Question: CESA 6 says they fully intend to take back a server that was approved and paid with EANS funds. They said:
“We must note that since this device will be equipment since it will have a depreciated value over $5,000 on 9/30/2024 the WI EANS Program will not be able to transfer the title of it to your school since it is not a supply.
Please let us know if you want this approved with the understanding that you will need to return the server back to the State on 10/1/2024.”
This would dramatically upend our ability to serve our students. Can they do this? We are worried about our EANS acquisitions.
Answer: CESA 6’s answer is based on federal law that predates the pandemic and EANS. The law stipulates a “public control of funds” provision as well as specific disposition rules. Disposition rules are the regulations that outline what must be done with used items purchased with federal grant funds once the term of these grants ends. CESA 6 has to follow these laws. If they don’t, they, the DPI and you will be in trouble when USDE auditors come along to check the program. We’ve already been told Wisconsin may be audited. No information has been provided on where CESA or DPI is going to store used equipment from the EANS program once the grant term ends. The state legislature can’t fix this issue because it’s a federal law. Congress likely won’t change it because it’s not an easy cure. Every state is having this problem.
Your options:
- At the end of the program in 2024, your school may be able to buy the server from CESA 6 for the depreciated value. But if you’re going to have to spend money, you may want to buy a whole new one. You’ll have to budget for either option. Ensure CESA 6 will let you buy it for the depreciated value before this is an option to rely on. Also ask: How will they determine depreciation on the server/item? Get an answer in writing.
- Transfer the equipment to another eligible federal grant program that you are participating in through your local school district. If you do that, you’ll have to ensure that the server is actually used for that program and not other things. Title IV under ESEA is the most elastic, wide-ranging program. If you are not already participating in it, see if you can join for next school year (this is usually done in the spring via an annual “affirmation of consultation” form with the district) and work out the program practices so a server is needed.
However, keep in mind that “transferring the server to a different eligible federal program” is contingent. A server like this would likely not qualify as an allowable cost for a private school under any other annual federal program (ESEA/IDEA) because the server’s purpose is to support the technology at the school for general education purposes. ESEA/IDEA allowable costs cannot support the general education of private school students. Additionally, ESEA and IDEA have “supplement, not supplant” rules. A server would likely be considered “supplanting” because it would be assumed a private school would have a server already in order to operate their educational programs, especially if they have technology integrated into their programs.
