Florida Department of Education
Office of Early Learning
Program Guidance 240.05
Prior Approval Guidelines
OF INTEREST TO
The Office of Early Learning (OEL, the Office), Early Learning Coalitions (ELCs), and other direct
subrecipients of OEL implementing federal and state early learning programs, such as the School
Readiness Program and the Voluntary Prekindergarten Education (VPK) Program.
SUBJECT
Obtaining written prior approval from OEL to incur costs related to selected items and administrative
requirements.
PURPOSE / SCOPE
To establish program guidance (administrative policy) for obtaining approval for administrative
requirements and selected cost items that are only allowable with prior written approval from the
awarding department.
DEFINITIONS
Prior Written Approval
Written approval by an “authorized official” evidencing prior consent before a recipient undertakes
certain activities or incurs specific costs¹.
Authorized Official
For purposes of this guidance, the OEL Financial Administration and Budget Services Manager and/or
his/her delegate is the authorized official.
BACKGROUND AND UNDERLYING FEDERAL POLICY
This guidance clarifies and replaces the previous OEL Prior Approval Guidance. The Office of
Management and Budget (OMB) Uniform Grant Guidance (UGG) and Health and Human Services (HHS)
regulations establish cost principles and standards for determining allowable activities and costs for
federal awards carried out through grants, cost reimbursement contracts, and other agreements.
Some administrative requirements and cost items are allowable only with prior approval from the
awarding agency.
AUTHORITY
2 C.F.R. Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards. 45 C.F.R. Part 75 – U.S. Department of Health and Human Services (HHS)
Administrative Regulations
STATE GUIDANCE
Coalitions and other subrecipients must follow the applicable OMB Uniform Grant Guidance (UGG) and
HHS administrative regulations pertaining to prior approval for determining when prior written
approval must be obtained from OEL.
250 MARRIOTT DRIVE • TALLAHASSEE, FL 32399 • 850-717-8550 • Toll Free 866-357-3239 • www.FloridaEarlyLearning.com
OEL 240.05 – PRIOR APPROVAL GUIDELINES
To streamline the approval process, OEL is providing the following guidance:
•
Instructions for electronically submitting the request form(s) to OEL staff.
•
The timeline for OEL staff to review requests.
•
The process for OEL to notify ELCs via email of final decisions.
OEL’s granting of prior approval is based on the limited information submitted with the request as
justification for the proposed expenditure or action. In the event that the actual expenditure or action
is not in accordance with the facts presented or OMB and HHS requirements, OEL may question or
disallow the expenditure. Factors that may be considered by a monitor or auditor include, but are not
limited to the following:
•
Inadequate documentation;
•
Failure to follow internal (local), state, or federal policies or procedures;
•
Expenditure is determined either not necessary or not reasonable; or
•
Non-compliance with applicable federal or state laws or regulations.
This guidance material, including the request forms (Attachments 1 and 2), will be made available
online.
Approval for Selected Cost Items
Under any given Federal award, the reasonableness and allocability of certain items of costs may be
difficult to be determined. In order to avoid subsequent disallowance or dispute based on
unreasonableness or non-allocability, coalitions and other contracted entities should obtain the prior
written approval from OEL of the incurrence of special or unusual costs. As such, each requestor should
complete and submit the “Prior Approval Request Form.” Cost estimates based on the data available to
the requestor at the time of submission should be used to complete the approval request form. A list
of the selected cost items and administrative requirements are disclosed in this OEL guidance
document. Each requestor should follow the procedures described as follows:
1. Complete the Prior Approval Request Form. An appropriate member of the ELC management
team should review, approve, and authorize the request prior to its submission to OEL.
2. Submit the completed request form. An electronic version of the Approval Request packet
should be submitted to the following address: [email protected].
•
Electronic signature(s) have been deemed acceptable documentation to initiate this
process. In place of an electronic signature, an e-mail transmittal will be accepted.
