
standards as are taught to all other students; and
''(E) encourage career and technical education students at the secondary level to enroll in
rigorous and challenging courses in core academic subjects (as defined in section 9101 of
the Elementary and Secondary Education Act of 1965);
''(4) describe how comprehensive professional development (including initial teacher
preparation) for career and technical education, academic, guidance, and administrative
personnel will be provided that promotes the integration of coherent and rigorous content
aligned with challenging academic standards and relevant career and technical education
(including curriculum development);
''(5) describe how parents, students, academic and career and technical education 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 of 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 career and technical education 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 career and technical programs of
study;
''(6) provide assurances that the eligible recipient will provide a career and technical
education program that is of such size, scope, and quality to bring about improvement in the
quality of career and technical education 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 will-
''(A) review career and technical education 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;
''(B) provide programs that are designed to enable the special populations to meet the local
adjusted levels of performance; and
''(C) 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 career and
technical education students, S. 250-52 including linkages to future education and training
opportunities; and
''(12) describe efforts to improve-
''(A) the recruitment and retention of career and technical education teachers, faculty, and
career guidance and academic counselors, including individuals in groups underrepresented
in the teaching profession; and
''(B) the transition to teaching from business and industry.
ATTACHMENT S
Live or Outside Work
                              Attachment S - Live or Outside Work Policy

05-071          DEPARTMENT OF EDUCATION

Chapter 237: ―LIVE OR OUTSIDE WORK‖


Summary: In order to provide practical experiences to vocational students, it is sometimes necessary to
obtain work from outside the school community. The primary goal of the live work process is to
enhance the educational offerings of vocational/ technical programs so that students can reach and
master the competencies in a specific vocational area. However, schools must not compete unfairly with
the private sector.


1.       Definition

         Live or Outside Work

         An actual work situation as opposed to a practice piece. Practice pieces are normally torn down
         after construction or service. (Example: the building of a structure for use by a person or agency
         or the repair of an automobile or electrical appliance for use by a consumer is a live work
         project.)


2.       Local Requirements for ―Live or Outside Work‖

         When conducting live work or bringing school-based enterprise projects into the curriculum,
         schools must work with the local program advisory committees. Schools must obtain support and
         leadership from the business community to avoid any unreasonable negative impact on private
         business. Together they should establish a formal process for problem solving and dispute
         resolution, and develop accountability systems that can measure and evaluate the operation,
         effectiveness, and business and community roles of these enterprises and activities.

         A.     All vocational education programs, school-to-work programs and school-based
                enterprises that are at least in part funded by Federal or State funds must have a program
                advisory committee with broad representation of business and industry, to include the full
                range of sizes of the businesses in the area. The majority of members of the program
                advisory committee must come from the private sector.

         B.     All vocational education programs, school-to-work programs and school-based
                enterprises that are at least in part funded by Federal or State funds must have a live work
                policy in place. An established live work policy will:
                                                                                 05-071 Chapter 237   page 2




            1.      insure that all expenditures and receipts are thoroughly accounted for

            2.      include a local grievance procedure

            3.      state that work will be accepted in a manner that will best enhance the present
                    learning objectives of the students

            4.      identify in writing who may qualify to request/receive live work products or
                    services

      C.    The appropriate program advisory committee and the governing board of the schools
            must approve each live work policy.

      D.    Policies and procedures for administering ―live work‖ must be filed with the Maine
            Department of Education for its review to assure compliance with this rule. Any
            amendments to such policies and procedures are also subject to Department of Education
            review.

      E.    Annually the program advisory committees and the governing boards must review the
            live work policies and send evidence of this review to the Maine Department of
            Education.



STATUTORY AUTHORITY:               20-A MRSA Section 8306-A

EFFECTIVE DATE:
     June 21, 1979 (EMERGENCY)

EFFECTIVE DATE OF PERMANENT RULE:
     August 30, 1979

EFFECTIVE DATE (ELECTRONIC CONVERSION):
     May 19, 1996

AMENDED:
    July 18, 1999
ATTACHMENT T
Perkins IV Work Plan
                            Attachment T – Perkins IV Work Plan


                           Perkins IV Work plan
                  FEDERAL PERFORMANCE MEASURES
                           Perkins IV Performance measure
                                  Academic Attainment
                                        1S1, 1S2
   Secondary - Literacy Initiatives
       o   Mentor training
       o   Literacy workshops
       o   Promising Practices initiative
       o   Leadership training
       o   Technical skill test analysis
   Secondary - Academic Integration –high school reform
   Postsecondary-Academic Integration-current and expand with POS
   Secondary - Numeracy Initiative – partnering with MDOE work across content areas

                               Perkins IV Performance measure
                                  Technical Skill Attainment
                                            2S1, 1P1

   Equipment acquisition and new program start up- keep Maine CTE current with industry
    needs
   Secondary - Nationally Recognized Technical Skill (NRTS) certification research
   Secondary-Program specific CTE discussion- Nationally Recognized Technical Skill
    Standards
   Secondary and postsecondary-research/develop/adopt technical skills assessment
   Secondary and postsecondary-Develop and implement a plan to meet the federally
    recognized assessment standards


                            Perkins IV Performance measure
                        School Completion, retention and transfer
                                         3S1, 3P1

   Methods of Administration site visits
   Articulation/Dual Enrollment (Secondary/Postsecondary) requirement
   Special Population services
   Career and Technical Student Organizations (CTSOs)

                          Perkins IV Performance measure
                  Graduation Rates, Credential, Certificate or Degree
                                       4S1, 2P1
   Secondary – Research grade 9-12 programs
   Secondary – Research exploratory programs as part of a career pathway
   Programs of Study secondary to postsecondary
   High school diploma and program completion –CTE a partner in high school redesign

                             Perkins IV Performance measure
                                         Placement
                                          5S1, 4P1

   Secondary and Postsecondary- continue with current initiatives
       o Accuplacer
       o Programs of Study
       o Apprenticeship
       o Internships
       o Speakers from Business and Industry
       o Student Portfolios
       o PSAT for all grade 10 and all grade 11 students
       o SAT for all 11th grade students
   Required Articulation and enhanced articulation agreements
   Stronger ties with Business and Industry
   Explore data collection possibilities
   Secondary-Expand pre-apprenticeship opportunities
   Postsecondary- expand apprenticeship opportunities

