Introduction                                                                                            100

Programs That Generate EPE                                                                  200

Additional Issues Concerning the Generation of EPE                                206

Support Services, Evaluation, Intake/Assessment                                     206.01

EPE in Correctional Facilities                                                                   206.02

GED Testing                                                                                            206.03

Unsupervised Student Activities                                                                206.04

One Teacher with Same Student in More Than One Program                    206.05

Family Literacy Integrated Instruction                                                        206.06

Drivers Education                                                                                     206.07

EPE Aid Calculation and Reimbursement                                                  300

Additional Issues Concerning EPE Aid Calculation                                   306

Work Experience in an Occupational Education Program                         306.01

Collaboration with Volunteer Tutor Organizations                                    306.02

In-person Tutoring                                                                                  306.03

EPE Program Requirements                                                                    400

General Requirements                                                                             401

Other Requirements                                                                                402

English Speaking Students                                                                       402.01

Limited English Proficient Students                                                          402.02

GED Preparation Students                                                                      402.03

Facility Requirements                                                                              402.04

Agency Requirements                                                                              402.05

General Requirements for Distance Learning Programs                             402.06

General Requirements for Work Experience Programs                             402.07

Teacher Requirements                                                                             406

Adult Education Instructor Certification Titles                                          406.01

Certification Renewals                                                                            406.02

Teachers of Distance Learning Programs                                                406.03

Program Approval                                                                                 407

Occupational Education                                                                         407.01

Work Experience Programs                                                                   407.02

Distance Learning Programs                                                                   407.03

Traditional Programs                                                                              407.04

Records and Documentation                                                                  408

General                                                                                                 408.01

Attendance in Classroom Programs                                                       408.02

Burden of Proof                                                                                    408.03

Attendance Rosters                                                                               408.04

Computerized Attendance                                                                     408.05

Unique Student Identifiers                                                                     408.06

Records Retention                                                                                408.07

Record Keeping in Distance Learning Programs                                    408.08

Record Keeping in Work Experience Programs                                    408.09

Staff Development                                                                                409

Waivers                                                                                                410

Traditional Program Waivers                                                                 410.01

Over-enrollment                                                                                    410.02

Occupational Course Waivers                                                               410.03

EPE Programs in School Districts that do not Wish to Operate Their Own Programs                                                                                              411

BOCES Operated Programs                                                                 411.01

School District Consortia                                                                       411.02

School District Boundaries and Traditional and Distance Learning Programs                                                                                              411.03

Statement of General Assurances                                                           412

EPE and Other Funding Sources                                                            413

Additional Issues Regarding Program Requirements                                414

Tuition                                                                                                   414.01

Coordinated Programs with Community Colleges                                   414.02

Equipment Disposal                                                                               414.03

Individual Education and Employment Preparation Plan Requirements     414.04

Appendices

A. SA160.1 and SA160.2 State Aid Claim Forms

B. Statement of General Assurances

C. Program Implementation of Crossroads Café and Application Form

D. State Aid Final Expenditure Reports

In 1984 the New York State Legislature enacted the Employment Preparation Education Program (EPE) to provide State aid to public schools and Boards of Cooperative Educational Services (BOCES) to support adult education programs. In the first year, EPE provided approximately $10 million in funding for these programs. Since EPE was enacted as an uncapped funding source (i.e. there was no ceiling), EPE grew as educational agencies began to develop programs to meet the growing demands in their communities. By 1994 the EPE program had grown to over $90 million, and the number of adult students had grown to over 250,000 annually. Statutory authority for EPE can be found under Sections 207 and 3602, Subsection 24 of Education Law and Sections 168.1-5 of the Regulations of the Commissioner of Education.

In 1995 the legislature amended the EPE legislation. EPE funds were capped at $96.18 million. Also, because there was a perception that more accountability was needed for a funding source this large, additional program approval and oversight provisions were added. As the EPE program grew and as local agencies sought to expand the range of services that could be offered to their communities, many questions arose regarding interpretations of EPE law and regulations. Information was disseminated to the field through a number of technical advisories and question and answer documents. Also, specific rulings were made at the request of individual program administrators and communicated via letter.

This manual has been developed as a resource for EPE program administrators. It contains information taken from a number of documents as well as new material developed to answer some of the most common questions regarding the program. It is anticipated that the manual will be modified when there are changes in the program or as additional information is available.

EPE is a program that provides funding to public school districts and BOCES that offer educational programs for adults leading to a high school diploma or a high school equivalency diploma. In addition, a number of other programs have been approved to generate EPE aid. To be eligible to generate EPE aid, a student must be 21 years of age or over without a diploma issued by any state or territory of the United States including American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U.S. Virgin Islands. EPE aid differs from State or federal categorical programs in two important ways. Unlike categorical programs that are generally disseminated through a competitive request for proposal (RFP) process, any school district or BOCES that meets the criteria for new EPE programs will receive funding. Instead of a grant application, the agency must submit for approval a comprehensive plan of service detailing the programs that will be provided, the number of students to be served and the number of contact hours that are anticipated to be generated. The EPE aid that an agency can receive is capped when the comprehensive plan is approved. This allocation may be modified at the interim point as projections of contact hours to be generated by each agency are adjusted. Another major difference is in the funding mechanism itself. When an agency receives a categorical grant, a budget is submitted to the State Education Department (SED) detailing how the money will be spent. A portion of the grant is transmitted at the beginning of the program year and the agency can request funds throughout the course of the program. Reimbursement for EPE educational services provided is based on the number of contact hours that have been generated. A contact hour is defined as 60 minutes of instruction given by a certified teacher for each student (section 168.2(c) of the regulations of the Commissioner). For example, if one teacher has ten students in a class for one hour, ten contact hours would be generated. The teacher must be in the employ of the educational agency claiming the funds pursuant to an approved comprehensive plan of service (section 403).

Educational agencies receive reimbursement based on a state aid formula that establishes a contact hour rate. EPE funds must be spent on the EPE program. EPE aid is one of several funding streams available to support educational programs for adults. EPE is not intended to be the sole source of support for these programs, and should be blended with other resources.

• Students who are 21 years of age or older who have been issued an Individualized Education Plan (IEP) diploma pursuant to Section 100.9 of the Regulations of the Commissioner are eligible to generate EPE aid.
• In the 2000-01 session, the New York State legislature enacted legislation authorizing the Commissioner of Education to set aside up to $2.5 million to serve individuals 21 and above who have a high school diploma or a high school equivalency diploma but "fail to demonstrate basic educational competencies" (section 168.6(b) of the regulations of the Commissioner). This translates to 2.90 percent of the entire amount allocated to school districts and BOCES or $2,900 for every $100,000 allocated. These funds and students must be reported and tracked separately. A separate attendance roster or register is not needed. However, the school must be able to identify these students. EPE claims for these students will be separate. Information regarding services to this population will be included in the application package.

Subsequent sections of this manual will provide details regarding the EPE program as well as information regarding the integration of EPE funds with other resources available to provide educational services. Specific questions regarding the program should be directed to the Workforce Development Technical Support Team at (518) 474-8920.

Initially, EPE programs consisted exclusively of traditional adult education programs and adult high school credit programs. Both of these programs were targeted primarily at attaining a high school diploma or equivalency and were taught in a classroom setting by a certified teacher. Subsequently, three additional areas were added to the list of programs that could generate EPE aid: 1. Distance learning adult education programs, sometimes referred to as "non-traditional", in which students are not present in the classroom, but their work is supervised by a certified teacher; 2. Adult occupational education programs designed to teach the skills needed to obtain employment in a specific field; 3. Work experience programs combining classroom training with on-site job experience.

