Frequently Asked Questions

Answer

1a. Please describe the California School Facility

Grant Program (SB740

Program)?

The SB740 Program is intended to provide grants to charter schools to assist with facilities' rent and lease costs associated with the

school.

1b.

How is the school's eligibility determined for the

SB740 Program?

The Authority shall use prior year data on pupil eligibility for free or reduced-price meals (FRPM) to determine the charter school's

eligibility.

(Refer to Eligible Applicant Section 10170.3 of the Regulations)

(First Year Charter Schools see Section 2 below)

The following criteria is used to determine an applicant's eligibility:

• Fifty-five percent (55%) or more of the student enrollment at the charter school site is eligible for FRPM; or

• The charter schoolsite for which grant funds are requested is physically located in the attendance area of a public elementary school

in which fifty-five percent (55%) or more of the pupil enrollment is eligible for FRPM. The charter school gives preference in

admissions to pupils currently enrolled in that school and to pupils who reside in the elementary school attendance area where the

charter school is located as determined by the local school district.

FRPM shall mean the percentage of enrolled students in grades Kindergarten through 12th grade or students ages 5 through 17,

whichever is greater, and certified through the annual Fall 1 data submission to the California Longitudinal Pupil Achievement Data

System (CALPADS). (Refer to Definitions Section 10170.2(n) of the Regulations)

https://www.cde.ca.gov/ds/sd/sd/filessp.asp

1e. Is the FRPM Eligibility an annual requirement? Each year applicants must submit a new Application and the Authority will determine eligibility on an annual basis. Charter schools must

also meet the FRPM Eligibility requirements each year. (Refer to Eligible Applicant Section 10170.3(d) of the Regulations)

1f. Is the school eligible if it is in default with other

Authority programs?

A charter school and its Charter Management Organization, if applicable, must be in good standing with all of the programs administered

by the Authority. For example, a school cannot be delinquent on CSRLF loans or owe back grant funds to another program administered

by the Authority and receive an award under the Program.

(Refer to Apportionment of Grant Funds. Section 10170.9(g) of the Regulations)

The charter school must satisfy all three of the following conditions:

1) compliance with the terms of its Charter Agreement,

2) no pending or outstanding Notices of Violation described in Education Code (EC)

§47607(g), and

3) no pending or outstanding Notices of Intent to Revoke described in EC §47607(h).

1h. What is ADA? Average Daily Attendance (ADA) shall mean the unit of attendance, as reported by the California Department of Education (CDE) for the

second period of the school year.

(Refer to Definitions Section 10170.2(d) of the Regulations)

1g. What does Good Standing mean?

Question

1. SB740 Program Eligibility

1c. What are the criteria used to determine a

school's eligibility?

1d. What is FRPM?

Please note* These are guidance only, and should not be used by school's or stakeholders to arrive at an eligibility or funding determination. Applications will be vetted for eligibility and funding upon

submission of an application and supporting documents.

Answer

2a. When is the Application released? The Authority releases an online application during the month of [STATIC APPLICATION DATES] and will be due five weeks from the

release date. The Authority will send a confirmation email upon submission of the application.

A HARD COPY OF THE APPLICATION WILL NOT BE ACCEPTED.

2b. Do current Awardees need to apply

annually?

Yes, each year applicants must submit a new Application and the Authority will determine

eligibility on an annual basis.

2c. When do First Year Charter Schools apply? A Second Application period will be opened September 10th for First Year Charter Schools beginning operation during the funding round

or schools moving from an ineligible facility to an eligible facility. The Second Application period will close October 15th as stated on the

Authority's website. The Authority will send a confirmation email upon submission of the

application.

2d.

I'm a new school without a CDS code and need

to reopen my application?

New schools without a CDS code can reopen the application by entering the ID number created when the application was started. Please

contact the Authority for the reference number.

2e. The school has been a previous grantee, do I

need to submit all the

documents on the checklist?

