NEW YORK STATE EDUCATION DEPARTMENT JUNE 2016 Part 1: Charter Schools Program (CSP) Orientation Part 2: Recorded Fiscal Webinars

Introduction  Today’s participants:  Individuals from new charter schools  Consultants working with or on behalf of new charter schools  Part 1: CSP Orientation Doing business with New York State CSP application submission and review  Part 2: Fiscal Webinars: Fiscal Oversight (12/2/16): series.htmlhttp:// series.html The New EDGAR (4/15/16): The New EDGAR power point, webinar recordingThe New EDGAR power pointwebinar recording Developing Policies and Procedures: PowerPoint presentationPowerPoint presentation Allowability and Grants Management Presentation

Checklist/Steps  Gain an understanding of the CSP Grant  Become a NYS Vendor by registering with NYS Grants Gateway (step 3)  Become prequalified through Grants Gateway (step 4)  Complete the CSP Application (step 5) Please refer to checklist for details

So Why Are We Here?  Provide information on the following questions:  What is the CSP grant?  How may I use CSP grant funds?  How does my school apply for CSP funds?  What are the NYS grant requirements?

What is the CSP Grant?

 The New York State Education Department receives a federal Charter Schools Program (CSP) grant under Title V, Part B of the No Child Left Behind Act of 2001 (NCLB).  The primary purpose is to award grants to charter school applicants to enable them to plan and implement an effective charter school.  This grant program also supports dissemination of charter school best practices.

USDOE Non-Regulatory Guidance  The CSP grant is awarded to schools through a multi-year contract with the New York State Education Department. Within these years there are two phases:  Planning  Implementation  Certain expenditures are allowable during each phase. The USDOE Non-Regulatory Guidance document provides this information.

CSP Award Amounts & Eligibility  Charter schools issued charters by the Board of Regents or the State University of New York (SUNY) are eligible  Charter schools awarded CSP Replication Grants by the U.S. Department of Education are ineligible  Base amount of each CSP grant is $500,000, can increase up to $750,000 based on certain incentives :  an additional $250,000 at the time of the initial award to charter applicant that meets a “program design priority“ as designated by authorizer  an additional $125,000 should a grantee meet an “underserved student populations priority” during their first year of operation

How may I use CSP grant funds?

Planning vs. Implementation  Can be up to 18 months long prior to opening doors  Allowable expenditures include:  Salaries for Staff  Purchased Services  Supplies & Materials  Equipment Purchases  Travel Expenses  Rent  Can be up to 24 months long and span the first two years of operation  Allowable expenditures include:  Purchased Services  Supplies & Materials  Equipment Purchases  Travel Expenses Planning Phase Implementation Phase

Salaries  Salaries for professional and support staff are allowable during the planning phase  Upon receipt of per-pupil funding, CSP funds may not be used to fund salaries or any other item that would be paid for with state or local funding if CSP were not available. This is referred to as the ”supplement, not supplant” federal requirement - see CSP Nonregulatory Guidance (section D-3, page 15).  Salaries are generally not allowable during the implementation phase, unless it is personnel splitting time between ongoing operational activities and initial implementation activities  Only the portion of time related to initial implementation (ex., curriculum development, recruitment of students for future grades) may be funded with CSP.  The charter school must maintain accurate time and effort records to document the amount of time each employee works on tasks related to initial implementation.

Purchased Services  School’s may contract with vendors to provide services necessary for both the planning and implementation of services:  Professional development  Board of trustee training  Accounting and financial management  Proposed expenditures should include details on pricing structure  Hourly rate with total number of hours, or  Flat rate for the services described

Supplies & Materials  CSP funds may be used to purchase supplies and materials necessary for the day to day operation of school  Computers and related peripherals  Desks, chairs, other furniture  SmartBoards  Books and periodicals  School supplies  Curriculum Materials  Not allowable: Food purchases using CSP funds  Any item that has a unit cost in excess of $5,000 per item must be in the Equipment category, not the Supplies and Materials category.

