Perkins CTE Distribution and

Uses of Funds

Perkins Fiscal Training Part II-October 15,

2012

Goals

Explain the distribution of Perkins funds to local consortia

Review required and permissive uses of funds

Provide guidelines for using the funds

{Part I-Governance, 2012-2013 funding, and requirements www.cte.mnscu.edu/professionaldevelopment }

Distribution of Perkins Funds to Local Consortia

MN Perkins CTE Funds 2012-2013

Federal Fiscal Year 2012, State Fiscal Year

2013

FFY2012 Estimate

Title I Allocation 16,684,637

Title I Formula Funds 12,763,747

Title I Reserve Funds 1,418,194

State Administration 834,232

State Leadership 1,668,464

Title II Allocation (Tech Prep) 0

Amount of Tech Prep to be Consolidated with Basic Grant

0

Total 16,684,637

Secondary/Postsecondary SplitALLOTMENT AVAILABILITY OF FEDERAL FUNDS.

A cooperative agreement between the commissioner of education and Minnesota State Colleges and Universities will annually provide for the distribution of federal funds between secondary and postsecondary career and technical programs. Distribution to local education agencies must be determined by state and federal law.

- Minnesota Rule 3505.1700

Secondary/Postsecondary SplitMDE and MnSCU have negotiated a split under which:

• 42% of funds are distributed to secondary recipients, and

• 58% of funds are distributed to postsecondary recipients.

Secondary Distribution

The Perkins Act specifies that once the split is determined, funds will be distributed to secondary recipients on the following basis:

• 30% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive using the most recent US Census data available

• 70% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive in households of poverty using the most recent US Census data available

Postsecondary Distribution

The Perkins Act specifies that once the split is determined, funds will be distributed to postsecondary recipients on the following basis:

• 100% will be distributed on the basis of individuals in career and technical education programs receiving PELL or Bureau of Indian Affairs assistance

Reserve Distribution

The Perkins Act allows states to utilize an alternate method to distribute up to 10% of Perkins funds to address any of three factors:

1. rural areas;

2. areas with high percentages of career and technical education students; and

3. areas with high numbers of career and technical education students.

Reserve Distribution

Minnesota opted to address two of these three factors for the distribution of reserve funds to local recipients:

1. rural areas;

2. areas with high numbers of career and technical education students.

Reserve Distribution

The state distributes

• half of the reserve on the basis of the geographic area of the consortium

• half of the reserve on the basis of the number of CTE participants in secondary and postsecondary programs, weighted 3:1 toward secondary participation to reflect programming formerly conducted under tech prep

To better understand the process for distributing funds to Perkins consortia, please refer to the spreadsheet posted with the presentation documents.

For one consortium, the postsecondary formula allocation is based on 1,344 PELL recipients at the college out of a state total of 48,829 PELL/BIA CTE recipients at all colleges times the postsecondary formula allocation

= (1,344/48,829) x $7,402,973= .0275… x $7,402,973

= $203,764.08

In the same consortium, the secondary formula allocation is calculated for each district based 30% on its census population 5-17 and 70% on its census population 5-17 for households of poverty against a state total census count of 927,754 and a state total poverty census count of 123,968.

e.g. for District 0064= (4,750/927,754) x .30 x $5,360,774+ (470/123,968) x .70 x $5,360,774

= $22,460.98

When this is done for all nine secondary districts the total is:

District 0060District 0061District 0062District 0063District 0064District 0065District 0066District 0900District 4000TOTAL

18,456.6123,786.55

1,912.9928,791.7322,460.9822,407.7118,199.57

0.000.00

136,016.14

In this example, District 4000 is a charter school and District 0900 is a cooperative school district. As such, neither has a unique geographic area against which census data are applied, so the formula calculation for each of those districts is zero. The districts remain, however, members of the consortium and are entitled to participate in the development of the plan and the use of the funds.

District 0060District 0061District 0062District 0063District 0064District 0065District 0066District 0900District 4000TOTAL

18,456.6123,786.551,912.99

28,791.7322,460.9822,407.7118,199.57

0.00 0.00136,016.14

Reserve funds are based half on weighted participation and half on geographic area.

Using 2,552 secondary participants (including the intermediate and charter districts) and 5,687 postsecondary participants and a geographic area of 559.09 square miles:

= (2,552/107,229) x ¾ x .5 x $1,418,194+ (5,687/152,287) x ¼ x .5 x $1,418,194

+ (559.09 mi2/84,319.36 mi2) x .5 x $1,418,194= $23,979.02

These funds are divided 42% secondary and 58% postsecondary.

Postsecondary Participant Reserve CalculationSecondary Participant Reserve CalculationGeographic Area Reserve Calculation

So how much of the Perkins allocation belongs to District 0064?

