agenda executive committee meeting - charter selpa · 2019. 2. 26. · executive committee meeting...

AGENDA – EXECUTIVE COMMITTEE MEETING

Charter SELPA: David M. Toston, Associate Superintendent Ginese Quann, Charter SELPA Director Robert Steponovich, SELPA Business Services Director

Vicki L. Barber, Retired EDCOE Supt. of Schools Francie Heim, EDCOE/Charter SELPA Consultant Kathleen Hall, Administrative Assistant

Executive Committee Members: Mary Searcy Bixby, Altus Schools Lynne Alipio, Altus Schools Gia Truong, Envision Schools Paula DeGroat, Lifeline Education Cindy Petersen, Gateway Community Charters Paul Keefer, Pacific Charter Institute Pat Hill, Learn4Life Josh Drake, Rocketship Education David Sciaretta, Einstein Academies Julie Mattoon, KIPP Bay Area Schools Tim Wolf, King-Chavez Charter Schools Melissa Mora, ACE Charter School Debi Gooding, The Learning Center Karin Marsolais, Preuss School UCSD Jean Hatch, Redding School of the Arts Dawn Evenson, iLead Schools Jonathan Dean, The O’Farrell Charter School DiAnne McClenahan, The Bay Group J.J. Lewis, Compass Charter Schools Patricia Dougherty, Phoenix Charter Academy

1. Educationally Related Mental Health Services (ERMHS) Budget Update

CEO Executive Committee will be updated at regular intervals on the 2017-18 ERMHS budget

to assure a transparent and predictable level of funding for Charter SELPA Partners. Please

see Attachment 1, entitled “Year End ERMHS Report”, for this update.

2. Fiscal Report

CEO Executive Committee will be updated on fiscal results for the 2016-17 year. Please see

Attachment 2, entitled “2016-17 End of Year/Budget Update” for this fiscal update.

3. Participation Agreement

The SELPA recommends revising the Participation Agreement to include shared values,

conduct, responsibilities of, and proper practices for partners within the Charter SELPA.

Information and recommendations regarding the proposed revisions are included in

Attachments 3 and 3a.

4. Charter School Closure and At-risk of Closure Policy RevisionCharter SELPA recommends revising the current policy to include added authority to request

EL DORADO CHARTER SELPA Thursday, September 21, 2017

Meeting to be held via Adobe Connect on Thursday, September 21, 2017 at 10:00 a.m.

Registration for the Adobe Connect teleconference will be available at least two days prior to the meeting and the link will be sent out electronically.

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El Dorado Charter SELPA Executive Committee Meeting September 21, 2017 Agenda Page -2-

documentation when an LEA is closing. Additionally, the SELPA recommends requiring a release of claims to SELPA Risk Pools effective the date of the LEA closure or the termination of membership. Information and recommendations regarding the revised policy are included in Attachments 4 and 4a.

5. SELPA Leadership Report

6. Next Meeting DateThe next regularly scheduled meeting of the Charter SELPA Executive Committee will takeplace Thursday, January 18, 2018 at 10:00 a.m. via Adobe Connect teleconferencing.

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EXECUTIVE COMMITTEE MEETING – SEPTEMBER 21, 2017

YEAR END ERMHS REPORT ATTACHMENT 1

El Dorado County Charter SELPA/ Year End ERMS Report Page 1 of 3

BACKGROUND Per the Allocation Plan, by September 15th of each year, the:

Charter SELPA administration will make a finding of sufficiency of Level 2 funding based on the following variables:

Prior year ERMHS ending balance

Projected current year ADA

Projected current year Level 3 projected costs

Projected current year Level 2 service counts

Based on this finding of sufficiency:

The per mental health service reimbursement amount for Level 2 will be established between $2,000and $3,000; or

A higher amount if the prior year ending balance is sufficient to assure SELPA members of predictablefunding with no shortfalls.

And, if there is an adequate finding of sufficiency of funding:

$100K will be available for Level 2 transportation – outside of the service cap/ADA formula; and/or

Indirect costs will be allowed for Level 2.

ANALYSIS AND ASSUMPTIONS 1) 2016-17 Ending Balance EstimateThe Allocation Plan directs administration to manage annual ERMHS funding decisions toward a goal ofmaintaining an ending balance (reserve) in the 5% to 10% of revenue range. The 2016-17 ERMHS ending balanceis $2.7M or 27% (lines 13 & 14 of chart below). This is $1.7M above the upper reserve target of 10%. The endingbalance was higher primarily because final Level 3 reimbursement requests were significantly below estimates,which were based on budget requests submitted by partners.

2) 2017-18 Projected ADAThe overall SELPA ADA is expected to increase to 155,616 ADA in 2017-18. Along with the 1.56% COLA includedin the approved state budget, projected state ERMHS funding is $9.52M (line 1). Based on PY enrollment of148,493, federal ERMHS revenue is projected to be $1.65M (line 2).

3) 2017-18 Projected Level 3 CostsReferencing lines 6 through 9:

Based on submitted budgets, 2016-17 Level 3 costs were projected to be $3.3M, more than double prioryear Level 3 costs.

Reported final expenditures for 2016-17 were $2.5M, 24% lower than submitted budgets, but still a 62%increase over prior year.

The 2017-18 Level 3 budget is projected to be $3.5M, a 40% increase over 2016-17 actuals. Should thecosts not materialize, any budget excess could be used for Level 2 reimbursements.

4) 2017-18 Projected Level 2 ERMHS Service CountsThe major indicator of Level 2 costs is the ERMHS service counts. Trend data shows that from September toDecember (the official count date), eligible Level 2 counts rose 19%. The September 2017 count is 4,309.Considering the prior year growth rate, the December 2017 Level 2 service count is projected to be 5,000.

