State Oversight Responsibility for Use of IDEA Funds for Children 3-5

1. State Oversight Responsibility for Use of IDEA Funds for Children 3-5 Cindy Brown, Delaware 619 Coordinator Vivian James, North Carolina 619 Coordinator Charles Kniseley and Dan Schreier, Office of Special Education Programs

2. Learning Objectives Participants will… • Review the underlying authorities that establish fiscal requirements for IDEA programs.    • Discuss key cross-cutting Federal fiscal requirements that apply to 619 programs. • Discuss key IDEA fiscal requirements and how they apply to 619 programs.

3. Framework Connections • Quality Indicator GV2: Legal foundations (e.g. statutes, regulations, interagency agreements and/or policies) provide the authority and direction to effectively implement the Part C and 619 statewide systems. • Quality Indicator GV3: Administrative structures such as state and regional and/or local system entities are designed to carry out IDEA and related federal and state mandates to ensure statewide implementation of the system including provision of services. • Quality Indicator FN9: State and regional and/or local system entities disperse funds and make timely payments or reimbursement for allowable expenses. • Quality Indicator FN10: State and regional and/or local system entities regularly monitor finances and resources to ensure that spending is in compliance with contract performance and all federal, state, and local fiscal requirements.

4. Purpose of IDEA Ensure that all children with disabilities have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepare them for further education, employment, and independent living Ensure that the rights of children with disabilities and parents of such children are protected Assist States, localities, educational service agencies, and Federal agencies to provide for the education of all children with disabilities Assist States in the implementation of a statewide, comprehensive, coordinated, multidisciplinary, interagency system of early intervention services for infants and toddlers with disabilities and their families Ensure that educators and parents have the necessary tools to improve educational results for children with disabilities by supporting system improvement activities; coordinated research and personnel preparation; coordinated technical assistance, dissemination, and support; and technology development and media services Assess, and ensure the effectiveness of, efforts to educate children with disabilities IDEA Section 601(d)

5. Sources of Fiscal Requirements for 619 Programs • Federal • Government-wide • OMB Uniform Guidance (2 CFR § 200) • IDEA Part B and its implementing regulations (34 CFR § 300) • GEPA/EDGAR • Departmental Guidance • State • Statute • Regulation • Policy/guidance

6. Key Fiscal Requirements: Uniform Guidance • Obligation/liquidation • Post award requirements • Use of funds/Cost principles • Prior approvals • Audits

7. Obligation/Liquidation • Obligation, 27 months: July 1, 2017 through September 30, 2019 (FFY 2017) • Obligations—Orders placed for property and services, contracts and subawards made, and similar transactions during a given period that will require payment by the non-Federal entity during the same or a future period (2 CFR §200.71) • When obligations made (34 § CFR 76.707 • Liquidation, 30 months: July 1, 2017 through December 31, 2019 • Forward Funding (34 CFR §76.703) • Period of Performance (2 CFR §§200.77 and 200.309) • Tydings and Unexpended Carryover (421(b) of the General Education Provisions Act (20 USC §1225(b)) and 34 CFR §76.709) • Liquidation period (2 CFR §§200.77 and 200.309)

8. Post-Award Requirements Key provisions include: • Financial Management Systems • Internal Controls • Monitoring and Reporting Program Performance • Record Retention and Access • Procurement • Closeout

9. Use of Funds • Governed generally by Subpart E (Cost Principles) of the Uniform Guidance (see 2 CFR §§200.400-200.475) • Factors affecting the allowability of funds include: • Necessary • Reasonable • Allocable • Selected Items of Cost (55) • Interplay with IDEA requirements

10. Obligation/Liquidation Timeline

11. Common Prior Approvals The following are allowable only with prior approval of OSEP or the SEA: • Equipment • Construction or alteration of facilities • Participant Support Costs IDEA section 605 2 CFR §200.407

12. Audits • Single audit requirements • OMB Compliance Supplement • Cross-cutting areas • IDEA 611 and 619 specific area • SEA/LEA responsibilities • Department of Education responsibilities 2 CFR §200.501

13. Key IDEA Fiscal Requirements 1. Allocations (ED to SEA / SEA to LEA) 2. Use of State level funds 3. LEA use of funds: • Proportionate Share • CEIS/CCEIS 4. Maintenance of Effort 5. Flexibility 6. Monitoring

14. Allocations • Allocations to SEAs and LEAs are set by IDEA statute • Potential decreases in 619 allocations to States (34 CFR §300.810) • Common challenges with LEA allocations • Preschool versus 3-5 • Base payment adjustments • Population and poverty calculation

15. Use of State Set-Aside • State administration set aside for the purpose of administering section 619 of the Act (including the coordination of activities under Part B of the Act with, and providing technical assistance to, other programs that provide services to children with disabilities) • May use 611 State administration funds • For support services (including establishing and implementing the mediation process required by section 615(e) of the Act), which may benefit children with disabilities younger than three or older than five as long as those services also benefit children with disabilities aged three through five; • For direct services for children eligible for services under section 619 of the Act

