Fiscal Issues and Supplement Not Supplant in ESSA: A Guide for School Business Officials

1. Fiscal Issues Relating to: ESSA, Supplement Not Supplant, Uniform Grant Guidance, and Homeless Education New Jersey Association of School Business Officials Anthony Hearn, CPA NJDOE, Office Of Supplemental Educational Programs

2. Fiscal Issues Relating to: Every Student Succeeds Act (ESSA)

3. Supplement Not Supplant SEC. 1118. (20 U.S.C. 6321) FISCAL REQUIREMENTS (3) SPECIAL RULE.—No local educational agency shall be required to— • (A) identify that an individual cost or service supported • under this part is supplemental; or • (B) provide services under this part through a particular • instructional method or in a particular instructional • setting in order to demonstrate such agency’s compliance • with paragraph (1). ******* HUH !!! Clear as Mud *******

4. Supplement Not Supplant Proposed Regulations http://www2.ed.gov/policy/elsec/leg/essa/snsnprm83016.pdf REPEALED UNDER TRUMP ADMINISTRATION Left to interpret the Every Student Succeeds Act

5. Supplement, Not Supplant ESSA requires school districts to prove that funding, rather than specific programs or activities, are supplemental Title I, Part A – From NCLB to ESSA: What changed? Sec. 1118(b)

6. Supplement Not Supplant What Is the Test? • In a school receiving Title I, Part A funds, the State and local contribution to its budget (as a percentage) must be equal or greater to that of the prior yearwhen compared to the percentage of the Title I funds. • The Department is currently working on a supplement not supplant guidance document.

7. Title I, Part A: Uses of FundsExpanded Under ESSA • College and Career Readiness: preparation for awareness of postsecondary education and workforce opportunities (CTE) • Advanced Placement, International Baccalaureate exams (preparation for, test fees) • Dual or concurrent enrollment, or early college high schools

8. Title I, Part A: Uses of FundsExpanded Under ESSA • Counseling • School-based mental health programs • Mentoring services • Strategies to improve students’ skills outside the academic subject areas • Schoolwide tiered model: to prevent and address problem behavior, early intervening services (IDEA coordination)

9. Title I, Part A: Uses of FundsWhat Has Not Changed! Consistent with Uniform Grant Guidance 2 CFR 200.403 Factors affecting allowability of costs “costs must meet the following general criteria in order to be allowable under the Title I federal award: …. Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.”

10. Title I, Part A: Uses of FundsWhat Has Not Changed! Uniform Grant Guidance Critical questions to meet ‘necessary and reasonable’ standard • How is expenditure necessary and reasonable to carry out the intent and purpose of the program? • What need, as identified in the comprehensive needs assessment, does the expenditure address? • How will the expenditure be evaluated to measure a positive impact on student achievement?

11. Allowable Costs: Necessary? • Professional development to address the needs of below grade level readers would improve the district’s basic educational program. This expenditure would be necessary and reasonable for improving the district’s basic educational program, so it would be an allowable expenditure of Title IA funds. • An expenditure of Title IA funds to purchase furniture for the main office would not improve the district’s basic educational program. This expenditure is not necessary and reasonable for improving the district’s basic educational program, so it would not be allowable.

12. Allowable Costs: Reasonable? • A district brings five staff to a professional development conference in Dublin, Ireland on how to teach low performing students. This expenditure would not be deemed reasonable since the same topics could have been addressed in a workshop in the United States. • A district purchases five laptops to give away at a parent involvement function. The laptops are $1,500 each. This would not be deemed reasonable due to the dollar amounts of the giveaways. The use of federal funds must be for educationally-related items that are at a nominal cost.

13. Allowable Costs: Allocable? Consistent with the Uniform Grant Guidance (2 CFR § 200.405) A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.

14. Allowable Costs: Allocable? • A district has seven elementary schools, four of which are allocated Title I funds. The district wants to use Title I funds to hire a reading coach for each of the seven elementary schools. The three nonparticipating schools have not been allocated Title I funds; therefore the salaries of the reading coaches at these schools may not be allocated to Title I. The four schools that are Title I this is allowable. • A school wants to purchase computer software with Title I funds. The school has 60 Title I students, but the software can accommodate up to 100 users at no additional cost. The school wants all students to use the software. The school has been allocated Title I funds; so the school can use Title I funds to purchase the software for the use of all students.

