Transcript Document

The American Recovery and
Reinvestment Act (ARRA) of
2009
Title I Part A and IDEA
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1
South Dakota
Department of Education
Grants Management
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Guiding Principles
Spend Quickly to Save and
Create Jobs
Ensure Transparency and
Accountability
Thoughtfully Invest One-time
Funds
Advance Effective Reforms
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Balance Speed and
Effectiveness
Balance speed and stimulus with careful
planning and effective reforms
 LEAs should use funds expeditiously but
sensibly

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Short-term Investments that Produce
Lasting Results
Maximize short-term investments with
lasting results.
 Minimize unsustainable ongoing
commitments
 Avoid the funding Cliff

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Accountability and
Transparency

All ARRA funds must be tracked separately




Quarterly reports on both financial information and
how funds are being used
Beginning July 1, 2009
Estimated number of jobs created or saved
US ED will issue specific guidance for
preparing and submitting this recordkeeping
and reporting information governing ARRA
funds
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Reporting ARRA Fund Use

The ARRA contains very stringent
reporting requirements and requires
that detailed information on the uses of
funds by available publicly
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Reporting ARRA Fund Use

Separately from regular program


New CFDA Numbers for each program
Maintain accurate documentation of all
ARRA expenditures and ensure



Accurate
Complete
Reliable
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Fund distribution


Reimbursement basis as expenditures
are reported to the State
Plan to use eGrant reimbursement
system for both Title I and IDEA ARRA
funds
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Potential Uses of ARRA Funds

Will the proposed use of ARRA
funds:




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Drive results for students?
Increase capacity?
Accelerate reform?
Avoid the “cliff” and improve
productivity?
Track results?
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Availability of ARRA Funds


Title I, Part A: in absence of a
waiver, 85% until Sept 30, 2010;
any remaining by Sept 30, 2011
IDEA, Part B: by September 30,
2011
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Funding Periods & Dates

ARRA Allocations are considered part of
the SY 2009-10 Allocation



But, costs are allowable beginning
February 17, 2009
Regular Grant Period July 1, 2009 to
September 30, 2010
Carryover Period October 1, 2010 to
September 30, 2011
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Title I Part A Amounts

Regular Allocation
ARRA Allocation
$43,747,031
$34,650,000

Total SY 09-10
$78,397,031

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IDEA Part B 611

Regular Allocation
ARRA Allocation
$32,664,950
$31,630,863

Total SY 09-10
$64,295,813

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IDEA Part B 619 Preschool

Regular Allocation
ARRA Allocation
$1,442,067
$1,520,277

Total SY 09-10
$2,962,344

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Accepting Federal Grants
Funds


The LEA accepts the legal responsibility
for fulfilling all the program
requirements.
The LEA is accountable for all federal
program funds.
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Program requirements of
ARRA funds


All provisions that currently apply to
IDEA funds apply to the IDEA ARRA
funds.
All applicable requirements that
currently apply to the use of Title I, Part
A apply to the Title I ARRA funds
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Fiscal Requirements

Supplement, Not Supplant

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Comparability

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Title I
Title I
Maintenance of Effort Requirements –
Different Methods for Each Program


Title I
IDEA
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Supplement Not Supplant –
Title I


Cannot use federal funds to pay for
services, staff, programs, or materials
that would otherwise be paid with state
or local funds
Designed to ensure federal funds pay
for something “extra”
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Supplanting Presumptions

Presume supplanting in 3 situations:
1. Used federal funds to provide services the
district is required to make available
under other federal, state or local laws
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Presumptions (cont.)
2. Used federal funds to provide services the
district provided with state or local funds
in the prior year
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Presumptions (cont.)
3. Used Title I, Part A funds to provide the
same services to Title I students that the
LEA or SEA provides with state or local
funds to nonparticipating students
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Rebutting the Presumption

Presumption may be rebutted:

If SEA or LEA demonstrates it would
not have provided the services with
state or local funds if the federal funds
were not available
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Rebutting the Presumption

To rebut presumption show:

Fiscal and programmatic documentation to
confirm that, in the absence of federal
funds, would have eliminated staff/services
in question
 School Board action
 Budget histories and information
 Planning documents
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Title I Exception to
Supplement not Supplant

