The following are specific changes to Nebraska VR’s prior approval process consistent with the October 2019 guidance:

Participant support costs (PSCs):  As defined by the OMB Uniform Guidance, PSCs are direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (State employees not included) in connection with conferences or training projects (2 C.F.R. § 200.75).

As outlined in the FAQ, OSERS is granting prior approval for the following PSCs:

A. PSCs for meetings (sub and related subcommittee meetings) required by the Rehabilitation Act, including the State Rehabilitation Council under Sections 101(a)(21) of the Rehabilitation Act

B. PSCs incurred during the provision of services to individuals with disabilities under the Rehabilitation Act; this includes PSCs incurred for the provisions of VR services under individualized plans for employment (IPEs) for individuals with disabilities eligible for VR services; and

C. Any other PSCs, not described specifically above, that do not exceed a total cost of $5,000 per individual participant or trainee per conference training or event.

Nebraska VR will not have to submit prior approval requests for the PSCs expenditures identified above. Through the October 2019 memo and FAQs, OSERS is granting prior approval for these expenditures, thereby eliminating the need for grantees to submit separate requests for these particular expenditures. If Nebraska VR needs to incur PSCs that fall outside the scope of this prior approval, it will need to submit detailed requests for prior approval to RSA.

Equipment Expenditures

“Equipment” is defined in the OMB Uniform Guidance in 2 C.F.R. § 200.33 as an article of tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000.

“General purpose equipment” is defined in 2 C.F.R. § 200.48 as equipment which is not limited to research, medical, scientific or other technical activities. Examples include information technology hardware and software, office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. “Special purpose equipment” means equipment that is used only for research, medical, scientific, or other technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical instruments, and spectrometers.

Capital expenditures for general purpose equipment are unallowable except with the prior written approval of the Federal awarding agency or pass-through entity, and capital expenditures for special purpose equipment with a unit cost of $5,000 or more are unallowable except with the prior written approval of the Federal awarding agency or pass-through entity (2 C.F.R. § 200.439(b)).

Given the varied nature of equipment purchases under the RSA formula grant programs, OSERS has determined it necessary to establish a leveled prior approval process. The first level, of OSERS’ approach, grants prior approval for certain equipment expenditures.

OSERS and RSA are approving through the issuance of the FAQ, equipment purchases under the VR program that are necessary for eligible individuals with disabilities to achieve employment outcomes, thereby ensuring the timely delivery of those services. This means that VR program grantees no longer must submit prior approval requests to RSA for equipment (defined generally as $5,000 or more per item of equipment) that is to be charged to the VR program for delivery of services to eligible individuals with disabilities provided under IPEs (e.g., rehabilitation technology, or home or vehicle modifications). For equipment purchases outside the scope of these definitions, Nebraska VR must include the item(s) in the aggregate report which constitutes level two of the tri-level approach.

 

 

Nebraska VR will submit an aggregate report in a timely manner and consistent with all requirements to ensure approval is received by RSA prior to the beginning of the FFY (60 Days prior to the beginning of a FFY). Nebraska VR will submit an aggregate report based on reasonable budget estimates for an entire federal fiscal year (FFY) rather than submitting separate approval requests for each proposed expenditure. The categories within the report will include:  agency costs, consumer costs, and direct salaries.  Each FFY, the Program Director of Fiscal will prepare and submit this report to the agency Director for review. The agency Director will then send the report to RSA for review and approval.

Nebraska VR has developed internal controls which support appropriate tracking to make certain the expenditure totals do not exceed the budget estimate submitted to and approved by RSA.  The Program Director of Fiscal will update and resubmit requests accordingly to account for expenditures exceeding the approved aggregate estimates.

Nebraska VR retains the responsibility to monitor and ensure that the expenditure of program funds, including expenditures made on the basis of the prior approvals meet the requirements of program statutes and regulations, and the requirements set out in Subpart E of 2 C.F.R. Part 200 with regard to expenditures being reasonable, necessary, allowable, and properly documented.

In accordance with federal regulation, the Rehabilitation Services Administration (RSA) requires all VR agencies obtain federal agency approval prior to the issuance of an authorization or purchase order.  

Effective immediately, prior approval from the federal agency is required in order to prevent subsequent disallowances and potential loss of federal funds. This prior approval requirement is required regardless of payment method. 

Prior approval is applicable to certain administrative, program, and client purchases funded by federal grants, including purchases funded by Social Security Reimbursements and purchases made with non-federal match funds.  The prior approval requirement is also applicable to contractors and sub-grantees receiving federal funds through the department. 

In October 2019, the Office of Special Education and Rehabilitation Services (OSERS) released guidance (memo and accompanying FAQs) which replaced RSA’s April 2018 Technical Assistance Circular (18-02) which addressed Prior Approval requirements. The FAQ document details prior approval flexibilities for two direct cost categories under the Department’s authority in the Uniform Guidance, codified in 2 C.F.R. §§ 200.407(f) and (t), 200.439(b), and 200.456. The flexibilities apply to State formula grant programs administered by the Office of Special Education Programs (OSEP) and the Rehabilitation Services Administration (RSA) and address the two direct cost categories: participant support costs and equipment.

These flexibilities do not diminish the responsibilities of Nebraska VR to monitor and ensure that the expenditure of program funds, including expenditures made on the basis of the prior approvals described in the FAQs, meet the requirements of program statutes and regulations, and the requirements set out in Subpart E of 2 C.F.R. Part 200 with regard to expenditures being reasonable, necessary, allowable, and properly documented.