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5) 2017-18 Projected Level 2 Budget RequestsBased on the December 1st SEIS service count, approximately $1,700 per eligible service was spent in 2015-16. In2016-17, the average amount spent per service dropped to $1,650. For 2017-18 budgeting, a per-service cost of$1,700 is assumed.

6) 2017-18 Projected Level 2 ExpendituresMultiplying the 5,000 service count projection (#4 above) by the assumed $1,700 per-service cost (#5 above)equates to a budget of $8.5M for Level 2 expenditures (line 4).

FINDING OF SUFFICIENCY Based on the forgoing analysis, SELPA leadership makes a finding of sufficiency of funding for 2017-18 to support the following budget decisions:

The maximum Level 2 per service rate is established at $3,300.

$100K will be available for Level 2 transportation reimbursement – outside of the Level 2 servicecap/ADA formula. The intent is to provide 80% funding for eligible costs. If $100K is not sufficient,funding will be pro-rated based on claims submitted at year end.

Indirect costs will be allowed for Level 2.

Before May 2018, SELPA leadership will make a finding as to the ability to fund beyond the 80% and 90% parameters established in the Allocation Plan. The significant variables impacting this finding are the January 2018 Level 2 budget requests submitted and the Level 3 NPS budget requests submitted throughout the year.

Charter SELPA ERMHS 2015-16 Final

2016-17 Projected

(March CEO Exec)

@ 90%

2016-17 Final 2017-18 Projected

(Sept 17)

1 State 7,295,390 8,592,000 8,549,247 9,517,370

2 Federal 1,196,061 1,391,000 1,390,903 1,647,005

3 Total Income 8,491,451 9,983,000 9,940,150 11,164,375

4 Level 2 5,356,467 7,574,000 7,012,011 8,500,000

5 Level 2 Transportation 40,000 45,815 100,000

6 Level 3 Therapeutic 37,245 360,000 334,568 465,000

7 Level 3 NPS 971,774 1,449,000 1,267,874 1,775,000

8 Level 3 Residential 541,788 1,430,000 906,222 1,270,000

9 SELPA indirect 254,744 300,000 287,000 365,000

10 Total Expenditures 7,162,018 11,153,000 9,853,486 12,475,000

11 Income less Expenditures 1,329,433 (1,170,000) 86,664 (1,310,625)

12 Beginning Balance 1,259,373 2,588,806 2,588,806 2,675,470

13 Ending Balance 2,588,806 1,418,806 2,675,470 1,364,846

14 Reserve % of Revenue 30.5% 14.2% 26.9% 12.2%

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SUMMARY Per the Allocation Plan and based on SELPA leadership’s September finding of sufficiency of funding, below is a summary of 2017-18 ERMHS funding parameters for charter members based on the above:

The Level 2 formula provides 80% of the lesser of: a) $3,300 per eligible ERMHS SEIS count based on the December 1 count; orb) January 2017 Budget request (updated with final expenditures July 2017); orc) $250 per current year P-2 ADA

The lowest of the three calculated amounts above becomes the maximum Level 2 budget request.

$100K is allocated for Level 2 transportation, and indirect costs for Level 2 are allowed.

Level 3 Site Based Structured Therapeutic Program (80% funded) Costs that may be claimed are restricted to services that are required to be performed by certificated staff. Staff may be contracted through an NPA or hired by the charter. Books and supplies may be claimed. Eligible students

must meet ED eligibility criteria, and be identified in SEIS with ED as primary or secondary disability. A budget

request for Level 3 site based structured therapeutic program reimbursement must be filed with the Charter SELPA by November 1.

Level 3 NPS ERMHS (90% funded) Costs that may be claimed are the ERMHS for a student in an NPS placement. The educational costs are the responsibility of the charter member and are not reimbursed. The educational costs, however, must be reported and must be, at a minimum, equal to the charter’s LCFF per ADA funding amount. Eligible students must meet ED eligibility criteria, and be identified in SEIS with ED as primary or secondary disability.

Level 3 NPS Residential Room and Board (100% funded) All criterion and reimbursement parameters applicable to non-residential placements listed above apply. Additional costs that may be claimed are the residential room and board costs related to a student in an NPS placement.

REVISED LEVEL 3 REPORTING As noted above, the rising costs of Level 3 placements is a particular focus area in managing the overall ERMHS budget. Funding guidelines for NPS and NPS residential placements have been amended to provide for more frequent expenditure reporting and cash flow distributions in 2017-18. This will increase the frequency of revenue cash flow for partners and allow the SELPA to track these highly variable costs more closely.

RECOMMENDATION - NONE

This report is provided for information only. An ERMHS budget update will be presented at the October CEO Council meeting.

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2016-17 END OF YEAR/BUDGET UPDATE ATTACHMENT 2

El Dorado Charter SELPA End of Year/Budget Update Page 1 of 4

BACKGROUND Executive Committee is to be updated on results for the 2016-17 year. This update covers the following information items:

Funding Rates & Rate Smoothing Pool

Set-Aside Risk Pool

Legal Risk Pool

Low Incidence Pool

Maintenance of Effort

Unspent Funds

FUNDING RATES & RATE SMOOTHING POOL (TABLE 1) 2015-16 As anticipated, additional 2015-16 deficit restoral dollars ($626K) were received in 2016-17 and credited to the pool per the Allocation Plan (line 2). This more than replenished the $251K in pool funds used to guarantee the 2015-16 state funding rate of $505/ADA (line 6). 2016-17 At the time of the May 2017 CEO Council meeting, the expectation was that the 2016-17 deficit would be 2.7% as of June 2017 (equating to a rate of $503/ADA), and would decrease to 2.0% in February 2018 (equating to a rate of $507/ADA). Based on these expectations, CEO Council approved using $554K from the pool (line 6) to provide a final 2016-17 state funding rate to members of $507/ADA. The deficit as of June 2017 is 2.71%. It is still anticipated that the final deficit will be restored to 2% and those funds will be replenished (line 2).

