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PCSGP Start-Up Subgrant Use of Funds

Information regarding the Use of Funds for the Public Charter Schools Grant Program (PCSGP) Subgrants including allowable and non-allowable expenses.

PCSGP Use of Funds Guidance | Legislation, Regulations, and Guidance | Additional Documentation and Evidence Requirements | Allowable Expenditures | Non-Allowable Expenditures

PCSGP Use of Funds Guidance

The Public Charter Schools Grant Program (PCSGP) is a subgrant program funded by the federal Charter Schools Program (CSP), authorized under Title IV, Part C of the Elementary and Secondary Education Act (ESEA) of 1965, as amended by the Every Student Succeeds Act (ESSA) (20 United States Code [USC] sections 7221–7221j). Office of Management and Budget (OMB) Circular A-122 establishes principles for determining allowable costs for Federal grants to non-profit entities. As a general matter, costs must be reasonable, necessary, and allocable to meet the objectives of the grant pursuant to Cost Principles for Non-Profit Organizations, 2 Code of Federal Regulations (CFR) 230. PCSGP Start-Up Subgrant activities may include: (1) post-award planning and design of the educational program which may include (a) refinement of the desired educational results and of the methods for measuring progress toward achieving those results; and (b) professional development of teachers and other staff who will work at the charter school; and (2) initial implementation of the charter school, which may include (a) informing the community about the school; (b) acquiring necessary equipment and educational materials and supplies; (c) acquiring or developing curriculum materials; and (d) other initial operational costs that cannot be met from State or local sources, pursuant to 20 USC Section 7221c(f)(3). Specific requirements for the use of PCSGP Start-Up Subgrant funds are dependent on the type of subgrant awarded to a charter school: Planning, Implementation, Replication, or Expansion. Planning and Implementation subgrants generally may be awarded for a period of up to 36 months, with no more than 18 months used for the Planning phase, and no more than 36 months total used for both Planning and Implementation phases of the new charter school. Replication and Expansion subgrants may not exceed 36 months from the time of award.

PCSGP Start-Up Subgrant funds may be used to fund one or more of the following activities described in 20 USC Section 7221b(h):

  • Preparing teachers, school leaders, and specialized instructional support personnel, including through paying the costs associated with:
    • providing professional development; and
    • hiring and compensating, during the eligible applicant’s planning period specified in the application for subgrant funds that is required under this section, one or more of the following:
      • Teachers.
      • School leaders.
      • Specialized instructional support personnel.
    • Acquiring supplies, training, equipment (including technology), and educational materials (including developing and acquiring instructional materials).
    • Carrying out necessary renovations to ensure that a new school building complies with applicable statutes and regulations, and minor facilities repairs (excluding construction).
    • Providing one-time, startup costs associated with providing transportation to students to and from the charter school.
    • Carrying out community engagement activities, which may include paying the cost of student and staff recruitment.
    • Providing for other appropriate, non-sustained costs related to the activities described in subsection (b)(1) when such costs cannot be met from other sources.
  • Definitions for the staffing positions described pursuant to 20 USC Section 7801:
  • Specialized instructional support personnel. The term `specialized instructional support personnel' means:
    • School counselors, school social workers, and school psychologists; and
    • Other qualified professional personnel, such as school nurses, speech language pathologists, and school librarians, involved in providing assessment, diagnosis, counseling, educational, therapeutic, and other necessary services (including related services as that term is defined in section 602 of the Individuals with Disabilities Education Act [20 USC Section 1401]) as part of a comprehensive program to meet student needs.
  • School leader. The term `school leader' means a principal, assistant principal, or other individual who is:
    • An employee or officer of an elementary school or secondary school, local educational agency, or other entity operating an elementary school or secondary school; and
    • Responsible for the daily instructional leadership and managerial operations in the elementary school or secondary school building.

Specific requirements for the use of PCSGP Start-Up Subgrant funds are dependent on the type of subgrant awarded to a charter school: Planning, Implementation, Replication, or Expansion. Planning and Implementation subgrants generally may be awarded for a period of up to 36 months, with no more than 18 months used for the Planning phase, and no more than 36 months total used for both Planning and Implementation phases of the new charter school. Replication and Expansion subgrants may not exceed 36 months from the time of award.

What types of costs qualify as “other initial operational costs that cannot be met from State or local sources”?