Traditional adult education programs occur in a classroom setting and are taught by a certified teacher (see section 406). EPE aid is generated based on student contact hours or "seat time" (see section 302). A range of different programs fall into the traditional category:

• Adult Basic Education – Instruction in reading, mathematics, oral and written communication, computer skills, and life skills for students reading below the ninth-grade level.
• English for Speakers of Other Languages (ESOL) – Instruction in listening, reading, mathematics, oral and written communication, computer skills, and life skills for individuals with limited English proficiency.
• General Education Development (GED) Test Preparation – Instruction for students reading at the ninth-grade level or above that is specifically designed to prepare the student for the Test of General Education Development (GED).
• Basic Education in the Native Language (BENL) – Basic literacy skills in the student’s native language designed to teach individuals with no or very low literacy skills in their own language.
• Action for Personal Choice (APC) – An intensive interactive course designed to assist adults in taking responsibility for their own behavior. This course helps students to develop critical thinking skills and decision-making skills. Teachers of APC must have specific and appropriate training (see section 406).
• Career, Family and Life Skills (CFLS) (formerly Adult Life Management) – A program using the SED approved curriculum framework designed to assist individuals in the area of communications, budgeting, parenting, relationships, and nutrition. Teachers of CFLS must have specific and appropriate training (see section 406).
• Parenting/Family Literacy Programs – Parenting education programs provide the skills and knowledge needed to effectively raise children. Family Literacy Programs incorporate activities that include interactive literacy activities between parents and their children. The purpose of the family literacy program is to break the intergenerational cycle of under-education by providing an environment where children and parents learn together. In both types of programs, to generate EPE aid, the parents must be EPE eligible.
• Crossroads Café – An adult level ESOL video program that may be used in a traditional or distance learning setting. The program consists of a series of videotapes and accompanying workbooks. A special application form (see Appendix C) requesting specific program information must be submitted with the EPE Comprehensive plan of service.
• Job Club/Job Readiness/Employability Skills Training – Includes a range of different activities designed to teach job seeking and keeping skills. Also included in this category are career counseling programs.
• Citizenship Education – A program designed to teach the skills needed to pass the United States Citizenship Test.
• Others – Other programs may be approved to generate EPE funds (see section 407.04). These programs should be submitted as part of the EPE comprehensive plan of service (see section 403).

Distance learning programs are those that are not conducted in a traditional classroom format. Students who are able to attend programs in a traditional setting should be encouraged to do so whenever possible. Only distance learning programs approved by the New York State Education Department in the applicant’s comprehensive plan of service may be used to generate EPE aid. To be approved to offer a distance learning program, agencies must submit information such as intake and assessment, record keeping, role of the teacher, documenting student activities, documenting teacher time, determining progress and completion, and program duration (see section 407.03). Teachers for all of these programs must have specific and appropriate training (see section 406). The following programs have been approved for the EPE Program:

• Giving Ready Adults a Study Program (GRASP) – Designed for adults with a minimum reading level of 8.0 who are seeking a high school equivalency diploma. Students must be able to work independently and devote at least 6 hours per week to studying. Individualized home study packets are delivered twice a month via the regional library network, by mail or by hand.
• External High School Diploma Program (EDP) – An assessment program for adults over 21 leading to a high school diploma in which adults demonstrate academic knowledge and skills gained prior to and throughout the course of the program. These skills are demonstrated through a system of generalized life skill competencies and one individual competency in a particular occupation, special skill or academic area. An eighth grade level in reading is required. Currently, candidates who successfully complete the EDP are awarded a local high school diploma issued by a participating school district. Local high school diplomas will not be issued for most students after the year 2004.
• GED on TV – A home study course offered on public television that prepares participants to take the GED test. Three workbooks and 43 program tapes published by Kentucky Educational Television (KET) are used along with other materials. Students view the videotapes either on television or by playing copies of the videotape on their VCR, after which they complete assigned work. It is recommended that students have an eighth grade level in reading. EPE can be claimed for this program only when certified teachers provide instruction. In the 2001-02 program year, GED on TV will be replaced by GED Connection which is designed to teach the skills needed to pass the GED 2002 test.
• Career, Family and Life Skills (CFLS) Home Study (Formerly Adult Life Management Home Study) – For agencies with an approved Career, Family and Life Skills program, the CFLS home study program may be offered. This program can be offered by itself, however, it is recommended that it be incorporated into another distance learning program offering. If CFLS is incorporated into another distance learning program, the teacher must have been trained in CFLS.
• Crossroads Café – The same program described under the "traditional" area may be used in a distance learning model and would generate EPE contact hours using the distance learning formula (see section 303). Crossroads Café may also be taught as a hybrid program combining both classroom and home study. Distance learning Crossroads Café should generally not be used for students at low ESOL proficiency levels. A special application form (see Appendix C) requesting specific program information must be submitted with the EPE comprehensive plan of service.
• Learn to Read/Another Page – A televised beginning reading program that is used to help adult students develop the reading skills needed to enter the GED on TV program. Learn to Read is designed for students reading below the third grade level while Another Page is for students reading at the fifth to eighth grade levels. This home study course is offered on public television or video and can only be used to generate EPE aid when a certified teacher employed by the school provides instruction.
• Home Study Component of Health Promotions for Adult Students – Only available to agencies with an approved GRASP program. The components must be incorporated as part of the GRASP packet of lessons. Instructors must be trained in the GRASP program as well as in health promotions. Components include nutrition, first aid, health insurance, exercise, health care, resources, substance abuse, and child safety.
• Math Basics – A televised mathematics program for students who need a slower paced program. This home study course is offered on public television or video and can only be used to generate EPE aid when a certified teacher provides instruction.
• Citizenship Home Study – A program designed to teach the skills needed to pass the test for US citizenship. A new video series, similar to the Crossroads Café series, entitled "On Common Ground" will soon be available for distance learning delivery.
• Workplace Essential Skills - A program designed to teach the skills required to obtain and retain employment. This program combines both video and internet approaches. It is anticipated that this program will be approved to generate EPE aid for distance learning during the 2001-02 program year.
• Connect with English - A distance learning ESOL program. It is anticipated that this program will be approved to generate EPE aid for distance learning during the 2001-02 program year.

Additional distance learning programs may be approved to generate EPE aid at the discretion of the Commissioner of Education. (see section 407.03.)

Any high school credit-bearing course in which an adult (21years of age and over) participates to pursue his/her high school diploma can be used to generate EPE aid. The course must be taught by a teacher with K-12 certification in the field in a classroom setting. It is the responsibility of each school district or BOCES to comply with Commissioner's Regulations and Education Department Policy for awarding high school credit.

Non-credit adult occupational education courses may be used to generate EPE. The courses must be at least 100 hours in length and taught by a teacher with appropriate adult or K-12 certification. These programs must provide sufficient training to provide the skills needed for the student to obtain employment. Each of these courses must be approved. Information on each course must be submitted with the comprehensive plan of service (see section 407.01). A waiver may be requested for programs that are less than 100 hours if they provide sufficient training for the student to obtain employment (see section 410.03 ). The hours need not be done by the student in the same year and can include one course or a sequence of courses.

