Striving Readers Comprehensive Literacy Grantee Meeting March 6-8, 2012 Chicago, Illinois

1. Striving Readers Comprehensive Literacy Grantee Meeting March 6-8, 2012 Chicago, Illinois

2. This information is being provided for the purpose of the fiscal year (FY) 2012 Striving Readers Comprehensive Literacy grantees meeting. Assessment tools, curriculum, and other information and materials mentioned or shown at this meeting by presenters or grantees are provided as resources and examples for the viewer’s convenience. Their inclusion is not intended as an endorsement by the U.S. Department of Education. In addition, the instructional practices and assessments discussed or shown in these presentations are not intended to mandate, direct, or control a State's, local educational agency's, or school's specific instructional content, academic achievement system and assessments, curriculum, or program of instruction. States and local programs are free to use any instructional content, achievement system and assessments, curriculum, or program instruction that they wish, so long as the instructional materials and literacy activities meet the Striving Readers Comprehensive Literacy program requirements and are part of their approved grant application.

3. Striving Readers Comprehensive Literacy (SRCL): March 2012 Business Meeting Grant Management Issues Rachel Peternith Program Attorney, Office of the General Counsel

4. Rachel Peternith Program Attorney, Office of the General Counsel

5. Shaw Vanze Program Attorney, Office of the General Counsel

6. Topics for discussion: Basic Grant Administration Tools Background Program Requirements Statutory Funding Percentages Equitable Distribution Subgranting Hearing Rights Monitoring Fiscal Controls Recordkeeping Reporting

7. Grant Administration Basic tools for administering your SRCL grant: Your approved application & grant conditions Program Statute: (Pub.L. 111–117—DEC. 16, 2009, page 123 STAT. 3260 http://www.gpo.gov/fdsys/pkg/PLAW-111publ117/pdf/PLAW-111publ117.pdf ) Notice Inviting Applications:(76 FR 13143 http://www.gpo.gov/fdsys/pkg/FR-2011-03-10/pdf/2011-5545.pdf) Education Department General Administrative Regulations (EDGAR): (http://www2.ed.gov/policy/fund/reg/edgarReg/edgar.pdf) OMB Cost Circulars:(http://www.whitehouse.gov/OMB/circulars/)

8. Background- basics from the program statute Striving Readers Comprehensive Literacy (SRCL)- (statutory authority - FY 2010 Consolidated Appropriations Act (Pub. L. No. 111-117) under the Title I demonstration authority (Part E, Section 1502 of the Elementary and Secondary Education Act (ESEA)): A comprehensive literacy development and education program to advance literacy skills, including pre-literacy skills, reading, and writing for students from birth through grade 12, including limited-English-proficient students and students with disabilities Not less than 95% of funds to be subgranted to LEAs or LEAs/nonprofit early childhood providers that partner with public/private nonprofit with demonstrated record of effectiveness… Eligible entities receiving subgrants from SEAs shall use such funds for services and activities that have the characteristics of effective literacy instruction through professional development, screening and assessment, targeted interventions for students reading below grade level and other research-based methods of improving classroom instruction and practice.

9. Program Requirements An SEA awarded a grant under this program-- (a) Must develop or update, implement, and continuously improve a comprehensive State literacy plan (as defined in this application); (b) Must align the use of Federal and State funds and programs within the SEA and in LEAs in the State, including funds under Title I, Title II-A, and Title III of the Elementary and Secondary Education Act of 1965, as amended (ESEA), and, as appropriate, under the Head Start Act, the Individuals with Disabilities Education Act, and the Carl D. Perkins Career and Technical Education Act of 2006, to support a coherent approach to funding and implementing effective literacy instruction (as defined in this application) for disadvantaged students;

10. Program Requirements Must make the process and the results of its review of subgrant applications publicly available,including the procedures the SEA used to review and judge the evidence base and the alignment with State standards for the curricula and materials LEAs propose to use; and Must ensure that SRCL subgrant funds are used to implement a comprehensive and coherent literacy program that serves students from birth through grade 12,or at any period in the birth through grade 12 continuum as determined by a needs assessment, and includes each of the components of effective literacy instruction and that-- (1) Provides effective professional development in literacy, including in instructional strategies to meet the literacy needs of disadvantaged students such as limited-English-proficient students and students with disabilities, to teachers of reading, English, or language arts, which may also include professional development in literacy for teachers of other subjects and for teachers or instructional providers for children from birth through age five;