If any of the required documents are expired or have been updated, the Authority will need current documents including any lease

revisions.

Yes, the Authority requests all sections of the application be completed. For a full tutorial on how to complete the Online Application,

please see the recording of the SB740 Webinar. The

Application includes the following sections:

• School Info - Complete the requested information.

• Lease Info - Complete the requested information and attach supporting lease documents.

• Eligibility section - Complete all Yes/No questions and response boxes. If an item does not apply to the applicant please mark

"NA."

• Related Parties - Complete all Yes/No questions and response boxes. If an item does not apply to the applicant please mark

"NA." If the school does have a related party please submit the requested supporting documents.

• Legal Status Questionnaire - Respond with the requested information or "None at this time." Original signatures shall be from

two unique individuals.

• Charter School Certification - Original signatures shall be from two unique individuals.

• Non-Profit Verification - Applicant must provide documentation for non-profit operating status.

2g. What is a Charter Agreement? The Charter Agreement/Petition submitted to the applicant's Authorizer valid during the current fiscal year.

2h. What is an Approved Authorized Board

Adoption?

An Authorized Board Adoption contains the Board minutes from an Authorizer approving the

charter school dates of operation.

2i. What is a List of Current Board Members,

Board of Directors or

Governing Board of Charter Schools?

The list specifies the Board Members serving on the Board during the current funding round. Charter schools awaiting approval of newly

appointed Board Members are required to submit an

updated list upon member approval.

Question

2. SB740 Program Application Submission

2f. Does the Applicant need to complete all

sections of the Application?

Answer

2j. How should I organize my school's leases? Scan each Lease separately (Save-As "Facility street address".)

NOTE: One upload per facility site, combine any corresponding amendment(s) and original lease as a single document (latest amendment

first.)

2k. Our school has more than three sites, how

shall we submit the additional

facility information?

If the charter school has more than three facilities, attach the facility information on a separate sheet and include it with your application.

2l. What types of files can I upload to my

Online Application?

The file type must be a text readable PDF and the maximum file size is 5000 KB.

If the file is larger than 5000 KB, there are PDF compressors available online. But if the issue

persists please send an email to the Authority:

SB740@treasurer.ca.gov

3a. What is a First Year Charter School? First Year Charter School shall mean a school that anticipates beginning operations as a Charter School in the Fiscal Year it submits an

Application. A First Year Charter School should apply during the second application period which is available in September and due by

October 15th.

3b. How will our eligibility be determined if

our school just opened this year?

First Year Charter Schools not operational in the prior year shall be eligible in the current year if

the school meets the FRPM Eligibility requirements based on current year data.

3c. How will our ADA be determined if our school

just opened this year?

For charter schools that do not have Prior Year enrollment data, the Authority will request new charter schools to submit their 20 Day

Attendance Report in October. The Authority will calculate the school's ADA based on 90% of the school’s enrollment as reported in the

Charter School 20

Day Attendance Report.

3d.

The school is in the process of getting a charter

using a combination of classroom-based and

independent study. Is the school eligible for the

SB740 Program?

The SB740 Program limits eligibility based on the definitions of non classroom-based instruction and classroom-based instruction

contained in Education Code 47612.5. Based on those definitions, "at least 80% of the instructional time must be at the school site" for

purposes of the SB 740 program. The Authority only reviews in-classroom ADA as reported by the California Department of Education.

3e. We just merged the MS and HS, and don't

have the new CDS code yet.

Should we use the MS CDS code for

now?

No, Charter schools receiving a new CDS code from CDE shall be considered a "First Year Charter" as defined by Program Regulations

Section 10170.2 (l).

3f. Can First Year Charter Schools received funds

during the 1st and 2nd apportionments?

First Year Charter Schools may receive funds during the 1st and 2nd apportionments if their site(s) is located within the boundaries of an

elementary school with 55% or more FRPM and the charter school provides a preference in admissions to that charter school. Generally,

eligibility and funding determinations are made at the end of the fiscal year during True-up once current year FRPM data is made

available.

