2014-15 Charter School Planning Grantee Orientation

Michigan Department of EducationOffice of Education Improvement & InnovationPublic School Academies Unit

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Congratulations! 10 of 16 applicants were recommended

for funding in this round

We’re looking forward to working with all of you to develop a “learning community”

You have made it through a very difficult portion of your journey

Multi-million dollar governmental enterprise

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Today’s Topics Fund Release Document Grant Structure Managing a CSP Grant Progress/Final Reporting Requirements Developing an Effective Project Plan Building a Solid Budget Board and Budget Basics Technical Assistance/Partnerships/Sharing Subgrantee Questions

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Grant Structure MDE is Grantee, PSA/Non-Profit Corp. is Subgrantee Planning Subgrant funding stages:

o Stage I: $35,000o Stage II: $65,000

Funding for Implementation will depend on the type of school, enrollment, and availability.

Combo Subgrant funding Year 1:o $50,000 + dollar amount calculated on student

enrollment (Implementation I)o Stage I: Half the award amounto Stage II: Half the award amount

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Requirements to Release Funds To draw down Stage I funds ($35,000 or half the allocation if

Combo grant) Six action items completed (Fund Release Document) Budgets & Management Plans approved MAIN and Grants Cash Mgmt accounts set up

To draw down Stage II funds ($65,000 or ½ funds) Two rubric sections (Education Program and

Assessment/Evaluation) brought up to “4” Monthly Status Reports and the Progress Report for

Stage I completion are submitted/approved Amendments to Budget and Management plan, if

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MAIN/CMS Requirements All recipients must be registered on the statewide

vendor/payee file to receive payments. To register online: http://www.cpexpress.state.mi.us or call toll free at 888/734-9749

To draw down funds you must be registered on the Cash Management System. Please complete and fax the CMS security agreement available at http://www.michigan.gov/documents/Grants_System_Security_Access_Form_130292_7.pdf

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Managing a CSP Grant Basic Fund Accounting (School Accounts) IAW Management Plan and Budget Maintain Internal Controls Discipline IAW Policies & Procedures Fund Drawdowns (REIMBURSEMENT BASIS) Reporting is Organized & Accurate with

Complete Documentation EDGAR Prepare for Annual Audit

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Required Checkpoints Action items from Fund Release Document (ASAP) Budget and Management Plan Approval (ASAP) MAIN and CMS set-up to draw down (ASAP) Monthly Status Reports (Starting Dec 15) Narrative Level 4 (no later than March 2015) Progress Report at Completion of Stage 1 (no later

than March 2015) Final Progress Report (End of Stage II – timeline

depends on subgrantee’s execution) Final Expenditure Report (After MDE reviews Final

Progress Report – timeline depends on subgrantee’s execution)

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Potential Timelines (Start Date: 9/26/2014)

Sept 2014 Nov14 Dec 14 Mar15 May15 Jul15 Aug15 Oct15 Dec15 Feb16 May16 Jul 2016

Planning Imp 1 and 2Charter

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Combo 1 Combo 2

No Cost Extension Period

Application for Continuing Funds CSP Subgrant Award recipients DO NOT COMPETE for

Implementation or Combo 2 Awards; however they must apply by o Completing the MEGS+ Narrative detailing project

tasks/deliverables achieved to date as relates to the education program and proposed new tasks

o Providing a Budget Narrative and line item Detail

o All applications for subsequent awards must be submitted in MEGS+ on or before July 31, 2015

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Application for Continuing Funds Start Dates for Implementation Awards are Determined

by the LATER of: o A substantially complete and approvable

implementation application in MEGS+, or

o Receipt of a Grant Award Notification Letter signed by the State Superintendent (Mr. Mike Flanagan)

As set-aside funds are released from other subgrantees, supplemental awards will be initiated

No additional/supplemental funds can be issued from MDE after July 31, 2015

MDE’s awarding of continuing and/or supplemental funds is contingent upon subgrantee’s timely and accurate reporting 11

