New York State Education Department

NEW YORK STATE

EDUCATION DEPARTMENT

DECEMBER 19, 2013(REVISED DECEMBER 30, 2013)

Part 1: Charter Schools Program (CSP) Orientation

Part 2: Grants Management

Introduction

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

schools New York City Charter School Center: David Frank State Education Department staff:

Susan DuFour: Introduction and Audit Guide Blair Gearhart: CSP Application Submission and Review Valerie Martin Kowalski: NYS vendor, Grants Gateway and

Subcontractor requirements.

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 on each step

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 a charter school.

This grant program also supports dissemination of charter school best practices.

USDOE Non-Regulatory Guidance The CSP grant is awarded through a 3 year contract

with the New York State Education Department. Within these three years there are two phases: Planning Implementation

Certain expenditures are allowable under each phase. The document may be accessed via the following link.

CSP Award Amounts & Eligibility Charter schools issued charters by the Board of Regents or the

State University of New York in December 2013 are eligible Charter schools awarded CMO Replication Grants by the U.S.

Department of Education are ineligible The base amount of each CSP grant is $500,000 and can increase

up to $750,000 based on certain incentives Either, but not both, of the following incentives may also be

awarded: an additional $250,000 at the time of the initial award to any charter applicant

that meets a “program design priority“ as designated by their authorizer an additional $125,000 during the grant period should a grantee meet an

“underserved student populations priority”

What may I use the CSP grant for?

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 Phase1/1/2014 – School Opening (Budget Period 1)

Implementation Phase School Opening – 8/31/15 (Budget Period 2)

9/1/2015 – 8/31/16 (Budget Period 3)

Salaries

Salaries for professional and support staff are a permissible expenditure for CSP funds during the Planning phase Once your school receives per-pupil funding, CSP funds may not be used to fund salaries or any other

item that should be paid for with state or local funding. This is referred to as the ”supplement, not supplant” federal requirement, as outlined in the CSP Nonregulatory Guidance (section D-3, page 15).

Salaries are generally not permissible expenditures during the Implementation phase, unless they fund personnel splitting time between ongoing operational activities and initial implementation activities. Only the portion of time related to initial implementation (i.e. curriculum

development and 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

CSP Funds may be used to contract with vendors to provide certain services necessary to both the planning and implementation of services: Professional Development Board of Trustee training Accounting and Financial Management

Expenditures associated with these services should be reported with specific details on pricing structure Hourly rate with total number of hours, or Flat rate for the services described

Supplies & Materials

CSP 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.

How does my school access CSP funding?

Become a NYS Vendor

1. Obtain a Federal Employer Identification Number from the IRS

2. Obtain a DUNs number from Dun & Bradstreet; register with the federal System for Award Management

3. Complete Payee Information & Substitute W-9 forms (forms available at www.oms.nysed.gov/cafe/forms);

Submit to:Information & Reporting Services New York State Education DepartmentRoom 868 EBAAlbany, New York 12234

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

Register with NYS Grants Gateway

1. Go to www.grantsgateway.ny.gov 2. Complete registration form – submit with

organization chart and Substitute W-93. Account will be assigned – notification via e-

mail

Prequalification via Grants Gateway

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

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 [email protected] (put the school’s name in subject line and refer to a specific question)

Prequalification Organizational Compliance

To present evidence of appropriate legal structure Many questions based on assumption that NFP has

been in operation Answer questions truthfully, e-mail

[email protected] if necessary to add context (put the school’s name in subject line and refer to a specific question)

Prequalification – Integrity and Service Descriptors

Integrity- to ensure legal and ethical behavior Be truthful – a “no” answer does not preclude

prequalification e-mail [email protected] 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

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 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,

CHAR500 and audited financial statements

CSP Grant Application Materials Due December 31, 2013:

2014-15 Grant Cover Page Project Narrative Workplan Two Budgets (FS-10):

One for Planning Phase One for Implementation Phase For known subcontractors included in the budgets complete steps 7a, 7b

and 7c

Contract Procedures

Review/approval of your application by Blair and Valerie. Contract materials are e-mailed; must be signed and returned

as soon as possible (please follow instructions). Three State agencies must review the signed contract before

the contract is approved. Payment occurs only after contract is approved:

Automatic first payment of 20% of first period FS-10 budget; Must request additional payments of up to 70% via form FS-25; Remainder reimbursed after submission of FS-10-F final expenditure

report for the first budget period.

Subcontractors

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

Short List

Become a NYS Vendor FEIN (Step 4a) DUNS # and federal System for Award Management registration (Step

4b) Complete payee information and substitute W-9 form (Step 4c)

Register with NYS Grants Gateway (Step 5) Prequalify through Grants Gateway (Step 6) Apply for Grant (Step 7) Sign and Return Contract (w/ subcontractor information,

Steps 7a-c if not already provided) Grant is awarded

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 Charter School Audit Guide Summary

Best Case Timeline: CSP New Applications – FY2013-14

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

December 17, 2013Regents Approval of Charter

December 19, 2013Webinar 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 via email the CSP application documents to SED (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 – 3/1/2014 Grants finance develops contract and e-mails it to contact person listed on cover page for signature

ASAP School has up to 4 weeks to sign and return contract. Contract cover letter 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 April 15, 2014, 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 Blair Gearhart at [email protected] to confirm that you understand and have put in place grants management policies for your school.

For questions regarding the CSP Application and Eligible Expenditures, contact Blair Gearhart @ [email protected]

For questions regarding Grants Gateway and Prequalification, contact Valerie Martin Kowalski @ [email protected]

Questions?