1. Perkins V Where We Are and What to Expect Michael Brustein mbrustein@bruman.com Steven Spillan sspillan@bruman.com Brustein & Manasevit, PLLC Spring Forum 2016 1

2. AGENDA 1.Perkins Implementation Issues 2.Compilation of Perkins Violations and Risk Assessment 3.WIOA Coordination 4.AEFLA Coordination 5.Perkins Reauthorization 6.Reauthorization Issues 7.Questions Brustein & Manasevit, PLLC © 2016. All rights reserved. 2

3. 1. PERKINS CTE IMPLEMENTATION ISSUES Brustein & Manasevit, PLLC © 2016. All rights reserved. 3

4. What is the so-called “Three Year Rule”? See section 135 (a) “improve” CTE Brustein & Manasevit, PLLC © 2016. All rights reserved. 4

5. Is it permissible to certify effort by stating “Perkins Program”? See “cost objective” 2 CFR 200.28 Brustein & Manasevit, PLLC © 2016. All rights reserved. 5

6. Under EDGAR, can Perkins funds be obligated as late as June 30? See 34 CFR 76.707 Brustein & Manasevit, PLLC © 2016. All rights reserved. 6

7. Must my school “dispose” of equipment after it is no longer needed? See 2 CFR 200.313 (c) Brustein & Manasevit, PLLC © 2016. All rights reserved. 7

8. Must my school tag and safeguard assets costing under $500? See 2 CFR 200.302 (b)(4) Brustein & Manasevit, PLLC © 2016. All rights reserved. 8

9. May Perkins funds pay for my excess child care if the written travel policies are silent? Brustein & Manasevit, PLLC © 2016. All rights reserved. 9

10. If I purchase my airline ticket in May for a July conference, which year must I charge the cost to? See: 34 CFR 76.707 (f) Brustein & Manasevit, PLLC © 2016. All rights reserved. 10

11. Must my college adopt a new time and effort system under the UGG? Brustein & Manasevit, PLLC © 2016. All rights reserved. 11

12. May Perkins funds be used to pay student tutors? See Section 3(5) Brustein & Manasevit, PLLC © 2016. All rights reserved. 12

13. May Perkins funds be used to pay student transportation costs? Brustein & Manasevit, PLLC © 2016. All rights reserved. 13

14. Must a risk assessment be carried out by the State prior to awarding Perkins funds? Brustein & Manasevit, PLLC © 2016. All rights reserved. 14

15. May the State approve specific CTE costs prior to the date of a Substantially Approvable Plan? See 34 CFR 76.708 (a) Brustein & Manasevit, PLLC © 2016. All rights reserved. 15

16. Can my college use the HHS Approved Indirect Cost Rate for the Perkins program? See 2 CFR 200.331(a)(4) Brustein & Manasevit, PLLC © 2016. All rights reserved. 16

17. May the State impose more restrictive requirements than there are under EDGAR/UGG? See 2 CFR 200.331 (a)(3) Brustein & Manasevit, PLLC © 2016. All rights reserved. 17

18. May my school charge administrative and clerical costs directly to Perkins? See 2 CFR 200.413(c) Brustein & Manasevit, PLLC © 2016. All rights reserved. 18

19. May my school use Perkins funds to pay for a cost charged to non-federal funds last year? See Section 311 (a) Brustein & Manasevit, PLLC © 2016. All rights reserved. 19

20. Must Perkins funds be used annually for the nine mandatory uses in Section 135 (b)? Brustein & Manasevit, PLLC © 2016. All rights reserved. 20

21. Note ESSA: Secretary not authorized or permitted to issue new non-regulatory guidance that purports to be legally binding Impact on Perkins Non-Regulatory Guidance? Brustein & Manasevit, PLLC © 2016. All rights reserved. 21

22. 2. COMPILATION OF PERKINS MONETARY VIOLATIONS Appendix to 34 CFR 81 Brustein & Manasevit, PLLC © 2016. All rights reserved. 22

23. 1.INELIGIBLE BENEFICIENTS Perkins funds used to support program costs, but 15% of students not CTE. Result- Recovery of 15% Brustein & Manasevit, PLLC © 2016. All rights reserved. 23

24. 2.SUPPLANTING College expends $20,000 on an assessment for all students, seeks $10,000 reimbursement for 50% CTE students Result-Recovery of $10,000 Brustein & Manasevit, PLLC © 2016. All rights reserved. 24

25. 3.SET-ASIDE REQUIREMENT College spends $9,000 of its award of $100,000 on administrative costs Result- Recovery of $4,000 Brustein & Manasevit, PLLC © 2016. All rights reserved. 25

26. 4.UNAUTHORIZED ACTIVITIES College spends $20,000 on remedial programs Result- Recovery of $20,000 Brustein & Manasevit, PLLC © 2016. All rights reserved. 26

27. 5.LOCAL APPLICATIONS College spends $20,000 on welding equipment which was not included in its budget Result- Recovery of $20,000 Brustein & Manasevit, PLLC © 2016. All rights reserved. 27

28. OCTAE Assigns Risk Low Elevated Significant 28 Brustein & Manasevit, PLLC © 2016. All rights reserved.

29. Risk Factors Missed performance targets Lapsed funds Last time OCTAE monitored Prior audit findings Grant award conditions 29 Brustein & Manasevit, PLLC © 2016. All rights reserved.

30. In FY 2014, OCTAE assigned low ranking to 40 states Elevated ranking to 15 states 30 Brustein & Manasevit, PLLC © 2016. All rights reserved.