15. Supplement Not Supplant Flexibility? Looking Like Comparability • District Wide or Grade Span Basis • Full Time Equivalent • Single Attendance Area Excluded • Title I-like program excluded

16. Supplement Not Supplant Consequences • Consequences of Not Meeting Supplanting • Reallocation/return of funding • Should happen in rare cases • Exceptions on case-by-case basis

17. Maintenance of Effort Computed by NJDOE Grants Office District-level computations, not school-level

18. Fiscal Issues Relating to: Uniform Grant Guidance (UGG) & Procurement

19. Office of Management and BudgetUniform Guidance (UG), 2 CFR 200 • Easy Link to guidance in readable format • http://grants.complianceexpert.com/agency-guidance-and-regulations?qr=1 • Sweeping changes to put all grant recipients on the same guidance • Purchasing • Responsible Person • Limited Use of Sole Source • Internal Controls • Allowable Costs • Effective Date for New Jersey – Any grant starting July 1, 2015

20. Risk Analysis Feds want a risk analysis approach before grant is given. Factors for higher risk may include: • Change of Program Managers • History of Performance • Audit Reports • Ability to Implement • Late Reports in the Past *** All these went into Monitoring Sections for 2017-2018 ***

21. Procurement Just Remember: “No law or ordinance is mightier than understanding.” Plato

22. ProcurementUniform Guidance 2 CFR 200.415, Required Certifications Accountability Officer (where do I sign) - EWEG “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”

23. Procurement Uniform Guidance 2 CFR§200.320 Procurement by micro-purchases. • Acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,500. To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. • May be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable.

24. Procurement Uniform Guidance 2 CFR 200.320 Procurement by small purchase procedures. • Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold ($150,000). • Price or rate quotations must be obtained from an adequate number of qualified sources.

25. Procurement : Uniform Guidance 2 CFR 200.320

26. Procurement Uniform Guidance 2 CFR§200.320 New Jersey Thresholds only important if more restrictive • 18A:18A-3(a) and (c) Limits for bid and quote not important if Greater than Federal (always the more restrictive applies) • Bid Threshold with QPA - $40,000 • Quote Threshold with QPA - $6,000 • Bid Threshold without a QPA - $29,000 • Quote Threshold without a QPA - $4,350 FEDERAL UNDER $3,500 Aggregate State Limit for Bid is less than Federal of $150,000

27. Procurement Uniform Guidance 2 CFR 200.320(f), SOLE SOURCE (f) Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: • (1) The item is available only from a single source; • (2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; • (3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or • (4) After solicitation of a number of sources, competition is determined inadequate. *** Watch Vendor Names in Grant Application***

28. Allowable Costs Covered in Subpart E: Cost Principles 200.400 of the Uniform Guidance Protect allowable costs Internal policies may need revision to better align with the UG and to protect allowable costs.

29. Allowable CostsUniform Guidance 2 CFR 200.430 WAGES § 200.430 Compensation—Personal services • Must account for Non-Charged Time (Issue was with charging over 100% to multiple grants) • If you use the prescribed model, you should be covered

30. Allowable CostsUniform Guidance 2 CFR 200.439 Equipment Property records must be maintained that include • a description of the property, • a serial number or other identification number, • the source of funding for the property (including the FAIN), • who holds title, • the acquisition date, and cost of the property, • percentage of Federal participation in the project costs for the Federal award under which the property was acquired, • the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.

31. Allowable Costs Equipment (Continued) • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. • A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. • Adequate maintenance procedures must be developed to keep the property in good condition.

32. Allowable CostsUniform Guidance 2 CFR 200.421 Advertising and public relations (§200.421) Advertising is not allowable, except for: • Hiring of personnel for the grant • Procurement of goods and services for the grant • Disposal of scrap (per the grant program) • Program outreach (new) • Social media advertising for personnel (new)

33. Allowable CostsUniform Guidance 2 CFR 200.438 Entertainment § 200.438 Entertainment costs Costs of entertainment, including amusement, diversion, and social activities and any associated costs are unallowable, except where specific costs that might otherwise be considered entertainment have a programmatic purpose and are authorized either in the approved budget for the Federal award or with prior written approval of the Federal awarding agency

34. Allowable CostsUniform Guidance 2 CFR 200.474 § 200.474 Travel costs • (2) The costs are reasonable and consistent with non-Federal entity's established travel policy. • (c)(1) Temporary dependent care costs (as dependent is defined in 26 USC 152) above and beyond regular dependent care that directly results from travel to conferences is allowable provided that: • (i) The costs are a direct result of the individual's travel for the Federal award; • (ii) The costs are consistent with the non-Federal entity's documented travel policy for all entity travel; and • (iii) Are only temporary during the travel period.

