Section 111(a)(1) of the Rehabilitation Act makes clear that State Vocational Rehabilitation Services (VR) funds are allocated to each State to pay for costs incurred under the VR program. VR implementing regulations at 34 C.F.R. § 361.3 require State VR agencies to use VR program funds solely for the provision of VR services and the administration of the VR program. VR services are those provided to individuals with disabilities (Section 103(a) of the Rehabilitation Act and 34 C.F.R. § 361.48) and to groups of individuals (Section 103(b) of the Rehabilitation Act and 34 C.F.R. § 361.49). Section 103(b)(5) of the Rehabilitation Act and 34 C.F.R. § 361.49(a)(4) permit VR agencies to provide technical assistance (TA) services to businesses who are seeking to employ individuals with disabilities. Administrative costs, for purposes of the VR program, are defined at Section 7(1) of the Rehabilitation Act and 34 C.F.R. § 361.5(c)(2). Administrative costs include costs incurred when providing information about the VR program to the public or providing technical assistance and support services to other State agencies, private non-profit organizations, and businesses and industries (except for theTA to businesses described above as services to groups, which are VR services and not administrative costs) (Section 7(1)(C) and (D) of the Rehabilitation Act and 34 C.F.R. § 361.5(c)(2)(iii) and (iv)). When providing information to the public about the VR program or TA (regardless of whether the TA provided is a VR service or an administrative cost) and support services to other State agencies, private non-profit organizations, or businesses, State VR agencies may use VR grant funds, non-Federal funds for match purposes, or program income to pay for these expenditures under the VR program.
It is important to remember that when brochures and other information include or benefit multiple programs, the costs must be allocated to the programs accordingly. When issuing statements, press releases, requests for proposals, bid solicitations and other documents describing projects or programs funded in whole or in part with Federal money, U.S. Department of Education grantees shall clearly state the –
- Percentage of the total costs of the program or project which will be financed with Federal money;
- Dollar amount of Federal funds for the project or program; and
- Percentage and dollar amount of the total costs of the project or program that will be financed by non-governmental sources.
In this context, the term “other documents” means any document not covered by those specified (i.e., statements, press releases, requests for proposals, and bid solicitations) that describes programs or projects that are funded in whole or in part with Federal funds. This would include brochures disseminated by the VR agencies that describe the various services offered, brochures describing eligibility criteria for the VR program, or any other brochures, pamphlets, or documents that provide information about the VR program to VR applicants and consumers and the public, or TA to businesses. All such documents must satisfy the requirements set forth in Attachment 11 to the VR GAN regardless of whether they are disseminated in print or video format or electronically (including websites, webinars, and other electronic formats).
Generally speaking, Uniform Guidance at 2 C.F.R. § 200.467 indicates that costs of selling and marketing any products or services of the recipient are unallowable unless they are allowed under § 200.421 and are necessary to meet the requirements of the Federal award. The provision of information about the VR program, technical assistance, and support services is separate and distinct from certain advertising and public relations costs identified in Uniform Guidance and governed by 2 C.F.R. § 200.421. The provision of information about the VR program is focused on the provision of factual information about the VR program, such as the services it provides and the individuals it serves.
The provision of TA and support services involves providing consultative services – using the VR agency’s expertise in working with individuals with disabilities – to assist other entities in working with individuals with disabilities. With respect to outreach and advertising, Uniform guidance indicates allowable advertising costs include program outreach (e.g.,, recruiting project participants) and other specific purposes necessary to meet the requirements of the Federal award (2 C.F.R. § 200.421(b)(4)). Public relations, on the other hand, are those activities dedicated to maintaining relations with the community (2 C.F.R. § 200.421(c)). The Uniform Guidance at 2 C.F.R. § 200.421(e)(3) makes clear that the costs of promotional items are not allowable. Promotional items would include pens, notepads, cups, and other items with the VR agency’s logo that the agency uses to distribute to the public or businesses as a means of doing community outreach and ensuring good community relations. As such, the costs to produce these promotional items are not allowable under the VR program and, therefore, may not be paid for with VR grant funds, non-Federal funds for match purposes, or program income.
The information provided above is consistent with the Department’s interpretation of the Uniform Guidance requirements at 2 C.F.R. § 200.421(e)(3) and is applicable to all of RSA’s grant awards.