As stated in CSP Nonregulatory Guidance 2014, for purposes of the CSP, initial implementation activities may include:  (a) informing the community about the school; (b) acquiring necessary equipment and educational materials and supplies; (c) acquiring or developing curriculum materials; and (d) other initial operational costs that cannot be met from State or local sources. As a general matter, these costs may include, but are not necessarily limited to, the following:

  • Costs associated with creating and implementing office functions, such as accounting systems, attendance and registration systems, and human resources policies;
  • Costs associated with the installation of computers, data systems, networks, and telephones;
  • Personnel expenses incurred either before or after the school’s opening, provided that these expenses are associated with initial implementation activities (i.e., as opposed to ongoing operations), such as program and curriculum development and integration, and teacher and staff recruiting. (*Note:  If personnel split their time between ongoing operational activities and initial implementation activities, only that portion of the time associated with initial implementation of the charter school is allowable as an initial operational cost.  The charter school must maintain accurate time and effort records to document the amount of time each employee works on tasks related to the initial implementation of the charter school.); and
  • Rental or occupancy costs for the school facility for a reasonable period of time in preparation for the school’s opening. 

All of the expenses described in (a)-(d) are allowable under the CSP only to the extent that they are related to the initial implementation of the charter school and cannot be met from State or local sources.  A charter school that has received State or local funds would have to demonstrate that the State or local funds are unavailable to cover the expense at issue.  If the charter school can show that the State or local funds it has received are necessary to meet expenses other than the one at issue, then the charter school has met its burden of showing that the “other initial operational cost” cannot be met from State or local sources and, therefore, is allowable under the CSP grant.

PCSGP Budget Approval

Subgrantees may only use subgrant funds as stated in their approved PCSGP budget. The PCSGP funds must supplement, not supplant, existing services and may not be used to supplant federal, state, local, or nonfederal funds. Programs may not use PCSGP funds to pay for existing levels of service funded from any other source. Supplanting is the use of PCSGP funds to pay for costs that would normally be paid using state or local funds. Supplanting is the use of PCSGP funds to pay for costs that would normally be paid using state or local funds. This primarily includes the operational costs of the school, such as rent and teacher salaries.

Factors that May Impact Eligibility of Expenditures for Reimbursement

  • Costs incurred must be one-time in nature and may not include ongoing operational costs. When making the distinction between one-time and ongoing costs, it is helpful to ask the following questions: Is the expense required to operate the school? Will the school continue to incur the expense after the subgrant has ended? Answering “yes” to either of the above questions most likely indicates that the expense is not one-time in nature, and is most likely not allowable.
  • Costs incurred must be obligated during the subgrant project period in order to be eligible for reimbursement. Therefore, costs related to developing the charter petition or for services rendered beyond the duration of the subgrant project period are not allowable.
  • Purchases or contracts for goods and services must follow pertinent procurement regulations. Procurement regulations ensure the appropriate use of federal funds, prevent conflicts of interest, and promote open competition between vendors offering similar goods and services. Most, if not all, purchases under the subgrant must comply with appropriate procurement regulations. You may find additional information on procurement in the Public Charter Schools Grant Program (PCSGP) Start-Up Sub-Grant Request for Applications and the electronic Code of Federal Regulations (CFR) at Electronic Code of Federal Regulations External link opens in new window or tab..
  • All purchases must be reasonable and necessary to the completion of the subgrant objectives or the initial operation of the school. Goods and services purchased using subgrant funds should correlate to some need reflected in the approved charter petition or the approved Work Plan in the subgrant application. Expenses will be questioned if they appear to be unreasonable or unnecessary to the essential operation of the charter school or the completion of the subgrant objectives.

Construction Costs

Public Charter Schools Grant Program (PCSGP) funds may not be used for construction. PCSGP funds may be used for necessary renovations to ensure that a new school building complies with applicable statutes and regulations that neither add to the permanent value of the property nor appreciably prolong its life but merely keep it in an efficient operating condition. Minor improvements to the facility are allowable as they relate to items needed to be compliant with the American with Disabilities Act or to meet local health and safety building codes. All costs must be reasonable and necessary. Office of Management and Budget (OMB) Circular A-122, Section 27 (rev. May 10, 2004); 2 Code of Federal Regulations (CFR) appendix B to part 230, Section 27.

Equipment Costs

As stated in CSP Nonregulatory Guidance 2014, CSP funds may be used for costs associated with the initial implementation of a charter school.  Initial implementation activities may include acquiring necessary equipment and educational materials and supplies.  Thus, in accordance with OMB cost principles, to qualify as an allowable cost, the equipment must be necessary and reasonable for the proper and efficient performance and administration of the grant.  In addition, the cost of the equipment must be included in the approved application and budget for the grant.  Equipment necessary to implement a charter school may include, but is not necessarily limited to, desks, chairs, computers, equipment related to physical education and art, and playground equipment.