                             Perkins IV Performance measure
                                Nontraditional Placement
                                     6S1, 6S2, 5P1, 5P2

   Nontraditional exploratory events
   Postsecondary gender equity and childcare programs
   8.5% initiatives




                    STATE PERFORMANCE MEASURES
                          State of Maine Performance Measure
                                   Business and Industry

   Mandatory Program advisory committee requirements
       o   PAC meets at least annually- with a suggestion to meet during each semester.
       o   Membership must include teachers, business and industry partners, secondary and postsecondary
           constituents, students and other interested stakeholders
       o   Review current curriculum, suggest and approve changes to curriculum and course offerings and
           provide feedback on the success or failures of each program
       o   Conduct a comprehensive examination of the standards guiding the programs and the assessments
           to be used to determine technical skill attainment (national skills standards, state standards, or
           locally developed standards).
       o   Develop or review a plan to move the program to nationally recognized technical skills standards
           and assessments where they exist or state certifications/licensure.



                           State of Maine Performance Measure
                                        Evaluation

   Program Evaluation and Improvement
       o Annual program review – at the local level
       o Participation of the PAC
       o Common evaluation instrument for all programs – developed at the local level
       o Comprehensive School Review every 5 years


                           State of Maine Performance Measure
                                 Professional Development

   Develop and Implement Professional Development on CTE and Academic program Integration
       o Literacy
       o Numeracy
       o Revised MLR’s
       o Collaboration with other federal initiatives
   Professional Development-technical skill attainment- MDOE and CTE Schools
   Professional Development-statewide-teacher training-MDOE and CTE schools
   Teacher Development-retention and recruitment

                             State of Maine Performance Measure
                                        Data Collection

   Data collection, analysis and use-maintain current collection (statewide data collection MDOE)
       o Academic Attainment
       o Graduation rate
       o School completion
       o Placement
       o Nontraditional placement
   Gather data on technical skill attainment
       o MDOE will comply with federal regulations as determined and required

   Collaborate with other agencies to obtain information on high skill, high wage, high demand
    occupations
        o Information available on an annual basis
        o Maine Jobs Council, as the State Workforce Investment Board, will review data from the
           Center for Workforce Research & Information (CWRI) and generate a targeted list of
           occupations for the Competitive Skills Scholarship Program (CSSP)
        o Maine Department of Labor will make this information available on their website.
        o MDOE, local secondary directors and postsecondary staff will attend and participate in
           State and national conventions to attain information on current or emerging occupational
           opportunities.
                                 State of Maine Performance Measure
                                             Collaboration

      Secondary collaboration
          o Local grantees will develop procedures to ensure coordination and non-duplication
             among programs
                 Programs of study
                 Local workforce boards
                 Other state and federal agencies

      Postsecondary collaboration
          o Local grantees will develop procedures to ensure coordination and non-duplication
             among programs
                 Programs of study
                 Local workforce boards
                 Other state and federal agencies
                 Required collaboration with WIA

                               State of Maine Performance Measure
                                          Accountability

      Negotiated state performance levels with Federal DOE
         o Negotiate the CAR indicators using the actual data figures on the Maine data
             collection system
         o Increase performance levels using activities in the work plan

      Negotiated local levels with State DOE
         o Develop negotiation process
         o Have locals provide performance measures if different than state agreed upon
             performance levels

                               State of Maine Performance Measure
                                           Special Populations

      Special Populations
        Description of how grantees implement program strategies for Special Populations including how
individuals
           o Will be afforded equal access to all activities.
           o Will not be discriminated against on the basis of their status as members of
             special populations.
           o Will be provided with programs to meet or exceed State adjusted levels of
             performance.
           o Will be prepared for further learning and for high-skill, high-wage, or high-
             demand occupations.
           o How funds will be used to promote preparation for high-skill, high-wage, or high
             demand and non-traditional fields.
                                           8.5% initiatives
Proposed Uses for Funds- grants to local eligible recipients on the following priorities:
   • Curriculum Resource and development
   • Non traditional populations services
   • Literacy initiatives
          – Mentoring
          – Promising practices
   • Standard development and adoption of state / national industry recognized standards CTE & CC
      Partnerships
   • Programs of study implementation (CTEs & CCs) CTE & CC Partnerships
   • Syllabus development and implementation grants
   • Support of Nontraditional exploration opportunities grants
ATTACHMENT U

    FAQ
                                           Attachment U - FAQ
                                     Carl D. Perkins Act of 2006
                                       Frequently Asked Questions
                                                 2007-2008
Question                                                 Answer and Explanation

Use of Perkins Funds
For:
Teacher Travel to             Teacher travel to national and state professional development conferences, such as
National/State Conferences    the National Business Educator‘s Association, is an allowable expense.
                              Conference attendees are responsible to share information with other district staff
                              and making improvements to curriculum in an effort to increase overall program
                              quality.
Teacher Education Costs       A teacher‘s educational costs which are directly related to their CTE program area
                              are an allowable expense. Course work necessary to enhance teacher knowledge
                              directly related to CTE curriculum improvements or student instruction is
                              permissible i.e. CAD, Microsoft Office Suite
Equipment for Teacher Use     Equipment purchased using Perkins funds, solely for teacher use is not allowed.
                              All equipment purchased with Perkins funds must be for student use or utilized in
                              instructing students in the classroom.
School to Career Activities   There is a prohibition clause within the Perkins legislation for use of funds for
                              School to Career activities. However, funds used for CTE student career
                              development is an allowable expense.
Professional Development      Professional Development activities:
for CTE staff                    Are high-quality, sustained, intensive and classroom-focused
                                 Will help teachers and personnel improve student achievement.
                                 Will help teachers and personnel: stay current with all aspects of an
                                     industry; effectively develop rigorous and challenging integrated curricula
                                     (jointly with academic teachers, to the extent practicable), develop a higher
                                     level of academic and industry knowledge and skills, and effectively use
                                     applied learning.
                                 Promotes integration with professional development activities that the State
                                     carries out under NCLB. Title II of ESEA prohibits one-day or short-term
                                     workshops, unless such workshops and conferences are part of a larger
                                     series of professional development activities.
                                 May include internship programs that provide relevant business experience
                                     or programs designed to train teachers specifically in the effective use and
                                     application of technology to improve instruction.
                                 May include initial teacher preparation professional development

Facility Construction or      Renovation of the school facility cannot be funded by the Perkins grant. However,
Remodeling                    equipment required to startup or upgrade CTE programs is allowable.

