HomeMy WebLinkAboutProposal for Expanded Performance Period on REF Projects (2)Proposal for Allowing REF projects to begin prior to July 1 in certain circumstances
Problem Statement:
Currently, there are approximately three months between the release of awarded funds from Round X
of the REF and the application due date of Round (X+1). This does not provide grantees adequate time
to perform their scope of work and apply for the next phase of the project. This issue was identified in
the REGRP Process Report as “General Finding 8: The timing of grant application and funding cycles is a
challenge.”
Current Policies:
Shawn Calfa reviewed the regulations and did not find any specific time frame limitations. However,
AEA does adhere to the following policies:
1. Work performed prior to July 1st of the Award year is not eligible for reimbursement by the REF.
2. AEA may allow cost sharing or matching contributions that occurred prior to the grant eligible
time period for projects that involve construction.
Josh found that while funds will not be available until July 1st a grant agreement can be executed prior to
July 1. (Per Shawn Calfa, I believe. Is this true?)
Criterion:
1. Applicant would have to be ranked at a level that is included in the Governor’s December
budget and been approved by the legislature.
2. The applicant should have adequate funding to pay for the expenses,
3. Any previously funded phases would need to be complete and approved by AEA to be eligible
(e.g. final design approved by AEA prior to construction).
4. The arrangement will be made only with AEA’s approval (PM, grants manager, D.D., E.D.)
5. Only tasks performed after a grant agreement has been executed would be eligible for
reimbursement.
6. Any expenses incurred prior to the grant being officially funded (July 1), will be solely at the
grantee’s risk and this will be highlighted in the grant agreement.
Conclusion:
Ultimately, the grantee will assume the risk on any tasks completed prior to funds becoming available
on July 1st. However, there can be a certain level of confidence in funding availability after the
Legislature has submitted their budget to the Governor. This confidence can be higher if the
Legislature’s proposed budget for the REF meets the Governors proposed budget.
This proposal addresses the one negative general finding from the REGRP Process Report and could
effectively almost double the available time for grantees to finish grant work prior to the next
application due date.