Application Guidelines

Transcription

1 TEXAS EDUCATION AGENC Application Guidelines Part 2: Program Guidelines and Use of Funds American Recovery and Reinvestment Act (ARRA) of 2009 (Stimulus Funding) Special Education/ School ear Due to TEA: 5:00 p.m. Central Time, Tuesday, September 1, 2009 Guidelines and egrants The application to which these guidelines refer must be submitted electronically through the egrants system. TEA will not accept the application via any other means. Requirement for TEA SE User Name and Password To access egrants, you must have a TEA SE (Texas Education Agency security environment) user name and password. If you have not yet applied for a TEA SE user name and password, use the following link to find the form and instructions for applying for a user name: A user name and password will be ed to you. Allow two weeks for processing. SAS# SPEDAJ10

2 TEXAS EDUCATION AGENC 1701 North Congress Avenue Austin, Texas Copyright 2009 by the Texas Education Agency. All Rights Reserved. The egrants logo is a trademark of the Texas Education Agency. SAS# SPEDAJ10

3 Contents Department of Education Appropriations... 7 Purpose of Request for Application... 8 Grant Timeline... 8 Application Due Date... 8 Project Period... 9 Background Information...10 ARRA Programs Eligibility and Assistance Eligible Applicants Formula ARRA Preschool ARRA Clarifying Information Program Information Supplement Not Supplant Program Purpose, Goals, and Description...12 Overall Goals of the ARRA...12 Secretary of Education s Four Guiding Principles for the Use of ARRA Funds...12 TEA s Four Target Investments for the Use of ARRA Funds...13 Formula ARRA...13 Preschool ARRA...14 Application Requirements...14 Program Assurances...14 Formula ARRA...14 Preschool ARRA...14 Required Attachments...15 Attaching Documents...15 Private Nonprofit School Participation Schools...16 ARRA and Parentally Placed Private School Students...16 ARRA and Proportionate Share...16 Shared Services Arrangements...17 Equitable Access and Participation...18 Program Evaluation...18 Limits on Contracted Evaluators...19 Funding Information...19 Application Funding...19 Budget Requirements Roll Forward...20 Refunds Amendments...20 Reminders...21 Use of Funds Allowable Activities and Use of Funds Unallowable Activities and Use of Funds Maintenance of Effort Required Reports...31 Report Due Dates...31 ARRA Reporting Requirements...31 TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 3 OF 61

4 DUNS Number (Mandatory)...31 Central Contractor Registration (CCR) (Mandatory) Reporting Requirements Availability of Records Expenditure Reports Application Submission through egrants Reference Material and Attachments...37 Allowable and Unallowable Expenditures Payroll Costs Professional and Contracted Services...40 Supplies and Materials Other Operating Costs Debt Service Capital Outlay Building Purchase, Construction, or Improvements Financial Accountability System Resource Guide Guidelines Related to Specific Costs Advertisements Alcoholic Beverages Audit Fees Awards for Recognition and Incentives for Participation Calendars and Calendaring Systems Cellular Telephones for Personal Use Ceremonies, Banquets, or Celebrations Conflict of Interest Construction, Remodeling, or Renovation Consultants Employee Service Awards Employer Contributions to Voluntary Retirement Plan Entertainment, Recreation, Social Events Field Trips Food and Beverage Costs Fund-Raising Activities Gifts Interest Paid Land Purchase and Improvements Legal Fees Membership in Civic and Social Organizations or Lobbying Organizations Personal Calendaring Systems Printing Costs Professional or Individual Liability Insurance Promotional Items, Memorabilia, or Souvenirs Renovation, Remodeling, or Construction Social Events Substitute Pay for Private Nonprofit Schools Training or Technical Assistance on Grant Writing Transportation Costs Travel Costs Tuition...60 Federal Cost Principles...60 PAGE 4 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

5 Reference Tables Allowable and Unallowable Personnel Positions Allowable and Unallowable Professional and Contracted Services...41 Allowable and Unallowable Supplies and Materials Allowable and Unallowable Other Operating Costs Allowable and Unallowable Debt Service Costs Allowable and Unallowable Capital Outlay...51 TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 5 OF 61

