[Federal Register Volume 77, Number 197 (Thursday, October 11, 2012)]
[Notices]
[Pages 62090-62119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24990]



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Vol. 77

Thursday,

No. 197

October 11, 2012

Part VI





State Justice Institute





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Grant Guideline; Notice

  Federal Register / Vol. 77 , No. 197 / Thursday, October 11, 2012 / 
Notices  

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STATE JUSTICE INSTITUTE


Grant Guideline, Notice

AGENCY: State Justice Institute.

ACTION: Grant Guideline for FY 2013.

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SUMMARY: This Guideline sets forth the administrative, programmatic, 
and financial requirements attendant to Fiscal Year 2013 State Justice 
Institute grants, cooperative agreements, and contracts.

DATES: October 11, 2012.

FOR FURTHER INFORMATION CONTACT: Jonathan Mattiello, Executive 
Director, State Justice Institute, 11951 Freedom Drive, Suite 1020, 
Reston, VA 20190, 571-313-8843, [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to the State Justice Institute Act 
of 1984 (42 U.S.C. 10701, et seq.), SJI is authorized to award grants, 
cooperative agreements, and contracts to state and local courts, 
nonprofit organizations, and others for the purpose of improving the 
quality of justice in the state courts of the United States.
    The following Grant Guideline is adopted by the State Justice 
Institute for FY 2013.

Table of Contents

I. The Mission of the State Justice Institute
II. Eligibility for Award
III. Scope of the Program
IV. Grant Applications
V. Grant Application Review Procedures
VI. Compliance Requirements
VII. Financial Requirements
VIII. Grant Adjustments
     Appendix A Grant Application Forms
    [cir] Form A--Application and Application Instructions
    [cir] Form B--Certificate of State Approval and Instructions
    [cir] Form C--Project Budget and Instructions
    [cir] Form D--Assurances
    [cir] Form E--Disclosure of Lobbying Activities
 Appendix B Education Support Program (ESP) Application 
Forms (Forms ESP-1 and ESP-2)

I. The Mission of the State Justice Institute

    SJI was established by State Justice Institute Authorization Act of 
1984 (42 U.S.C. 10701 et seq.) to improve the administration of justice 
in the state courts of the United States. Incorporated in the State of 
Virginia as a private, nonprofit corporation, SJI is charged, by 
statute, with the responsibility to:
     Direct a national program of financial assistance designed 
to assure that each citizen of the United States is provided ready 
access to a fair and effective system of justice;
     Foster coordination and cooperation with the federal 
judiciary;
     Promote recognition of the importance of the separation of 
powers doctrine to an independent judiciary; and
     Encourage education for judges and support personnel of 
state court systems through national and state organizations.
    To accomplish these broad objectives, SJI is authorized to provide 
funding to state courts, national organizations which support and are 
supported by state courts, national judicial education organizations, 
and other organizations that can assist in improving the quality of 
justice in the state courts. SJI is supervised by a Board of Directors 
appointed by the President, with the advice and consent of the Senate. 
The Board is statutorily composed of six judges; a state court 
administrator; and four members of the public, no more than two can be 
of the same political party.
    Through the award of grants, contracts, and cooperative agreements, 
SJI is authorized to perform the following activities:
    A. Support technical assistance, demonstrations, special projects, 
research and training to improve the administration of justice in the 
state courts;
    B. Provide for the preparation, publication, and dissemination of 
information regarding state judicial systems;
    C. Participate in joint projects with federal agencies and other 
private grantors;
    D. Evaluate or provide for the evaluation of programs and projects 
to determine their impact upon the quality of criminal, civil, and 
juvenile justice and the extent to which they have contributed to 
improving the quality of justice in the state courts;
    E. Encourage and assist in furthering judicial education; and,
    F. Encourage, assist, and serve in a consulting capacity to state 
and local justice system agencies in the development, maintenance, and 
coordination of criminal, civil, and juvenile justice programs and 
services.

II. Eligibility for Award

    SJI is authorized by Congress to award grants, cooperative 
agreements, and contracts to the following entities and types of 
organizations:
    A. State and local courts and their agencies (42 U.S.C. 
10705(b)(1)(A)).
    B. National nonprofit organizations controlled by, operating in 
conjunction with, and serving the judicial branches of state 
governments (42 U.S.C. 10705(b)(1)(B)).
    C. National nonprofit organizations for the education and training 
of judges and support personnel of the judicial branch of state 
governments (42 U.S.C. 10705(b)(1)(C)). An applicant is considered a 
national education and training applicant under section 10705(b)(1)(C) 
if:
    1. The principal purpose or activity of the applicant is to provide 
education and training to state and local judges and court personnel; 
and
    2. The applicant demonstrates a record of substantial experience in 
the field of judicial education and training.
    D. Other eligible grant recipients (42 U.S.C. 10705 (b)(2)(A)-(D)).
    1. Provided that the objectives of the project can be served 
better, the Institute is also authorized to make awards to:
    a. Nonprofit organizations with expertise in judicial 
administration;
    b. Institutions of higher education;
    c. Individuals, partnerships, firms, corporations (for-profit 
organizations must waive their fees); and
    d. Private agencies with expertise in judicial administration.
    2. SJI may also make awards to state or local agencies and 
institutions other than courts for services that cannot be adequately 
provided through nongovernmental arrangements (42 U.S.C. 10705(b)(3)).
    E. Inter-agency Agreements. SJI may enter into inter-agency 
agreements with federal agencies (42 U.S.C. 10705(b)(4)) and private 
funders to support projects consistent with the purposes of the State 
Justice Institute Act.
    SJI is prohibited from awarding grants to federal, tribal, and 
international courts.

III. Scope of the Program

    SJI is offering six types of grants in FY 2013: Project Grants, 
Technical Assistance (TA) Grants, Curriculum Adaptation and Training 
(CAT) Grants, Partner Grants, Strategic Initiatives Grants (SIG) 
Program, and the Education Support Program (ESP).
    The SJI Board of Directors has established Priority Investment 
Areas for grant funding. SJI will allocate significant financial 
resources through grant-making for these Priority Investment Areas (in 
no ranking order):
     Limited English Proficiency (LEP)--e.g., interpretation 
service plans, remove interpretation (outside the courtroom), 
interpreter certification, courtroom services (plain language forms, 
Web sites, etc.).
     Self-Represented Litigation--e.g., court-operated self-
help centers, online services, training.

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     Reengineering in Response to Budget Reductions--e.g., the 
process of court reengineering, regionalization or centralization of 
services, structural changes, the electronic record.
     Human Trafficking and the State Courts--e.g., technical 
assistance/training, trafficking victim identification and assistance.
     Immigration Issues in the State Courts--e.g., impact of 
federal and state immigration law and policies, juvenile and family 
issues, technical assistance/training.
     Guardianship, Conservatorship, and Elder Issues--e.g., 
court visitor programs, electronic reporting, reports, technical 
assistance/training.
    The Priority Investment Areas replace the former Special Interest 
Categories for Project Grants in many ways--most importantly in that 
they apply to ALL grant types (with the exception of the Education 
Support Program). SJI strongly encourages potential grant applicants to 
consider projects addressing one or more of these Priority Investment 
Areas.

A. Project Grants

    Project Grants are intended to support innovative education and 
training, research and evaluation, demonstration, and technical 
assistance projects that can improve the administration of justice in 
state courts locally or nationwide. Project Grants may ordinarily not 
exceed $300,000. Examples of expenses not covered by Project Grants 
include the salaries, benefits, or travel of full-or part-time court 
employees. Grant periods for Project Grants ordinarily may not exceed 
36 months.
    Applicants for Project Grants will be required to contribute a cash 
match of not less than 50 percent of the total cost of the proposed 
project. In other words, grant awards by SJI must be matched at least 
dollar for dollar by grant applicants. Applicants may contribute the 
required cash match directly or in cooperation with third parties. 
Prospective applicants should carefully review Section VI.8. (matching 
requirements) and Section VI.16.a. (non-supplantation) of the Guideline 
prior to beginning the application process. If questions arise, 
applicants are strongly encouraged to consult SJI.
    A temporary reduced cash match process is available for state 
courts submitting Project Grant applications. The use of this cash 
match reduction authority is intended to help the state courts in this 
climate of severe budget reductions. The process requires the state 
court to formally request a reduced cash match, and that the request be 
certified by the chief justice of that state. The state court must 
explain in detail how it is facing budgetary cutbacks that will result 
in significant reductions in other services, and why it will be unable 
to undertake the project without a cash match reduction. This must be 
described in detail in the application and verified by the chief 
justice of that state. Only state courts may apply for a cash match 
reduction.
    Applicants should examine their projected project costs closely, 
and if they are unable to cover half the costs of the project, they may 
apply for a reduction in cash match. Applicants are strongly encouraged 
to provide as much cash match as possible in their application, as some 
cash match contribution is still required.
    Applicants are also encouraged to provide the percentage of budget 
reductions in their court(s), and the measures that have been taken by 
the jurisdiction/state to handle the budget shortfalls. This may 
include staff reductions, as well as reductions in services and 
programs. Some cash contribution is still required for Project Grants, 
and should be reflected in the budget proposal for the project. For 
example, if the total cost of the proposed project is $100,000, the 
normal cash match would be $50,000. However, if the applicant is unable 
to provide $50,000 for the activities, but is able to contribute 
$25,000, the budget should show the request to SJI totaling $75,000, 
with the cash match of $25,000.
    As set forth in Section I., SJI is authorized to fund projects 
addressing a broad range of program areas. Funding will not be made 
available for the ordinary, routine operations of court systems.

B. Technical Assistance (TA) Grants

    TA Grants are intended to provide state or local courts, or 
regional court associations, with sufficient support to obtain expert 
assistance to diagnose a problem, develop a response to that problem, 
and implement any needed changes. TA Grants may not exceed $50,000. 
Examples of expenses not covered by TA Grants include the salaries, 
benefits, or travel of full- or part-time court employees. Grant 
periods for TA Grants ordinarily may not exceed 24 months. In 
calculating project duration, applicants are cautioned to fully 
consider the time required to issue a request for proposals, negotiate 
a contract with the selected provider, and execute the project.
    Applicants for TA Grants will be required to contribute a total 
match of not less than 50 percent of the grant amount requested, of 
which 20 percent must be cash. In other words, an applicant seeking a 
$50,000 TA grant must provide a $25,000 match, of which up to $20,000 
can be in-kind and not less than $5,000 must be cash. TA Grant 
application procedures can be found in section IV.B.

C. Curriculum Adaptation and Training (CAT) Grants

    CAT Grants are intended to: (1) Enable courts and regional or 
national court associations to modify and adapt model curricula, course 
modules, or conference programs to meet states' or local jurisdictions' 
educational needs; train instructors to present portions or all of the 
curricula; and pilot-test them to determine their appropriateness, 
quality, and effectiveness, or (2) conduct judicial branch education 
and training programs, led by either expert or in-house personnel, 
designed to prepare judges and court personnel for innovations, 
reforms, and/or new technologies recently adopted by grantee courts. 
CAT Grants may not exceed $30,000. Examples of expenses not covered by 
CAT Grants include the salaries, benefits, or travel of full- or part-
time court employees. Grant periods for CAT Grants ordinarily may not 
exceed 12 months.
    Applicants for CAT Grants will be required to contribute a match of 
not less than 50 percent of the grant amount requested, of which 20 
percent must be cash. In other words, an applicant seeking a $30,000 
CAT grant must provide a $15,000 match, of which up to $12,000 can be 
in-kind and not less than $3,000 must be cash. CAT Grant application 
procedures can be found in section IV.C.

D. Partner Grants

    Partner Grants are intended to allow SJI and federal, state, or 
local agencies or foundations, trusts, or other private entities to 
combine financial resources in pursuit of common interests. SJI and its 
financial partners may set any level for Partner Grants, subject to the 
entire amount of the grant being available at the time of the award. 
Grant periods for Partner Grants ordinarily may not exceed 36 months.
    Partner Grants are subject to the same cash match requirement as 
Project Grants. In other words, grant awards by SJI must be matched at 
least dollar-for-dollar. Partner Grants are coordinated by the funding 
organizations. Partner Grant application procedures can be found in 
section IV.E.

