1810-new_Credit-Enhancement-Application-Package-Instructions

U.S. Department of Education Office of Elementary and Secondary Education Charter Schools Program

Washington, D.C. 20202-5970

Fiscal Year 20XX Application for New Grants Under

the Expanding Opportunity Through Quality Charter Schools Program -- Credit Enhancement for Charter School Facilities Grants Program

ALN 84.354A

Dated Material - Open Immediately

Closing Date: , 20XX

Approved OMB Number: Expiration Date: XX/XX/XXXX

Dear Applicant:

UNITED STATES DEPARTMENT OF EDUCATION

Office of Elementary and Secondary Education

Thank you for your interest in the Expanding Opportunity through Quality Charter Schools Program--Credit Enhancement for Charter School Facilities Program (Credit Enhancement). Included in this application package are the instructions and forms needed to submit an application to the U.S. Department of Education. A copy of the Notice Inviting Applications for New Awards for Fiscal Year (FY) 20XX, the authorizing statute, and program regulations are provided in the application package. Please take the time to review these documents thoroughly.

Please read the document within this application package titled Grants.gov Submission Procedures and Tips for Applicants which describes the submission procedures to ensure your application is received in a timely and acceptable manner. The applications for the Credit Enhancement for Charter School Facilities Program (ALN 84.354A) for FY 20XX must be submitted electronically using the governmentwide Grants.gov Apply site at www.Grants.gov on or before the deadline date.

Please note that U.S. Department of Education grant application deadlines are 11:59.59 Eastern time. Applications submitted late will not be accepted. The Department is required to enforce the established deadline to ensure fairness to all applicants. We suggest that you submit your application several days before the deadline, and we strongly recommend that you do not wait until the last day to submit your application.

An OESE Program Officer is available to provide technical assistance to applicants. If you have any questions about the program after reviewing the application package, please call or e-mail Clifton Jones at (202) 205-2204 or [email protected]. For questions or problems in navigating the Grants.gov system, please call Grants.gov helpdesk at 1-800-518-4726.

We look forward to receiving your application and appreciate your efforts in assisting and expanding the number of high-quality charter schools across the Nation.

Sincerely,

Anna Hinton

Charter Schools Program Director Office of Elementary and Secondary Education

Table of Contents

1. Application Notice, Program Statute, and Program Regulations

• Application Notice

• Program Statute

• Program Regulations

2. General Application Instructions and Information

• Grants.gov Submission Procedures and Tips for Applicants

• Instructions for ED Abstract Narrative

• Instructions for Project Narrative

• Instructions for Budget Form and Related Information

• Instructions for Other Attachments Form

• Responding to the Project Selection Criteria

• Application Content Requirements

• Grantee Reporting and Performance Measures

• Table 1 - Non-Grant Funds Projected to be Generated

• Table 2 - Applicant Activity Table for the Most Recently Completed Fiscal Year

• Table 3 - Budget Form: Grant Funds Expenditures

• Instructions for Table 3 - Budget Form: Grant Funds Expenditures

• Table 4 – Risk Level of Charter Schools Served

• Application Checklist

3. Instructions to Standard Forms and Grant Application Requirements

   • Application for Federal Assistance (SF-424)

• Instructions for the SF-424

• Disclosure of Lobbying Activities (SF-LLL)

• Certification Regarding Lobbying (Grants.gov Lobbying Form - formerly ED 80- 0013 form)

• Supplemental Information, Instructions, and Definitions for the U.S. Department of Education Supplemental Information for the SF-424

• Budget ED 524 and Instructions for ED 524

• GEPA Statement

4. Other Important Information and Notices

• Executive Order 12372

• Estimated Public Reporting Burden

• Application Transmittal Instructions

GENERAL APPLICATION INSTRUCTIONS AND INFORMATION

Grants.gov Submission Procedures and Tips for Applicants

IMPORTANT – PLEASE READ FIRST

U.S. Department of Education

Grants.gov Submission Procedures and Tips for Applicants

To facilitate your use of Grants.gov, this document includes important submission procedures you need to be aware of to ensure your application is received in a timely manner and accepted by the Department of Education.

Browser Support

The latest versions of Microsoft Internet Explorer (IE), Mozilla Firefox, Google Chrome, and Apple Safari are supported for use with Grants.gov. However, these web browsers undergo frequent changes and updates, so we recommend you have the latest version when using Grants.gov. Legacy versions of these web browsers may be functional, but you may experience issues.

For additional information or updates, please see the Grants.gov Browser information in the Applicant FAQs: http://www.grants.gov/web/grants/applicants/applicant-faqs.html#browser

ATTENTION – Workspace, Adobe Forms and PDF Files Required

Grants.gov applicants can apply online using Workspace. Workspace is a shared, online environment where members of a grant team may simultaneously access and edit different web forms within an application. For each funding opportunity announcement (FOA), you can create individual instances of a workspace.

Below is an overview of applying on Grants.gov. For access to complete instructions on how to apply for opportunities, refer to: https://www.grants.gov/web/grants/applicants/workspace-overview.html

1. Create a Workspace: Creating a workspace allows you to complete it online and route it through your organization for review before submitting.