11. Program Requirements (2) Uses curriculum and instructional materials that are alignedwith State standards, incorporate the components of effective literacy instruction, and, as appropriate, incorporate technology and principles of universal design for learning to support children and youth with diverse learning needs, including disadvantaged students; (3) Uses coherent assessment systemsthat are aligned with State standards and assessments and that include-- (i) Valid and reliable screening measures or strategies; (ii) Valid and reliable diagnostic and progress- monitoring measures; (iii) The systematic use of the assessment data to inform instruction, interventions, professional development, and continuous program improvement; and (iv) Appropriate accommodations necessary to ensure that all children and youth, including disadvantaged students, are reliably and accurately assessed; (4) Implements interventionsto ensure that all children and youth, including both children and youth who have mastered the material ahead of their peers and children and youth struggling with the material, are served appropriately;

12. Program Requirements (5) Provides language- and text-rich classroom, school, and early learning program environments that engage and motivate children and youth in speaking, listening, reading, and writing; and (6) Informs continuous improvement by monitoring program implementation and outcomes, including the effectiveness of professional development, and tracking implementation and outcomes at the LEA or early childhood education provider, school, classroom, and student levels.

13. Statutory Requirements- Funding Distributions An SEA awarded a grant under this program-- (b) Must ensure that at least-- (1) 15% of the funds it subgrants to LEAs or other nonprofit providers of early childhood education (SRCL subgranted funds) are used to serve children from birth through age 5; (2) 40% of its SRCL subgranted funds are used to serve students in kindergarten through grade 5; and (3) 40% of its SRCL subgranted funds are used to serve students in middle and high school, including an equitable distribution of funds between middle and high schools; (c) May reserve up to 5% of funds received under this competition for State leadership activities, including technical assistance and training, data collection, reporting, and administration.

14. Funding Distributions We’ve received a number of questions on the statutory required funding percentages, here is a “math” breakout: (Up to) 5% for state admin = 5% of total grant award Remaining 95% of award must be subgranted: Birth-K entry = 15% of 95% = 14.25% of total award K – 5th grade = 40% of 95% = 38% of total award 6th- High school= 40% of 95% = 38% of total award Amount remaining = 4.75% of total grant award that must be subgranted, but at state’s discretion as to what age range (consistent with approved application)

15. State Admin Funds May the 5% for state admin be consolidated under section 9201 of the ESEA? Yes, States may consolidate SRCL administrative funds, BUT they are still responsible to undertake all activities that they committed to do under their approved SRCL application.  The 5% still must be used for leadership activities, including technical assistance, training, data collection, reporting, and administration, and must include the activities described in the approved application. 

16. Equitable Distribution “40 percent of its SRCL subgranted funds are used to serve students in middle and high school, including an equitable distribution of funds between middle and high schools;” States have discretion to determine how to best allocate the “equitable distribution” Different ways to think about distribution: 20%/20% split between middle and high schools Per-pupil in middle/high school formula Complete needs assessment, per-pupil in-need formula States needs to document and explain how they are maintaining an “equitable distribution” between middle and high schools, consistent with their approved application

17. Funding Distributions Bottom line- it is up to you, the grantees, to maintain adequate documentation demonstrating that all of funding distributions/requirements have been met!

18. StatutoryRequirements-Eligible Subgrantees An SEA awarded a grant under this program-- (a) Must subgrant no less than 95% of funds received under this competition to LEAs or, in the case of early literacy, to LEAs or other nonprofit providers of early childhood education that partner with a public or private nonprofit organization or agency with a demonstrated record of effectiveness in improving the early literacy development of children from birth through kindergarten entry and in providing professional development (as defined in the application) in early literacy, giving priority to such agencies or other entities serving greater numbers or percentages of disadvantaged students; (**Remember- In early literacy, LEAs or other nonprofit provider subgrantees must have the requisite partner identified in the language above.)

19. Eligible Subgrantees- who is a nonprofit? Under EDGAR, nonprofit, as applied to an agency or organization, means that it is owned and operated by one or more corporations or associations whose net earnings do not benefit, and cannot lawfully benefit, any private shareholder or entity.