Work Experience Programs are unpaid, structured and supervised work activities/tasks for a specified period of time in a public or private, profit or not-for-profit setting that enhance and support a written Individual Education and Employment Preparation Plan (IEEPP) for the adult student. In addition to the on-site work experience, the program must include traditional classroom education comprising at least 30 percent of the total program hours. The classroom component can include any traditional program that the agency is approved to offer in their Comprehensive plan of service. Agencies must submit the program design and curricula for the work experience program as part of the comprehensive plan of service (see section 402.07).

206.01 - Support Services – Evaluation, Intake Assessment

The legislation requires evaluation and intake assessment by a teacher leading towards the development of Individual Education and Employment Preparation Plans (IEEPP) for individual adult students. This also may include screening for learning disabilities. This activity generates EPE aid. It is important that each hour spent by the student in evaluation, intake assessment is documented. It is not sufficient to identify a block of time as a standard period (e.g. a 12-hour standard intake assessment block) and recording student's attendance. However, it is acceptable for an agency to submit with their comprehensive service plan their intake/assessment process detailing each component of the initial evaluation, intake assessment that is provided including the amount of time each component takes. There is no standard for the amount of time the evaluation, intake assessment process should take, however, this process generally takes from four to eight hours depending on the student’s needs and the type of program. The contact hours for developing, modifying and updating IEEPPs can also generate EPE aid as long as the hours are provided by a teacher working with a student and as long as such hours are documented. These hours should always be included in the "Traditional" area in both the plan and in claims. Counseling activities that are not directly related to evaluation or intake assessment do not generate EPE hours. This includes counseling in areas such as substance abuse, child care, transportation, or social services.

EPE aid can be generated by and expended in programs operated by LEAs and BOCES in county and municipal facilities. Regardless of where the inmates are from, the EPE rate of the agency providing the program is used. EPE programs may not be operated in federal prisons and New York State Department of Correctional Services facilities since funding is available from other sources to serve these individuals.

Students who have taken the GED test in the United States are eligible to generate EPE aid until they have been notified that they have passed the test and are issued a high school equivalency diploma. Programs should document efforts to obtain this information for audit purposes (e.g. record of phone calls). Contact hours cannot be generated by GED testing. Unfortunately, GED students who are co-enrolled in an other EPE program such as occupational training, become ineligible to generate EPE in that program at such time as they pass the GED test. This should be a consideration in planning the timeline for goal achievement on the IEEPP including the timing of the GED test.

The only activities that generate EPE contact hours when the student is not in the classroom under the direct supervision of a teacher are those specifically approved in the comprehensive plan of service as a distance learning program or as a work experience program. The regulations do not recognize time spent at a computer, doing homework, using the library or any other activity not directly supervised by a teacher as acceptable for generating allowable contact hours.

A number of questions have arisen regarding whether a teacher who is trained and certified to teach more than one distance learning program can teach the same student in more than one distance learning program at the same time (e.g. GED on TV and CFLS home study). Also the question has been raised as to whether a teacher can teach a student in the traditional classroom setting and in a distance learning program at the same time. The answer is that, as long as the teacher has been trained in each area, a distance learning teacher can teach more than one distance learning program to the same student at the same time. Also the same teacher can teach the same student enrolled in the traditional classroom and in a distance learning program at the same time. In both instances, the student would be enrolled in both programs, but the student time spent on each, as well as the teacher time spent on each, must be documented separately. It is critical that the teacher documents instructional hours for the distance learning programs. If a teacher is instructing a student in more than one distance learning program, the hours of documented work for each program must be maintained separately. The teacher must account for instructional time to generate EPE aid for each program. If a teacher is instructing a student in a traditional setting and in a distance learning program, the documentation of teaching time for the distance learning program must stand alone. If the teacher cannot document sufficient instructional time related only to the distance learning program, then the work done by the student may be considered as homework and will not qualify for EPE aid generation. In both cases, the documentation must be as complete as if the student were being taught by different teachers.

EPE aid cannot be generated when a teacher works with children, nor can EPE funds be spent on children. However, a key part of family literacy is integrated instruction provided by a teacher in the home. In the home setting, the teacher works with the parent, the parent and child together and frequently with the child alone to model teaching for the parents. In this integrated approach, all of the time spent in the home can generate EPE aid at the rate of one contact hour for each hour in the home. This time must be fully documented. The parent must be EPE-eligible.

Drivers Education (i.e., to attain a personal drivers license as opposed to vocational programs for commercial vehicles) cannot generate EPE aid. The exception to this is if the student takes the program for high school credit. All high school credit courses generate EPE aid. However, incorporating lessons on the driver's manual as part of a contextualized literacy course is acceptable as part of classroom instruction.

301.01 - School District Formula

The EPE aid formula is based on district wealth. A pupil wealth ratio is calculated based on the actual valuation of property in the district per pupil divided by the State average actual valuation per pupil. This figure is then multiplied by .40 and the result is subtracted from 1.00. This generates an EPE aid ratio which determines the percentage of the EPE aid ceiling (the highest possible EPE contact hour rate) that the district will receive.

The EPE aid ceiling is calculated by dividing the statewide average expenditure per pupil by 1000. Prior to the 2000-01 program year, changes in assessed valuation or K-12 pupils could affect the EPE rate throughout the year. However, with the passage by the State legislature of an amendment to the EPE legislation, EPE aid rates for individual districts are now calculated based on data on file on May fifteenth of the base year and applied to the subsequent program year. This change enables agencies to more reliably plan expenditures based on anticipated revenues. EPE aid is not subject to transition aid provisions meaning that EPE aid is generated in addition to all other State aid received by the district. Information on current EPE rates and aid calculation for BOCES and school districts can be found at the State aid web site at http://stateaid.nysed.gov/.

The pupil wealth ratio for BOCES is calculated using the aggregate actual valuation and total wealth pupil units for all component districts. If 85 percent of the resulting aid ratio of the component district with the highest EPE aid ratio is greater than the calculated BOCES EPE aid ratio, that aid ratio may be used for all students served by the BOCES regardless of their district of residence.

The traditional EPE formula is used for all students attending programs described in section 201 as Traditional, Adult Occupational Education, and High School Credit. Additionally, the classroom component of the Work Experience program and the Crossroads Café Hybrid program should be calculated using the traditional formula and also included in the traditional category in the comprehensive plan of service (see section 403) and reported in the traditional category on fiscal reports (see Appendix A). The traditional formula involves time spent by the student that is directly supervised by a certified teacher. Each student will generate one contact hour of EPE aid for 60 minutes of classroom instruction or face-to-face consultation. For example, if ten students attend a GED preparation program in a classroom for one hour, ten contact hours will be generated. These hours are multiplied by the agency’s EPE rate and the agency will be reimbursed that amount for that hour. Because EPE rates vary greatly according to district property wealth, the amount of dollars generated by those ten students will vary from district to district. All of these hours must be fully documented (see section 408). Reasonable breaks are allowed. However, start and end times of class must remain the same regardless of whether breaks are taken. For example, if a class is scheduled to run from 9:00 a.m. to 12:00 noon, it must run that full time even if no breaks are taken.

The basis for claiming EPE aid in distance learning programs is the instructional hours provided by the teacher. This can involve contact with students either in-person, by telephone, or through the mail. It can also involve correcting or preparing student work lesson planning or bookkeeping related to operating the program. This time must be clearly documented (see section 408.08). While no online distance learning programs are presently approved to generate EPE aid, it is anticipated that a number will be considered in the near future.