2. Complete a Workspace: Add participants to the workspace to work on the application together, complete all the required forms online or by downloading PDF versions, and check for errors before submission. The Workspace progress bar will display the state of your application process as you apply. As you apply using Workspace, you may click the blue question mark icon near the upper-right corner of each page to access context-sensitive help.

1. Adobe Reader: If you decide not to apply by filling out web forms you can download individual PDF forms in Workspace. The individual PDF forms can be downloaded and saved to your local device storage, network drive(s), or external drives, then accessed through Adobe Reader.

NOTE: Visit the Adobe Software Compatibility page on Grants.gov to download the appropriate version of the software at: https://www.grants.gov/web/grants/applicants/adobe-software-compatibility.html

2. Mandatory Fields in Forms: In the forms, you will note fields marked with an asterisk and a different background color. These fields are mandatory fields that must be completed to successfully submit your application.

3. Complete SF-424 Fields First: The forms are designed to fill in common required fields across other forms, such as the applicant name, address, and DUNS Number. Once it is completed, the information will

transfer to the other forms.

3. Submit a Workspace: An application may be submitted through workspace by clicking the Sign and Submit button on the Manage Workspace page, under the Forms tab. Grants.gov recommends submitting your application package at least 24-48 hours prior to the close date to provide you with time to correct any potential technical issues that may disrupt the application submission.

4. Track a Workspace Submission: After successfully submitting a workspace application, a Grants.gov Tracking Number (GRANTXXXXXXXX) is automatically assigned to the application. The number will be listed on the Confirmation page that is generated after submission. Using the tracking number, access the Track My Application page under the Applicants tab or the Details tab in the submitted workspace.

For additional training resources, including video tutorials, refer to https://www.grants.gov/web/grants/applicants/applicant-training.html

Helpful Reminders

1. REGISTER EARLY – Grants.gov registration involves many steps including registration on SAM (www.sam.gov) which may take approximately one week to complete, but could take upwards of several weeks to complete, depending upon the completeness and accuracy of the data entered into the SAM database by an applicant. You may begin working on your application while completing the registration process, but you cannot submit an application until all of the Registration steps are complete. Please note that once your SAM registration is active, it will take 24-48 hours for the information to be available in Grants.gov, and before you can submit an application through Grants.gov. For detailed information on the Registration Steps, please go to: http://www.grants.gov/web/grants/register.html [Note: Your organization will need to update its SAM registration annually.]

Primary information about SAM is available at www.sam.gov . However, to further assist you with obtaining and registering your DUNS number and TIN in SAM or updating your existing SAM account the Department of Education has prepared a SAM.gov Tip Sheet which you can find at: http://www2.ed.gov/fund/grant/apply/sam-faqs.html

2. SUBMIT EARLY – We strongly recommend that you do not wait until the last day to submit your application. Grants.gov will put a date/time stamp on your application and then process it after it is fully uploaded. The time it takes to upload an application will vary depending on a number of factors including the size of the application and the speed of your Internet connection, and the time it takes Grants.gov to process the application will vary as well. If Grants.gov rejects your application (see step three below), you will need to resubmit successfully to Grants.gov before 4:30:00 p.m. Washington, DC time on the deadline date.

Note: To submit successfully, you must provide the DUNS number on your application that was used when you registered as an Authorized Organization Representative (AOR) on Grants.gov. This DUNS number is typically the same number used when your organization registered with the SAM. If you do not enter the same DUNS number on your application as the DUNS you registered with, Grants.gov will reject your application.

3. VERIFY SUBMISSION IS OK – You will want to verify that Grants.gov received your application submission on time and that it was validated successfully. To see the date/time your application was received, login to Grants.gov and click on the Track My Application link. For a successful submission, the date/time received should be earlier than 4:30:00 p.m. Washington, DC time, on the deadline date, AND the application status should be: Validated, Received by

Agency, or Agency Tracking Number Assigned. Once the Department of Education receives your application from Grants.gov, an Agency Tracking Number (PR/award number) will be assigned to your application and will be available for viewing on Grants.gov’s Track My Application link.

If the date/time received is later than 4:30:00 p.m. Washington, D.C. time, on the deadline date, your application is late. If your application has a status of “Received” it is still awaiting validation by Grants.gov. Once validation is complete, the status will either change to “Validated” or “Rejected with Errors.” If the status is “Rejected with Errors,” your application has not been received successfully. Some of the reasons Grants.gov may reject an application can be found on the Grants.gov site: http://www.grants.gov/web/grants/applicants/encountering- error-messages.html. For more detailed information on troubleshooting Adobe errors, you can review the Adobe Reader Software Tip Sheet at: http://www.grants.gov/web/grants/applicants/adobe-software-compatibility.html. If you discover your application is late or has been rejected, please see the instructions below. Note: You will receive a series of confirmations both online and via e-mail about the status of your application. Please do not rely solely on e-mail to confirm whether your application has been received timely and validated successfully.

Submission Problems – What should you do?