4a. What does preference in admission mean? Applicants relying on a local Elementary FRPM to meet the 55% FRPM eligibility requirement must provide preference in admissions to:

pupils who are currently enrolled in the local public elementary school and to pupils who reside in the elementary school attendance area.

4. Preference in Admissions

Question

2m. What if my file is larger than 5000 KB?

3. First Year Charter Schools

Answer

4b.

If the school's charter was approved after

January 1, 2018, what is the preference in

admission requirement?

Schools whose charters were approved after January 1, 2018 and are relying on the local elementary school's FRPM to meet Program

eligibility are required to provide:

1) An amendment to the preference in admissions language in the school’s charter petition;

2) Minutes from the meeting in which the preference in admission language is approved by the chartering authorizer’s board. (Refer to

Education Code 46105)

The school can provide evidence of preference in admissions in one of the following forms: a resolution adopted by the charter school’s

Governing Board, or information on the school's website (please confirm with your authorizer that this is allowable) which sets forth, to the

satisfaction of the Authority:

• The Name of School that has a preference in admissions policy.

• The charter gives a preference in admissions to pupils who are currently enrolled in the local elementary school the charter school is

relying on to meet the Charter School Facility Grant Program's Free and Reduced Priced Meal requirement and to pupils who reside in

the elementary school attendance area where the charter schoolsite is located.

• It is not necessary for the public elementary school to be specified by name so long as the above conditions are met.

4d. How does the Authority determine the

local elementary school?

The Authority will contact the charter school's local public school district to determine each

facility's local elementary school.

No, preference to the local elementary must be cited (Refer to 4c and d) for clarification. Acceptable Language:

“Students who are currently enrolled in or who reside in the elementary school attendance area of the Public elementary school(s) in

which [Charter School] is located (for purposes of the Charter School Facility Grant Program).”

Beginning January 1, 2020, California charter schools and Charter Management Organizations (CMO) considered to “manage” charters

must comply with government agency transparency rules including Government Code 1090. The Charter School Facility Grant Program’s

(SB740) regulations section 10170.14 includes both a definition of for “related party” and the conditions required for lease and/or service

agreements to be deemed eligible for reimbursement.

However, as stated in regulations section 10170.14 (d):

(d) Nothing in this section is intended to supercede Government Code Section 1090, the Political Reform Act (commencing with

Government Code Section 81000), or any other conflicts of interest laws that may be applicable to the Applicant or Charter School's

participation in the program.

5. Conflict of Interest & Related Parties

5a.

If the lease was executed/amended on or after

January 1, 2020 what measures need to be

taken to be in compliance?

4c.

If the school's charter was approved before

January 1, 2018, what is the preference in

admission requirement?

4e. Does the local elementary school need to be

identified by name?

Question

Answer

Government Code 1090 mandates that if a board member has financial interest, the rest of the board is prohibited from entering into the

contract even if the interested board member abstains. Under Section 1090, the term “made” is not used in the narrow technical sense,

but is defined in the broadest sense to encompass actions including preliminary discussions, negotiations, compromises, reasoning,

planning, and solicitation for bids and applications. Millbrae Association for Residential Survival v. City of Millbrae, (1968) 262 Cal.App.2d

222.

Here is a link to Government Code 1090

5c. Please define what is considered a Related

Party? (Leases executed prior to January 1,

2020)

(A) School Official or a spouse, domestic partner, or dependent child of a School Official; or

(B) A Corporate Entity if a School Official or a spouse, domestic partner, or child of a School Official is an Affiliate of the Corporate Entity,

except that a non-profit Corporate Entity formed exclusively for the purpose of managing or providing support to the Applicant or Charter

School or to a group of related charter schools, and any direct or indirect wholly-owned subsidiary of any such Corporate Entity, shall not

be considered a Related Party.