2017-18

The Governor’s enacted 2017-18 budget includes a 1.56% COLA. The 2017-18 state funding rate was established at $514/ADA, based the assumption of a 2.0% final deficit for 2017-18. In May, the CEO Council approved using $600K to guarantee the $514 rate (line 6), with the anticipation those dollars will be restored in February 2019.

Estimated state funding of $514/current year P-2 ADA (before admin fee and set-aside contribution for new charters) to be verified January 2018.

Estimated federal funding $125/prior year enrollment (before admin fee) to be updated January 2018.

Table 1

Charter SELPA Rate Smoothing Pool 2015-16 2016-17 2017-18

1 Prior Prior Year Deficit Restoration

2 Prior Year Deficit Restoration 1,156,737 625,917 564,000

3 Total Revenue 1,156,737 625,917 564,000

4 Prior Prior Year Rate Guarantee 1,210

5 Prior Year Rate Guarantee

6 Current Year Rate Guarantee 250,638 554,458 600,000

7 Total Expenditures 250,638 555,668 600,000

8 Income less Expenditures 906,099 70,249 (36,000)

9 Beginning Balance - 906,099 976,348

10 Ending Balance 906,099 976,348 940,348

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SET-ASIDE RISK POOL (TABLE 2) 2016-17 Beginning in 2016-17, a new Shared Risk Set-Aside Pool was established by CEO Council action, requiring:

One-time contribution of $2.50 per PY ADA for 2016-17 members continuing from the prior year (line 2);

One-time contribution of $5.00 per CY ADA for new charters starting in 2016-17 (line 3); and

One-time contribution of $200K from the Legal Risk Pool (line 5).

The set-aside balance calculations under the old rules were performed as of 2015-16 year end and the member-owned Set-Aside Risk Pool was closed. The final set-aside amounts, less the $2.50 per ADA contribution to the new pool, were returned in October 2016 to current members with any interest earned. Any set-aside balances from charters closing/leaving the SELPA and not vested were transferred to the Legal Risk Pool.

The pool was charged with $153 (line 6) to account for revenue distributed to two different schools before the schools closed without prior notice. It was subsequently determined the schools needed to return the revenue. To date the revenue has not been recovered.

2017-18 Based ADA projections for approved new members, $74,530 in revenue to the pool is anticipated for 2017-18 (line 5).

Table 2

Charter SELPA Set Aside Risk Pool 2015-16

2016-17 Close

Old Pool

2016-17

New Pool 2017-18

1 Contribution from Charters 227,255 271,521

2 Contribution from New Charters 92,844 74,530

3 Interest 11,622

4 One Time transfer from Legal Risk 200,000

5 Total Revenue 238,877 - 564,365 74,530

6 Unrecoverable Revenues from Closed Schools 153

7 Return to charters 4,718 1,053,909

8 Interest return to charters 2,235 52,942

9 Interest transfer to Legal Risk Pool 962 1,913

10 Transfer to Legal Risk Pool 52,716

11 Total Expenditures 7,915 1,161,480 153 -

12 Income less Expenditures 230,962 (1,161,480) 564,212 74,530

13 Beginning Balance 930,518 1,161,480 - 564,212

14 Ending Balance 1,161,480 - 564,212 638,742

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LEGAL RISK POOL (TABLE 3) SELPA partners may make claims against the Legal Risk Pool to reimburse legal costs arising from a due process filing. CEO Council took the following actions in May 2017 regarding claims on the Legal Risk Pool and applied them retroactively to 2016-17:

Increase reimbursement percentage from 50% to 60%.

Increase maximum claim amount from $20K to $30K.

$18K maximum reimbursement for legal costs (60% of $30K maximum) associated with a dueprocess filing.

Per the Allocation Plan, funding for the Legal Risk Pool comes from three sources: 1. Set-aside funds from charter partners who leave the SELPA before completion of four years. Note that

2016-17 is the last year for this revenue source due to the changes to the Set-Aside Pool made by theCEO Council in May 2016 (see above).

2. Unspent revenue from charter partners who are placed on reimbursement funding as a result of greaterthan 25% unspent funds in the previous year.

3. Modified funding from charter partners who close operations and fail to submit documentation thatwould allow for release of funds being held.

2016-17 Total revenue from all three sources was $1.1M in 2016-17 (line 5). The primary driver of this increase in pool revenue compared to prior years was $851K of revenue that was not justified with expenditure reports. This revenue was either recovered from closed schools or placed on hold and not distributed to schools that were identified as high risk and subsequently closed (line 2). Twelve claims against the pool were paid for a total of $85K (line 6), which was nearly double the previous year award amount. Note that the increase claim reimbursement rules approved by CEO Council were applied retroactively to 2016-17. The $200K contribution to the new Set-Aside Risk Pool is shown on line 7.

2017-18 $100K is currently budgeted for revenue and expenditures for 2017-18. Given the uncertainty of the direction of the state budget in 2018-19, no action is recommended at this time.

Table 3

Charter SELPA Legal Risk Pool 2015-16 2016-17 2017-18

1 Transfer from Modified Funding (Unspent) 145,392 167,776 100,000

2 Transfer from Closed Charters (30,406) 850,872

3 Transfer from Set Aside - Closed Charters 6,426 52,716 -

4 Transfer from Set Aside-Interest 962 1,913 -

5 Total Revenue 122,374 1,073,277 100,000

6 Total Awards 44,121 85,544 100,000

7 Contribution to New Set Aside 200,000 -

8 Total Expenditures 44,121 285,544 100,000

9 Income Less Expenditures 78,253 787,733 -

10 Beginning Balance 279,244 357,497 1,145,230

11 Ending Balance 357,497 1,145,230 1,145,230

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LOW INCIDENCE POOL (TABLE 4) 2016-17 $118K of revenue was received, which is $433 for each pupil with a low incidence disability on December 1st of the prior year (line 1). Going into 2016-17, a minimum reimbursement rate was established at $433/claim. Based on timely claims filed with sufficient documentation, final reimbursement to charters was established at up to $1,500/claim. We received a total of 90 claims that would have used up the entire pool balance. However, only 81 claims were approved and paid totaling $109K (line 4), and two approved claims are awaiting final documentation (line 5). This resulted in a small carryover balance of $5.8K (line 7).