If you have problems submitting to Grants.gov before the closing date, please contact Grants.gov Customer Support at 1-800-518-4726 or email at: mailto:[email protected] or access the Grants.gov Self-Service Knowledge Base web portal at: https://grants-portal.psc.gov/Welcome.aspx?pt=Grants

If electronic submission is required, you must submit an electronic application before 4:30:00 p.m. Washington, DC time, unless you follow the procedures in the Federal Register notice and qualify for one of the exceptions to the electronic submission requirement and submit, no later than two weeks before the application deadline date, a written statement to the Department that you qualify for one of these exceptions. If electronic submission is optional and you have problems that you are unable to resolve before the deadline date and time for electronic applications, please follow the transmittal instructions for hard copy applications in the Federal Register notice and get a hard copy application postmarked by midnight on the deadline date. (See the Federal Register notice for detailed instructions.)

Helpful Hints When Working with Grants.gov

Please go to http://www.grants.gov/web/grants/support.html for help with Grants.gov. For additional tips related to submitting grant applications, please refer to the Grants.gov Applicant FAQs found at this Grants.gov link: http://www.grants.gov/web/grants/applicants/applicant-faqs.html as well as additional information on Workspace at https://www.grants.gov/web/grants/applicants/applicant- faqs.html#workspace.

Dial-Up Internet Connections

When using a dial up connection to upload and submit your application, it can take significantly longer than when you are connected to the Internet with a high-speed connection, e.g. cable modem/DSL/T1. While times will vary depending upon the size of your application, it can take a few minutes to a few hours to complete your grant submission using a dial up connection. If you do not have access to a high-speed connection and electronic submission is required, you may want to consider following the instructions in the Federal Register notice to obtain an exception to the electronic submission requirement no later than two weeks before the application deadline date. (See the Federal Register notice for detailed instructions.)

Attaching Files – Additional Tips

Please note the following tips related to attaching files to your application:

• When you submit your application electronically, you must upload any narrative sections and all other attachments to your application as files in either Portable Document Format (PDF) or Microsoft Word. Although applicants have the option of uploading any narrative sections and all other attachments to their application in either PDF or Microsoft Word, we recommend applicants submit all documents as read-only flattened PDFs, meaning any fillable PDF files must be saved and submitted as non-fillable PDF files and not as interactive or fillable PDF files, to better ensure applications are processed in a more timely, accurate, and efficient manner. If you choose to submit your application in Microsoft Word, you may do so using any version of Microsoft Word (i.e., a document ending in a .doc or .docx extension). If you upload a file type other than PDF or Microsoft Word or if you submit a password- protected file, we will be unable to review that material. Please note that this will likely result in your application not being considered for funding. The Department will not convert material from other formats to PDF or Microsoft Word.

• After you electronically submit your application, you will receive from Grants.gov an automatic notification of receipt that contains a Grants.gov tracking number. Grants.gov also will notify you automatically by email if your application met all of the Grants.gov validation requirements or if there were any errors (such as submission of your application by someone other than a registered AOR, issues with your DUNS number, or inclusion of an attachment with a file name that contains special characters). You will be given an opportunity to correct any errors and resubmit, but you must still meet the deadline for submission of your application.

• Grants.gov cannot process an application that includes two or more files that have the same name within a grant submission. Therefore, each file uploaded to your application package should have a unique file name.

• When attaching files, applicants should follow the guidelines established by Grants.gov on the size and content of file names. Uploaded file names must be fewer than 50 characters, and, in general, applicants should not use any special characters. However, Grants.gov does allow for the following UTF-8 characters when naming your attachments: A-Z, a-z, 0-9, underscore, hyphen, space, period, parenthesis, curly braces, square brackets, ampersand, tilde, exclamation point, comma, semi colon, apostrophe, at sign, number sign, dollar sign, percent sign, plus sign, and equal sign. Applications submitted that do not comply with the Grants.gov guidelines will be rejected at Grants.gov and not forwarded to the Department.

• Applicants should limit the size of their file attachments. Documents submitted that contain graphics and/or scanned material often greatly increase the size of the file attachments and can result in difficulties opening the files. For reference, the average discretionary grant application package with all attachments is less than 5 MB. Therefore, you may want to check the total size of your package before submission.

Instructions for ED Abstract Narrative

The abstract is to be attached to the “ED Abstract Attachment Form” in the application package in Grants.gov.

The abstract narrative must include the name and address of your organization and the name, phone number, and e-mail address of the contact person for the project.

The abstract narrative must not exceed one page and should use language that will be understood by a range of audiences. For all projects, include the project title (if applicable), goals, expected outcomes and contributions for research, policy, practice, etc. In addition, address how your application meets the purpose of the Credit Enhancement for Charter School Facilities program as stated in the Notice Inviting Applications for New Awards.

Instructions for Project Narrative

Before preparing the project narrative, applicants should review the Federal Register Notice, the Dear Applicant Letter, and the program statute, and regulations for specific guidance and requirements. Note that applications will be evaluated according to the specific selection criteria specified in the Federal Register Notice.

Please limit the project narrative to 40 pages, double-spaced, and number the pages consecutively. Refer to the Federal Register Notice for additional application submission requirements.