5d. If the lessor/property owner was formed solely for the purpose of managing or supporting the charter school or a group of charter schools,

provide evidence such as a Lessor's Article of Organization.

If lessor/property owner was NOT formed solely for the purpose of managing or supporting the charter school, provide responses to the

following:

• Full explanation of the individuals who have roles with both the charter school and the lessor/property owner.

• Provide evidence that the related party or parties recused themselves from the charter school’s decision to enter into the lease and

apply for the grant.

• Provide evidence that the related party’s interest in the property was disclosed to the charter school’s governing board.

• Provide evidence that the lease payment is at or below market rate or that, the Governing Board, in approving the lease, made a

finding that it was reasonable under the circumstances.

5e. If the applicant responds affirmatively to the

related party questions, "Will it disqualify the

applicant from the grant

award?"

No. All Applicants are vetted for potential conflicts of interest as part of the application review process. A "Yes" answer helps Authority

staff understand the nature of any relationship between parties that may be uncovered during this vetting.

5f. What happens if the school is unable to satisfy

the Related Party conditions

outlines in Section 10170.14(c)?

Grant funds may not be used by an Applicant or Charter School to pay for any lease, rental or service agreement with a Related Party.

If the school has a Related Party what

information will need to be submitted? (Leases

executed prior to January 1, 2020)

Question

5b.

What is Government Code 1090?

Answer

The grant awards are funded in three apportionments:

• Initial Apportionment is 50% of lease/rent facilities cost

• Second Apportionment is 25% of lease/rent

• Final True-Up Apportionment is 25% of Other Costs and lease/rent

Grant awards are calculated based on the lesser-of-the-two calculation:

• Prior year ADA multiplied by $1,420 (2022-23); or

• 75% of the school lease cost Example:

ADA: 50.54 X $1,420.00 = $71,766.80

Lease: $5,000 X 12 months X 75% = $45,000

The school's award would be $45,000 (lesser of the two)

Grant awards are calculated based on the lesser-of-the-two calculation:

• Current year ADA multiplied by $1,420 (2023-24); or 75% of school lease cost + Eligible Other Costs Pro-rata (PR)

Example:

ADA: 125 X $1,420 (2023-24) = $177,500

Lease: $45,000 + Other Costs (if applicable/available): $5,000 x 70% (PR) = $45,000 + $3,500 = $48,500. The maximum

award is $48,500 (the lesser of the two calculation)

6d. How does the pro rata calculation apply to my

school?

Schools will be awarded 75% of the lease costs first. The Authority shall then determine the pro rata share for each Grantees’ Other Costs

by calculating the percentage of the remaining funds available as compared to the funds needed to award all Grantees eligible Other

Costs. This percentage shall be applied to the Grantee’s Other Cost portion of the award

(Refer to Eligible Cost Section 10170.9 (e)(1)(2) of Program Regulations.)

6e. What if there are not enough funds to award all

eligible lease costs?

Other costs are ineligible for reimbursement and the award solely based on reimbursement of lease costs. The Authority shall then

determine the pro rata share for each Grantee by calculating the percentage of the funds available as compared to the funds needed to

award all Grantees eligible lease costs. This percentage shall be applied to the Grantee’s Award.

6f. My school had an increase in ADA, will the

Authority review my final

disbursements?

The Authority will receive final P2 data certified by California Department of Education. This data will be used to determine the school's

Final True-Up Award.

6g.

My school had a decrease in ADA, how will this

affect my school's funding?

Schools where the ADA has decreased will be reviewed by the Authority and schools may need to return disbursed funds. Schools

receive the initial and second apportionments are based on

the prior year P2 data calculation.

6h. A portion of our school is located in existing

District Facilities, how will my eligible ADA be

determined?

Schools occupying existing District or County Office of Education facilities will be required to identify the ADA occupying eligible facilities:

• Do the students migrate between eligible and ineligible sites: Yes – Eligible ADA based on sq. ft. ratio or No – Applicant self-certifies

ADA breakdown

6c. How is the award calculated during the Final

True-Up apportionment?