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E. Strategic Initiatives Grants

    The Strategic Initiatives Grants (SIG) program provides SJI with 
the flexibility to address national court issues as they occur, and 
develop solutions to those problems. This is an innovative approach 
where SJI uses its expertise and the expertise and knowledge of its 
grantees to address key issues facing state courts across the United 
States.
    The funding is used for grants or contractual services, and any 
remaining balance not used for the SIG program will become available 
for SJI's other grant programs. The program is handled at the 
discretion of the SJI Board of Directors and staff outside the normal 
grant application process (i.e., SJI will initiate the project).

F. Education Support Program (ESP) for Judges and Court Managers

    The new Education Support Program (ESP), formally the Scholarship 
Program, is intended to enhance the skills, knowledge, and abilities of 
state court judges and court managers by enabling them to attend out-
of-state, or to enroll in online, educational and training programs 
sponsored by national and state providers that they could not otherwise 
attend or take online because of limited state, local, and personal 
budgets. An ESP award only covers the cost of tuition up to a maximum 
of $1,000 per award. ESP application procedures can be found in section 
IV.D.

IV. Grant Applications

A. Project Grants

    An application for a Project Grant must include an application 
form; budget forms (with appropriate documentation); a project abstract 
and program narrative; a disclosure of lobbying form, when applicable; 
and certain certifications and assurances (see below). See Appendix B 
for the Project Grant application forms.
1. Forms
a. Application Form (Form A)
    The application form requests basic information regarding the 
proposed project, the applicant, and the total amount of funding 
requested from SJI. It also requires the signature of an individual 
authorized to certify on behalf of the applicant that the information 
contained in the application is true and complete; that submission of 
the application has been authorized by the applicant; and that if 
funding for the proposed project is approved, the applicant will comply 
with the requirements and conditions of the award, including the 
assurances set forth in Form D.
b. Certificate of State Approval (Form B)
    An application from a state or local court must include a copy of 
Form B signed by the state's chief justice or state court 
administrator. The signature denotes that the proposed project has been 
approved by the state's highest court or the agency or council it has 
designated. It denotes further that, if applicable, a cash match 
reduction has been requested, and that if SJI approves funding for the 
project, the court or the specified designee will receive, administer, 
and be accountable for the awarded funds.
c. Budget Form (Form C)
    Applicants must submit a Form C. In addition, applicants must 
provide a detailed budget narrative providing an explanation of the 
basis for the estimates in each budget category (see subsection A.4. 
below).
    If funds from other sources are required to conduct the project, 
either as match or to support other aspects of the project, the source, 
current status of the request, and anticipated decision date must be 
provided.
d. Assurances (Form D)
    This form lists the statutory, regulatory, and policy requirements 
with which recipients of Institute funds must comply.
e. Disclosure of Lobbying Activities (Form E)
    Applicants other than units of state or local government are 
required to disclose whether they, or another entity that is part of 
the same organization as the applicant, have advocated a position 
before Congress on any issue, and to identify the specific subjects of 
their lobbying efforts (see section VI.A.7.).
2. Project Abstract
    The abstract should highlight the purposes, goals, methods, and 
anticipated benefits of the proposed project. It should not exceed 1 
single-spaced page on 8\1/2\ by 11 inch paper.
3. Program Narrative
    The program narrative for an application may not exceed 25 double-
spaced pages on 8\1/2\ by 11 inch paper. Margins must be at least 1 
inch, and type size must be at least 12-point and 12 cpi. The pages 
should be numbered. This page limit does not include the forms, the 
abstract, the budget narrative, and any appendices containing resumes 
and letters of cooperation or endorsement. Additional background 
material should be attached only if it is essential to impart a clear 
understanding of the proposed project. Numerous and lengthy appendices 
are strongly discouraged.
    The program narrative should address the following topics:
a. Project Objectives
    The applicant should include a clear, concise statement of what the 
proposed project is intended to accomplish. In stating the objectives 
of the project, applicants should focus on the overall programmatic 
objective (e.g., to enhance understanding and skills regarding a 
specific subject, or to determine how a certain procedure affects the 
court and litigants) rather than on operational objectives (e.g., 
provide training for 32 judges and court managers, or review data from 
300 cases).
    The applicant must describe how the proposed project addresses one 
or more Priority Investment Areas. If the project does not address one 
or more Priority Investment Areas, the applicant must provide an 
explanation why not.
b. Need for the Project
    If the project is to be conducted in any specific location(s), the 
applicant should discuss the particular needs of the project site(s) to 
be addressed by the project and why those needs are not being met 
through the use of existing programs, procedures, services, or other 
resources.
    If the project is not site-specific, the applicant should discuss 
the problems that the proposed project would address, and why existing 
programs, procedures, services, or other resources cannot adequately 
resolve those problems. In addition, the applicant should describe how, 
if applicable, the project will be sustained in the future through 
existing resources.
    The discussion should include specific references to the relevant 
literature and to the experience in the field. SJI continues to make 
all grant reports and most grant products available online through the 
National Center for State Courts (NCSC) Library and Digital Archive. 
Applicants are required to conduct a search of the NCSC Library and 
Digital Archive on the topic areas they are addressing. This search 
should include SJI-funded grants, and previous projects not supported 
by SJI. Searches for SJI grant reports and other state court resources 
begin with the NCSC Library section. Applicants must discuss the 
results of their research; how they plan to incorporate the previous 
work into their proposed project; and if the project will differentiate 
from prior work.

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c. Tasks, Methods and Evaluations
    (1) Tasks and Methods. The applicant should delineate the tasks to 
be performed in achieving the project objectives and the methods to be 
used for accomplishing each task. For example:
    (a) For research and evaluation projects, the applicant should 
include the data sources, data collection strategies, variables to be 
examined, and analytic procedures to be used for conducting the 
research or evaluation and ensuring the validity and general 
applicability of the results. For projects involving human subjects, 
the discussion of methods should address the procedures for obtaining 
respondents' informed consent, ensuring the respondents' privacy and 
freedom from risk or harm, and protecting others who are not the 
subjects of research but would be affected by the research. If the 
potential exists for risk or harm to human subjects, a discussion 
should be included that explains the value of the proposed research and 
the methods to be used to minimize or eliminate such risk.
    (b) For education and training projects, the applicant should 
include the adult education techniques to be used in designing and 
presenting the program, including the teaching/learning objectives of 
the educational design, the teaching methods to be used, and the 
opportunities for structured interaction among the participants; how 
faculty would be recruited, selected, and trained; the proposed number 
and length of the conferences, courses, seminars, or workshops to be 
conducted and the estimated number of persons who would attend them; 
the materials to be provided and how they would be developed; and the 
cost to participants.
    (c) For demonstration projects, the applicant should include the 
demonstration sites and the reasons they were selected, or if the sites 
have not been chosen, how they would be identified and their 
cooperation obtained; and how the program or procedures would be 
implemented and monitored.
    (d) For technical assistance projects, the applicant should explain 
the types of assistance that would be provided; the particular issues 
and problems for which assistance would be provided; the type of 
assistance determined; how suitable providers would be selected and 
briefed; and how reports would be reviewed.
    (2) Evaluation. Projects should include an evaluation plan to 
determine whether the project met its objectives. The evaluation should 
be designed to provide an objective and independent assessment of the 
effectiveness or usefulness of the training or services provided; the 
impact of the procedures, technology, or services tested; or the 
validity and applicability of the research conducted. The evaluation 
plan should be appropriate to the type of project proposed.
d. Project Management
    The applicant should present a detailed management plan, including 
the starting and completion date for each task; the time commitments to 
the project of key staff and their responsibilities regarding each 
project task; and the procedures that would ensure that all tasks are 
performed on time, within budget, and at the highest level of quality. 
In preparing the project time line, Gantt Chart, or schedule, 
applicants should make certain that all project activities, including 
publication or reproduction of project products and their initial 
dissemination, would occur within the proposed project period. The 
management plan must also provide for the submission of Quarterly 
Progress and Financial Reports within 30 days after the close of each 
calendar quarter (i.e., no later than January 30, April 30, July 30, 
and October 30), per section VI.A.13.
    Applicants should be aware that SJI is unlikely to approve a 
limited extension of the grant period without strong justification. 
Therefore, the management plan should be as realistic as possible and 
fully reflect the time commitments of the proposed project staff and 
consultants.
e. Products
    The program narrative in the application should contain a 
description of the product(s) to be developed (e.g., training curricula 
and materials, Web sites or other electronic multimedia, articles, 
guidelines, manuals, reports, handbooks, benchbooks, or books), 
including when they would be submitted to SJI. The budget should 
include the cost of producing and disseminating the product to the 
state chief justice, state court administrator, and other appropriate 
judges or court personnel. If final products involve electronic 
formats, the applicant should indicate how the product would be made 
available to other courts. Discussion of this dissemination process 
should occur between the grantee and SJI prior to the final selection 
of the dissemination process to be used.
    (1) Dissemination Plan. The application must explain how and to 
whom the products would be disseminated; describe how they would 
benefit the state courts, including how they could be used by judges 
and court personnel; identify development, production, and 
dissemination costs covered by the project budget; and present the 
basis on which products and services developed or provided under the 
grant would be offered to the court community and the public at large 
(i.e., whether products would be distributed at no cost to recipients, 
or if costs are involved, the reason for charging recipients and the 
estimated price of the product) (see section VI.A.11.b.). Ordinarily, 
applicants should schedule all product preparation and distribution 
activities within the project period.
    Applicants proposing to develop Web-based products should provide 
for sending a notice and description of the document to the appropriate 
audiences to alert them to the availability of the Web site or 
electronic product (i.e., a written report with a reference to the Web 
site).
    Three (3) copies of all project products should be submitted to 
SJI, along with an electronic version in HTML or PDF format. 
Discussions of final product dissemination should be conducted with SJI 
prior to the end of the grant period.
    (2) Types of Products. The type of product to be prepared depends 
on the nature of the project. For example, in most instances, the 
products of a research, evaluation, or demonstration project should 
include an article summarizing the project findings that is publishable 
in a journal serving the courts community nationally, an executive 
summary that would be disseminated to the project's primary audience, 
or both. Applicants proposing to conduct empirical research or 
evaluation projects with national import should describe how they would 
make their data available for secondary analysis after the grant period 
(see section VI.A.14.a.).
    The curricula and other products developed through education and 
training projects should be designed for use by others and again by the 
original participants in the course of their duties.
    (3) SJI Review. Applicants must submit a final draft of all written 
grant products to SJI for review and approval at least 30 days before 
the products are submitted for publication or reproduction. For 
products in Web site or multimedia format, applicants must provide for 
SJI review of the product at the treatment, script, rough-cut, and 
final stages of development, or their equivalents. No grant funds may 
be obligated for publication or

