Charter School Planning Grants

1. Charter School Planning Grants Guidance Regarding Implementation Prepared for PSA Webinar June 8th, 2011

2. INTENDED OUTCOMES • Understand the application process for receiving Implementation funds. • Recognize and determine allowable expenditures in the Implementation phase. • Articulate the reporting expectations for expended funds.

3. CSP Planning and ImplementationGrants • Purposes- To strengthen the pool of candidates applying for charters and to support those (non-profits) applicants who succeed in obtaining a charter contract as they launch the school they planned. • Non competitive- Implementation funds are generally awarded on a non-competitive basis • Ramping up- Provides support for the operations of a new charter school for purposes of equipping and supplying the school, developing needed materials and systems; and acquiring curriculum materials, texts, classroom equipment, and supplies.

4. What funds are available? • Implementation funds shall be awarded for no more than two years and shall equal at least $200,000 for each year. • Can provide funding for up to 24 months. • Year one- $200,000 • Year two- $200,000 • An additional $50,000 is available per year for a high school that gives plan, explore, Act tests/and provides results to MDE. • Funds Are Drawn on a Reimbursement Basis

5. Make sure you know when funds can be encumbered!!

6. Implementation- General • You Have a Charter/District Code • You have completed requirements of stage 2 planning and completed the FER. • Large Amounts of “Stuff” • May Have More Developed Rel. with ESP • Must maintain independent documentation • Arms length and severable agreement • Contract- Should be specific to products and services and can effect allowable expenditures.

7. Implementation- Procurement Statutory Guidelines Chart of Accounts- Function and Object Codes. (Available at MDE website) “schools must have competitive bidding procedures for purchases of supplies, materials, equipment which exceeds a bid threshold.” “..subgrantees will use their own procurement procedures which reflect applicable State and local laws and regulations…” Boards should function free from an appearance of conflict of interest.

8. Implementation- Procurement Expectations • Procurement is considered a core-compliance requirement. • Develop and maintain a written procedure for procurement transactions. (Internal Controls) • Include specific deliverables in all contracts • Written code of conduct for individuals for procurement transactions. • Free from Conflict of Interest or the appearance of a conflict of interest.

9. Implementation- Procurement Expectations (continued) • Ensure that procurement procedures provide for full and open competition • Bidding is necessary for goods over the state minimum. • REMC • Any person who develops specifications, is excluded from competing for contract awards.

10. Implementation Application- The Narrative • Builds Upon the original competitive application. • Update the status of tasks and deliverables • Propose new activities, tasks, and deliverables for implementation. • The narrative provides additional details that are not included in the MP and Budget • Can provide context for allowable Expenses

11. Implementation-Management Plan and Budget • Identify tasks and deliverables that you intend to undertake and fund with grant dollars for the up to 12 month project period. (year one). • This becomes a comprehensive work plan • Each task is identified by a number and function code.(available at MDE website/audits) • i.e.- 111-1 Instructional supplies • 111-2 Textbooks • 331-1 Parent Input, 331-2 Career Fair

12. Function Codes (Row) 111,112,113-leveled curriculum and assessment Work 231 Board, legal, PD 233 Grant .Management 232- Office Equip. Supplies 252- Accounting, Fiscal 284 Student Info. Systems 331 Community Relations Object Code (Column) Salaries 1000 Benefits 2000 Purchases Services 3000 Supplies and Materials 5000 Other Expenses 7000,8000 There are many additional sub-divisions Common Function/Object Codes

13. Implementation Management Plan/Budget (cont.) • A synchronized budget is developed and posted in the MEGS application. • X’s are placed under the completion month-adapted to start date. • Proposals and modifications must be approved by the MDE prior to obligating funds.

14. Process for encumbering Implementation funds 1 7 2 Implementation Funds Requested SPI Eligibility Letter Received 6 3 4 5

15. Principles for Determining Allowable Activities • General Qualifying Questions • Is it a one time expense (generally yes) • Reoccurring (generally no) • Must be reasonable, necessary, and allocable to meet objectives of the grant. • Must be included in the grant management Plan and corresponding budget. 20 U.S.C. 7221c(f)(3); 2 CFR 23

16. Basic Allowable Activities (Cont.) • A. Acquiring necessary equipment and educational material and supplies (not on-going)-How closely is it related to students/teachers and non-supplanting • Technology- (computers, printers, projectors,etc.) Software to support the classroom and educational • Hook-up and installation cost.

17. Basic Allowable Activities (Cont.) • Textbooks and library books • Desks, tables, chairs, shelving, or other equipment to support educational program. • Not central office equipment • Educational supplies and materials • Not general use office/cleaning supplies and equipment.

18. Basic Allowable Activities (Cont.) • B. Acquiring and refining curriculum materials. • Staff training- must be specific to curriculum, instruction, assessment goals in narrative/management plan for purpose of building capacity. • Purchase of products and goods.

19. Basic Allowable Activities (Cont.) • C. Informing the community about the school. • Can include • radio, print and electronic media development costs. • Costs of advertising-Awareness not promotion • Website development and management • Placards/Banners for grand openings, parent partnerships, staff recruitment.

20. Basic Allowable Activities (Cont.) • D. Other INITIAL operational costs that cannot be met from state or local sources. • Generally might include: • Health, code, safety inspections and certifications. • Portable equipment for food service and custodial. • Grant management fees- must be specific to tasks • Engaging and training staff • Development and production of handbooks • Development and production of Board Policies and Guidelines.

21. Basic Allowable Activities (Cont.) • Developing Human Resource Policies/ Protocols • Purchase of evaluation software • Training regarding new software • Fees for consultants specifically related to management plan tasks • Technical assistance for PSA board of directors • Office Implementation Costs- Accounting and student data management systems • Office equipment

22. Basic Allowable Activities (Cont.) • Generally would not include: • Services or goods not included in Management plan and budget. • Tasks that do not directly impact students and teachers • Administration (counselor/social work) specific purchases. • Signage • Security equipment- no alarms, surveillance • No routine operational expenses, no internet, cable, telephone, or utilities. • Carpet, paint, lighting

23. Generally Would Not IncludeCont. • Leases or construction • Student enrollment process • Monthly service fees • Audits • Reoccurring costs/Expendables • Processing Staff- security checks, basic human resources. 20 U.S.C. 7221c(f)(3); 2 CFR 230

24. Reporting Requirements • Mid-Year Progress Report – Checklist • Copies of PO’s to evidence internal controls. • Invoices and cancelled checks for supplies materials and services charged to grant. • Documentation of all days and hours charged by consultant/vendors/employees. • Contracts –Deliverables and timesheets • Must be clear the Board is approving, purchasing and receiving goods and services.

25. Conclusion • Questions • Evaluation • Feedback