Status and Progress Report Reminders

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Status Report Reminders

Status reports are submitted monthly Reports include

Grant Activity (by task) Cumulative Financial Report (by function

code) Inventory Report Leadership Changes

Template is included on the flash drive MDE expects to see timely execution of tasks

and regular draw downs to reimburse expenditures

Progress Report Reminders Progress reports are to be submitted when activities

for the current grant stage have been completed and funds drawn down/expended (e.g., Stage 1)

MDE does not release additional funding or request the next grant award until progress reports are submitted, reviewed and approved

The Stage 1 progress report for this grant should be submitted no later than March 2015

Progress reports use the same template as monthly status reports but include all documentation for each grant related transaction (invoice, timesheet, receipts, etc. AND proof of payment)

Progress Report RemindersCan you prove every transaction was: Connected to a management plan/budget task Board approved, delivered/completed, and payment finalized to the vendor/employee If transaction occurred through a 3rd party (management company), clearly show how the check to the management company was broken down- vendors paid, amounts, check numbers to vendors, etc.

Progress Report Reminders Pay vendors directly when you are able to do so; avoid as

many reimbursements to staff as possible It is ok to charge a portion of expense to the grant, but you

must clearly indicate the breakdown Work with your bank for proofs of payment. Best method is

copies of cancelled checks. You can use grant funds to pay for the copies. If impossible, make sure bank statements have check numbers we can connect to vendors, evidence of clearance, dates, etc.

Clearly connect invoice/timesheet (allowable expense from management plan task) with cancelled check/bank statement, payroll statement, credit card statement (proof of payment) -- best to put payment right after expense in scanned documents

Progress Report Reminders OK to submit purchase orders and bids/quotes,

they sometimes add clarity to what the purchase was, but, they are not invoices

Employee timesheets- dates, hours, rate of pay, management tasks worked on (services provided, materials produced, what did they do that was grant related, etc.). Connect with clear and complete payroll statements. We know many employees are paid electronically so no cancelled checks may be available. Include payroll statements

Progress Report Reminders We need to see major vendor service contracts

signed by the board (typically submitted prior to funds release)

We will require evidence that bid protocols were followed (typically prior to funds release)

You must have board policies and you must follow them

The board is the sub grantee. They need to meet, have a level 5 member, keep minutes, approve payments, discuss and approve vendors, etc. Can you prove that is happening? We do contact board members

Progress Report Reminders

You include an actual progress report with your documents. You can use the monthly report template

Best way to submit is via e-mail attachments

If impossible, a CD with info mailed to us is ok

We will create a spreadsheet based on your documents. It works well. We send you the spreadsheet if we have questions

Spreadsheet Sample

Example of a Progress Report MDE Spreadsheet

NAME OF SUB GRANTEETYPE OF REPORTDATE

VENDOR OR EMPLOYEE INVOICE/TIMESHEET CHECK/PAYROLL AMOUNT TASK # OR NOTES

TOTAL FOR THIS REPORT $GRANT TOTAL $

NEEDED TO MATCH DISBURSEMENTS $

Vendor with Check #

Easy to read credit card payments with receipts

Travel Reimbursements: Travel Reimbursements: Request for payment matches Request for payment matches receiptsreceipts

Summary of trip and reimbursement check

What’s wrong with this check???

Request for mileage Use a form Attached a printout of mapquest,

google maps, yahoo maps, etc. Rates reminder:

• Volunteer rate is the same as the current federal rate

• Team member rate is the same as the current federal rate

Sample Report Documents

OK invoice, but would be better if it had a date and invoice number

No cancelled check was submitted, but listed on the bank statement

Simple bill with a check

Bad Examples

Actual receipts submittedSubmitted

by a Board member

Subgrantee Questions

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BREAK

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Board and Budget Basics Structures for Development Teams & Boards Compensation for Development Team Members (Fee For

Service Contracts - Who, What, When, How Much, What Rate, Who Validates)

Conflicts of Interest (Threshold is “Appearance”) Activities and Authority

Vendors including Management Companies must have “arms length” agreements that are severable

Level 5 MEGS+ and CMS (Board Member or Senior Employee) Budget & Policy Responsibilities

Non-Profit is Fiduciary – Must Manage Money (Can NOT Delegate)

Non-Profit Board Policies – Must Craft & Approve Non-Profit Board Administration & Oversight – Must Be

