Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Compliance topic
No spam. Unsubscribe anytime.
FY27 LEAPS budget rules: allowable costs, technology cap, program-fee prohibition and indirect-cost guidance
Summary
Tennessee Department of Education explained budget requirements for FY27 LEAPS: detailed budget narratives required, administrative cost cap of 20%, technology capped at 15 items ($1,000 each), program fees prohibited except under a CCDF exception, and indirect costs allowed up to 8% absent a cognizant-agency approved restricted rate.
Mario Pennington, federal grants manager, reviewed budget rules and compliance expectations for FY27 LEAPS applicants. He said budgets must include two components: line items that identify the expense category and a budget narrative explaining why the expenditure is needed, the dollar amount, and how it was calculated (for example, teacher hourly rate times hours worked, broken down by site).
Pennington emphasized applicants cannot simply list lump-sum amounts; reviewers expect per-site and per-position breakdowns with math shown. The department requires applicants to separate employees working directly with students from administrative staff and enforces a 20% cap on administrative costs for personnel not serving students. Full-time equivalent staff must have clearly explained percentages of time dedicated to grant activities.
On technology, Pennington said technology purchases must be preapproved by extended learning staff and that projects may purchase up to 15 technology items per project year at up to $1,000 per item (a maximum of $15,000 for technology). All expenses must be allowable, reasonable, allocable, legal, consistent with state/local policies and generally accepted accounting principles, and adequately documented.
The department reiterated that LEAPS-funded programs may not charge participant fees or generate program income tied to LEAPS-supported services (enrollment fees, charges for materials, meals, transportation, or fundraising that produces income for LEAPS activities). The only exception is for programs participating in the federal Child Care and Development Fund (CCDF); grantees seeking that exception must submit a written justification and documentation (sliding fee scale, scholarship plan, assurance no child is excluded), and receive written preapproval from the department before implementation.
On indirect costs, presenters said the U.S. Department of Education has authorized the state to negotiate and approve indirect-cost proposals and rates; state universities, colleges and nongovernmental agencies may charge up to 8% unless they have a cognizant agency-approved restricted indirect cost rate. LEAs already have negotiated rates on file with Tennessee.