35. Comparability ESEA Section 1118 • Any district, charter school or renaissance school must complete the report • Report in EWEG at bottom of screen where NCLB/ESEA/ESSA Application is located • Due the first Friday in December for the current year (Dec 2015 is 2015-2016 Report) • Must pass because it verifies a part of supplanting

36. Available Research & Where to Find It OMB Uniform Guidance http://grants.complianceexpert.com/agency-guidance-and-regulations?qr=1 EDGAR http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html ESEA www.ed.gov/legislation/ESEA02/index.html

37. Fiscal Issues Relating to: Homeless Education

38. Federal Guidance U.S. Department of Education Office of Elementary and Secondary Education (OESE) Federal Register on March 17, 2016 In the notice, the Secretary of Education issues guidelines for states related to requirements under the McKinney-Vento Homeless Assistance Act, as amended by the Every Student Succeeds Act (ESSA). These guidelines address ways in which a state may: • Assist local educational agencies (LEAs) to implement the provisions related to homeless children and youths amended by the ESSA, and • Review and revise policies and procedures that may present barriers to the identification, enrollment, attendance, and success of homeless children and youths in school. 38

39. Today’s Goals Become familiar with the cornerstones of the McKinney-Vento Act: • Eligibility • Immediate Enrollment • School Selection • Transportation • Designated Role of District Liaison

40. The McKinney-Vento Act Subtitle VII-B of the McKinney-Vento Homeless Assistance Act; amended by ESSA Critical components of the McKinney-Vento Act: • School access • School stability • Support for academic success • Child-centered, best interest decision making • Assistance to unaccompanied youth • Coordination with Title I, Part A

41. Who Qualifies For Services? Children or youth who lack a fixed, regular, and adequate nighttime residence, including: • Sharing the housing of others due to loss of housing, economic hardship, or similar reason (“doubling up”) • Living in motels, hotels, trailer parks, camping grounds due to the lack of adequate alternative accommodations • Living in emergency or transitional shelters • Abandoned in hospitals

42. Who Qualifies? (cont.) • Living in a public or private place not designed for humans to live • Living in cars, parks, abandoned buildings, substandard housing, bus or train stations, or a similar setting • Migratory children living in the above circumstances • Unaccompanied youth living in the above circumstances (The aforementioned list of examples describes common homeless situations, but is not exhaustive).

43. Determining Eligibility:Fixed, Regular, and Adequate • Fixed: Stationary, permanent, and not subject to change • Regular: Used on a predictable, routine, or consistent basis (e.g., nightly); consider the relative permanence • Adequate: Sufficient for meeting both the physical and psychological needs typically met in home environments Consider: Can the student go to the SAME PLACE (fixed), EVERY NIGHT (regular) to sleep in a SAFE AND SUFFICIENT SPACE (adequate)?

44. Determining Eligibility: “Doubled-up” McKinney-Vento defines “doubled-up” as “sharing the housing of others due to loss of housing, economic hardship, or similar reason” • Considerations: • Why did the family move in together? Due to a crisis or by mutual choice as a plan for mutual benefit? • How permanent is the living arrangement intended to be? • Where would the family live if not doubling up? • Is the living arrangement fixed, regular, and adequate?

45. Determining Eligibility: The Process Step 1: Get the facts • Sample enrollment questionnaires can be found at www.serve.org/nche/forum/eligibility.php Step 2: Analyze the facts • Does the living situation fit into one of the specific examples of homelessness listed in the law? • Is the living arrangement another type of situation that is not fixed, regular, and adequate? • What do the facts tell me?

46. Determining Eligibility: The Process (cont.) Step 3: Get Additional Input Contact your regional McKinney-Vento Project Director Table listed in Resources at end of PowerPoint) • Contact your respective County Office of Education • Contact your State Coordinator: Danielle Anderson Thomas at 609-984-4974 or danielle.anderson-thomas@doe.state.nj.usor homeless@doe.state.nj.us

47. Enrollment • States and districts must develop, review, and revise policies to remove barriers to the school enrollment and retention of homeless children and youth • McKinney-Vento defines enrollment as attending classes and participating fully in school activities • The McKinney-Vento Act supersedes state or local law or practice when there is a conflict [U.S. Constitution, Article VI]

48. Enrollment (cont.) • Homeless children and youth have the right to enroll in school immediately, even if lacking documentation normally required for enrollment • If a student does not have immunizations, or immunization or medical records, the local liaison must assist immediately in obtaining them, and the student must be enrolled in the interim

49. School Selection Students experiencing homelessness have the option of attending three schools: • School of Origin (Presumed best Option) • The school attended when permanently housed; or • The school in which the student was last enrolled • Local Attendance Area School (District of Temporary Residence) • Any public school that students living in the same attendance area are eligible to attend • School of Last Attendance (if applicable)

50. School Selection (cont.) • For school selection, a “best interest” determination must occur; ideally, the parents/guardians and school dialogue and come to an agreement; if there is a disagreement, the dispute resolution process is used • Best interest: keep homeless students in their schools of origin, to the extent feasible, unless this is against the parent’s or guardian’s wishes