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reproduction of a final grant product without the written approval of 
SJI (see section VI.A.11.f.).
    (4) Acknowledgment, Disclaimer, and Logo. Applicants must also 
include in all project products a prominent acknowledgment that support 
was received from SJI and a disclaimer paragraph based on the example 
provided in section VI.A.11.a.2. in the Grant Guideline. The ``SJI'' 
logo must appear on the front cover of a written product, or in the 
opening frames of a Web site or other multimedia product, unless SJI 
approves another placement. The SJI logo can be downloaded from SJI's 
Web site: www.sji.gov.
f. Applicant Status
    An applicant that is not a state or local court and has not 
received a grant from SJI within the past three years should indicate 
whether it is either a national non-profit organization controlled by, 
operating in conjunction with, and serving the judicial branches of 
state governments, or a national non-profit organization for the 
education and training of state court judges and support personnel (see 
section II). If the applicant is a non-judicial unit of federal, state, 
or local government, it must explain whether the proposed services 
could be adequately provided by non-governmental entities.
g. Staff Capability
    The applicant should include a summary of the training and 
experience of the key staff members and consultants that qualify them 
for conducting and managing the proposed project. Resumes of identified 
staff should be attached to the application. If one or more key staff 
members and consultants are not known at the time of the application, a 
description of the criteria that would be used to select persons for 
these positions should be included. The applicant also should identify 
the person who would be responsible for managing and reporting on the 
financial aspects of the proposed project.
h. Organizational Capacity
    Applicants that have not received a grant from SJI within the past 
three years should include a statement describing their capacity to 
administer grant funds, including the financial systems used to monitor 
project expenditures (and income, if any), and a summary of their past 
experience in administering grants, as well as any resources or 
capabilities that they have that would particularly assist in the 
successful completion of the project.
    Unless requested otherwise, an applicant that has received a grant 
from SJI within the past three years should describe only the changes 
in its organizational capacity, tax status, or financial capability 
that may affect its capacity to administer a grant.
    If the applicant is a non-profit organization (other than a 
university), it must also provide documentation of its 501(c) tax-
exempt status as determined by the Internal Revenue Service and a copy 
of a current certified audit report. For purposes of this requirement, 
``current'' means no earlier than two years prior to the present 
calendar year.
    If a current audit report is not available, SJI will require the 
organization to complete a financial capability questionnaire, which 
must be signed by a certified public accountant. Other applicants may 
be required to provide a current audit report, a financial capability 
questionnaire, or both, if specifically requested to do so by the 
Institute.
i. Statement of Lobbying Activities
    Non-governmental applicants must submit SJI's Disclosure of 
Lobbying Activities Form, which documents whether they, or another 
entity that is a part of the same organization as the applicant, have 
advocated a position before Congress on any issue, and identifies the 
specific subjects of their lobbying efforts (see Appendix A).
j. Letters of Cooperation or Support
    If the cooperation of courts, organizations, agencies, or 
individuals other than the applicant is required to conduct the 
project, the applicant should attach written assurances of cooperation 
and availability to the application, or send them under separate cover. 
Letters of general support for a project are also encouraged.
4. Budget Narrative
    In addition to Project Grant applications, the following section 
also applies to Technical Assistance and Curriculum Adaptation and 
Training grant applications.
    The budget narrative should provide the basis for the computation 
of all project-related costs. When the proposed project would be 
partially supported by grants from other funding sources, applicants 
should make clear what costs would be covered by those other grants. 
Additional background information or schedules may be attached if they 
are essential to obtaining a clear understanding of the proposed 
budget. Numerous and lengthy appendices are strongly discouraged.
    The budget narrative should cover the costs of all components of 
the project and clearly identify costs attributable to the project 
evaluation. Grant funds may not be used to purchase alcoholic 
beverages.
a. Justification of Personnel Compensation
    The applicant should set forth the percentages of time to be 
devoted by the individuals who would staff the proposed project, the 
annual salary of each of those persons, and the number of work days per 
year used for calculating the percentages of time or daily rates of 
those individuals. The applicant should explain any deviations from 
current rates or established written organizational policies. No grant 
funds or cash match may be used to pay the salary and related costs for 
a current or new employee of a court or other unit of government 
because such funds would constitute a supplantation of state or local 
funds in violation of 42 U.S.C. 10706(d)(1); this includes new 
employees hired specifically for the project. The salary and any 
related costs for a current or new employee of a court or other unit of 
government may only be accepted as in-kind match.
b. Fringe Benefit Computation
    For non-governmental entities, the applicant should provide a 
description of the fringe benefits provided to employees. If 
percentages are used, the authority for such use should be presented, 
as well as a description of the elements included in the determination 
of the percentage rate.
c. Consultant/Contractual Services and Honoraria
    The applicant should describe the tasks each consultant would 
perform, the estimated total amount to be paid to each consultant, the 
basis for compensation rates (e.g., the number of days multiplied by 
the daily consultant rates), and the method for selection. Rates for 
consultant services must be set in accordance with section VII.I.2.c. 
Prior written SJI approval is required for any consultant rate in 
excess of $800 per day; SJI funds may not be used to pay a consultant 
more than $1,100 per day. Honorarium payments must be justified in the 
same manner as consultant payments.
d. Travel
    Transportation costs and per diem rates must comply with the 
policies of the applicant organization. If the applicant does not have 
an established

[[Page 62095]]

travel policy, then travel rates must be consistent with those 
established by the federal government. The budget narrative should 
include an explanation of the rate used, including the components of 
the per diem rate and the basis for the estimated transportation 
expenses. The purpose of the travel should also be included in the 
narrative.
e. Equipment
    Grant funds may be used to purchase only the equipment necessary to 
demonstrate a new technological application in a court or that is 
otherwise essential to accomplishing the objectives of the project. In 
other words, grant funds cannot be used strictly for the purpose of 
purchasing equipment. Equipment purchases to support basic court 
operations ordinarily will not be approved. The applicant should 
describe the equipment to be purchased or leased and explain why the 
acquisition of that equipment is essential to accomplish the project's 
goals and objectives. The narrative should clearly identify which 
equipment is to be leased and which is to be purchased. The method of 
procurement should also be described. Purchases of automated data 
processing equipment must comply with section VII.I.2.b.
f. Supplies
    The applicant should provide a general description of the supplies 
necessary to accomplish the goals and objectives of the grant. In 
addition, the applicant should provide the basis for the amount 
requested for this expenditure category.
g. Construction
    Construction expenses are prohibited except for the limited 
purposes set forth in section VI.A.16.b. Any allowable construction or 
renovation expense should be described in detail in the budget 
narrative.
h. Postage
    Anticipated postage costs for project-related mailings, including 
distribution of the final product(s), should be described in the budget 
narrative. The cost of special mailings, such as for a survey or for 
announcing a workshop, should be distinguished from routine operational 
mailing costs. The bases for all postage estimates should be included 
in the budget narrative.
i. Printing/Photocopying
    Anticipated costs for printing or photocopying project documents, 
reports, and publications should be included in the budget narrative, 
along with the bases used to calculate these estimates.
j. Indirect Costs
    Indirect costs are only applicable to organizations that are not 
state courts or government agencies. Recoverable indirect costs are 
limited to no more than 75 percent of a grantee's direct personnel 
costs; i.e., salaries plus fringe benefits (see section VII.I.4.).
    Applicants should describe the indirect cost rates applicable to 
the grant in detail. If costs often included within an indirect cost 
rate are charged directly (e.g., a percentage of the time of senior 
managers to supervise project activities), the applicant should specify 
that these costs are not included within its approved indirect cost 
rate. These rates must be established in accordance with section 
VII.I.4. If the applicant has an indirect cost rate or allocation plan 
approved by any federal granting agency, a copy of the approved rate 
agreement must be attached to the application.
5. Submission Requirements
    a. Every applicant must submit an original and three copies of the 
application package consisting of Form A; Form B, if the application is 
from a state or local court, or a Disclosure of Lobbying Form (Form E), 
if the applicant is not a unit of state or local government; Form C; 
the Application Abstract; the Program Narrative; the Budget Narrative; 
and any necessary appendices.
    Letters of application may be submitted at any time. However, 
applicants are encouraged to review the grant deadlines available on 
the SJI Web site. Receipt of each application will be acknowledged by 
letter or email.
    b. Applicants submitting more than one application may include 
material that would be identical in each application in a cover letter. 
This material will be incorporated by reference into each application 
and counted against the 25-page limit for the program narrative. A copy 
of the cover letter should be attached to each copy of the application.

B. Technical Assistance (TA) Grants

1. Application Procedures
    Applicants for TA Grants may submit an original and three copies of 
a detailed letter describing the proposed project, as well as a Form A, 
``State Justice Institute Application'' (see Appendix B) and Form B, 
Certificate of State Approval from the State Supreme Court, or its 
designated agency and Form C, ``Project Budget in Tabular Format.'' 
Letters from regional court associations must be signed by the 
president of the association.
2. Application Format
    Although there is no prescribed form for the letter, or a minimum 
or maximum page limit, letters of application should include the 
following information:
    a. Need for Funding. The applicant must explain the critical need 
facing the applicant, and the proposed technical assistance enable the 
applicant to meet this critical need. The applicant must also explain 
why state or local resources are not sufficient to fully support the 
costs of the project. In addition, the applicant should describe how, 
if applicable, the project will be sustained in the future through 
existing resources.
    The discussion should include specific references to the relevant 
literature and to the experience in the field. SJI continues to make 
all grant reports and most grant products available online through the 
National Center for State Courts (NCSC) Library and Digital Archive. 
Applicants are required to conduct a search of the NCSC Library and 
Digital Archive on the topic areas they are addressing. This search 
should include SJI-funded grants, and previous projects not supported 
by SJI. Searches for SJI grant reports and other state court resources 
begin with the NCSC Library section. Applicants must discuss the 
results of their research; how they plan to incorporate the previous 
work into their proposed project; and if the project will differentiate 
from prior work.
    b. Project Description. The applicant must describe how the 
proposed project addressed one or more Priority Investment Areas. If 
the project does not address one or more Priority Investment Areas, the 
applicant must provide an explanation why not.
    The applicant must describe the tasks the consultant will perform, 
and how would they be accomplished. In addition, the applicant must 
identify which organization or individual will be hired to provide the 
assistance, and how the consultant was selected. If a consultant has 
not yet been identified, what procedures and criteria would be used to 
select the consultant (applicants are expected to follow their 
jurisdictions' normal procedures for procuring consultant services)? 
What specific tasks would the consultant(s) and court staff undertake? 
What is the schedule for completion of each required task and the 
entire project? How would the applicant oversee the project and provide 
guidance to the consultant, and who at the court or

[[Page 62096]]

regional court association would be responsible for coordinating all 
project tasks and submitting quarterly progress and financial status 
reports?
    If the consultant has been identified, the applicant should provide 
a letter from that individual or organization documenting interest in 
and availability for the project, as well as the consultant's ability 
to complete the assignment within the proposed time frame and for the 
proposed cost. The consultant must agree to submit a detailed written 
report to the court and SJI upon completion of the technical 
assistance.
    c. Likelihood of Implementation. What steps have been or would be 
taken to facilitate implementation of the consultant's recommendations 
upon completion of the technical assistance? For example, if the 
support or cooperation of specific court officials or committees, other 
agencies, funding bodies, organizations, or a court other than the 
applicant would be needed to adopt the changes recommended by the 
consultant and approved by the court, how would they be involved in the 
review of the recommendations and development of the implementation 
plan?
3. Budget and Matching State Contribution
    Applicants must follow the same guidelines provided under Section 
IV.A.4. A completed Form C ``Project Budget, Tabular Format'' and 
budget narrative must be included with the letter requesting technical 
assistance.
    The budget narrative should provide the basis for all project-
related costs, including the basis for determining the estimated 
consultant costs, if compensation of the consultant is required (e.g., 
the number of days per task times the requested daily consultant rate). 
Applicants should be aware that consultant rates above $800 per day 
must be approved in advance by SJI, and that no consultant will be paid 
more than $1,100 per day from SJI funds. In addition, the budget should 
provide for submission of two copies of the consultant's final report 
to the SJI.
    Recipients of TA Grants do not have to submit an audit report but 
must maintain appropriate documentation to support expenditures (see 
section VI.A.3.).
4. Submission Requirements
    Letters of application should be submitted according to the grant 
deadlines provided on the SJI Web site.
    If the support or cooperation of agencies, funding bodies, 
organizations, or courts other than the applicant would be needed in 
order for the consultant to perform the required tasks, written 
assurances of such support or cooperation should accompany the 
application letter. Letters of general support for the project are also 
encouraged. Support letters also may be submitted under separate cover; 
however, they should be received by the same date as the application.