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7 Name of Project School ear SAS# Application Due Date Formula ARRA SPEDAJ10 Tuesday, September 1, 2009 Preschool ARRA 5:00 p.m. Central Time This part of the request for applications (RFA), Part 2: Program Guidelines, is to be used in conjunction with Part 1: General and Fiscal Guidelines and the Schedule Instructions. The Standard Application System (SAS) consists of all schedules (i.e., forms) to be completed in order for the applicant to be eligible for funding. For applicants selected for funding, all guidelines and instructions will be incorporated by reference into the Notice of Grant Award (NOGA). Department of Education Appropriations The following is provided in compliance with the U. S. Department of Education (USDE) Appropriations Act: Formula ARRA Category Amount Total funds available for this project Approx. $945,636,328 Percentage to be financed with Federal funds 100% Amount of Federal funds Approx. $945,636,328 Percentage to be financed from nonfederal sources 0% Amount of nonfederal funds $0 Preschool ARRA Category Amount Total funds available for this project Approx $24,328,422 Percentage to be financed with Federal funds 100% Amount of Federal funds Approx $24,328,422 Percentage to be financed from nonfederal sources 0% Amount of nonfederal funds $0 TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 7 OF 61

8 Purpose of Request for Application The purpose of this request for application is to solicit grant applications from eligible applicants to carry out programs that provide special education and related services to children with disabilities ages 3 21 to ensure that children with disabilities have access to a free, appropriate public education that will meet each child s unique needs and prepare him or her for further education, employment, and independent living. The IDEA funds under the American Recovery and Investment Act (ARRA) of 2009 (Public Law (P.L.) 111-5, enacted February 17, 2009) will provide an unprecedented opportunity for local education agencies (LEAs) to implement innovative strategies to improve outcomes for children with disabilities while stimulating the economy. To qualify for grant funding, applicants must meet all eligibility criteria defined in the Eligible Applicants section. Applicants must also submit with the application any required attachments (listed in the Required Attachments section). All program requirements are listed in the Application Requirements section. The Texas Education Agency (TEA) may periodically issue written guidelines concerning the management of grants approved in this application or clarifying previously issued grant guidelines. Any guidance issued after the initial approval of the application is to be incorporated with these instructions. Grant Timeline Name of Grant Program Formula ARRA Preschool ARRA Application Due Date Amendment Due Date Grant Period Deadline for Filing Final Expenditure Report (FER) Deadline for Filing Revised FER 9/01/09 7/1/2011 4/15/09 9/30/11 10/31/ /30/2011 9/01/09 7/1/2011 4/15/09 9/30/11 10/31/ /30/2011 If a report due date falls on a weekend or holiday, the report will be due the following business day. All of these dates except the grant ending date may vary slightly as conditions require. Application Due Date The completed egrants application must be certified and submitted by the official authorized to bind the applicant organization in a contractual agreement by September 1, 2009, at 5 p.m. Central Time. The approval ID (TEA SE user name) listed on the Certify and Submit form upon submission must be that of the authorized official listed by you in the space provided. By the established due date and time, the certifying official must click on the Certify and Submit button in egrants to submit the application to TEA. In establishing the time and date of receipt, the commissioner of PAGE 8 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

9 education will rely solely on the date and time recorded in the egrants automated system. Applications not received by the deadline time and date are not eligible for review. TEA accepts no responsibility for technical problems, delays, or insufficient capacity of technology that occurs at the applicant or originating organization. ou are strongly advised to submit applications well before the deadline date and time in an effort to reduce or eliminate technical barriers. Project Period The project begins on the date the application is submitted in substantially approvable form to TEA and ends no later than September 30, Obligations of funds for activities and services conducted shall occur within these dates. All goods must be received and all services must be provided or delivered in time to substantially benefit the current grant period and in no case after the ending date of the grant. In most instances, goods or services delivered near the end of the grant period are viewed by TEA as not necessary to accomplish the objectives of the current grant program, and TEA may disallow the expenditures. ARRA funding is considered one-time funding that is expected to be temporary. Grantees are expected to expend funds in ways that do not result in unsustainable continuing commitments after the funding expires. Grantees are urged to move rapidly to develop plans for using funds, consistent with the ARRA s reporting and accountability requirements and prudent grant management practices, and to promptly begin spending funds to help drive the nation s economic recovery. Unless otherwise specified in the Notice of Grant Award (NOGA), all funds are effective from the beginning date specified on the NOGA (for formula funds, the date the application is received in TEA in substantially approvable form) through September 30, Carryover of funds will not be available beyond that date. Unobligated/unexpended funds will be returned to the Department of Treasury. All obligations of grant funds must occur between the beginning date and ending date of the grant, as stated on the NOGA. Grant funds may not be obligated before the starting date of the grant. When obligations are made is defined in 34 CFR An obligation occurs, depending upon the expenditure, as follows: Services by an employee: when the services are performed by the employee Services by a contractor: the date of a binding written commitment, such as a contract or other written agreement, to obtain services from the contractor Utility services: when the services are received Travel: when the travel is actually taken Rental or lease of property: when the property is actually used or occupied Real or personal property (including purchase of supplies and equipment): the date of a binding written commitment, such as a purchase order, invoice, or receipt, to acquire the property Refer to the Provisions and Assurances for the American Recovery and Reinvestment Act of 2009 Special Education, Section B, for more information related to period of availability, obligations, and expenditures. TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 9 OF 61