Question

6. Grant Award Calculations

6a. How is the grant award grant apportioned?

6b. How is the award calculated during the Initial

and 2nd apportionments?

Answer

7a. What is COLA? “Cost Of Living Adjustment Index” (COLA Index) that is annually provided by the Department of Finance. The Cola Index is used to

calculate a multiyear lease's reimbursable rent.

7b. Why is the lease COLA capped? The lease is COLA capped by the index determined by the Department of Finance. This percentage is applied to the previous

years rent or lease cost. Example: 2023 rent cost $100,000, 2024 COLA cap 8.15%, 2018 COLA cap $108,150 lease amount.

7c. What is Fair Market Rent? “Fair Market Rent” shall the mean the amount of money a property would rent or lease for if it

was available at the time the appraisal was conducted.

7d. What is an Independent Appraisal? “Independent Appraisal” shall mean a value assessment of rent and lease costs for a charter school facility completed and signed by a

Certified Real Estate Appraiser or Certified General Appraiser licensed by the California Department of Real Estate Appraisers who

confirms that the appraisal is in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).

7e. What is a New Facility Agreement?

“New Facility Agreement” shall mean either: 1) a rental or lease agreement for a facility not previously occupied by the charter school; 2) a

rental or lease agreement that includes additional square footage not included in the previous year’s agreement; or 3) a new agreement

for existing facilities or square footage when the existing lease is up for renewal or expires.

7f. When should the school submit an

appraisal?

After the Authority has confirmed the applicant's eligibility Program staff will notify the school if

the facility requires an appraisal.

7g. Is there a deadline for the appraisals? All appraisals are due within 60 calendar days of request.

The Appraisal shall be consistent with the USPAP, and at a minimum contain the following

items:

(1) Use a Certified Real Estate Appraiser or Certified General Appraiser licensed by the California Department of Real Estate

Appraisers;

(2) The Appraiser shall not be a Related Party as defined in section 10170.14(a)(3);

(3) “Client” shall be the Charter School;

(4) “Intended User” shall be the California School Finance Authority for Charter School Facility Grant Program eligibility;

(5) Provide a Fair Market Rent Analysis including an explanation that supports the conclusions reached; and

(6) Signed Certification consistent with language found in USPAP.

7i. How long are appraisals valid for? Applicable appraisals are valid for 3 funding rounds.

For example: If the school gets an appraisal for the 2021-22 funding round, it will be valid through the end of the 2023-24 funding round.

7h. What are the guidelines for an appraisal?

Question

7. Reimbursable Rent and Lease Costs

Answer

The Authority reviews each lease to ensure:

• The charter school is identified as the lessee or the lease clearly states the charter school is operating on the premises.

• The facility lease address must match the school's address.

• The terms of the lease (commencement date - expiration date).

• The square footage of the lease agreement.

• The facility lease is executed by the lessor and lessee.

• There is not a conflict of interest between the lessor/property owner and the school's administrators and staff.

(Refer to Conflict of Interest Section 10170.14 of the Regulations.)

• Related Party schools only: The amount of the lease or rent is at or below market rate (see Section 4 above.)

8b. If our school's lease is a sublease, do

we need to submit the master lease?

Yes, the Authority will require the master lease and will review both the master and sublease

pursuant to the award determination.

Yes, if the charter school does not have an executed rent or lease agreement for the Fiscal Year, the Applicant may produce an executed

lease or rental agreement from the prior year. The Applicant may also provide such other evidence to the satisfaction of the Authority,

such as a pending lease agreement, that establishes the Applicant’s best estimate of such costs for the Fiscal Year:

• Lease costs calculations are determined upon the terms of the lease agreement submitted to Authority.

• Schools with new lease agreements are to submit the current lease agreement to the Authority's email prior to Second Disbursement

(March 1.)