Equipment                     Equipment is defined as ―an article of nonexpendable, tangible personal property
                              having a useful life of more than one year. Equipment with a purchase price
                              limitation of $1,000 or more must be accounted for and controlled in accordance
                              with the provisions of OMB Circular A-87 and A-21. Minor equipment lists
                              should be kept for equipment costing less than $1000 with a useful life equal to or
                              longer than one year
Inventory and Labeling of      The local school district must inventory any equipment purchased with Perkins
Perkins Equipment              funds. (See Equipment Guidance on the online grant application and
                               www.schoolswork.org) Equipment is defined as In addition, all equipment must
                               be marked with a permanent marker indicating grant source, year of purchase,
                               school name and program area.
Equipment Shared with          The primary use of equipment purchased with Perkins funds should be utilized by
Disciplines other than CTE     CTE students who are enrolled in courses from one of the CTE program areas.
                               When the needs of the CTE students are fully met the equipment can be used by
                               non CTE students.
Limitation for Certain         „„SEC. 315. LIMITATION FOR CERTAIN STUDENTS.
Students                       ‗‗No funds received under this Act may be used to provide career and technical
                               education programs to students prior to the seventh grade, except that equipment
                               and facilities purchased with funds under this Act may be used by such students‖
CTE Expenses Previously        Use of Perkins funds to pay for any expense that was previously paid by the local
Paid by the Local School       school district is considered supplanting. This may include: salaries, textbooks,
District                       stipends etc.

SUPPLANTING                    ‗‗SEC. 311. FISCAL REQUIREMENTS.
                               ‗‗(a) SUPPLEMENT NOT SUPPLANT.—Funds made available under
                               this Act for career and technical education activities shall supplement,
                               and shall not supplant, non-Federal funds expended to carry out career and
                               technical education activities and tech prep program activities.


CTE Teacher and Staff          Perkins funds may support a teacher and/or staff member‘s salary, however, the
Salaries                       State has a ―three year rule‖ on salaries. A CTE related position will be funded for
                               three years only. It is the responsibility of the local board of education to sustain
                               this position after the first three years.


Interdisciplinary/Integrated   Expenses related to interdisciplinary activities/courses (i.e. CTE subject‘s team
Curriculum Program             taught with academic areas) are fundable by Perkins.
Expenses
                               Professional CTE Organization membership dues are an allowable expense as
CTE Teacher Professional       long as the membership is related to the Teachers‘ CTE program area. Costs of
Organization Memberships       membership in organizations engaged in lobbying are unallowable.
Maintenance of Equipment       Maintenance of equipment purchased with Perkins funds is allowable as long as
                               the expenditures adhere to the guidance in A-87, Attachment B, item 25
Supplies                       Costs incurred for materials, supplies, and fabricated parts necessary to carry out a
                               federal award are allowable.
CTE Program Promotional        Perkins funds cannot be used to purchase items such as mugs, T-shirts, pencils etc.
Items                          to promote CTE programs.
Administrative rule            Administration – 5% ceiling-secondary Postsecondary –MCCS office


                                ‗‗(d) ADMINISTRATIVE COSTS.—Each eligible recipient receiving funds
                               under this part shall not use more than 5 percent of the funds for administrative
                               costs associated with the administration of activities assisted under this section.

Foreign Travel                 Foreign travel- funds cannot be used for foreign travel unless a grantee receives
                               prior approval of the awarding agency- Federal DOE. Each trip requires a
                               separate approval.
Rule of Authority            Rule of authority – the regulation that is the most rigorous is the document that the
                             grantee needs to comply with. Federal Perkins requirements are the final rule
                             when in doubt
   Expenses Related to
  Career and Technical
  Student Organizations
         (CTSO)
CTSO allowable costs         funds can be spent on
                                                     leadership workshops
                                                     curriculum development
                                                     advisors
                                                     conferences in which the primary purpose is to
                                                      disseminate technical information
                                                   support of student CTE organizations that are an integral
                                                      part of the CTE instructional program
                                  Meals, meetings and conferences- costs are allowable if the primary purpose
                                   is the dissemination of technical information

                                  All travel costs including meals, mileage and lodging must follow the State
                                   of Maine guidelines for allowable costs and adhere to the Federal amounts
                                   allowed per state and county. Meal and lodging expenses are the per diem
                                   rates established by the United States General Services Administration.
                                   Further guidance can be found at
                                   www.maine.gov/osc/travel/travelfaqs.htm.

CTSO unallowable costs       funds cannot be spent on
                                                  social assemblage and social conventions
                                                  purchase of items for students personal ownership
                                                  purchase of awards
                                                  Payment of membership dues
                             Perkins funds may be used to purchase instructional supplies for CTSOs.
   Perkins Eligibility
     Requirements
CTE State Assessment         All Perkins grantees must participate in the State CTE school review or provide
                             documentation that the school was reviewed by a MDOE accepted accreditation
                             organization.
Prior Year Commitments       All required reporting from a previous year must be submitted and approved and
                             unused funds returned before any new grant funds will be awarded. Failure to
                             comply with the due dates may influence future grant awards

                             All districts must have at least one Career and Technical Education Student
Establishment of Secondary
Career and Technical         Organization (CTSO) in place by the end of the grant year.
Education Organizations
Career and Technical         All grantees are to establish an advisory board/committee to serve in an advisory
Education Advisory           capacity. The required membership and meeting requirements can be found in
Committees                   State Statue 20-A, Chapter 313
Career and Technical         All grantees are to establish a program advisory board/committee to serve in an
Education Program            advisory capacity. They are required to meet at least annually.
Advisory Committees
Live Work                   The secondary grantees are also required to hold advisory meetings and review
Cooperative Agreement       and approve their live work policy and cooperative agreement yearly.
Review                      Documentation of this review and approval in the advisory meeting minutes will
                            meet this requirement. Please submit by October 2 to Jan Cowan, Maine
                            Department of Education, State House Station #23, Augusta, Maine, 04333

