(a) The Secretary may make a continuation award for a budget period after the first budget period of an approved multi-year project if:
(1) The Congress has appropriated sufficient funds under the program;
(2) The grantee has either -
(i) Made substantial progress in achieving -
(A) The goals and objectives of the project; and
(B) If the Secretary established performance measurement requirements for the grant in the application notice, the performance targets in the grantee's approved application; or
(ii) Obtained the Secretary's approval for changes to the project that -
(A) Do not increase the amount of funds obligated to the project by the Secretary; and
(B) Enable the grantee to achieve the goals and objectives of the project and meet the performance targets of the project, if any, without changing the scope or objectives of the project.
(3) The recipient has submitted all reports as required by § 75.118, and
(4) Continuation of the project is in the best interest of the Federal Government.
(5) The grantee has maintained financial and administrative management systems that meet the requirements in 2 CFR 200.302, Financial management, and 200.303, Internal controls.
(b) In deciding whether a grantee has made substantial progress, the Secretary may consider any information relevant to the authorizing statute, a criterion, a priority, or a performance measure, or to a financial or other requirement that applies to the selection of applications for new grants.
(c) Subject to the criteria in paragraph (a) of this section, in selecting applications for funding under a program the Secretary gives priority to contination awards over new grants.
(1) Notwithstanding any regulatory requirements in 2 CFR part 200, a grantee may expend funds that have not been obligated at the end of a budget period for obligations of the subsequent budget period if -
(i) The obligation is for an allowable cost that falls within the scope and objectives of the project; and
(ii) ED regulations, including those in title 2 of the CFR, statutes, or the conditions of the grant do not prohibit the obligation.
See 2 CFR 200.308(d)(2).
(2) The Secretary may -
(i) Require the grantee to send a written statement describing how the funds made available under this section will be used; and
(ii) Determine the amount of new funds that the Department will make available for the subsequent budget period after considering the statement the grantee provides under paragraph (c)(2)(i) of this section or any other information available to the Secretary about the use of funds under the grant.
(3) In determining the amount of new funds to make available to a grantee under this section, the Secretary considers whether the unobligated funds made available are needed to complete activities that were planned for completion in the prior budget period.
(1) If the Secretary decides, under this section, not to make a continuation award, the Secretary may authorize a no-cost extension of the last budget period of the grant in order to provide for the orderly closeout of the grant.
(2) If the Secretary makes a continuation award under this section -
(i) The Secretary makes the award under §§ 75.231-75.236; and
(ii) The new budget period begins on the day after the previous budget period ends.
(f) Unless prohibited by the program statute or regulations, a grantee that is in the final budget period of its project period may seek continued assistance for the project as required under the procedures for selecting new projects for grants.
1. See Subpart C - How to Apply for a Grant.
[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 57 FR 30338, July 8, 1992; 59 FR 30261, June 10, 1994; 62 FR 40424, July 28, 1997; 78 FR 49354, Aug. 13, 2013; 79 FR 76092, Dec. 19, 2014]