3. OEL will establish a five working-day window to respond to submitted Prior Approval Request
Forms from the date all information is received by OEL. OEL’s response will be (1) Approved (2)
Declined or (3) Additional information is required.
•
Note: An exception to the proposed response time will be made for requests requiring
substantial research by the office or where Federal approval may be required. You will
be notified by email if additional processing time is required.
2
OEL 240.05 – PRIOR APPROVAL GUIDELINES
•
If an initial submitted request form is incomplete, OEL will return it to the requestor
with a request for the missing information. You will be notified by email if additional
information is required to process your request.
4. Notification by email or letter will be provided to you once a final decision (APPROVE/DECLINE)
is reached.
5. For the equipment and other capital expenditures cost item, prior approval allows the
requestor to expense the purchase in the year of acquisition rather than recover the cost over
the useful life of the capital acquisition. Any acquisition that will be capitalized for financial
statement purposes requires prior approval for grant reporting purposes. For the equipment
and other capital expenditures cost item, prior approval must be requested for all items that
meet the lesser of the requestor’s capitalization threshold or $5,000. Acquisitions or creation of
software applications that meet the capitalization requirements of generally accepted
accounting principles also require prior approval. Items to be purchased where a prior approval
is required must be supported by an appropriate quote(s) received from qualified vendors.
Documentation
Retain clear supporting documentation for all costs associated with prior approval requests in order to
establish that the expenditure •
•
•
•
Meets the cost principles (is necessary and reasonable for proper and efficient performance
and administration of the grant);
Is authorized or not prohibited under federal, state, or local laws or regulations;
Conforms to any limitations or exclusions set forth in the Uniform Guidance, federal laws, terms
and conditions of the federal award, or other governing regulations as to types or amounts of
cost items; and
Is consistent with policies, regulations and procedures that apply.
OEL may request additional justification, especially if the proposed purchase is of large quantity or
amount.
Cost Items Requiring Prior Approval
As provided in 45 CFR § 75.407 and 2 CFR § 200.407, the reasonableness and allocability of certain
items of costs may be difficult to determine. In order to avoid subsequent disallowance or dispute
based on unreasonableness or non-allocability, coalitions and other contracted entities are encouraged
to seek OEL written approval in advance of the incurrence of special or unusual costs. Both Section
200.407 of 2 CFR and Part 75.407 of 45 CFR - Prior Written Approval (Prior Approval) - provide Federal
agencies and non-Federal entities with a one-stop comprehensive list of the circumstances under
which non-Federal entities should seek prior approval.
The absence of prior written approval on any element of cost will not, in itself, affect the
reasonableness or allocability of that element, unless prior approval is specifically required for
allowability as described under certain circumstances in the following sections of 2 CFR § 200.407 and
parts of 45 CFR § 75.407:
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OEL 240.05 – PRIOR APPROVAL GUIDELINES
Item
Reference/Citation
Description
Is annual
Approval
Available?
Compensation –
Personal Services
2 CFR § 200.430(c),
Alternative proposal for personnel expense
and 200.430(i)(6) and documentation based on outcomes and
(7); 45 CFR § 75.430
milestones for program performance.
Yes
Compensation –
Fringe Benefits
2 CFR §
200.431(i)(2)(ii); 45
CFR § 75.431(i)(2)(ii)
No(1)
Compensation –
Fringe Benefits
Severance payments to foreign nationals
employed by the non-federal entity outside
2 CFR § 200.431(i)(4); the U.S., to the extent that the amount
45 CFR § 75.431(i)(4) exceeds the customary or prevailing
practices for the non-federal entity in the
U.S.
No(1)
Compensation –
Fringe Benefits
Severance payments to foreign nationals
employed by the non-federal entity outside
2 CFR § 200.431(i)(5); the U.S. due to the termination of the
45 CFR § 75.431(i)(5) foreign national as a result of the closing of,
or curtailment of activities by, the nonfederal entity in that country.
