1. 1 ARRA Update: FY2010 Education Stabilization & Section 1512 Reporting Requirements MSBO Finance Services Workshop September 18, 2009

2. 2 Topics to be covered ARRA Overview for FY2010 Education Stabilization for FY2010 ARRA Reporting Requirements   Section 1512 Reporting   Program Performance Reporting   Final Expenditure Reporting   Financial Information Database

3. 3 ARRA Comes in Two Large Sections Direct Education Direct Education  Title I, Part A  Title I, Part A School Improvement  Title I, Part D  Title II, Part D Educational Technology  Title X, Part C Homeless  IDEA Special Education  School Meal Equipment Assistance  Temporary Emergency Food Assistance Program  Other State Fiscal Stabilization State Fiscal Stabilization

4. 4 State Fiscal Stabilization Fund Governors (1)State Incentive & Grants (Race to the Top) (2) Investing in Innovation CompetitiveFormula Elementary & Secondary Education Institutes of Higher Education Public Safety and Other State Services The Secretary $5B 81.8%18.2%

5. 5 Education Stabilization Fund FY2009 $600 million appropriated by Legislature Districts submitted applications to MDE District applications approved Awards made to eligible applicants Districts request/drawdown funds Funds used to restore State Aid cut

6. 6 Education Stabilization FY2010 Process State submits application to USED for SFSF Part II USED awards remaining allocation to State ($429,781,767) Remaining Part I award: $272,587,225 FY2010 State Budget Negotiations Determine State Aid for FY2010 Determine available Part I and Part II amount of ES funds available to restore cuts

7. 7 Education Stabilization FY2010 Process FY2010 State Aid determined SFSF Funds appropriated to offset cuts Partial Allocations from remaining Phase I funds Determined Full allocation depend on Phase II approval by Feds Announcement of allocations Depends on Superintendent approval Partial awards made to all eligible applicants District/IHE request/drawdown funds Reimbursement basis only NOTE: No new application required

8. 8 Expectations for FY2010 October State Aid payment will be 1/11 th of State Aid amount October State Aid payment will be 1/11 th of State Aid amount Available Part I ES funds will be approved in October (~1/3 of FY2010 allocation) Available Part I ES funds will be approved in October (~1/3 of FY2010 allocation) State Aid payments will not be consistent for FY2010 State Aid payments will not be consistent for FY2010 Section 22b funds only Section 22b funds only ES approvals will be increased when Part II award made to State ES approvals will be increased when Part II award made to State

9. 9 Potentially Eligible Agencies Local Educational Agencies Public School Academies Institutes of Higher Education IHE’s will get ES funds in FY2010

10. 10 ES Application Not Required Applications submitted in June/July 2009 can be amended Update contacts or statement on district use of funds in FY2010 How funds helped to create or save jobs How district intends to advance essential reform Re-submission by Authorized Official (level 5)

11. 11 Amending the ESF Application Districts may update the statement of use for FY2010 Main contacts can also be updated Not required

12. 12 The ARRA Application

13. 13 Things to Think About It is strongly advised to read the SFSF guidance Think/plan/act for stabilization and innovation Four core reform assurances Plan for sustainability beyond September 30, 2011 Detailed accountability, tracking, transparency & monitoring

14. 14 What is different in FY2010? Federal funds can be drawn on a reimbursement basis only FY2009 awards made AFTER the school year ended, so reimbursement basis was easy FY2010 awards will be made starting October: recipients required to ensure they comply with all Federal guidance Draw funds only for allowable expenditures

15. 15 Allowable Use of Funds Consistent with overall intent and goals of ARRA Short-term investments…long-term benefits Any activity authorized under ESEA (including Impact Aid), IDEA, Adult and Family Literacy Act, & Perkins Career and Tech Education Act, or for modernization, renovation or repair

16. 16 Prohibited Use of Funds Payment of maintenance costs Stadiums or other facilities used for athletics/exhibitions where admission is charged Purchase or upgrades of vehicles Improvement of facilities, e.g., central office administration, operations or transportation Modernization, renovation or repair inconsistent with State law Construction of aquariums, zoo operations, golf courses, swimming pools Restoring a “rainy day” fund

17. 17 ARRA Reporting Section 1512 Reporting Program Performance Reporting Final Expenditure Reporting Financial Information Database

18. 18 Accountability and Transparency Expect reports to be posted on websites (federal and/or state) Expect reports to be posted on websites (federal and/or state) Keep separate accounting ledgers for ARRA funds Keep separate accounting ledgers for ARRA funds Expect to be monitored Expect to be monitored Expect quarterly or more frequent reporting with quick turn around timelines Expect quarterly or more frequent reporting with quick turn around timelines

19. 19 Section 1512 Reporting Separate from program specific reporting and final expenditure reporting Quarterly reporting for each ARRA grant award Extensive guidance from Feds MDE is responsible to submit report 10 days after each quarter MDE will build majority of report from existing systems Some required information is not known MDE will use MEGS to ask for quarterly updates from districts: How many jobs were created or retained Description of type of jobs created/retained Vendor information on any vendors contracted using ARRA funds Infrastructure expenditures

20. 20 Section 1512 Report Report will be available in MEGS Level 5’s can initiate District will access single report that will include all ARRA grant awards Report separately on each grant award All recipients must submit report every quarter Continuation of funding contingent on report submission Districts required to have DUNS number entered in EEM Districts are required to register in the Central Contractor Registry (CCR) and indicate they have registered in the EEM. First Section 1512 report iteration due October 5, 2009 Report available in MEGS week of September 21

21. 21 Program Reporting Grant Specific Reporting Guidance will come from Program Offices Traditionally, this is end of grant reporting Interim reports may be required Districts will be contacted when specifics are known

22. 22 Final Expenditure Reporting FER reporting done in CMS FER reporting done in CMS Complete when funds drawn or at end of grant period whichever comes first Complete when funds drawn or at end of grant period whichever comes first Normal MEGS-CMS interaction Normal MEGS-CMS interaction Latest approved budget pulled in Latest approved budget pulled in ES grants do not have a budget ES grants do not have a budget

23. 23 Reporting Final Expenditures

24. 24 Financial Information Database (FID) ARRA grants will be included in the annual ARRA grants will be included in the annual FID Reporting requirements have not been totally resolved Reporting requirements have not been totally resolved Districts may be required to utilize the State Code dimension of the accounting structure when reporting to the 2009-10 FID Districts may be required to utilize the State Code dimension of the accounting structure when reporting to the 2009-10 FID Standard “State Codes” are available in the Michigan Public School Accounting Manual, Appendix, Pages 49-58 http://www.michigan.gov/mde/0,1607,7-140- 6530_6605-21321--,00.html Standard “State Codes” are available in the Michigan Public School Accounting Manual, Appendix, Pages 49-58 http://www.michigan.gov/mde/0,1607,7-140- 6530_6605-21321--,00.html http://www.michigan.gov/mde/0,1607,7-140- 6530_6605-21321--,00.html http://www.michigan.gov/mde/0,1607,7-140- 6530_6605-21321--,00.html

25. 25Questions? Federal Cash Draw, Accounting, and Reporting Federal Cash Draw, Accounting, and Reporting Craig Thurman 517-373-2810 Craig Thurman 517-373-2810thurmant@michigan.gov Education Stabilization Funds Education Stabilization Funds Louis Burgess 517-373-1806 mdestabilization@michigan.gov Section 1512 Reporting Section 1512 Reporting Jill Bradshaw517-373-1806 bradshawj@michigan.gov