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Grant & Debt Reimbursement Project Administration

Overview

The department operates two programs of state aid for school district capital projects under AS 14.11 – grant and debt reimbursement.  Many of the administration aspects for entering into an agreement to accomplish a project are similar between the two programs.  All projects must submit an application to propose a scope of work, budget, and provide justification of need.  Once an application is approved and funding is available, a project agreement is issued outlining the terms under which the project and payments will occur.  After a project is complete, and the final submittals are received and approved by the department, a termination agreement is executed.

For information on the development and general flow of the capital project process, see the Capital Project Management page.

Capital Project Administration Handbook

The department publishes the Capital Project Administration Handbook (pdf), which provides more detail on the DEED capital project process and required submittals summarized on this page.

Application

Any Alaska school district may submit a project application for a School Construction or Major Maintenance grant by the annual September 1 application deadline.  This allows participation in the statewide prioritization process, the results of which go before the legislature for consideration during the budget appropriation process.  School districts in municipalities with the ability to sell bonds may also submit an application under the terms of an authorized debt reimbursement program.  Note that currently the debt reimbursement program is suspended until July 1, 2025.

For the current CIP application and supporting documents for both grant or debt reimbursement, refer to Capital Improvement Project Application and Support.

Project Agreement

Once there is approval for a grant award or debt reimbursement, a project number is assigned by the department, and a draft project agreement is provided for review.  The project agreement transfers the responsibility for execution of the project from DEED to the school district (or municipality) and establishes the terms and conditions by which the project will be executed.  The draft agreement contains standard clauses and appendices.  Appendices relating to project scope, conditions, budget, and submittals are based on the project application and incorporate any modifications made by DEED. The project agreement should be reviewed for accuracy and applicability. Once there is consensus, the agreement is finalized and signed.

Amendments

As the project progresses there is opportunity for amendment, if needed.  Contact the Facilities Manager or project support staff to discuss potential amendments.  Any proposed amendment will require a written request and justification for department evaluation.

Annual Reports

All open projects are required to submit an annual report that provides a financial and narrative update of the project.  The grant annual report form (word) is due by July 31. The debt reimbursement annual report form (word) is due by October 15.  The report provides an opportunity to document the progress of a project, to ensure submittals are up-to-date, and to review whether a budget amendment may be needed.  Late annual reports may cause payments to be suspended.

Submittals

Regulation and the project agreement specify that certain project documents must be submitted to the department for review and approval.  Documents should be provided as soon as available to ensure timely communication and resolution of concerns.

The submittals confirm that the project conforms to the approved scope and is using processes stipulated by the agreement for all phases of the project.  Depending on the size and scope of a project, and as determined during development of the project agreement, not all submittals may be required.  Review the Capital Project Administration Handbook (pdf) for more information about the identified submittal.  Submittals can be grouped into the following categories:

Payments

Payments for a grant project are based on department receipt and approval of the required submittals.  After certain ‘milestones’ a payment is issued based on a percentage of the grant.  Payment percentages are structured so a district that turns in project submittals in a timely manner will be funded ahead of accruing project expenses.

School bond reimbursements occur in the month in which the payment is scheduled according to the bond redemption schedule.  Entities must submit a request for reimbursement for each scheduled payment to School Finance.  However, delayed receipt of submittals or the annual report may cause payments to be suspended.

Project Agreement Termination

After all submittals have been received and reviewed or approved, as needed, the department will issue a termination agreement to be signed by both parties confirming the final amount of grant payment or project value for debt reimbursement and certifying that the project scope was completed according to the project agreement.  On final signature the project is closed.

Contact

For questions, please contact the following Facilities staff:

Timelines

July 1 – typical effective date of new fiscal year grants

July 31 – grant annual reports due

6 weeks prior to substantial completion – notify Facilities of scheduled walk-through

365 days or less after substantial completion – submit final accounting to Facilities

October 15 – debt annual reports due