Involved Contracting –Avoiding Excluded Parties (NEW)

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Negotiate With Your EMO/CMO

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        • Remember, Don’t Pay Twice for the Same Work• Have Something to Show for the $$• Make Sure Your Vendors Deliver (We Will Ask!)• Supplanting Must Be Avoided• Make Sure Board Exercises Legal Responsibilities• Make Sure the Vendors You Hire Are Following the Law

(e.g., Vendor Subcontracts with Board Members)• Make Sure that Vendor Contracts Include Language

that Requires them to Pay Fines the Board is Assessed as a Result of their Work (e.g., Teacher Cert)

• Ensure the grant has been managed properly before paying the grant manager

Planning - Allowable Activities/CostsRefinement of the desired educational results and of the

methods for measuring progress toward achieving those results:

Initial costs directly related to obtaining, developing and implementing a system of standardized testing, and other measurement of student achievement

Some staff salaries/benefits and consultant costs prior to opening of the school and prior to eligibility for state school aid. School staff shouldn’t be hired until a charter is in hand

Implementation of evaluation and feedback to staff regarding achievement of contractual and other educational goals

Technology, equipment, and software required to develop and implement methods for measurement, achievement of progress, and provision of feedback to staff regarding the effectiveness of the educational methods chosen

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Planning - Allowable Activities/CostsRefinement of the desired educational results and of the

methods for measuring progress toward achieving those results:

Legal costs for the subgrantee that directly relate to charter development, planning for the school and its educational program

Fees for the required school safety inspections paid to the State of Michigan or local governmental agencies

Limited office furniture, technology and office equipment (<$5,000 total) required by staff in Planning, to engage in the planning phase of the school start-up

Curriculum analysis, review and refinement with a tangible product

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Planning - Allowable Activities/CostsProfessional development of teachers and other staff

who will work in the charter school: Initial costs directly related to training, professional

development of staff who will work in the charter school

Initial staff salaries prior to opening of the school and eligibility for state school aid, but only in the conduct of other management plan tasks or activities

Stipends paid to staff for time spent in training during the summer, weekends, evenings, or other periods for which the staff would not normally be compensated (post school opening, provided it will be the ongoing policy/practice of the school to pay stipends to staff to participate in development/training)

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Planning - Allowable Activities/CostsProfessional development of teachers and other

staff who will work in the charter school: Initial fees to trainers/consultants external to the

school or its educational management company, to provide training, in-service, and/or staff development

Reasonable costs of travel, lodging, conference fees, to enable staff to participate in training and staff development

Tuition reimbursement to staff for classes/training that is directly related to the school, its educational program or business operations

Costs of providing training and in-service for volunteer members of the school board of directors, including those cited above for school staff

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Planning - Allowable Activities/Costs

Business and Operations related functions necessary to open a charter school:

Initial costs directly related to the procurement and training on a new student information system

Administrative compensation related directly to school startup, excluding recruiting or enrollment activities

Initial costs directly associated with the procurement and refinement of board policies

Costs related to CSP grant management Costs and fees related to the development of PLANS

for the hiring of staff and faculty members40

Planning - Allowable Activities/Costs

Business and Operations related functions necessary to open a charter school:

Costs and fees related to the hiring of consultants for the purposes of advising the Board on facilities, real estate, curriculum & instruction, special education, assessment & evaluation, food service, etc.

Initial costs and fees related to the development of front office technology requirements

Costs and fees related to the development of teacher technology PLANNING requirements as they relate directly to the management of student data, parent & student communications (excluding internet), and professional learning community initiatives 41

Activities NOT Allowed in Planning General Construction or Facility Repair/Remodeling The purchase of facility fixtures such as

permanently mounted playground equipment, security and sound systems.

