Liquidation Extension for American Rescue Plan Homeless Children and Youth Funds

Liquidation Extension for American Rescue Plan Homeless Children and Youth Funds TONY THURMOND State Superintendent of Public Instruction August 15, 2024 Integrated Student Support and Programs Office California Department of Education

Deborah Avalos, Education Administrator I, Integrated Student Support and Programs Office, DAvalos@cde.ca.gov Karmina Barrales, Education Programs Consultant (EPC): KBarrales@cde.ca.gov Heidi Brahms, EPC: HBrahms@cde.ca.gov Jacqueline Matranga, EPC: JMatranga@cde.ca.gov Leanne Wheeler, EPC: LWheeler@cde.ca.gov Sarajean Zocklein, EPC: SZocklein@cde.ca.gov The Homeless Education Program Team 2

Elena Fong, Staff Service Manager I, Grant Administration and Programs Office: EFong@cde.ca.gov Cindy Rodriguez, Associate Governmental Program Analyst (AGPA): CiRodriguez@cde.ca.gov Jennifer Thao, AGPA: JThao@cde.ca.gov The Homeless Education Fiscal Team 3

Presentation Outline Timelines Acronyms Obligation and Liquidation Liquidation Extension Liquidation Extension Application Resources 4

Acronyms (1) American Rescue Plan Homeless Children and Youth (ARP-HCY) California Department of Education (CDE) Code of Federal Regulations (CFR) Community-Based Organization (CBO) County Office of Education (COE) Elementary and Secondary School Emergency Relief Fund (ESSER) 5

Acronyms (2) Fiscal Year (FY) Homeless Innovative Programs (HIPs) Homeless Education Technical Assistance Centers (HETACs) Local Educational Agency (LEA) State Educational Agency (SEA) U.S. Department of Education (ED) 6

Timelines (1) Obligation Deadline: September 30, 2024 Standard 120-Day Liquidation Deadline: January 28, 2025 Extended Liquidation Deadline: Up to March 28, 2026, if approved LEAs must apply to and be reviewed for extended liquidation by the CDE. Then, the CDE must apply for extended liquidation on behalf of LEAs and be approved by ED for the extended liquidation timeline to apply for LEAs that applied. 7

Timelines (2) Standard Liquidation Obligation Deadline: September 30, 2024 Liquidation Deadline: January 28, 2025 Extended Liquidation Obligation Deadline: September 30, 2024 (does not change) Liquidation Deadline: March 28, 2026 8

Timeline (3) Webinar: August 15, 2024 Application and Resources Posted: August 15, 2024 LEA Liquidation Extension Application Due to the CDE: October 30, 2024 CDE Liquidation Extension Application Due to ED: December 31, 2024 9

ARP-HCY Intentions ARP-HCY funds were intended to assist LEAs with the identification of homeless children and youth as well as the provision of comprehensive wraparound services and assistance to enable homeless children and youth to attend and participate fully in school activities. The Liquidation Extension s intention is to provide SEAs and LEAs with additional time to liquidate properly obligated funds in response to unexpected delays, not a general practice to allow more time for expenditures. 10

Keep Obligating and Liquidating (1) Spending resources: ARP-HCY Resource Guide at https://www.cde.ca.gov/sp/hs/arphcyresourceguide.asp. Three CDE PowerPoints on the ARP ESSER HCY Fund website at https://www.cde.ca.gov/sp/hs/arphcyassurances.asp. SchoolHouse Connection's How to Use ARP Funds web page is at https://schoolhouseconnection.org/how-to- use-arp-funds/. 11

Keep Obligating and Liquidating (2) SchoolHouse Connection s ARP-HCY web page at https://schoolhouseconnection.org/arp-hcy#resources. SchoolHouse Connection s Maximize Final ARP-HCY Funds: Quick Spending and Cost Guide web page at https://schoolhouseconnection.org/article/maximize-final- arp-hcy-funds-quick-spending-and-cost-guide. 12

What does it mean to obligate funds? The regulations at 34 CFR 76.707 governs when an obligation of Federal funds by a State or subgrantee such as an LEA occurs. Obligations are considered made properly at different times based on the type of good or service the obligation. 34 CFR 76.707 can be accessed at https://www.ecfr.gov/current/title- 34/subtitle-A/part-76/subpart-G/subject- group-ECFRae39e5300d1271f/section- 76.707. The next two slides provides specifics. Obligation (1) 13

