NEW YORK STATE

EDUCATION DEPARTMENT

DECEMBER 4, 2014 Part 1: Charter Schools Program (CSP) OrientationPart 2: Grants Management

Part 3: Introduction to Federal ‘Omni’ Requirements

Introduction

Today’s participants: Individuals from new charter schools Consultants working with or on behalf of new charter

schools State Education Department staff:

Part 1: CSP Orientation Susan DuFour and Valerie Kowalski : CSP application submission and review Valerie Kowalski: NYS vendor, Grants Gateway and subcontractor requirements

Part 2: Grants Management (separate recorded webinar) Part 3: Federal ‘Omni’ requirements (separate recorded

webinar)

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

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?

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. A USDOE guidance document provides 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 CMO 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 during the grant period should grantee meet an “underserved student populations priority”

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 Phase12/16/2014 – School Opening

Implementation PhaseSchool Opening - 6/30/17

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

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 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.

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 fund use within the multi-year grant period, but cannot exceed the amount of the contract must encumber funds within the contract period

December 2013

How does my school access CSP funding?

Become a NYS Vendor

1. Obtain a Federal Employer Identification Number from the IRS (4a)

2. Obtain a DUNs number from Dun & Bradstreet (4b)

3. Go to www.grantsgateway.ny.gov

4. Complete registration form – submit with organization chart and Substitute W-9

5. NYS vendor ID will be assigned – notification via e-mail

6. Grants Gateway account will be assigned – notification via e-mail

7. Become prequalified in the Grants Gateway

8. Obtain proof of workers’ compensation and disability insurance coverage or exemption (http://www.wcb.ny.gov/ )

Prequalification via Grants Gateway (6)

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

Prequalification – Organizational Capacity (6a))

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)

Prequalification Organizational Compliance (6b)

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)

Prequalification – Integrity (6c) and Service Descriptors (6d)

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)

Service Descriptors - to describe NFP’s activities and community services

Prequalification – Document Upload (6e)

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 (7) Due December 31, 2014:

2015-17 Grant Cover Page Project Narrative Workplan Two Budgets (FS-10s): One for 12/16/14 – 6/30/15 grant period One that combines 7/1/15 – 6/30/16 and 7/1/16 – 6/30/17 grant periods For known subcontractors included in the budgets ,complete steps 7a - 7c

Payee information form (www.oms.nysed.gov/cafe/forms)

Upload to the SED portal (no e-mail, please)

Subcontractors (7a)

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

Approval Procedures

SED reviews/approves uploaded CSP grant application SED receives FS-10s and payee information form with original

signature in mail Contract document e-mailed 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 4a) DUNS # (Step 4b) WC/DB documentation

Register with NYS Grants Gateway (Step 5) Prequalify through Grants Gateway (Step 6) Apply for Grant (Step 7) Sign and Return Contract (w/ WC/DB documentation) 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 (www.oms.nysed.gov/cafe/forms) Remainder reimbursed after submission of FS-10-F

final expenditure report for the first budget period

December 2013

Continuation of the Grant

Spring 2015 – prepare FS-10 for second grant period beginning 7/1/15

Summer 2015 – prepare FS-10-F to close first grant period

Spring 2016 - prepare FS-10 for third grant period beginning 7/1/16

Summer 2016 – prepare FS-10-F to close second grant period

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 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) Charter School Audit Guide Summary

Best Case Timeline: CSP New Applications – 2015-17

Timeframe Description (reference to ‘Checklist Step’, if applicable)

Fall 2014 Authorizer approves charter

December 4, 2014 Webinar for new CSP applicants

ASAP Become a NYS vendor (step 4 a-c)

ASAP Register with NYS Grants Gateway (step 5) and become prequalified through Grants Gateway (step 6 a-e)

December 20 – 31 Submit CSP application documents (step 7 a-b)

Through Jan 31, 2014 SED Charter School Office staff review documents, solicits information and follow up requests from schools for additional information

1/1/2014 – ? Contract developed and e-mailed to contact person

ASAP School signs and returns contract. Contract cover e-mail 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 late spring 2015, contingent upon timely completion of checklist steps 4-7.

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

After viewing please contact Susan DuFour at susan.dufour@nysed.gov to confirm that you understand and have put in place grants management policies for your school.

Part 3: Federal ‘Omni’ Requirements

New Federal ‘Omni’ grant requirements go into effect 7/1/15 and should be incorporated into your policy and procedure manual. Grants Management Compliance and OMB Uniform Grants

Guidance Changes (Omni) PowerPoint presentation (1.1 MB) webinar recording featuring Tiffany Winters, Esq., from Brustein

and Manasevit, PLLC. For those without a background in developing financial policies and

procedures, a separate PowerPoint presentation (1 MB) tutorial may be helpful.

CSP application and allowable expenditures – Susan Dufour (susan.dufour@nysed.gov) or Valerie Martin Kowalski (valerie.martinkowalski@nysed.gov)

Becoming a NYS vendor, Grants Gateway and prequalification - Valerie Martin Kowalski (valerie.martinkowalski@nysed.gov)

Questions?