0Nada

Zilch

Nuttin’Notapenny

Perkins is not an entitlement!

Naught

Zip

Minnesota relies on the language from Section 131(f)(2) of the Perkins Act which states:

"Funds allocated to a consortium ... shall be used only for purposes and programs that are mutually beneficial to all members of the consortium .... Such funds may not be reallocated to individual members of the consortium for purposes or programs benefitting only 1 member of the consortium."

Reallocation:

Funds are received by the local consortium for the period of the state fiscal year only (July 1 through June 30). At the end of this period, unused funds are returned to the state.

The state will combine funds returned from both the secondary and postsecondary levels into a single pot and will redistribute those funds to all local consortia on the basis of the distribution formula without using the reserve calculation.

We hope to generally do this as early in the Fall as possible.

• Redistributed funds will be handled as a separate award and accounts will reflect the federal fiscal year under which the funds were first granted (prior to redistribution).

• Funds will be used in accordance with the current year’s local plan – any changes must be approved by state staff.

• Once allocated, redistributed funds should be used before the current year funds – First In/First Out.

Uses of Perkins Funds

General Authority

Each eligible recipient that receives funds under this part shall use such funds to improve career and technical education programs.

- Carl D. Perkins Career and Technical

Education Act, Section 135

improve

Required Activities

The Act requires that certain activities be conducted within career and technical education programs if supported with federal funds. The Act does not require locals to use federal funds for these activities, but all required activities must be addressed in the local plan if Perkins funds are received.

1. Integration of academics (or liberal arts and sciences) with career and technical education programs

2. Link CTE at the secondary and postsecondary levels through at least one program of study (MN State Plan requires at least seven/consortium)

3. Provide students with understanding of all aspects of an industry

4. Develop, improve or expand the use of technology in CTE

5. Provide in-service and pre-service professional development

6. Develop and implement CTE program evaluations

7. Initiate, improve, expand and modernize quality CTE programs

8. Provide services that are of sufficient size, scope and quality to be effective

9. Provide activities to prepare special populations for high-skill, high-wage, or high-demand occupations that will lead to self-sufficiency

Minnesota has two additional required activities:

10.Collaboration/Brokering of Service/Continuum of Services

11.Articulation, PSEO, Concurrent Enrollment, or other recognized strategies

Permissible Activities

The Act allows certain activities to be conducted within career and technical education programs IF required activities have been addressed.

IF

1. Involving parents, businesses and labor organizations

2. Providing career guidance and academic counseling

3. Supporting local education and business partnerships

4. Providing programs [specifically designed] for special populations

5. Assisting career and technical student organizations

6. Mentoring and support services

7. Leasing, purchasing or adapting equipment to support academic and technical skill attainment

8. Teacher preparation programs

9. Developing and expanding postsecondary program offerings at times and in formats accessible for all, including distance learning

10.Develop initiatives to facilitate sub-baccalaureate to baccalaureate transfer

11.Support for entrepreneurship education and training

Local Administration

• Managing the money and managing the data

• May be supported by no more than 5% of consortium grant funds

• If the consortium sub-grants funds, the total of all administrative expenses may not exceed 5% of the consortium award

Guidelines for Using Funds

Fiscal Host Responsibility

• Receive and safeguard grant funds on behalf of the consortium in accordance with state and federal requirements

• Maintain separate disbursement records and receipts, make financial records/documentation available

• Disburse funds in accordance with the grant

Funds allocated to a consortium shall be used only for the purposes and programs mutually beneficial and agreed to by all members of the consortium and may not be reallocated to individual members for programs benefitting only one member.

Administrative costs are for those activities necessary for proper and efficient performance of eligible agency duties, i.e. fiscal support, supervision of activities, records retention, etc. The 5% administration cap includes indirect costs and costs for staff not directly related to a specific goal/objective of the grant.

Salaries for grant related activities – All time must be documented on the Personnel Activity Report. After 3 years the staff time must be sustained by the district and the consortium should show more funds going to new/ improved programming. Clerical support may be charged to the grant when working on a specific goal/objective and not administrative activities.

• Salaries for grant related activities – All time must be documented on the Personnel Activity Report. After 3 years the staff time must be sustained by the district and the consortium should show more funds going to new/improved programming. Clerical support may be charged to the grant when working on a specific goal/objective and not administrative activities.

• Supplies – Workshop expenses, books or new curriculum not previously offered, or program specific to Perkins. You cannot replace textbooks of an existing program. Promotional items are not allowed.

• Travel costs – meal/lodging for travel to professional development conferences is allowable when info. is shared in order to increase overall program quality.

Supplies – Workshop expenses, books or new curriculum not previously offered, or program specific to Perkins. You cannot replace textbooks of an existing program. Promotional items are not allowed.Travel costs – meal/lodging for travel to professional development conferences is allowable when info. is shared in order to increase overall program quality.