      Timelines for
Administration of Perkins
            to:
Modify the Perkins Grant        Expenditures of Title I, Part C funds must be in accordance with the budget
                                approved for this project. Any requests for deviation from that budget that
                                exceed 10% or $1000 per line category must be approved by the Division of
                                Career & Technical Education prior to expenditure of funds. The online grant
                                system requires a change form be completed for any variation. These forms
                                (Project/Budget Adjustment Report) need to be completed online at the Carl
                                Perkins grant site which can be found at www.4pcamaine.org. Budget
                                adjustment requests must be submitted and approved before the expenditure
                                change can be made. If the changed expenditure is made before the approval
                                is received the cost may be the responsibility of the CTE school.

To Obligate the             The grantee must obligate or encumber all Perkins funds prior to June 30 of the
Expenditures:               current grant year. No extensions are allowable beyond that date. Encumbered
                            funds must be liquidated within 3 months of the end of year. Encumbrances must
                            be a contract, a formal and binding memorandum of agreement or a purchase
                            order.
Maine Department Of         The department has instituted a cash management system to meet federal
Administrative and          regulations regarding limitations on cash-on-hand among recipients of federal
Financial Services Cash     funds. Expenditure and cash balance reports will be required on a modified
Management Reports          quarterly basis. Further information and forms for this requirement can be
                            obtained from DAFS, Division of Finance. Failure to submit necessary reports on
                            a timely basis for any given grant may result in suspension of all grant payments
Perkins Reporting                Yearend requirements must be submitted and approved before any grantee
Requirements                        is eligible for New Year funds.
                                 The mid year PPR is due on January 15.
                                 The Financial Yearend Report and Annual PPR are due on June 30 to
                                    accommodate the new timeline.
                                 The postsecondary recipients may have a different due date to enable the
                                    system office to review and approve before submission to MDOE.
                                 The secondary documents are on the online grant system. The
                                    postsecondary documents will be provided by the MCCS office.
ATTACHMENT V

 Instruction Letters
  V-1 – Secondary
V-2 – Postsecondary
                   Attachment V-1 – Instruction Letter - Secondary
              Abridged Planning Instructions for the Carl D. Perkins Grant
                      FY09 (for funds allocated for July 1, 2008)

July 1, 2008 marks the beginning of the five year Perkins IV (P.L. 109-270) plan. The State Board
signed the Perkins IV 5 year plan in March and the plan will be submitted to the federal Office of
Vocational and Adult Education no later that April 1, 2008. We are now waiting for the feds to notify us
as to the amount of Perkins funds available to each state. Until we have the final allocation we are
sending the secondary schools (See attachment) and MCCS has sent the postsecondary schools a draft
allocation based on last year's funds. This is an estimate! The Perkins State breakout will remain the
same, 50% to secondary and 50% to postsecondary CTE schools. Administration at the local level
remains at 5%. (Administration at the postsecondary level is spent at the System level. There are no
local Perkins administration funds for the colleges of the MCCS.)
Perkins funding was decreased this year by 1.6 percent to Maine. (1.7% nationwide)

We were required to use the numbers from the FY05 census report. The change in the census years
has lead to significant increases and decreases in allocations to individual schools. A very slight change
in the poverty percentage made a significant change to the allocation per school. To try to alleviate
some of the hardship for the schools who experienced a loss in funding we have added a substantial
amount to the carryover figure for this year only. The carryover must follow the same formula and so
does not eliminate the differences but will hopefully help those who suffered the greatest reduction.
This will allow you to have somewhat of a transition to the lower funding.
I have attached the information concerning formula distribution.
Secondary Level Formula
The funds will be distributed to the local eligible recipients at the secondary level by the formula
described in the Act:
            30% of the funds will be distributed to the 26 sites in proportion to the total numbers of
               young people ages 5 through 17 determined by the U.S. Census as living in the school
               districts of the sending schools of each site; and
            70% of the funds allocated among the sites in proportion to the total numbers of young
               people ages 5 through 17 determined by the U.S. Census as living in poverty in the
               school districts of the sending schools of each site.
               www.census.gov/hhes/www/saipe/district.html.

The online grant will be open for FY09 on April 18, 2008. We will not have received the final figures
from the federal DOE so we will use the estimated figures and update if we need to when the new
figures come in. PLEASE UNDERSTAND THESE FIGURES ARE ESTIMATES. The grant will open up to
FY09. To access the FY08 for yearend requirements you will need to click on the FY08 link in the top
blue link bar.


I have attached the draft timeline for the Perkins grant. We understand this timeline is extremely tight.
We had no control over the federal timing but we still know this will be difficult to meet.


Unfortunately if you do not have your grant approved by July 1, 2008 you cannot spend the grant
funds. In the past you could use local dollars and reimburse them with the grant funds when the grant
was approved. The federal guidance we have received at several conferences has informed us that
this is no longer going to be allowed.
The program year runs from July 1 through June 30. All funds must be expended or encumbered by
purchase order and/or contract by June 30. At the end of the program year, grant funds must be
accounted for in detail on separate forms available on the online grant system. These forms must be
completed and submitted by June 30. All unexpended balances must be returned to MDOE.

No funds for the new fiscal year will be released until all previous progress and year-end reports have
been filed and approved and any unexpended balances returned.


A full set of planning instructions will be forwarded to each CTE director as soon as
possible.


