STATE FISCAL STABILIZATION FUND

2011 Updates

February 1, 2011

Welcome

During this webinar, we will share lessons learned during our 34 monitoring reviews and provide useful information to assist you in implementing the program in the coming year

References:• Applicant Information:

http://www2.ed.gov/programs/statestabilization/applicant.html

• Approved Phase 1and 2 applications: http://www2.ed.gov/programs/statestabilization/resources.html

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Agenda

I. Best practices and tipsA. State administrationB. Cash management and interestC. Separate tracking of fundsD. 1511 certifications

II. SFSF updates from the Department

III. Next steps and Q&A

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Best practices and tips4

Best practices: State administration

We have seen three key practices in States that have managed the use of SFSF funds well: Transparency Standardization Communication and coordination

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Cash management: collecting interest Grantees may use a reimbursement or cash

advance method for disbursing funds Grantees and sub-recipients must return any

interest earned on cash advances of grant funds in excess of $100 (LEAs/State agencies) or $250 (IHEs) each year to the Department (Parts 74 and 80 of EDGAR)

Recipients must have an interest policy in place and must remit interest promptly (at least quarterly) to:

U.S. Department of EducationP.O. Box 979053

St. Louis, MO 63197-9000

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Separate Tracking of Funds“Gold Standard”

Leading Practice1.Created unique SFSF fund code2.Recorded SFSF receipts into revenue account code within SFSF fund code3.For the first SFSF payment receipt, recoded prior allowable costs into expenditure account codes within SFSF fund code4.In order to track specific SFSF expenditures for reimbursement with SFSF revenues, recorded future allowable costs into expenditure account codes within SFSF fund code

States that were able to invest in a centralized accounting structure were generally able to establish a unique fund code for SFSF revenues and SFSF expenditures that were utilized by all LEAs

States that did not have a centralized accounting structure were also successful when they were able to communicate and monitor a uniform methodology

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Unique SFSF Fund Code 25250

Revenue Account 443010

Expenditure Account 511000

Example- LEA #1 8

1511 certification tips

Required - Title XV

1511 certifications for subrecipients using SFSF for infrastructure should be

Posted on State website Provided to the Department during monitoring

No standard form See examples at:

http://www2.ed.gov/programs/statestabilization/resources.html

Allowable uses: Sec. 14002, 14003 and 14004 of Title XIV

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Differences between LEA and IHE 1511 certifications Local education agencies (LEAs) may use SFSF funds

for new construction; they also have fewer restrictions in terms of facility use

Institutions of higher education (IHEs) may use SFSF funds for “facilities that are primarily used for instruction, research, or student housing”

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Questions?11

SFSF updates from the Department

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FY ’11 updates

Amendments to both the Phase 1 and 2 application for FY 2011 is can be made through a streamlined SFSF Amended Application. States will be able to update all their SFSF date on one application.

Posted on Applicant webpage (see Slide 2) All States should submit amendments to

their SFSF application by March 1, 2011 (in a manner compliant to section 508 of the Rehabilitation Act) and email it to StabilizationFundApplication@ed.gov

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Maintenance of Effort (MOE)

After updating MOE data in SFSF Amended Application, States must consider whether a FY 2010 MOE waiver is necessary.

For FY2010 waivers, submit final data or data that is unlikely to be revised.

For those who have submitted waivers, the Departments is currently processing FY 2010 waivers.

For FY 2011 waivers, the Department will not consider waivers until after the conclusion of the fiscal year for which the waiver is sought.

All States must meet the MOE requirements or waiver criteria for FY 2009, FY 2010 and FY 2011.

Guidance and waiver request form available on Applicant webpage (see Slide 2).

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Example (FY06 MOE IHE) 1) Obtain reported

amount on most recent application (Most recent SFSF Application)

2) Obtain summary table of expenditures

(Attachment 1 on most recent SFSF Application)

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3) Corroborate line items on summary table to supporting documentation (General Fund Statement of Appropriations and Expenditures)

Example(FY06 MOE IHE)

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Example(FY06 MOE LEA) 1) Obtain reported

amount on most recent application (Most recent SFSF Application)

2) Obtain summary table of revenues

(Appendix on most recent SFSF Application)

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3) Corroborate line items on summary table to supporting documentation (Senate Bill 05-209 Appropriation)

Example(FY06 MOE LEA)

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Contractor support

Each State will be assigned a lead contact at the Department, who will conduct the monitoring review with support from Westat and Deloitte & Touche

The Department has contracted with Westat to assist with State Fiscal Stabilization Fund monitoring reviews 

To assist with the fiscal oversight and accountability review, Westat subcontracted with Deloitte & Touche LLP

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Monitoring feedback process

Share cross-cutting issues with other Department

programs

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Next steps and Q&A21

Next steps

Update contact lists for SFSF, Ed Jobs, and 1512 as needed

Submit the Amended application form Submit MOE waivers if required

Upcoming webinars: Annual Performance Report (APR) “SFSF 101” for new State staff

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Questions?23