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ARRA Update:ARRA Update:FY2010 Education Stabilization &FY2010 Education Stabilization &

Section 1512 Reporting Section 1512 Reporting

RequirementsRequirements

MSBO Finance Services WorkshopMSBO Finance Services Workshop

September 18, 2009September 18, 2009

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Topics to be covered

ARRA Overview for FY2010

Education Stabilization for FY2010

ARRA Reporting Requirements Section 1512 Reporting Program Performance Reporting Final Expenditure Reporting Financial Information Database

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ARRA Comes in Two Large ARRA Comes in Two Large SectionsSections

Direct EducationDirect Education Title I, Part ATitle I, Part A Title I, Part A School ImprovementTitle I, Part A School Improvement Title I, Part DTitle I, Part D Title II, Part D Educational TechnologyTitle II, Part D Educational Technology Title X, Part C HomelessTitle X, Part C Homeless IDEA Special EducationIDEA Special Education School Meal Equipment AssistanceSchool Meal Equipment Assistance Temporary Emergency Food Assistance ProgramTemporary Emergency Food Assistance Program OtherOther

State Fiscal StabilizationState Fiscal Stabilization

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State Fiscal Stabilization Fund

Governors

(1)State Incentive & Grants (Race to the Top)

(2) Investing in Innovation

CompetitiveFormula

Elementary & Secondary Education

Institutes of Higher

Education

Public Safety and Other

State Services

The Secretary$5B

81.8% 18.2%

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Education Stabilization Fund FY2009

$600 million appropriated by Legislature

Districts submitted applications to MDE

District applications approved

Awards made to eligible applicants

Districts request/drawdown funds

Funds used to restore State Aid cut

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Education StabilizationFY2010 Process

State submits application to USED for SFSF Part II

USED awards remaining allocation to State ($429,781,767)

Remaining Part I award: $272,587,225 FY2010 State Budget Negotiations

Determine State Aid for FY2010 Determine available Part I and Part II amount of

ES funds available to restore cuts

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Education Stabilization FY2010 Process

FY2010 State Aid determined SFSF Funds appropriated to offset cuts Partial Allocations from remaining Phase I funds

Determined Full allocation depend on Phase II approval by

Feds Announcement of allocations

Depends on Superintendent approval Partial awards made to all eligible applicants District/IHE request/drawdown funds

Reimbursement basis only

NOTE: No new application required

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Expectations for FY2010Expectations for FY2010

October State Aid payment will be 1/11October State Aid payment will be 1/11thth of of State Aid amountState Aid amount

Available Part I ES funds will be approved Available Part I ES funds will be approved in October (~1/3 of FY2010 allocation)in October (~1/3 of FY2010 allocation)

State Aid payments will not be consistent State Aid payments will not be consistent for FY2010for FY2010

Section 22b funds onlySection 22b funds only ES approvals will be increased when Part II ES approvals will be increased when Part II

award made to State award made to State

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Potentially Eligible Agencies

Local Educational Agencies

Public School Academies

Institutes of Higher Education IHE’s will get ES funds in FY2010

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ES Application Not Required

Applications submitted in June/July 2009 can be amended

Update contacts or statement on district use of funds in FY2010 How funds helped to create or save jobs How district intends to advance essential reform

Re-submission by Authorized Official (level 5)

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Amending the ESF Application

Districts may update the statement of use for FY2010Main contacts can also be updatedNot required

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The ARRA Application

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Things to Think About

It is strongly advised to read the SFSF guidance

Think/plan/act for stabilization and innovation

Four core reform assurances Plan for sustainability beyond September

30, 2011 Detailed accountability, tracking,

transparency & monitoring

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What is different in FY2010?

