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§ 10188. Release of Funds.

4 CA ADC § 10188Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 4. Business Regulations
Division 15. California School Finance Authority
Article 2. 2004 and 2009 State Charter School Facilities Incentive Grants Programs
4 CCR § 10188
§ 10188. Release of Funds.
Currentness
(a) No grant funds shall be released until the grant agreement and supporting attachments have been provided and it has been determined by the Authority that the charter school continuously meets the requirements of the grant program.
Applicants shall be afforded three options for disbursement of grant funds, depending on the use of the grant award:
(1) Option One: Base Rent/Debt Service/Proposition 39 pro-rata payments. Under the first option, charter schools shall apply monthly disbursements of grant funds toward the eligible monthly costs of rentor debt service payments over a three-year period, if such costs are sufficiently documented to the Authority's satisfaction.
(A) Grant fund awards shall be released on the dates listed in the grant agreement.
(B) All disbursements of Grant fund awards shall be processed according to the schedule established by the Authority.
(C) All subgrantees shall submit documentation of continued eligibility on a semi-annual basis during the months of February and August.
(D) Documentation of continued eligibility shall include, but not be limited to, copies of the current charter and current lease(s); verification of any changes to the subgrantee's name, project, project location, or facility costs; executed amendments to the grant agreement, when appropriate; and verification and/or status of pending or threatened legal issues or investigations.
(E) Documentation of continued eligibility shall require verification the subgrantee charter school is continuously in good standing with its chartering authority and continuously in compliance with the terms of its charter without interruption throughout the term of the grant. The Authority will rely on information from the chartering authority regarding the school's good standing and compliance with the terms of its charter. Charter schools may appeal any response by the chartering authority's staff directly to the chartering authority's governing board. It shall be the charter school's responsibility, and not the Authority's, to ensure that the good standing and compliance response letter is received by the relevant deadline.
(F) Documentation of continued eligibility shall require submission of a completed LSQ (as may be amended from time to time) disclosing information relating to any legal or regulatory proceedings or investigations in which the subgrantee or its parent/subsidiary/affiliate is or has been a party and which might have a material impact on the financial or educational viability of the charter school. The responses to the LSQ and all supporting documents related to the responses will be reviewed by Authority staff and legal counsel prior to authorizing additional disbursements of grant funds.
(G) Documentation of continued eligibility must be received and approved by the Authority on or before February 28 and August 31 of each year in order for the Authority to release a disbursement.
(H) Failure to meet the February 28 or August 31 deadline shall result in the subgrantee being declared ineligible to receive the first monthly disbursement of the respective semi-annual disbursement period. The forfeited funds cannot be disbursed retroactively and will immediately revert back to the Authority.
(I) If the required documentation is not received and approved by the Authority within 30 calendar days following the February 28 and August 31 deadline, the subgrantee shall be declared ineligible to receive the remaining five monthly disbursements for the respective semi-annual disbursement period. The forfeited funds cannot be distributed retroactively and will immediately revert back to the Authority.
(J) Failure to meet the semi-annual deadlines consecutively and provide documentation within 30 calendar days from each deadline shall result in the subgrantee being declared ineligible to receive all remaining disbursements under the grant program. The forfeited funds will immediately revert back to the Authority.
(2) Option Two: Construction/Renovation. Under the second disbursement option, charter schools shall have the choice of applying grant funds (equal to a three-year award) toward the costs of constructing or renovating a facility, if such costs are sufficiently documented to the Authority's satisfaction. Charter schools requesting the second option will be required to demonstrate project readiness at the time of application. Such project readiness may include, but not be limited to proof of site control for the term of the grant and detailed project plans and drawings.
(A) Processing Disbursements:
1. Requests for disbursement shall be processed when the Authority, in its sole discretion, determines that the invoices and supporting documents are complete.
2. Repeated failure by the subgrantee to timely respond to Authority staff's request for additional documentation or information related to disbursement requests may result in subgrantee being found ineligible to receive grant funds as described in Section 10185.
(B) Subgrantees are required to draw down an amount equal to one-third of their total award within the first year of the grant term. Failure to draw down an amount equal to one-third of the total award annually will result in the loss of one-third of the total award, less any funds previously distributed in the applicable year. Funds will immediately revert to the Authority.