The LEA used State or Local funds to
conduct supplemental Title I like
activities.
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Title I Exception to
Supplement not Supplant



The activity previously paid with State
or Local funds was allowable under Title
I, Part A
Consistent with all Title I fiscal and
programmatic requirements.
Meets the academic needs of Title I
students
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Example


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LEA’s allocation was less than Title I
teacher’s salary & benefits
The LEA contributed the difference
Teacher’s activities were all allowable
under Title I Part A
The LEA could use Title I ARRA funds to
replace the State & Local contribution
to the teacher’s salary & benefits.
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Supplanting in Title I
Schoolwide Programs

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Presumptions do not necessarily apply to
schoolwide programs; however,
The LEA must provide the school with the
same amount of state and local funds as it
would have received had it not received Title
I funds.
Do not shift State & Local funds away from
Title I schoolwide program to another school
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Comparability – Title I



Ensures that services provided with
state and local funds in Title I schools
are comparable to those provided in
non-Title I Schools
In LEAs with all Title I schools –
ensures that services are substantially
comparable between all schools
Annual Requirement for affected LEAs
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Comparability – Title I


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Compare schools with similar grade
spans
Required if more than one school per
grade span
Excludes schools with less than 100
students enrolled
State supplies forms & guidance to
affected LEAs.
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ARRA NEW REQUIREMENT

Each LEA that receives Title I ARRA
funds must file with the SEA a school by
school listing of its per-pupil educational
expenditures from State and Local
sources during the 2008-09 school
year no later than December 1, 2009.
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School by School Expenditures

Typical LEA has at least 3 schools

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Elementary school
Middle school
High school
Waiting for more guidance from US ED
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Maintenance of Effort - Title I


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Requires that an LEA’s expenditures from
state and local funding remain relatively
constant from year to year. (at least 90%).
Either on an aggregate or per pupil basis
State must reduce a district’s allocations in
proportion to the % they failed to meet the
MOE threshold.
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Title I Set asides


1 % for parental involvement if Title I
allocation over $500,000
An amount up to 20% of the District’s
allocation if any of its schools are in
improvement


supplemental educational services
public school choice.
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Districts must sub-allocate
Title I funds to Title I schools

Budget and Track Title I sub-allocations
& expenditures by participating school


Must follow the allocation procedures set
out in the Consolidated Application
Ensure actual per low income student
amounts are in compliance with rank order
of schools.
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Equitable Services for Private
School Students and Teachers


Districts must offer equitable services to
private school students and teachers
from ARRA funding
The District must control funds and
show the equitable amounts or services
were provided
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IDEA Maintenance of Effort
(MOE) Requirement
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IDEA & Supplement not
Supplant


If the LEA meets its MOE requirements,
it is considered to have met the
supplement, not supplant requirement.
Individual activities are not looked at.
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LEA MOE requirement
With certain exceptions, Part B funds must
not be used by an LEA to reduce the level
of expenditures for the education of
children with disabilities made by the LEA
from local funds below the level of those
expenditures for the preceding year
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LEA MOE (cont)
LEA application standard:
With certain exceptions, an LEA budgets for the
education of children with disabilities, at least the
same total or per capita amount of either:


local funds only; or
State and local funds
as it spent from those same sources in the most
recent prior year for which the information is
available
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LEA MOE (cont)
Audit standard:
Compliance with the MOE requirement,
after a fiscal year has ended, is based
on the actual local or state and local
expenditures for special education and
related services in the audited year and
the prior year
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LEA MOE (cont)
Don’t include as state or local funds
any federal funds for which the SEA or
an LEA is required to account to the
federal government
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LEA MOE: Example #1


In fiscal year (FY) 2009, the LEA spent a total of
$100,000 local funds and $900,000 state and local funds
on the education of children with disabilities
For FY 2010, the LEA must spend at least $100,000 of
local funds OR $900,000 of combined state and local
funds for the education of children with disabilities
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LEA MOE: Example #1(cont)