The distance learning formula is based on two premises:

Critical to this calculation is the application of the term active enrollment. The term represents the actual number of students in a given week that fulfill the requirements for being active as described below. The number of students enrolled in the program may be higher than the active enrollment. The active enrollment may vary from week to week because not all students enrolled will complete required work every week. Required work means work assigned by the teacher as prescribed by the curriculum design of the particular program. Completion of required work is necessary for a student to be counted as actively enrolled in a given week. Active enrollment is defined as follows:

• GED on TV, GED Connections, Another Page, Learn to Read, Math Basics, Connect with English - Students view the lesson on television, complete required work at home and speak to the teacher by phone to review the work. The log record of the phone contact documents active enrollment. These are the only distance learning programs for which phone contact alone is sufficient to consider the student active.
• GRASP, Crossroads Café Home Study, CFLS Home Study, Health Promotions Home Study - These programs are designed so that each student completes a packet representing two weeks work before submission. The instructor receives, corrects and sends packets on a two-week cycle. For this reason, the preparation and sending of a new packet to a GRASP student after the previous packet has been received and corrected enables the agency to consider the student as active for two weeks. These students can never be considered active by virtue of a phone contact alone. One instructional hour is claimed for the two-week period for each active student (see section 303.03). Also, the sending of the first two packets to these students may be claimed at one instructional hour each. While the library delivery system is by far the most cost-effective method of delivering packets, they can also be hand-delivered or sent through the mail.
• Citizenship Home Study - To be considered an active student, the teacher must receive, correct, prepare and send out required work representing one week of student effort. These packets can be hand-delivered, mailed, or delivered through local library systems. The receipt and sending out of the unit of work must be documented. Students in these programs can never be considered active by virtue of a phone contact alone.
• External Diploma Program - In this program, the student meets with the teacher to review a weeks required work. The teacher assigns new work during this session. The student can be considered active on the day of the meeting as long as he/she has completed required work prior to the meeting.

While it is generally expected that distance learning students should complete approximately the same amount of work as a student in a traditional classroom, there is no standard for student hours spent at home. While the calculation is not based on the amount of work a student does at home, many of the programs consider that a week's work should take the student approximately six hours.

 303.02 - Calculating contact hours and EPE that can be claimed in distance learning programs

In the distance learning formula, it is actually the number of instructional hours that determines the amount of EPE generated. That is why the key documentation involves the instructor logs and records of packets received and sent out or student contacts. Time the teacher spends in academic activities related to delivery of the program can be counted as instructional hours. This includes activities such as reviewing or preparing lessons, phone or personal contacts with students related to instruction, student assessment, or lesson planning. In no event can more instructional hours be claimed than the maximum. Time spent in non-academic counseling or transporting packets can not be considered instructional hours.

The formula works as follows:

1. Identifying Active Enrollment

Using the definitions in section 303.01, identify the number of students that fulfill the requirements for being considered "active".

Multiply the active enrollment for the week by .5 to determine the maximum number of instructional hours that can be claimed.

Determine how many hours the teacher can document that they actually worked (see above). If the actual number was less than the maximum, then the actual hours should be used (rounded to the nearest 15 minutes or .25 hours). If the actual number was equal to or more than the maximum, then the maximum should be used.

Multiply the allowable instructional hours by 12. This will determine the number of EPE contact hours that can be claimed.

Example 1 - Active enrollment of 10 and teacher worked 5 or more hours in a given week:

• Use maximum instructional hours - active enrollment of 10 x maximum allowable instructional hours per student of .5 = 5 instructional hours.
• Multiply maximum instructional hours of 5 x 12 = 60 total EPE contact hours that can be claimed.
• Multiply total EPE hours that can be claimed of 60 x agency's EPE rate (hypothetical rate for this example) of $4.00 per hour = $240 in EPE aid that can be claimed.

Example 2 - Active enrollment of 10 and teacher documents 4 hours and 40 minutes of work in a given week:

• Round actual hours worked (4 hours and 40 minutes) to nearest quarter hour or 4.75 hours.
• Multiply the actual hours of 4.75 x 12 = 57 total EPE contact hours that can be claimed.
• Multiply total EPE hours that can be claimed 57 x agency's EPE rate (hypothetical rate for this example) of $4.00 = $228 in EPE aid that can be claimed

So the maximum this agency could claim for 10 students would have been $240 (10 students x .5 x 12 x $4.00) if the teacher had actually worked 5 hours or more. Since the teacher worked 4.75 hours to the nearest 15 minutes the school can only claim $228.

Since there are 52 weeks in a year, and a maximum of .5 instructional hours can be claimed per week for an active student, a maximum of 26 instructional hours can be claimed per year per student. Multiplied by 12 this means that a maximum of 312 contact hours can be claimed for an individual student per year.

In a two-week program such as GRASP, students submit required work every two weeks. For this reason the student can be considered to be actively enrolled for two weeks every time a two-week packet is submitted, corrected and a new packet sent out. In this case the active enrollment is multiplied by 1.0 every two weeks instead of .5 every week to arrive at maximum instructional hours. This is because the teacher is actually reviewing two weeks work by the student and can claim a full instructional hour every two weeks. A student may take longer than 2 weeks to complete a packet. However, regardless of how long the student takes to complete the packet, only two weeks is allowed for each packet completed. A simplified way to look at this for audit purposes is that (with the exception of the first two packets) the maximum number of contact hours that can be claimed is equal to the total number of packets received times 12. This model also applies to CFLS, Health Promotions and Crossroads Café home study programs.

The number of instructional hours that can be claimed for a teacher in a distance learning program in a given week cannot exceed the active enrollment multiplied by .5. For example, if a teacher works 40 hours in a given week the maximum active enrollment for this teacher can not exceed 80. In the two-week cycle programs, in a two-week period, a teacher working 80 hours can have no more than 80 active students since one full hour of instructional time is allowed for each. It is at the agency's discretion whether a teacher will be allowed to work over 40 hours in a week and have a higher active enrollment, or whether a second teacher will be hired.

As indicated above, Crossroads Café may be taught as a traditional, distance learning or hybrid program (i.e., part in a traditional classroom and part as a distance learning program). In a hybrid program, the traditional component is reimbursed using the traditional method that is one contact hour for an individual student for each hour of instruction in the classroom. The distance learning component is reimbursed in the same manner as other two-week packet programs. Documentation for the two components must be maintained separately. Refer to Appendix C for the guidelines and application procedures for a new or existing Crossroads Café program.

In specific cases, exceptions have been made in the areas of distance learning program design and delivery. In some of these cases pilot studies were conducted prior to granting the specific program modification. Any deviation from the distance learning program models must have SED approval in writing. Subsequent to the enactment of the comprehensive plan in 1995-96, numerous audit exceptions resulted from the modification of programs without documented approval. To ensure that any distance learning program offered before the 1995-96 year that varies from the programs described above can still generate EPE, the program must be resubmitted and approval given in writing. In no case can the statutory distance learning formula be modified.

