New York State Education Department

1. New York State Education Department December 18, 2015 Part 1: Charter Schools Program (CSP) Orientation Part 2: Recorded Fiscal Webinars

2. Introduction • Today’s participants: • Individuals from new charter schools • Consultants working with or on behalf of new charter schools • Part 1: CSP Orientation • Lori Genito : CSP application submission and review • Valerie Kowalski: NYS vendor, Grants Gateway and subcontractor requirements • Part 2: Fiscal Webinars: • Fiscal Oversight (12/2/15): Not yet posted • The New EDGAR (4/15/15): The New EDGAR power point ,webinar recording • Developing Policies and Procedures: PowerPoint presentation • Allowability and Grants Management Presentation

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

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. 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.

7. 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. The USDOE Non-Regulatory Guidance document provides this information.

8. 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 should a grantee meet an “underserved student populations priority” during their first year of operation

9. How may I use CSP grant funds?

10. Planning vs. Implementation Planning Phase Implementation Phase • 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

11. 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.

12. 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

13. 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 • Curriculum Materials • 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. Flexibility • Each grantee determines the amount and timing of CSP funds used within the multi-year grant period, • However a grantee: • cannot exceed the amount of the contract • must encumber funds within the contract period

18. How does my school access CSP funding?

19. Become a NYS Vendor • Obtain a Federal Employer Identification Number from the IRS (3a) • Obtain a DUNs number from Dun & Bradstreet (3b) • Go to www.grantsgateway.ny.gov • Complete registration form – submit with organization chart and Substitute W-9 • NYS vendor ID will be assigned – notification via e-mail • Grants Gateway account will be assigned – notification via e-mail • Become prequalified in the Grants Gateway • Obtain proof of workers’ compensation and disability insurance coverage or exemption (http://www.wcb.ny.gov/ )

20. Prequalification via Grants Gateway (5) • 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

21. Prequalification – Organizational Capacity (5a) • 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@nysed.gov • (put the school’s name in subject line and refer to a specific question)

22. Prequalification Organizational Compliance (5b) • To present evidence of appropriate legal structure • Many questions based on assumption that NFP has been in operation • Answer questions truthfully, e-mail prequal@nysed.gov if necessary to add context (put the school’s name in subject line and refer to a specific question)

23. Prequalification – Integrity (5c) and Service Descriptors (5d) • Integrity - to ensure legal and ethical behavior • Be truthful – a “no” answer does not preclude prequalification • e-mail prequal@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

24. Prequalification – Document Upload (5e) • 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

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 and audited financial statements

26. CSP Grant Application Materials (6) • Due December 31, 2015: • 2016-18 Grant Cover Page • Project Narrative • Workplan • Two Budgets (FS-10s): • One for 1/1/16- 6/30/16 • One that combines 7/1/16 – 6/30/17 and 7/1/17 – 6/30/18 grant periods • For known subcontractors included in the budgets, complete steps 6a - 6c • Payee information form (www.oms.nysed.gov/cafe/forms)

27. Subcontractors (6a) • 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.

28. 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

29. Short List • Become a NYS Vendor • FEIN (Step 3a) • DUNS # (Step 3b) • WC/DB documentation • Register with NYS Grants Gateway (Step 4) • Prequalify through Grants Gateway (Step 5) • Apply for Grant (Step 6) • Sign and Return Contract (w/ WC/DB documentation) • Grant is awarded

30. 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

31. Continuation of the Grant • YEAR 1 (1/1/16- 6/30/16) • FS-10-F to close first grant period due 9/30/16 • YEAR 2 (7/1/16-6/30/17) • FS-10 beginning 7/1/16 – 6/30/17 due 5/30/16 • FS-10-F to close second grant period due 9/30/17 • YEAR 3 (7/1/17-6/30/18) • FS-10 beginning 7/1/17-6/30/18 due 5/30/17 • FS-10-F to close third grant period due 9/30/18 • Additional non-fiscal documents will also be required for all year.

32. Best Case Timeline: CSP New Applications – 2016-18 TimeframeDescription (reference to ‘Checklist Step’, if applicable) Fall 2015 Authorizer approves charter December 10, 2015 Webinar for new CSP applicants ASAP Become a NYS vendor (step 3 a-c) ASAP Register with NYS Grants Gateway (step 4) and become prequalified through Grants Gateway (step 6 a-e) December 20 – 31 Submit CSP application documents (step 6) Through Jan 31, 2016 SED Charter School Office staff review documents, solicits information and follow up requests from schools for additional information Jan. 2016 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 2015-16 budget period issued* *Note: In the best case scenario the earliest possible transfer of the initial cash payment is early spring 2016, contingent upon timely completion of checklist steps 3-7.

33. Are there other requirements of my school?

34. 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

35. Part 2: Grants Management Links to fiscal webinars are provided on slide 2. New Federal Uniform Grant Guidance grant requirements went into effect 7/1/15 and should be incorporated into your policy and procedure manual. After viewing fiscal webinars please send an email to Susan DuFour at csp@nysed.gov to confirm that you understand and have put in place grants management policies and procedures for your school.

36. Questions? • CSP application and allowable expenditures – Lori Genito (lori.genito@nysed.gov) • Becoming a NYS vendor, Grants Gateway and prequalification – Valerie Martin Kowalski (valerie.martinkowalski@nysed.gov)