STATE FISCAL STABILIZATION FUND 2011 Updates February 1, 2011

Welcome During this webinar, we will share lessons learned during our 34 monitoring reviews and provide useful information to assist you in implementing the program in the coming year References: Applicant Information: Approved Phase 1and 2 applications: 2

Agenda I. Best practices and tips A. State administration B. Cash management and interest C. Separate tracking of funds D certifications II. SFSF updates from the Department III. Next steps and Q&A 3

Best practices and tips 4

Best practices: State administration  We have seen three key practices in States that have managed the use of SFSF funds well:  Transparency  Standardization  Communication and coordination 5

Cash management: collecting interest  Grantees may use a reimbursement or cash advance method for disbursing funds  Grantees and sub-recipients must return any interest earned on cash advances of grant funds in excess of $100 (LEAs/State agencies) or $250 (IHEs) each year to the Department (Parts 74 and 80 of EDGAR)  Recipients must have an interest policy in place and must remit interest promptly (at least quarterly) to: U.S. Department of Education P.O. Box St. Louis, MO

Separate Tracking of Funds “Gold Standard” Leading Practice 1.Created unique SFSF fund code 2.Recorded SFSF receipts into revenue account code within SFSF fund code 3.For the first SFSF payment receipt, recoded prior allowable costs into expenditure account codes within SFSF fund code 4.In order to track specific SFSF expenditures for reimbursement with SFSF revenues, recorded future allowable costs into expenditure account codes within SFSF fund code  States that were able to invest in a centralized accounting structure were generally able to establish a unique fund code for SFSF revenues and SFSF expenditures that were utilized by all LEAs  States that did not have a centralized accounting structure were also successful when they were able to communicate and monitor a uniform methodology 7

Unique SFSF Fund Code Revenue Account Expenditure Account Example- LEA #1 8

1511 certification tips  Required - Title XV 1511 certifications for subrecipients using SFSF for infrastructure should be  Posted on State website  Provided to the Department during monitoring  No standard form  See examples at:  Allowable uses: Sec , and of Title XIV 9

Differences between LEA and IHE 1511 certifications  Local education agencies (LEAs) may use SFSF funds for new construction; they also have fewer restrictions in terms of facility use  Institutions of higher education (IHEs) may use SFSF funds for “facilities that are primarily used for instruction, research, or student housing” 10

Questions? 11

SFSF updates from the Department 12

FY ’11 updates  Amendments to both the Phase 1 and 2 application for FY 2011 is can be made through a streamlined SFSF Amended Application. States will be able to update all their SFSF date on one application.  Posted on Applicant webpage (see Slide 2)  All States should submit amendments to their SFSF application by March 1, 2011 (in a manner compliant to section 508 of the Rehabilitation Act) and it to 13

Maintenance of Effort (MOE)  After updating MOE data in SFSF Amended Application, States must consider whether a FY 2010 MOE waiver is necessary.  For FY2010 waivers, submit final data or data that is unlikely to be revised.  For those who have submitted waivers, the Departments is currently processing FY 2010 waivers.  For FY 2011 waivers, the Department will not consider waivers until after the conclusion of the fiscal year for which the waiver is sought.  All States must meet the MOE requirements or waiver criteria for FY 2009, FY 2010 and FY  Guidance and waiver request form available on Applicant webpage (see Slide 2). 14

Example (FY06 MOE IHE) 1)Obtain reported amount on most recent application (Most recent SFSF Application) 2)Obtain summary table of expenditures (Attachment 1 on most recent SFSF Application) 15

3) Corroborate line items on summary table to supporting documentation (General Fund Statement of Appropriations and Expenditures) Example (FY06 MOE IHE) 16

Example (FY06 MOE LEA) 1)Obtain reported amount on most recent application (Most recent SFSF Application) 2)Obtain summary table of revenues (Appendix on most recent SFSF Application) 17

3) Corroborate line items on summary table to supporting documentation (Senate Bill Appropriation) Example (FY06 MOE LEA) 18

Contractor support  Each State will be assigned a lead contact at the Department, who will conduct the monitoring review with support from Westat and Deloitte & Touche  The Department has contracted with Westat to assist with State Fiscal Stabilization Fund monitoring reviews  To assist with the fiscal oversight and accountability review, Westat subcontracted with Deloitte & Touche LLP 19

Monitoring feedback process Monitoring Review (Desk Review or On-Site Visit) Monitoring concludes with Exit Call Draft Interim Report Issued State provides feedback on Draft Interim Report Interim Report issued to the State Department and State resolve pending issues Send letter to the Governor issuing final decisions on the monitoring review Share cross-cutting issues with other Department programs 20

Next steps and Q&A 21

Next steps  Update contact lists for SFSF, Ed Jobs, and 1512 as needed  Submit the Amended application form  Submit MOE waivers if required  Upcoming webinars:  Annual Performance Report (APR)  “SFSF 101” for new State staff 22

Questions? 23