10 Background Information For definitions, see the egrants glossary at Reference Materials/705XXXXPP1300_G.pdf. President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA or the Recovery Act) on February 17, 2009, providing a historic opportunity to save hundreds of thousands of jobs, support states and school districts, and advance reforms and improvements that will create long-lasting results for our students and our nation, including early learning, K 12, and post-secondary education. Districts should view ARRA funding as a unique opportunity to improve teaching and learning and should focus these funds on short-term investments with the potential for long-term benefits rather than make ongoing commitments that they might not be able to sustain once ARRA funds are expended. Congress and the Secretary of Education have directed that ARRA funds be distributed swiftly and impeccably. Funds will only be available through September 30, 2011, so distributing them will require swift action on the part of each school district and charter school. Numerous significant transparency and accountability provisions with regard to the expenditure of funds and other reporting requirements pertaining to the number of teachers retained or hired as a result of the funding accompany the Act. The Federal Offices of Inspector General (OIG) have significant authority to review, audit, and investigate the use of funds to prevent fraud, waste, and abuse. The Act establishes the Recovery Accountability and Transparency Board to coordinate and conduct oversight of funds and to develop and maintain a public web site that will house detailed information about the use of funds. These additional funds provided in the Recovery Act must be accounted for separately from the regular federal funds and other funds provided to LEAs. LEAs will be required to report the use of funds to TEA, and TEA, in turn, must report to the USDE. Several sections in these Program Guidelines address the funding period; expectations for the use of funds; TEA s targeted use of funds, which align with the Secretary of Education s goals and principles for the use of funds; and significant reporting requirements. Separate Provisions and Assurances are provided for ARRA. (See the Provisions and Assurances for the American Recovery and Reinvestment Act of 2009.) Grantees should carefully review all guidance provided in these Program Guidelines as well as the requirements and conditions listed in the Provisions and Assurances for ARRA. All standard General Provisions and Assurances, as well as those pertaining to Debarment and Suspension, Lobbying, and program-specific provisions and assurances apply as well. Failure to comply with any program requirements, grant conditions, provisions and assurances, and reporting requirements could result in the TEA taking one or more enforcement actions authorized in Title 34 of the Code of Federal Regulations (CFR) and 80.43, including the loss or reduction of funds or the termination of the grant. ARRA Programs Programs authorized in Division A of the ARRA include Title I Part A; Title I School Improvement Program (SIP); Title I SIP Academy; Title I, Part D, Subpart 2 (Neglected and Delinquent); IDEA Part B; Title II, Part D, Technology Education (formula and discretionary); and McKinney Homeless Education Funds. All funding provided under the Recovery Act will be subject to the provisions, assurances and conditions for ARRA. The grant application program description schedules and provisions and assurances contained within the regular formula applications identified in the previous paragraph, as negotiated and approved by TEA for the , , and/or school years, as appropriate, are hereby incorporated by reference into this ARRA grant application unless otherwise explicitly stated. Grantees must use ARRA funds for activities described in those applications unless described differently in this ARRA application. PAGE 10 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

11 Eligibility and Assistance Eligible Applicants The following sections list the eligible applicants for each funding source. Formula ARRA Eligible applicants are the following: LEAs or their fiscal agents State agencies operating education programs Preschool ARRA Eligible applicants are the following: LEAs or their fiscal agents State agencies operating education programs Clarifying Information Any person wishing to obtain clarifying information about this application can contact the following TEA program and funding contacts: Program Contact Texas Education Agency Division of IDEA Coordination 1701 N. Congress Austin, Texas Funding Contact Texas Education Agency Division of Formula Funding 1701 N. Congress Austin, Texas Please see Application Guidelines Part 1: General and Fiscal Guidelines for more detailed or additional information applicable to all TEA grant programs. Program Information The following sections describe the requirements of the program and provide other information about the program for applicants. Supplement Not Supplant Federal funds for these programs must be used to supplement (increase the level of services) and not supplant (replace) funds from nonfederal sources. Any program activity required by State law, State Board of Education (SBOE) rules, or local board policy may not be paid with these funds. State or local funds may TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 11 OF 61