As described in section 205, work experience programs consist of classroom instruction and work experience. These two components should be treated separately for the purpose of planning and claiming EPE aid. The classroom component should be incorporated into the traditional section of the plan (see section 403) and claimed in the traditional section of the claim form (see Appendix A). The component that takes place on the work site should be planned and reported in the Work Experience sections. In the 2001-02 program year, there are four Work Experience models that allow for reimbursement of the work site component at either a 50 percent, 75 percent or 100 percent rate. As of July 1, 2002, only the work experience model described in section 205 will be allowed. In this model, classroom instruction generates EPE at the full contact hour rate. Work experience generates EPE aid at the 50 percent contact hour rate. All agencies wishing to operate a work experience program must submit material described in section 407.02.

EPE aid is reimbursement for services rendered in the previous period. The new EPE legislation passed in 1995 allows for only two claiming periods as opposed to three in prior years. The first period runs from July 1 through December 31. The second period runs from January 1 through June 30. The claim form for the first period is submitted by February 15 and will be paid after April 1. Claims received after March 1 will be combined with the second claim and they will be paid together. The claim form for the second period must be submitted by September 15 and will be paid after October 1. There is no guarantee that claims received after September 15 will be reimbursed.

Of the total statewide allocation of EPE funds, only 25 percent can be paid on first period claims or approximately $24 million as of 2001. Typically, the total of all first period claims exceeds the amount available. As a result, agencies applying for reimbursement for first period EPE claims will only receive a prorated portion of the available funding. In past years, this has averaged approximately 70 percent. After the second period claim is filed and processed, two checks will be issued: one for the balance of the first period claim and one for the entire second period claim.

The EPE program reimbursement schedule may cause cash flow problems. Unfortunately, the new schedule is specifically set forth in State legislation. Agencies facing cash flow problems may explore receiving a temporary advance of money from the agency's general fund pursuant to Section 165 of local finance law. It should be noted that this is only a cash flow issue. There is no danger of actually losing the reimbursement due to districts or BOCES as long as final claims are submitted by the September 15 deadline date.

Forms SA160.1 and SA160.2 are used to claim EPE aid for the first and second periods respectively (see Appendix A for copies of the form and instructions). These forms require contact hours generated by students without a high school diploma or equivalent to be reported separately from those generated by students with a high school diploma or equivalent.

• Form SA160.1 - requests information on contact hours and enrollment in each approved component, and contact hour and enrollment projected for the entire year. Information is also requested on the projected amount of EPE contact hours to be generated by June 30. The projections are used to enable SED to reallocate funds to enable programs that anticipate that they will be exceeding their contact hours originally projected to have a commitment of additional EPE aid to meet this need.
• Form SA160.2 - requests the same information as the SA160.1 without the projections. In prior years, expenditure information was requested to ensure that EPE expenditures met or exceeded EPE revenues. This reconciliation is now being done by the SED State Aid Unit (see section 305.06).

Often an agency will have a higher level of enrollments or greater attendance than was expected, and will generate more EPE aid than was approved in the annual application or approved through the SA160.1 interim report. In these instances, agencies are encouraged to submit the claim for the total amount of EPE aid generated. Should EPE funds remain after all claims are processed in a fiscal year, these funds will be used to reimburse agencies that have exceeded their EPE aid allocation. While typically there have been sufficient EPE funds to reimburse agencies that have exceeded their allocations, there is no guarantee that contact hours in excess of the initial or revised allocation will be reimbursed. If a program manager becomes aware after they have submitted their SA160.1 that their program will exceed the allocated EPE hours, it is suggested that they contact their SED field representative so that they may revise their projection and receive approval in writing to exceed their allocation.

EPE law does not allow agencies to receive more revenue in a fiscal year than they expend (see section 404.03). Occasionally, agencies will receive more in revenues than they have in documented expenditures. This is sometimes due to the cash flow issue described above or to unexpectedly high attendance. The Education Department is required to reduce the following year's EPE aid when the revenues from all sources in a given year exceed the expenditures made from all sources in a given year. Some time after the payment of the final claim, the SED State Aid Unit sends out a Final Expenditure Report for Employment Preparation Programs (see Appendix D) for the prior year. Upon receipt of the information, revenues are compared against expenditures. If the revenues exceed the expenditures, an overpayment will be generated. The superintendent or district superintendent will be notified of the overpayment and allowed a period of time to contest the calculation. If a response is not received within the allotted timeframe, the overpayment will be deducted from the second claim of the following year. An agency may arrange to reimburse SED directly rather than have the overpayment deducted from the next period claim.

For work experience components that are a part of an occupational program (e.g., shadowing experiences or field experience components of an LPN or Cosmetology program), the prorated formula used for approved work experience programs should not be used. If the students are supervised in the field by a teacher on a one-to-one basis, these programs generate EPE at a full contact hour rate for the time the student is on the work site.

In no instance can a volunteer tutor generate EPE aid. A volunteer tutor is defined as someone who is providing instruction but receives no salary. In a traditional setting, a volunteer tutor can work with an adult student in the classroom while a certified teacher is in the same room and overseeing the lesson. In a distance learning setting, a volunteer tutor can work with adult students while they are completing their packets of instruction. In both cases, it is the certified teacher working with the student that generates EPE aid. No additional EPE aid is generated by the use of volunteer tutors. The traditional or distance learning programs must be approved and should stand alone with or without the involvement of the tutor (i.e., the program is not dependent on the involvement of the tutor for instruction.) No special approval is required to use volunteer tutors as part of an approved traditional or distance learning program.

If the instructor does provide in-person tutoring during the hours allotted for an approved distance learning programs, no additional EPE may be claimed. For example, if an instructor has 30 actively enrolled students and is hired for 15 hours to serve those 30 students, when a student visits for a tutorial during those 15 hours, no "class-of-one" EPE may be claimed. However, if the teacher provided the one hour tutoring session in addition to the 15 hours devoted to the distance learning program, then the agency may claim one additional contact hour per student for every instructional hour provided.

Employment Preparation Education Programs, other than high school courses, must meet the following general requirements:

• All curricula must be developed or approved by the State Education Department or follow established State frameworks. This means that curricula should be consistent with the State Adult Learning Standards and targeted towards the achievement of National Reporting System Goals. Curricula should be maintained on site.
• Instruction will be individually prescribed and paced in each class.
• Individual student folders will be easily accessible to students and teachers, and will include information concerning attendance, testing and program needs. A student's total file, however, may be in more than one location depending on the location of the service received. The complete file consisting of all of a student's records must be accessible for review and verification.
• No class register will exceed 20 students unless a waiver is granted in writing.
• Classes will operate at least 6 but no more than 20 hours per week unless a waiver is granted in writing.
• At least 150 hours of instruction per year will be made available to individual students. This means that students in ABE, GED or ESOL classes must have at least 150 hours of instruction available to them in a school year.
• Individual education and employment preparation plans (IEEPP) will be developed for individual students to address educational, employment or personal goals. This means that all EPE students must receive some assessment and must have a plan developed (see section 414.04).
• Each professional staff member serving in the Employment Preparation Education Program will take at least five and one-half hours of staff development related to the development and organization of such programs for adults each year. This applies to individuals employed both full and part-time for the entire academic year. Substitute teachers employed for less than 80 hours need not take staff development programs. It is recommended, however, that all teachers employed to teach adults be provided with some basic staff development in working with this population.
• Students with other needs will be provided appropriate instruction as determined by the Commissioner of Education. This includes both physically and learning disabled students. Teachers must be trained in instructional methodologies to provide effective learning experiences for individuals with disabilities.
• All students will be tested at intervals necessary to determine status and progress. The following intervals are recommended:
• Students in a class that meets for nine (9) hours or less per week should be post-tested at the end of each 100 instructional hours.
• Students in a class that meets ten (10) or more hours per week should be post-tested at the end of each two-hundred (200) instructional hours.
• Students in a tutorial program, should be post-tested at least every fifty (50) instructional hours.
• Programs will submit required data to the State Education Department consistent with the National Reporting System (NRS) for adult education.