1. In extraordinary circumstances and on a case-by case basis, the Authority may approve extensions to the one-third draw down requirement and allow subgrantees additional time to draw down funds. Subgrantees will be required to submit a request for the extension including a statement of need to be evaluated by Authority. In no circumstances shall the extension be granted beyond the three-year grant term.
(C) All subgrantees shall submit documentation of continued eligibility on a semi-annual basis during the months of February and August.
(D) Documentation of continued eligibility shall include, but not be limited to, copies of the current charter and current lease(s); verification of any changes to the subgrantee's name, project, project location, or facility costs; executed amendments to the grant agreement, when appropriate; and verification and/or status of pending or threatened legal issues or investigations.
(E) Documentation of continued eligibility shall require verification the subgrantee charter school is continuously in good standing with its chartering authority and continuously in compliance with the terms of its charter without interruption throughout the term of the grant. The Authority will rely on information from the chartering authority regarding the school's good standing and compliance with the terms of its charter. Charter schools may appeal any response by the chartering authority's staff directly to the chartering authority's governing board. It shall be the charter school's responsibility, and not the Authority's, to ensure that the good standing and compliance response letter is received by the relevant deadline.
(F) Documentation of continued eligibility shall require submission of a completed LSQ (as may be amended from time to time) disclosing information relating to any legal or regulatory proceedings or investigations in which the subgrantee or its parent/subsidiary/affiliate is or has been a party and which might have a material impact on the financial or educational viability of the charter school. The responses to the LSQ and all supporting documents related to the responses will be reviewed by Authority staff and legal counsel prior to authorizing additional disbursements of grant funds.
(G) Documentation of continued eligibility must be received and approved by the Authority on or before February 28 and August 31 of each year in order for the Authority to release a disbursement.
(H) Failure to meet the February 28 or August 31 deadline shall result in the subgrantee being declared ineligible to receive the first monthly disbursement of the respective semi-annual disbursement period. The forfeited funds cannot be disbursed retroactively and will immediately revert back to the Authority.
(I) If the required documentation is not received and approved by the Authority within 30 calendar days following the February 28 and August 31 deadline, the subgrantee shall be declared ineligible to receive the remaining five monthly disbursements for the respective semi-annual disbursement period. The forfeited funds cannot be distributed retroactively and will immediately revert back to the Authority.
(J) Failure to meet the semi-annual deadlines consecutively and provide documentation within 30 calendar days from each deadline shall result in the subgrantee being declared ineligible to receive all remaining disbursements under the grant program. The forfeited funds will immediately revert back to the Authority.
(3) Option Three: Purchase. Under the third disbursement option, charter schools shall have the choice of applying grant funds (equal to a three-year award) toward the costs of acquiring a facility or land, if such costs are sufficiently documented to the Authority's satisfaction. Charter schools requesting the third option will be required to demonstrate a commitment toward the acquisition of a facility at the time of application. Such commitment may include, but not be limited to, verification of the charter school's possession of an option to purchase land.
(A) Processing Disbursements:
1. Requests for disbursement shall be processed when the Authority, in its sole discretion, determines that the invoices and supporting documents are complete.
2. Repeated failure by the subgrantee to timely respond to Authority staff's request for additional documentation or information related to disbursement requests may result in subgrantee being found ineligible to receive grant funds as described in Section 10185.
(B) Subgrantees are required to draw down an amount equal to one-third of their total award within the first year of the grant term. Failure to draw down an amount equal to one-third of the total award annually will result in the loss of one-third of the total award, less any funds previously distributed in the applicable year. Funds will immediately revert to the Authority.
(1) In extraordinary circumstances and on a case-by case basis, the Authority may approve extensions to the one-third draw down requirement and allow subgrantees additional time to draw down funds. Subgrantees will be required to submit a request for the extension in writing, including a statement of need to be evaluated by Authority. In no circumstances shall the extension be granted beyond the three-year grant term.
(C) All subgrantees shall submit documentation of continued eligibility on a semi-annual basis during the months of February and August.
(D) Documentation of continued eligibility shall include, but not be limited to, copies of the current charter and current lease(s); verification of any changes to the subgrantee's name, project, project location, or facility costs; executed amendments to the grant agreement, when appropriate; and verification and/or status of pending or threatened legal issues or investigations.