2017-18 Funding for 2017-18 again starts at $433 per eligible claim and will be increased based on the final determination of claims submitted for the year. The budget reflects the intent to pay annual revenue received in addition to the small prior year carryover.

Table 4

Charter SELPA Low Incidence 2015-16 2016-17 2017-18

1 Income 97,381$ 118,035$ 119,900$

2 Other Sources 31,810$

3 Total Revenue 129,191$ 118,035$ 119,900$

4 Expenditures 112,933$ 109,232$ 141,739$

5 Pending Claims 3,000$

6 Total Expenditures 112,933$ 112,232$ 141,739$

7 Income less Expenditures 16,258$ 5,803$ (21,839)$

8 Beg Balance (221)$ 16,036$ 21,839$

9 Ending Balance 16,036$ 21,839$ 0$

MAINTENANCE OF EFFORT (MOE) MOE is a federal grant compliance requirement. In order for an LEA to continue to receive federal IDEA funds, each LEA must maintain the level of state/local expenditures from year to year. The annual process is driven by submission of expenditure data by charters. We are in the process of reviewing 2016-17 year end expenditure data to compile the required MOE reports and analyze overall SpEd expenditures.

UNSPENT FUNDS/FUNDING MODIFICATION As mentioned above, expenditure data from partners is currently being analyzed. However, based on the data submitted thus far, 15 charters had unspent funds in 2016-17. Only two of the 15 had unspent funds greater than 25%. Under revised policy adopted by the CEO Council in May 2017, charters with >25% unspent funds will be placed on reimbursement funding in 2017-18, and will not be eligible for federal funds.

RECOMMENDATION - NONE

This report is provided for information only. An end of year/budget update will be presented at the October CEO Council meeting.

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EXECUTIVE COMMITTEE MEETING – SEPTEMBER 21, 2017 ATTACHMENT 3

CHARTER SELPA PARTICIPATION AGREEMENT REVISION

El Dorado Charter SELPA / Charter SELPA Participation Agreement Revision Page 1 of 1

ISSUE

CEO Council is asked to take action to revise the Charter SELPA Participation Agreement to include statements of organizational values and standards in addition to the responsibilities and practices for Charter SELPA partners.

BACKGROUND

The Participation Agreement should be revised to express the overarching principles and expectations that guide our collective decisions and actions as partners in the Charter SELPA. The principles and expectations outlined articulate the expectations, roles and responsibilities for all parties to the agreement.

The primary goal is to maintain the integrity and protect the reputation of our organization in order to continue to meet the needs of the stakeholders we serve. The Participation Agreement is intended to provide standards that can be applied by all members of the Charter SELPA. Members who do not to meet these shared expectations, through direct actions or lack of actions that demonstrate egregious disregard or systemic noncompliance to the federal, state and SELPA requirements, could be subject to termination of SELPA membership.

Additionally, the Participation Agreement also serves as our public commitment to high ethical standards and practices. The expectations of this agreement will be the foundation of our application, orientation and induction processes for schools interested in joining the Charter SELPA.

Each charter member is required to sign the Participation Agreement, and have it ratified by their governing board, at the time of entry to the Charter SELPA. Since this is a material revision to the document, all members will need to re-sign the revised Participation Agreement and have it ratified by their governing board.

RECOMMENDATION

CEO Council action is requested to revise Charter SELPA Participation Agreement to include statements of

organizational values and standards as set forth in the Attachment 3a.

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Attachment 3a

AGREEMENT FOR PARTICIPATION

EL DORADO CHARTER SELPA

This Agreement for Participation (“Agreement”) is entered into by and between the El Dorado Charter SELPA (“SELPA”), the El Dorado County Office of Education (“EDCOE”), and __________________ (“LEA”), a California public charter school, collectively referred to as the “Parties.”

RECITALS WHEREAS, each special educational local plan area is required to administer local plans submitted pursuant to Education Code section 56205 et seq., administer the allocation of funds pursuant to Education Code section 56836 et seq., and ensure that it has in effect policies, procedures, and programs that are consistent with state laws, regulations, and policies governing certain aspects of special education;

WHEREAS, a charter school that is deemed a local educational agency for purposes of special education is required to participate in an approved local plan pursuant to Education Code section 56195.1(f);

WHEREAS, LEA is a charter school that is deemed a local educational agency for purposes of special education pursuant to Education Code section 47641 and is responsible for complying with all provisions of the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) and implementing regulations as they relate to local educational agencies;

WHEREAS, the SELPA as authorized by the California State Board of Education serves as the special educational local plan area for California charter schools deemed local educational agencies pursuant to Education Code section 47641 that have successfully completed the SELPA membership process and have signed this Agreement for Participation (“Agreement”);

WHEREAS, EDCOE is designated in the local plan as the “responsible local agency” for the SELPA, which means the administrative entity, the duties of which shall include, but are not limited to, receiving and distributing state and federal special education funds pursuant to the allocation plan, providing administrative support, and coordinating implementation of the plan;

WHEREAS, the actions and decisions of the parties are guided by the values of:

1. Commitment – maintaining high standards for performance in student achievement,operations, governance and finance;

2. Integrity – adherence to moral and ethical principles in all aspects of the work;3. Fairness – impartial and just treatment of all stakeholders;4. Partnership – collaborative decision making and accountability;5. Knowledge – understanding of charter school law and practice; and6. Transparency- access to the information, decisions, and actions of the organization;

WHEREAS, the purpose of this agreement is to set forth the various responsibilities of LEA, EDCOE, and SELPA to ensure that all charter pupils with exceptional needs within the SELPA receive appropriate special education programs.

