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Management Bulletin AEFLA-01-2013

Provides guidance regarding the federal Supplement Not Supplant rule to adult education programs receiving Adult Education and Family Literacy Act (AEFLA) grant funds.
Adult Education Office
Coordinated Student Support and Adult Education Division

Subject: Federal Supplement Not Supplant Rule and Policy to  Monitor Compliance

Number: AEFLA-01-2013

Authority: Education Department General Administrative Regulations (EDGAR) 34 Code of Federal Regulations (CFR) 80.40 and CFR 80.42(b)(4). 

Adult Education and Family Literacy Act (AEFLA) Section 241(a).

California Education Code (EC) sections 41020 and 35254.

Date: July 31, 2013


District Superintendents and Adult Education and Family Literacy Act Grantees


This Management Bulletin provides guidance regarding the federal Supplement Not Supplant rule to adult education programs receiving AEFLA grant funds.


Section 241(a) of the AEFLA requires that federal funds made available for adult education and literacy activities under this subtitle shall supplement and not supplant other state or local public funds expended for adult education and literacy activities.

Federal Grant Requirements

As specified in EDGAR 34 CFR Section 80.42(b)(4), agencies receiving federal funds must retain auditable programmatic and fiscal records for a minimum of three years after the submission of the last expenditure report for the period (usually June 30 of each year). The programmatic and fiscal records must clearly demonstrate the supplementary nature of the funds and activities.

California Statutory Requirement

EC Section 41020

Supplement Not Supplant

Adult education AEFLA grantees are reminded that state and local funds used for adult education and literacy activities cannot be replaced with federal funds. This includes, but is not limited to, paying for services, staff, programs, or materials. If grantees reduce the amount of state funding they are spending for adult education, there must be a proportional decrease in federal funds expended for adult education.

AEFLA grantees are required to demonstrate that supplanting is not taking place.

Monitoring of Subgrantees

EDGAR 34 CFR 80.40 requires the state (grantee) to ensure that agencies (subgrantees) are using federal awards for authorized activities in compliance with the laws, regulations, and provisions of contracts or grant agreements and that performance goals are achieved.

Monitoring to ensure compliance with the Supplement Not Supplant rule can include site visits, desk monitoring, and onsite review of records and reports. In an effort to provide guidance as part of the monitoring process, the state will:
  • Periodically compare actual expenditure reports with individual agency budgets
  • Ensure that actual expenses are reasonable, allocable, allowable, and consistently charged
  • Require agencies to correct mischarges within 45 days of expenditure report
  • Ensure that prior approvals are obtained when required

If you have questions regarding this subject, please contact your assigned Regional Consultant in the Adult Education Office, Coordinated Student Support and Adult Education Division, by phone at 916-322-2175.

Questions:   Adult Education Office | 916-322-2175
Last Reviewed: Thursday, June 9, 2016
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