Indirect Costs

For Public Charter Schools Grant Program (PCSGP) Start-Up Subgrants beginning December 1, 2021, and beyond, PCSGP Start-up Subgrant funds may be used to support indirect costs, limited to the subgrantee’s California Department of Education (CDE)-approved Indirect Cost Rates (ICR) as found at Indirect Cost Rates (ICR) for the applicable fiscal year in which the funds are expended. If the subgrantee does not have a current CDE-approved ICR, and has never received one, the subgrantee may charge indirect costs on a preliminary basis using the statewide average rate. Indirect costs are agency-wide, general management costs (i.e., activities for the direction and control of the agency as a whole). General management costs consist of administrative activities necessary for the general operation of the agency, such as accounting, budgeting, payroll preparation, personnel services, purchasing, and centralized data processing. All indirect costs must be charged against eligible program expenditures, in compliance with state and federal law and regulations, and aligned with standard accounting practices. Please see additional information on rates, eligible program expenditures, and other guidance at Frequently Asked Questions about Indirect Costs. For assistance in determining indirect cost rates, please email PCSGP@cde.ca.gov. Indirect costs must be included in the subgrantee's approved budget submitted with the initial PCSGP Start-Up Subgrant application and may not be added through subsequent budget revisions. CDE approved ICR supporting documentation will be required prior to PCSGP budget approval.

Charter Management Organizations and Educational Service Providers Costs

PCSGP subgrants awarded are made to charter public schools, not any other entity. Regardless of the charter public school’s relationship with a management organization, the charter public school and board retain responsibility for all aspects of the subgrant including but not limited to budget decisions and repayment of any misspent funds. Items purchased by the school with CSP funds are and remain the property of the school, not the management organization. Budgets may not include any management fees that the school incurs as part of the management contract but may pay for allowable activities carried out by the school or the management organization. If applicable, the full contract or agreement with the charter management organization (CMO) or educational management organization (EMO) must be included with this application to ensure that the school maintains fiscal and operational autonomy.

Pursuant to EC Section 47604, a charter school shall not operate as, or be operated by, a for-profit corporation, a for-profit EMO, or a for-profit CMO. Operate as, or be operated by, means services provided by a for-profit corporation to a charter school that include:

  1. Nominating, appointing, or removing board members or officers of the charter school.
  2. Employing, supervising, or dismissing employees of the charter school, including certificated and noncertificated school personnel.
  3. Managing the charter school’s day-to-day operations as its administrative manager.
  4. Approving, denying, or managing the budget or any expenditures of the charter school that are not authorized by the governing body of the charter school.
  5. Providing services to a charter school before the governing body of the charter school has approved the contract for those services at a publicly noticed meeting.

Any applicant which does not meet the requirements above will not be eligible for funding. As a general matter, subgrantees must avoid apparent and actual conflicts of interest when administering subgrants. For additional information on conflicts of interest, please see Section G of the federal CSP Nonregulatory Guidance. Schools choosing to engage a nonprofit educational service provider (ESP) or EMO or CMO must demonstrate that they and their governing boards are independent of the provider, and that all fees and agreements are fair and reasonable. The ESP, EMO or CMO does not qualify as an eligible applicant nor may it hold or manage a subgrant awarded to a school. Schools must exercise special care to ensure that a direct representative of the applicant school, independent of the ESP, EMO or CMO, is identified to administer the subgrant, as required per 34 CFR 74.40-48, 75.524-525, and 80.36 (procurements) and articulated in the federal CSP January 2014 Nonregulatory Guidance (see links “Regulations and Guidance” section below). Contracts between schools and CMOs, EMOs, and ESPs will be subject to review as part of ongoing eligibility review processes per ESEA Section 4303 (f)(1)(C)( i)(I).

Legislation, Regulations, and Guidance

All Public Charter Schools Grant Program (PCSGP) federally funded applicants must adhere to the following:

LEGISLATION

REGULATIONS

GUIDANCE

Nonregulatory Guidance

Other Guidance

Subgrantees are prohibited from using federal grant funds for fundraising, civil defense, legal claims against the state or federal government, and contingencies. For a detailed description of these expenditure classifications, refer to the California School Accounting Manual (CSAM), 2024 Edition. Visit Definitions, Instructions, and Procedures for viewing and downloading information.