16. Use of State Set-Aside, continued For activities at the State and local levels to meet the performance goals established by the State To supplement other funds used to develop and implement a statewide coordinated services system designed to improve results for children and families, including children with disabilities and their families To provide early intervention services in accordance with Part C of the Act to children with disabilities who are eligible for services under section 619 of the Act and who previously received services under Part C of the Act until such children enter, or are eligible under State law to enter, kindergarten

17. LEA Use of Funds: 619 funds must be included in • Proportionate share calculations • CCEIS calculations 619 funds may be included in • CEIS calculations

18. Part B LEA Maintenance of Effort • Standard …the SEA must determine that an LEA complies with paragraph (a) of this section for purposes of establishing the LEA’s eligibility for an award for a fiscal year if the LEA budgets, for the education of children with disabilities, at least the same total or per capita amount from either of the following sources as the LEA spent for that purpose from the same source for the most recent prior year for which information is available: • (i) Local funds only • (ii) The combination of State and local funds • Exceptions to maintenance of effort • Adjustments in certain fiscal years 34 CFR §300.203-.205

19. Potential Flexibilities • Schoolwide programs • Permissive use of funds (34 CFR 300.208) • State-level activity funds (611 and 619) • Part C Option • Braiding funds

20. Monitoring Requirements IDEA Requirements: • State Monitoring and Enforcement (34 CFR §300.600) • SEA Responsibility for General Supervision (34 CFR §300.149) Government-wide Requirements: • Monitoring and Reporting Program Performance (2 CFR §200.328) • Requirements for Pass-Through Entities (2 CFR §200.331) • Internal Controls and Risk Assessment

21. Questions

22. Resources • Uniform Guidance:  https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl • IDEA Statute and Regulations: https://sites.ed.gov/idea/statuteregulations/ • EDGAR regulations: https://www2.ed.gov/policy/fund/reg/edgarReg/edgar.html • GRADS360 (https://osep.grads360.org/#program/fiscal) • OSEP Fiscal Accountability Facilitators • Team A: Jennifer Finch (Jennifer.Finch@ed.gov) • Team B: Daniel Schreier (Daniel.Schreier@ed.gov) • Team C: Vacant • Team D: Susan Murray (Susan.Murray@ed.gov)

23. Delaware – Use of Set Aside Funds Cindy Brown, 619 Coordinator

24. DE Funding Use Examples of Past Awards Focus on Improving Indicator 7, Early Childhood Outcomes for the Annual Performance Report 1. Professional development for teachers to implement a curriculum 2. Purchase of evidenced-based curriculum on social emotional learning, knowledge or using appropriate behaviors 3. Cover expenses for substitutes to provide professional development

25. NC – Use of Set Aside Funds Vivian James, 619 Coordinator

26. NC IDEA 619 Set Aside Priority Planning • Value #1- “All preschool children with disabilities will be identified and receive early intervention” • Value #2 – We believe that preschool children with special needs should be included in community programs • Value #3 – We believe that children with special needs should demonstrate positive child outcomes • Value #4- We believe that family involvement and satisfaction impact child outcomes • Value #5- We believe that a highly trained workforce will have positive impact on child and family outcomes

27. Discussion Questions 1. How many 619 coordinators decide, or have input into how 619 set aside funds are used? 2. How are states using their 619 set aside funds? Set Aside Funds

28. North Carolina619 Grant Process Vivian James, 619 Coordinator

29. NC IDEA 619 Grant : Online training program athttps://modules.fpg.unc.edu/nceln/619introtrainingpresentation/619introtrainingpresentation.html Chapter 1 - Funding for Preschool Exceptional Children Chapter 2 - Data You Will Need to Collect to Complete the 619 Grant Chapter 3 - Eligibility and Use of Funds Chapter 4 - The Grant Submission Process

30. Delaware – 619 Grant Proposal Cindy Brown, 619 Coordinator

31. Delaware Grant Process

32. IDEA Part B 619 State Pass through Funds DE – IDEA Scoring Sheet • Total Possible Points - 100 • Subgrant Application, Total 5 • Description of Project, Total 35 • Goals and Objectives, Total 30 • Specific Activities, Total 30

33. Discussion Questions • How many 619 coordinators monitor or participate in monitoring of 619 funds? • What does monitoring of 619 funds look like in your state? Oversight and Monitoring of 619 Funds

34. OSEP Disclaimer 2019 OSEP Leadership Conference DISCLAIMER: The contents of this presentation were developed by the presenters for the 2019 OSEP Leadership Conference. However, these contents do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government. (Authority: 20 U.S.C. 1221e-3 and 3474)