Classroom Furniture, Supplies & Materials Food (with very few exceptions) Utilities including internet, gas, electric, telephone,

etc. FLAT RATE contracts of ANY kind Lease fees of any kind Facility Maintenance Fees Weapons or Vehicle Purchases Travel outside the continental United States Support to government lobbying efforts, political

campaigns or religious activities 42

Activities NOT Allowed in Planning Enrollment activities and their related costs or fees,

including enrollment incentives of any kind Contracts w/ Board members, relatives or other

individuals or entities whose involvement may have the appearance of a conflict on interest

Extravagant reimbursements of any kind including travel, meals, training, etc. (IAW Board Policy)

Single Purchases exceeding the State’s No Bid threshold (about $23,126 for fiscal year 2014-2015)

Any activity that is not directly related to new school startup and could be interpreted as supplanting

Any product or service that is not budgeted or otherwise described in the management plan

Training and equipping vendors or consultants 43

Implementation - Allowable Activities/Costs

General: Initial startup activities in support of teachers, students, classrooms and parents. (Not administration or back-office operations)

Personnel: Initial costs directly related to personnel training for new

programs or new equipment Staff salaries/benefits and consultant costs prior to

opening of the school and prior to eligibility for state school aid, but only in the conduct of other management plan tasks or activities. School staff shouldn’t be hired until a charter is in hand

Costs associated with the conduct of board training designed to increase the board’s capacity to exercise proper oversight

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Implementation - Allowable Activities/Costs

Supplies: Initial costs directly associated with properly

supplying each and every classroom Costs associated with the procurement of supplies for the

conduct of staff and board member training, provided that training is new and not likely to be recurring annually

Initial costs associated with properly supplying the school with health, safety and security supplies

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Implementation - Allowable Activities/Costs

Equipment: Initial costs directly associated with properly

equipping each and every classroom with durable equipment (e.g., technology)

Costs associated with the procurement of equipment for the conduct of staff and board member training, provided that training is new and not likely to be recurring (e.g., digital projector)

Initial costs associated with properly equipping the school with health, safety and security equipment (Note: Must be Portable)

Initial costs associated with operating a school including the initial procurement of office equipment (e.g., copier)

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NOTE: Audit Requirement If you are already a school, your CSP grant will

be reported and audited as part of your annual audit (Not an allowable expense)

If you are not yet a school we will require you to obtain a third-party financial audit, or set of Basic Financial Statements, during the first planning year (Allowable Expense)

If federal revenues exceed a certain amount ($500,000) in a given year, a special single audit may result (OMB Circular A-133)

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Technical Assistance / Partnerships / Sharing

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Technical Assistance Requirement Your technical assistance provider is supposed to be

building school/board capacity – not to do work Technical assistance relationships are between the

subgrantee and the vendor. MDE is not a party to the contract, but as the grantee we have the responsibility to monitor grant activities

Be an active “customer” with your provider – help design the sessions you need and make sure you get your money’s worth

Identify development team weaknesses and select a support provider to meet that need

There is no requirement to have just one technical assistance provider. You can have as many as you need and there is no limits (minimum or maximum) to how much must be spent

Grant funds are NOT to be used to increase consultant capacity with equipment, training, supplies, or materials 49

Partnerships Agreements should be formalized before any

resources are obligated Format similar to vendor contract with the scope of

work clearly identified Formally endorsed by both Boards Between schools-not between or within management

companies or other vendors unless they are doing it for free

Partners are reimbursed for expenses Partners may be provided access to equipment,

supplies and materials

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WARNING CSP Grants do not belong to management companies Evidence that a subgrantee has abdicated its responsibility

to adequately participate in and administer or oversee this grant will result in funds being frozen and/or withdrawn

Execute the approved management plan and budget Purchasing policies must be focused on the best interest of

the Academy, not any single person or entity Total transparency is required while participating in this

grant Failure to provide requested documents could result in

funds being frozen and/or withdrawn

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Points of Contact Unit Secretary vacant position Kim Sidel, Analyst sidelk@michigan.gov Keesha Fife, Consultant fifek@michigan.gov Karla Browning, Consultant

browningk2@michigan.gov Neil Beckwith, Consultant beckwithn@michigan.gov Ron Schneider, Consultant

schneiderr8@michigan.gov Tammy Hatfield, Manager hatfieldt@michigan.gov Mark Eitrem, Supervisor eitremm@michigan.gov

(517) 373-4631MDEPSAGRANT@MICHIGAN.GOV

http://www.michigan.gov/charters

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