Additional Documentation and Evidence Requirements

In addition to financial documentation, the following may be required at any point during universal or targeted monitoring:

  • Evidence of meeting and adhering to all purchasing and procurement requirements
  • Evidence of developed protocols for each purchased system, including but not limited to a historical inventory process for items easily pilferable or whose value exceeds five hundred dollars or more
  • Evidence of service agreements and/or contracts with a clear outline of expectations for deliverables and/or outcomes
  • Evidence that purchases will support education program, academic model, and project goals submitted in the subgrantees PCSGP application
  • Evidence of completion of proposed services (e.g. deliverables, sign-in sheets, agendas, etc.)
  • Evidence that the purchases support the proposed student and/or staff population
  • Evidence that travel expenses align with the approved travel policy
  • CSP Assurance documentation may be required for any expenditures purchased with PCSGP funds
  • Additional evidence or documentation, as deemed necessary

Allowable Expenditures

Personnel Expenditures

Expenditure Category Purpose/Description Funding Restrictions Planning Phase Implementation Phase

Essential Staff Salaries and Associated Benefits

Object Codes: 1000s, 2000s, 3000s

Salaries to be paid to school employees deemed essential during pre-open period

Examples: Teachers, School Leaders, Specialized Instructional Personnel

Cost allowable ONLY prior to school opening date. Must be for a reasonable amount of time (generally no more than six months of salary) and reasonable cost (Ex: staff position x months x salary = total). Benefits may only be claimed for associated claimed salaries. Salaries and wages paid to students are not allowed.  Post-retirement health benefit (PRHB) costs are not allowed. 

Additional Documentation Required at Expense Reporting:
  • Time and Effort Reporting Documentation (e.g. personnel reporting, pay stubs, timesheets, etc.)
Y
N

Staff Salaries and Associated Benefits for Necessary Planning Activities

Object Codes: 1000s, 2000s, 3000s

Salaries to be paid to school employees conducting necessary planning activities during pre-open period.

Examples: Office administrator salaries

Cost allowable ONLY prior to school opening date. Must be for a reasonable amount of time (generally no more than six months of salary) and reasonable cost (Ex: staff position x months x salary = total). Benefits may only be claimed for associated claimed salaries. Salaries and wages paid to students are not allowed.  Post-retirement health benefit (PRHB) costs are not allowed.

Additional Documentation Required at Expense Reporting:
  • Time and Effort Reporting Documentation (e.g. personnel reporting, pay stubs, time sheets, etc.)
  • Job Description, including essential pre-opening activities
Y
N

Instructional Staff Training and Professional Development Stipends

Object Codes: 1000s, 2000s, 3000s

Training stipends for staff designed to contribute to their professional growth and support participation in professional learning opportunities.

Examples: Stipends for professional development, conferences, workshops, school visits to other charter schools occurring outside of contract hours (for example: summer PD, weekends, after contract day begins/ends)

All professional development and training must be aligned to the grant management plan and support proposed outcomes and must occur outside of contract duties and times. Stipend amounts must be reasonable and aligned to salaries. Must include duration and number of staff to receive stipend (e.g. number of staff x amount of stipend x days/times = total). Additional justification may be requested for extraordinary costs including out-of-state travel.

Additional Documentation Required at Expense Reporting:
  • Time and Effort Reporting Documentation (e.g. personnel reporting, time sheets, PD sign in sheets, Certificates of Completion, etc.)
Y
Y

Additional Role Stipend

Object Codes: 1000s, 2000s, 3000s

To support staff in taking on additional essential responsibilities to support necessary start up activities outside of their contracted hours and duties.

Examples: data coordination, testing coordination, student and staff recruitment, mentorship roles, PLC leadership, developing instructional materials, etc.

All roles must be aligned to the subgrant management plan and support proposed outcomes and must occur outside of contract duties and times. Stipend amounts must be reasonable and aligned to salaries. Must include duration and number of staff to receive stipend (e.g. number of staff x amount of stipend x days/times = total).

Additional Documentation Required at Expense Reporting:
  • Time and Effort Reporting Documentation (e.g. personnel reporting, time sheets, agendas/meeting minutes, etc.)
  • Job Description, including essential start-up activities
Y
Y

Computer Hardware and Software

Expenditure Category Purpose/Description Funding Restrictions Planning Phase Implementation Phase

Security System, Internet and Phone Services

Object Codes: 5000s

Fees related to technology services.

Examples: Internet, phone, and security system services.

 Once a facility agreement has been signed AND the building is occupied, technology services may be charged to the subgrant for a reasonable length of time (generally up to three months). All costs must be before the first day of instruction.
Y
N

Software

Object Codes: 4000s, 5000s

Centralized administrative computer software programs. May be delivered online and/or via disk.