There are some significant changes from the Perkins III to the Perkins IV grant, some of the more
substantial are highlighted below:
      Technical skills assessments required
          o Under the direction and guidance of CTE school directors, instructors and directors are examining
              nationally recognized skills standards and may adopt the standards and the student assessment of
              those standards. Some of the CTE programs are currently nationally certified to teach to national
              standards, and use the industry recognized national assessments to determine skill attainment.
                   Research and discuss secondary program specific Nationally Recognized Technical Skill
                       (NRTS) standards and certification
                   Identify the National and State defined skills standards in both secondary and
                       postsecondary CTE program areas
                   Certify teachers and programs to teach national skill standards
                   Research/develop/adopt secondary and postsecondary technical skills assessment
                   Develop and implement a plan to meet the federally recognized assessment standards for
                       both secondary and postsecondary CTE education

      National skill accountability pertaining to standards and assessments, defined
       Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
          o The CTE program approval process
                   A component within this process will be identifying which standards will be used to
                       guide the program and which assessments were used to determine technical skill
                       attainment. The applicants will also have to provide a plan to advance the program to
                       nationally recognized standards and assessments where they exist or state
                       certifications/licensure.
          o Maine‘s Comprehensive School Review process for career and technical programs
                   The review will include a comprehensive examination of the standards guiding the
                       programs, the assessments to be used to determine technical skill attainment and the plan
                       developed to advance the program to nationally recognized standards and assessments
                       where they exist or state certifications/licensure.
          o The local Program Advisory Committee program review.
                   Conduct a comprehensive examination of the standards guiding the programs and the
                       assessments to be used to determine technical skill attainment (national skills standards,
                       state standards, or locally developed standards).
                   Develop or review a plan to move the program to nationally recognized technical skills
                       standards and assessments where they exist or state certifications/licensure.
   •   Mandatory program advisory responsibilities
         PAC meets at least annually
        Membership must include teachers, business and industry partners, secondary and postsecondary
         constituents, students and other interested stakeholders
      Review current curriculum, suggest and approve changes to curriculum and course offerings and
         provide feedback on the success or failures of each program
      Review current program assessments to ensure that the technical skills required for the program are
         assessed and have a third party endorsement.
      Conduct a comprehensive examination of the standards guiding the programs and the assessments
         to be used to determine technical skill attainment (national skills standards, state standards, or
         locally developed standards).
      Develop or review a plan to move the program to nationally recognized technical skills standards
         and assessments where they exist or state certifications/licensure.
•   Common evaluation tool
      Maine Department of Education will require that each school develop a program evaluation tool to
         review all CTE programs within the local school on an annual basis.
•   Exploratory Programs
      Maine will research the possibility of offering exploratory CTE programs. Interest has been
         expressed by several schools to offer exploratory programs as part of a sequence of courses. An
         exploratory CTE program is a CTE program that offers a student a chance to look at several
         different CTE programs. This exploratory program then becomes a component of a sequence of
         courses of the related specific CTE programs that are offered for exploration.
•   School review- staff contribution by participating Maine review schools
      Schools that choose to be reviewed using the Maine Department of Education Comprehensive
         School Review (CSR) process are required to provide a pre-determined percentage of staff per year
         to participate in the review of other CTE schools. In order to receive Perkins IV funds schools must
         participate in either a NEASC review or CSR.
•   Apprenticeship
      Secondary-Expand pre-apprenticeship opportunities
          Require that each secondary CTE school make students aware of Pre-apprenticeship
             opportunities
          Require that each CTE school have contact with MDOL Pre-apprenticeship program
             representative each school year
      Postsecondary- expand apprenticeship opportunities
          Require that each Postsecondary CTE school make students aware of apprenticeship
             opportunities
          Require that each Postsecondary CTE school have contact with MDOL apprenticeship program
             representative each school year
•   Programs of Study
       o Perkins legislation now requires that each Local Recipient develop and implement at least one
           Program of Study. A program of study is a planned sequence of courses that integrates high
           quality core academic knowledge with technical and occupational skills and knowledge.
           Programs of study lead to an industry recognized credential or certificate at the secondary or
           postsecondary level, or a postsecondary associate or baccalaureate degree. Programs of study
           should be developed in partnership with secondary schools, postsecondary schools, employers,
           industry groups and other stakeholders to create curriculum and to support academic, technical
           and workplace standards. A program of study may include articulation, but it is not required. At
           the secondary level, academic rigor is ensured through the connections to Maine Learning Results
           (MLR) and No Child Left Behind (NCLB) accountability measures. Each secondary and
           postsecondary institution is required to have 1 program of study by July 1, 2008.
                 Attachment V-2 – Instruction Letter - Postsecondary
              Abridged Planning Instructions for the Carl D. Perkins Grant
                      FY09 (for funds allocated for July 1, 2008)

July 1, 2008 marks the beginning of the five year Perkins IV (P.L. 109-270) plan. The State Board
signed the Perkins IV 5 year plan in March and the plan will be submitted to the federal Office of
Vocational and Adult Education no later that April 1, 2008. We are now waiting for the feds to notify us
as to the amount of Perkins funds available to each state. Until we have the final allocation we are
sending the secondary schools (See attachment) and MCCS will send the postsecondary schools as
soon as Pell Awards are received, a draft allocation based on last year's funds. This is an estimate!
The Perkins State breakout will remain the same, 50% to secondary and 50% to postsecondary CTE
schools. Administration at the local level remains at 5%. (Administration at the postsecondary level is
spent at the System level. There are no local Perkins administration funds for the colleges of the
MCCS.)

Perkins funding was decreased this year by 1.6 percent to Maine. (1.7% nationwide)

For secondary we were required to use the numbers from the FY05 census report. The change in the
census years has lead to significant increases and decreases in allocations to individual schools. A very
slight change in the poverty percentage made a significant change to the allocation per school. To try
to alleviate some of the hardship for the schools who experienced a loss in funding we have added a
substantial amount to the carryover figure for this year only. The carryover must follow the same
formula and so does not eliminate the differences but will hopefully help those who suffered the
greatest reduction. This will allow you to have somewhat of a transition to the lower funding.
Secondary Level Formula
I have attached the information concerning formula distribution.
The funds will be distributed to the local eligible recipients at the secondary level by the formula
described in the Act:
            30% of the funds will be distributed to the 26 sites in proportion to the total numbers of
               young people ages 5 through 17 determined by the U.S. Census as living in the school
               districts of the sending schools of each site; and
            70% of the funds allocated among the sites in proportion to the total numbers of young
               people ages 5 through 17 determined by the U.S. Census as living in poverty in the
               school districts of the sending schools of each site.
               www.census.gov/hhes/www/saipe/district.html.
Postsecondary Level Formula
           60% - Pell Awards (reported by colleges)
           10% - Poverty Status (from U.S. Census)
           10% - TANF Recipients (from Maine Department of Health and Human Services)
           10% - Handicapped (from U.S. Census)
           10% - Minority (from U.S. Census)


The online grant will be open for FY09 on April 18, 2008. We will not have received the final figures
from the federal DOE so we will use the estimated figures and update if we need to when the new
figures come in. PLEASE UNDERSTAND THESE FIGURES ARE ESTIMATES. The grant will open up to
FY09. To access the FY08 for yearend requirements you will need to click on the FY08 link in the top
blue link bar.