C. Curriculum Adaptation and Training (CAT) Grants

1. Application Procedures
    In lieu of formal applications, applicants should submit an 
original and three photocopies of a detailed letter as well as a Form 
A, ``State Justice Institute Application;'' Form B, ``Certificate of 
State Approval;'' and Form C, ``Project Budget, Tabular Format'' (see 
Appendices).
2. Application Format
    Although there is no prescribed format for the letter, or a minimum 
or maximum page limit, letters of application should include the 
following information.
    a. For adaptation of a curriculum:
    (1) Project Description. The applicant must describe how the 
proposed project addresses one or more Priority Investment Areas. If 
the project does not address one or more Priority Investment Areas, the 
applicant must provide an explanation why not. Due to the high costs of 
travel to attend training events, the innovative use of distance 
learning is highly encouraged.
    The applicant must provide the title of the curriculum that will be 
adapted, and identify the entity that originally developed the 
curriculum. The applicant must also address the following questions: 
Why is this education program needed at the present time? What are the 
project's goals? What are the learning objectives of the adapted 
curriculum? What program components would be implemented, and what 
types of modifications, if any, are anticipated in length, format, 
learning objectives, teaching methods, or content? Who would be 
responsible for adapting the model curriculum? Who would the 
participants be, how many would there be, how would they be recruited, 
and from where would they come (e.g., from a single local jurisdiction, 
from across the state, from a multi-state region, from across the 
nation)?
    (2) Need for Funding. The discussion should include specific 
references to the relevant literature and to the experience in the 
field. SJI continues to make all grant reports and most grant products 
available online through the National Center for State Courts (NCSC) 
Library and Digital Archive. Applicants are required to conduct a 
search of the NCSC Library and Digital Archive on the topic areas they 
are addressing. This search should include SJI-funded grants, and 
previous projects not supported by SJI. Searches for SJI grant reports 
and other state court resources begin with the NCSC Library section. 
Applicants must discuss the results of their research; how they plan to 
incorporate the previous work into their proposed project; and if the 
project will differentiate from prior work.
    The applicant should explain why state or local resources are 
unable to fully support the modification and presentation of the model 
curriculum. The applicant should also describe the potential for 
replicating or integrating the adapted curriculum in the future using 
state or local funds, once it has been successfully adapted and tested. 
In addition, the applicant should describe how, if applicable, the 
project will be sustained in the future through existing resources.
    (3) Likelihood of Implementation. The applicant should provide the 
proposed timeline, including the project start and end dates, the 
date(s) the judicial branch education program will be presented, and 
the process that will be used to modify and present the program. The 
applicant should also identify who will serve as faculty, and how they 
were selected, in addition to the measures taken to facilitate 
subsequent presentations of the program. Ordinarily, an independent 
evaluation of a curriculum adaptation project is not required; however, 
the results of any evaluation should be included in the final report.
    (4) Expressions of Interest by Judges and/or Court Personnel. Does 
the proposed program have the support of the court system or 
association leadership, and of judges, court managers, and judicial 
branch education personnel who are expected to attend? Applicants may 
demonstrate this by attaching letters of support.
    b. For training assistance:
    (1) Need for Funding. The applicant must describe how the proposed 
project addresses one or more Priority Investment Areas. If the project 
does not address one or more Priority Investment Areas, the applicant 
must provide an explanation why not.
    The discussion should include specific references to the relevant 
literature and to the experience in the field. SJI continues to make 
all grant reports and most grant products available online through the 
National

[[Page 62097]]

Center for State Courts (NCSC) Library and Digital Archive. Applicants 
are required to conduct a search of the NCSC Library and Digital 
Archive on the topic areas they are addressing. This search should 
include SJI-funded grants, and previous projects not supported by SJI. 
Searches for SJI grant reports and other state court resources begin 
with the NCSC Library section. Applicants must discuss the results of 
their research; how they plan to incorporate the previous work into 
their proposed project; and if the project will differentiate from 
prior work.
    The applicant should describe the court reform or initiative 
prompting the need for training. The applicants should also discuss how 
the proposed training help the applicant implement planned changes at 
the court, and why state or local resources are not sufficient to fully 
support the costs of the required training. In addition, the applicant 
should describe how, if applicable, the project will be sustained in 
the future through existing resources.
    (2) Project Description. The applicant must identify the tasks the 
trainer(s) will be expected to perform, which organization or 
individual will be hired, and, if in-house personnel are not the 
trainers, how the trainer will be selected. If a trainer has not yet 
been identified, the applicant must describe the procedures and 
criteria that will be used to select the trainer. In addition, the 
applicant should address the following questions: What specific tasks 
would the trainer and court staff or regional court association members 
undertake? What presentation methods will be used? What is the schedule 
for completion of each required task and the entire project? How will 
the applicant oversee the project and provide guidance to the trainer, 
and who at the court or affiliated with the regional court association 
would be responsible for coordinating all project tasks and submitting 
quarterly progress and financial status reports?
    If the trainer has been identified, the applicant should provide a 
letter from that individual or organization documenting interest in and 
availability for the project, as well as the trainer's ability to 
complete the assignment within the proposed time frame and for the 
proposed cost.
    (3) Likelihood of Implementation. The applicant should explain what 
steps have been or will be taken to coordinate the implementation of 
the training. For example, if the support or cooperation of specific 
court or regional court association officials or committees, other 
agencies, funding bodies, organizations, or a court other than the 
applicant will be needed to adopt the reform and initiate the training 
proposed, how will the applicant secure their involvement in the 
development and implementation of the training?
3. Budget and Matching State Contribution
    Applicants must also follow the same guidelines provided under 
Section IV.A.4. Applicants should attach a copy of budget Form C and a 
budget narrative (see subsection A.4. above) that describes the basis 
for the computation of all project-related costs and the source of the 
match offered.
4. Submission Requirements
    For curriculum adaptation requests, applicants should allow at 
least 90 days between the Board meeting and the date of the proposed 
program to allow sufficient time for needed planning. Letters of 
support for the project are also encouraged. Applicants are encouraged 
to call SJI to discuss concerns about timing of submissions.

D. Partner Grants

    SJI and its funding partners may meld, pick and choose, or waive 
their application procedures, grant cycles, or grant requirements to 
expedite the award of jointly-funded grants targeted at emerging or 
high priority problems confronting state and local courts. SJI may 
solicit brief proposals from potential grantees to fellow financial 
partners as a first step. Should SJI be chosen as the lead grant 
manager, Project Grant application procedures will apply to the 
proposed Partner Grant. As with Project Grants, Partner Grants will be 
targeted at initiatives likely to have a significant national impact.

E. Education Support Program (ESP)

1. Limitations
    Applicants may not receive more than one ESP award in a two-year 
fiscal year period unless the course specifically assumes multi-year 
participation, such as a certification program or a graduate degree 
program in judicial studies in which the applicant is currently 
enrolled (neither exception should be taken as a commitment on the part 
of SJI's Board of Directors to approve serial ESP awards). If the 
course assumes multi-year participation, awards will be limited to one 
per fiscal year. Attendance at annual or mid-year meetings or 
conferences of a state or national organization does not qualify as an 
out-of-state educational program for the ESP, even though it may 
include workshops or other training sessions.
    The ESP only covers the cost of tuition up to a maximum of $1,000 
per award, per course. Awards will be made for the exact amount 
requested for tuition. Funds to pay tuition in excess of $1,000, and 
other cost of attending the program such as travel, lodging, 
transportation, meals, materials, transportation to and from airports 
(including rental cars) must be obtained from other sources or borne by 
the ESP award recipient. Applicants are encouraged to check other 
sources of financial assistance and to combine aid from various sources 
whenever possible. An ESP award is not transferable to another 
individual. It may be used only for the course specified in the 
application unless the applicant's request to attend a different course 
that meets the eligibility requirements is approved in writing by SJI.
2. Eligibility Requirements
    a. Recipients. Because of the limited amount of funding available, 
only full-time judges of state or local trial and appellate courts; 
full-time professional, state, or local court personnel with management 
and supervisory responsibilities; and supervisory and management 
probation personnel in judicial branch probation offices are eligible 
for the program. Senior judges, part-time judges, quasi-judicial 
hearing officers including referees and commissioners, administrative 
law judges, staff attorneys, law clerks, line staff, law enforcement 
officers, and other executive branch personnel are not eligible.
    b. Courses. An ESP award is only for: (1) a course presented in a 
state other than the one in which the applicant resides or works, or 
(2) an online course. The course must be designed to enhance the skills 
of new or experienced judges and court managers; or be offered by a 
recognized graduate program for judges or court managers.
    Applicants are encouraged not to wait for the decision on an ESP 
application to register for an educational program they wish to attend. 
SJI does not submit the names of ESP award recipients to educational 
organizations, nor provide the funds to the educational organization. 
ESP funds are provided as reimbursements directly to the recipient.
3. Forms
    a. Education Support Program Application--Form ESP-1 (Appendix B). 
The application requests basic information about the applicant and the 
educational program the applicant would like to attend. It also 
addresses the applicant's commitment to share the

[[Page 62098]]

skills and knowledge gained with state and local court colleagues. The 
application must bear the original signature of the applicant. Faxed or 
photocopied signatures will not be accepted. Please be sure to indicate 
whether the state will be providing funds for the course and, if so, 
how much. SJI will not supplant state funds with these awards.
    b. Education Support Program Concurrence--Form ESP-2 (Appendix B). 
Judges and court managers applying for the program must submit the 
original written concurrence of the chief justice of the state's 
supreme court (or the chief justice's designee) on Form ESP-2 (see 
Appendix B). The signature of the presiding judge of the applicant's 
court may not be substituted for that of the state's chief justice or 
the chief justice's designee. The chief justice or state court 
administrator must notify SJI of the designees within the state for ESP 
purposes.
4. Submission Requirements
    Applications may be submitted at any time but will be reviewed on a 
quarterly basis. This means ESP awards will be on a ``first-come, 
first-considered'' basis. The dates for applications to be received by 
SJI for consideration in FY 2013 are November 1, February 1, May 1, and 
August 1. These are not mailing deadlines. The applications must be 
received by SJI on or before each of these dates. No exceptions or 
extensions will be granted. All the required items must be received for 
an application to be considered. If the Concurrence form or letter of 
support is sent separately from the application, the postmark date of 
the last item sent will be used in determining the review date. All 
applications should be sent by mail or courier (not fax or email).

V. Application Review Procedures

A. Preliminary Inquiries

    SJI staff will answer inquiries concerning application procedures.