Examples:

Administrative: Inventory software, visitor

Subscription and license fees are allowable for software purchases for reasonable and necessary set-up costs and fees. Renewals are not allowable. Purchases must include the duration of the subscription/license and may not exceed reasonable quantities for the proposed student population and/or administration (e.g. number of students x cost per student x number of years).
Y
Y

Hardware

Object Codes: 4000s, 5000s, 6000s

Electronic devices capable of reading, processing, and executing software programs. Includes peripherals and expansions.

Examples:

Administrative: Front desk desktop, laptops, servers, central printer, central copier, visitor registration hardware, inventory hardware, principal computer and printer, general office equipment, security systems.

Classroom: Laptops, desktops, tablets, servers, wireless access points, charging carts, classroom-level printers, etc.

School Library/Media Center/Computer Lab: Desktops, docking stations, laptops, monitors, printers, tablets, servers, wireless access points, charging carts, circulation/check-out hardware, etc.

Makerspace/Science Lab: Includes 3D printers, electronic test equipment, any devices requiring electricity or battery power, etc.

 Costs may not include monthly service fees. Only the initial one-time set up payments can be charged to the subgrant, no lease payments are allowable. Must be necessary for the success of the education plan. Purchases may not exceed reasonable quantities for the proposed student population and administration. High priced or unusual equipment may require product specifications and justifications for each item. Capital improvements are not allowable.
Y
Y

Technology Installation

Object Codes: 5000s

Costs associated with the installation of instructional networks, hardware and software.

Examples: Installation of computers, classroom interactive systems, wiring computer lab, installation and wiring of school-wide wireless network, data systems and telephones, etc.

Scope of services/deliverables may not exceed reasonable quantities for the proposed student population and administration. High priced or unusual costs may require justifications for each item. Capital improvements are not allowable.
Y
Y

Classroom and School Library

Expenditure Category Purpose/Description Funding Restrictions Planning Phase Implementation Phase

Library Books

Object Code(s): 4000s

Books for use in the school library/media center and in individual classroom libraries. May be used as non-circulating reference or for student and teacher check-out.

Examples: Encyclopedia sets, fiction and non-fiction books, novels, book series, book sets, etc.

May include electronic media (e-books). If electronic media takes the form of an annual subscription or renewable license, renewals are not allowable.
Y
Y

Textbooks, Curriculum, Instructional/Assessment Tools

Expenditure Category Purpose/Description Funding Restrictions Planning Phase Implementation Phase

Textbooks and Curriculum

Object Codes: 4000s

Textbooks and curriculum.

Examples: Textbooks, supplemental instructional aids, student workbooks, curriculum packages (printed or electronic), teacher guides, supplemental literacy programs, etc.

Must be reasonable for the proposed student population for each grade level. May include physical and electronic media (e-books) and workbooks. If electronic media takes the form of an annual subscription/renewable license, renewals are not allowable.

Y

Y

Instructional/ Assessment Tools

Object Codes: 4000s

Instructional and assessment tools used to support the educational program.

Examples: Reading level assessments, testing materials, diagnostic tools, formative and summative assessment tools, etc.

Must be reasonable for the proposed student population for each grade level. May include physical and electronic tools. If electronic tools take the form of an annual subscription/renewable license, renewals are not allowable.

Y

Y

Consumable Materials and Supplies

Expenditure Category

Purpose/Description

Funding Restrictions and Additional Requirements

Planning Phase

Implementation Phase

Classroom Consumables

Object Codes: 4000s

Expendable items which are consumed as they are used. May include items with a reasonable life expectancy of less than a year.

Examples: Student composition notebooks, paper, pencils, toner, crayons, etc.

Expenditures may be grouped into a single line item, supported by a list of materials and supplies needed by grade level or classroom (e.g. number of classrooms x annual consumable estimate x years). Must reflect the proposed student population and projected enrollment growth.

NOTE: supplies or materials beyond reasonable start-up costs may be considered recurring expenses and may be unallowable

Y

Y

Administrative Consumables

Object Codes: 4000s

Expendable items which are consumed as they are used. May include items with a reasonable life expectancy of less than a year.

Examples: Paper, pencils, staples, central copier toner, etc.

Expenditures may be grouped into a single line item, supported by a list of materials and supplies (e.g. annual consumable estimate x years).