Travel Expenses  CSP funds may be used to pay for expenses related to travel and attending professional development conferences  Expenses should be described in detail so that we can ascertain if they are reasonable and necessary

Equipment  Used for items in excess of $5,000 per item  Initial implementation activities may include acquiring necessary equipment and educational materials and supplies  The equipment must be necessary and reasonable for the proper and efficient performance and administration of the grant.  Equipment necessary to implement a charter school may include, but is not necessarily limited to:  Equipment related to physical education, art and playground equipment.

Construction  CSP funds may not be used for construction. However…  CSP funds may be used for necessary maintenance, repair, or upkeep of buildings and equipment that neither add to the permanent value of the property nor appreciably prolong its life, but merely keep it in an efficient operating condition.

Flexibility  Each grantee determines the amount and timing of CSP funds used within the multi-year grant period,  However a grantee:  cannot exceed the amount of the contract  must encumber funds within the contract period  must adhere to budget, or submit a budget amendment

How does my school access CSP funding?

Become a NYS Vendor 1.Obtain a Federal Employer Identification Number from the IRS (3a) 2.Obtain a DUNs number from Dun & Bradstreet (3b) 3.Go to 4.Complete registration form – submit with organization chart and Substitute W-9 5.NYS vendor ID will be assigned – notification via 6.Grants Gateway account will be assigned – notification via 7.Become prequalified in the Grants Gateway 8.Complete and submit NYSED payee information form 9.Obtain proof of workers’ compensation and disability insurance coverage or exemption ( )

Prequalification via Grants Gateway (4)  All not-for-profits must prequalify to do business with New York State  Answer questions and upload documents regarding capacity, compliance, integrity and services  Use Vendor Prequalification Manual 

Prequalification – Organizational Capacity (4a)  To demonstrate ability to operate in a sound, cost- effective manner  All questions must be answered; do not necessarily have to answer “yes”  Size and age of not-for-profit will be taken into account  To expand on answers,  (put the school’s name in subject line and refer to a specific question)

Prequalification Organizational Compliance (4b)  To present evidence of appropriate legal structure  Many questions based on assumption that NFP has been in operation  Answer questions truthfully, if necessary to add context (put the school’s name in subject line and refer to a specific question)

Prequalification – Integrity (4c) and Service Descriptors (4d)  Integrity - to ensure legal and ethical behavior  Be truthful – a “no” answer does not preclude prequalification  if necessary to add context (put the school’s name in subject line and refer to a specific  Service Descriptors - to describe NFP’s activities and community services

Prequalification – Document Upload (4e)  Certification of Incorporation or equivalent  IRS 501(c) letter of NFP determination (if pending, upload brief note of explanation)  IRS Form 990 (won’t be available – upload brief note of explanation)  Audited financial statements (won’t be available – upload brief note of explanation)  OAG Charities Bureau Form CHAR410 (upload brief note of explanation that charter schools are exempt from filing)  Board of Trustees Profile  Senior Leadership Resumes  Corporate Bylaws

Prequalification Determination  Review by State Agency Prequalification Specialist  Will contact NFP with questions or request for additional information, if needed  Once prequalified, good for three years  However, must annually upload IRS Form 990 and audited financial statements

CSP Grant Application Materials (5)  Due June 30, 2016:  Grant Cover Page  Project Narrative  Workplan  Minority and Women-Owned Business Enterprise (M/WBE) Documents  Two Budgets (FS-10s): One for 7/1/16- 6/30/17 One that combines 7/1/17 – 6/30/18 and 7/1/18 – 6/30/19 grant periods

M/WBE  Must comply with NYSED’s M/WBE policy:  Direct 30% of expenses in supplies & materials, equipment, travel & purchased services to vendors certified by the NYS Division of Minority and Women Business Development Salaries, benefits, rent and utilities are excluded  OR be approved for a partial or full waiver Must provide evidence of good faith efforts to achieve full participation Approval is difficult  Not necessary to submit the documentation by the application due date, but compliance must be finalized prior to development of the contract

Approval Procedures  SED reviews/approves ed CSP grant application  SED receives grant cover page, FS-10s and payee information form, with original signatures, in mail  SED receives/approves M/WBE documentation  Contract document ed to contact person  Sign and return as soon as possible (please follow instructions)  Three State agencies review and approve the contract  Contract will not be reviewed until prequalification occurs and WC/DB documentation is provided

