Chapter 43 An Act Relative to Improving Accountability and Oversight of Education Collaboratives Presentation to Board of Elementary and Secondary Education March 20, 2012

Massachusetts Department of Elementary and Secondary Education 2 Summary of key provisions  Creates legislative commission to study the role of collaboratives  Establishes new accountability requirements for collaboratives, including annual reporting and independent audits  Authorizes Board of ESE to adopt regulations regarding oversight of collaboratives  Requires ESE to train new collaborative board members

Massachusetts Department of Elementary and Secondary Education 3 Collaborative board  One voting member appointed annually by each member school committee or member charter school board from among its membership. A school committee may appoint its superintendent.  One voting member appointed by the Commissioner.  Must hold a minimum of six meetings annually.  Each board member:  must participate in training provided by ESE within 60 days of appointment.  must provide quarterly updates to his/her appointing school committee or charter school board at an open meeting.  is prohibited from receiving a salary or stipend for services as a board member.

Massachusetts Department of Elementary and Secondary Education 4 Other new requirements  Each collaborative must amend its agreement to conform with new law by March 2013  Clarifies requirements to employ certified (licensed) personnel, including school nurses  Each collaborative must maintain a web site with: agreement, annual reports, board minutes, etc.  Prohibits establishment of new programs that provide services to adults, but allows existing programs to continue  Prohibits board members, executive directors, or any other employee from holding any position at a non- profit or for-profit entity that conducts business with or is affiliated with the collaborative

Massachusetts Department of Elementary and Secondary Education 5 Fiscal requirements  May enter into contracts for purchase of supplies, materials and services and for purchase or leasing of land, buildings and equipment, subject to G.L. c.30B  May borrow money, enter into long- or short-term agreements or mortgages and receive grants consistent with the purpose of the collaborative  Must notify each member within 30 calendar days of applying for real estate mortgages  Must adopt and maintain a financial accounting system in accordance with GAAP and any supplemental requirements prescribed jointly by Commissioners of ESE and DOR

Massachusetts Department of Elementary and Secondary Education 6 Reporting requirements  File annual independent audits of the collaborative’s financial statements with ESE, State Auditor and its members by January 1, to include  the names, duties and compensation of the 5 most highly compensated employees  transactions between collaborative and related for-profit or non-profit organization  amounts expended for services to individuals over 22  amounts expended on administrative overhead  transactions related to purchase, sale, rental or lease of real property  Collaborative board must discuss and vote on independent audits in open meeting

Massachusetts Department of Elementary and Secondary Education 7 Board of ESE: new authority  Promulgate regulations, to include  Standards for certification and completion of board member training  Components of the required annual report  Amount of cumulative surplus revenues held by collaboratives at the end of the fiscal year  Administrative procedures for requiring remedial plans, revoking approval of an agreement, or withholding public funding if the viability of the collaborative is at risk

Massachusetts Department of Elementary and Secondary Education 8 Board of ESE authority, cont’d.  Upon the recommendation of the Commissioner:  Authority to approve all collaborative agreements and amendments  May suspend or revoke with cause the written collaborative agreement, following other remedial steps

Massachusetts Department of Elementary and Secondary Education 9 Dept. of ESE: new authority  Commissioner:  Must appoint one “independent” voting member to each collaborative board  May assign probationary status to collaborative to allow implementation of a remedial plan  May direct school districts and charter schools to withhold payment of public funds  May, in consultation, with A&F, withhold state funds  Makes recommendations to Board of ESE on approval or revocation of agreements or amendments

Massachusetts Department of Elementary and Secondary Education 10 Dept. of ESE authority, cont’d.  Create and provide training to all collaborative board members  Develop a model agreement no later than September 2012  May review or audit collaborative’s records to determine accuracy, to ensure compliance and to determine whether the collaborative is maintaining effective controls over finances  May enter into an agreement with the operational services division to assist in review of finances or posting of collaborative audits on line  Collect collaborative independent audits as of January 1  Collect annual reports by January 1 for the previous fiscal year and provide a printed copy, upon request  Report on MCAS results by collaborative  Review the programs and services of collaboratives every 6 years to determine compliance with agreement and any requirement of regulation or law  Maintain a website to include: model agreement, annual reports, audits

Massachusetts Department of Elementary and Secondary Education 11 Legislative commission  Co-Chaired by House and Senate Chairs of the Joint Committee on Education  First meeting must take place by May 1st  Commission must issue a report of its recommendations no later than 12 months after its first meeting

Massachusetts Department of Elementary and Secondary Education 12 Legislative commission: topics  Whether a statewide network of collaboratives should be established to implement new programs and provide technical assistance in partnership with ESE  Whether collaboratives are appropriate settings for providing programs to developmentally disabled adults over the age of 22  How to maximize the efficiency and capacity of existing collaboratives  Appropriate role and relationship between collaboratives and profit or non-profit agencies  Appropriate compensation levels and authority of collaborative management employees  Merits of merging or consolidating existing collaboratives, including a study of the effect  Provision of non-education related services by collaboratives to other government entities and appropriateness and effect of those provisions on the core mission of the collaborative