12 not be decreased or diverted for other uses merely because of the availability of these funds. ou must maintain documentation that clearly demonstrates the supplementary nature of these funds. Under IDEA, section 613(a)(2)(A)(ii) (34 CFR (a)(3)) (supplement/not supplant), Part B funds must be used to supplement state, local, and other Federal funds used for providing services to children with disabilities. If the LEA maintains (or exceeds) its level of local or state and local expenditures for special education and related services from year to year, either in total or per capita, then the Part B funds are, in fact, supplementing those local or state and local expenditures, and the LEA has met its maintenance of effort (MOE) and supplement/not supplant requirements. (Before 1992, the Part B regulations also included a particular cost test for determining whether supplanting occurred. This requirement meant, for example, that if an LEA spent Part B funds to pay for a teacher s salary that was previously paid for with state or local funds, a supplanting violation would occur, even though the total amount of state and local funds spent on special education was greater than the amount spent the previous year. At that time, an LEA could maintain effort but still violate the supplement/not supplant provision. The particular cost test was removed from the regulations by an amendment published in the Federal Register on August 19, 1992 [37 FR 37652], and that became effective on October 3, Therefore, no requirement currently exists related to supplanting particular costs and if an LEA maintains local or state and local effort, it will not violate the supplement/not supplant requirements of the IDEA.) Program Purpose, Goals, and Description Funds will be used in accordance with the authorizing program statute for. Grantees must comply with all corresponding program requirements, conditions for grant award, and provisions and assurances for those programs. (Refer to the Application Requirements and Program Assurances). The USDE issued fact sheets and guidance related to ARRA funds for education. The following is an excerpt from those fact sheets and guidance. Grantees are required to adhere to the principles outlined below in the use of ARRA funds. Overall Goals of the ARRA The overall goals of the ARRA are to stimulate the economy in the short term and invest in education and other essential public services to ensure the long-term economic health of our nation. The success of the education part of the ARRA will depend on the shared commitment and responsibility of students, parents, teachers, principals, superintendents, education boards, college presidents, state school chiefs, governors, local officials, and federal officials. Collectively, we must advance ARRA s short-term economic goals by investing quickly, and we must support ARRA's long-term economic goals by investing wisely and using these funds to strengthen education, drive reforms, and improve results for students from early learning through post-secondary education. Secretary of Education s Four Guiding Principles for the Use of ARRA Funds The Secretary of Education has established four principles to guide the distribution and use of ARRA funds: 1. Spend funds quickly to save and create jobs. ARRA funds will be distributed quickly to states, LEAs, and other entities in order to avert layoffs, create and save jobs, and improve student achievement. LEAs in turn are urged to move rapidly to develop plans for using funds, consistent with the law's reporting and accountability requirements, and to promptly begin spending funds to help drive the nation s economic recovery, consistent with prudent grant management practices. 2. Improve student achievement through school improvement and reform. ARRA funds should be used to improve student achievement. PAGE 12 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

13 3. Ensure transparency, reporting and accountability. To prevent fraud and abuse, support the most effective uses of ARRA funds, and accurately measure and track results, recipients must publicly report on how funds are used. Due to the unprecedented scope and importance of this investment, ARRA funds are subject to additional and more rigorous reporting requirements than normally apply to grant recipients. 4. Invest one-time ARRA funds thoughtfully to minimize the funding cliff. ARRA represents a historic infusion of funds that is expected to be temporary. Depending on the program, these funds are available for only two years. These funds should be invested in ways that do not result in unsustainable continuing commitments after the funding expires. All IDEA ARRA funds must be used consistent with the current IDEA, Part B, statutory and regulatory requirements and applicable requirements in the General Education Provisions Act (GEPA) and the Education Department General Administrative Regulations (EDGAR). TEA s Four Target Investments for the Use of ARRA Funds TEA is committed to providing every student in Texas with access to an effective teacher. TEA s four target investments for the use of ARRA funds, which align with the Secretary of Education s goals and principles, are as follows. Grantees are encouraged to use ARRA funds accordingly. 1. Increasing efforts to institute rigorous post-secondary standards and high-quality (valid, reliable) assessments 2. Enhancing pre-kindergarten to post-secondary data systems that track progress and foster continuous improvement 3. Ensure continuing to improve teacher effectiveness and supporting the equitable distribution of qualified teachers across the state 4. Expanding the state s support and effective interventions for the lowest-performing schools As your staff begin the process of reviewing the needs identified by your campus and LEA s comprehensive needs assessment process and strategically planning for the expenditure and implementation of this additional funding, TEA strongly encourages you to consider the types of programs, activities, and strategies that will be most effective in improving students academic performance in meeting and exceeding state standards. This funding is an opportunity to thoughtfully plan for the implementation and expenditure of innovative strategies to improve academic performance for all students. Formula ARRA The regulations implementing define the purpose of the act as a means to do the following: Ensure that all students with disabilities have available a free, appropriate public education (FAPE) that includes special education and related services to meet their unique needs. Ensure that the rights of students with disabilities and of their parents are protected. Assist states and localities in providing for the education of all students with disabilities. Assess and ensure the effectiveness of efforts to educate those students. TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 13 OF 61

