2013-14 Charter School Planning Grantee Orientation

1. 2013-14 Charter School Planning Grantee Orientation Michigan Department of Education Office of Education Improvement & Innovation Public School Academies Unit

2. Congratulations! • 6 of 23 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

3. Today’s Topics • Grant Structure • Fund Release Document • Addressing Plagiarism Issues (if any) • Board and Budget Basics • Managing a CSP Grant • Developing an Effective Project Plan • Building a Solid Budget • Progress/Final Reporting Requirements • Technical Assistance/Partnerships/Sharing • Subgrantee Questions

4. Grant Structure • MDE is Grantee, PSA/Non-Profit Corp. is Subgrantee • Planning Subgrant funding stages: • Stage I: $35,000 • Stage II: $65,000 • Combo Subgrant funding years: • Year I: $50,000 + dollar amount calculated on student enrollment (Implementation I) • Year II: $10,000 + dollar amount based on availability (Implementation II) • Total Grant Period Must Terminate on July 31, 2016. • Funding for Implementation will depend on the type of school, enrollment, and availability.

5. Requirements to Release Funds • To draw down Stage I Planning funds ($35,000) • Budgets & Management Plans approved • Questions Answered (Fund Release Document) • MAIN and Grants Cash Mgmt accounts set up • To draw down Stage II Planning funds ($65,000) • 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 • Amendments to Budget and Management plan, if needed

6. Requirements to Release Funds • To draw down Combo I funds ($50,000+) • Budgets & Management Plans approved • Questions Answered (Fund Release Document) • Charter Contract is Complete and Compliant • MAIN and Grants Cash Management accounts set up • Two rubric sections (Education Program and Assessment/Evaluation) brought up to “4” • To draw down Combo II funds ($10,000+) • Monthly Status Reports and the Progress Report for Combo I completion are submitted • Submit new Narrative, Budget and Management plan for year two

7. 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 form included in your packet.

8. 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)

9. 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

10. Negotiate With Your EMO/CMO • 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). • If Your Grant Manager Does Not Execute the Grant Properly, Make Sure they Don’t Get Paid.

11. Planning - Allowable Activities/Costs Refinement 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.

12. Planning - Allowable Activities/Costs Refinement 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.

13. Planning - Allowable Activities/Costs Professional 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).

14. Planning - Allowable Activities/Costs Professional 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.

15. 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 members.

16. 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.

17. 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

18. 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 $22,386 for fiscal year 2012-2013). • 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

19. BREAK

20. 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.

21. Implementation - Allowable Activities/Costs Supplies: • Initial costs directly associated with properly supplying each and every classroom with expendable supplies. • 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. • Initial costs associated with properly supplying the school with health, safety and security supplies. • Initial costs associated with operating a school including the initial procurement of expendable office supplies. • Initial costs associated with properly supplying the school with expendable maintenance and cleaning supplies.

22. 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., digitial 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). • Initial costs associated with properly equipping the school with expendable maintenance and cleaning machines (e.g., buffers, scrubbers, etc.).

23. Potential Timelines (Start Date: 4/30/2014) Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Aug15 Oct15 Dec15 Feb16 May16 Jul16 Sep16 Charter Planning Implementation 1 Implementation 2 Implementation 1 Implementation 2 Combination Grant Your custom designed timeline: 18 month max for Planning 24 month max for Implementation SEA Grant End Date No Cost Extension Period

24. Required Checkpoints • Narrative Update/Correction • Budget Approval • Management Plan Approval • MDE Questions Answered (Fund Release Document) • MAIN and CMS set-up to draw down • Monthly Status Reports (Starting June 15) • Progress Report at Completion of Stage I/Mid-Year • Annual Financial Audit • Final Progress Report (End of Stage II/End of Year) • Final Expenditure Report (FER)

25. 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).

26. Application for Continuing Funds • CSP Subgrant Award recipients DO NOT COMPETE for Implementation Awards; however they must apply by • Completing the MEGS+ Narrative detailing project tasks and deliverables achieved to date, and proposing detailed tasks and deliverables in the Management Plan • Specifying target dates for each new task, deliverables, as well as strategies for achieving them • Revising Budget Summary and provide Budget Narrative and Detail for the next year

27. Application for Continuing Funds • Start Dates for Implementation Awards are Determined by the LATER of: • A substantially complete and approvable implementation application in MEGS, or • 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.

28. Application for Continuing Funds • Planning grant awardees that Receive charters and make application for Implementation funds will be limited to one year if: • The planning grant awardee has less than 12 months of eligibility remaining (of the 36-month grant window) when they initially applied for implementation, or • The planning grant awardee fails to properly execute and document year one of implementation and therefor forfeits any access to year two, or • Year one of Implementation is not closed out, and year two is not started, before July 31, 2015.

29. Eligibility for Continuing Funds • Eligibility for Implementation Awards, requires completed Monthly Status and End-of-Stage Progress Reports for the grant: • Monthly Status Reports due the 15th of the month for the month past • The Progress Report & Financial Report at Completion of Stage I, and • Final Progress Report & Financial Report within 45 days from the end of the grant period • These reports • Use data to provide a status report on each line in the management plan, • Explain any barriers and/or modifications of tasks/deliverables (that have been discussed in advance with MDE and approved) • Monitor use of funds for completion of tasks and deliverables • Provide opportunities for MDE technical assistance and consultation with subgrantees about the project

30. Technical Assistance/Partnerships/Sharing

31. 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.

32. 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.

33. 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.

34. Points of Contact • Beatrice Barajas Mills, Secretary barajasb1@michigan.gov • 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) 373-4631 MDEPSAGRANT@MICHIGAN.GOV http://www.michigan.gov/charters

35. Subgrantee Questions