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2

Attachment 3a

NOW, THEREFORE, IT IS HEREBY AGREED between the parties hereto as follows:

1. SHARED COMMITMENTS1.1. Resource Allocation. Parties shall demonstrate commitment to the promises set

forth in this Agreement by allocating appropriate resources.

1.2. Standard of Conduct. Parties, at all times, shall conduct themselves in such a manner as to act in the best interests of all other SELPA members. LEA shall not engage in any activity or enterprise which would tend to injure or expose the SELPA or any of its members to any significant risk of harm or injury of any kind.

1.3. Compliance. All parties to this agreement shall identify and comply with applicable laws, regulations, policies, procedures and generally accepted standards. Each party will address any identified compliance gaps in a responsible and timely fashion.

1.4. Continual Improvement. Parties are expected to continually improve by setting performance objectives, executing plans and taking necessary corrective actions for deficiencies identified by any and all internal and/or external assessments.

1.5. Accuracy of Business Records. Parties shall ensure that any and all financial books and records conform to generally accepted accounting principles and state reporting requirements. Records must be accurate in all material respects. Records must be legible, transparent, and reflect actual transactions and payments and be open to inspection by the other party upon a reasonable request.

1.6. Accuracy of Student Records. Parties shall ensure that any and all student records conform to prescribed formats. Records must be legible, transparent, reflect actual transactions and payments, and be accurate in all material respects. Records must be open to inspection and review by other parties with legitimate educational interest upon a request.

1.7. Documentation. Parties shall maintain documentation necessary to demonstrate compliance with this Agreement and compliance with applicable state and federal statutes and regulations.

1.8. Local and Allocation Plans. Parties agree to the provisions of the Local and Allocation Plans as updated and approved by the CEO Council.

1.9. Provision of Free and Appropriate Public Education. The LEA is solely responsible for the provision of special education programs and services to eligible students enrolled in the LEA. The Parties understand and agree that the SELPA or EDCOE shall have no responsibility for the operation of any direct educational program service of any kind, that the SELPA has no duty or authority to provide FAPE to individual students, and that the SELPA has no duty or authority to make decisions regarding the educational programming of students enrolled in the LEA.

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Attachment 3a

2. LEA RESPONSIBILITIES2.1 Programs and Services. The LEA is solely and exclusive responsible for the

following mandated activities in order to operate its special education programs and services for students enrolled in the LEA. As such, the LEA shall:

2.1.1. Select, employ, compensate, and determine the duties of, or establish appropriate contracts for the provision of, special education teachers, instructional aides, and other personnel as required to conduct the program specified in the Local Plan, and in compliance with state and federal mandates.

2.1.2. Conduct and/or contract those programs operated by the LEA in conformance with the Local Plan and the state and federal mandates.

2.1.3. Organize and administer the activities of the IEP teams, including the selection of the LEA staff and who will serve as members of the IEP team in conformance with Education Code Section 56341 and in compliance with the Local Plan.

2.1.4. Provide facilities as required to house the programs operated by the LEA.

2.1.5. Provide for the acquisition and distribution of the supplies and equipment for the programs operated by the LEA.

2.1.6. Provide and/or arrange for such transportation services as may be required in accordance with a student’s IEP.

2.1.7. Develop and implement program objectives and the evaluation of the program effectiveness.

2.1.8. Communicating with the parents and/or legal guardians of students in conformance with laws, regulations and the provisions of the Local Plan.

2.1.9. Provide for the documentation and reporting of assessment procedures used for the placement of individuals and the security thereof.

2.1.10. Provide for the continuous review of placements and the assessment procedures employed to insure their effectiveness and applicability, and insure the continued implementation and compliance with eligibility criteria.

2.1.11. Provide for the integration of students with disabilities into the general education school programs and provide for evaluating the results of such integration according to specifications of the Local Plan.

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4

Attachment 3a

2.1.12. Conduct the review of individual placements requested by the parents and/or legal guardians of the student in accordance with the Local Plan.

2.1.13. Prepare and submit all required reports, including reports on student enrollment, program expenditures, and program evaluation.

2.2. Fiscal Responsibilities. Receive and expend special education funding in accordance with the Charter SELPA Allocation Plan.

2.3. Restricted Funds. As a condition of membership and participation in the SELPA, LEA warrants and represents that at no time during the term of this Agreement and LEA’s membership and participation in the SELPA shall the LEA, directly or indirectly, provide special education funding for the benefit of a for-profit entity. All funding provided through the Charter SELPA shall be treated as a restricted funding source to be expended only for special education or special education services. Nothing contained herein shall be interpreted as prohibiting any LEA from expending funds to contract with a state-certified nonpublic agency/school for the benefit of children served, in accordance with the approved master contract and individual services agreements as provided for in federal and state law.

2.4. Audit Report. Annually provide the SELPA with the LEA’s annual, independent financial audit report, on or before December 20th each year, unless an extension has been granted by the State Controller’s Office, in which case an extension will be granted to the charter as well. LEA further agrees to provide SELPA copies of any and all State Controller’s Office communications regarding audit report corrective actions and a corrected audit report, if applicable. Should an LEA be the subject of an investigation by any federal, state, or local agency, including but not limited to the Fiscal Crisis Management and Assistance Team (“FCMAT”) arising out of or related to allegations of fiscal mismanagement, failure to meet generally accepted accounting principles, or any violation of a provision of law, the LEA shall immediately notify SELPA and provide the SELPA with a copy of any written correspondence related thereto.