14 Preschool ARRA In addition to the purpose of Formula funds, the regulations implementing the Preschool funds define the purpose of the act as a means to supplement and increase services beyond the level of State and local funds expended for preschool students ages 3 5 with disabilities. Application Requirements This section of the RFA describes all requirements that applicants must address in the application (i.e., through a narrative description, an activity timeline, a checklist, etc.). In some cases, applicants might be required to provide information in a certain format on a particular schedule. In those cases, the requirement will specify the schedule where applicants are required to provide information. If a position is listed in the Other field of the BS6006 Program Budget Summary and Support, 6100 Payroll, a job description must be attached. If items are listed in the BS6006 Program Budget Summary and Support, Part 10: 6600 Capital Outlay, the Use and Purpose form must be attached. Program Assurances This section lists requirements that applicants are required to comply with in designing and administering their grant programs. (These requirements are in addition to requirements listed in Part 1: General and Fiscal Guidelines and elsewhere in Part 2: Program Guidelines and Use of Funds.) All IDEA ARRA funds must be used consistent with the current IDEA, Part B, statutory and regulatory requirements and applicable requirements in the GEPA and EDGAR. Formula ARRA Federal regulations stipulate that each program must demonstrate that it meets the excess cost requirements of. The excess cost requirement prevents an LEA from using funds provided under Part B of the act to pay for all the costs directly attributable to the education of a child with a disability. An LEA meets the excess cost requirement if it has spent at least a minimum average amount for the education of its children with disabilities before funds under Part B of the act are used. [34 CFR ] funds must be used to supplement and in no case to supplant the level of State and local funds expended for the education of students ages 3 21 with disabilities. Explore all available fund sources before making a decision to expend funds. Priorities for these funds are based on local needs. The applicant agency is responsible for setting aside 25% of its tentative ARRA Formula base entitlement for residential placement costs. The 25% set-aside is applied to both related services and residential (room, board, and other daily care) costs. If the applicant agency fails to set aside the necessary 25%, it guarantees an equivalent amount of State and/or local funds to meet residential placement costs that may occur. [19 Texas Administrative Code (TAC) 89.61(b)(2)(B)] Preschool ARRA Federal regulations stipulate that each program must demonstrate that it meets the excess cost requirements of. The excess cost requirement prevents an LEA from using funds provided under Part B of the act to pay for all the costs directly attributable to the education of a child with a disability. An LEA meets the excess cost requirement if it has spent at least a minimum average amount for the education of its children with disabilities before funds under Part B of the act are used. [34 CFR ] PAGE 14 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

15 Preschool funds must be used to supplement and in no case to supplant the level of state and local funds expended for the education of students ages 3 5 with disabilities. Explore all available fund sources before making a decision to expend funds. These funds may not be used to provide any services to students before their third birthday. However, preassessments may be funded with Formula or Formula ARRA funds. The priority for these funds is to provide all students with disabilities ages 3 5 with a comprehensive program that meets their individual needs. These funds allow an applicant agency to expand and extend services already available to these students. Required Attachments These attachments are in addition to any attachments required in Part 1: General and Fiscal Guidelines related to proof of financial stability, proof of nonprofit status, and the reviewer information form: Specific documents may be required if funding is requested in the following class/object codes: 6100 Payroll 6600 Capital Outlay If federal funds are used for lobbying activities, you must attach an Office of Management and Budget (OMB) form, Disclosure of Lobbying Activities. This form is available from grants/sflllin.pdf. Attaching Documents Follow these instructions for attaching documents to the application. Note: The size of each attachment cannot exceed 10MB. If you have a larger file, use a different scanning setting or zip the file to make it take up less space. Naming Attachments Name the files you are going to attach with no spaces (for example, 501C3letter.doc or 5013C_letter.doc). Use a meaningful name that identifies the specific document. Make sure that each attachment has a file extension (.pdf,.doc,.rtf,.xls,.bmp,.zip,.txt). Scanning Documents If a document must be scanned to create an electronic copy, use the following hints to ensure that the document size is as small as possible: Use an OCR or DPI setting of 200 DPI. Try to avoid creating.jpg files. If possible, create PDF documents with the scanner. Zipping Files If your files are too large, add them to a zip file to save space. To download a free version of WinZip and find instructions on creating zip files, go to Adding Attachments 1. On the Grant Menu page, click Attach File. The following attachment screen appears: The required attachments are listed and described at the top of the dialog box. If you are attaching a document that is not listed, check Other. TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 15 OF 61