No(1)
Compensation –
Fringe Benefits
2 CFR §
200.431(g)(6)(ii); 45
CFR § 75.431
(g)(6)(ii),
Pension costs funded after the six month
period (or a later period agreed to by the
cognizant agency for indirect costs) are
allowable in the year funded.
No(1)
Compensation –
Fringe Benefits
2 CFR §
200.431(h)(2); 45
CFR § 75.431(h)(2)
Post-Retirement Health Plans costs funded
after the six month period (or a later period
agreed to by the cognizant agency) are
allowable in the year funded.
No(1)
Cost Sharing or
Matching
2 CFR § 200.306(c);
45 CFR § 75.306©
Unrecovered indirect costs may be included
as part of cost sharing or matching.
No(1)
Direct Costs
2 CFR § 200.413(c);
45 CFR § 75.413
Direct charging of administrative and
clerical staff salaries based on our current
use of OCAs to “direct charge.”
Yes
2 CFR § 200.438; 45
CFR § 75.438
Costs of entertainment, including
amusement, diversion, and social activities
and any associated costs that have a
programmatic purpose. More restrictive
state rules apply – none are allowed.
No(1)
Entertainment
Costs
Costs of abnormal or mass severance pay.
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OEL 240.05 – PRIOR APPROVAL GUIDELINES
Item
Reference/Citation
Description
Is annual
Approval
Available?
Equipment
Encumber the title of property acquired
2 CFR §
under a federal award. This will be required
200.313(a)(2); 45 CFR only for assets with value greater than
§ 75.313
$5,000, based on FDOE Green Book
instructions provided at state level.
No(1)
Equipment
2 CFR § 200.313(e);
45 CFR § 75.313
Instructions for disposition of equipment
acquired under a federal award that is no
longer needed for the original project or
program or for other activities currently or
previously supported by a federal awarding
agency. This will be required only for assets
with value greater than $5,000, based on
FDOE Green Book instructions provided at
state level.
No(1)
Equipment and
Other Capital
Expenditures
2 CFR §
200.439(b)(1); 45
CFR § 75.439
Direct charge capital expenditures for
general purpose equipment, buildings and
land.
No(1)
Equipment and
Other Capital
Expenditures
2 CFR §
200.439(b)(2); 45
CFR § 75.439
Capital expenditures for special purpose
equipment.
No(1)
Equipment and
Other Capital
Expenditures
2 CFR §
200.439(b)(3); 45
CFR § 75.439
Capital expenditures for improvements to
land, buildings, or equipment which
materially increase their value or useful life.
No(1)
Exchange Rates
2 CFR § 200.440(a);
45 CFR § 75.440
Cost increases for fluctuations in exchange
rates which results in the need for
additional federal funding.
No(1)
Fines, Penalties,
Damages and
Other
Settlements
2 CFR § 200.441; 45
CFR § 75.441
Costs resulting from non-Federal entity
violations of, alleged violations of, or failure
to comply with, Federal, state, tribal, local
or foreign laws and regulations.
No(1)
Fixed Amount
Awards
2 CFR §
200.201(b)(5); 45
CFR § 75.201
paragraph (b)(5)
Changes in principal investigator, project
leader, project partner, or scope of effort.
No(1)
Fixed Amount
Subawards
2 CFR § 200.332; 45
CFR § 75.332
Provide subawards based on fixed amounts
up to the Simplified Acquisition Threshold,
provided that the subawards meet the
No(1)
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OEL 240.05 – PRIOR APPROVAL GUIDELINES
Item
Reference/Citation
Description
Is annual
Approval
Available?
requirements for fixed amount awards in
§200.201.
Fund Raising and
Investment
Management
Costs
2 CFR § 200.442(a);
45 CFR § 75.442
Fund raising costs for the purposes of
meeting the Federal program objectives.
