Section 8 - Distribution of Perkins Funding and Financial Requirements

The Minnesota Perkins allocation is distributed statewide as follows:

  • 85 percent provided to Perkins consortia by formula
  • 10 percent retained for state leadership activities
  • 5 percent retained for state-level administration of the grant

The pie chart below reflects the percentage distribution of the Perkins V Title I funds.

Pie chart showing Perkins V Title I fund distribution: 85 percent formula distribution to local consortia, 10 percent for state leadership, and 5 percent for state administration.
Perkins V Title I Funding Distribution

According to the State Perkins Plan, funds awarded to consortia are split 50/50 between secondary and postsecondary. These funds are further subdivided into basic and reserve allocations. Minnesota designates a maximum of 15% of funds going to local consortia as “reserve.” Funds cannot be “rolled-over” at the local level from one fiscal year to the next, but must be recaptured by the State and reallocated in the following year through the formula process.

Distribution Formulas

Eighty-five percent of the Perkins state allocation is distributed to Minnesota consortia through a formula (Perkins V Act). This 85 percent is further subdivided into basic and reserve allocations. Under Perkins V law, states determine whether, and at what level, reserve funds are awarded, up to a maximum of 15 percent. Of the 85 percent, Minnesota allocates 85 percent to basic funds and 15 percent to reserve funds (Minnesota Perkins V State Plan).

Consortium Reserve Allocation

Under Perkins V, Section 112, reserve funds may be awarded to consortia in:

  • Rural areas
  • Areas with high percentages of CTE concentrators or CTE participants
  • Areas with high number of CTE concentrators or CTE participants
  • Areas with disparities or gaps in performance

Up to 15 percent of funds allocated to a consortium can be designated as reserve. Reserve funds are unique in that states may specify how consortia may use them. Minnesota awards reserve funds to:

  • foster innovation through the identification and promotion of promising and proven career and technical education programs, practices, and strategies, which may include programs, practices, and strategies that prepare individuals for nontraditional fields; or
  • promote the development, implementation, and adoption of programs of study or career pathways aligned with high-skill, high-wage, or in-demand occupations. Innovation can be defined for this purpose as something not previously used by a consortium or as a new approach taken within a consortium. Consortia must describe in the grant application how reserve funds will be used.

Reserve Formula (Sec 112)

There is only one formula to determine the reserve allocation for each consortium. This formula takes into account the following factors:

  • Square mileage of school districts within the consortium (50%)
  • Secondary participants for member districts (37.5%)
  • Postsecondary participants (12.5%)

These factors are compared to statewide totals. Results are multiplied by the total reserve allocation. The resulting subtotals are added together and split 50/50 to determine secondary and postsecondary reserve allocations for the consortium. Because the total consortium reserve allocation is determined first, then split 50/50, secondary and postsecondary reserve amounts are equal.

State Leadership Funds

Ten percent of the State allocation is used for state leadership activities (Perkins V, Section 112). These funds are split between secondary and postsecondary on a 42/58% basis. As the eligible agency, 亚洲无码 retains the larger amount to pay for additional costs, including support for the annual CTE Summit conference, the mentorship program, and uses required by law, including funds made available:

  • to serve individuals in State institutions, including State correctional institutions, juvenile justice facilities, and educational institutions that serve individuals with disabilities;
  • for services that prepare individuals for nontraditional training and employment;
  • for the recruitment of special populations to enroll in CTE programs;
  • for recruiting, preparing, or retaining CTE teachers, faculty, specialized instructional support personnel, or paraprofessionals; and
  • to support technical assistance to Perkins consortia.

State Administration Funds

Minnesota reserves five percent of the State allocation for State administration of the Perkins grant. Section 112(a)(3) of Perkins V allows Minnesota to set aside no more than five percent of the state’s allocation or $250,000, whichever is greater, for administration of the state plan. These dollars are limited to the following uses:

  • Developing the state plan
  • Reviewing local applications
  • Monitoring and evaluating program effectiveness
  • Assuring compliance with all applicable federal laws
  • Providing technical assistance
  • Supporting and developing state data systems relevant to the provisions of the Perkins V Act.

Dollars set aside for state administration must be matched on a dollar-for-dollar basis from non-federal sources.

亚洲无码 Financial System

亚洲无码 defines four parts to the finance process for college award recipients.

Part 2: Types of Categories

For each annual grant award, the System Office will assign unique general ledgers and Workday Grant Awards that must be used for the following categories with corresponding procedures:

Basic Grant – General Ledger (GL) and Workday Grant Award (AWD)

  • The System Office grants accountant will assign a general ledger number, Workday Grant Award, and Workday Grant Worktag for each new grant that is used throughout the entire two-year grant period. Year two refers to reallocated dollars.
  • One cost center must be established for basic funds.
  • Colleges must load budgets per awarded amounts into the Workday Grant Award. The total across all basic grant worktags must equal the award.
  • The local application must be approved by the State CTE Director for career and technical education before any obligation of basic expenses.
  • Per the Perkins V Act, 亚洲无码 will recapture unused funds at the close of the state fiscal year.

