Adult Education Office
Coordinated Student Support and Adult Education Division
Subject: Adult Education and Family Literacy Act Program Income and Fees
Authority: Education Department General Administrative Regulations (EDGAR): 34 Code of Federal Regulations (CFR) 80.25(b); 34 CFR 80.25(g)2; and 34 CFR 76.534.
California Education Code (EC) sections 52612(a) and 52612(b).
Date: July 31, 2013
District Superintendents and Adult Education and Family Literacy Act Grantees
This Management Bulletin provides guidance to adult schools and Workforce Investment Act (WIA), Title II grant recipients who charge fees for participation in Adult Education and Family Literacy Act (AEFLA)-funded services.
In a recent review of the California Department of Education (CDE) Adult Education Office (AEO), the Office of Vocational and Adult Education (OVAE) advised the AEO to develop policies and disseminate guidance to adult school administrators and AEFLA grantees on the subject of tracking and reporting student fees.
Federal Grant Requirements
Program Income (Federal statute)
Program income is defined as gross income received by the grantee directly generated by a grant-supported activity, or earned only as a result of the grant agreement during the grant period (Title 34 Code of Federal Regulations [34 CFR] Section 80.25[b]). During the grant period is the time between the effective date of the award and the ending date of the award reflected in the final financial report. Additionally, 34 CFR, Section 80.25(g)(2) has outlined additional options so that:
- Funds earned may be added to the grant and used for the purposes and under the conditions of the grant agreement.
- Local providers charging fees must use the program income generated by federal adult education funds for allowable costs to the federal adult education program.
The AEFLA grant award stipulates that: fees established by local programs are (1) necessary and reasonable and (2) do not impose a barrier to the participation of disadvantaged persons that the program was designed to serve.
Local programs are prohibited from counting tuition and fees collected from students toward meeting matching, cost-sharing, or MOE requirements of a program. (34 CFR, Section 76.534)
California Statutory Requirement
In January 2012, the California Legislature changed the EC and allowed local educational agencies (LEA) to charge fees for classes that previously were classified as academic and subsidized by state apportionment. The LEAs may now, but are not required to, charge the following fees for adult learners:
- Fees for any classes except those in elementary subjects and classes for which high school credit is granted when taken by a person not holding a high school diploma (EC Section 52612[a]).
- Fees for adult classes in English and citizenship may be charged through July 1, 2015 (EC Section 52612[b]).
Evidence of Compliance [California Requirement]: Beginning in Fiscal Year 2013
- All agencies that receive WIA, Title II funds will develop fee policies for governing board approval on the condition they meet the criteria described above. Programs that do not charge fees are not required to develop a fee policy.
- Programs will submit quarterly Expenditure Claim Reports that document:
- The purpose of fees collected
- The total amount of fees collected
- The amount expended
Financial records of fees collected and expended, as well as board approved policies, will be reviewed by the AEO annually and as part of the desk monitoring and on-site review process.
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.