16 2. In the Add Attachments pane, select the title of the attachment from the list, or if you selected Other above, type in the title. 3. Click the Browse button. A standard Windows browser appears. Find the file. 4. Click Attach. 5. Click Refresh to see the name of the document in the Documents Submitted in this version pane. 6. Repeat this process to attach the rest of your documents. Private Nonprofit School Participation Schools Before preparing and submitting this application, applicants must consult private nonprofit schools in the planning and development of the project. To the extent consistent with the number and location of children with disabilities who are parentally placed in elementary and secondary private schools located in the school district served by the LEA, provision is made for the participation of those children in the program assisted or carried out by by providing them with special education and related services. [34 CFR ] To ensure equitable participation, the IDEA requires that LEAs spend a proportionate amount of their portion of funds on providing services to parentally placed private school children with disabilities. [34 CFR ] Parentally placed private school children with disabilities may receive a different amount of services than children with disabilities in public schools. [34 CRF ] No parentally placed private school child with a disability has an individual right to receive some or all of the special education and related services that the child would receive if enrolled in a public school. [34 CFR ] Refer to the instructions for Schedule PS3502 Private Schools Participation for specific guidelines and instructions. ARRA and Parentally Placed Private School Students Under section 612(a)(10)(A)(iii), timely and meaningful consultation must occur during the design and development of special education and related services. The consultation process must include discussions of how the process will operate throughout the school year to ensure that parentally placed children with disabilities identified through the child find process may meaningfully participate in special education and related services. An LEA may be able to use the mechanisms developed for the ongoing consultation process to work with representatives of the private schools located in the area served by the LEA and representatives of parents of parentally placed private school children with disabilities in determining how the proportionate share of IDEA ARRA funds will be expended. In any case, an LEA must ensure that it has engaged in consultation with the private school representatives and representatives of parents of parentally placed private school children with disabilities about how the additional funds available for services for parentally placed private school children with disabilities will be used. ARRA and Proportionate Share The PS3502 Private School Participation form must be submitted with both the Special Education Consolidated Application and the Special Education IDEA ARRA Application using the appropriate entitlement for each when calculating proportionate share. The aggregate amount of proportionate share from each fund source must be spent on providing services for parentally placed private school children with disabilities. Subject to certain conditions, an LEA may spend part of the proportionate share of the IDEA Part B ARRA funds on children with disabilities in school year and part in school year Under 34 CFR (a), each LEA is required to spend a minimum amount of its subgrants under Part B Formula and Preschool grants on children with disabilities parentally placed in private elementary and secondary PAGE 16 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

17 schools. The ARRA provides a substantial increase in F 2009 IDEA Part B funds when considering the aggregate amount of the regular Part B funds and the ARRA Part B funds. As provided in 34 CFR (a)(3), if an LEA has not expended all of the proportionate share of its Part B subgrant by the end of the fiscal year for which Congress appropriated the funds, the LEA must obligate the remaining funds for special education and related services to children with disabilities parentally placed in private schools during a carry-over period of one additional year. An LEA must consult with private school representatives and parents of parentally placed private school students in designing and developing the special education and related services that the LEA will provide for parentally placed private school children. [34 CFR ] As part of this consultation, the LEA, private school representatives, and parents of parentally placed private school students must consider how the proportionate share of IDEA funds (including the regular and the ARRA IDEA Part B funds) should be spent. One option for spending those funds would be to spend some in school year and some in school year Use Schedule PS3502 Private Schools Participation to report participation of private school students with disabilities enrolled in private schools that are located within your organization s legal boundaries. This form is not applicable to open-enrollment charter schools or agencies providing only ECI programs. This form is not applicable if there are no private schools, including home schools, located within the legal boundaries of your organization. A shared services arrangement (SSA) may omit this schedule from the application only if none of the member LEAs have any private schools, including home schools, located within their boundaries. This schedule is required if there are any private schools located within your organization s legal boundaries, including home schools. If you have such schools or students, but none are participating in the program, include this information on this schedule, along with the manner in which the schools were contacted. In determining whether a school or entity is a private school, school districts must determine if the private school (1) is a nonprofit entity, (2) provides elementary or secondary education that incorporates an adopted curriculum designed to meet basic educational goals, including scope and sequence of courses, and (3) conducts formal reviews and documents student progress. A home school is not required to be a nonprofit entity to be considered a private school. However, to be considered a private school, a home school must provide elementary or secondary education that incorporates an adopted curriculum designed to meet basic educational goals, including scope and sequence of courses, and must conduct formal reviews and document student progress. For further information on private nonprofit school participation, including instructions on calculating proportionate share, see the Special Education Guidance web site at: Shared Services Arrangements SSAs (consortiums) are based on contracts submitted to and approved by TEA. When one or more applicants enter into an SSA, a written agreement must be developed to address the responsibilities of each member and the fiscal agent. The written agreement should address certain legal requirements as described below. (Refer to Section of the FAR Module of the Financial Accountability System Resource Guide for more detailed information pertaining to SSA written agreements.) At minimum, the SSA agreement must contain the following information: a description of legal requirements, as follows: organization of the SSA ownership of assets TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 17 OF 61