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If the LEA spent $97,000 of local funds and $905,000 of
state and local funds on the education of children with
disabilities, it would meet its MOE level
If the LEA’s calculation of $905,000 of state and local
funds, included $64,000 of ESEA Title 1 funds that it used
for services to children with disabilities, it would not have
met its MOE level
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LEA MOE: Example #2


In FY 2009, Harrison LEA spent a total
of $100,000 local funds and $900,000
state and local funds on the education
of children with disabilities
In FY 2009, Harrison LEA had 150
children with disabilities


$100,000/150 = $667
$900,000/150 = $6,000
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LEA MOE: Example #2 (cont)

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FY 2010 the number of children with
disabilities drops to 130
For FY 2010, Harrison LEA must spend at
least the following amounts on the education
of children with disabilities–


$667 per child local funds ($86,710) OR
$6000 per child state and local funds ($780,000)
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LEA MOE:Example #2 (cont)

If in FY 2010 Harrison LEA spent
$80,000 in local funds and $800,000 in
state and local funds on the education
of children with disabilities, it would
meet it MOE level based on a per capita
amount
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LEA MOE: Exceptions
An LEA may reduce the level of its
expenditures below the comparison year
if the reduction is the result of:
 Voluntary departure, or departure
for just cause, of special education
or related services personnel
 Decrease in enrollment of children
with disabilities
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LEA MOE: Exceptions (cont)
Termination of an exceptionally costly obligation of
the agency to a particular child with a disability
because the child:



Has left the jurisdiction of the LEA
Has reached the age at which the obligation to provide
a free appropriate public education (FAPE) to the child
is terminated, or
No longer needs special education
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LEA MOE: Exceptions (cont)

Termination of costly expenditures for
long-term purchases, such as acquisition
of equipment or construction of school
facilities
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LEA MOE: Common Problem
The LEA does not fully spend the amount
of local, or state and local, funds it was
required to budget in its application at the
beginning of the year to demonstrate to
the State that the LEA would meet the
MOE requirements.
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Possible Optional MOE
Flexibility – 50% rule



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Available under the IDEA, but,
Currently not allowed by State law.
State plans to a introduce bill in the
legislature in January 2010 to revise
State law.
Emergency provision to implement upon
the governor’s signature.
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LEA MOE: Optional Adjustment
50% Rule


For any fiscal year that an LEA’s allocation
exceeds the amount of its prior year’s
allocation, the LEA may reduce its
expenditure of local, or state and local funds
by not more than 50% of the increase in
federal funds
The LEA must use an amount of local funds
equal to the reduction for activities that could
be supported with funds under the ESEA
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Optional MOE 50% Rule
Continued

The LEA must use the freed up local or
State funds to carry out activities that
could be supported with ESEA funds.




The LEA must track and report to the SEA
on the use of the freed up funds.
Must use during current fiscal year
Does not carryover into next fiscal year.
This will reduce the MOE for next year.
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Optional MOE 50% Rule
Continued


The LEA must spend the freed up local
funding by June 30, 2010 or it will not
make MOE in SY 2009-10
This flexibility must be taken in the
fiscal year the excess IDEA allocation
became available.
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LEA MOE: 50 % Rule
Exceptions

The LEA is prohibited from reducing the
level of expenditures for that fiscal year
if an SEA determines that:


an LEA is unable to establish and maintain
FAPE
the SEA has identified the LEA for state
enforcement through local determinations.
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LEA MOE: Adjustment
Example




In year 1, Taft LEA’s allocation is
$900,000.
For year 2, Taft’s allocation is
$1,100,000
Increase = $200,000
Maximum Amount of MOE reduction =
$100,000 for use in ESEA activities
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Early Intervening Services (EIS)
An LEA may use up to 15% of its annual allocation,
less any amount by which it has reduced its MOE
level, to develop and implement coordinated, EIS
for children in K -12 who are not currently identified
as needing special education but who need
additional academic and behavioral support to
succeed in a general education environment
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EIS & the 50% Rule on MOE
Adjustments
The amount of funds expended by an LEA
for early intervening services counts
toward the maximum amount of
expenditures by which the LEA may
reduce local effort
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EIS & the 50% Rule on MOE
Adjustments - Continued