NOTE: supplies or materials beyond reasonable start-up costs may be considered recurring expenses and may be unallowable

Y

Y

Furniture, Fixtures, and Equipment

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Instructional Equipment

Object Codes: 4000s, 6000s

Non-computer hardware for instructional use.  Durable goods with a reasonable life expectancy of over a year. May also include durable instructional equipment for special classes.

Examples: projectors, screens, smartboards, document cameras, audio amplification, musical instruments, PE equipment, art, equipment, calculators, headphones, STEAM equipment, agricultural equipment, outdoor/environmental classroom equipment, culinary arts program equipment, storage for any instructional equipment, etc.

All classroom-level equipment and furniture must align to the academic model and support effective instructional practices. Costs may not include monthly service fees. Purchases may not exceed reasonable quantities for the proposed student population. High priced or unusual equipment will require product specifications for each item.

Y

Y

Furniture & Fixtures

Object Codes: 4000s

Furniture and fixtures. Non-computer hardware for centralized use. Durable goods with a reasonable life expectancy of over a year. 

Examples:

Classroom: Desks, chairs, tables and bookshelves, etc.

Administrative: Desks, chairs, tables, fireproof filing cabinets, etc.

School Library/Media Center/Computer Lab: Desks, chairs, tables, bookshelves, book return, circulation desk, dictionary stands, book displays, podiums, DVD players, listening stations, paper cutters, label makers, binding equipment, book carts, document cameras, projectors, audio amplification, etc.

All equipment and furniture must align to the academic model and support effective instructional practices. Costs may not include monthly service fees. Purchases may not exceed reasonable quantities for the proposed student population. High priced or unusual equipment will require product specifications for each item.

Y

Y

Playground Equipment

Object Code: 4000s, and 6000s

Playground structures and equipment

Examples: Playscapes, shade structures, temporary/moveable fencing/barriers for student safety, tetherball sets, swing sets, portable basketball hoops, bleachers, storage for outdoor equipment, etc.

Equipment must be a part of the student curriculum. All equipment should be reasonable to the student population size and age. Cannot be permanently affixed to the building/facilities and must be relocatable. Costs associated with construction activities (engaging an architect, engineer, landscape architect) are not allowable.

Additional Documentation Required at Expense Reporting:
  • Assurance from charter school governing board that equipment is not permanently affixed and can be relocatable and meets all applicable CSP nonregulatory guidance.

Y

Y

Transportation

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Transportation

Object Codes: 5000s and 6000s

One-time startup costs associated with providing transportation to students to and from the charter school

Examples: Bus, Van, Transportation Service Agreement

Vehicle purchases must be titled to the governance board of the charter school. Subgrantees must maintain documentation for vehicle purchases. Additionally, subgrantees must ensure that the vehicle is used to transport students to and from the charter school. For example, vehicles cannot be purchased to transport teachers to and from student homes, to and from training, or between campus locations. Only the one-time payments can be charged to the subgrant, no lease payments are allowable.

Additional Documentation Required at Expense Reporting:
  • Assurance from charter school governing board that the school assumes all ongoing costs (e.g. maintenance, insurance, gas, etc.), and meets all applicable CSP nonregulatory guidance.

Y

Y

Professional Development Plan

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Professional Development Instruction and Curriculum Development

Object Codes: 5000s

Registration fees for conferences, professional development training packages, and services which are designed to aid in developing curriculum and/or supporting resources and understanding techniques for instruction.

Examples: Professional development training packages; conference attendance; and consulting fees to develop program goals and objectives, assessment tools, curriculum.

Scope of services/deliverables must align with the school’s education program. Consultant costs must be reasonable, necessary, supported by a clear scope of services/deliverables, and less than one full-time employee's salary per fiscal year (e.g. professional development training x number of full-day trainings).

Y

Y

Travel

Object Codes: 5000s

Travel costs for principal, staff, and board to attend conferences and training workshops including all professional development, site visits to other schools, etc.

Examples: Airfare, rental car fees, mileage, lodging, registration, and per diem meals (when not provided by the training host).

Must include dates and duration, number of staff to participate in training. Additional justification may be requested for out-of-state travel, or extraordinary costs.  Schools must use the most economical travel rate. Travel unrelated to the educational plan submitted in the PCSGP application is not allowable.

Additional Documentation Required at Expense Reporting:
  • Agenda, registration or certificate of completion for professional development attended.
  • Evidence of actual travel expenditures and school’s reimbursement process, if applicable.

Y

Y

Teacher and Leader Coaching and Evaluation

Object Codes: 5000s

Services related to the development of teacher and leader evaluation tools and a strategy for implementation.