This part of your application contains information responsive to the Project Selection Criteria and the Application Content Requirements. Make sure your narrative addresses all of the elements. We strongly recommend that the information be organized around and appear in the same sequence as the Project Selection Criteria. Please upload the program narrative as one document.

Instructions for Budget Form and Related Information

This part of the application contains information about the Federal funding you are requesting. You must fill in the ED-524 budget form. For the ED-524, applicants only need to fill out Row 8 (titled "Other") in Project Year 1. The amount listed in row 12. Total Costs should reflect the total amount of grant funds requested.

Applicants are also required to fill out Table 3 and provide explanations and comments necessary to interpret the information you provide on this form.

Both of these forms (the ED-524 and Table 3) will be uploaded in the Budget Form Section.

Instructions for Other Attachments Form

Applicants should attach additional documents to the “Other Attachments Form” in the application package in Grants.gov. These documents would be supplementary statements and other requested information.

In addition to the program narrative, applications should include resumes for key personnel. Before preparing additional documentation, applicants should review the Federal Register Notice, the Dear Applicant Letter, and the program statute, and regulations for specific guidance and requirements. Note that applications will be evaluated according to the specific selection criteria specified in the Federal Register Notice.

To facilitate the review of the application, please organize your attachments in the following order:

1. Table 1 - Non-Grant Funds Projected to be Generated

2. Table 2 - Applicant Activity Table for the Most Recently Completed Fiscal Year

3. Table 4 - Risk Level of Charter Schools Served (required of past grantees only)

4. Consortium agreements

5. Resumes/Curriculum Vitae

6. Appendices (example: logic model)

Consortium Agreements:

Consortium applicants must also submit consortium agreements as part of their application package. These applicants must either designate one member of the group to apply for the grant or establish a separate legal entity to apply for the grant. All members of the consortium must then enter into an agreement that details the activities that each member of the group plans to perform and that binds each member to the application statements and assurances. This consortium agreement must be submitted as part of the consortium’s application. The Department's administrative regulations at 34 CFR sections 75.127--129 provide more details about the requirements that govern group/consortium applications.

Resumes/Curriculum Vitae:

Provide resumes/curriculum vitae for the project director as well as any key personnel identified in the application.

Responding to the Project Selection Criteria

The Secretary will select for funding under the Credit Enhancement for Charter School Facilities Program those applications that are deemed of highest overall quality. Experts in finance, including school facilities finance and credit enhancement, will review the applications and assign to each application up to 100 points using the Project Selection Criteria. Each criterion includes factors the reviewers will consider in determining how well an application meets the criterion.

Reviewers will use their own professional judgment to assess the quality of each application against these criteria. The kind of information needed to accomplish this for each criterion is discussed below. We recommend that applicants organize their application narrative around the Project Selection Criteria.

Selection criteria will be published in the Notice Inviting Applications.

Application Content Requirements

Each Credit Enhancement for Charter School Facilities Program application must include the following specific program elements:

1. A statement identifying the activities proposed to be undertaken with grant funds (the “grant project”) and the timeline for the activities, including how the applicant will determine which charter schools will receive assistance, how much and what types of assistance these schools will receive, the type of schools to be served, and what procedures the applicant will use for documenting grant project procedures and results.

2. A description of the involvement of charter schools in the application's development and design of the proposed grant project.

3. A description of the applicant’s expertise in capital markets financing and organizational capacity to implement the proposed grant project successfully. (Consortium applicants must list information for each of the participating organizations.)

This description must include the applicant’s:

1. Operational Capacity and Risk Mitigation Strategies as evidenced by:

1. Age of Organization

Identify how long the organization has been in existence. (Consortia should identify the ages of each of the participating organizations.)

2. Policies and Procedures

Provide a brief summary of the following applicant policies and procedures, indicating whether they are approved by the applicant’s governing board and when they were implemented. If they are not currently in place, describe what steps the organization will take to develop and implement such policies and procedures. If the practices differ from the policies and procedures, explain.

1. Underwriting Standards for Participants: Process for evaluating the creditworthiness of charter school participants, including criteria for providing guarantees or other credit enhancement.

2. Portfolio Monitoring: Monitoring process, risk rating methodologies, and debt restructuring, collections, and write-off policies.

3. Financial Management/Risk Mitigation: Internal controls and operating policies for safeguarding assets, including cash management; maintaining liquidity and operating reserves; likely reserve account investments; and risk mitigation strategies (e.g. portfolio diversification, adopting internal lending limits, establishing and adjusting debt loss reserves, and seeking third-party insurance against default by the applicant).

3. Standards of Conduct

Provide a copy of the standards of conduct for your organization, if they exist. The standards of conduct must, at a minimum, require disclosure of direct and indirect financial or other interests, mandate disinterested decision- making, and indicate corrective actions to be taken in the event of violation.

2. Financial Track Record and Strength as evidenced by:

1. Credit Rating

Submit the most recent credit rating and report prepared for the organization by a major bond rating agency, such as Standard and Poor’s, Moody’s Investors Service, or Fitch IBCA. If the organization does not have a credit rating, please indicate.

2. Financial Statements

Submit audited financial statements for the applicant’s three most recently completed fiscal years. If audited statements are not available, please provide financial statements for the applicant’s three most recently completed fiscal years that have been reviewed by an independent Certified Public Accountant (C.P.A.).