I have attached the draft timeline for the Perkins grant. We understand this timeline is extremely tight.
We had no control over the federal timing but we still know this will be difficult to meet.


Unfortunately if you do not have your grant approved by July 1, 2008 you cannot spend the grant
funds. In the past you could use local dollars and reimburse them with the grant funds when the grant
was approved. The federal guidance we have received at several conferences has informed us that
this is no longer going to be allowed.
The program year runs from July 1 through June 30. All funds must be expended or encumbered by
purchase order and/or contract by June 30. At the end of the program year, grant funds must be
accounted for in detail on separate forms available on the online grant system. These forms must be
completed and submitted by June 30. All unexpended balances must be returned to MDOE.

No funds for the new fiscal year will be released until all previous progress and year-end reports have
been filed and approved and any unexpended balances returned.


A full set of planning instructions will be forwarded to each CTE director and MCCS
Perkins Coordinator as soon as possible.


There are some significant changes from the Perkins III to the Perkins IV grant, some of the more
substantial are highlighted below:
      Technical skills assessments required
          o Under the direction and guidance of CTE school directors, instructors and directors are examining
              nationally recognized skills standards and may adopt the standards and the student assessment of
              those standards. Some of the CTE programs are currently nationally certified to teach to national
              standards, and use the industry recognized national assessments to determine skill attainment.
                   Research and discuss secondary program specific Nationally Recognized Technical Skill
                       (NRTS) standards and certification
                   Identify the National and State defined skills standards in both secondary and
                       postsecondary CTE program areas
                   Certify teachers and programs to teach national skill standards
                   Research/develop/adopt secondary and postsecondary technical skills assessment
                   Develop and implement a plan to meet the federally recognized assessment standards for
                       both secondary and postsecondary CTE education

      National skill accountability pertaining to standards and assessments, defined
       Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
          o The CTE program approval process
                   A component within this process will be identifying which standards will be used to
                       guide the program and which assessments were used to determine technical skill
                       attainment. The applicants will also have to provide a plan to advance the program to
                       nationally recognized standards and assessments.
          o Maine‘s Comprehensive School Review process for career and technical programs
                   The review will include a comprehensive examination of the standards guiding the
                       programs, the assessments to be used to determine technical skill attainment and the plan
                       developed to advance the program to nationally recognized standards and assessments.
          o The local Program Advisory Committee program review.
                   Conduct a comprehensive examination of the standards guiding the programs and the
                    assessments to be used to determine technical skill attainment (national skills standards,
                    state standards, or locally developed standards).
                 Develop or review a plan to move the program to nationally recognized technical skills
                    standards and assessments.
•   Mandatory program advisory responsibilities
      PAC meets at least annually
      Membership must include teachers, business and industry partners, secondary and postsecondary
         constituents, students and other interested stakeholders
      Review current curriculum, suggest and approve changes to curriculum and course offerings and
         provide feedback on the success or failures of each program
      Review current program assessments to ensure that the technical skills required for the program are
         assessed and have a third party endorsement.
      Conduct a comprehensive examination of the standards guiding the programs and the assessments
         to be used to determine technical skill attainment (national skills standards, state standards, or
         locally developed standards).
      Develop or review a plan to move the program to nationally recognized technical skills standards
         and assessments.
•   Common evaluation tool
      Maine Department of Education will require that each school develop a program evaluation tool to
         review all CTE programs within the local school on an annual basis.
•   Exploratory Programs
      Maine will research the possibility of offering exploratory CTE programs. Interest has been
         expressed by several schools to offer exploratory programs as part of a sequence of courses. An
         exploratory CTE program is a CTE program that offers a student a chance to look at several
         different CTE programs. This exploratory program then becomes a component of a sequence of
         courses of the related specific CTE programs that are offered for exploration.
•   School review- staff contribution by participating Maine review schools
      Schools that choose to be reviewed using the Maine Department of Education Comprehensive
         School Review (CSR) process are required to provide a pre-determined percentage of staff per year
         to participate in the review of other CTE schools. In order to receive Perkins IV funds schools must
         participate in either a NEASC review or CSR.
•   Apprenticeship
      Secondary-Expand pre-apprenticeship opportunities
          Require that each secondary CTE school make students aware of Pre-apprenticeship
             opportunities
          Require that each CTE school have contact with MDOL Pre-apprenticeship program
             representative each school year
      Postsecondary- expand apprenticeship opportunities
          Require that each Postsecondary CTE school make students aware of apprenticeship
             opportunities
          Require that each Postsecondary CTE school have contact with MDOL apprenticeship program
             representative each school year
•   Programs of Study
       o Perkins legislation now requires that each Local Recipient develop and implement at least one
           Program of Study. A program of study is a planned sequence of courses that integrates high
           quality core academic knowledge with technical and occupational skills and knowledge.
           Programs of study lead to an industry recognized credential or certificate at the secondary or
           postsecondary level, or a postsecondary associate or baccalaureate degree. Programs of study
           should be developed in partnership with secondary schools, postsecondary schools, employers,
           industry groups and other stakeholders to create curriculum and to support academic, technical
           and workplace standards. A program of study may include articulation, but it is not required. At
           the secondary level, academic rigor is ensured through the connections to Maine Learning Results
(MLR) and No Child Left Behind (NCLB) accountability measures. Each secondary and
postsecondary institution is required to have 1 program of study by July 1, 2008.
ATTACHMENT W

  Skill Attainment
                                   Attachment W – Skill Attainment

    CHANGES MADE ON THE PERKINS IV PLAN NARRATIVE FROM STATE BOARD
                 PRELIMINARY TO FINAL PRESENTATION.