(E) Documentation of continued eligibility shall require verification the subgrantee charter school is continuously in good standing with its chartering authority and continuously in compliance with the terms of its charter without interruption throughout the term of the grant. The Authority will rely on information from the chartering authority regarding the school's good standing and compliance with the terms of its charter. Charter schools may appeal any response by the chartering authority's staff directly to the chartering authority's governing board. It shall be the charter school's responsibility, and not the Authority's, to ensure that the good standing and compliance response letter is received by the relevant deadline.
(F) Documentation of continued eligibility shall require submission of a completed LSQ (as may be amended from time to time) disclosing information relating to any legal or regulatory proceedings or investigations in which the subgrantee or its parent/subsidiary/affiliate is or has been a party and which might have a material impact on the financial or educational viability of the charter school. The responses to the LSQ and all supporting documents related to the responses will be reviewed by Authority staff and legal counsel prior to authorizing additional disbursements of grant funds.
(G) Documentation of continued eligibility must be received and approved by the Authority on or before February 28 and August 31 of each year in order for the Authority to release a disbursement.
(H) Failure to meet the February 28 or August 31 deadline shall result in the subgrantee being declared ineligible to receive the first monthly disbursement of the respective semi-annual disbursement period. The forfeited funds cannot be disbursed retroactively and will immediately revert back to the Authority.
(I) If the required documentation is not received and approved by the Authority within 30 calendar days following the February 28 and August 31 deadline, the subgrantee shall be declared ineligible to receive the remaining five monthly disbursements for the respective semi-annual disbursement period. The forfeited funds cannot be distributed retroactively and will immediately revert back to the Authority.
(J) Failure to meet the semi-annual deadlines consecutively and provide documentation within 30 calendar days from each deadline shall result in the subgrantee being declared ineligible to receive all remaining disbursements under the grant program. The forfeited funds will immediately revert back to the Authority.
(b) Subgrantees applying grant funds toward the costs of acquiring land and purchasing, constructing, or renovating a facility must also provide all documentation verifying eligible costs annually, as described in Section 10185.

Credits

Note: Authority cited: Sections 17179 and 17180, Education Code. Reference: Section 17180, Education Code.
History
1. New section filed 6-27-2005 as an emergency; operative 6-27-2005 (Register 2005, No. 26). A Certificate of Compliance must be transmitted to OAL by 10-25-2005 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-17-2005 as an emergency; operative 10-17-2005 (Register 2005, No. 42). A Certificate of Compliance must be transmitted to OAL by 2-14-2006 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 10-17-2005 order, including amendment of subsection (b), transmitted to OAL 2-8-2006 and filed 3-24-2006 (Register 2006, No. 12).
4. Amendment of subsections (a) and (b) filed 4-19-2007; operative 4-19-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 16).
5. Amendment of subsection (b) filed 3-24-2008; operative 4-23-2008 (Register 2008, No. 13).
6. Amendment of subsection (b) and new subsections (d)-(f) filed 3-23-2009; operative 4-22-2009 (Register 2009, No. 13).
7. Amendment of subsections (b) and (e)-(e)(1), new subsection (e)(2), subsection renumbering and amendment of newly designated subsection (e)(5) and subsection (f) filed 3-25-2010; operative 4-24-2010 (Register 2010, No. 13).
8. Amendment of subsections (e)(1) and (e)(3)-(5) and new subsection (e)(6) filed 2-22-2012; operative 3-23-2012 (Register 2012, No. 8).
9. Amendment of subsection (b) filed 3-21-2013; operative 3-21-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 12).
10. Repealer and new section filed 11-29-2017; operative 1-1-2018 (Register 2017, No. 48).
11. Amendment of subsections (a)(1)(D) and (a)(2)(B), new subsection (a)(2)(B)(1), amendment of subsections (a)(2)(D), (a)(3), (a)(3)(A)2. and (a)(3)(B), new subsection (a)(3)(B)(1) and amendment of subsection (a)(3)(D) filed 7-26-2018; operative 7-26-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 30).
12. Amendment of subsection (a)(1) filed 6-20-2019; operative 6-20-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 25).
This database is current through 4/12/24 Register 2024, No. 15.
Cal. Admin. Code tit. 4, § 10188, 4 CA ADC § 10188
End of Document