Salaries for grant related activities –

Travel costs –

Allowable costs:

Supplies –

Sub-distributions

• Consortia may sub-distribute funds on a competitive or other basis that supports the consortium as a whole

• The consortium may NOT sub-distribute funds on a formula basis

• Authority for spending decisions of the consortium must remain at the level of the consortium

Sub-awards – funds distributed by fiscal host to a member district, college or outside entity in order to carry out a goal/objective on behalf of the consortium.

• MDE grant – UFARS – FIN 428/628 and FIN 475/675, OBJ codes 303/304

• MnSCU—fiscal host college expends funds from Basic GL 384131, Reserve GL 384132 or Reallocated GL 384135 and a subrecipient college receipts and expends funds from Subgrant GL 384134

Supplement, Not SupplantSupplanting is the unlawful use of federal funds to displace state or local funds.

Supplement, Not SupplantSupplanting is determined on a case-by-case basis.

Federal funds cannot displace state or local funds, but a local entity may (in rare cases) use federal funds to support an activity if the local entity can prove that the activity would not have occurred without the federal expenditure.

Supplement not Supplant – Federal funds may not be used to pay for services, staff, programs or materials that would otherwise be paid with state/ local funds. State/local funds must be used for all activities that are the district/organization responsibility.

• Test #1 – Was the activity paid for in the prior year with non-federal funds?

• Test #2 – Was the activity required by state/local law or policy?

If the district can prove in the absence of federal funds it would have eliminated the activity, it may use the federal funds to support the activity, if allowable under Perkins.

Example 1 –

The Legislature reduced state funding by 6% resulting in a reduction in force that includes 3 CTE instructors.

The district may use federal funds to support those positions.

The district must retain evidence (e.g. legislation and school board minutes) to support its action.

Example 2 –

The school district needs to replace mathematics textbooks and decides to shift state/local funds from CTE to mathematics to make this purchase and to maintain the CTE program with federal funds.

Since in absence of federal funds the mathematics expenditure shift would not be made, this is unlawful supplanting.

ALWAYS check with the state before entertaining any spending decision that may be construed as supplanting!

ALWAYS

Equipment Inventories

All equipment must be labeled as Perkins and listed on an Equipment Record

An equipment inventory has been provided to secondary fiscal agents and must be updated and submitted annually

For postsecondary fiscal agents, the ISRS inventory must be updated annually

Indirect Costs

Indirect costs are the assignable costs of items such as heat and light to an academic program, and those expenses that benefit the entire entity and, therefore, cannot be directly charged to a specific cost category or project activity.

Indirect costs are allowable, but must be included as part of the 5% administrative set-aside.

Perkins CTE Financial Questions

• Please input your questions on the chat function.

Perkins CTE Financial Resources:

MN CTE Website www.cte.mnscu.edu/

– Perkins IV Operational Handbook Section III p. 24 Financial Requirements www.cte.mnscu.edu/consortium_resources/index.

– FY12 Local Application Section III Resources www.cte.mnscu.edu/forms/index.html

– Home page-FAQswww.cte.mnscu.edu/index.html

Perkins CTE Financial Training Webinars

• Perkins Fiscal Procedures and Requirements– Postsecondary Wednesday, October 17, 2012, 1:00 – 2:00 pm

• Perkins Fiscal Procedures and Requirements – Secondary Wednesday, October 24 , 2012, 10:00 -11:00 am

www.cte.mnscu.edu

Upcoming events:

• Annual Perkins Consortium Coordinators MeetingNovember 14, 2012Minnesota Department of Education, Roseville, MN

• CTE Works! Career & Technical Education Conference November 15, 2012Crowne Plaza West, Plymouth, MN

• http://www.cte.mnscu.edu/events/index.html

Thanks for joining us today!

We value your feedback about today’s session. Please click on the link in the chat window now tocomplete the session evaluation form or go to:

http://www.cte.mnscu.edu/professionaldevelopmnindex.html

and find the “Evaluation” link for this webinar.

REMINDER: For secondary participants, Continuing Education Units (CEU’s) will be made available for teachers for this series of webinars. In order to get the necessary certificates you MUST complete the session evaluation.

Slide 26

Presenters

JoAnn Simser, State CTE Director, joann.simser@so.mnscu.edu 651-201-1650

Shannon Kohlman, Grant Accountant, shannon.kohlman@so.mnscu.edu 612-548-2067 Minnesota State Colleges and Universities

Dan Smith, Supervisor, Center for Postsecondary Success, dan.smith@state.mn.us 651-582-8339 Minnesota Department of Education

Thank you for all you do for CTE in Minnesota…