Accountability, Reporting, and CTE Data

The purpose of this section is to offer transparency to the Perkins Federal Grant state allocation and the distribution of that allocation to the sub-recipients. As specified in the Act, Perkins V Title I funds allocated to the state are distributed among three categories: 

  1. 85 percent – those provided to eligible recipients through formula-based distribution. 
  2. 10 percent – those used for state leadership activities. 
  3. 5 percent – those used for state-level administration of the grant. 

In the Minnesota 4-Year State Plan, sub-recipients are the local consortia that serve CTE programs at the secondary and postsecondary levels. These sub-recipients receive the 85 percent formula-based allocations. 

The funds allocated to the formula-based distribution category are split between secondary- and postsecondary-eligible recipients as described in the state plan and illustrated in the chart in figure 3 above. All funds that are not used in the fiscal year awarded are recaptured and reallocated through the formula. 

Formula Distribution

Eighty-five percent of the Perkins state allocation flows to Minnesota consortia by formula distribution. This 85 percent is further subdivided into the basic allocation (85 percent of the 85 percent) and the reserve (15 percent of the 85 percent). Under Perkins V law, states determine whether or not reserve funds are awarded and at what level up to a maximum of 15 percent. 

Consortium Basic Allocation

Calculations for the basic grant are based on specific attributes of the secondary and postsecondary constituents. While the dates of gathered data will change to utilize the most recent information, the basic formula remains constant. 

Secondary Formula (Sec 131) 

The secondary formula is based on the most recent U.S. Census data for the population by school district of individuals aged 5-17 and also those aged 5-17 in households of poverty. 

Thirty percent of the secondary allocation is based on the following: 

  • District population of individuals aged 5-17, compared to 
  • State population of individuals aged 5-17 

Seventy percent of the secondary allocation is based on the following: 

  • District population of individuals aged 5-17 in poverty, compared to 
  • State population of individuals aged 5-17 in poverty 

Results for each district are multiplied by the total secondary formula amount for Minnesota from the OCTAE allocation. The secondary consortium formula equals the sum of the amounts calculated for each district member in the consortium. 

Postsecondary Formula (Sec 132) 

The postsecondary formula is based on the most recent number of postsecondary Pell Grant recipients. It compares: 

  • The number of Pell Grant recipients in the college, enrolled in Perkins-eligible programs, to 
  • The number of Pell Grant recipients in the state, enrolled in Perkins-eligible programs 

Results for each college are multiplied by the total postsecondary formula amount for Minnesota from the OCTAE allocation. 

The postsecondary consortium formula equals the sum of the amounts calculated for each college member of the consortium. 

 

Consortium Reserve Allocation

Under Perkins V, Section 112, reserve funds may be awarded0 to consortia in: 

  • Rural areas 
  • Areas with high percentages of CTE concentrators or CTE participants 
  • Areas with high number of CTE concentrators or CTE participants 
  • Areas with disparities or gaps in performance 

Up to 15 percent of funds allocated to a consortium can consist of reserve funds. Reserve funds are unique in that they must specifically be used to either foster innovation or promote the development, implementation, and adoption of programs of study or career pathways aligned with high-skill, high-wage, 

or in-demand occupations. Innovation can be defined for this purpose as something not used before by a consortium or a new approach taken within a consortium. Consortia must describe in the grant application how reserve funds will be used. In Minnesota, fifteen percent of a consortium’s application will consist of reserve funds. 

Federal and Minnesota Legislation 

The distribution formulas are based on both the Perkins V Act (PDF)and the Minnesota 4-Year State Plan (PDF).

 

State Leadership Funds

No more than 10 percent of the state’s allocation can be set aside to carry out state leadership activities (Figure 3). Of this amount: 

  • not more than two percent shall be dedicated to serve individuals in state correctional facilities, 
  • not less than $60,000, and not more than $150,000, shall be used for services that prepare individuals for nontraditional training and employment, and 
  • not less than the lesser of 0.1 percent or $50,000 shall be made available for the recruitment of special populations to enroll in CTE programs (Section 112(a)(2)). 

Leadership funds are divided between secondary (42%) and postsecondary (58%) programs. Minnesota awards the majority of leadership funds to the Minnesota State System Office with the understanding that these funds serve statewide needs such as supporting the annual CTE Works! Summit, the mentorship program, and continuous improvement grants to consortia. 

Leadership funds are intended to improve career and technical education including support for: 

  • Preparation for non-traditional fields, programs for special populations and other activities that expose students to high-skill, high-wage, and in-demand occupations; 
  • Individuals in state institutions including correctional and juvenile justice facilities and educational facilities serving individuals with disabilities; 
  • Recruiting, preparing, or retaining CTE teachers, faculty and support personnel; and 
  • Technical assistance for eligible recipients. 

Additional annual leadership projects are awarded though a competitive process with a sponsor/supervisor at the state level. 

 

State Administration Funds

The Perkins V Act, Section 112(a)(3), allows Minnesota to set aside no more than five percent of the state’s allocation or 

$250,000, whichever is greater, for administration of the state plan. These dollars are limited to the following uses: 

  • Developing the state plan 
  • Reviewing a local application 
  • Monitoring and evaluating program effectiveness 
  • Assuring compliance with all applicable federal laws 
  • Providing technical assistance 
  • Supporting and developing state data systems relevant to the provisions of the Perkins V Act;er 

Dollars set aside for state administration must be matched on a dollar-for-dollar basis from non-federal sources. 

 

Perkins V Finance Cost Centers (Minnesota State)

Part 1: Federal Requirements

Federal requirements stipulate that each grant award activity deliver reports with the following attributes: 

  • Data consistency 
  • Report reproducibility 
  • Clear audit trail 
  • Ability to create consolidated annual reports 

Part 2:

 

 

Part 3: Fiscal Year Expenditure Timelines

The Perkins V Act does not allow colleges or school districts to carry-over unexpended funds from one fiscal year to the next. 

 All expenditure orders must be encumbered by June 30 of the local application fiscal year. 

Attempts should be made to pay all invoices by June 30 of the local application fiscal year. Any payments to be made after July 30 must be cleared through the System Office grants accountant. 

 

Part 4: Expenditure Reimbursement Process (Draws)

Basic grant, reserve funds, reallocated basic funds, and reallocated reserve funds will be reimbursed as follows: 

  1. Set up cost center(s) with budget(s) totaling the award amount. 
  2. System Office grants accountant reviews the Perkins cost centers associated with the current fiscal year for all colleges and determines the amount eligible for reimbursement. 
  3. System Office grants accountant requests a drawdown from the Perkins fund maintained at the U.S. Department of Education to reimburse the colleges. 
  4. System Office grants accountant enters a deposit into SWIFT for the drawn amount. 
  5. System Office grants accountant sends an email to the fiscal contacts notifying them of the amount of the SWIFT deposit, and the specific amounts to receipt to which designated GLs. 
  6. College fiscal contacts receipt the funds in ISRS to grant revenue (object code 9401), using Perkins cost center(s) associated with the designated GLs. 

 

SERVS Financial System at MDE