New York State Education Department

1. New York State Education Department Summer 2014 Charter School Program (CSP) Orientation for Newly Authorized Charter Schools

2. 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

3. 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?

4. What is the CSP Grant?

5. 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.

6. 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 Nonregulatory Guidance on the Charter Schools Program may be accessed via the following link.

7. CSP Award Amounts & Eligibility • Charter schools issued charters by the Board of Regents or the State University of New York 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”

8. What may I use the CSP grant for?

9. Planning vs. Implementation Planning Phase (Budget Period 1: 7/1/14 – 6/30/15) Implementation Phase (Budget Period 2 & 3: 7/1/15 – 6/30/17) • 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

10. Salaries • Salaries for professional and support staff are a permissible expenditure for CSP funds during the Planning phase • Once your school begins to per-pupil funding from school districts (July 1 of first year of operation), 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.

11. 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

12. 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.

13. 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

14. 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.

15. 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.

16. How does my school access CSP funding?

17. Become a NYS Vendor • Obtain a Federal Employer Identification Number from the IRS • Obtain a DUNs number from Dun & Bradstreet; register with the federal System for Award Management • 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 • NYS vendor ID will be assigned – notification via e-mail

18. Register with NYS Grants Gateway • Go to www.grantsgateway.ny.gov • Complete registration form – submit with organization chart and Substitute W-9 • Account will be assigned – notification via e-mail

19. 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

20. 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 prequal@mail.nysed.gov(put the school’s name in subject line and refer to a specific question)

21. 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 prequal@mail.nysed.gov if necessary to add context (put the school’s name in subject line and refer to a specific question)

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

23. Prequalification – Document Upload • Certification of Incorporation or equivalent • IRS 501(c) letter of NFP determination (if pending, upload IRS form requesting NFP status or 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 (charter schools are exempt; upload brief note of explanation) • Board of Trustees Profile • Senior Leadership Resumes • Corporate Bylaws

24. 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

25. CSP Grant Application Materials • Due July 15, 2014: • 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

26. 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.

27. 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

28. 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

29. Are there other requirements of my school?

30. 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

31. Timing / Distribution of CSP Funding • Distribution of funding is dependent on how quickly and accurately schools can return application materials and have a budget approved. • Prequalification through the Grants Gateway is also dependent on how quickly new schools can meet the necessary requirements. • CSP staff will make every effort to respond to applications in a timely manner. However, the onus to receive funding is upon schools applying.

32. New Federal Requirements: The Omni Circular • As part of an effort to reform and strengthen Federal grant making, the Office of Management and Budget (OMB) published new guidance for the Federal award programs, OMB Uniform Guidance: Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly referred to as the Omni Circular. • The new guidance is a key component of a larger Federal effort to more effectively focus Federal grant resources on improving performance and outcomes while ensuring the financial integrity of taxpayer dollars.

33. Omni Circular Timeline • Upcoming schedule for sharing federal grant changes under the Omni Circular: • Please join us for a webinar on Omni requirements to be held on September 16, 2014, featuring national expert Tiffany Winters • Omni best practices will be disseminated to all schools via the New York City Charter Center website • A second Omni webinar will be held in May 2015 to ensure changes are implemented by July 1, 2015 and to encourage adoption of Omni best practices

34. Omni Circular Implementation • Charter School Omni implementation includes these areas: • Time and effort certification • Rules on procurement – micro purchases • Written controls on cash management and allowability • New rules on travel, meals, and conferences • New controls on computers • Conflict / Fraud / Gratuity rules

35. 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 Additional guidance may be found on pg. 52 of the NYSED Fiscal Oversight Guidebook After viewing please contact Blair Gearhart at kgearhar@mail.nysed.gov to confirm that you understand and have put in place grants management policies for your school.

36. Questions? • For questions regarding the CSP Application and Eligible Expenditures, contact Blair Gearhart @ kgearhar@mail.nysed.gov • For questions regarding Grants Gateway and Prequalification, contact Valerie Martin Kowalski @ vmartin@mail.nysed.gov