Short List Become a NYS Vendor  FEIN (Step 3a)  DUNS # (Step 3b)  WC/DB documentation  Payee information form Register with NYS Grants Gateway (Step 3) Prequalify through Grants Gateway (Step 4) Apply for Grant (Step 5) Sign and Return Contract (w/ WC/DB documentation) Contract is approved Grant is awarded

Payments Payment occurs only after contract is approved:  Automatic first payment of 20% of first period FS-10 budget  May request additional payments of up to 70% via form FS-25 (  Remainder reimbursed after submission of FS-10-F final expenditure report for the first budget period

Continuation of the Grant  YEAR 1 (7/1/16- 6/30/17)  FS-10-F to close first grant period due 9/30/17  YEAR 2 (7/1/17-6/30/18)  FS-10 beginning 7/1/17 – 6/30/18 due 5/30/17  FS-10-F to close second grant period due 9/30/18  YEAR 3 (7/1/18-6/30/19)  FS-10 beginning 7/1/18-6/30/19 due 5/30/18  FS-10-F to close third grant period due 9/30/19  Additional non-fiscal documents will also be required for all year.

Best Case Timeline: CSP New Applications – Timeframe Description (reference to ‘Checklist Step’, if applicable) Summer 2016Authorizer approves charter June 16, 2016Webinar for new CSP applicants ASAPBecome a NYS vendor (step 3 a-c) ASAPRegister with NYS Grants Gateway (step 4) and become prequalified through Grants Gateway (step 6 a-e) June , 2016Submit CSP application documents (step 6) Through July 31, 2016SED Charter School Office staff review documents, solicits information and follow up requests from schools for additional information July Contract developed and ed to contact person ASAPSchool signs and returns contract. Contract cover provides address for return to SED Contracts Administration 4 Weeks (approx.)Office of Counsel, Attorney General, and Office of State Comptroller review and approve the contract 2 Weeks (approx.)Copy of contract is mailed back to contact person and initial 20% payment of budget period issued* *Note: In the best case scenario the earliest possible transfer of the initial cash payment is late summer contingent upon timely completion of checklist steps 3-7.

Are there other requirements of my school?

Requirements of Schools  In addition to vendor requirements and providing documentation, CSP recipient schools must adhere to the following:  Lotteries must be held annually. A lottery from a prior year cannot be the basis for current year enrollment. (Weighted lotteries, see next slide)  Schools, regardless of authorizer, must adhere to one section of the Charter School Audit Guide if receiving CSP funds. Please share the guide with your independent auditor. Audit Guide (includes requirement for a CSP AUP report) Audit Guide Charter School Audit Guide Summary

Weighted Lottery Generator Prior to amendments made to the 2014 federal Non-Regulatory Charter Schools Program (CSP) Guidance, charter schools receiving CSP funds were not permitted to weight admissions lotteries to favor certain student subgroups. With the approval of the U.S. Department of Education, New York State charter schools may now weight admissions through the use of a Weighted Lottery Generator created by the Charter School Office. The Weighted Lottery Generator is only intended to be used by schools receiving CSP funds. Please be sure to carefully read the guidance below for use of the Generator. Charter schools will not be permitted to use the program without first following the directions contained in the guidance. For planning purposes, charter schools may only weight for one at-risk subgroup of educationally disadvantaged students (i.e., economically disadvantaged students, English language learners, or students with disabilities). Consideration of one subgroup weight should be reflected in a request to modify a current enrollment policy in order to use the Weighted Lottery Generator.  Guidelines for Use of the NYSED Weighted Lottery Generator Guidelines for Use of the NYSED Weighted Lottery Generator

Part 2: Grants Management  Links to fiscal webinars are provided on slide 2.  New Federal Uniform Grant Guidance grant requirements went into effect 7/1/16 and should be incorporated into your policy and procedure manual.  After viewing fiscal webinars please send an to to confirm that you understand and have put in place grants management policies and procedures for your

 CSP application and allowable expenditures – Valerie Martin Kowalski or Susan DuFour  Becoming a NYS vendor, Grants Gateway and prequalification – Valerie Martin Kowalski  addresses Questions?