National skill accountability pertaining to standards and assessments, defined.
Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
     The CTE program approval process,
           o A component within this process will be identifying which standards will be used to guide the
               program and which assessments were used to determine technical skill attainment. The
               applicants will also have to provide a plan to advance the program to nationally recognized
               standards and assessments where they exist or state certifications/licensure.

        Maine‘s Comprehensive School Review process for career and technical programs
            o The review will include a comprehensive examination of the standards guiding the programs, the
                assessments to be used to determine technical skill attainment and the plan developed to advance
                the program the program to nationally recognized standards and assessments where they exist or
                state certifications/licensure.

        The local Program Advisory Committee program review.
            o Conduct a comprehensive examination of the standards guiding the programs and the assessments
                 to be used to determine technical skill attainment (national skills standards, state standards, or
                 locally developed standards).
            o Develop or review a plan to move the program to nationally recognized technical skills standards
                 and assessments where they exist or state certifications/licensure. Program advisory committees
                 are now required to review the plan and the skill attainment assessments of each program.


                  A. where they exist or state certifications or licensure. Program advisory committees are now
                     required to review the plan and the skill attainment assessments of each program.

        Page 49

                ii. Promote continuous improvement in technical skill attainment
Maine is moving toward implementing national standards for all CTE programs for which there are national
standards. Maine will explore a process to update State standards in program areas for which there are no national
standards. As with academic achievement, the Department of Education will continue to provide professional
development and technical assistance to the field to help schools improve curriculum, instruction and assessment.

The data from the national or third party technical skill assessment is reported to the Maine Department of
Education by each school on the EFV 116 in the summer after the students leave the program in the reporting
year.

Should the program not have a National of third party technical skill assessment the students who complete at
least 80% of the standards guiding the State approved program and leave secondary education during the
reporting year will be reported to the Maine Department of Education on the EFV 116.

Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
     The CTE program approval process,
     Maine‘s Comprehensive School Review process for career and technical programs
     The local Program Advisory Committee program review.
All CTE programs must go through a program approval process and be approved before they are eligible for state
subsidy or federal funding. There are many components to the process including instructional practices, safety
evaluation and other educational requirements. A component within this process will be identifying which
standards will be used to guide the program and which assessments were used to determine technical skill
attainment. The applicants will also have to provide a plan to advance the program to nationally recognized
standards and assessments where they exist or state certifications/licensure.

Maine has developed a Comprehensive School Review process which evaluates and ensures continuous school
improvement. The Secondary CTE Comprehensive School Review process is built on 11 standards which schools
use to engage in a self-study process. Maine Department of Education CTE staff affirm the self-study in a 4-day
on site visit using a process of interviews and review of documentation. A report on the site visit is made available
to the school, along with a 2-year and a 5-year follow-up. The review will include a comprehensive examination
of the standards guiding the programs, the assessments to be used to determine technical skill attainment and the
plan developed to advance the program the program to nationally recognized standards and assessments where
they exist or state certifications/licensure.

Maine will increase the requirements for the local program advisory committees (PAC). This will encourage and
promote stronger ties between the CTE training programs and industry. As a condition of Perkins funding
secondary PACs must adhere to the following guidelines:
                 PAC meets at least annually- with a suggestion to meet during each semester.
                 Membership must include teachers, business and industry partners, secondary and
                    postsecondary constituents, students and other interested stakeholders
                 Review current curriculum, suggest and approve changes to curriculum and course offerings
                    and provide feedback on the success or failures of each program
                 Conduct a comprehensive examination of the standards guiding the programs and the
                    assessments to be used to determine technical skill attainment (national skills standards, state
                    standards, or locally developed standards).
                 Develop or review a plan to move the program to nationally recognized technical skills
                    standards and assessments where they exist or state certifications/licensure.



      Page 35-same language change
                                      Technical Skill Attainment

Carl Perkins Performance Measure(s)
      Secondary:
             2S1 Technical Skill Attainment
             (Technical skill assessments that are aligned with industry-recognized
             standards, if available and appropriate, during the reporting year.)

        Postsecondary
              1P1 Technical Skill Attainment
              (Technical skill assessments that are aligned with industry-recognized
              standards, if available and appropriate, during the reporting year.)

Equipment acquisition, teacher certification and new program start up will help to keep Maine CTE
current with industry needs and national skill standards. As CTE teachers align curriculum with
nationally recognized skills standards, there will be the requirement in many of the skills areas that the
programs meet certification standards and that the teachers are certified in their program area and
certified to teach and assess the standards. This presents concerns for directors and advisory boards of
Maine‘s CTE schools, as the costs of equipment to meet program certification requirements and the cost
of supporting an instructor in achieving industry certification may be a burden on the school. With this
in mind, Maine CTE will continue the discussions and seek ways to support the certification of
programs and teachers in industry skills standards.
National and State defined skills standards
It is a goal for CTE in Maine to have all CTE students in Maine working toward National and/or State
defined skills standards. To accomplish this goal Maine will:

                  Research and discuss secondary program specific Nationally Recognized Technical
                   Skill (NRTS) standards and certification
                  Identify the National and State defined skills standards in both secondary and
                   postsecondary CTE program areas
                  Certify teachers and programs to teach national skill standards
                  Research/develop/adopt secondary and postsecondary technical skills assessment
                  Develop and implement a plan to meet the federally recognized assessment standards
                   for both secondary and postsecondary CTE education

Skill assessments
During the Maine Perkins five-year State Plan, the Maine Administrators of Career and Technical
Education (MACTE) and the Maine Department of Education CTE team will determine appropriate
technical skill standards and assessments for secondary CTE students.
Maine is moving toward implementing national standards for all CTE programs for which there are
national standards. Maine will explore a process to update State standards in program areas for which
there are no national standards. As with academic achievement, the Department of Education will
continue to provide professional development and technical assistance to the field to help schools
improve curriculum, instruction and assessment. Discussions will include postsecondary instructors,
whenever possible, as most of the standards are too comprehensive to be taught exclusively at the high
school level. (SEC. 2. PURPOSE (4))

The data from the national or third party technical skill assessment is reported to the Maine Department
of Education by each school on the EFV 116 in the summer after the students leave the program in the
reporting year.