Obligation (2) If the obligation is for - The obligation is made On the date on which the SEA or subgrantee makes a binding written commitment to acquire the property. a) Acquisition of real or personal property. b) Personal services by an employee of the SEA or subgrantee. c) Personal services by a contractor who is not an employee of the SEA or subgrantee. When the services are performed. On the date on which the SEA or subgrantee makes a binding written commitment to obtain the services. On the date on which the SEA or subgrantee makes a binding written commitment to obtain the work. d) Performance of work other than personal services. 14

Obligation (3) If the obligation is for - The obligation is made When the SEA or subgrantee receives the services. e) Public utility services. f) Travel. When the travel is taken. When the SEA or subgrantee uses the property. g) Rental of real or personal property. h) A pre-agreement cost that was properly approved by the Secretary under the cost principles in 2 CFR Part 200, Subpart E - Cost Principles. On the first day of the grant or subgrant performance period. 15

What does it mean to liquidate funds? The drawing down and expenditure of funds by a grantee for obligations that incurred during the grant s legal obligation period. In this case, the ARP-HCY legal obligation period is September 30, 2024. Liquidation (1) 16

Pursuant to 2 CFR 200.344(b), timely liquidation occurs during the project performance period, and Through the first 120 days after the final day of that period which is the standard ARP-HCY liquidation deadline of January 28, 2025, or An extension of the 120-day period authorized by ED and which is the extended ARP-HCY liquidation timeline to March 28, 2026. Liquidation (2) 17

Under Extension (1) Contracts: LEAs may enter into contracts (binding written commitments) with other organizations or agencies for the purchase of items or services by the obligation deadline of September 30, 2024. Contracts executed by the September 30, 2024, may include a period of performance through the liquidation deadline and services may be provided by LEAs while awaiting liquidation extension approval. 18

Under Extension (2) Contracts: Contractors may use ARP-HCY-funded contracts to pay staff through the contract s period of performance. LEAs may only use ARP-HCY funds to pay LEA staff through the September 30, 2024, obligation deadline per 34 CFR 76.707(b). 19

Under Extension (3) Contracts: An LEA or CBO may enter into a contract for short-term temporary housing that will be provided and paid for by September 30, 2024. An LEA or CBO may not enter into a contract for short- term temporary housing that will be provided and paid for after September 30, 2024. Rationale: Under 34 CFR 76.707(g), funds for the rental of real or personal property are not obligated until the property is used. 20

Under Extension (4) Licenses: Licenses and subscriptions: Provided that a contract is signed by September 30, 2024, the invoice may be paid during the liquidation period, and the license or subscription may extend beyond the liquidation period. 21

Under Extension (5) Supplies: Supplies (e.g., school and hygiene supplies, clothing, non-perishable food): Must be purchased by the obligation deadline of September 30, 2024, and may be used during the liquidation period. Supplies may be used beyond the liquidation period in limited circumstances. 22

LEA Extension (1) The LEA will be required to provide supplemental documentation to substantiate the timely obligation and the nature of the delay(s) such as: Approved Capital Expenditure Approval Form Signed contracts between LEA and CBOs Purchase orders In addition, by submitting the application, the LEA agrees to additional reporting and monitoring requirements, as applicable. 23

LEA Extension (2) The application and additional information can be accessed through the Liquidation Extension Request Application section of the ARP ESSER HCY Fund web page: https://www.cde.ca.gov/sp/hs/arphcyassurances.asp. 24

LEA Extension Application (1) The Liquidation Extension Application is in a fillable Portable Document Format (PDF) format and has two parts: Part I is the actual application Part II is the Assurances 25

LEA Extension Application (2) The Liquidation Extension Application (Part I) will require the following information: LEA Name LEA County District School (CDS) Code Primary Contact Name Title Email 26

LEA Extension Application (3) Extension for Funding Stream: ARP-HCY I ARP-HCY II HETAC HIP LEAs will need to complete an application for each program, as necessary 27