2.5. Membership Responsibilities. Adhere to governance structure within SELPA Local Plan and Policies including designating appropriate representatives to serve on required councils and committees; ensure appropriate LEA representatives attend and participate in SELPA governance meetings as set forth in the Local Plan, Policies and Procedures.

2.6. Management Decisions. Consistent with this Agreement, LEA shall have full and exclusive authority and responsibility for classifying employment positions within their LEA. The managerial prerogatives of any participating LEA member shall not be infringed upon by any other participating LEA member except upon mutual consent of an affected LEA member(s), or unless as otherwise set forth. LEA shall not undertake to independently act on behalf of the SELPA or any of its members without express written authorization of the SELPA.

2.7. Participation. Ensure appropriate LEA representatives attend and participate in

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Attachment 3a

SELPA governance meetings and committees as set forth in the Local Plan, Policies and Procedures.

2.8. Reporting Requirements. Submit all required federal, state and SELPA reports

and data requests in the prescribed format and at the specified due date. Upon

written request by the SELPA, LEA shall provide any requested information,

documents, writings, or information of any sort without delay, except as otherwise

prohibited by law.

2.9. Indemnification and Hold Harmless. To the fullest extent allowed by law, LEA agrees to defend, indemnify, and hold harmless the SELPA and its individual other members, EDCOE, the El Dorado County Superintendent of Schools, and each of their respective directors, officers, agents, employees, and volunteers (the Indemnified Parties), from any claim or demand, damages, losses or expenses (including, without limitation, reasonable attorney fees) that arise in any manner from an actual or alleged failure by LEA to fulfill one or more of the LEA member’s obligations except to the extent that such suit arises from the SELPA, EDCOE, or the El Dorado County Superintendent of Schools’ negligence.

3. SELPA DUTIES AND RESPONSIBILITIES3.1 Services. In order to accomplish the goals set forth in the Local Plan, SELPA shall

provide the following services and activities for the LEA:

3.1.1. Receive, compile, and submit required enrollment reports and compute all special education apportionments; receive data from LEA to compile and submit budgets for the programs and monitor the fiscal aspects of the program conducted, and receive the special education apportionments as authorized by applicable law.

3.1.2. Maintain SELPA policies and procedures for referring and placing individuals with exceptional needs who are enrolled in the LEA, including the methods and procedures for communication with the parents and/or guardians of the students according to SELPA Local Plan, Policies and Procedures.

3.1.3. Coordinate the organization and maintenance of the Special Education Community Advisory Committee (“CAC”) to coordinate the implementation of the Local Plan and provide for the attendance of designated members of the SELPA’s staff at all regularly scheduled CAC meetings as required by law.

3.1.4. Regular in-service training may also be provided to CAC representatives.

3.1.5. Coordinate community resources with those provided by LEA and SELPA, including providing such contractual agreements as may be required.

3.1.6. Monitor the application of eligibility criteria throughout the local plan

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Attachment 3a

area.

3.1.7. Provide alternative dispute resolution supports and services.

3.1.8. Develop interagency referral and placement procedures.

3.1.9. Provide regular personnel development for LEA staff responsible for administering or delivering special education programs and services.

3.1.10. Provide the method and forms to enable the LEA to report to the SELPA on student enrollment and program expenditures. Establish and maintain a pupil information system.

3.1.11. Provide reasonable and appropriate technical assistance and information to the LEA upon request from LEA administration, including but not limited to:

1. Evidenced Based Practices.2. Program Development and Improvement.3. Individual cases.4. State complaints.5. Requests for due process mediation and hearing; and6. Appropriate programs and services for specific pupils.

3.1.12. Perform other services reasonable and necessary to the administration and coordination of the Local Plan.

3.2. Governance. Organize and maintain the governance structure of the Local Plan including various committees and councils to monitor the operations of the SELPA and make recommendations for necessary revisions, including, but not limited to, the Local Plan, Allocation Plan and Policies.

3.3. Data Reporting. Establish and maintain methods, timelines and forms to submit required federal, state and SELPA reports.

3.4. Public Meetings. Schedule public meetings for purposes of governance activities and adopting the Annual Service Plan and Budget Plan.

3.5. Fiscal Responsibilities. Receive, distribute, and oversee the expenditure of special education funds in accordance with federal and state regulations and the SELPA Allocation Plan.

3.6. Indemnification and Hold Harmless. The SELPA shall be held harmless and indemnify EDCOE and the El Dorado County Superintendent of Schools for any costs of any kind or nature arising out of or related to this agreement other than as specifically contemplated herein, except to the extent that such cost arises from EDCOE and the El Dorado County Superintendent of Schools’ negligence.

4. EDCOE DUTIES AND RESPONSIBILITIES:

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Attachment 3a

4.1. The Parties understand that EDCOE is designated in the Local Plan as the “responsible local agency” for the SELPA. EDCOE shall receive and distribute state and federal special education funds pursuant to the Allocation Plan, provide administrative support, and coordinate implementation of the Local Plan in accordance with state and federal law.

4.2. EDCOE shall not be responsible for any LEA or SELPA obligations or duties of any kind or nature except as explicitly set forth in this agreement.

5. TERMINATION OF THIS AGREEMENT AND PARTICIPATION IN SELPA5.1. LEA may terminate this Agreement and participation in the SELPA in its sole

discretion at the end of the fiscal year next occurring after having provided prior written notice to the SELPA, as follows:

5.1.1. Prior initial written notice of intended termination to the SELPA at least twelve (12) months and one (1) day in advance of date of termination; and

5.1.2. Final written notice of termination to the SELPA no more than six (6) months after the LEA’s initial notice of intended termination.

5.2. The SELPA may initiate and complete termination of this Agreement and LEA’s participation in the SELPA in its sole discretion in accordance with the process and standards in SELPA Policies. The SELPA will provide prior written notice to the LEA at least twelve (12) months as follows:

5.2.1. Prior initial written notice of intended termination to the LEA at least twelve (12) months and one (1) day in advance of date of termination, and

5.2.2. Final written notice of termination to the LEA no more than six (6) months after the SELPA’s initial notice of intended termination.