Such documents must include:

1. Balance sheets or statements of financial position;

2. Income statements or statements of activities;

3. Statements of cash flows; and

4. Notes to the financial statements and, if applicable, the auditor’s opinion letter and any reports of findings.

If neither audited nor C.P.A.-reviewed financial statements are available, submit internal financial statements and explain why audited or C.P.A.-reviewed financial statements are not available. If the audited financial statements of the applicant are consolidated with those of its affiliates and do not include separate schedules on the applicant’s financial position and separate income statements for the applicant, also submit a separate set of internal financial statements that clearly distinguish the applicant’s financial information from that of the affiliates.

3. Non-profits: IRS Form 990

Provide a copy of the most recently filed IRS Form 990.

4. Portfolio Quality

Provide a narrative explanation of portfolio performance, particularly explaining the circumstances of any unusually high levels of delinquencies and losses, or loss reserves that appear inconsistent with actual losses. Such explanations should include any steps the organization is taking to remedy identified problems.

Also include an explanation of any debt-loss experience with high-risk borrowers.

5. Financial Track Record

Complete the Applicant Activity Table for the Most Recently Completed Fiscal Year.

6. Financial Projections

Applicants must submit a cash flow pro forma for the grant project. The pro forma should include both a statement of sources and uses of funds and a projection of annual cash flows during the Project Period. All amounts should be

expressed on a cash (year-of-expenditure) basis and should include a narrative describing key assumptions in the business model used to arrive at such estimates. The pro forma should include:

• Projected cash flows (receipts and disbursements) through the Project Period, including separate line items for each category of allowable uses of reserve account funds (such as facilitating financing or guaranteeing leases). The cash flow must indicate the projected reserve account balance at the end of each year;

• Administrative cost charges covered by the Federal funds (a maximum of 2.5%) and non-grant sources such as donations;

• An explanation of the amount and nature of all fees and expenses (including interest on loans) payable by the charter school participants associated with the grant project; and

• Anticipated interest and other earnings expected to be gained on grant funds.

If applicable, the applicant also should calculate the estimated effective financing rate (true interest cost) for charter schools participating in the grant project, and compare such percentage rate to other available financing sources.

In the event that the applicant proposes to charge fees (including interest on loans) to charter schools, the applicant must:

• Indicate whether the fees and interest are in excess of the direct cost to the applicant,

• Identify the size of this excess amount, and

• Describe how this excess amount will be used.

Furthermore, the applicant must explain how these fees and interest rates are reasonable.

7. Financial Stability

Discuss the applicant’s strategy for sustaining its projected operations through earned income, grants, contributions, or other resources. Discuss the applicant’s strategy for capitalizing its loan, guarantee, or investment fund through debt, equity, secondary markets, or other resources. Discuss the extent to which funding sources are diversified and any plans to maintain or increase the diversification of funding sources.

Complete the Non-Grant Funds Projected to be Generated Table.

8. Legal Background

Non-profit entities: Submit a copy of articles of incorporation and by-laws.

Public entities: Submit a copy of enabling statute and other relevant legislation.

9. Previous grantees (both Credit Enhancement for Charter School Facilities Program and Charter School Facility Financing Demonstration Grant Program Grantees): the most recent annual performance report (if the grant has not been in place long enough to have an annual performance report, the most recent half-year report).

10. Applicable experience financing charter schools (if any), including the number of schools served, the total amount of financing provided, the total amount of financing credit enhanced.

3. Skills and Experience of the Grant Project Management Team as evidenced by:

1. Management and Staff Experience

For each member of the management team and other key staff, submit:

1. A description of current and past job responsibilities, and education, experience, and skills, with particular attention to experiences in the fields of finance and education. The description of the individuals’ experience in education must

include a discussion of their expertise in assessing the programs of charter schools. This information may be provided in the form of current resumes or detailed biographical statements. Position qualification statements should be included for staff the applicant plans to hire for the project.

2. A description of the duties of the management team and key staff working on the project. Include any staff the applicant anticipates hiring, including through contracts, to work on the project.

2. Board of Directors:

Non-profit applicants only: Submit a current list of the governing board members that indicates their tenure and organizational affiliations. Discuss the role(s) of the board of directors with respect to the grant project and their qualifications in that regard. Disclose any business and personal relationships between board members and personnel working for the applicant’s organization.

4. A description of how the proposed grant project will leverage the maximum amount of private-sector and other non-Federal capital relative to the amount of Credit Enhancement for Charter School Facilities Program funding used, the definition of “leverage” the applicant has used in developing that description, the type of assistance to be provided, how the assistance would sufficiently reduce the costs that charter schools face so that it would enable them to obtain or improve school facilities that they would not be able to obtain or improve absent the assistance, and how the proposed activities will otherwise enhance credit available to charter schools. Also:

Provide a ratio of Federal funds to the anticipated amount of capital leveraged. For instance, if the size of the reserve account is $1 million and $5 million in bonds would be guaranteed using funds in the reserve account, the ratio is 5:1. Describe how the leveraging ratio is calculated and how the assistance provided to charters schools will be sufficient to assist them in meeting their school facility needs that could not have been met absent this assistance.

