In May the Hawaii State Legislature appropriated $92,362 in Grant-in-Aid (GIA) funding for the Pahoa Booster Club. This grant was to go towards establishing the Pahoa football program serving the entire Puna area within the 96778 zip code, which includes all Pahoa public and charter schools, with the focus on an eight-man team. The Pahoa Booster Club was formed out of community desire to assist the Pahoa Regional Schools and their student athletic programs.
Parents have wondered where this money has gone and I’ve received comments like:
I heard that the $90K funding the new Pahoa Booster Club received to fund the 8 man football team hasn’t reached Pahoa school yet. You heard anything about that?…
I inquired with the Pahoa Booster Club and was forwarded the following from their accountant:
On October 9th the following was received from the DOE in reference to the GIA requestes that had been approved.
Due to declining tax revenue collections, on September 2, 2014, the Governor needed to impose a $24 million restriction (withholding) on the Department of Education’s general fund appropriation for the current fiscal year (7/1/14-6/30/15). To implement this restriction the Department of Education, with the approval of the Board of Education, will need to withhold a portion of each grant-in-aid appropriation as well as funding for many educational programs.
Guidance from the Budget Execution Policies that announced the $24 million restriction related to grant-in-aid appropriations is that “departments should refrain from requesting release of these types of appropriations until the start of the second half of the fiscal year.” What this is referring to is the prior written approval of the Governor that is required prior to the finalization of a contract with organizations that received grant-in-aid awards by the Legislature. So what the Budget Execution Policies are saying is Department’s should not even initiate the process until the second half of the fiscal year. http://budget.hawaii.gov/wp-content/uploads/2014/01/EM-14-06-FY-15-Budget-Execution-Policies-Instructions.pdf
Despite these instructions the Department of Education has already initiated the process and requested the Governor’s approval to release funds for all of the GIA’s appropriated through the Department’s EDN100 and EDN200 budgets.
We are currently awaiting approval for the finalization of contracts.
Keep in mind that even if the Governor approves the release of funds at a level higher than reflected above, unless a portion of the $24 million restriction is lifted the Department will only be able to expend up to the amounts in the last column of the table above.
At this point the football grant, under fiscal sponsor Kalani Honua, was reduced from $92,362 to $78,562.
On November 17, the contract was sent to the Booster Club, dated Nov 10, for the full amount of the original grant, $92,362 with a payment schedule calling for a 2nd quarter payment of $87,362. On November 18, a purchase order was received, dated 10/23/14 in the amount of $78,562.
Because of the different dated and numbers, the Booster Club invoice was submitted to the DOE for the amount of $87,362, which appear to be the correct amount because the contract was dated after the purchase order.
Last week, I received a phone call from the DOE that the invoice needed to be for the amount of the purchase order. That revised invoice was sent by Kalani Honua with a copy of the purchase order today. We are required to send hard copy, not fax or pdf.
The DOE has agreed to expedite processing as soon as the invoice is received.
I hope this explanation helps.