5.3. Specifically the timeline and process above does not preclude the SELPA from initiating and completing the termination process in less than 12 months or by June 30 of the year immediately preceding the summary termination, if the member demonstrates:

5.3.1. Egregious disregard of state and federal requirements to provide services to students; and/or

5.3.2. Demonstrated systemic and material issues that would cause the SELPA to make a finding of “going concern” based on leadership, programmatic and/or fiscal solvency that would cause SELPA to reasonably believe the SELPA may be harmed by the continued membership of the LEA.

The standards and timeline as determined by the SELPA shall, at a minimum, provide the LEA a reasonable opportunity for prior written notice and an opportunity to be heard by the Membership Appeals Committee.

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Attachment 3a

6. DISPUTE RESOLUTIONShould a dispute arise relating to the responsibility for service provision, governanceactivities, the distribution of funding, if a party believes that an action taken by the CEOCouncil will create an undue hardship, or that the action taken exceeds the authoritygranted to the CEO Council within the Local Plan and/or state or federal statute, theaggrieved party may request a review of the action with the appropriate governing bodyor CDE as appropriate.

7. MUTUAL REPRESENTATIONS7.1. Authority and Capacity. The Parties have the authority and capacity to enter into

this agreement.

7.2. Full Disclosure. All information heretofore furnished by the Parties for purposes of or in connection with this Agreement or any transaction contemplated hereby or thereby is true and accurate in all material respects on the date as of which such information is stated.

7.3. No Conflicts. Neither party is under any restriction or obligation that may affect the performance of its obligations under this agreement.

7.4. Enforceability. This Agreement constitutes a legal, valid, and binding obligation, enforceable against the Parties according to its terms.

8. RESERVATION OF RIGHTS.The Parties hereto agree that nothing contained in this Agreement or otherwise shall bedeemed to have waived or modified any of their rights or remedies under the law.

This agreement is entered into for the 2017-18 year and, absent a new agreement

or termination, continues each year thereafter.

Executed on this day of , 20 .

In accordance with SELPA policy, ,

[INSERT Charter LEA Name]

certifies that this agreement has been approved by the appropriate local

board(s).

LEA

Date [INSERT CEO Name, Title]

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Attachment 3a

EL DORADO COUNTY OFFICE OF EDUCATION

Date Ed Manansala, Ed.D., Superintendent

El Dorado County Office of Education

Date David M. Toston, Associate Superintendent

SELPA Programs

El Dorado County Office of Education

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EXECUTIVE COMMITTEE MEETING – SEPTEMBER 21, 2017 ATTACHMENT 4

CHARTER SCHOOL CLOSURE AND AT-RISK OF CLOSURE POLICY REVISION

El Dorado Charter SELPA / Charter School Closure and At-Risk of Closure Policy Revision Page 1 of 1

ISSUE

Recent experiences with closed schools have highlighted the need to update our policy to allow for greater

latitude to request information and protect the Charter SELPA risk pools from claims after a school has closed.

BACKGROUND

Per CDE, the SELPA is required to have policies in place when a school closes. Additionally, CEO Council has

adopted policies to proactively avoid releasing funds to schools at risk for closure or petition revocation. After

the current policy was adopted on May 25, 2017, there were multiple situations that highlighted the need to

further refine this policy to protect the collective interest of the SELPA and ensure required documentation and

reporting expectations are met.

RECOMMENDATION

CEO Council action is requested to revise Charter SELPA Policy 27 as follows:

Revise Charter SELPA Policy 27, Section 1. Documentation and Notification of the Closure to include the

following language:

The notification and documentation requirements are not limited to the items listed above.

The Charter SELPA may require additional information as needed to ensure compliance with state and federal laws.

The Charter SELPA may require additional information to ensure appropriate transition of special education services for students served by the charter.

The Charter SELPA may require additional documentation to ensure compliance with state and federal funding requirements.

Add additional section to Charter SELPA Policy 27 to read as follows:

6. Release of Risk Pool Claims

The LEA is required to submit a Release of Risk Pool Claims, which terminates the ability to submit claims to the

Charter SELPA Risk Pools (Legal Risk Pool, SELPA Set Aside, Rate Smoothing Pool, etc.) effective the date of the

LEA closure or the termination of membership. The final release of any special education funds that have been

withheld is contingent on the requirements listed above and a signed Release of Risk Pool Claims document.

There have been additional non-material edits to improve readability and flow of the document. The revisions

have been highlighted in red in the proposed Charter School Closure and At-Risk of Closure Policy 27, as set forth

in Attachment 4a.

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ATTACHMENT 4a

El Dorado County Charter SELPA CEO Policy 27

1 CEO Council Approved 5-25-17 CEO Council Pending Approval 10-12-17

Charter School Closure and At-Risk of Closure

A charter school may choose to close voluntarily, close involuntarily through non-renewal, or close involuntarily through revocation by their authorizing LEA. Additionally, charter schools must notify the Charter SELPA whenever a change in CDS code occurs, even though this may not mean the charter has closed operations, but may have changed authorizing agencies.

The Charter SELPA must be notified by June 30 of the fiscal year prior to the change, of the change in CDS code so that the Local Plan and funding elements may be updated appropriately.

1. DOCUMENTATION AND NOTIFICATION OF THE CLOSURE

The charter must provide the Charter SELPA with a copy of their closure policy, contained in the most recently approved charter petition.

When a charter school ceases operations, as defined by no longer operating under the CDS code documented in the Local Plan, the Charter SELPA must be notified immediately. The Charter SELPA must be notified by June 30 of the fiscal year prior to the change, of the change in CDS code so that the Local Plan and funding elements may be updated appropriately.

