1. NEW YORK STATE EDUCATION DEPARTMENT DECEMBER 19, 2013 (REVISED DECEMBER 30, 2013) Part 1: Charter Schools Program (CSP) Orientation Part 2: Grants Management

2. Introduction  Today’s audience is comprised of:  Individuals from new charter schools  Consultants working with or on behalf of new charter schools  New York City Charter School Center: David Frank  State Education Department staff: Susan DuFour: Introduction and Audit Guide Blair Gearhart: CSP Application Submission and Review Valerie Martin Kowalski: NYS vendor, Grants Gateway and Subcontractor requirements.

3. Checklist/Steps  Gain an understanding of the CSP Grant  Become a NYS Vendor (step 4)  Register with NYS Grants Gateway (step 5)  Become prequalified through Grants Gateway (step 6)  Complete the CSP Application (step 7)  Submit subcontractor information (step 7 a-c) Please refer to checklist for details on each step

4. 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?

5. What is the CSP Grant?

6.  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 a charter school.  This grant program also supports dissemination of charter school best practices.

7. USDOE Non-Regulatory Guidance  The CSP grant is awarded through a 3 year contract with the New York State Education Department. Within these three years there are two phases:  Planning  Implementation  Certain expenditures are allowable under each phase. The document may be accessed via the following link.link

8. CSP Award Amounts & Eligibility  Charter schools issued charters by the Board of Regents or the State University of New York in December 2013 are eligible  Charter schools awarded CMO Replication Grants by the U.S. Department of Education are ineligible  The base amount of each CSP grant is $500,000 and can increase up to $750,000 based on certain incentives  Either, but not both, of the following incentives may also be awarded:  an additional $250,000 at the time of the initial award to any charter applicant that meets a “program design priority“ as designated by their authorizer  an additional $125,000 during the grant period should a grantee meet an “underserved student populations priority”

9. What may I use the CSP grant for?

10. 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 1/1/2014 – School Opening (Budget Period 1) Implementation Phase School Opening – 8/31/15 (Budget Period 2) 9/1/2015 – 8/31/16 (Budget Period 3)

11. Salaries  Salaries for professional and support staff are a permissible expenditure for CSP funds during the Planning phase  Once your school receives per-pupil funding, CSP funds may not be used to fund salaries or any other item that should be paid for with state or local funding. This is referred to as the ”supplement, not supplant” federal requirement, as outlined in the CSP Nonregulatory Guidance (section D-3, page 15).  Salaries are generally not permissible expenditures during the Implementation phase, unless they fund personnel splitting time between ongoing operational activities and initial implementation activities.  Only the portion of time related to initial implementation (i.e. curriculum development and 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.

12. Purchased Services  CSP Funds may be used to contract with vendors to provide certain services necessary to both the planning and implementation of services:  Professional Development  Board of Trustee training  Accounting and Financial Management  Expenditures associated with these services should be reported with specific details on pricing structure  Hourly rate with total number of hours, or  Flat rate for the services described

13. Supplies & Materials  CSP 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  Food purchases using CSP funds should be on a separate line, so that we can assess reasonableness of these costs  However, 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.

14. 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

15. 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.

16. 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.

17. How does my school access CSP funding?

18. Become a NYS Vendor 1.Obtain a Federal Employer Identification Number from the IRS 2.Obtain a DUNs number from Dun & Bradstreet; register with the federal System for Award Management 3.Complete Payee Information & Substitute W-9 forms (forms available at www.oms.nysed.gov/cafe/forms); www.oms.nysed.gov/cafe/forms Submit to: Information & Reporting Services New York State Education Department Room 868 EBA Albany, New York 12234 4. NYS vendor ID will be assigned – notification via e-mail

19. Register with NYS Grants Gateway 1.Go to www.grantsgateway.ny.govwww.grantsgateway.ny.gov 2.Complete registration form – submit with organization chart and Substitute W-9 3.Account will be assigned – notification via e- mail

20. Prequalification via Grants Gateway  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  http://www.grantsreform.ny.gov/Grantees http://www.grantsreform.ny.gov/Grantees