No(1)
Goods or Services
for Personal Use
2 CFR § 200.445(b);
45 CFR § 75.445
Direct costs of housing (e.g., depreciation,
maintenance, utilities, furnishings, rent),
housing allowances and personal living
expenses.
No(1)
Insurance and
Indemnification
2 CFR §
200.447(b)(2); 45
CFR § 75.447
Costs of insurance or of contributions to any
No(1)
reserve covering the risk of loss of, or
damage to, federal government property.
Intangible
Property
2 CFR § 200.315(a);
45 CFR § 75.315
Encumber the title of property acquired
under a federal award.
No(1)
Memberships,
Subscriptions,
and Professional
Activity Costs,
Paragraph (c)
2 CFR § 200.454(c) ;
45 CFR § 75.454
Costs of membership in any civic or
community organization.
Yes
2 CFR § 200.455; 45
CFR § 75.455
Costs such as incorporation fees, brokers'
fees, fees to promoters, organizers or
management consultants, attorneys,
accountants, or investment counselor,
whether or not employees of the nonFederal entity in connection with
establishment or reorganization of an
organization.
No(1)
2 CFR § 200.456; 45
CFR § 75.456
Direct costs for items such as stipends or
subsistence allowances, travel allowances,
and registration fees paid to or on behalf of
participants or trainees (but not employees)
in connection with conferences, or training
projects.
Yes
Organization
Costs
Participant
Support Costs
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OEL 240.05 – PRIOR APPROVAL GUIDELINES
Item
Reference/Citation
Description
Is annual
Approval
Available?
Pre-award Costs
2 CFR § 200.458; 45
CFR § 75.458
Costs incurred prior to the effective date of
the federal award directly pursuant to the
negotiation and in anticipation of the
federal award where such costs are
necessary for efficient and timely
performance of the scope of work.
Program Income
2 CFR §
200.307(e)(2); 45
CFR § 75.307
Program income may be added to the
award.
No(1)
Program Income
2 CFR §
200.307(e)(3); 45
CFR § 75.307
Program income may be used to meet the
cost sharing or matching requirement of the
federal award.
No(1)
Real Property
2 CFR § 200.311(c);
45 CFR § 75.318(c)
Obtain disposition instructions for real
property acquired or improved under a
federal award is no longer needed for the
originally authorized purpose.
No(1)
Rearrangement
and Reconversion
Costs
2 CFR § 200.462(a);
45 CFR § 75.462
Direct cost for special arrangements and
alterations costs incurred specifically for a
federal award.
No(1)
Revision of
Budget and
Program Plans
2 CFR § 200.308(c);
45 CFR § 75.308
Listed program or budget-related changes.
No(1)
Selling and
Marketing Costs
2 CFR § 200.467; 45
CFR § 75.467
Direct costs of selling and marketing any
products or services when necessary for the
performance of the federal award.
No(1)
Taxes (including
Value Added Tax)
2 CFR § 200.470(c);
45 CFR § 75.470
Use of the foreign government value added
tax refunds for approved activities under
the federal award (where the federal award
has not expired).
No(1)
Travel Costs
2 CFR § 200.474(a);
45 CFR § 75.474
Travel costs of governmental officials
covered by §200.444 when specifically
related to the federal award.
No(1)
Travel Costs
2 CFR §
200.474(b)(2); 45
CFR § 75.474
Travel costs of dependents of six months or
more in duration.
No(1)
Yes
Note: (1) - Requires individual approval
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OEL 240.05 – PRIOR APPROVAL GUIDELINES
EFFECTIVE DATE
Issuance of this guidance represents approval by OEL management of the indicated procedures and
related administrative forms. These procedures will be effective as of the date of this guidance.
FOOTNOTES
¹ 45 C.F.R. Part 75.2 - Definitions
ATTACHMENTS
Annual Prior Approval Request Form
Annual Prior Approval Request Form – Other Individual Items
If you have questions or concerns regarding the guidance provided here, please contact the OEL
Financial Administration and Budget Services Office at 850-717-8683
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