Certification and Agreement (ALN 84.425T)

Summary

The U.S. Department of Education's Certification and Agreement (ALN 84.425T) for the Supplemental Support Under the American Rescue Plan (SSARP) program, setting the terms for institutions' use of grants under section 2003 of the American Rescue Plan Act of 2021 (Pub. L. 117-2) and section 314 of the CRRSAA (Pub. L. 116-260). It lists five Absolute Priorities and the share of each award that must go to Emergency Financial Aid Grants to Students, such as at least 50 percent for community colleges and rural institutions under Absolute Priority 4. It bars spending on recruitment, endowments, executive pay and stock buybacks, and says drawn funds not paid out within 15 calendar days may draw heightened scrutiny. Recipients must comply with the Single Audit Act, and noncompliance may bring False Claims Act liability. The institution name and signature fields are blank.

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Issuer: Congressional materials
Document type: Ppr Int A2867799C8545092 New C A 7F32E4Fb84
Case: Ppr Int A2867799C8545092 New C A 7F32E4Fb84

Cite this document

“Certification and Agreement (ALN 84.425T).” Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/ppr-int-a2867799c8545092-new-c-a-7f32e4fb84/, SHA-256 34bacaf6db7d9ff5d4c54f4e9a156ddbe4b0850b9b5efb3e9faf6fc8a05096c8.

Full text

Supplemental Support Under the American Rescue Plan – Page 1

American Rescue Plan Act of 2021
Certification and Agreement (ALN 84.425T)

SUPPLEMENTAL SUPPORT UNDER THE AMERICAN RESCUE PLAN (SSARP)
PROGRAM

The terms, conditions, and requirements governing your institution’s (Recipient’s) use of these
grant funds awarded pursuant to section 2003 of the American Rescue Plan Act of 2021 (ARP)
(Pub. L. 117-2) (award or grant) by the U.S. Department of Education (Department) are
governed by section 2003 of the ARP and section 314 of the Coronavirus Response and Relief
Supplemental Appropriations Act, 2021 (CRRSAA) (Pub. L. 116-260) and the following terms
and conditions of this Certification and Agreement (C&A):

Specific Uses of SSARP (a)(3) Funds:

1. Institutions receiving funds under the Notice Inviting Applications (NIA) for the SSARP
program as a part of the Higher Education Emergency Relief Fund (HEERF) must, in
expending those funds, meet the requirements specified under the Absolute Priorities to
which they received funds under. Those Absolute Priorities are:

Absolute Priority 1: Underfunded (a)(1) Grantees due to Technical Errors,
Application Issues, or not Reporting in IPEDS.

a. Institutions awarded funds under Absolute Priority 1(a) must fund Emergency
Financial Aid Grants to Students in the same amount that they would have been
required to under CRRSAA, which must be distributed consistent with section
314(c) of CRRSAA.

b. Institutions awarded funds under Absolute Priority 1(b) must fund Emergency
Financial Aid Grants to Students in the same amount that they would have been
required to under ARP, which must be distributed consistent with section 314(c)
of CRRSAA.

Absolute Priority 2: MSI or SIP Grantees that were Underfunded due to
Technical Errors or Application Issues, are Newly Eligible, or are a Branch
Campus.

c. Institutions awarded funds under Absolute Priority 2 may use their funds for
institutional uses. However, the Secretary urges Recipient to devote the
maximum amount of funds possible to Emergency Financial Aid Grants to
Students.

Absolute Priority 3: Underfunded ARP (a)(1) Grantees due to an Institutional
Merger or change in PPA.

d. Institutions awarded funds under Absolute Priority 3 must fund Emergency
Supplemental Support Under the American Rescue Plan – Page 2

Financial Aid Grants to Students in the same amount that they would have been
required to under ARP, which must be distributed consistent with section 314(c)
of CRRSAA.

Absolute Priority 4: Community Colleges and Rural IHEs Serving a High
Percentage of Low-Income students and Experiencing Enrollment Declines.

e. Institutions awarded fund under Absolute Priority 4 must use at least 50 percent
of funds awarded for Emergency Financial Aid Grants to Students, which must
be distributed consistent with section 314(c) of CRRSAA.

Absolute Priority 5: Institutions Serving High Percentages of Graduate Students.

f. Institutions awarded funds under Absolute Priority 5 must use all funds awarded
for Emergency Financial Aid Grants to Students, which must be distributed
consistent with section 314(c) of CRRSAA. However, if the institution did not
previously receive funds under the ARP (a)(1) or (a)(2) funding streams, the
institution must spend a portion of SSARP grant funds on the activities described
in ARP section 2003(5) (as described in greater detail in clause 5).