31. OIG Audit (A05P0002) March 28, 2016 Did OCTAE develop and implement controls: States submitting reliance performance data States and subs took corrective action for unreliable data/inadequate performance 31 Brustein & Manasevit, PLLC © 2016. All rights reserved.

32. Results OCTAE developed and implemented controls that Perkins performance data is reliable 32 Brustein & Manasevit, PLLC © 2016. All rights reserved.

33. States and subrecipients took corrective action for unreliable data and inadequate performance results 33 Brustein & Manasevit, PLLC © 2016. All rights reserved.

34. OCTAE’s Control Activities Using computerized data input controls and validation techniques Providing training to states Analyzing information in CARs for possible inaccuracies Conducting on-site or virtual monitoring 34 Brustein & Manasevit, PLLC © 2016. All rights reserved.

35. OCTAE’s Control Activities OCTAE requires CTE state director to sign annual attestation that performance data and FSR are accurate and complete. 35 Brustein & Manasevit, PLLC © 2016. All rights reserved.

36. 3. WIOA COORDINATION Unified or Combined State Plan Brustein & Manasevit, PLLC © 2016. All rights reserved. 36

37. LOCAL INFRASTRACTURE COSTS What are they? What went wrong with WIA Local option State option MOU Brustein & Manasevit, PLLC © 2016. All rights reserved. 37

38. Co-locating the one stop on the college campus Brustein & Manasevit, PLLC © 2016. All rights reserved. 38

39. KEY DATES 7/22/14- Enacted 4/16/15- NPRM 1/22/16- Final regs must be published Now June 2016??? Brustein & Manasevit, PLLC © 2016. All rights reserved. 39

40. Key Dates Many provisions delayed until 7/1/17 Brustein & Manasevit, PLLC © 2016. All rights reserved. 40

41. 4. AEFLA COORDINATION Brustein & Manasevit, PLLC © 2016. All rights reserved. 41

42. New AEFLA now allows for federal support for “workforce preparation activities” and “employability skills” Brustein & Manasevit, PLLC © 2016. All rights reserved. 42

43. “WORKFORCE PREPARATION” Basic academic Critical thinking Digital literacy Self-management Brustein & Manasevit, PLLC © 2016. All rights reserved. SKILLS 43

44. Skills necessary to successfully transition to and complete postsecondary education, training; and employment. Brustein & Manasevit, PLLC © 2016. All rights reserved. 44

45. 5. PERKINS REAUTHORIZATION Brustein & Manasevit, PLLC © 2016. All rights reserved. 45

46. REAUTHORIZATIONS VEA of 1963 1968 VEA Amendments 1976 VEA Amendments 1984 Perkins I 1990 Perkins II 1998 Perkins III 2006 Perkins IV Brustein & Manasevit, PLLC © 2016. All rights reserved. 46

47. PERKINS IV 7/1/07 6/30/08 – Transition Year 7/1/08 6/30/12 – S/P 7/1/12 GEPA Extension Brustein & Manasevit, PLLC © 2016. All rights reserved. 47

48. SECTION 134-LOCAL PLANS Brustein & Manasevit, PLLC © 2016. All rights reserved. 48

49. SECTION 135- USE OF FUNDS Expansion of allowable uses? Greater coordination with WIOA/AEFLA? Greater emphasis on size, scope, and quality of programs? Changes re: programs of study and non- traditional? Brustein & Manasevit, PLLC © 2016. All rights reserved. 49

50. Timing? Congress expected to reauthorize prior to election Secretary King pushing CTE agenda (not Arne Duncan) HEA Reauthorization may preempt Perkins Fall budget fight could derail any bill under consideration 50 Brustein & Manasevit, PLLC © 2016. All rights reserved.

51. Timing (cont) Best Guess: 2017 Reauthorization 2018 Transition Year 2019 New Law Operational Brustein & Manasevit, PLLC © 2016. All rights reserved. 51

52. 6. REAUTHORIZATION ISSUES Brustein & Manasevit, PLLC © 2016. All rights reserved. 52

53. Static Funding Mostly level funding for CTE: FY 2015: $1,117,598 FY 2016: $1,117,598 FY 2017 Request: $1,192,598 With annual budget fights getting more contentious, increased funding unlikely Any changes in Perkins unlikely to receive increased funding 53 Brustein & Manasevit, PLLC © 2016. All rights reserved.

54. REAUTHORIZATION ISSUES 1.Consortia 2.Competitive vs. Formula 3.Match Requirement 4.Competitive Innovation Fund 5.Programs of Study Brustein & Manasevit, PLLC © 2016. All rights reserved. 54

55. ACCOUNTABILITY Impact of WIOA/ESSA Brustein & Manasevit, PLLC © 2016. All rights reserved. 55

56. ACCOUNTABILITY (CONT). Best Guess: Other than rewrite of accountability, minor tinkering to more closely align training with labor market needs Brustein & Manasevit, PLLC © 2016. All rights reserved. 56

57. AACC Postsecondary Perkins Investments should be guided by industry and labor market information, including state-identified priority industries Brustein & Manasevit, PLLC © 2016. All rights reserved. 57

58. QUESTIONS? Brustein & Manasevit, PLLC © 2016. All rights reserved. 58

59. LEGAL DISCLAIMER This presentation is intended solely to provide general information and does not constitute legal advice or a legal service. This presentation does not create a client- lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. Brustein & Manasevit, PLLC © 2016. All rights reserved. 59