Provide an explanation of the number and characteristics of charter schools to be served by the Project (e.g. size, demographics, and age of school -- start-up or experienced, etc.) Include an explanation of the types of services they will receive.

5. A description of how the applicant possesses sufficient expertise in education to evaluate the likelihood of success of a charter school for which facilities financing is sought.

6. In the case of an application submitted by a State governmental entity, a description of current and planned State funding policy and other forms of financial assistance that will help charter schools meet their facility needs.

Grantee Reporting and Performance Measures

Reporting:

At the end of your project period, you must submit a final performance report, including financial information, as directed by the Secretary.

Also, each year, a grantee must submit an annual performance report that provides the most current performance and financial expenditure information as specified by the Secretary in 34 CFR 75.118.

Program Performance Measures:

The performance measures for this program are: (1) The amount of funding grantees leverage for charter schools to acquire, construct, and renovate school facilities and (2) the number of charter schools served. Grantees must provide this information as part of their annual performance reports.

Project-Specific Performance Measures:

Applicants must propose project-specific performance measures and performance targets consistent with the objectives of the project and program. Applications must provide the following information as directed under 34 CFR 75.110(b):

1. Project Performance Measures: How each proposed project-specific performance measure would accurately measure the performance of the project and how the proposed project-specific performance measure would be consistent with the performance measures established for the program funding the competition.

2. Project Performance Targets: Why each proposed performance target is ambitious yet achievable compared to the baseline for the performance measure and when, during the project period, the applicant would meet the performance target(s).

Note: The Secretary encourages the applicant to consider measures and targets tied to their grant activities (for instance, if applicants are using eligibility for free and reduced price lunch to measure the number of low-income families served by the project, the applicant could provide a percentage for students qualifying for free and reduce lunch), during the grant period. The measures should be sufficient to gauge the progress throughout the grant period, and show results by the end of the grant period.

3. The applicant must also describe in the application:

   1. The data collection and reporting methods the applicant would use and why those methods are likely to yield reliable, valid, and meaningful performance data, and

   2. The applicant’s capacity to collect and report reliable, valid, and meaningful performance data, as evidenced by high-quality data collection, analysis, and reporting in other projects or research.

Note: If the applicant does not have experience with collection and reporting of performance data through other projects or research, they should provide other evidence of their capacity to successfully carry out data collection and reporting for their proposed project.

Table 1 – Non-Grant Funds Projected to be Generated

Source	Project year 1	Project year 2	Project year 3	Project year 4	Project year 5	Remaining years	Total
1. Donations
2. Fees not associated with grant
3. Interest not associated with grant
4. Borrowed funds (including lines of credit to be used)
5. Appropriated funds
6. Other
Total

The purpose of this table is to determine amount and expected source of revenues for the applicant.

Table 2 – Applicant Activity Table for the Most Recently Completed Fiscal Year

Outstanding credit enhanced debt	Total activity
Number of debt issues with credit enhancement
Dollar amount of debt issues with credit enhancement (includes debt structured using a senior/subordinate debt structure)	$
Outstanding leases guaranteed
Number of leases guaranteed or insured
Dollar amount of leases guaranteed or insured	$
Other means of facilitating financing (including both lending and the issuance of bonds) for the most recently completed fiscal year
Number of clients assisted by facilitating financing 1
Amount of funds spent on facilitating financing (including both lending and the issuance of bonds)	$

Please provide a narrative associated with this table that briefly describes the types of assistance provided and the types of clients served, paying particular attention to any clients related to education, including charter schools. Each member of a consortium should complete this table separately.

¹ Includes activities in Section 4304(f)(1)(C) and (D).

Table 3 -Budget Form: Grant Funds Expenditures

Budget categories	Project year 1	Project year 2	Project year 3	Project year 4	Project year 5	Remaining years	Total
A. Administrative funds (2.5%)
A.1. Indirect costs
A.2. Administrative costs other than indirect costs
A. Total administrative costs
B. Reserve account earnings
C. Reserve account (97.5%)
C.1. Grant funds spent on guaranteeing and insuring debt and leases 1
C.1.a. Personnel and fringe benefits
C.1.b. Payments to third parties to guarantee or insure debt
C.1.c. Other payments associated with guaranteeing and insuring debt and leases
C.1. Total Guaranteeing and insuring debt and leases payments
C.2. Grant funds spent on facilitating financing (including facilitating lending and the issuance of bonds) 2
C.2.a. Personnel and fringe benefits
C.2.b. Contractual
C.2.c. Other payments associated with facilitating financing
C.2. Total grant funds spent on facilitating financing (including facilitating lending and the issuance of bonds)
C.3. Total reserve account costs (lines C.1. and C.2.)

The purpose of this table is to determine the amount of Federal grant funds that the applicant intends to spend on activities to cover costs associated with the Credit Enhancement for Charter School Facilities Grant. The table should include funds from the reserve account only in the year they are spent. The table should not include funds that remain in the reserve account and are used to directly guarantee or insure debt or leases.

¹ Includes activities in Section 4304(f)(1)(A) and (B).

