Endow Clearance Memo

DATE :

TO : Sharon Mar

Desk Officer

Office of Management and Budget

THROUGH : Kate Mullan

Information Collections Clearance Division

Privacy Information and Records Management Services

FROM : John R.B. Clement, Ph.D.

Director

Institutional Programs Development Division

SUBJECT : Request for Extension Without Change, of the Previously Approved Financial

Reporting Form for Grantees under the Title III Part A, Title III Part B, and Title V

Program Endowment Activities and Endowment Challenge Grant Program

Attached is a request for extension of OMB No. 1840-0564 that will expire on October 31, 2013. We are requesting an extension without change of a previously approved collection.

There has been no appropriation for the Endowment Challenge Grant Program since Fiscal Year (FY) 1995. However, Public Law 98-95, the Challenge Grant Amendments of 1983, established a new Endowment Grant Program authorized by Title III of the Higher Education Act. In 1986, the name was changed to the Endowment Challenge Grant Program. In 1998, Congress amended Title III of the Higher Education Act by adding endowment building as an allowable activity under Title III and Title V Programs.

The statute requires that the grantee invest the Endowment Fund Corpus for twenty years and allows them to spend only up to 50 percent of the Endowment Fund Income earned during that time. This financial reporting form will also be utilized for Title III Part A, Title III Part B and Title V Program Endowment Activities.

In submitting this Annual Financial Report to our program office, the grantees must report the kind of investments that have been made, the income earned and spent, and whether any part of the Endowment Fund Corpus has been spent. With that information, we are able to give technical assistance and determine whether the grantee has complied with the statutory and regulatory investment requirements. The attached Form OMB 83 I and supporting documents are being submitted as required.

The terms of clearance from OMB’s notice of action stated that this collection will only be approved under the condition that the revised form is electronically accessible. This requirement has been met. The launch date for the electronic endowment reporting system was June 22, 2012. The reporting period will be held annually and the percentage of submissions collected electronically is expected to be 100 percent.

If you have any questions regarding this package, please contact Allison Brown at (202) 502-7611.