TECHNICAL ASSISTANCE PAPER
TECHNICAL ASSISTANCE PAPER
No: 2005-08
Charter School Program Subgrantee Conflict of Interest Guidelines
Purpose
The purpose of this Technical Assistance Paper is to outline the administrative and fiscal responsibilities of a
charter school subgrantee to avoid apparent and actual conflicts of interest when administering grants.
Charter schools receiving Federal grants must comply with applicable statutes, regulations, and approved
applications and must use Federal funds in accordance with those statues, regulations, and applications.
Subgrantees must directly administer or supervise the administration of the project and must use fiscal control
and fund accounting procedures that ensure proper disbursement of, and accounting for, Federal funds.
Education Department General Administrative Regulations (EDGAR), 34 CFR 75.700-75.702. The information
presented in this document is also consistent with State procurement requirements as specified in Chapter
287, Florida Statutes.
Grant Administration Responsibilities
Subgrantees must avoid apparent and actual conflicts of interest when administering grants. A subgrantee
may not take part in or permit a person to take part in an administrative decision regarding a project if:
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The decision is likely to benefit that person or his or her immediate family member;
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The person is a public official; or
The person has a family or business relationship with the subgrantee.
In addition, a subgrantee or any person participating in the project may not use his or her position for a
purpose that is, or gives the appearance of being, motivated by a desire for private financial gain for that
person or for others. EDGAR 34 CFR 75.525.
Grant Fiscal Responsibilities
When using Federal funds to enter into a contract for equipment or services, a subgrantee must comply with
Federal procurement standards.
Those standards require subgrantees to develop written procurement
procedures and to conduct all procurement transactions in a manner to provide, to the maximum extent
possible, open and free competition. No employee, officer, or agent of the charter school may participate in
the selection, award, or administration of any contract supported by Federal funds if a real or apparent conflict
of interest exists.
Procurement Standards
The following procurement standards are designed to ensure that supplies and other expendable property,
equipment, real property and other services purchased with Federal funds are obtained in an effective manner
and in compliance with the provisions of applicable Federal statutes and State requirements.
1.
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The recipient is the responsible authority regarding the settlement and satisfaction of all contractual
and administrative issues arising out of procurements entered into in support of an award. This
includes disputes, claims, protests of award, source evaluation, or other matters of a contractual
nature.
2.
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The recipient shall maintain written standards of conduct governing the performance of its employees
engaged in the award and administration of contracts. No employee, officer, or agent shall participate
in the selection, award, or administration of a contract supported by Federal funds if a real or apparent
Contact Information:
Independent Education
Karen Hines-Henry
and Parental Choice
850-245-0502
karen.hines@fldoe.org
February 2006
Increasing the Quantity and Improving the Quality of Educational Options
conflict of interest would be involved. A conflict would arise when the employee, officer, agent, or
member of their immediate family has a financial or other interest in the firm selected for an award.
3.
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All procurement transactions shall be conducted in a manner to provide, to the maximum extent
practical, open and free competition. The recipient shall be alert to organizational conflicts of interest
as well as noncompetitive practices among contractors that may restrict or eliminate competition.
Awards must be made to the bidder whose bid is responsive to the solicitation and is most
advantageous to the recipient, price, and quality.
4.
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All recipients shall establish written procurement procedures. Positive efforts shall be made by
recipients to utilize small businesses, minority-owned firms, and women’s business enterprises
whenever possible. The type of procuring instruments used shall be determined by the recipient but
must be appropriate for the particular procurement. Contracts shall be made only with responsible
contractors who possess the potential ability to perform successfully under the terms and conditions of
the proposed procurement.
5.
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Some form of cost or price analysis must be made and documented in the procurement files in
connection with every procurement action. Cost analysis is the review and evaluation of each element
of cost to determine reasonableness, allocability, and allowability.
6.
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Procurement records and files for purchases in excess of the small purchase threshold (currently
$25,000) must include the following: (1) basis for contractor selection; (2) justification for lack of
competition when competitive bids are not obtained; and (3) basis for award.
7.
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A system for contract administration must be maintained to ensure contractor conformance with the
terms, conditions and specifications of the contract. Recipients shall evaluate contractor performance
and document whether contractors have met the terms and conditions of the contract.
8.
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The recipient shall include the following provisions in all contracts and subcontracts: (1) contracts in
excess of the small purchase threshold (currently $25,000) shall contain provisions that allow for
remedies when a contractor violates the contract terms; (2) all contracts in excess of the small
purchase threshold shall contain provisions for termination by the recipient and describe conditions
under which the contract may be terminated for default; (3) an award that requires the contracting for
construction of facility improvements must provide for the recipient to follow its own requirements
relating to bid guarantees and bonds; and (4) all negotiated contracts awarded by recipients must
include a provision that the recipient, or any duly authorized representative, must have access to any
records of the contractor which are directly pertinent to the specific program. EDGAR 34 CFR 74.41-
74.48.
Contacts for Additional Information
Detailed information on Conflict of Interest Guidelines, Charter Schools Program, Title V, Part B
Non-
Regulatory Guidance
can be found at: http://www.ed.gov/policy/elsec/guid/cspguidance03.doc
The Florida Department of Education, Office of Independent Education and Parental Choice, website can be
found at:
http://www.floridaschoolchoice.org
For questions and information on charter schools, contact Karen Hines-Henry at 850-245-0502 or
karen.hines@fldoe.org