² Includes activities in Section 4304(f)(1)(C) and (D).

B-24

Instructions for Table 3 -- Budget Form: Grant Funds Expenditures

A. Administrative funds:

Indirect costs: Many organizations have indirect cost rates established with the U.S. Department of Education which allow those organizations to spend a portion of their grant funds on a share of the total organization costs such as rent and utilities. For this grant you may choose to claim indirect costs, but the total amount may not exceed the 2.5% allowed by statute. Also, if you choose to claim indirect costs, the sum of your indirect costs and your other administrative costs (line A.2.) combined may not exceed the allowable 2.5%.

Administrative costs other than indirect costs: Administrative costs include such items as preparing reports. Administrative cost funds are capped by the program’s authorizing statute at 2.5% of the award amount. Administrative costs may be spread out over the project period, but the total amount may not exceed 2.5% in total. Also, if you choose to claim indirect costs, the sum of your indirect costs and your other administrative costs (line A.2.) combined may not exceed the allowable 2.5%.

1. Total administrative costs: The total for this line should include the sum of lines A, A.1. and A.2. This line cannot exceed 2.5% of the award amount for the entire project period.

2. Reserve account earnings: Earnings include the total interest earned per year on reserve account funds as well as all fees charged in association with the project, because fees must also be added to the reserve account and used for the four allowable purposes of the grant.

3. Reserve account expenditures

1. Grant funds spent on guaranteeing and insuring debt and leases

1. Personnel and fringe benefits: All costs associated with paying personnel who will receive reserve account funds for their direct involvement with guaranteeing and insuring debt and leases. (We expect that this will not be a significant portion of the total request.)

2. Payments to third parties to guarantee or insure debt: All payments made with reserve account funds to third parties such as fees for guaranteeing or insuring debt.

3. Other payments associated with guaranteeing and insuring debt and leases: Any other costs paid for with reserve account funds that are not covered in C.1. a-b that can be directly attributed to guaranteeing and insuring debt and leases.

1. Total Guaranteeing and insuring debt and leases payments: The sum of lines C.1.a., C.1.b., and C.1.c.

2. Grant funds spent on facilitating financing (including facilitating lending and the issuance of bonds)

1. Personnel and fringe benefits: All costs associated with paying personnel who will receive reserve account funds for their direct involvement with facilitating financing. (We expect that this will not be a significant portion of the total request.)

2. Contractual: All costs associated with paying contractors that will receive reserve account funds for their work facilitating financing.

3. Other payments associated with facilitating financing: Any other costs paid for with reserve account funds that are not covered in lines C.2. a-b that can be directly attributed to facilitating financing.

2. Total grant funds spent on facilitating financing (including facilitating lending and the issuance of bonds): The sum of lines C.2.a., C.2.b., and C.2.c.

2. Total reserve account costs (lines C.1. and C.2.): The sum of lines C.1. and C.2. The amount in the total column for this row cannot exceed the sum of the request on Form ED 424 (the Application for Federal Education Assistance) plus reserve account earnings, and would likely be less.

Table 4 – Risk Level of Charter Schools Served – (required of past grantees only)

Type of charter schools served through previous Credit Enhancement grants from the US Department of Education as of September 30 of the most recent year	Number of charter schools
Number of charter schools served through all Credit Enhancement grants
Number of charter schools served through Credit Enhancement grants that have educated students for three years or less
Number of charter schools served through Credit Enhancement grants receiving credit enhancements of leasehold improvement loans
Number of charter schools served through Credit Enhancement grants that are independent of Charter Management Organizations, networks, or “chains” of charter schools
Number of charter schools served through Credit Enhancement grants providing personal guarantees
Number of charter schools served through Credit Enhancement grants in connection with other grantees under the program
Number of charter schools served through Credit Enhancement grants receiving guarantees through other Federal programs

Application Checklist for Applicants

As discussed on the following pages, a complete application must include all of the documents listed below.

[ ] Cover page (SF 424 Form)

[ ] ED Abstract Narrative Attachment Form [ ] Project Narrative Attachment Form

[ ] Including responses to the selection criteria

[ ] Budget Narrative Attachment Form [ ] ED 524

[ ] Table 3 -Budget Form: Grant Funds Expenditures [ ] Other budget information

[ ] Other Attachments Form

[ ] Table 1- Non-Grant Funds Projected to be Generated

[ ] Table 2 - Applicant Activity Table for the Most Recently Completed Fiscal Year [ ] Table 4 - Risk Level of Charter Schools Served - (required of past grantees only) [ ] Consortium Applicants must attach a copy of consortium agreement

[ ] Resumes/Curriculum Vitae

[ ] Standards of Conduct [ ] Credit Rating Reports

[ ] Audited Financial Statements [ ] Cash Flow Pro Forma

[ ] Non-profits: Articles of Incorporation and By-laws [ ] Non-profits: IRS Form 990

[ ] Public entities: Enabling Statutes and Other Relevant Legislation

[ ] Previous grantees (both Credit Enhancement for Charter School Facilities Program and Charter School Facility Financing Demonstration Grant Program Grantees): Table 4 and the most recent annual performance report (if the grant has not been in place long enough to have an annual performance report, the most recent half-year report)

[ ] Assurances and Certifications

[ ] Certifications Regarding Lobbying

[ ] SF-LLL Disclosure of Lobbying Activity

[ ] Response to Section 427 of GEPA Guidance

[ ] Did you submit a copy of the application to the State Single Point of Contact (if applicable)?