In addition to the general requirements, the following program requirements pertain to all English speaking students:

• All will be given entrance tests in reading and mathematics to determine their approximate skill level.
• Those who are deficient in basic skills will be provided instruction in reading, mathematics, oral and written communication, and life skills as appropriate based on need.
• All will be given standardized achievement tests which report scores in grade equivalents and which have forms for re-testing at required intervals (see section 401), or other such instruments approved by the Commissioner of Education.
• Agencies are encouraged to provide screening for learning disabilities.

In addition to the general requirements, the following program requirements pertain to all limited English speaking students:

• All will be given placement tests before being placed in an appropriate instructional level.
• All will be provided instruction in listening, reading, mathematics, oral and written communication, and life skills as appropriate based on need.
• All will be given standardized achievement tests specifically designed for such students or other such instruments as approved by the Commissioner of Education.
• Gains will be reported in standardized intervals.

In addition to the general requirements, the following program requirements pertain to all GED preparation students:

• GED preparation students will not begin instruction specifically designed to prepare them for the General Education Development Test unless they have scored on the 8.0 level or higher on a standardized reading test.
• All will be given diagnostic tests to determine the specific instruction needed to attain the minimum score to qualify for a New York State High School Equivalency Diploma, and will be provided such instruction.
• Students will be referred to the GED test when they demonstrate readiness as indicated by the Official GED Practice Tests.

Because EPE programs are designed to meet community needs, EPE programs may be offered in a number of different kinds of facilities. This includes locations such as churches, synagogues, libraries, community based organizations, civic centers, etc. It is necessary that the program be a part of the Comprehensive Plan of a BOCES or school district and that the teachers are employed by that agency and certified (see section 406). Four conditions apply to facilities used for instruction supported by EPE aid:

• The facility will be covered by fire and liability insurance.
• It will meet all applicable State or local fire and safety standards.
• It will have heating, lighting, and ventilation that are conducive to learning.
• The facility will be accessible to students with disabilities.

All agencies receiving EPE funding must comply with all civil rights legislation.

While distance learning programs provide the flexibility for students to participate who may not otherwise be able to, the administration of these programs requires scrupulous record-keeping. This manual is not intended to provide all of the information needed to operate any of these programs. Complete information regarding these programs is a part of the training that is available from the Technical Assistance Team for each program or through the Adult Education Staff Development Consortia. However, there are several requirements that all distance learning programs must adhere to:

1. All teachers must be certified and have specific and appropriate training available through the Regional Staff Development Consortia (see section 406). For continuity and to maintain a consistent level of quality, it is recommended that program administrators also participate in distance learning training.
2. All distance learning programs must have the following components: an intake process, The development of an IEEPP, instructional intervention, a homework or homestudy component, and a procedure for reviewing the student work and progress.
3. A student roster must be maintained containing the names of all enrollees.
4. Student logs must be kept indicating the hours that students worked at home for each packet/subject area/episode.
5. The instructor must maintain a record of all assignments completed by all students on the roster. For Crossroads Café home study, the record must detail which episodes were completed each week (see section 408.08).
6. The teacher must keep detailed records of hours of instruction provided (i.e. reviewing, correcting, or handling student materials, planning, etc.) and other activities as well as a record of all student packets reviewed.
7. New programs must reflect the standards-based approach to curriculum development as provided in the 1998 edition of the Adult Education Resource Guide and Learning Standards and supplements.

The following requirements apply to all work experience programs:

1. The total of classroom hours plus the hours of work experience must be no more than 20 hours per week. Programs offering between 21 and 40 hours per week of combined classroom and work activities must request a waiver (see section 410). All EDGE programs are exempt from the waiver requirement. Total program hours can not exceed 40 hours per week.
2. All students must have an individual education and employment preparation plan developed and in their folder (see section 414.04).
3. Classroom instruction must be at least 30 percent of the total program hours.
4. All work experience components must be coordinated, supervised or directed by an individual who meets state and local requirements for teacher certification (see section 406). This individual must visit the site at a minimum of one time per week.
5. The student must be supervised while on the work site by an appropriate individual (employee, manager, owner, etc.) who will monitor the student’s progress towards specific skills and goals, and will be responsible for recording the student’s daily attendance.
6. Student folders must be kept documenting work experience attendance and related information such as work site visits and student progress.
7. A system must be in place to track job placements resulting from the work experience program.
8. All contact hours must be documented including individual student names, dates and hours generated.
9. All programs must be approved (see section 407.02).
10. At the end of the work experience program, all students should have attained the employment/program goal stated in the material submitted for approval.

Every school district and BOCES seeking to operate an EPE program must submit to the Education Department's Adult Literacy and Workforce Preparation (ALWP) Team a comprehensive plan of service that includes information regarding major programs that will be offered and information regarding program effectiveness. Specifically, the comprehensive plan includes:

• Cover Sheet with an original signature of the Superintendent or the Chief Administrative Officer;
• Program Component Worksheets with projected enrollment and contact hours for each program component for which the agency is seeking approval and projected outcomes for the work experience component;
• EPE Program Component Summary Sheet which provides the total number of projected students and contact hours for each component (reentered from the individual Program Component Worksheets), the projected EPE aid to be generated, and projected expenditures for the year;
• Statement of Assurances signed by the Superintendent or the Chief Administrative Officer certifying that the agency will meet all EPE program requirements, and
• Other information that may be required based on new or emerging SED priorities or requirements.

In approving the comprehensive plan of service, SED staff evaluate the following:

• The effectiveness of the proposed program components based on past program data. Beginning in the 2000 - 2001 program year, performance measures will be implemented consistent with those contained in Title II of the Workforce Investment Act (WIA);
• The likelihood that occupational education programs achieve employment outcomes for adults (this review does not constitute approval of curricula);
• The support for educational initiatives and priorities identified by the Department;
• Geographic accessibility of programs and lack of duplication in any region; and
• The assurance that program expenditures will meet or exceed the projected revenues from all sources.

Based on this review, approval will be granted to agencies to claim a total number of contact hours for the program year in the approved program component areas. This approval sets a cap on the total amount of EPE aid that can be claimed so that the statewide limit will not be exceeded. Agencies may be requested to provide clarification or additional information before receiving a formal approval letter for all program components contained within their application.

A school district or BOCES applying for EPE aid for the first time must submit a complete application and the following in narrative form:

• A summary of the agency's overall adult education program within the district (not including community education)
• An evaluation plan for determining the effectiveness of all program components
• A staff development plan including coordination with the regional Adult Education Staff Development Consortia
• A description of student intake, assessment and evaluation procedures
• A description of the plan to coordinate programming regionally to assure maximum effectiveness and to avoid duplication of services
• Support for educational initiatives identified annually by the Office of Workforce Preparation and Continuing Education (OWPCE) (see current application)
• Signed Statement of General Assurances demonstrating compliance with required program and fiscal reporting

In addition, the following must be submitted as appropriate:

• Copies of locally developed curriculum for adult occupational education courses
• A list of teachers' names and dates training took place for distance learning component models
• A narrative describing the agency's work experience component

Only those programs that have been approved in the comprehensive plan of service are eligible to generate EPE. Should an agency decide to offer programs in addition to those initially approved, an amended comprehensive plan may be submitted at any time. An SED technical assistance representative should be contacted prior to submitting the revised plan (see current application for list of regional representatives). New programs are subject to the same approval process as the initial plan submission.

