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Fiscal Issues Impacting Perkins and the Adult Education Program (AEFLA). Presented by: Michael Brustein, Esq. Erin Auerbach, Esq. mbrustein@bruman.com eauerbach@bruman.com Brustein & Manasevit, PLLC Spring Forum 2011. Overview. Funding Implementation Issues Common Questions. Funding.

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fiscal issues impacting perkins and the adult education program aefla

Fiscal Issues Impacting Perkins and the Adult Education Program (AEFLA)

Presented by:

Michael Brustein, Esq. Erin Auerbach, Esq.

mbrustein@bruman.comeauerbach@bruman.com

Brustein & Manasevit, PLLCSpring Forum 2011

overview
Overview
  • Funding
  • Implementation Issues
  • Common Questions
why is perkins being cut
Why Is Perkins Being Cut?
  • Obama’s Budget last year eliminated Tech Prep
  • Obama and House propose to eliminate Tech Prep in 2012
why is perkins being cut1
Why Is Perkins Being Cut?
  • “CTE programs are not living up to their purpose of preparing students for college and careers.” – ED Official
  • Programs must lead to high wage outcomes, industry recognized professional credentials, and students who can transition to postsecondary education without remedial classes. – Brenda Dann-Messier
common themes
Common Themes

“Silo Smashing”

“Consolidation”

“Move towards competitive grants, away from formula”

career and technical student organization ctso
Career and Technical Student Organization (CTSO)
  • OVAE: Perkins funds may not be used to support the lodging, feeding, conveying, or furnishing transportation to conventions or other forms of social assemblage for CTSOs.
    • Perkins IV, Non-Regulatory Guidance Q&A – Version 3.0, Question D.26 (June 2, 2009)
    • http://cte.ed.gov/docs/nonregulatory/PerkinsIVNon-RegulatoryGuidanceQAVersion3.0.pdf
  • Perkins funds may be used for lodging, feeding, conveying, or furnishing transportation if the costs are
    • (1) related to a CTSO that is an integral part of the curriculum, and
    • (2) part of a larger program to serve special populations or nontraditional students
improvement plans
Improvement Plans

Perkins Section 123(b)(2)

“the eligible recipient shall develop and implement

a program improvement plan . . . during the first

program year succeeding the program year for

which the eligible recipient failed to so meet any of

the local adjusted levels of performance for any of

the core indicators of performance.”

improvement plans1
Improvement Plans
  • According to the language of the statute – recipients that failed to meet performance indicators as reported in the 2010 CAR would have developed and began implementing an improvement plan on July 1, 2010.
  • Not possible in the real world
  • What should States do to be in compliance?
improvement plans2
Improvement Plans
  • To date, no sanctions have been imposed on States who are not enforcing the exact language of the law.
improvement plans3
Improvement Plans

During 12 months following the 90% deficiency,

create a paper trail that:

  • Informs recipient of the need for an improvement plan
  • Requests that the recipient will send to the State an assurance that it will take steps to address the deficiency during that 12 month period
supplanting
Supplanting
  • Can Perkins or AEFLA funds be used to lawfully supplant State and local funds?
administrative costs
Administrative Costs
  • How do administrative costs compare to indirect costs?
administrative costs1
Administrative Costs
  • Subgrantees – must track administrative expenditures separately from programmatic expenditures.
  • Administrative activities for both Perkins and AEFLA is a “cost objective.”
cost objective
Cost Objective

“function, organizational subdivision, contract,

grant, or other activity for which cost data are

needed and for which costs are incurred.”

OMB Circular A-87, Attachment A, B(11)

period of availability
Period of Availability
  • Perkins:
    • State
      • Subject to Tydings
      • July 1 through September 30 of the following grant year (27 months)
    • Locals
      • Academic year
  • AEFLA
    • State and Locals
      • Subject to Tydings
      • July 1 through September 30 of the following grant year (27 months)
period of availability1
Period of Availability
  • Can the State limit the period of availability for subrecipients?
  • 2009 Arkansas ESEA Monitoring Report
    • States do not have the authority to shorten period of availability/carryover period for subgrantees, if the Tydings Amendment applies to that program.
slide25

Remedial Courses = not allowable

  • Remedial Services =allowable
  • Perkins IV, Non-Regulatory Guidance Q&A – Version 3.0, Funding for Remedial Education begins at Question D.18 (June 2, 2009)
  • http://cte.ed.gov/docs/nonregulatory/PerkinsIVNon-RegulatoryGuidanceQAVersion3.0.pdf
slide27

ONLY ELIGIBLE STUDENTS MAY BE SERVED UNDER AEFLA!

    • AEFLA Section 203(1)
      • At least 16 years oldAND
      • Not enrolled or required to be enrolled in secondary school AND
      • Lack mastery of basic educational skills AND
      • Do not have a secondary school diploma or equivalent AND
      • Are unable to speak, read, or write English
frequently asked questions
Frequently Asked Questions
  • May funds be used to pay for meals?
  • And what about the use of funds for awards?
  • Can funds be used to pay for bus transportation for students?
  • If equipment is purchased, may Perkins funds be used for service warranties?
  • Can funds be used to purchase iPods for students? For teachers as part of professional development?
  • May funds pay for membership fees in professional organizations?
  • Can funds be used for bags or t-shirts to give away to attendees of a professional development event?
frequently asked questions1
Frequently Asked Questions
  • May funds be spent on pens and pads of paper to be used at a professional development event?
  • May funds be used to pay for tuition costs for faculty to earn a degree?
  • May funds be used for tuition costs for students?
  • Can funds be used for stipends to non-faculty staff for time working outside of their contractual hours?
  • Can funds be used for the cost of attendance at a professional development activity?
  • Can funds be used for travel expenses to a professional development activity?
questions often asked
Questions often asked?
  • May funds be used to pay for equipment repaire cost?
  • Can funds be used to pay for campus security guards?
  • Can funds be used to upgrade electrical capacity?
  • May funds be used for radio advertisements?
  • May funds be used for financial aid training for college employees?
  • May leadership funds be used for course development?
questions often asked1
Questions often asked?
  • Can funds be used for gift cards for students?
  • If a technical college uses Perkins funds to pay a portion of a high school teacher’s salary should that employee complete a time and effort form?
  • Can funds be used for teacher retirement benefits?
  • May administration funds be used to purchase file cabinets?
  • Can funds be used for a photographer at a professional development event?
slide35

Development of a policy and

procedure manual?

  • OMB Circular A-133 Audit Compliance
  • OVAE Monitoring
  • Consistency
  • Provider input!
slide36
This presentation is intended solely to provide general information and does not constitute legal advice or a legal service.  This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct.  Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney-client relationship with Brustein & Manasevit, PLLC.  You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.