B. Selection Criteria

1. Project Grant Applications
    a. Project Grant applications will be rated on the basis of the 
criteria set forth below. SJI will accord the greatest weight to the 
following criteria:
    (1) The soundness of the methodology;
    (2) The demonstration of need for the project;
    (3) The appropriateness of the proposed evaluation design;
    (4) If applicable, the key findings and recommendations of the most 
recent evaluation and the proposed responses to those findings and 
recommendations;
    (5) The applicant's management plan and organizational 
capabilities;
    (6) The qualifications of the project's staff;
    (7) The products and benefits resulting from the project, including 
the extent to which the project will have long-term benefits for state 
courts across the nation;
    (8) The degree to which the findings, procedures, training, 
technology, or other results of the project can be transferred to other 
jurisdictions;
    (9) The reasonableness of the proposed budget; and
    (10) The demonstration of cooperation and support of other agencies 
that may be affected by the project.
    b. In determining which projects to support, SJI will also consider 
whether the applicant is a state court, a national court support or 
education organization, a non-court unit of government, or other type 
of entity eligible to receive grants under SJI's enabling legislation 
(see section II.); the availability of financial assistance from other 
sources for the project; the amount of the applicant's match; the 
extent to which the proposed project would also benefit the federal 
courts or help state courts enforce federal constitutional and 
legislative requirements; and the level of appropriations available to 
SJI in the current year and the amount expected to be available in 
succeeding fiscal years.
2. Technical Assistance (TA) Grant Applications
    TA Grant applications will be rated on the basis of the following 
criteria:
    a. Whether the assistance would address a critical need of the 
applicant;
    b. The soundness of the technical assistance approach to the 
problem;
    c. The qualifications of the consultant(s) to be hired or the 
specific criteria that will be used to select the consultant(s);
    d. The commitment of the court or association to act on the 
consultant's recommendations; and
    e. The reasonableness of the proposed budget.
    SJI also will consider factors such as the level and nature of the 
match that would be provided, diversity of subject matter, geographic 
diversity, the level of appropriations available to SJI in the current 
year, and the amount expected to be available in succeeding fiscal 
years.
3. Curriculum Adaptation and Training (CAT) Grant Applications
    CAT Grant applications will be rated on the basis of the following 
criteria:
    a. For curriculum adaptation projects:
    (1) The goals and objectives of the proposed project;
    (2) The need for outside funding to support the program;
    (3) The appropriateness of the approach in achieving the project's 
educational objectives;
    (4) The likelihood of effective implementation and integration of 
the modified curriculum into ongoing educational programming; and
    (5) Expressions of interest by the judges and/or court personnel 
who would be directly involved in or affected by the project.
    b. For training assistance:
    (1) Whether the training would address a critical need of the court 
or association;
    (2) The soundness of the training approach to the problem;
    (3) The qualifications of the trainer(s) to be hired or the 
specific criteria that will be used to select the trainer(s);
    (4) The commitment of the court or association to the training 
program; and
    (5) The reasonableness of the proposed budget. SJI will also 
consider factors such as the reasonableness of the amount requested; 
compliance with match requirements; diversity of subject matter, 
geographic diversity; the level of appropriations available in the 
current year; and the amount expected to be available in succeeding 
fiscal years.
4. Partner Grants
    The selection criteria for Partner Grants will be driven by the 
collective priorities of SJI and other organizations and their 
collective assessments regarding the needs and capabilities of court 
and court-related organizations. Having settled on priorities, SJI and 
its financial partners will likely contact the courts or court-related 
organizations most acceptable as pilots, laboratories, consultants, or 
the like.
5. Education Support Program (ESP)
    ESP awards are only for programs that either: (1) Enhance the 
skills of judges and court managers; or (2) are part of a graduate 
degree program for judges or court personnel. Awards are provided on 
the basis of:
    a. The date on which the application and concurrence (and support 
letter, if required) were sent (``first-come, first-considered'');
    b. The unavailability of state or local funds, or funding from 
another source to cover the costs of attending the program, or 
participating online;
    c. The absence of educational programs in the applicant's state 
addressing the topic(s) covered by the educational program for which 
the award is being sought;

[[Page 62099]]

    d. Geographic balance among the recipients;
    e. The balance of ESP awards among educational providers and 
programs;
    f. The balance of ESP awards among the types of courts and court 
personnel (trial judge, appellate judge, trial court administrator) 
represented; and
    g. The level of appropriations available to SJI in the current year 
and the amount expected to be available in succeeding fiscal years.
    The postmark or courier receipt will be used to determine the date 
on which the application form and other required items were sent.

C. Review and Approval Process

 1. Project Grant Applications
    SJI's Board of Directors will review the applications 
competitively. The Board will review all applications and decide which 
projects to fund. The decision to fund a project is solely that of the 
Board of Directors. The Chairman of the Board will sign approved awards 
on behalf of SJI.
2. Technical Assistance (TA) and Curriculum Adaptation and Training 
(CAT) Grant Applications
    The Board will review the applications competitively. The Board 
will review all applications and decide which projects to fund. The 
decision to fund a project is solely that of the Board of Directors. 
The Chairman of the Board will sign approved awards on behalf of SJI.
3. Education Support Program (ESP)
    A committee of the Board of Directors will review ESP applications 
quarterly. The committee will review the applications competitively. 
The Chairman of the Board will sign approved awards on behalf of SJI.
4. Partner Grants
    SJI's internal process for the review and approval of Partner 
Grants will depend on negotiations with fellow financiers. SJI may use 
its procedures, a partner's procedures, a mix of both, or entirely 
unique procedures. All Partner Grants will be approved by the Board of 
Directors.

D. Return Policy

    Unless a specific request is made, unsuccessful applications will 
not be returned. Applicants are advised that SJI records are subject to 
the provisions of the Federal Freedom of Information Act, 5 U.S.C. 552.

E. Notification of Board Decision

    SJI will send written notice to applicants concerning all Board 
decisions to approve, defer, or deny their respective applications. For 
all applications (except ESP applications), if requested, SJI will 
convey the key issues and questions that arose during the review 
process. A decision by the Board to deny an application may not be 
appealed, but it does not prohibit resubmission of a proposal based on 
that application in a subsequent funding cycle.

 F. Response to Notification of Approval

    With the exception of those approved for ESP awards, applicants 
have 30 days from the date of the letter notifying them that the Board 
has approved their application to respond to any revisions requested by 
the Board. If the requested revisions (or a reasonable schedule for 
submitting such revisions) have not been submitted to SJI within 30 
days after notification, the approval may be rescinded and the 
application presented to the Board for reconsideration. In the event an 
issue will only be resolved after award, such as the selection of a 
consultant, the final award document will include a Special Condition 
that will require additional grantee reporting and SJI review and 
approval. Special Conditions, in the form of incentives or sanctions, 
may also be used in other situations.

VI. Compliance Requirements

    The State Justice Institute Act contains limitations and conditions 
on grants, contracts, and cooperative agreements awarded by SJI. The 
Board of Directors has approved additional policies governing the use 
of SJI grant funds. These statutory and policy requirements are set 
forth below.

A. Recipients of Project Grants

1. Advocacy
    No funds made available by SJI may be used to support or conduct 
training programs for the purpose of advocating particular non-judicial 
public policies or encouraging non-judicial political activities (42 
U.S.C. 10706(b)).
2. Approval of Key Staff
    If the qualifications of an employee or consultant assigned to a 
key project staff position are not described in the application or if 
there is a change of a person assigned to such a position, the 
recipient must submit a description of the qualifications of the newly 
assigned person to SJI. Prior written approval of the qualifications of 
the new person assigned to a key staff position must be received from 
the Institute before the salary or consulting fee of that person and 
associated costs may be paid or reimbursed from grant funds (see 
section VIII.A.7.).
3. Audit
    Recipients of project grants must provide for an annual fiscal 
audit which includes an opinion on whether the financial statements of 
the grantee present fairly its financial position and its financial 
operations are in accordance with generally accepted accounting 
principles (see section VII.K. for the requirements of such audits). 
ESP award recipients, Curriculum Adaptation and Training Grants, and 
Technical Assistance Grants are not required to submit an audit, but 
they must maintain appropriate documentation to support all 
expenditures (see section VIII.K.).
4. Budget Revisions
    Budget revisions among direct cost categories that: (a) transfer 
grant funds to an unbudgeted cost category, or (b) individually or 
cumulatively exceed five percent of the approved original budget or the 
most recently approved revised budget require prior SJI approval (see 
section VIII.A.1.).
5. Conflict of Interest
    Personnel and other officials connected with SJI-funded programs 
must adhere to the following requirements:
    a. No official or employee of a recipient court or organization 
shall participate personally through decision, approval, disapproval, 
recommendation, the rendering of advice, investigation, or otherwise in 
any proceeding, application, request for a ruling or other 
determination, contract, grant, cooperative agreement, claim, 
controversy, or other particular matter in which SJI funds are used, 
where, to his or her knowledge, he or she or his or her immediate 
family, partners, organization other than a public agency in which he 
or she is serving as officer, director, trustee, partner, or employee 
or any person or organization with whom he or she is negotiating or has 
any arrangement concerning prospective employment, has a financial 
interest.
    b. In the use of SJI project funds, an official or employee of a 
recipient court or organization shall avoid any action which might 
result in or create the appearance of:
    (1) Using an official position for private gain; or
    (2) Affecting adversely the confidence of the public in the 
integrity of the Institute program.
    c. Requests for proposals or invitations for bids issued by a 
recipient of Institute funds or a subgrantee or

[[Page 62100]]

subcontractor will provide notice to prospective bidders that the 
contractors who develop or draft specifications, requirements, 
statements of work, and/or requests for proposals for a proposed 
procurement will be excluded from bidding on or submitting a proposal 
to compete for the award of such procurement.
6. Inventions and Patents
    If any patentable items, patent rights, processes, or inventions 
are produced in the course of SJI-sponsored work, such fact shall be 
promptly and fully reported to the Institute. Unless there is a prior 
agreement between the grantee and SJI on disposition of such items, SJI 
shall determine whether protection of the invention or discovery shall 
be sought. SJI will also determine how the rights in the invention or 
discovery, including rights under any patent issued thereon, shall be 
allocated and administered in order to protect the public interest 
consistent with ``Government Patent Policy'' (President's Memorandum 
for Heads of Executive Departments and Agencies, February 18, 1983, and 
statement of Government Patent Policy).
7. Lobbying
    a. Funds awarded to recipients by SJI shall not be used, indirectly 
or directly, to influence Executive Orders or similar promulgations by 
federal, state or local agencies, or to influence the passage or defeat 
of any legislation by federal, state or local legislative bodies (42 
U.S.C. 10706(a)).
    b. It is the policy of the Board of Directors to award funds only 
to support applications submitted by organizations that would carry out 
the objectives of their applications in an unbiased manner. Consistent 
with this policy and the provisions of 42 U.S.C. 10706, SJI will not 
knowingly award a grant to an applicant that has, directly or through 
an entity that is part of the same organization as the applicant, 
advocated a position before Congress on the specific subject matter of 
the application.
8. Matching Requirements
    All grantees other than ESP award recipients are required to 
provide a match. A match is the portion of project costs not borne by 
the Institute. Match includes both cash and in-kind contributions. Cash 
match is the direct outlay of funds by the grantee or a third party to 
support the project. In-kind match consists of contributions of time 
and/or services of current staff members, new employees, space, 
supplies, etc., made to the project by the grantee or others (e.g., 
advisory board members) working directly on the project or that portion 
of the grantee's federally-approved indirect cost rate that exceeds the 
Guideline's limit of permitted charges (75 percent of salaries and 
benefits).
    Under normal circumstances, allowable match may be incurred only 
during the project period. When appropriate, and with the prior written 
permission of SJI, match may be incurred from the date of the Board of 
Directors' approval of an award. The amount and nature of required 
match depends on the type of grant (see section III.).
    The grantee is responsible for ensuring that the total amount of 
match proposed is actually contributed. If a proposed contribution is 
not fully met, SJI may reduce the award amount accordingly, in order to 
maintain the ratio originally provided for in the award agreement (see 
section VII.E.1.). Match should be expended at the same rate as SJI 
funding.
    The Board of Directors looks favorably upon any unrequired match 
contributed by applicants when making grant decisions. The match 
requirement may be waived in exceptionally rare circumstances upon the 
request of the chief justice of the highest court in the state or the 
highest ranking official in the requesting organization and approval by 
the Board of Directors (42 U.S.C. 10705(d)). The Board of Directors 
encourages all applicants to provide the maximum amount of cash and in-
kind match possible, even if a waiver is approved. The amount and 
nature of match are criteria in the grant selection process (see 
section V.B.1.b.).
9. Nondiscrimination
    No person may, on the basis of race, sex, national origin, 
disability, color, or creed be excluded from participation in, denied 
the benefits of, or otherwise subjected to discrimination under any 
program or activity supported by SJI funds. Recipients of SJI funds 
must immediately take any measures necessary to effectuate this 
provision.
10. Political Activities
    No recipient may contribute or make available SJI funds, program 
personnel, or equipment to any political party or association, or the 
campaign of any candidate for public or party office. Recipients are 
also prohibited from using funds in advocating or opposing any ballot 
measure, initiative, or referendum. Officers and employees of 
recipients shall not intentionally identify SJI or recipients with any 
partisan or nonpartisan political activity associated with a political 
party or association, or the campaign of any candidate for public or 
party office (42 U.S.C. 10706(a)).
11. Products
a. Acknowledgment, Logo, and Disclaimer
    (1) Recipients of SJI funds must acknowledge prominently on all 
products developed with grant funds that support was received from the 
SJI. The ``SJI'' logo must appear on the front cover of a written 
product, or in the opening frames of a multimedia product, unless 
another placement is approved in writing by SJI. This includes final 
products printed or otherwise reproduced during the grant period, as 
well as re-printings or reproductions of those materials following the 
end of the grant period. A camera-ready logo sheet is available on 
SJI's Web site: www.sji.gov/forms.
    (2) Recipients also must display the following disclaimer on all 
grant products: ``This [document, film, videotape, etc.] was developed 
under [grant/cooperative agreement] number SJI-[insert number] from the 
State Justice Institute. The points of view expressed are those of the 
[author(s), filmmaker(s), etc.] and do not necessarily represent the 
official position or policies of the State Justice Institute.''
    (3) In addition to other required grant products and reports, 
recipients must provide a one page executive summary of the project. 
The summary should include a background on the project, the tasks 
undertaken, and the outcome. In addition, the summary should provide 
the performance metrics that were used during the project, and how 
performance will be measured in the future.
b. Charges for Grant-Related Products/Recovery of Costs
    (1) SJI's mission is to support improvements in the quality of 
justice and foster innovative, efficient solutions to common issues 
faced by all courts. SJI has recognized and established procedures for 
supporting research and development of grant products (e.g. a report, 
curriculum, video, software, database, or Web site) through competitive 
grant awards based on merit review of proposed projects. To ensure that 
all grants benefit the entire court community, projects SJI considers 
worthy of support (in whole or in part), are required to be 
disseminated widely and available for public consumption. This includes 
open-source software and interfaces. Costs for development,