2. The Department will post a SSARP allocation table specifying the minimum amount, if
any, that institutions must expend making Emergency Financial Aid Grants to Students.

HEERF Use of Grant Funds:

3. Unless noted otherwise in this agreement, in accordance with section 314(c) of the
CRRSAA, Recipient may use these grant funds for Recipient’s Institutional Costs to
defray expenses associated with coronavirus (including lost revenue, reimbursement for
expenses already incurred, technology costs associated with a transition to distance
education, faculty and staff trainings, and payroll); and to make additional Emergency
Financial Aid Grants to Students, which may be used for any component of the student’s
cost of attendance or for emergency costs that arise due to coronavirus, such as tuition,
food, housing, health care (including mental health care), or child care.

4. Recipient may, but is not required to, use funds designated for Recipient’s Institutional
Costs to provide additional Emergency Financial Aid Grants to Students. If Recipient
chooses to use these grant funds designated for Recipient’s Institutional Costs to provide
additional emergency financial aid grants to students, then those funds are subject to the
requirements described in the ARP Grant Funds for Students Agreement.

5. Institutions receiving funds under the SSARP program that did not previously receive
funds under the ARP (a)(1) or (a)(2) funding streams must spend a portion of their
SSARP grant funds on the following activities (in accordance with ARP section
2003(5)):
a. implement evidence-based practices to monitor and suppress coronavirus in
accordance with public health guidelines; and
Supplemental Support Under the American Rescue Plan – Page 3

b. conduct direct outreach to financial aid applicants about the opportunity to
receive a financial aid adjustment due to the recent unemployment of a family
member or independent student, or other circumstances, described in section
479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt)

6. Recipient acknowledges that no grant funds may be used to fund contractors for the
provision of pre-enrollment recruitment activities; marketing or recruitment;
endowments; capital outlays associated with facilities related to athletics, sectarian
instruction, or religious worship; senior administrator or executive salaries, benefits,
bonuses, contracts, incentives; stock buybacks, shareholder dividends, capital
distributions, and stock options; or any other cash or other benefit for a senior
administrator or executive.

7. The Secretary urges Recipient to devote the maximum amount of funds possible to
Emergency Financial Aid Grants to Students, including some or all of the funds
allocated for Recipient’s Institutional Costs. The Secretary urges Recipient to take
strong measures to ensure that Emergency Financial Aid Grants to Students are made to
the maximum extent possible.

Grant Administration:

8. Recipient acknowledges that consistent with 2 CFR § 200.305, it must minimize the
time between drawing down funds from G5 and paying incurred obligations
(liquidation). Recipient further acknowledges that if it draws down funds and does not
pay the incurred obligations (liquidates) within 15 calendar days, it may be subject to
heightened scrutiny by the Department, Recipient’s auditors, and/or the Department’s
Office of Inspector General (OIG). Recipient further acknowledges that returning funds
pursuant to mistakes in drawing down excessive grant funds in advance of need may
also be subject to heightened scrutiny by the Department, Recipient’s auditors, and/or
the Department’s OIG. Finally, Recipient acknowledges that it must maintain drawn
down grant funds in an interest-bearing account, and any interest earned on all Federal
grant funds above $500 (all Federal grants together) during an institution’s fiscal year
must be returned (remitted) to the Federal government via a process described here:
https://www2.ed.gov/documents/funding-101/g5-returning-interest.pdf.

9. Recipient may charge indirect costs to funds made available under this award consistent
with its negotiated indirect cost rate agreement, with the exception of any portion of its
award reserved for Emergency Financial Aid Grants to Students. If Recipient does not
have a current negotiated indirect cost rate with its cognizant agency for indirect costs, it
may appropriately charge the de minimis rate of ten percent of Modified Total Direct
Costs (MTDC). Recipient may also charge reasonable direct administrative costs to
funds made available under this award, with the exception of any portion of its award
reserved for Emergency Financial Aid Grants to Students.

10. Recipient acknowledges that any obligation under this grant (pre-award costs pursuant
to 2 CFR § 200.458) must have been incurred on or after March 13, 2020, the date of the
Supplemental Support Under the American Rescue Plan – Page 4

declaration of a National Emergency Concerning the Novel Coronavirus Disease
(COVID-19) Outbreak (85 FR 15337).

11. Recipient must promptly and to the greatest extent practicable expend all grant funds
from this award within the one-year period of performance (2 CFR § 200.77) specified
in Box 6 of this Grant Award Notification (GAN).

12. Recipient must, to the greatest extent practicable, continue to pay its employees and
contractors during the period of any disruptions or closures related to coronavirus
pursuant to section 315 of the CRRSAA.