• Schools with New Facility Agreements may be requested to submit an Independent Appraisal (Refer to Section 7.)

8d. My school rents month-to-month, what

documents are required? Does the school need

to submit a rent/lease

agreement?

Schools with a month-to-month rental agreements are required to submit a rent/lease agreement and the monthly statements, (July and

August). The Final True-Up is based on the current fiscal year's monthly statements due by July 15th after the close of the fiscal year.

8e. Our school's lease agreement includes

additional rent used to reimburse the lessor's

payment of common area maintenance.

All additional rent used to reimburse expenditures for common area maintenance, utilities, etc. are consider Invoice Costs and must be

submitted through the Facility Invoice Expenditure Report.

(Refer to section 9)

8f. Can an applicant amend and add a location

during a grant period?

Charter Schools are able to amend a lease agreement and add a location during the grant period. The lease agreement must be valid

during the current fiscal year. All additional

information is due to the Authority no later than July 15 after the close of the fiscal year.

8g. The lease agreement is for two separate

charter schools located on the same facility

site. What information does the Authority need

to review shared facility costs?

The lease agreement must clearly state the lease terms for each school renting/leasing the facility(s). The Authority requires a letter

signed by the lessor identifying the lease terms and separation of costs for each charter school.

8c. My school’s lease expires June 2020; does the

school submit the 2019-20 lease agreement

with the application and then submit the

approved 2020-21 lease agreement?

8. Eligible Lease Costs

8a. Can the Authority identify the content reviewed

in the facility lease agreement?

Question

Answer

8h. The charter school leases facilities from the

school district. May we apply for lease,

maintenance, and other facilities costs?

No, per California Education Code 47614.5 (e)(2) facility costs for existing District and County Office of Education (COE) facilities are

ineligible for reimbursement.

8i. Are Charter School Facilities Program (CSFP)

costs eligible?

No, the SB740 Program shall not fund costs incurred to meet a charter school's local match obligation for charter school facilities that

receives funds pursuant to the Charter School Facilities Program (CSFP).

(Refer to Eligible Cost Section 10170.4 (b)(4) of Program Regulations.)

8j.

How will the school's facility costs be calculated

if a portion of the annual facility costs are

based on funding received by the SB740

Program?

The SB740 Program bases its award calculation on the school’s facility costs. If a lease allows the lessor to retroactively increase the

annual facility costs based on funds received through the SB740 program, then the award calculation becomes a circular calculation

(Circular Cost). For this reason, leases which base a portion of the annual facility costs on SB740 Funding are ineligible for

reimbursement.

8k. Can the SB740 Program reimburse a lease for

a site purchased with State Charter School

Facilities

Incentive Grants Program funds?

No, facility rent and lease costs associated with a facility purchased and paid in full with State Charter School Facilities Incentive Grants

Program funds are ineligible unless those costs are associated with capital improvements.

8l. Is the purchase of a facility eligible for

reimbursement?

The primary intent of the SB740 Program is to reimburse rent and lease costs. The purchase of

any facility including modular is not eligible for reimbursement.

8m. Are leases with the option to purchase

eligible?

Only if the lease costs do not lower the final purchase price.

9a. When should the Applicant submit Invoice

Costs expenses for reimbursement?

Other Costs items must be submitted by July 15 after the Fiscal Year has ended. Other Costs will be incorporated into the Awardee's

Final True-Up Award Calculation. The school can be reimbursed for eligible Invoice Costs incurred during the current Fiscal Year. (July

1st - June 30th)

9b. Will Invoice Costs be included in the

initial and 2nd Award allocations?

No, Invoice Costs will only be incorporated into the Awardee's Final True-Up Award Calculation.

All Invoice Costs must be submitted with the Facility Invoice Expenditure Report which can be

found on the SB740 Program's website.

https://www.treasurer.ca.gov/csfa/csfgp/

The following items are eligible Invoice Costs for reimbursement:

• Remodeling: Modification or extending the structure of an existing building.

