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Budget and Financial Guidelines
Carryover Budgets and FERs

Carryover Budgets and FERs

If the ISD and its subrecipients did not expend all program funds earned and/or other funds allocated, a carryover budget may be submitted if allowed, then a carryover FER (COFER) is required. Carryover is allowed for program funds earned, and transportation funds. The allowability of carryover for start up grant funds is dependent on the round in which funding was received. MiLEAP will provide specific information on allowability with each round. Regardless of the type of funding, any unexpended funds will be recaptured if a carryover budget is not submitted. The expenditure of carryover funds for program and transportation is reported in NexSys. Start up grant carryover expenditures are reported via an Excel template provided by MiLEAP. The carryover period is October 1 to June 30 of the subsequent grant year.

The ISD may allow each subrecipient to budget for carryover but will submit one aggregated COB and COFER to MiLEAP. The subrecipient agreements must specify how carryover can be accounted for by a subrecipient. Subrecipient carryover funds must be used by the subrecipient who had the carryover amount unless the written agreement between the ISD and the subrecipient specifies otherwise. Any carryover funds not accounted for in the COFER will be recaptured.

ISDs with excessive carryover or deferred revenue may see a reduction in future grant funding as the expectation is for grant funding to be spent in the year it was awarded. 

 

 

 

06/16/2026