18 policies and procedures addressing disposition of assets if the SSA is terminated by one or all members liabilities, including legal fees because of complaint, grievance, litigation, refund from onsite monitoring, or audit basis for allocation of costs uncontrollable costs that impact the fiscal agent description of responsibilities of the designated fiscal agent: services to be provided to SSA members services to private school students and teachers, as applicable employment of personnel budgeting and accounting reporting description of responsibilities of each SSA member: employment of personnel budgeting and accounting reporting In addition, the SSA shall determine in advance and in writing as part of the SSA agreement how Federal rollforward (carryover) funds will be distributed if a member LEA leaves the arrangement or if the arrangement dissolves. The SSA and its members are charged with handling the accounting and documentation of any transfers of funds resulting from a member LEA leaving the SSA or an SSA dissolving. Upon request, documentation of any such transfers must be made available to TEA. The fiscal agent must submit a copy of the written agreement to the Division of Formula Funding, TEA, and must also maintain on file a copy for audit or monitoring purposes. Equitable Access and Participation ou are required to report on equitable access and participation to apply for these grant programs. Complete Schedule PS3400 Equitable Access and Participation, included in the egrants application for this project. Section 427 of the Department of Education s GEPA requires each applicant for funds to include in its application a description of the steps the applicant proposes to take to ensure equitable access to and participation in its federally assisted program for students, teachers, and other program beneficiaries with special needs. The intent of Section 427 is to ensure that, in designing their projects, applicants for Federal funds address equity concerns that may affect the ability of certain potential beneficiaries to fully participate in the project and to achieve to high standards. TEA recognizes that many applicants may already be implementing effective steps to ensure equity of access and participation in their grant programs and appreciates your cooperation in responding to the requirements of this provision. Program Evaluation By submitting this application, the applicant agrees to comply with any reporting and evaluation requirements that may be established by TEA and agrees to submit the reports in the format and time requested by TEA. TEA will collect and analyze data available from the Public Education Information Management System (PEIMS) where possible. PAGE 18 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

19 The President and Congress are committed to ensuring that ARRA dollars are spent with an unprecedented level of transparency and accountability. Therefore, states and LEAs that receive recovery funds should expect to report on how those funds were spent and the results of those expenditures. Transparency allows the opportunity to quantify and define goals and to mobilize support for improving results for all students. ARRA requires that recipients of funds made available under that act separately account for and report on how those funds are spent. Recipients will need to maintain accurate documentation of all ARRA expenditures to ensure that the data reported is accurate, complete, and reliable. States will be expected to monitor subgrantees to help ensure data quality and the proper expenditure of ARRA funds. Further guidance from TEA on reporting requirements will be forthcoming. Limits on Contracted Evaluators When a grantee chooses or is required under the grant to hire a contracted evaluator, TEA believes the evaluation must be conducted by an evaluator who has the capability to remain independent and objective in carrying out the evaluation. Many grants also provide for some type of training or technical assistance and other program services. Independent and objective implies that there is no influence or control, real or perceived, exerted on the evaluator by any person who is involved in the provision of program services. Therefore, the only way in which a contracted evaluator can be truly independent and objective is to not be involved in any manner in the provision of program services or activities. Otherwise, the evaluator is, at least in part, evaluating its own services. In addition, TEA is aware that some grant writers develop and design the grant program, write the entire grant application, and then wish to evaluate the grant program. TEA also believes that this scenario poses a conflict of interest for the evaluator, in that the evaluator is evaluating the grant program that he or she designed, developed, and wrote. Again, it is not possible for the evaluator to function independently and objectively if the evaluator performed in this capacity. It is certainly acceptable for the grant writer to receive some information from a potential evaluator to include in the evaluation section of the grant application with regard to an appropriate evaluation plan or design, but communication between the grant writer and evaluator would be limited to that specific topic. Application Funding Funding Information Approximately $969,964,750 is available for funding the Special Education grants during the project period. Project funding will be based on appropriations by the U. S. Congress. All encumbrances shall occur on or between the beginning and ending dates of the grant. All goods must be received and services rendered and subsequently liquidated (recorded as an expenditure or accounts payable) within the grant dates (for formula grants, within 30 days after the grant end date). In no manner shall encumbrances be considered or reflected as accounts payable or as expenditures. Obligations that are liquidated and recognized as expenditures must meet the allowable cost principles in OMB Circular A-87, A- 21, or A-122 (as applicable) and in program rules, regulations, and guidelines contained elsewhere. Administrative requirements for grants stipulate that you must request cash as close as possible to the time of making disbursements. ou should not have more cash on hand than is necessary to meet three days cash needs. Therefore, you should request only that amount which will be paid out within three business days once the reimbursement payment is received from TEA. Payments through Expenditure Reporting (ER) should be TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 19 OF 61