LEA Extension Application (4) Total ARP-HCY Allocation Amount Obligated as of September 30, 2024 This should reflect encumbered/obligated costs that have not yet become expenditures. Amount Liquidation as of September 30, 2024 28

LEA Extension Application (5) Amount of Obligated Funds Needing an Extension This is the amount that will not be liquidated within the standard 120-day liquidation timeline and should reflect encumbered costs that are not expected to be liquidated by January 28, 2025. 29

LEA Extension Application (6) Use of Funds Examples might include instructional or student support services contract(s), delayed materials/supplies, or for other allowable uses. All funds included in the request for extension must be properly obligated by September 30, 2024, and for allowable uses. 30

LEA Extension Application (7) Justification Provide explanation for funds that may not be liquidated by the end of the regulatory liquidation period which is January 28, 2025. This should be based on the uses of funds and how the LEA will continue to support the expedited liquidation of funds to ensure that funds are leveraged, based on an analysis of data, to maximize investments made to address academic recovery. 31

LEA Extension Application (8) Justification Needing more time to expend funds is not an adequate reason or justification for a liquidation extension. Justifications might include delays related to supply or labor shortages, contract timelines, staff turnover, etc. 32

LEA Extension Application (9) Optional: Other Subgrantee-Specific Data Notes This allows the LEA to add any additional information including regarding data outliers or other associated/applicable information. 33

The Liquidation Extension Application Assurances (Part II) The LEA must agree to all application assurances for the application to be accepted. Assurances are provided by selecting each check box and including the signature of the LEA s superintendent or other representative with appropriate authority. Assurances are part of the PDF Liquidation Extension Application Assurances 34

LEAs must submit documentation that supports a timely obligation occurred. This may include purchase orders, contracts to demonstrate obligation, change orders, or others. LEAs must submit documentation that supports the exceptional delays that resulted in a need for this request. This may include communications from vendors regarding delays, revised shipping information, or others. Required Supplemental Documentation (1) 35

If the request is for a capital expenditure, the LEA is required to include evidence of the prior the CDE approval. This may include the original application and approval email. If your LEA is going to purchase an item over the $5,000.00, a Capital Expenditure Pre-Approval Application form, including the invoice or estimate, will need to be completed, signed, and emailed to Lwheeler@cde.ca.gov. You can access this application form at https://www.cde.ca.gov/fg/cr/documents/fe dfundscapitalexp.pdf. Required Supplemental Documentation (2) 36

Extension Application Submission The completed application must be submitted with applicable required supplemental documentation via email to HERFA@cde.ca.gov with the subject line: Liquidation Extension Application (name of your LEA) (funding stream) Funding Streams: ARP-HCY I, ARP-HCY II, HETAC or HIP Please anticipate 2-3 weeks for initial application review by the CDE. 37

CDE Extension (1) The CDE is required to collect the liquidation extension information noted on the SEA template on behalf of themselves and their LEAs. The CDE will then verify that the LEA s obligation information is timely and valid. The CDE will have to submit one comprehensive Excel document to represent an extension at the LEAs with a single date for the extension. 38

CDE Extension (2) ED has indicated that their review and approval may take 3-4 weeks and depends on completeness and accuracy of submitted information. 39

The Office of Elementary and Secondary Education has a web page that provides liquidation extension materials at https://oese.ed.gov/offices/american- rescue-plan/american-rescue-plan- elementary-secondary-school-emergency- relief-homeless-children-youth-arp- hcy/fiscal-information/. ARP ESSER HCY Fund website at https://www.cde.ca.gov/sp/hs/arphcyassura nces.asp. HETAC ARP-HCY web page at https://www.hetac.org/statutes/federal/arp. Resources (1) 40

National Center for Homeless Educations (NCHE) ARP-HCY web page is at https://nche.ed.gov/legislation/arp/. NCHE is the technical assistance center for ED. CDE Homeless Education Program general email is at HomelessED@cde.ca.gov. Resources (2) 41

We are hosting ARP-HCY Office Hours every Tuesday from 8 to 10 a.m. The sign-ups will be on a first come, first serve basis and are set up for 20-minute increments. If you need more, then sign up for two increments. Please email us at the CDE Homeless Education Program general email at HomelessED@cde.ca.gov for the sign-up link. ARP-HCY Office Hours 42

Thank you! 43