• Deferred Maintenance: Repairs and maintenance to the facility including but not limited to repairing electrical systems, installing or

repairing air conditioners, waxing floors, repairing locks, etc. Supplies and materials used to complete the project are also eligible.

• Installation and Extending Service Systems: Placing new equipment in position ready for use. (HVAC, Security systems, etc.)

• Built-In Equipment: Equipment installed and secured to the facility for permanent use. (Does not include computers, desks, copy

machines, or other portable office equipment.)

• Improving Sites: The labor and materials used to enhance the school's appearance. (Beautification projects, playground equipment,

etc.)

• Common Area Maintenance:

9c. How should I submit my invoices?

9d. Can the Authority define Invoice Costs eligible

for reimbursement?

Question

9. Eligible Invoice Costs Submission

Answer

○ Landscaping - Cost of materials and services.

○ Janitorial - Cost of services.

○ Utilities - Costs associated with electricity, water, public waste disposal, communication

(excluding costs associated cell phone usage.)

○ Insurance - Costs associated with property insurance only. (Property portion must be broken if invoice includes any other type

such as liability, personal, vehicle, etc.)

9e. Our janitor is an employee of the school. Is his

salary eligible for reimbursement?

No, employees' salaries and benefits are ineligible for reimbursement.

9f. Are consumables eligible for reimbursement? Consumables include food, disposables, and toiletries. These items do not support the facility upkeep and are ineligible for

reimbursement. (Example: Toilet paper, paper towels, hand soap,

toner, water, gasoline, etc.)

9g. Are vehicles eligible for reimbursement? Generally costs associated with, but not limited to the purchase, usage, or maintenance of vehicles are not eligible for reimbursement.

Such vehicles are not physically restricted to the

eligible site and may used for purposes other than upkeep of the facility.

No, property taxes are ineligible for reimbursement. According to the California Board of Equalization, "a charter school, including a

charter school operating as or by a nonprofit public

benefit corporation, is exempt from property tax."

https://www.boe.ca.gov/proptaxes/ps_exemption.htm

9i. Can schools still submit invoice costs if they

selected "NO" on the application for expecting

additional costs like remodeling, deferred

maintenance,

etc.?

A school selecting "NO" on the application is able to submit invoices for invoice facility costs. The question on the application

assists the Authority with funding projections.

9j. May a school be funded by SB740 primarily for

deferred maintenance and

remodeling etc.?

Yes, applicants are able to submit Deferred Maintenance and Remodeling costs to the Program for reimbursement.

9k. Do leasehold improvements qualify for Other

Costs? The lease agreement includes putting

money into upgrading some facility

improvements?

Leasehold/tenant improvements may be eligible for reimbursement with proper documentation (See response 9d.)

9l. Our school's lease agreement allows the

lessor to establish a reserve account for Other

Costs. Does this qualify for as

an eligible cost?

The Authority reimburses expenses in arrears (payments made after a service has been provided). Accounts established for future costs

are not eligible for reimbursement since the services did not occur during the applicable Fiscal Year.

9m. Does the school need to complete the Facility

Invoice Expenditure Report if it is only being

reimbursed for lease costs?

No, schools requesting reimbursement for only lease costs do not need to submit the Facility Invoice Expenditure Report.

9n. My school rents month-to-month, what

documents are required? Does the school need

to submit the Facility

Invoice Expenditure Report?

Lease costs are NOT part of the Facility Invoice Expenditure Report. Schools with month-to- month rental agreements are required to

submit the monthly statements, along with an itemized spreadsheet.

9h. Are property taxes eligible for reimbursement?

Question

Answer

Proof of Payment must include: vendor name, purchase/project date, purchase/project amount,

project location, and project description. The following forms are acceptable:

• Vendor's invoice

• Purchase Order (supporting documents)

• Receipt

• Copy of cancelled check

• Copy of bank statement

Write next to or on the Proof of Payment all of the following if they are not present:

• Vendor name

• Project description

• Project date

• Project amount

• Project location

9q. What's the best way to summarize "partial

invoice amount"? For example we are using

other funding for a portion and do not want to

claim that portion of the invoice.