Should the program not have a National of third party technical skill assessment the students who
complete at least 80% of the standards guiding the State approved program and leave secondary
education during the reporting year will be reported to the Maine Department of Education on the EFV
116.

Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
    The CTE program approval process,
    Maine‘s Comprehensive School Review process for career and technical programs
    The local Program Advisory Committee program review.

All CTE programs must go through a program approval process and be approved before they are eligible
for state subsidy or federal funding. There are many components to the process including instructional
practices, safety evaluation and other educational requirements. A component within this process will
be identifying which standards will be used to guide the program and which assessments were used to
determine technical skill attainment. The applicants will also have to provide a plan to advance the
program to nationally recognized standards and assessments where they exist or state
certifications/licensure.


Maine has developed a Comprehensive School Review process which evaluates and ensures continuous
school improvement. The Secondary CTE Comprehensive School Review process is built on 11
standards which schools use to engage in a self-study process. Maine Department of Education CTE
staff affirm the self-study in a 4-day on site visit using a process of interviews and review of
documentation. A report on the site visit is made available to the school, along with a 2-year and a 5-
year follow-up. The review will include a comprehensive examination of the standards guiding the
programs, the assessments to be used to determine technical skill attainment and the plan developed to
advance the program the program to nationally recognized standards and assessments where they exist or
state certifications/licensure.

Maine will increase the requirements for the local program advisory committees (PAC). This will
encourage and promote stronger ties between the CTE training programs and industry. As a condition
of Perkins funding secondary PACs must adhere to the following guidelines:
                PAC meets at least annually- with a suggestion to meet during each semester.
                Membership must include teachers, business and industry partners, secondary and
                  postsecondary constituents, students and other interested stakeholders
                Review current curriculum, suggest and approve changes to curriculum and course
                  offerings and provide feedback on the success or failures of each program
                Conduct a comprehensive examination of the standards guiding the programs and the
                  assessments to be used to determine technical skill attainment (national skills
                  standards, state standards, or locally developed standards).
                Develop or review a plan to move the program to nationally recognized technical
                  skills standards and assessments where they exist or state certifications/licensure.

     Page 76

     3. Identify the valid and reliable measurement definitions and approaches that State will
        use for each of the core indicators of performance and describe how the State‟s proposed
        definitions and measures are valid and reliable.

Part C. Accountability Forms

I.   Student Definitions

     A. Secondary Level

      CTE Participant: A secondary student who has completed at least 10% of the
      standards guiding a State approved career and technical education (CTE) program
      CTE Concentrator: A secondary student who has completed at least 50% of the
      standards guiding a State Approved career and technical education program.
      CTE Completer: A secondary student who has completed at least 80% of the
      standards guiding a State approved career and technical education (CTE) program.
      B. Postsecondary/Adult Level

       CTE Participant: A postsecondary/adult student who has earned one (1) or more
       credits in any CTE program area (both academic and technical skill credits).
       CTE Concentrator: A postsecondary/adult student who as of Fall term of the
       measurement year: (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.


CARS measurement definitions are included in the FAUPL which is attached.

The national tests that Maine uses to identify academic achievement at the secondary level have been reviewed
for validity and reliability by the vendors of the national tests. The SAT/Maine Initiative, which every 11th grade
student is required to take, was reviewed for alignment with Maine‘s learning standards, the ―Learning Results-
Parameters for Essential Instruction‖.

Some of Maine‘s secondary and postsecondary CTE programs are aligned with nationally recognized skills
standards.

The secondary technical skills assessments used by the organizations that offer national skill tests also have been
reviewed for validity and reliability, as have the NOCTI tests. Should Maine identify other skill assessments, the
validity and reliability of those will be established.

The data from the national or third party technical skill assessment is reported to the Maine Department of
Education by each school on the EFV 116 in the summer after the students leave the program in the reporting
year.

Should the program not have a National of third party technical skill assessment the students who complete at
least 80% of the standards guiding the State approved program and leave secondary education during the
reporting year will be reported to the Maine Department of Education on the EFV 116.

Student opportunities for the demonstration of CTE technical skill attainment will be evaluated through:
     The CTE program approval process,
     Maine‘s Comprehensive School Review process for career and technical programs
     The local Program Advisory Committee program review.

All CTE programs must go through a program approval process and be approved before they are eligible for state
subsidy or federal funding. There are many components to the process including instructional practices, safety
evaluation and other educational requirements. A component within this process will be identifying which
standards will be used to guide the program and which assessments were used to determine technical skill
attainment. The applicants will also have to provide a plan to advance the program to nationally recognized
standards and assessments where they exist or state certifications/licensure.

Maine has developed a Comprehensive School Review process which evaluates and ensures continuous school
improvement. The Secondary CTE Comprehensive School Review process is built on 11 standards which schools
use to engage in a self-study process. Maine Department of Education CTE staff affirm the self-study in a 4-day
on site visit using a process of interviews and review of documentation. A report on the site visit is made available
to the school, along with a 2-year and a 5-year follow-up. The review will include a comprehensive examination
of the standards guiding the programs, the assessments to be used to determine technical skill attainment and the
plan developed to advance the program the program to nationally recognized standards and assessments where
they exist or state certifications/licensure.

Maine will increase the requirements for the local program advisory committees (PAC). This will encourage and
promote stronger ties between the CTE training programs and industry. As a condition of Perkins funding
secondary PACs must adhere to the following guidelines:
                 PAC meets at least annually- with a suggestion to meet during each semester.
                 Membership must include teachers, business and industry partners, secondary and
                    postsecondary constituents, students and other interested stakeholders
                 Review current curriculum, suggest and approve changes to curriculum and course offerings
                    and provide feedback on the success or failures of each program
                 Conduct a comprehensive examination of the standards guiding the programs and the
                    assessments to be used to determine technical skill attainment (national skills standards, state
                    standards, or locally developed standards).
                 Develop or review a plan to move the program to nationally recognized technical skills
                    standards and assessments where they exist or state certifications/licensure where they exist
                    or state certifications/licensure.

				
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