21. Prequalification – Organizational Capacity  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, e-mail prequal@mail.nysed.gov (put the school’s name in subject line and refer to a specific question) prequal@mail.nysed.gov

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

23. Prequalification – Integrity and Service Descriptors  Integrity- to ensure legal and ethical behavior  Be truthful – a “no” answer does not preclude prequalification e-mail prequal@mail.nysed.gov if necessary to add context (put the school’s name in subject line and refer to a specific question)prequal@mail.nysed.gov  Service Descriptors- to describe NFP’s activities and community services

24. Prequalification – Document Upload  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  Board of Trustees Profile  Senior Leadership Resumes  Corporate Bylaws

25. 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, CHAR500 and audited financial statements

26. CSP Grant Application Materials  Due December 31, 2013:  2014-15 Grant Cover Page  Project Narrative  Workplan  Two Budgets (FS-10): One for Planning Phase One for Implementation Phase For known subcontractors included in the budgets complete steps 7a, 7b and 7c

27. Contract Procedures  Review/approval of your application by Blair and Valerie.  Contract materials are e-mailed; must be signed and returned as soon as possible (please follow instructions).  Three State agencies must review the signed contract before the contract is approved.  Payment occurs only after contract is approved:  Automatic first payment of 20% of first period FS-10 budget;  Must 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.

28. Subcontractors  Submit list of known subcontractors with grant application.  Subcontractors to receive $100,000 or more from the contract must complete a Vendor Responsibility Questionnaire. Submit certification with signed contract.  Any subcontractor scheduled to receive $50,000 or more may be required to provide documentation of workers’ compensation and disability benefits insurance for their employees or proof of exemption.  Guidance available at www.p12.nysed.gov/psc/funding/1416cspapp.html www.p12.nysed.gov/psc/funding/1416cspapp.html

29. Short List Become a NYS Vendor  FEIN (Step 4a)  DUNS # and federal System for Award Management registration (Step 4b)  Complete payee information and substitute W-9 form (Step 4c) Register with NYS Grants Gateway (Step 5) Prequalify through Grants Gateway (Step 6) Apply for Grant (Step 7) Sign and Return Contract (w/ subcontractor information, Steps 7a-c if not already provided) Grant is awarded

30. Are there other requirements of my school?

31. 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  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 Charter School Audit Guide Summary

32. Best Case Timeline: CSP New Applications – FY2013-14 Timeframe Description (Reference provided to ‘Checklist Step’, if applicable) December 17, 2013Regents Approval of Charter December 19, 2013Webinar for new CSP Applicants ASAPBecome a NYS Vendor (step 4 a-c) ASAPRegister with NYS Grants Gateway (step 5) and become prequalified through Grants Gateway (step 6 a-e) December 20 – 31Submit via email the CSP application documents to SED (step 7 a-b) Through Jan 31, 2014SED Charter School Office staff review documents, solicits information and follow up requests from schools for additional information 1/1/2014 – 3/1/2014 Grants finance develops contract and e-mails it to contact person listed on cover page for signature ASAPSchool has up to 4 weeks to sign and return contract. Contract cover letter 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 2013-14 budget period issued* *Note: In the best case scenario the earliest possible transfer of the initial cash payment is April 15, 2014, contingent upon timely completion of checklist steps 4-7.

33. Part 2: Grants Management  Grants Management procedures should be a priority for any school receiving CSP funds. To aid you in setting up these procedures please view the following recorded presentation on Allowability and Grants Management:  Allowability and Grants Management Presentation Allowability and Grants Management Presentation  After viewing please contact Blair Gearhart at kgearhar@mail.nysed.gov to confirm that you understand and have put in place grants management policies for your school. kgearhar@mail.nysed.gov

34.  For questions regarding the CSP Application and Eligible Expenditures, contact Blair Gearhart @ kgearhar@mail.nysed.gov kgearhar@mail.nysed.gov  For questions regarding Grants Gateway and Prequalification, contact Valerie Martin Kowalski @ vmartin@mail.nysed.gov vmartin@mail.nysed.gov Questions?