Reserve Funds – General Ledger (GL) and Workday Grant Award (AWD)

  • The System Office grants accountant will assign a general ledger number, Workday Grant Award, and Workday Grant Worktag for each new grant that is used throughout the entire two-year grant period. Year two refers to reallocated dollars.
  • One cost center must be established for reserve funds.
  • Colleges must load budgets per awarded amounts into the Workday Grant Award. The total across all reserve cost centers grant worktags must equal the award.
  • The local application must be approved by the State CTE Director for career and technical education before any obligation of reserve expenses.
  • Per the Perkins V Act, 亚洲无码 will recapture unused funds at the close of the state fiscal year.

Reallocated Funds – General Ledger (GL) and Workday Grant Award (AWD)

  • After the grant has been closed for the fiscal year, the 亚洲无码 System Office will recapture the unused basic and reserve funds from colleges and MDE (secondary funds). The recaptured funds are reallocated to local consortia through the formula process. The State CTE director will notify consortia of the reallocated awards as early as possible in the new year, usually by the end of February.
  • The previous year’s basic grant GL and Workday Grant Award will be reused for the reallocated basic grant GL and Workday Grant Award. The previous year’s reserve funds GL and Workday Grant Award will be reused for the reallocated reserve funds GL and Workday Grant Award.
  • One cost center for the basic reallocation grant must be set up under the reallocated basic grant GL. In addition, one cost center must be set up under the reallocated reserve funds GL.
  • Colleges must load the budgets per awarded amounts into the Workday Grant Award. The total across all cost centers grant worktags must equal the award.
  • Reallocation budgets must be approved by the State CTE director.
  • Per the Perkins V Act, unused reallocated funds will no longer be available to the consortium.

Leadership Fund Awards – General Ledger (GL) and Workday Grant Award (AWD)

  • Intra-Agency Agreements: The System Office and colleges sign agreements for specific leadership projects.
  • Colleges incur expenses covered by the agreement.
  • Depending on the agreement, colleges generate invoices and send them to the System Office once all or part of the expenses are incurred. The receivable should be set up with the unique Workday program worktag that was established for the expenditures. Accounts receivable needs to send an Intercompany Invoice to the System Office via the Workday system.
  • Upon receiving the remittance from the System Office, colleges receipt the funds to the outstanding receivable, recording an off-setting revenue.
  • Leadership expenditures are not included with the standard draw (See Part 3 below).

Sub-grant Agreements

Consortia, with more than one member college, should work with the 亚洲无码 business office for guidance on distributing Perkins funding from the college fiscal agent to the partner college.

Part 3: Fiscal Year Expenditure Timelines

Under the Perkins V Act, funds must be obligated and satisfied within the approved grant period. Perkins V does not allow carryover of unexpended funds from one fiscal year to the next. Minnesota requires that all expenditures, including administrative costs, be encumbered and received by June 30 of the local application fiscal year. Contact state staff if late payments or receipt of items after June 30 cannot be avoided.

Part 4: Expenditure Reimbursement Process (Draws)

Basic grant, reserve, and reallocated basic and reserve funds will be reimbursed as follows:

  1. Set up Workday grant worktag(s) with budget(s) totaling the award amount.
  2. System Office grants accountant reviews the Perkins grant worktags associated with the current fiscal year for all colleges and determines the amount eligible for reimbursement.
  3. System Office grants accountant requests a drawdown of Perkins funds from the Federal source.
  4. System Office grants accountant enters a deposit into SWIFT for the drawn amount.
  5. System Office grants accountant sends an email to the fiscal contacts of the amount of the SWIFT deposit, and receipt to the designated grant worktags.

MDE Financial System

Secondary programs are required to report expenditures using the Uniform Financial Accounting and Reporting System (UFARS) through the Minnesota Educational Grants System (MEGS) financial system.

MEGS is a password-protected website for members of secondary educational organizations who have received prior approval to submit grant applications and create budgets, approve transactions, request fund reimbursement, or simply view grant applications and the budget management process.

Utilizing the consortium approved combined budget, secondary fiscal agents will use the MEGS financial system to submit their Perkins budgets, and expenditures to MDE.

Once applications are approved, consortia will submit their expenditures through a drawdown request. Reimbursements will be made based upon the drawdown request.

Policy & Procedure History
Date of Implementation: 07/01/2026
Date of Last Review: 0/0/0