[[Page 62101]]

production, and dissemination are allowable as direct costs to SJI.
    (2) Applicants should disclose their intent to sell grant-related 
products in the application. Grantees must obtain the written prior 
approval of SJI of their plans to recover project costs through the 
sale of grant products. Written requests to recover costs ordinarily 
should be received during the grant period and should specify the 
nature and extent of the costs to be recouped, the reason that such 
costs were not budgeted (if the rationale was not disclosed in the 
approved application), the number of copies to be sold, the intended 
audience for the products to be sold, and the proposed sale price. If 
the product is to be sold for more than $25, the written request also 
should include a detailed itemization of costs that will be recovered 
and a certification that the costs were not supported by either SJI 
grant funds or grantee matching contributions.
    (3) In the event that the sale of grant products results in 
revenues that exceed the costs to develop, produce, and disseminate the 
product, the revenue must continue to be used for the authorized 
purposes of SJI-funded project or other purposes consistent with the 
State Justice Institute Act that have been approved by SJI (see section 
VII.G.).
c. Copyrights
    Except as otherwise provided in the terms and conditions of a SJI 
award, a recipient is free to copyright any books, publications, or 
other copyrightable materials developed in the course of a SJI-
supported project, but SJI shall reserve a royalty-free, nonexclusive 
and irrevocable right to reproduce, publish, or otherwise use, and to 
authorize others to use, the materials for purposes consistent with the 
State Justice Institute Act.
d. Due Date
    All products and, for TA and CAT grants, consultant and/or trainer 
reports (see section VI.B.1 & 2) are to be completed and distributed 
(see below) not later than the end of the award period, not the 90-day 
close out period. The latter is only intended for grantee final 
reporting and to liquidate obligations (see section VII.L.).
e. Distribution
    In addition to the distribution specified in the grant application, 
grantees shall send:
    (1) Three (3) copies of each final product developed with grant 
funds to SJI, unless the product was developed under either a Technical 
Assistance or a Curriculum Adaptation and Training Grant, in which case 
submission of 2 copies is required; and
    (2) An electronic version of the product in HTML or PDF format to 
SJI.
f. SJI Approval
    No grant funds may be obligated for publication or reproduction of 
a final product developed with grant funds without the written approval 
of SJI. Grantees shall submit a final draft of each written product to 
SJI for review and approval. The draft must be submitted at least 30 
days before the product is scheduled to be sent for publication or 
reproduction to permit SJI review and incorporation of any appropriate 
changes required by SJI. Grantees must provide for timely reviews by 
the SJI of Web site or other multimedia products at the treatment, 
script, rough cut, and final stages of development or their 
equivalents.
g. Original Material
    All products prepared as the result of SJI-supported projects must 
be originally-developed material unless otherwise specified in the 
award documents. Material not originally developed that is included in 
such products must be properly identified, whether the material is in a 
verbatim or extensive paraphrase format.
12. Prohibition Against Litigation Support
    No funds made available by SJI may be used directly or indirectly 
to support legal assistance to parties in litigation, including cases 
involving capital punishment.
13. Reporting Requirements
    a. Recipients of SJI funds other than ESP awards must submit 
Quarterly Progress and Financial Status Reports within 30 days of the 
close of each calendar quarter (that is, no later than January 30, 
April 30, July 30, and October 30). The Quarterly Progress Reports 
shall include a narrative description of project activities during the 
calendar quarter, the relationship between those activities and the 
task schedule and objectives set forth in the approved application or 
an approved adjustment thereto, any significant problem areas that have 
developed and how they will be resolved, and the activities scheduled 
during the next reporting period. Failure to comply with the 
requirements of this provision could result in the termination of a 
grantee's award.
    b. The quarterly Financial Status Report must be submitted in 
accordance with section VII.H.2. of this Guideline. A final project 
Progress Report and Financial Status Report shall be submitted within 
90 days after the end of the grant period in accordance with section 
VII.L.1. of this Guideline.
14. Research
a. Availability of Research Data for Secondary Analysis
    Upon request, grantees must make available for secondary analysis a 
diskette(s) or data tape(s) containing research and evaluation data 
collected under a SJI grant and the accompanying code manual. Grantees 
may recover the actual cost of duplicating and mailing or otherwise 
transmitting the data set and manual from the person or organization 
requesting the data. Grantees may provide the requested data set in the 
format in which it was created and analyzed.
b. Confidentiality of Information
    Except as provided by federal law other than the State Justice 
Institute Act, no recipient of financial assistance from SJI may use or 
reveal any research or statistical information furnished under the Act 
by any person and identifiable to any specific private person for any 
purpose other than the purpose for which the information was obtained. 
Such information and copies thereof shall be immune from legal process, 
and shall not, without the consent of the person furnishing such 
information, be admitted as evidence or used for any purpose in any 
action, suit, or other judicial, legislative, or administrative 
proceedings.
c. Human Subject Protection
    Human subjects are defined as individuals who are participants in 
an experimental procedure or who are asked to provide information about 
themselves, their attitudes, feelings, opinions, and/or experiences 
through an interview, questionnaire, or other data collection 
technique. All research involving human subjects shall be conducted 
with the informed consent of those subjects and in a manner that will 
ensure their privacy and freedom from risk or harm and the protection 
of persons who are not subjects of the research but would be affected 
by it, unless such procedures and safeguards would make the research 
impractical. In such instances, SJI must approve procedures designed by 
the grantee to provide human subjects with relevant information about 
the research after their involvement and to minimize or eliminate risk 
or harm to those subjects due to their participation.

[[Page 62102]]

15. State and Local Court Applications
    Each application for funding from a state or local court must be 
approved, consistent with state law, by the state supreme court, or its 
designated agency or council. The supreme court or its designee shall 
receive, administer, and be accountable for all funds awarded on the 
basis of such an application (42 U.S.C. 10705(b)(4)). See section 
VII.C.2.
16. Supplantation and Construction
    To ensure that SJI funds are used to supplement and improve the 
operation of state courts, rather than to support basic court services, 
SJI funds shall not be used for the following purposes:
    a. To supplant state or local funds supporting a program or 
activity (such as paying the salary of court employees who would be 
performing their normal duties as part of the project, or paying rent 
for space which is part of the court's normal operations);
    b. To construct court facilities or structures, except to remodel 
existing facilities or to demonstrate new architectural or 
technological techniques, or to provide temporary facilities for new 
personnel or for personnel involved in a demonstration or experimental 
program; or
    c. Solely to purchase equipment.
17. Suspension or Termination of Funding
    After providing a recipient reasonable notice and opportunity to 
submit written documentation demonstrating why fund termination or 
suspension should not occur, SJI may terminate or suspend funding of a 
project that fails to comply substantially with the Act, the Guideline, 
or the terms and conditions of the award (42 U.S.C. 10708(a)).
18. Title to Property
    At the conclusion of the project, title to all expendable and 
nonexpendable personal property purchased with SJI funds shall vest in 
the recipient court, organization, or individual that purchased the 
property if certification is made to and approved by SJI that the 
property will continue to be used for the authorized purposes of the 
Institute-funded project or other purposes consistent with the State 
Justice Institute Act. If such certification is not made or SJI 
disapproves such certification, title to all such property with an 
aggregate or individual value of $1,000 or more shall vest in SJI, 
which will direct the disposition of the property.

B. Recipients of Technical Assistance (TA) and Curriculum Adaptation 
and Training (CAT) Grants

    Recipients of TA and CAT Grants must comply with the requirements 
listed in section VI.A. (except the requirements pertaining to audits 
in subsection A.3. above and product dissemination and approval in 
subsection A.11.e. and f. above) and the reporting requirements below:
1. Technical Assistance (TA) Grant Reporting Requirements
    Recipients of TA Grants must submit to SJI one copy of a final 
report that explains how it intends to act on the consultant's 
recommendations, as well as two copies of the consultant's written 
report.
2. Curriculum Adaptation and Training (CAT) Grant Reporting 
Requirements
    Recipients of CAT Grants must submit one copy of the agenda or 
schedule, outline of presentations and/or relevant instructor's notes, 
copies of overhead transparencies, power point presentations, or other 
visual aids, exercises, case studies and other background materials, 
hypotheticals, quizzes, and other materials involving the participants, 
manuals, handbooks, conference packets, evaluation forms, and 
suggestions for replicating the program, including possible faculty or 
the preferred qualifications or experience of those selected as 
faculty, developed under the grant at the conclusion of the grant 
period, along with a final report that includes any evaluation results 
and explains how the grantee intends to present the educational program 
in the future, as well as two copies of the consultant's or trainer's 
report.

C. Education Support Program (ESP) Recipients

    1. ESP award recipients are responsible for disseminating the 
information received from the course to their court colleagues locally 
and, if possible, throughout the state.
    Recipients also must submit to SJI a certificate of attendance from 
the program and a copy of the notice of any funding received from other 
sources. A state or local jurisdiction may impose additional 
requirements on ESP award recipients.
    2. To receive the funds authorized by an ESP award, recipients must 
submit an ESP Payment Request (Form ESP-3) together with a paid tuition 
statement from the program sponsor.
    ESP Payment Requests must be submitted within 90 days after the end 
of the course, which the recipient attended.
    3. ESP recipients are encouraged to check with their tax advisors 
to determine whether an award constitutes taxable income under federal 
and state law.

D. Partner Grants

    The compliance requirements for Partner Grant recipients will 
depend upon the agreements struck between the grant financiers and 
between lead financiers and grantees. Should SJI be the lead, the 
compliance requirements for Project Grants will apply, unless specific 
arrangements are determined by the Partners.

VII. Financial Requirements

A. Purpose

    The purpose of this section is to establish accounting system 
requirements and offer guidance on procedures to assist all grantees, 
sub-grantees, contractors, and other organizations in:
    1. Complying with the statutory requirements for the award, 
disbursement, and accounting of funds;
    2. Complying with regulatory requirements of SJI for the financial 
management and disposition of funds;
    3. Generating financial data to be used in planning, managing, and 
controlling projects; and
    4. Facilitating an effective audit of funded programs and projects.