Schools submitting partial Invoices need to specify the reimbursement amount. The invoice must include notes breaking out the eligible

costs. On the Template, only include the eligible cost portion and in the comments section please identify why this is a partial payment and

what percentage of the total amount this portion represents. For Example: School A- 60% Utility Cost, School B- 40% Utility Cost.

9r. In the past, the Authority has requested

corresponding county issued Warrant

Registers for the invoices. Is this no longer

required?

For most cases, Warrant Registers will not be required. The Authority will review reimbursement costs submitted by each school. Proof of

Payment must include: vendor name, purchase/project date, purchase/project amount, project location, and project description. The

Authority reserves the right to request additional evidence.

The Authority is able to accept .zip files and PDF files with a maximum file size of 30MG. Schools with larger files are encouraged to send

separate email files identifying invoice File 1, File 2, etc. Schools submitting multiple emails are to identify the school's name in the subject

line and submit all attachments to:

SB740@treasurer.ca.gov

Applicants may also submit a link to a online drive like Firefox Send, Google Drive, etc.

Upon notification of the Authority's eligibility or Award determination the Applicant has 30

calendar days to submit an Appeal to the Authority. An Appeal shall be a letter submitted on behalf of the charter school requesting

reconsideration and must include the following:

• School Letterhead

• Requested action

• Basis of appeal; factual and regulatory

• Supporting documentation

• Signature from Lead Administrator or Board Member

10b. After submission of an Appeal what is the

Appeal Process?

The Authority shall review and provide an Authority Staff’s Final Decision within 30 calendar days of receipt.

(Refer to Section 10170.10 of the Regulations.)

10a. How can the charter school appeal the

eligibility or calculation of an award

determination?

9p. What if the school only has a receipt that does

not include the project's location or description?

9s. The PDF copies of the invoices are too large to

mail as an attachment. Can the school send as

a .zip file document?

10. Appeal Process

Question

9o. What does the Authority consider as Proof of

Payment?

Answer

10c. What if the charter school is unsatisfied with

Authority Staff’s Final Decision?

The Applicant has 30 calendar days following receipt of Authority Staff’s Final Decision to notify the Authority that the Applicant wishes to

appeal the matter to the Authority Board.

Upon receipt of an appeal notice from an Applicant, the matter will be considered by the Authority Board at the next regularly scheduled

Authority meeting.

(Refer to Section 10170.10 of the Regulations.)

10d. Can the charter school request an additional

time to appeal to either staff or the Authority

Board?

Yes, Applicants may request a single extension of up to 30 calendar days for either of the deadlines provided. Staff shall consider the

request for extension based on a showing of good cause and evaluate on a case-by case basis. Including the 30 day extension, the entire

Appeal Process may not exceed 120 days.

10e. What happens if the charter school submits an

appeal after the deadline?

If an appeal is not able to be resolved by the deadline or an appeal is received after the due date the Authority shall deny the appeal

based on a failure to comply with Program regulations. This

decision is considered final and is not subject to an additional appeal.

11a. Can we get a report that shows which

invoices were approved?

Upon request, the Authority can return the school's Facility Invoice Expenditure Report after

Authority staff have completed the final review.

The Authority has a ListServ signup available on the website treasurer.ca.gov/CSFA or click on

the below link:

The Application Webinar Presentation documents are available at:

www.treasurer.ca.gov/CSFA/csfgp/index.asp

All SB740 Program Awards disbursed by Authority are available on the Authority's website:

Treasurer.ca.gov/CSFA/csfgp

11c. How can the school receive a copy of

the latest SB740 webinar?

11d. How can the school review Prior Award

Determinations?

Question

11. Other Questions

11b. How can the school receive updates

from California School Finance Authority?