ARRA Supplement-Supplant

All federal funds are used to supplement local programs and activities. Different programs have different criteria, however, the basic cost of implementing a program or an activity must be paid with state and local funds. In no case may the District supplant local funds by replacing local funds with federal funds.

This concept of supplementing vs. supplanting is specifically tested by the external auditors on an annual basis. All administrators controlling federal funds are reminded of this issue.

Documentation must be maintained which clearly demonstrates the supplementary nature of federal funds and/or activities, as appropriate.  The appropriate budget manager will review all requisitions for supplement/supplant issues prior to approval.

The test to determine if you are supplanting is to ask whether the programs supported with Special revenue funds would, in the absence of those funds, have been supported with state and local funds.

If your answer is yes, this is supplanting. State and local funds which previously funded activities may not be diverted to another purpose simply because Special revenue funds are available to support those activities.

If your answer is no, the funds are being used to supplement the educational program, not supplant state and local funds.

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Last modified: 11/09/2011