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2009 Equipment Grant Award Administration

This Management Bulletin (MB) updates information sent to grant recipients via e-mail on July 6, 2009, which addresses a large number of administrative questions related to the federal stimulus equipment assistance grants, and alerts School Food Authorities (SFAs) to the federal requirements related to these grant funds. The Obama Administration, the Governor’s Office, and the California Department of Education (CDE) are closely monitoring the expenditure of these stimulus grants. Therefore, it is critically important that every SFA receiving a grant comply completely with the equipment requirements. Doing so will not only ensure program integrity, but will also increase California’s chances for additional equipment grant funding in the future.

Receipt of Grant Award Funding

• You should have received via First Class mail the Grant Award Notification (GAN) [Form #AO-400] Packet.
• It is important that you sign and return the GAN within ten days of receipt. Funding will not be issued until we receive this form. Ninety percent of funds will be disbursed upon receipt of the GAN with the remaining ten percent disbursed when sponsors provide their final purchase documentation to the CDE.

Determining the Equipment to Purchase

• Included in the GAN is an equipment budget for each site that specifies the equipment you are approved to purchase. It is imperative that you only purchase the equipment specified as approved for each site as detailed in the budget.
• Purchase all equipment as soon as possible, but no later than June 30, 2010 (we awarded points to SFAs that stated they would purchase requested equipment within three months).
• Retain all receipts, purchase orders, proof of purchases, and be able to supply them upon request.

SFAs Receiving Partial Funding Due to Enrollment Caps

• Based on the enrollment cap outlined in the grant application, some SFAs received partial funding for requested equipment (e.g., $10,000 towards a walk-in freezer costing $40,000).
• SFAs that receive partial funding for a piece of equipment must fund the difference from another source of SFA funding (e.g., reserves, meal reimbursement, etc.).
• If an SFA is unable to provide the additional funding to purchase the specified equipment, the SFA must notify and return the funding to the CDE by September 1, 2009, or sooner, so the CDE can reallocate the money to the next SFA whose equipment request had a combined total score of 90 points (this may result either in an SFA being awarded funds for another piece of requested equipment or an entirely different SFA receiving funding).
• It is critical that SFAs notify the CDE as soon as possible so the CDE can award the funding to another SFA.
• All funds not encumbered by either the SFA or the CDE by September 30, 2009, must be returned to the United States Department of Agriculture (USDA).

Process for Excess Grant Funds or Changes in Equipment Purchase Price

• It is possible that the actual cost incurred in purchasing the awarded equipment may be either higher or lower than the amount awarded for that piece of equipment. The federal government does not allow SFAs to use any ‘excess’ grant funds awarded to one piece of equipment to cover the ‘shortage’ of funding awarded to another piece of equipment.
• If the actual cost incurred in purchasing a piece of awarded equipment is lower than the amount awarded for that equipment as listed on the budget, it is critical that SFAs notify the CDE of this, and immediately return the difference so that the CDE can reallocate the money to the next SFA whose equipment request had a combined total score of 90 points (this may result either in an SFA being awarded funds for another piece of requested equipment, or another SFA being awarded funds).
• It is critical that SFAs notify the CDE as soon as possible so the CDE can award the funding to another SFA.
• All funds not encumbered by either the SFA or the CDE by September 30, 2009, must be returned to the United States Department of Agriculture (USDA).
• SFAs may not use grant funds for purchases completed prior to the date the funds were awarded.

Unexpended Funds

• Notify the CDE of any unexpended funds immediately, but no later than September 1, 2009, so that the CDE may award the funds to other SFAs.
• Return unexpended funds no later than September 1, 2010.

Encumbering Funds and Purchasing Deadlines

• Encumber all equipment grant funding by September 30, 2009.
• Final payments from the CDE for equipment should be distributed as soon as possible, but no later than September 30, 2010. If an SFA is unable to make its final equipment payments by June 30, 2010, notify the CDE before June 30, 2010, to enable the CDE to close out the grant in a timely manner.

If you have any questions regarding this MB, please contact Donna Reedy, School Nutrition Program Specialist, School Nutrition Programs Unit at 916-327-5866, or e-mail equipmentgrant@cde.ca.gov.