Increases in EPE allocations are made judiciously so that final claims do not exceed available funds. For this reason, EPE funds are reallocated at the time the interim report is submitted as part of the first period claim (see Appendix A). At that time, funds that become available because agencies are not meeting their EPE generation targets are reallocated to agencies that are exceeding their projections. Under special circumstances throughout the year, agencies may apply for approval to receive additional funding. This generally involves some unanticipated circumstance that creates an increased demand for EPE programs at some point in the program year. Examples of this might include: the influx of a new population needing services; the closing of an existing program providing services in the vicinity of the applicant; the opening of a new business in the area that requires preparation of local residents prior to hiring; etc. Requests for additional EPE hours that are not made through the interim report should be made after consulting with the SED technical assistance representative.

There is a difference between the activities and program components that generate EPE aid and activities and program components for which EPE may be expended. Part 168.4 of Commissioner's Regulations defines allowable expenditures for EPE State aid as follows:

Under part 168.2 of Commissioner's Regulations, Employment Preparation Education Programs are defined as:

In many instances, EPE State aid alone cannot support the full cost of such programming. The Office of Workforce Preparation and Continuing Education encourages the integration of multiple funding sources to support comprehensive adult education programs. To the extent that such funds are integrated at the local level and can be clearly shown to serve one or more EPE eligible adults in approved programs, these programs shall be considered, for purposes of EPE expenditures to be the "EPE program". This means that the activities, salaries and program components for which EPE aid is expended (may include items such as non instructional services, etc.) do not have to be identical to those that generate EPE aid so long as:

• Expenditures are made for adult education programs provided by the district or BOCES that lead to a high school diploma or high school equivalency diploma or other approved programs as defined in the Commissioner's Regulations, and
• EPE-eligible adults are served in such programs. In classes in which non-eligible and eligible students are mixed, EPE expenditures must be prorated to reflect the proportional contact hours of instruction provided to adult education students (see section 404.06).

• Monies generated have to be spent in the current fiscal year. They cannot be applied to the next year or saved for future investments or transferred to another account. Generally, an expenditure is incurred upon delivery of the merchandise or service. Encumbrances for undelivered goods or services do not qualify as expenditures.
• Aid received cannot exceed an amount which, when added to all other revenues obtained from other sources to run EPE programs, exceeds the total cost of the EPE program.
• School districts conducting EPE programs must spend at least as much local funds (monies raised by local tax levy) on the program for which they claim EPE aid as in the prior year.

After the EPE Claim Form SA160.2 is submitted in September of each year, a comparison is made by the Education Department's State Aid Unit of revenues and expenditures in the previous fiscal year (see Appendix D). If revenues exceed expenditures, the agency must reimburse the Department for the difference. Normally, this amount is deducted from the second period claim in the subsequent year. This is because the second check is usually the larger and cash flow will be affected less. A notification of this overpayment is sent out from the State Aid Unit after the reconciliation is made. It is, however, possible for the agency to pay the overage directly back to the Department. Information regarding this will be received with the notification.

One of the most important bookkeeping procedures is prorating EPE expenditures. Since EPE funds can only be spent on the EPE program, it is essential that this can be demonstrated.

The most common instances where prorating is needed are:

• Equipment or materials are shared by an adult education program and a K-12 program, typically computers or non-consumables.
• A program is comprised of both EPE-eligible and non-eligible students.

The preferable way to prorate expenditures is to calculate the percentage of contact hours for non-EPE eligible students in the program and apply funding sources other than EPE to that percentage of each cost category. For example, if in a given program 50 percent of the students are under the age of 21, 50 percent of the teacher's salary, supplies and materials, utility costs, rent, computer costs etc., should be paid from a non-EPE source such as Equivalent Attendance State aid or Workforce Investment Act (WIA) Title 2 funds. It is not necessary to prorate each cost in each class to reflect the percentage of EPE eligible and non-eligible students in that class. For example, in a program consisting of several classes, EPE may be expended on non-eligible students in a particular class as long as funds other than EPE are expended in another part of the program on expenses that legitimately could have been charged to EPE.

It is also acceptable to prorate based on the entire cost of the program. In this case, the entire cost of the program must be calculated and, in the example above, 50 percent of the total cost would be paid by EPE funds. For example, if the entire cost of the program was $100,000, and 50 percent of the students were EPE-eligible, the agency may wish to pay $50,000 in teacher salaries from EPE and the balance of costs from other sources. In this method it is essential that the calculation includes all program costs. Receipts or salary records must be available to demonstrate the cost. A reasonable formula must be used to calculate the portion of the entire cost that can be attributed to EPE students. Typically this is done by comparing total contact hours or hours of use (in the case of equipment) and the portion of contact hours or use by EPE-eligible students. In any case where expenditures are prorated between EPE eligible and non-eligible students, it will be necessary to record contact hours for both groups of students.

Prorating may also be necessary when other funding sources are blended to support a class. Sources such as ADA, WIA Titles I and II, and tuition are often used to support students in EPE programs. In these cases, the same prorating formula is used to ensure that EPE funds do not supplant the other funding sources.

Prorating is also necessary for administrative costs. In programs where staff perform administrative tasks for both EPE and non-EPE eligible students, the cost of support staff time, supplies and materials etc. charged to EPE must be documented and prorated to the percentage of time spent specifically on EPE tasks.

Frequently, agencies encounter students that are not eligible to generate EPE aid but are in need of educational services. Because funding for this population is limited, these students are often enrolled in an existing adult education class supported by EPE aid. If it can be shown that the costs are negligible for a small number of students in an existing EPE-funded class, the expenditures need not be prorated.

If a school district or BOCES offers several program areas (i.e., traditional, distance learning, high school credit, work experience and occupational education), the ratio of revenue generated versus costs incurred will vary. Some areas may generate revenues in excess of the cost of the program while others may generate less than the cost. In general, EPE funds generated by one program area should be used to support that area. Once these costs have been met, the balance may be reallocated to other EPE program areas.

All equipment, including computer equipment and software, purchased with EPE funds must be used to support EPE programs provided by the district or BOCES. The cost of computer equipment purchased with EPE funds that is not made available to EPE-eligible students or held in storage is not an allowable expenditure. Any license fees for computers not in use, software license fees or software package costs that are in excess of current adult education program needs are also not allowable expenditures. In all cases, school districts and BOCES must be able to document that expenditures are related to the EPE program (i.e., available to and being used by EPE-eligible students as part of the adult education program leading to a diploma or the equivalent). A detailed and updated inventory of all equipment and software purchased with EPE funds should be maintained on file at the local level.

According to the Education Department's Fiscal Guidelines for Federal and State Aided Grants, indirect costs can be broadly defined as central administrative costs and certain other organization-wide costs that are incurred in connection with a project but that cannot readily be identified (e.g., payroll preparation, central purchasing). An indirect cost rate may be established that, when applied to the direct cost of a project, generates an amount to be used in support of such central administration costs.