20. Demonstrating Nonprofit Status A nonprofit may show its status by (EDGAR, 34 CFR 75.51): (1) Proof that the Internal Revenue Service currently recognizes the applicant as a 501(c)(3); (2) A statement from a State taxing body or the State attorney general certifying that: (i) The organization is a nonprofit organization operating within the State; and (ii) No part of its net earnings may lawfully benefit any private shareholder or individual; (3) A certified copy of the applicant's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or (4) Any item described in paragraphs (1) (1) through (3) of this section if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate.

21. Subgranting States shall follow state law and procedures when awarding and administering subgrants and ensure that subgrantees are aware of requirements imposed upon them by Federal statute and regulation. (EDGAR, 34 CFR 80.37).

22. Subgranting Remember, only the State has authority to make subgrants under the program statute, as required by EDGAR 75.708. LEAs and other subgrantees do not have authority to subgrant, although they may procure services through contracts, etc.

23. Aggrieved Applicants For any application for a new subgrant that is not approved, the SEA applies the following procedures: 1.  The SEA gives the applicant notice of its final agency action. 2.  The SEA provides the applicant an opportunity for a formal hearing if— - the applicant requests a hearing within 30 days of the SEA’s final action; and - the applicant alleges a violation of State or Federal law, rules, regulations, or guidelines governing the SRCL program.

24. Aggrieved Applicants con’t 3.  As required by section 432(a) of GEPA, the SEA provides the formal hearing (“GEPA section 432(a) hearing”) within 30 days of a timely and sufficient hearing request, and includes a minimum of-- notice of the hearing to the applicant; an opportunity for the applicant to participate in the hearing and be represented by counsel; an opportunity for the parties either orally or in writing to present and challenge evidence in an orderly fashion before an impartial decisionmaker; and a resulting record that would provide the basis for a review of the  SEA’s final action following the hearing. 

25. Aggrieved Applicants con’t 4.  The SEA issues a written ruling within 10 days after the formal hearing with supporting reasons upholding the final action, or rescinding the final action if it determines that the final action is contrary to State or Federal rules, regulations, or guidelines governing the program.  5.  If the SEA does not rescind its final action, the applicant may appeal the SEA’s action to ED concerning Federal rules, regulations, or guidelines, by filing notice with the Secretary within 20 days of receiving notice from the SEA of the SEA’s final action.   Section 432(a), General Education Provisions Act, 20 U.S.C. 1231b-2(a)

26. What parts of EDGAR apply? Education Department General Administrative Regulations located in Title 34 of the Code of Federal Regulations. Part 75: all grantees and subgrantees Part 74: specific rules for subgrantees that are institutions of higher education or non-profit organizations; Part 80: all grantees and subgrantees, as well as specific rules for LEA or tribal government subgrantees Parts 77 (definitions), 81, 82, 84, 85, 86, 97, 98, 99: all grantees and subgrantees http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html

27. Changes to Approved Plan Remember, by accepting a SRCL grant, each State agreed to implement the overall activities and meet the timelines in its approved application. As such, each SRCL State will be held accountable for implementing that SRCL plan. The Department has the authority to approve changes to your plan provided: • The revisions do not result in the grantee’s failure to comply with the terms and conditions of the award and the program’s statutory and regulatory provisions; • The revisions do not change the overall scope and objectives of the approved proposal; and • The Department and the grantee mutually agree in writing to such revisions. The Department has sole discretion to determine whether to agree to such revisions or modifications.

28. When must a grantee seek prior approval from ED? Cumulative budget transfers greater than 10% of the current total approved budget (EDGAR, 34 CFR 80.30(c)(1)(ii); Transfers of funds allotted for training allowances and/or indirect costs (EDGAR, 34 CFR 80.30(c)(1)(iii); Budget revisions that involve purchase of capital equipment/expenditures, i.e., equipment with a useful life of at least 1 year and an acquisition cost of $5,000 or more, unless that equipment cost is included in the grantee’s approved application; Any change of key project staff (EDGAR, 34 CFR 75.517); Contracting out, sub-granting, or otherwise obtaining the services of a third party to perform activities that are central to the purpose of the award (EDGAR, 34 CFR 80.30(d)).

