Section 4 AAC 31.023 - Grant or other financial assistance award, allocations, and conditions(a) Except as provided in (b) of this section, the department will not award a grant under AS 14.11.011 - AS 14.11.020 or allocate other financial assistance under AS 14.11.100 unless the application was approved by the State Board of Education and money adequate to complete the project, in the amount approved, is available after making grant awards or allocating other financial assistance to projects that have a higher priority ranking.(b) If, after providing money for grant or other financial assistance applications that have a higher priority, there is not enough money to pay for the next-priority project in total, a grant or other financial assistance will, in the department's discretion, be awarded or allocated in a lesser amount if (1) the district consents to a reduction in the scope of the project and the reduction in the scope of the project still results in accomplishing the project's objectives, or (2) the project is capable of being accomplished in phases. If the district does not consent to a reduction, and the project cannot be accomplished in phases, then the project that is next in order of priority will be considered for award of a grant or allocation of other financial assistance under (a) of this section and this subsection.(c) The department will, before the disbursement of grant or allocations of other financial assistance to a school district, require the execution of a grant or other financial assistance agreement, on a form prescribed by the commissioner, that contains the following conditions: (1) the project will be constructed and equipped under the requirements of 4 AAC 31.020(a), within the project budget determined under 4 AAC 31.022(e);(2) money will be disbursed as the parties agree to allow the accomplishment of stages in the project, such as site acquisition; design and construction; and to reimburse the district for money actually and necessarily spent, before the award of the grant or allocation of other financial assistance, (A) for application costs, planning costs, design costs, and construction costs incurred not more than 36 months before the initial submission of the grant or other financial assistance application with a substantially identical scope; and(B) site acquisition costs incurred not more than 120 months before the initial submission of the grant or other financial assistance application with a substantially identical scope for which the department has given its approval under 4 AAC 31.025;(3) the district's performance under the grant or other financial assistance is subject to financial audit at any time; the cost of an audit required by the state is an allowable cost of school construction;(4) the site for the school facility is approved under 4 AAC 31.025;(5) designers, commissioning agents, and construction managers of the facility shall be selected under 4 AAC 31.065;(6) construction shall be performed by contracts awarded under 4 AAC 31.080; and.(7) unless a district provides documented evidence of project-specific indirect administrative costs in excess of these limits, indirect administrative costs may not exceed (A) three percent of construction costs, if construction costs are $500,000 or less:(B) the greater of $15,000 or two percent of construction costs, if construction costs are over $500,000 but less than $5,000,000;(C) the greater of $100,000 or one percent of construction costs, if construction costs are $5,000,000 or more.(d) If a school district elects to provide the local share of a capital improvement project through an in-kind contribution of labor, material, or equipment, it shall provide notice to the department within 30 days after signing of the grant or other financial assistance agreement between the department and the school district. A description of the labor, material, or equipment must be included with its notice. The department will, in its discretion, approve or require a larger contribution of labor, material, or equipment. Additionally, the local share for new construction may be land if the land was acquired under the provisions of 4 AAC 31.025 and the district provides notice as described in this subsection. A school district aggrieved by the department's action under this subsection may appeal the decision under 4 AAC 40.010 - 4 AAC 40.050. (e) In (c) of this section, (1) "indirect administrative costs" means an allocable portion of administrative and operating expenses; and(2) "construction costs" means the cost of contracted work as well as force account for facility construction, site preparation, site improvements, and utilities.Eff. 8/31/90, Register 115; am 8/12/93, Register 127; am 4/17/98, Register 146; am 2/18/99, Register 149; am 11/28/2019, Register 232, January 2020Authority:AS 14.11.013
AS 14.11.015
AS 14.11.017
AS 14.11.100
AS 14.11.132