LEAs use of Part B funds for early
intervening services “zeros out” the
ability for the LEA to take an MOE
reduction.
Basically the LEA’s early intervening service
amount equals or exceeds the amount of
the 50% MOE reduction
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EIS/MOE: Example 1





Prior Year’s Allocation -- $ 900,000
Current Year’s
Allocation
-- 1,000,000
Increase
100,000
Maximum MOE
Reduction
-50,000
Maximum for EIS
-150,000
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EIS/MOE: Example 2





Prior Year’s Allocation $1,000,000
Current Year’s
Allocation
2,000,000
Increase
1,000,000
Maximum MOE Reduction 500,000
Maximum for EIS
300,000
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EIS/MOE: Example 2
Continued

If MOE Reduction is 500,000


Then max EIS is 0
If the EIS is 300,000

Then MOE reduction max is 200,000
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EIS/MOE: Example 3





Prior Year’s Allocation $1,000,000
Current Year’s
Allocation
1,000,000
Increase
0
Maximum MOE Reduction
0
Maximum for EIS
150,000
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Planning & Budgeting

Fiscal staff need to work with program
coordinators in preparing budgets.



Ensure Fiscal Requirements are met
Ensure required program set asides are
included in budgets.
Ensure equitable share budgeted for
private schools
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Planning & Budgeting
(continued)



Ensure costs are appropriately
categorized
Guard against exceeding amount
available or under utilizing the full
amount
Ensure costs are allowable
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Follow Approved Budgets



Districts expenditure should follow the
approved budgets.
Just budgeting required set asides
doesn’t fulfill responsibility
Actual expenditures will be looked at to
ensure compliance.
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Determining Allowable Costs
for Federal Programs


Analyze costs to determine if they are
allowable
Develop a formal process to ensure
costs are allowable
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Allowable Costs Questions





Consistent with federal cost principles?
Allowable under the grant program?
Consistent with the approved
application?
Consistent with program specific fiscal
rules?
Consistent with the needs of the
program
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Basic A-87 Guidelines

All Costs Must Be:
 Necessary
 Reasonable
 Allocable
 Authorized or not prohibited under
state and local law
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Reasonable Costs

A-87 Definition - A cost is reasonable if
it does not exceed that which would be
incurred by a prudent person under the
circumstances prevailing at the time the
decision is made to incur the cost.
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Questions - Reasonable




Is the expense targeted to a legitimate
program activity?
Do we have the capacity to use what
we are purchasing?
Can we prove that we paid a fair rate?
Would I be comfortable defending this
purchase?
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Necessary


Must be necessary for the performance
or administration of the grant
Questioning “necessary”


Do we really need this?
Do we already have existing resources
sufficient for this purpose?
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Allocable


Can only charge in proportion to the value
received by the program
Example: The district purchases a
computer to use 50% in the Title I
program and 50% in a state program –
can only charge half the cost to Title I
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Questions - Allocable


Can I prove the program benefited?
Can I prove other programs are not the
primarily beneficiary?
Ensure only authorized use
 Incidental benefit is okay

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Other Basic Guidelines

Legal under state and local law


If not legal under state law, cannot pay
with federal funds
Conform with federal law & grant terms
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Adequate Documentation
Lack of Documentation is #1 Audit
Finding
Document the following
 Amount of funds under grant
 How the funds are used
 Total cost of the project
 Share of costs provided by other
sources

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Adequate Documentation




Records that show compliance
Records that show performance
Other records to facilitate an effective
audit
Keep at least 3 years after the final
project completion report is submitted

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Longer if unresolved audit issues
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Program Implementation




Monitor Expenditures to Budget
Ensure Set-aside activities are
completed
Submit Timely reimbursement requests
Submit Timely budget revisions or
amendments
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Completion

Submit Project Completion Report



Due within 90 days after grant period
Ensure all required set asides were met.
Maintain Program Records
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Federal Cost Principles




OMB Circular A-87 Cost Principles for
State, Local & Indian Tribal
Governments
Applies to School Districts
Available at OMB website:
http://www.whitehouse.gov/OMB/circulars/in
dex.html
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