29. Allowable Costs Basic cost rule: uses of funds are allowable if reasonable and necessary for performance of the grant, allocable to the program, and reasonable in nature. OMB Cost Circulars establish principles and standards for determining costs for Federal awards. http://www.whitehouse.gov/omb/circulars_default

30. Allowable Costs Allocable Cost: A cost that can be traced to specific activities of a grant project. Allowable Cost: A cost incurred by a grantee that is: Necessary and reasonable for the performance of the award; A cost is reasonable, if in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Conforms with any limitations or exclusions set forth in the Federal cost principles; Consistent with the grantee’s policies and procedures that apply uniformly to both Federally-financed and other activities of the grantee; Determined in accordance with generally-accepted accounting principles; Not included as a cost in any other Federally-financed grant (unless specifically authorized by statute).

31. Which cost circular applies? State, Local and Indian Tribal Governments: OMB Circular A-87 Educational Institutions (i.e., IHEs): OMB Circular A-21 Nonprofit Organizations: OMB Circular A-122 Commercial For-Profit Organizations: 48 CFR Chapter 1, Part 31 http://www.access.gpo.gov/nara/cfr/waisidx_03/48cfr31_03.html http://www.whitehouse.gov/omb/circulars_default

32. Allowable cost example- personnel General rule: In all cases, payments of any type to personnel must be supported by complete and accurate record-keeping of time and effort. Specifically, how must my type of entity support compensation for personnel services? IHEs (Cost Circular A-21): institution’s practice, so long as in compliance with Circular. Local/state/tribal governments & entities (Cost Circular A-87): 100% FTE – semi-annual certifications; part-time staff – monthly, after-the-fact, personnel activity reports(PARs) accounting for total compensated time in all activities. Non-profits (Cost Circular A-122): 100% FTE – semi-annual certifications; part-time – monthly, after-the-fact, PARS accounting for total compensated time.

33. Monitoring your program What are my monitoring responsibilities? Managing day-to-day operations and overseeing your subgrantees Monitoring activities for compliance with applicable Federal requirements and performance goals Reporting to ED any problems, delays, or adverse conditions that may materially impair my ability to meet the objectives of my award. (EDGAR, § 80.40)

34. Accountability: fiscal controls What is the basic rule? Use procedures that insure proper disbursement of and accounting for Federal funds. (EDGAR, § 75.702) What does “proper disbursement” mean? Minimize the time between drawing down grant funds and disbursing those funds (i.e., draw down funds as close as possible to making payment). (EDGAR, §§ 74.22 and 80.21)

35. Accountability: fiscal controls In general, what is a proper “accounting”? Keeping records of: the grant amount; how it’s used; the total project cost; any share from other sources; and other records to facilitate an effective audit. (EDGAR, § 75.730) Keeping records showing compliance with program requirements. (EDGAR, § 75.531) Keeping records of significant project experiences and results, and using them to determine progress and improve the program. (EDGAR, § 75.732)

36. Accountability: fiscal controls What type of financial management system is required?(EDGAR, sections 74.21, 75.702, and 80.20) In general, what is a proper “accounting”? Records that identify the source and application of federal funds (from drawdown to disbursement); Records that show a comparison of outlay with budgeted amounts for each award; Accounting records including cost accounting records that are supported by source documentation; Written procedures for determining the reasonableness, allocability, and allowability of costs; and Written procedures for minimizing the time between drawdowns and disbursements.

37. Recordkeeping Records related to grant funds. EDGAR§ 75.730 A grantee shall keep records that fully show: (a) The amount of funds under the grant; (b) How the grantee uses the funds; (c) The total cost of the project; (d) The share of that cost provided from other sources; and (e) Other records to facilitate an effective audit.

38. Recordkeeping Records related to compliance. EDGAR § 75.731 A grantee shall keep records to show its compliance with program requirements. Records related to performance. EDGAR § 75.732 (a) A grantee shall keep records of significant project experiences and results. (b) The grantee shall use the records under paragraph (a) to: (1) Determine progress in accomplishing project objectives; and (2) Revise those objectives, if necessary.

39. Reporting Grantees must provide financial and performance reports required by ED (§ § 80.40 and 75.720, 75.590). In general, such data will be collected through the Annual Performance Report and Government Performance and Results Act (GPRA) data collection.

40. Questions? Remember, please stay in contact with us and ASK QUESTIONS! We are here to help. Feel free to contact me: rachel.peternith@ed.gov