Indirect costs for EPE must be claimed through the use of the Department's restricted indirect cost rate. The direct cost base to establish the restricted indirect cost is calculated the same for EPE as for an FS10 budget. Indirect cost rates for school districts are computed annually by the Department on the basis of data contained in each district's Annual Financial Report, and range from one to seven percent. Only these rates, which are computed by the Department, may be used to determine EPE-eligible indirect cost expenditures by school districts and BOCES. These rates indicate the maximum allowable indirect costs. Schools may opt to claim less indirect costs, allowing more money to be used for other budget categories.

The interest on loans that are taken out to cover EPE cash flow needs is not an allowable EPE expenditure. This is consistent with the requirements for all adult education funding administered by the Department. Agencies facing cash flow problems may wish to explore the possibility of receiving a temporary advance of money from the agency's general fund.

EPE funds may be used to support the cost of staff development for teachers and administrators of EPE programs. Detailed records should be maintained regarding all expenditures including training content, travel, lodging, meals, fees, etc. All staff development activities should be consistent with the agency's plan to improve instruction. While it is required that teachers receive five and one-half hours of staff development each year, agencies may wish to provide more.

EPE funds may not be used to support the administration of the GED test. Assessment for test readiness is an allowable expenditure.

Child care for the children of EPE-eligible students is an allowable expense. Records must be kept documenting that the children in care are the children of EPE-eligible students while they are attending class. If the children of EPE-eligible students make up only a portion of the total children in child care, than EPE funds can be used only to support the pro rated share of the total cost. EPE providers are, however, encouraged to seek other sources for child care such as the local Department of Social Services.

EPE funds may be used to pay for the cost of snacks and incidentals such as certificates of achievement or decorations, at EPE-related meetings such as GED graduation parties or marketing meetings. EPE providers are, however, encouraged to seek other sources for snacks and incidentals.

The costs of brochures, fliers, mailings, radio and television ads are allowable expenses for an EPE program.

EPE funds cannot be used to support the cost of community education programs. Community education programs are those that are not designed to lead to employment or a high school diploma or equivalent or are not approved by the Commissioner as part of the comprehensive plan of service. This includes any of the related costs of community education such as administration, utilities, rent, etc. Community education programs are defined as avocational subjects which involve instruction in recreational or leisure-time activities and which are not offered to: prepare students for a diploma or a high-school equivalency diploma; assist students to read, write or understand English as a second language; or provide entry-level occupational training.

EPE funds may be used to pay reasonable costs for transportation. This may include tokens, the cost of a van or bus, or cab fare. EPE providers are, however, encouraged to seek other sources for transportation such as the local Department of Social Services.

405.11 - Support Services

While counseling that is not related to intake, assessment and the preparation of an individual employment or education plan does not generate EPE aid, it is an allowable EPE expense. This includes counseling to assist the student in making the transition to work. Counselor's time spent with EPE students must be clearly documented.

General program cost directly attributable to an EPE program that is not precluded in this document can be an acceptable EPE program expenditure. This includes the cost of building maintenance, cleaning supplies, telephone use, capital improvement and repair, paving, utilities, building lease, security costs, etc. Depreciation should not be considered a program cost. All of these expenses must be documented as for the EPE program only or prorated according to an acceptable formula and with adequate documentation.

Payments made to the Education Department based on audit disallowances of EPE contact hours or EPE expenditures are not acceptable EPE expenditures.

EPE aid can only be generated by a certified teacher. Teachers who hold a valid temporary or permanent New York State preK-12 teacher's certificate are able to generate EPE aid in any EPE program area. All other EPE program teachers must have appropriate adult education certification. To be eligible for adult education certification, the applicant must have three years of preparation and/or experience in the subject which the individual is employed to teach. In cases where no such prepared or experienced person is available after extensive recruitment, an individual with less preparation and/or experience may be employed upon a finding by the chief school officer that such individual has sufficient preparation and/or experience to teach the subject. This effort must be able to be demonstrated (e.g. copies of advertisements placed in newspapers, etc.). For EPE generation purposes, agencies that are able to document that teachers have applied for an adult education certificate and are pending approval will be able to claim EPE aid for instruction provided by that teacher.

406.01 - Adult Education Instructor Certification Titles

The following titles have been developed which clearly distinguish adult education instruction from other pre-kindergarten, kindergarten and grades one through twelve instructional certificate titles and are designed primarily for purposes of generating EPE funds:

• Adult Education Instructor/Literacy and GED Preparation - This title applies to teachers in the following areas: ABE, GED test preparation; APC; career, family and life skills, both traditional and distance learning; family literacy; Citizenship Education including traditional and home study; EDP; GRASP; GED Connections; Learn to Read/Another Page; Home Study Health Promotions; Math Basics; job club; and Workplace Essential Skills.
• Adult Education Instructor/English Language Learning - This title applies to teachers in the following areas: ESOL, BENL, and Crossroads Café both traditional and distance learning.
• Adult Education Instructor/Assessment and Advisement - This title applies to teachers that provide intake assessment, evaluation, and the preparation of individual education and employment preparation plans. This title also applies to job development activities.
• Adult Education Instructor/ Job Skills Training - This title refers to teachers of short-term vocational training in non-certified occupational areas. It also can be used in certified occupational areas in cases where the teacher does not have appropriate secondary certification.
• Adult Education Instructor/Work Experience - This title applies to teachers conducting EPE-funded Work Experience Programs.

Individuals teaching in more than one of these areas need only be certified in their primary area of adult education instruction or have temporary or permanent preK-12 certification.

Teachers of EPE instruction in continuing education programs holding valid adult education certificates with equivalent or similar titles to those noted above need not apply for a newly titled certificate. Upon expiration of such certificates and at the time of their renewal, applicants should request adult education certification using the titles noted above.

Teachers holding a valid temporary or permanent New York State preK-12 teachers certificate need not apply for renewal or for adult education certification. All other teachers that hold certificates as an Adult Education Instructor must apply every three years for renewal. When a teacher gains employment in a different district before the certificate expires, it is not necessary to have a new application signed by the new superintendent until the previous certificate expires. Currently, there is a processing fee of $50 for each new certificate and a $25 fee for each renewal. To receive an application contact:

New York State Education Department

Office of Teaching

Room 5 North EB

Albany, NY 12234

In addition to certification, teachers of distance learning programs must have specific and appropriate training for the program to generate EPE. This training is available on a rotating basis for free through the ten Regional Staff Development Consortia. The agency can also contact the approved trainer to arrange for the course to be offered directly for a fee. Agencies wishing to offer distance learning programs for the first time may be approved provisionally as part of their comprehensive plan. These new programs may not generate EPE aid until a teacher has received the SED approved training. In agencies that have been offering a distance learning program, if a teacher leaves, the agency may still offer the distance learning program providing the new teacher was trained by the previous teacher and that the new teacher is enrolled in the next training session available through the Staff Development Consortium. This is done to allow continuity of a program since distance learning training is not always immediately available. In no case will training by a previous teacher substitute for the SED approved training beyond this single exception. Permission to offer the program pending training will be considered on a case by case basis.

To be approved for EPE funding, occupational education courses must be at least 100 hours long and provide sufficient training to enable the completer to obtain employment in the field. Agencies wishing to have occupational courses approved to generate EPE funding must submit the following:

• course title,
• course hours,
• a waiver request if the course is less than 100 hours (see section 410.03),
• a complete curriculum including enough detail to ensure that the course is not avocational and provides sufficient training to enable students to o