Examples: Consulting fees for personalized coaching and development for teachers and or/administrators

All professional services must be aligned to the academic model. Expectations for all deliverables and training outcomes must be clearly articulated in service agreements.

Y

Y

Facility

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Insurance and Utilities

Object Codes: 5000s

Fees related to facilities.

Examples: Insurance and utilities.

Once a facility agreement has been signed AND the building is occupied, facility related fees may be charged to the subgrant for a reasonable length of time (generally up to three months). All costs must be before the first day of instruction.

Y

N

Facility Rent

Object Codes: 5000s

Mortgage, lease, or rent payment for school facility or office facility PRIOR to the start date of school.

Cost is allowable only from the date of the award to the start date of school for a reasonable period of time (generally up to 3 months) and reasonable lease rate. Home office is not allowable.

Additional Documentation Required at Expense Reporting:

  • Facility lease must include effective dates, rent, and facility address

Y

N

Facility Minor Repairs

Object Codes: 4000s and 5000s

To facilitate necessary repairs of building and equipment to keep facilities in efficient operating condition.

Minor improvements to the facility are allowable as they relate to items needed to be compliant with the American with Disabilities Act or to meet local health and safety building codes. PCSGP funds may not be used for construction, major renovation, remodeling of facilities, or any repairs that add to the permanent value of the property or appreciably prolong its life but merely keep it in an efficient operating condition. Any activity conducted under the supervision of an architect, engineer, and landscape architect is considered construction.

Additional Documentation Required at Expense Reporting:
  • Documentation that repairs are necessary for compliance with local, state, or federal requirements (e.g. inspection report)

Y

Y

Facilities Consulting and Services

Object Codes: 5000s

Services for acquiring and preparing facilities

Examples: securing bids for temporary spaces directly related to opening or expansion of a charter school.

Services and consultation for the acquisition and preparation of school facilities. Facility purchases, new construction, major renovation or remodeling of facilities is not allowable. Any activity conducted under the supervision of an architect, engineer, and landscape architect is considered construction. Funds cannot be used for the purchase of portable classrooms, engineering, permits, or tear down.

Additional Documentation Required at Expense Reporting:
  • Justification for expenditures and why the expense cannot be covered by local funding sources.

Y

Y

Community Engagement, Outreach and Recruitment

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Advertising, Outreach, and Recruitment of Staff and Students

Object Codes: 5000s

Informational materials and intangible items and services to educate the community and recruit prospective staff and students about the charter school mission, program, contacts, registration process, lottery, and performance outcomes.

Examples: Design and printing of brochures and postcards, radio spots, exterior school signage, television ads, website design, newspaper ads, outreach consultant, recruiting sites such as EdJoin, mailers, banners, social media ads, etc.

Expenditures must align with the school’s outreach and communication plans. Consultant costs must be reasonable, necessary, supported by a clear scope of services/deliverables, and less than one full-time employee's salary per fiscal year. Promotional products or gift items are not allowable.

Y

Y

Postage

Object Codes: 5000s

Postage for promotional mailing to promote new school program, and keep stakeholders informed and for student and parent communication.

High costs must be supported by school’s outreach and communication plans. Expenditures may be grouped as one budget line item, supported by a list of materials and supplies needed (e.g. by grade level).

Y

Y

Memberships, Fees, and Other Services

Expenditure Category

Purpose/Description

Funding Restrictions

Planning Phase

Implementation Phase

Memberships to charter school support Organizations

Object Codes: 5000s

School association fees or dues for fee-based charter school support organizations.

First year annual fees/dues ONLY; renewal dues are not allowable.

Y

Y

Fiscal Services and Consulting

Object Codes: 5000s

Costs for fiscal services related to start-up expenses and organization development.

Examples: Backoffice provider or fiscal consulting fees to develop organization policies and procedures, business plan, internal controls, accounting systems, and financial reporting.

Back-office provider or fiscal consulting service fees must be reasonable, necessary, and supported by a clear scope of services/deliverables. Cost is allowable only from the date of the award to the start date of school for a reasonable period of time (generally up to 6 months) and reasonable rate.

Y

N

Legal Services and Consulting

Object Codes: 5000s

Costs for legal services related to start-up expenses and organization development.

Examples: Legal costs related to start-up activities such as creation or review of Board policies, school policies (Staff or Parent Handbook), governance training, and lease negotiations.

Legal fees must be reasonable, necessary, and supported by a clear scope of services/deliverables. Legal fees for litigation, authorizer disputes, ongoing costs, and any activities that are deemed by the CDE to be beyond the scope of charter school start up are not allowed.

