Charter School Planning Grants

Guidance Regarding Implementation

Prepared for PSA Webinar

June 8th, 2011

INTENDED OUTCOMES

Understand the application process for receiving Implementation funds.

Recognize and determine allowable expenditures in the Implementation phase.

Articulate the reporting expectations for expended funds.

CSP Planning and Implementation Grants

Purposes- To strengthen the pool of candidates applying for charters and to support those (non-profits) applicants who succeed in obtaining a charter contract as they launch the school they planned.

Non competitive- Implementation funds are generally awarded on a non-competitive basis

Ramping up- Provides support for the operations of a new charter school for purposes of equipping and supplying the school, developing needed materials and systems; and acquiring curriculum materials, texts, classroom equipment, and supplies.

What funds are available? Implementation funds shall be awarded for no

more than two years and shall equal at least $200,000 for each year.

Can provide funding for up to 24 months. Year one- $200,000 Year two- $200,000 An additional $50,000 is available per year for a high

school that gives plan, explore, Act tests/and provides results to MDE.

Funds Are Drawn on a Reimbursement Basis

Make sure you know when funds can be encumbered!!

Implementation- General You Have a Charter/District Code You have completed requirements of

stage 2 planning and completed the FER. Large Amounts of “Stuff” May Have More Developed Rel. with ESP

Must maintain independent documentationArms length and severable agreement Contract- Should be specific to products and

services and can effect allowable expenditures.

Implementation- Procurement

MISchool

Account.Manual

pp.246

Revised School CodeMCL 380.1274

EDGAR34 CFR part 80.36

“..subgrantees will use their own procurement procedures which reflect applicable State and local laws and regulations…” Boards should function free from an appearance of conflict of interest.

“schools must have competitive bidding procedures for purchases of supplies, materials, equipment which exceeds a bid threshold.”

Chart of Accounts- Function and Object Codes. (Available at MDE website)

Statutory Guidelines

Implementation- Procurement Expectations

Procurement is considered a core-compliance requirement. Develop and maintain a written procedure for

procurement transactions. (Internal Controls) Include specific deliverables in all contractsWritten code of conduct for individuals for

procurement transactions. Free from Conflict of Interest or the appearance of

a conflict of interest.

Implementation- Procurement Expectations (continued)

Ensure that procurement procedures provide for full and open competition

Bidding is necessary for goods over the state minimum.

REMCAny person who develops specifications, is

excluded from competing for contract awards.

Implementation Application- The Narrative

Builds Upon the original competitive application. Update the status of tasks and deliverables Propose new activities, tasks, and

deliverables for implementation.The narrative provides additional details that

are not included in the MP and BudgetCan provide context for allowable Expenses

Implementation-Management Plan and Budget

Identify tasks and deliverables that you intend to undertake and fund with grant dollars for the up to 12 month project period. (year one).

This becomes a comprehensive work plan Each task is identified by a number and

function code. (available at MDE website/audits)

i.e.- 111-1 Instructional supplies 111-2 Textbooks 331-1 Parent Input, 331-2 Career Fair

Common Function/Object Codes

Function Codes (Row)

111,112,113-leveled curriculum and assessment Work

231 Board, legal, PD 233 Grant .Management 232- Office Equip. Supplies 252- Accounting, Fiscal 284 Student Info. Systems 331 Community Relations

Object Code (Column)

Salaries 1000 Benefits 2000 Purchases Services 3000 Supplies and Materials 5000 Other Expenses 7000,8000

There are many additional

sub-divisions

Implementation Management Plan/Budget (cont.)

A synchronized budget is developed and posted in the MEGS application.

X’s are placed under the completion month-adapted to start date.

Proposals and modifications must be approved by the MDE prior to obligating funds.

Process for encumbering Implementation funds

Dev. Team Gets Notification Letter of charter

Notification To Mde

Contract Developed/Reviewed

Eligibility Letter/DistrictCode Sent toPSA Board

Letter From SPI Assigning District Code

MEGS IS OPENEDSG Submits CompletedImp. ApplicationMDE Review/Approval

ImplementationFunds Can BeEncumbered-LATEROF ELIGIBILITY LETTEROR SUBSTANTIALLY COMPLETED APPLICATION

1

2

3

45

6

7

Implementation Funds Requested

SPIEligibility Letter Received

Principles for Determining Allowable Activities

General Qualifying Questions Is it a one time expense (generally yes)Reoccurring (generally no)Must be reasonable, necessary, and allocable

to meet objectives of the grant.Must be included in the grant management

Plan and corresponding budget.20 U.S.C. 7221c(f)(3); 2 CFR 23

Basic Allowable Activities (Cont.)

A. Acquiring necessary equipment and educational material and supplies (not on-going)-How closely is it related to students/teachers and non-supplantingTechnology- (computers, printers,

projectors,etc.) Software to support the classroom and educational

Hook-up and installation cost.

Basic Allowable Activities (Cont.)

Textbooks and library booksDesks, tables, chairs, shelving, or other

equipment to support educational program. Not central office equipment

Educational supplies and materials Not general use office/cleaning supplies and

equipment.

Basic Allowable Activities (Cont.)

B. Acquiring and refining curriculum materials.Staff training- must be specific to curriculum,

instruction, assessment goals in narrative/management plan for purpose of building capacity.

Purchase of products and goods.

Basic Allowable Activities (Cont.)

C. Informing the community about the school. Can include

radio, print and electronic media development costs.

Costs of advertising-Awareness not promotion Website development and management Placards/Banners for grand openings, parent

partnerships, staff recruitment.

Basic Allowable Activities (Cont.)

D. Other INITIAL operational costs that cannot be met from state or local sources.Generally might include:

Health, code, safety inspections and certifications. Portable equipment for food service and custodial. Grant management fees- must be specific to tasks Engaging and training staff Development and production of handbooks Development and production of Board Policies and

Guidelines.

Basic Allowable Activities (Cont.)

Developing Human Resource Policies/ Protocols Purchase of evaluation software Training regarding new software Fees for consultants specifically related to

management plan tasks Technical assistance for PSA board of directors Office Implementation Costs- Accounting and

student data management systems Office equipment

Basic Allowable Activities (Cont.)

Generally would not include: Services or goods not included in Management plan and

budget. Tasks that do not directly impact students and teachers Administration (counselor/social work) specific purchases. Signage Security equipment- no alarms, surveillance No routine operational expenses, no internet, cable,

telephone, or utilities. Carpet, paint, lighting

Generally Would Not Include Cont.

Leases or constructionStudent enrollment processMonthly service feesAuditsReoccurring costs/Expendables Processing Staff- security checks, basic

human resources.20 U.S.C. 7221c(f)(3); 2 CFR 230

Reporting Requirements Mid-Year Progress Report – Checklist

Copies of PO’s to evidence internal controls. Invoices and cancelled checks for supplies

materials and services charged to grant. Documentation of all days and hours charged by

consultant/vendors/employees. Contracts –Deliverables and timesheets

Must be clear the Board is approving, purchasing and receiving goods and services.

Conclusion

Questions Evaluation Feedback