20 deposited into your depository bank within six to seven business days of the request (provided the request does not exceed the established threshold and there are no other complications with the system). Therefore, request cash no earlier than six working days before actual disbursement of funds. Budget Requirements Use the Financial Accounting and Reporting (FAR) Module of the Financial Accountability System Resource Guide to determine appropriate accounting codes. ou must maintain documentation for all expenditures for each fund source on the egrants application. ou must maintain documentation that local funds are used if either travel or transportation expenditures exceed state rates. An application or amendment must be approved by TEA before the initiation of any activities affected by that application or amendment, such as purchase orders issued, funds encumbered or expended, goods received, or services rendered. Applications or amendments received in substantially approvable form for projects funded on a formula or discretionary basis become effective on the date received by TEA (stamp-in date/date of certification by the LEA) or the project begin date, whichever is later. Applications or amendments not received in substantially approvable form will not be processed, and your organization will lose the original certification (stamp-in) date. Roll Forward Roll forward will not be available. Refunds As indicated above, you are paid on a reimbursement basis and as such should monitor your cash needs. Adherence to these practices will reduce the necessity for refunds. If TEA determines a refund is due, you shall pay within 10 days of notification. If you fail to pay within 30 days, TEA will place a Hold on the current-year NOGA for your project. Amendments An amendment is a document requesting changes to budgetary or programmatic elements previously approved by TEA. The amendment deadline for the application SPEDAJ10 is July 1, An amendment can be submitted only after the original application has been approved and the NOGA awarded. An amendment must be approved by TEA before implementing any related activities such as adding personnel, issuing purchase orders, encumbering or expending funds, receiving goods, or rendering services, which are affected by the amendment. Amendments received in substantially approvable form will become effective on the date received (official stamp-in date/date of certification by the LEA) or the project start date, whichever is later. When approved, the applicant will receive an notifying them that the amended NOGA is available online. PAGE 20 OF 61 SAS# SPEDAJ10 TEXAS EDUCATION AGENC

21 Holding class/object costs open by using a small placeholder amount: Many LEAs submit applications and amendments with only $1.00 indicated in a class/object category. Generally, TEA auditors deem the practice of using $1.00 or another unreasonable or unrealistic amount in a class/object category as a poor business practice and an indication of inadequate planning by the LEA. Accordingly, TEA or Federal auditors may deem this practice as an indication that the grant funds may not have been properly budgeted and may be at risk of being expended in a manner inconsistent with legal requirements and with the LEA s plan for the grant program. Therefore, LEAs are encouraged to submit amounts in class/object categories that more closely reflect the actual budgetary needs of the district. Funds may be transferred between major objects of expenditures (for example, class/object code 6200, or 6300) budgeted on Schedule BS6006 Program Budget Summary and Support, without an amendment if the cumulative total transferred does not exceed 25% of the total current approved budget, funds are already budgeted in the class/object codes involved, and the requested cost items do not require specific approval. Class/object codes 6100 and 6600 always requires specific approval. See the Schedule Instructions for the GS2900 Purpose of Amendment for the conditions under which amendments to the application are allowable. Reminders The following reminders are included to assist you: 2CFR Part 225 Appendix B defines equipment as an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost that equals or exceeds the lesser of $5,000 or the capitalization level established by the LEA for financial statements. Items that are under $5,000 or under the capitalization level established by the LEA should be budgeted under class/object code 6300 Supplies and Materials. There may be circumstances when property coded to 63XX must be inventoried for insurance valuation purposes. This choice is a local option. Information will be obtained from the PEIMS database so that maintenance of effort (MOE) can be calculated by TEA staff. However, your organization is responsible for maintaining effort and for documenting MOE according to the requirements found at 34CFR To meet this requirement, you must ensure that funds provided to your organization under Part B of the Act are not used to reduce the level of expenditures for the education of children with disabilities made by your organization from a combination of State and local funds below the level of those expenditures for the preceding fiscal year. Effective in , for the purpose of meeting MOE requirements, you may treat as local funds up to 50% of the amount of funds you receive under Formula grants that exceeds the amount you received the previous fiscal year. Agencies that do not maintain effort will be liable in an audit or review for repayment of the amount by which they failed to expend to equal the prior year s expenditures, up to the total amount of the agency s grant. For information specific to how the use of funds for EIS may affect MOE, refer to 34 CFR 300, Appendix D. If effort has not been maintained, applicants notified by TEA will be subject to repayment of IDEA funds. Refer to 34 CFR See Maintenance of Effort for more information. TEXAS EDUCATION AGENC SAS# SPEDAJ10 PAGE 21 OF 61