September 15, 2005

TO THE ADMINISTRATOR ADDRESSED:

RE: FEMA Reimbursement

The Texas Education Agency has been designated by the Governor’s Division of Emergency Management to accept and process Federal Emergency Management Agency (FEMA) requests for public assistance on behalf of school districts and charter schools.

Many school districts and charter schools across the state are incurring expenses related to Hurricane Katrina evacuees. Some of these expenses will be eligible for monetary reimbursement from FEMA. In an advisory dated September 9th, 2005, FEMA reported the following with regard to students impacted by Hurricane Katrina:

If space is not available at a local school, the eligible applicant may lease or procure facilities (i.e. portable classrooms) with support services necessary to accommodate the additional students. Any increased transportation cost would also be an eligible expense.

In further conversations with FEMA, the agency has determined the following to be eligible expenses:

Additional classroom space: this would include the purchase or lease of portable buildings or expenses associated with opening facilities that were previously closed by a district.

Electricity and other utilities associated with additional facilities,

Security associated with additional facilities,

Custodial and maintenance associated with additional facilities,

Real property and equipment, including desks, chairs and computers for additional classrooms, is also eligible for reimbursement.

Incremental transportation cost is eligible for reimbursement. This would include additional or expanded bus routes to accommodate Katrina evacuees.

The agency is establishing an office of FEMA reimbursement specifically for districts and charter schools to file claims and receive technical assistance on complying with FEMA regulations. Contact information will be forthcoming. Instructions for filing claims for reimbursement will originate from this office and can be expected very soon.

Financial Recordkeeping

School districts and charter schools need to account for transactions related to Hurricane Katrina evacuees in a locally-defined federal special revenue fund. Accounting procedures for all records are defined by the general state and federal regulations found in:

OMB Circular A-87

OMB Circular A-133

44 CFR, part 14

TEA Financial Accountability System Resource Guide

It is the intent of the agency to seek designation as a Mission of Assignment with FEMA. Again, the agency will collect financial data from school districts and submit all claims forreimbursement to the Governor’s Division of Emergency Management.

What FEMA does not reimburse

Please note that to date there is no provision for FEMA to reimburse ongoing educational expenses. This includes expenditures on additional teachers and purchase of books. The agency anticipates the US Department of Education will be responsible for disbursingfunds Congress appropriates for educational expenses of Katrina evacuees. These ongoing additional expenses should also be tracked by using a locally-defined special revenue fund. Further information will be forthcoming.

Please take care to keep accurate records of these incremental expenses your district or charter school incurs. Thank you for your patience as we work with FEMA to define these processes and for your service to children all across Texas impacted by Hurricane Katrina.

Sincerely,

Shirley J. Neeley

Commissioner of Education