INSTRUCTIONS FOR STANDARD FORMS AND GRANT APPLICATION REQUIREMENTS

Forms, Assurances, and Certifications

Applicants must complete all forms included in the application package. Instructions for the following forms are included in this document:

• Application for Federal Assistance (SF- 424)

• Instructions for the SF-424

• Disclosure of Lobbying Activities (SF- LLL)

• Certification Regarding Lobbying (Grants.gov Lobbying Form - formerly ED 80-0013 form)

• Supplemental Information, Instructions, and Definitions for the U.S. Department of Education Supplemental Information for the SF-424

• Budget ED 524 and Instructions for ED 524

• GEPA Statement

OTHER IMPORTANT INFORMATION AND NOTICES

Executive Order 12372

Executive Order 12372 (Intergovernmental Review of Federal Programs)

This program falls under the rubric of Executive Order 12372 (Intergovernmental Review of Federal Programs) and the regulations in 34 CFR Part 79. One of the objectives of the Executive order is to strengthen federalism--or the distribution of responsibility between localities, States, and the Federal government--by fostering intergovernmental partnerships. This idea includes supporting processes that State or local governments have devised for coordinating and reviewing proposed Federal financial grant applications.

The process for doing this requires grant applicants to contact State Single Points of Contact for information on how this works. Multi-state applicants should follow procedures specific to each state.

Further information about the State Single Point of Contact process and a list of names by State can be found at:

https://obamawhitehouse.archives.gov/omb/grants_spoc

Absent specific State review programs, applicants may submit comments directly to the Department. All recommendations and comments must be mailed or hand-delivered by the date indicated in the actual application notice to the following address: The Secretary, EO 12372--CFDA# [commenter must insert number--including suffix letter, if any], U.S. Department of Education, room 7E200. 400 Maryland Avenue, SW., Washington, DC 20202.

Proof of mailing will be determined on the same basis as applications (see 34 CFR §75.102). Recommendations or comments may be hand-delivered until the closing date indicated in this notice.

Important note: The above address is not the same address as the one to which the applicant submits its completed applications. Do not send applications to the above address.

Estimated Public Reporting Burden

Paperwork Burden Statement

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays a valid OMB control number.  The valid OMB control number for this information collection is 1810-new. Public reporting burden for this collection of information is estimated to average 80 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.  The obligation to respond to this collection is required to obtain or retain benefit under 20 U.S.C. 7221c and EDGAR.  If you have any comments concerning the accuracy of the time estimate, suggestions for improving this individual collection, or if you have comments or concerns regarding the status of your individual form, application or survey, please contact Credit Enhancement for Charter School Facilities Program, Clifton Jones, (202)205-2204 U.S. Department of Education, 400 Maryland Avenue, S.W., Room 3E211, Washington D.C. 20202- 4651.) directly.

Application Transmittal Instructions

Please Note – Electronic Submission Policy

Electronic Submission is Required – As outlined in the Federal Register notice for this grant competition, applications must be submitted electronically. You must submit your application using the electronic application system designated in the Federal Register notice. (The notice will designate whether you will use e-Application or Grants.gov). You may not e-mail an electronic copy to us. We will reject your application if you submit it in paper format unless you qualify for one of the exceptions to the electronic submission requirement described below and submit, no later than two weeks before the application deadline date, a written statement to the Department that you qualify for one of these exceptions.

Under mandatory submission, electronic applications must be received by 4:30:00 pm Washington, DC time on the application deadline date. Under this new policy, Education does not allow for any last minute waiver requests from applications, which is a change from the previous policy for mandatory electronic submission. Consequently, we strongly encourage you to review the registration and submission procedures for the designated electronic application system right away. In addition, we strongly suggest that you do not wait until the deadline date to submit your application.

Exception to Electronic Submission Requirement: You qualify for an exception to the electronic submission requirement, and may submit your application in paper format, by mail or hand delivery, if you are unable to submit an application through the electronic application system designated in the Federal Register notice because –

• You do not have access to the Internet; or

• You do not have the capacity to upload large documents to the system;

and

• No later than two weeks before the application deadline date (14 calendar days or, if the fourteenth calendar day before the application deadline date falls on a Federal holiday, the next business day following the Federal holiday), you mail or fax a written statement to the Department, explaining which of the two grounds for an exception prevent you from using the Internet to submit your application. If you mail your written statement to the Department, it must be postmarked no later than two weeks before the application deadline date. If you fax your written statement to the Department, we must receive the faxed statement no later than two weeks before the application deadline date. (Please follow the fax instructions found in the Federal Register notice for this competition. Also, your paper application must be submitted in accordance with the mail or hand delivery instructions also described in the Federal Register notice for this grant competition.)

For detailed information on the electronic submission requirement for this competition, please refer to the Federal Register notice.