B. References

    Except where inconsistent with specific provisions of this Grant 
Guideline, the following circulars are applicable to SJI grants and 
cooperative agreements under the same terms and conditions that apply 
to federal grantees. The circulars supplement the requirements of this 
section for accounting systems and financial record-keeping and provide 
additional guidance on how these requirements may be satisfied 
(circulars may be obtained on the OMB Web site at http://www.whitehouse.gov/omb).
    1. Office of Management and Budget (OMB) Circular A-21, Cost 
Principles for Educational Institutions.
    2. Office of Management and Budget (OMB) Circular A-87, Cost 
Principles for State and Local Governments.
    3. Office of Management and Budget (OMB) Circular A-102, Uniform 
Administrative Requirements for Grants-in-Aid to State and Local 
Governments.
    4. Office of Management and Budget (OMB) Circular A-110, Grants and 
Agreements with Institutions of Higher

[[Page 62103]]

Education, Hospitals and Other Non-Profit Organizations.
    5. Office of Management and Budget (OMB) Circular A-122, Cost 
Principles for Non-profit Organizations.
    6. Office of Management and Budget (OMB) Circular A-133, Audits of 
States, Local Governments and Non-profit Organizations.

C. Supervision and Monitoring Responsibilities

1. Grantee Responsibilities
    All grantees receiving awards from SJI are responsible for the 
management and fiscal control of all funds. Responsibilities include 
accounting for receipts and expenditures, maintaining adequate 
financial records, and refunding expenditures disallowed by audits.
2. Responsibilities of the State Supreme Court
    a. Each application for funding from a state or local court must be 
approved, consistent with state law, by the state supreme court, or its 
designated agency or council.
    b. The state supreme court or its designee shall receive all SJI 
funds awarded to such courts; be responsible for assuring proper 
administration of SJI funds; and be responsible for all aspects of the 
project, including proper accounting and financial record-keeping by 
the subgrantee. These responsibilities include:
    (1) Reviewing Financial Operations. The state supreme court or its 
designee should be familiar with, and periodically monitor, its sub-
grantee's financial operations, records system, and procedures. 
Particular attention should be directed to the maintenance of current 
financial data.
    (2) Recording Financial Activities. The sub-grantee's grant award 
or contract obligation, as well as cash advances and other financial 
activities, should be recorded in the financial records of the state 
supreme court or its designee in summary form. Sub-grantee expenditures 
should be recorded on the books of the state supreme court or evidenced 
by report forms duly filed by the sub-grantee. Matching contributions 
provided by sub-grantees should likewise be recorded, as should any 
project income resulting from program operations.
    (3) Budgeting and Budget Review. The state supreme court or its 
designee should ensure that each sub-grantee prepares an adequate 
budget as the basis for its award commitment. The state supreme court 
should maintain the details of each project budget on file.
    (4) Accounting for Match. The state supreme court or its designee 
will ensure that sub-grantees comply with the match requirements 
specified in this Grant Guideline (see section VI.A.8.).
    (5) Audit Requirement. The state supreme court or its designee is 
required to ensure that sub-grantees meet the necessary audit 
requirements set forth by SJI (see sections K. below and VI.A.3.).
    (6) Reporting Irregularities. The state supreme court, its 
designees, and its sub-grantees are responsible for promptly reporting 
to SJI the nature and circumstances surrounding any financial 
irregularities discovered.

D. Accounting System

    The grantee is responsible for establishing and maintaining an 
adequate system of accounting and internal controls and for ensuring 
that an adequate system exists for each of its sub-grantees and 
contractors. An acceptable and adequate accounting system:
    1. Properly accounts for receipt of funds under each grant awarded 
and the expenditure of funds for each grant by category of expenditure 
(including matching contributions and project income);
    2. Assures that expended funds are applied to the appropriate 
budget category included within the approved grant;
    3. Presents and classifies historical costs of the grant as 
required for budgetary and evaluation purposes;
    4. Provides cost and property controls to assure optimal use of 
grant funds;
    5. Is integrated with a system of internal controls adequate to 
safeguard the funds and assets covered, check the accuracy and 
reliability of the accounting data, promote operational efficiency, and 
assure conformance with any general or special conditions of the grant;
    6. Meets the prescribed requirements for periodic financial 
reporting of operations; and
    7. Provides financial data for planning, control, measurement, and 
evaluation of direct and indirect costs.

E. Total Cost Budgeting and Accounting

    Accounting for all funds awarded by SJI must be structured and 
executed on a ``Total Project Cost'' basis. That is, total project 
costs, including SJI funds, state and local matching shares, and any 
other fund sources included in the approved project budget serve as the 
foundation for fiscal administration and accounting. Grant applications 
and financial reports require budget and cost estimates on the basis of 
total costs.
1. Timing of Matching Contributions
    Matching contributions should be applied at the same time of the 
obligation of SJI funds. Ordinarily, the full matching share must be 
obligated during the award period; however, with the written permission 
of SJI, contributions made following approval of the grant by the Board 
of Directors, but before the beginning of the grant, may be counted as 
match. If a proposed cash or in-kind match is not fully met, SJI may 
reduce the award amount accordingly to maintain the ratio of grant 
funds to matching funds stated in the award agreement.
2. Records for Match
    All grantees must maintain records that clearly show the source, 
amount, and timing of all matching contributions. In addition, if a 
project has included, within its approved budget, contributions which 
exceed the required matching portion, the grantee must maintain records 
of those contributions in the same manner as it does SJI funds and 
required matching shares. For all grants made to state and local 
courts, the state supreme court has primary responsibility for grantee/
sub-grantee compliance with the requirements of this section (see 
subsection C.2. above).

F. Maintenance and Retention of Records

    All financial records, including supporting documents, statistical 
records, and all other information pertinent to grants, sub-grants, 
cooperative agreements, or contracts under grants, must be retained by 
each organization participating in a project for at least three years 
for purposes of examination and audit. state supreme courts may impose 
record retention and maintenance requirements in addition to those 
prescribed in this section.
1. Coverage
    The retention requirement extends to books of original entry, 
source documents supporting accounting transactions, the general 
ledger, subsidiary ledgers, personnel and payroll records, canceled 
checks, and related documents and records. Source documents include 
copies of all grant and sub-grant awards, applications, and required 
grantee/sub-grantee financial and narrative reports. Personnel and 
payroll records shall include the time and attendance reports for all 
individuals reimbursed under a grant, sub-grant or contract, whether 
they are employed full-time or part-time. Time and effort reports are 
required for consultants.

[[Page 62104]]

2. Retention Period
    The three-year retention period starts from the date of the 
submission of the final expenditure report.
3. Maintenance
    Grantees and sub-grantees are expected to see that records of 
different fiscal years are separately identified and maintained so that 
requested information can be readily located. Grantees and sub-grantees 
are also obligated to protect records adequately against fire or other 
damage. When records are stored away from the grantee's/sub-grantee's 
principal office, a written index of the location of stored records 
should be on hand, and ready access should be assured.
4. Access
    Grantees and sub-grantees must give any authorized representative 
of SJI access to and the right to examine all records, books, papers, 
and documents related to a SJI grant.

G. Project-Related Income

    Records of the receipt and disposition of project-related income 
must be maintained by the grantee in the same manner as required for 
the project funds that gave rise to the income and must be reported to 
SJI (see subsection H.2. below). The policies governing the disposition 
of the various types of project-related income are listed below.
1. Interest
    A state and any agency or instrumentality of a state, including 
institutions of higher education and hospitals, shall not be held 
accountable for interest earned on advances of project funds. When 
funds are awarded to sub-grantees through a state, the sub-grantees are 
not held accountable for interest earned on advances of project funds. 
Local units of government and nonprofit organizations that are grantees 
must refund any interest earned. Grantees shall ensure minimum balances 
in their respective grant cash accounts.
2. Royalties
    The grantee/sub-grantee may retain all royalties received from 
copyrights or other works developed under projects or from patents and 
inventions, unless the terms and conditions of the grant provide 
otherwise.
3. Registration and Tuition Fees
    Registration and tuition fees may be considered as cash match with 
the prior written approval from SJI. Estimates of registration and 
tuition fees, and any expenses to be offset by the fees, should be 
included in the application budget forms and narrative.
 4. Income From the Sale of Grant Products
    If the sale of products occurs during the project period, the 
income may be treated as cash match with the prior written approval 
from SJI. The costs and income generated by the sales must be reported 
on the Quarterly Financial Status Reports and documented in an 
auditable manner. Whenever possible, the intent to sell a product 
should be disclosed in the application or reported to SJI in writing 
once a decision to sell products has been made. The grantee must 
request approval to recover its product development, reproduction, and 
dissemination costs as specified in section VI.A.11.b.
 5. Other
    Other project income shall be treated in accordance with 
disposition instructions set forth in the grant's terms and conditions.

H. Payments and Financial Reporting Requirements

1. Payment of Grant Funds
    The procedures and regulations set forth below are applicable to 
all SJI grant funds and grantees.
    a. Request for Reimbursement of Funds. Grantees will receive funds 
on a U.S. Treasury ``check-issued'' or electronic funds transfer (EFT) 
basis. Upon receipt, review, and approval of a Request for Advance or 
Reimbursement by SJI, payment will be issued directly to the grantee or 
its designated fiscal agent. A request must be limited to the grantee's 
immediate cash needs. The Request for Reimbursement Form R), along with 
the instructions for its preparation, and the SF 3881 Automated 
Clearing House (ACH/Miscellaneous Payment Enrollment Form for EFT) are 
available on the Institute's Web site: http://www.sji.gov/forms.php.
    b. Termination Reimbursement Funding. When a grantee organization 
receiving cash advances from SJI:
    (1) Demonstrates an unwillingness or inability to attain program or 
project goals, or to establish procedures that will minimize the time 
elapsing between cash advances and disbursements, or is unable to 
adhere to guideline requirements or special conditions;
    (2) Engages in the improper award and administration of sub-grants 
or contracts; or
    (3) Is unable to submit reliable and/or timely reports; SJI may 
terminate advance financing and require the grantee organization to 
finance its operations with its own working capital. Payments to the 
grantee shall then be made by U.S. Treasury check or EFT to reimburse 
the grantee for actual cash disbursements. In the event the grantee 
continues to be deficient, SJI may suspend reimbursement payments until 
the deficiencies are corrected. In extreme cases, grants may be 
terminated.
    c. Principle of Minimum Cash on Hand. Grantees should request funds 
based upon immediate disbursement requirements. Grantees should time 
their requests to ensure that cash on hand is the minimum needed for 
disbursements to be made immediately or within a few days.
2. Financial Reporting
    a. General Requirements. To obtain financial information concerning 
the use of funds, the Institute requires that grantees/sub-grantees 
submit timely reports for review.
    b. Due Dates and Contents. A Financial Status Report is required 
from all grantees, other than ESP award recipients, for each active 
quarter on a calendar-quarter basis. This report is due within 30 days 
after the close of the calendar quarter. It is designed to provide 
financial information relating to SJI funds, state and local matching 
shares, project income, and any other sources of funds for the project, 
as well as information on obligations and outlays. A copy of the 
Financial Status Report, along with instructions for its preparation, 
are provided on the SJI Web site. If a grantee requests substantial 
payments for a project prior to the completion of a given quarter, SJI 
may request a brief summary of the amount requested, by object class, 
to support the Request for Advance or Reimbursement.
3. Consequences of Non-Compliance With Submission Requirement
    Failure of the grantee to submit required financial and progress 
reports may result in suspension or termination of grant payments.

I. Allowability of Costs

1. General
    Except as may be otherwise provided in the conditions of a 
particular grant, cost allowability is determined in accordance with 
the principles set forth in OMB Circulars A-21, Cost Principles 
Applicable to Grants and Contracts with Educational Institutions; A-87, 
Cost Principles for State and Local Governments; and A-122, Cost 
Principles for Non-profit Organizations.