Reporting and Accountability:

13. Recipient must promptly and timely provide a detailed accounting of the use and
expenditure of the funds provided by this award in such manner and with such
frequency as the Secretary may require.

14. Recipient must comply with all requirements of the Single Audit Act Amendments of
1996, 31 U.S.C. § 7501, et seq. (Single Audit Act) and all applicable auditing standards.
The Department has designated the Education Stabilization Fund (ESF) (all ALN 84.425
subprograms) as a “higher risk” program which requires auditors to consider several
factors before declining to include the program as a major Federal program in the Single
Audit. Generally, an institution’s ESF program, including the SSARP subprogram (ALN
84.425T), must be audited as a major Federal program when it is considered a Type A
program (a large program). Because the ESF program is entirely comprised of COVID-
19 funding, under the “higher risk” designation ESF cannot qualify as a low-risk Type A
program. Auditors must prepare audit documentation supporting risk considerations and
conclusions for the ESF program when preparing their Single Audit.

15. Recipient acknowledges it is under a continuing affirmative duty to inform the
Department if Recipient is to close or terminate operations as an institution or merge
with another institution. In such cases, Recipient must promptly notify in writing the
assigned education program officer contact in Box 3. Additionally, Recipient must
promptly notify the assigned education program officer if the Recipient’s Authorized
Representative changes.

16. Recipient must cooperate with any examination of records with respect to the advanced
funds by making records and authorized individuals available when requested, whether
by (i) the Department and/or its OIG; or (ii) any other Federal agency, commission, or
department in the lawful exercise of its jurisdiction and authority. Recipient must retain
all financial records, supporting documents, statistical records, and all other non-Federal
entity records pertinent to a Federal award for a period of three years from the date of
submission of the final expenditure report pursuant to 2 CFR § 200.334.

17. Recipient acknowledges that failure to comply with this Certification and Agreement, its
terms and conditions, and/or all relevant provisions and requirements of the CRRSAA or
Supplemental Support Under the American Rescue Plan – Page 5

ARP or any other applicable law may result in Recipient’s liability under the False
Claims Act, 31 U.S.C. § 3729, et seq.; OMB Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 180, as
adopted and amended as regulations of the Department in 2 CFR part 3485; 18 U.S.C. §
1001, as appropriate; and all of the laws and regulations referenced in the “Applicable
Law” section of this Certification and Agreement, below.

Applicable Law:

18. Recipient must comply with all applicable assurances in OMB Standard Forms (SF) SF-
424B and SF-424D (Assurances for Non-Construction and Assurances for Construction
Programs), including the assurances relating to the legal authority to apply for
assistance; access to records; conflict of interest; nondiscrimination; Hatch Act
provisions; labor standards; Single Audit Act; and the general agreement to comply with
all applicable Federal laws, executive orders, and regulations.

19. Recipient certifies that with respect to the certification regarding lobbying in
Department Form 80-0013, no Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the making or supplementing of Federal grants
under this program; Recipient must complete and submit Standard Form-LLL,
“Disclosure Form to Report Lobbying,” when required (34 CFR part 82, Appendix B).

20. Recipient must comply with the provisions of all applicable acts, regulations and
assurances; the following provisions of Education Department General Administrative
Regulations (EDGAR) 34 CFR parts 75, 77, 81, 82, 84, 86, 97, 98, and 99; the OMB
Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement) in 2 CFR part 180, as adopted and amended as regulations of the
Department in 2 CFR part 3485; and the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards in 2 CFR part 200, as adopted
and amended as regulations of the Department in 2 CFR part 3474.

Institution Name:
Authorized Representative (typed name):
Authorized Representative Title:
DUNS Number:
OPEID:
Date:
Supplemental Support Under the American Rescue Plan – Page 6

Paperwork Burden Statement

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a
collection of information unless such collection displays a valid OMB control number. The valid
OMB control number for this information collection is 1840-XXXX. Public reporting burden for
this collection of information is estimated to average 3 hours per response, including time for
reviewing instructions, searching existing data sources, gathering, and maintaining the data
needed, and completing and reviewing the collection of information. The obligation to respond
to this collection is required to obtain or retain benefit (ARP Section 2003 and Section 314(a)(3)
of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (div M. of Pub.
L. 116-260)). If you have any comments concerning the accuracy of the time estimate,
suggestions for improving this individual collection, or if you have comments or concerns
regarding the status of your individual form, application, or survey, please contact Karen Epps,
400 Maryland Avenue, SW, Washington, D.C. 20202 directly.

OMB Number: 1840-0860
Expiration Date: 7/31/22

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