Federal funds can be drawn on a reimbursement basis only

FY2009 awards made AFTER the school year ended, so reimbursement basis was easy

FY2010 awards will be made starting October: recipients required to ensure they comply with all Federal guidance

Draw funds only for allowable expenditures

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Allowable Use of Funds

Consistent with overall intent and goals of ARRA

Short-term investments…long-term benefits

Any activity authorized under ESEA (including Impact Aid), IDEA, Adult and Family Literacy Act, & Perkins Career and Tech Education Act, or for modernization, renovation or repair

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Prohibited Use of Funds Payment of maintenance costs Stadiums or other facilities used for

athletics/exhibitions where admission is charged

Purchase or upgrades of vehicles Improvement of facilities, e.g., central office

administration, operations or transportation Modernization, renovation or repair

inconsistent with State law Construction of aquariums, zoo operations,

golf courses, swimming pools Restoring a “rainy day” fund

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ARRA Reporting

Section 1512 Reporting

Program Performance Reporting

Final Expenditure Reporting

Financial Information Database

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Accountability and TransparencyAccountability and Transparency

Expect reports to be posted on websites Expect reports to be posted on websites (federal and/or state)(federal and/or state)

Keep separate accounting ledgers for Keep separate accounting ledgers for ARRA fundsARRA funds

Expect to be monitoredExpect to be monitored

Expect quarterly or more frequent Expect quarterly or more frequent reporting with quick turn around timelinesreporting with quick turn around timelines

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Section 1512 Reporting Separate from program specific reporting and

final expenditure reporting Quarterly reporting for each ARRA grant award Extensive guidance from Feds MDE is responsible to submit report 10 days after

each quarter MDE will build majority of report from existing

systems Some required information is not known MDE will use MEGS to ask for quarterly updates

from districts: How many jobs were created or retained Description of type of jobs created/retained Vendor information on any vendors contracted using

ARRA funds Infrastructure expenditures

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Section 1512 Report

Report will be available in MEGS Level 5’s can initiate

District will access single report that will include all ARRA grant awards Report separately on each grant award

All recipients must submit report every quarter Continuation of funding contingent on report submission Districts required to have DUNS number entered in EEM Districts are required to register in the Central Contractor Registry

(CCR) and indicate they have registered in the EEM. First Section 1512 report iteration due October 5, 2009 Report available in MEGS week of September 21

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Program Reporting

Grant Specific Reporting

Guidance will come from Program Offices

Traditionally, this is end of grant reporting

Interim reports may be required

Districts will be contacted when specifics are known

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Final Expenditure ReportingFinal Expenditure Reporting

FER reporting done in CMSFER reporting done in CMS Complete when funds drawn or at end of Complete when funds drawn or at end of

grant period whichever comes firstgrant period whichever comes first Normal MEGS-CMS interactionNormal MEGS-CMS interaction

Latest approved budget pulled inLatest approved budget pulled in ES grants do not have a budgetES grants do not have a budget

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Reporting Final Expenditures

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Financial Information Database Financial Information Database (FID)(FID)

ARRA grants will be included in the annual ARRA grants will be included in the annual FID    Reporting requirements have not been totally Reporting requirements have not been totally

resolved  resolved  Districts may be required to utilize the State Code Districts may be required to utilize the State Code

dimension of the accounting structure when dimension of the accounting structure when reporting to the 2009-10 FIDreporting to the 2009-10 FID

Standard “State Codes” are available in the Standard “State Codes” are available in the Michigan Public School Accounting ManualMichigan Public School Accounting Manual, , Appendix, Pages 49-58 Appendix, Pages 49-58 http://www.michigan.gov/mde/0,1607,7-140-6530_6605-21321--,00.html

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Questions?Questions?

Federal Cash Draw, Accounting, and ReportingFederal Cash Draw, Accounting, and Reporting Craig Thurman 517-373-2810 Craig Thurman 517-373-2810

thurmant@michigan.govthurmant@michigan.gov

Education Stabilization FundsEducation Stabilization FundsLouis Burgess 517-373-1806 Louis Burgess 517-373-1806 mdestabilization@michigan.gov

Section 1512 ReportingSection 1512 ReportingJill BradshawJill Bradshaw 517-373-1806517-373-1806bradshawj@michigan.govbradshawj@michigan.gov