Additional Documentation Required at Expense Reporting:

Itemized supporting documentation

Y

Y

Staff Onboarding Costs

Object Codes: 5000s

Costs associated with required start-up staff onboarding.

Examples: Costs of fingerprinting, tuberculosis (TB) testing, background checks, training (e.g. mandated reporting, etc.).

Costs allowable in preparation for school opening and in the first year of operation only. Expenditures may be grouped as one budget line item, supported by a list of costs (e.g. by grade level).

Y

 

Y

 

Third-party External Review fees

Object Codes: 5000s

One time cost for third party external reviewer fees associated with PCSGP close out process.

Examples: Accreditation Reviews (e.g. Western Association of Schools and Colleges) External Third-Party Reviewers

Costs associated with third-party external reviews for PCSGP close out are allowable, unless that external review is conducted by the charter school’s authorizer as a part of regular oversight duties.

Failure to provide the third-party external review prior to the final subgrant payment will result in the CDE withholding ten percent of the total subgrant award.

N

Y

First Year Audit

Object Codes: 5000s

Costs associated with the audit of the charter school’s first fiscal year in operation.

One-time audit fees must be reasonable and supported by a clear scope of services/deliverables.

N

Y

Non-Allowable Expenditures

In an effort to provide clear guidance, the California Department of Education (CDE) has determined that the items on this list would be considered non-allowable expenditures of Public Charter Schools Grant Program (PCSGP) Start-Up Subgrant funds. While this is not a complete list of non-allowable items, the list does provide some guidance regarding commonly seen non-allowable expenditures. If there is a question regarding an allowable expenditure, it is advised that you contact the PCSGP Office at PCSGP@cde.ca.gov.

  • After school programs
  • Audits (first fiscal year is allowable only)
  • Authorizer Fees
  • Alcohol
  • Back-office provider fees (only allowable for subgrantees during their planning phase)
  • Conference travel unrelated to the educational plan submitted in the PCSGP application
  • Contingency or “petty cash” funds
  • Contributions and donations to others
  • Excessive installation costs for equipment purchased with PCSGP funds
  •  Entertainment costs of any type, including meals or banquets
  • Facility fees such as the rental or lease of buildings (only allowable for subgrantees during their planning phase)
  • Facility purchases, new construction, major renovation or remodeling of facilities
  • Farm animals for show and selling, only farm animals for the purposes of breeding can be charged to the subgrant
  • Fines and penalties such as late fees, bounced check fees
  • Food is always non-allowable unless to reimburse employees when traveling more than 50 miles from home for professional development
  • Fund Raising costs of any kind
  • Furniture and appliances for staff lounges
  • Gifts, door prizes, etc.
  • Grant Writer fees
  • Insurance/Self-Insurance (only allowable for subgrantees during their planning phase)
  •  Interest and other financial costs
  • Lease payments for equipment (e.g., copy machines) or passenger vehicles including automobiles, trucks, buses, utility vehicles, airplanes, boats, and golf carts. Only the initial one-time set up payment can be charged to the subgrant. Must be necessary for the success of the education plan.
  •  Legal fees for litigation, authorizer disputes, ongoing costs, and any activities that are deemed by the CDE to be beyond the scope of charter school start up are not allowed.
  • Mileage not related to professional development
  • Maintenance contracts or agreements
  • Post-retirement health benefit (PRHB) costs (2 Code of Federal Regulations [CFR] Section 200.431[h])
  • Promotional items, such as T-shirts, pens, cups, key chains, and other memorabilia
  •  Renewal fees of any kind such as software, charter school support organization membership, student information systems.
  •  Student or non-teacher lodging, food, individual transportation, or dues for student organizations
  • Student tuition costs or university fees
  •  Salaries and benefits for Certificated and Classified positions (only allowable for subgrantees during their planning phase)
  • Salaries or wages paid to students
  • Separation leave costs (2 CFR Section 200.431[b])
  • Severance costs (2 CFR Section 200.431[i])
  • Student expenses/direct assistance to students
  • Travel, Out of State, not directly related to educational plan submitted in the PCSGP application. Allowable Out of State Travel must be pre-approved by the CDE. Out of country travel is never allowed with PCSGP funding.
  • Uniforms for Students and Staff
  • Others, as evaluated on a case-by-case basis

Return to PCSGP Start-Up Subgrant Resources

Questions:   PCSGP Office | PCSGP@cde.ca.gov | 916-322-6029 
Last Reviewed: Thursday, May 01, 2025
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