Notice of a charter school’s closure for any reason must be provided by the authorizing entity to the California Department of Education (CDE). In addition, the charter school must send notice of its closure to:

a. Parents or guardians of students.b. The authorizing entity.c. The county office of education (if the county board of education is not the authorizing entity);d. The El Dorado Charter SELPAe. The retirement systems in which the school’s employees participate.f. The California Department of Education.

Notification of all the parties above must include at least the following:

a. The effective date of the closure.b. The name(s) of and contact information for the person(s) handling inquiries regarding the

closure.c. The students’ school districts of residence.d. How parents or guardians may obtain copies of student records, including specific information

on completed courses and credits that meet graduation requirements.

The notification and documentation requirements are not limited to the items listed above.

The Charter SELPA may require additional information as needed to ensure compliance with state and federal laws.

The Charter SELPA may require additional information to ensure appropriate transition of special education services for students served by the charter.

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ATTACHMENT 4a



The Charter SELPA may require additional documentation to ensure compliance with state and federal funding requirements.

2. RECORD TRANSFER AND RETENTIONCharter school closure procedures must include plans for the transfer and maintenance of school andstudent records, including any special education records. These records are to be transferred to thecustody of the entity responsible for conducting the closure.

After receiving notification of a charter closure, the Charter SELPA will request from the charter: a. Information regarding the entity responsibility for conducting the closure.b. Verification from the charter that special education records have been appropriately transferred

to the entity responsible for conducting the closure.

3. FINANCIAL CLOSEOUT – SINGLE PARTNERIt is the intent of the Charter SELPA to exercise due diligence when a charter closes to ensure thefollowing:

a. All special education financial reports are filed appropriately, including Charter SELPA requiredend-of-year reporting and mental health reporting.

b. Maintenance of Effort reporting is complete and the charter has passed MOE.c. All federal special education financial reports are filed.d. All attendance reports for the final year are filed (P-1, P-2, annual).e. All required special education pupil count data and special education personnel data reports are

filed appropriately.f. An annual audit is performed and the Charter SELPA receives a copy of the audit.g. Review of the audit to ensure no outstanding compliance issues are noted or other material

findings that would cause the Charter SELPA to be concerned about the reliability of datasubmitted.

h. Review of any other documentation that would be necessary to ensure the reliability of specialeducation financial data. This would include any findings of fiscal mismanagement by theauthorizing LEA in a revocation or non-renewal.

Upon determination of satisfactory completion of items noted above, any amounts owed to the charter after June 30 of the fiscal year may be released. Because of the timing of the annual audit and SELPA receipt of federal end of year funds, it is possible that final funds may not be released until six months after the charter has closed.

The Charter SELPA may release state ERMHS funds before the final charter audit is issued under the following conditions:

Appropriate documentation is on file as required by the Charter SELPA;

Charter SELPA may request additional documentation to ascertain that funds were spentappropriately for ERMHS services; and

There are no allegations or findings of fiscal mismanagement or fiscal solvency from theauthorizer or the Charter SELPA that would cause the Charter SELPA to be concerned about thereliability of data submitted.

If the Charter SELPA makes a finding that it would not release any final amounts owing to the charter, that finding will be disclosed to the Executive Committee. The charter may appeal the finding to the

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ATTACHMENT 4a



Charter SELPA Appeals Committee.

4. FINANCIAL CLOSEOUT – ORGANIZATION PARTNERIf a charter school closes, and the Organization Partner is still a member with additional charters in theCharter SELPA, the Charter SELPA may release ERMHS state funds owing after June 30 of the fiscal yearand set-aside funds, before the final charter audit is issued, under the following conditions:

Appropriate documentation is on file as required by the Charter SELPA;

There are no allegations or findings of fiscal mismanagement or fiscal solvency from the

authorizer or the Charter SELPA that would cause the Charter SELPA to be concerned about thereliability of data submitted; and

The Organization Partner has certified that funds were spent appropriately for special educationand should issues arise at a later date, the Organization Partner will honor any obligations owingby the closing charter.

5. BANKRUPTCY PROCEEDINGSIn the event of a bankruptcy, the release of funds identified above for Single Partner or OrganizationPartners may be impacted by the direction of the courts.

6. Release of Risk Pool ClaimsThe LEA is required to submit a Release of Risk Pool Claims, which terminates the ability to submit claimsto the Charter SELPA Risk Pools (Legal Risk Pool, SELPA Set Aside, Rate Smoothing Pool, etc.) effectivethe date of the LEA closure or the termination of membership. The final release of any special educationfunds that have been withheld is contingent of the requirements listed above and a signed Release ofRisk Pool Claims document.

7. OTHERCharter SELPA administration may withhold state and federal funding if matters come to their attentionthat cause them to believe that funds are not being spent appropriately for special education. Thecharter will be notified of the reason for funds being withheld and will be provided an opportunity torespond with documentation as requested by the SELPA.

Charter SELPA administration may make a determination to move a charter to a reimbursement based

state funding cash flow, if matters come to their attention that cause them to believe funds are in danger

of not being spent appropriately for special education. A listing of criteria are identified below:

Notice of revocation

Notice of bankruptcy

FCMAT extraordinary audit

Annual audit with material findings and identification of operational issues that cause concernregarding the long-term viability of the organization.

Other circumstances that create a concern the charter is in danger of closing with undocumentedor unspent special education funds.

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ATTACHMENT 4a



The intent of the reimbursement methodology is to create a timely cash flow of state aid based on documented actual special education expenditures.

The charter may appeal the finding to the Charter SELPA Appeals Committee.

Legal References:

EDUCATION CODE 47604.32 47605 47605.6 47607

CALIFORNIA CODE OF REGULATIONS, TITLE 5 (5 CCR) 11962 11962.1

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agenda executive committee meeting - charter selpa · 2019. 2. 26. · executive committee meeting...

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