[[Page 62105]]

    No costs may be recovered to liquidate obligations incurred after 
the approved grant period. Circulars may be obtained on the OMB Web 
site at http://www.whitehouse.gov/omb.
2. Costs Requiring Prior Approval
    a. Pre-agreement Costs. The written prior approval of the Institute 
is required for costs considered necessary but which occur prior to the 
start date of the project period.
    b. Equipment. Grant funds may be used to purchase or lease only 
that equipment essential to accomplishing the goals and objectives of 
the project. The written prior approval of SJI is required when the 
amount of automated data processing (ADP) equipment to be purchased or 
leased exceeds $10,000 or software to be purchased exceeds $3,000.
    c. Consultants. The written prior approval from SJI is required 
when the rate of compensation to be paid a consultant exceeds $800 a 
day. SJI funds may not be used to pay a consultant more than $1,100 per 
day.
    d. Budget Revisions. Budget revisions among direct cost categories 
that (i) transfer grant funds to an unbudgeted cost category or (ii) 
individually or cumulatively exceed five percent (5%) of the approved 
original budget or the most recently approved revised budget require 
prior SJI approval (see section VIII.A.1.).
3. Travel Costs
    Transportation and per diem rates must comply with the policies of 
the grantee. If the grantee does not have an established written travel 
policy, then travel rates must be consistent with those established by 
the federal government. SJI funds may not be used to cover the 
transportation or per diem costs of a member of a national organization 
to attend an annual or other regular meeting, or conference of that 
organization.
4. Indirect Costs
    Indirect costs are only applicable to organizations that are not 
state courts or government agencies. These are costs of an organization 
that are not readily assignable to a particular project but are 
necessary to the operation of the organization and the performance of 
the project. The cost of operating and maintaining facilities, 
depreciation, and administrative salaries are examples of the types of 
costs that are usually treated as indirect costs. Although SJI's policy 
requires all costs to be budgeted directly, it will accept indirect 
costs if a grantee has an indirect cost rate approved by a federal 
agency. However, recoverable indirect costs are limited to no more than 
75 percent of a grantee's direct personnel costs (salaries plus fringe 
benefits).
    a. Approved Plan Available.
    (1) A copy of an indirect cost rate agreement or allocation plan 
approved for a grantee during the preceding two years by any federal 
granting agency on the basis of allocation methods substantially in 
accord with those set forth in the applicable cost circulars must be 
submitted to SJI.
    (2) Where flat rates are accepted in lieu of actual indirect costs, 
grantees may not also charge expenses normally included in overhead 
pools, e.g., accounting services, legal services, building occupancy 
and maintenance, etc., as direct costs.

J. Procurement and Property Management Standards

1. Procurement Standards
    For state and local governments, SJI has adopted the standards set 
forth in Attachment O of OMB Circular A-102. Institutions of higher 
education, hospitals, and other non-profit organizations will be 
governed by the standards set forth in Attachment O of OMB Circular A-
110.
2. Property Management Standards
    The property management standards as prescribed in Attachment N of 
OMB Circulars A-102 and A-110 apply to all SJI grantees and sub-
grantees except as provided in section VI.A.18. All grantees/sub-
grantees are required to be prudent in the acquisition and management 
of property with grant funds. If suitable property required for the 
successful execution of projects is already available within the 
grantee or subgrantee organization, expenditures of grant funds for the 
acquisition of new property will be considered unnecessary.

K. Audit Requirements

1. Implementation
    Each recipient of a Project Grant must provide for an annual fiscal 
audit. This requirement also applies to a state or local court 
receiving a sub-grant from the state supreme court. The audit may be of 
the entire grantee or sub-grantee organization or of the specific 
project funded by the Institute. Audits conducted in accordance with 
the Single Audit Act of 1984 and OMB Circular A-133, will satisfy the 
requirement for an annual fiscal audit. The audit must be conducted by 
an independent Certified Public Accountant, or a state or local agency 
authorized to audit government agencies. Grantees must send two copies 
of the audit report to the Institute. Grantees that receive funds from 
a federal agency and satisfy audit requirements of the cognizant 
federal agency must submit two copies of the audit report prepared for 
that federal agency to SJI in order to satisfy the provisions of this 
section.
2. Resolution and Clearance of Audit Reports
    Timely action on recommendations by responsible management 
officials is an integral part of the effectiveness of an audit. Each 
grantee must have policies and procedures for acting on audit 
recommendations by designating officials responsible for: (1) Follow-
up, (2) maintaining a record of the actions taken on recommendations 
and time schedules, (3) responding to and acting on audit 
recommendations, and (4) submitting periodic reports to SJI on 
recommendations and actions taken.
3. Consequences of Non-Resolution of Audit Issues
    Ordinarily, SJI will not make a subsequent grant award to an 
applicant that has an unresolved audit report involving SJI awards. 
Failure of the grantee to resolve audit questions may also result in 
the suspension or termination of payments for active SJI grants to that 
organization.

L. Close-Out of Grants

1. Grantee Close-Out Requirements
    Within 90 days after the end date of the grant or any approved 
extension thereof (see subsection L.2. below), the following documents 
must be submitted to SJI by grantees (other than ESP award recipients):
    a. Financial Status Report. The final report of expenditures must 
have no unliquidated obligations and must indicate the exact balance of 
unobligated funds. Any unobligated/unexpended funds will be deobligated 
from the award by SJI. Final payment requests for obligations incurred 
during the award period must be submitted to the Institute prior to the 
end of the 90-day close-out period. Grantees who have drawn down funds 
in excess of their obligations/expenditures, must return any unused 
funds as soon as it is determined that the funds are not required. In 
no instance should any unused funds remain with the grantee beyond the 
submission date of the final Financial Status Report.
    b. Final Progress Report. This report should describe the project 
activities during the final calendar quarter of the

[[Page 62106]]

project and the close-out period, including to whom project products 
have been disseminated; provide a summary of activities during the 
entire project; specify whether all the objectives set forth in the 
approved application or an approved adjustment have been met and, if 
any of the objectives have not been met, explain why not; and discuss 
what, if anything, could have been done differently that might have 
enhanced the impact of the project or improved its operation. These 
reporting requirements apply at the conclusion of every grant other 
than an ESP award.
2. Extension of Close-Out Period
    Upon the written request of the grantee, SJI may extend the close-
out period to assure completion of the grantee's close-out 
requirements. Requests for an extension must be submitted at least 14 
days before the end of the close-out period and must explain why the 
extension is necessary and what steps will be taken to assure that all 
the grantee's responsibilities will be met by the end of the extension 
period.

VIII. Grant Adjustments

    All requests for programmatic or budgetary adjustments requiring 
Institute approval must be submitted by the project director in a 
timely manner (ordinarily 30 days prior to the implementation of the 
adjustment being requested). All requests for changes from the approved 
application will be carefully reviewed for both consistency with this 
Grant Guideline and the enhancement of grant goals and objectives. 
Failure to submit adjustments in a timely manner may result in the 
termination of a grantee's award.

A. Grant Adjustments Requiring Prior Written Approval

    The following grant adjustments require the prior written approval 
of SJI:
    1. Budget revisions among direct cost categories that (a) transfer 
grant funds to an unbudgeted cost category or (b) individually or 
cumulatively exceed five percent (5%) of the approved original budget 
or the most recently approved revised budget (see section VII.I.2.d.).
    2. A change in the scope of work to be performed or the objectives 
of the project (see subsection D. below).
    3. A change in the project site.
    4. A change in the project period, such as an extension of the 
grant period and/or extension of the final financial or progress report 
deadline (see subsection E. below).
    5. Satisfaction of special conditions, if required.
    6. A change in or temporary absence of the project director (see 
subsections F. and G. below).
    7. The assignment of an employee or consultant to a key staff 
position whose qualifications were not described in the application, or 
a change of a person assigned to a key project staff position (see 
section VI.A.2.).
    8. A change in or temporary absence of the person responsible for 
managing and reporting on the grant's finances.
    9. A change in the name of the grantee organization.
    10. A transfer or contracting out of grant-supported activities 
(see subsection H. below).
    11. A transfer of the grant to another recipient.
    12. Pre-agreement costs (see section VII.I.2.a.).
    13. The purchase of automated data processing equipment and 
software (see section VII.I.2.b.).
    14. Consultant rates (see section VII.I.2.c.).
    15. A change in the nature or number of the products to be prepared 
or the manner in which a product would be distributed.

B. Requests for Grant Adjustments

    All grantees must promptly notify SJI, in writing, of events or 
proposed changes that may require adjustments to the approved project 
design. In requesting an adjustment, the grantee must set forth the 
reasons and basis for the proposed adjustment and any other information 
the program manager determines would help SJI's review.

C. Notification of Approval/Disapproval

    If the request is approved, the grantee will be sent a Grant 
Adjustment signed by the SJI Executive Director. If the request is 
denied, the grantee will be sent a written explanation of the reasons 
for the denial.

D. Changes in the Scope of the Grant

    Major changes in scope, duration, training methodology, or other 
significant areas must be approved in advance by SJI. A grantee may 
make minor changes in methodology, approach, or other aspects of the 
grant to expedite achievement of the grant's objectives with subsequent 
notification to SJI.

E. Date Changes

    A request to change or extend the grant period must be made at 
least 30 days in advance of the end date of the grant. A revised task 
plan should accompany a request for an extension of the grant period, 
along with a revised budget if shifts among budget categories will be 
needed. A request to change or extend the deadline for the final 
financial report or final progress report must be made at least 14 days 
in advance of the report deadline (see section VII.L.2.).

F. Temporary Absence of the Project Director

    Whenever an absence of the project director is expected to exceed a 
continuous period of one month, the plans for the conduct of the 
project director's duties during such absence must be approved in 
advance by the Institute. This information must be provided in a letter 
signed by an authorized representative of the grantee/sub-grantee at 
least 30 days before the departure of the project director, or as soon 
as it is known that the project director will be absent. The grant may 
be terminated if arrangements are not approved in advance by SJI.

G. Withdrawal of/Change in Project Director

    If the project director relinquishes or expects to relinquish 
active direction of the project, SJI must be notified immediately. In 
such cases, if the grantee/sub-grantee wishes to terminate the project, 
SJI will forward procedural instructions upon notification of such 
intent. If the grantee wishes to continue the project under the 
direction of another individual, a statement of the candidate's 
qualifications should be sent to SJI for review and approval. The grant 
may be terminated if the qualifications of the proposed individual are 
not approved in advance by the Institute.

H. Transferring or Contracting Out of Grant-Supported Activities

    No principal activity of a grant-supported project may be 
transferred or contracted out to another organization without specific 
prior approval by SJI. All such arrangements must be formalized in a 
contract or other written agreement between the parties involved. 
Copies of the proposed contract or agreement must be submitted for 
prior approval of SJI at the earliest possible time. The contract or 
agreement must state, at a minimum, the activities to be performed, the 
time schedule, the policies and procedures to be followed, the dollar 
limitation of the agreement, and the cost principles to be followed in 
determining what costs, both direct and indirect, will be allowed. The 
contract or other written agreement must not affect the grantee's 
overall responsibility

[[Page 62107]]

for the direction of the project and accountability to SJI.

State Justice Institute Board of Directors

James R. Hannah, Chairman, Chief Justice, Supreme Court of Arkansas, 
Little Rock, AR
Daniel J. Becker, Vice Chairman, State Court Administrator, Utah 
Administrative Office of the Courts, Salt Lake City, UT
Gayle A. Nachtigal, Secretary, Judge, Washington County Circuit Court, 
Hillsboro, OR
Hernan D. Vera, Treasurer, President & CEO, Public Counsel Law Center, 
Los Angeles, CA
Robert A. Miller, Chief Justice (ret.), Supreme Court of South Dakota, 
Pierre, SD
Chase T. Rogers, Chief Justice, Supreme Court of Connecticut, Hartford, 
CT
David V. Brewer, Chief Judge, Oregon Court of Appeals, Salem, OR
Wilfredo Martinez, County Judge, 9th Judicial Circuit of Florida, 
Orlando, FL
Marsha J. Rabiteau, Executive Director, Legal Policy Strategies Group, 
Bloomfield, CT
John B. Nalbandian, Partner, Taft Stettinius & Hollister LLP, 
Cincinnati, OH
Isabel Framer, President, Language Access Consultants LLC, Copley, OH
Jonathan D. Mattiello, Executive Director (ex officio)

Jonathan D. Mattiello,
Executive Director.
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                               APPENDIX B
 
 

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[FR Doc. 2012-24990 Filed 10-10-12; 8:45 am]
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