Perkins Fiscal Considerations Postsecondary 2017 CTE Fall Webinar

Perkins Fiscal Considerations ~ Postsecondary 2017 CTE Fall Webinar Series www. minnstate. edu/system/cte/professionaldevelopment/index. html

Today’s Presenters Minnesota State Colleges and Universities Jeralyn Jargo State Director, Career Technical Education Jeralyn. Jargo@minnstate. edu 651 -201 -1650 Judy Bradford Grants Accountant, Finance Division Judy. Bradford@minnstate. edu 651 -201 -1770

Goals • Overview of Perkins allocation from federal funding source to local consortium implementation • Budget, plan, cash management, goal, and target monitoring • Clarify reallocation and leadership funds • Explain process for monitoring of fiscal assets and processes 3

Secondary/ Postsecondary Split ALLOTMENT AVAILABILITY OF FEDERAL FUNDS A cooperative agreement between the Commissioner of Education and Minnesota State Colleges and Universities will annually provide for the distribution of federal funds between secondary and postsecondary career and technical programs. Distribution to local education agencies must be determined by state and federal law. 4 ~ Minnesota Rule 3505. 1700 ~ Dependency on Approved State Plan

Leadership Primary Function: Fiscal Responsibility MN State Colleges & Universities as Fiscal Agent Implements federal regulations and cost principles • State, local, and Indian tribal governments • Educational institutions (colleges and school districts by consortium) Ensure compliance with federal and state statutes Perform monitoring of local consortia Provide technical assistance to the local consortia

MN Perkins Budget Distribution (Oct. 1, 2017) 9% Leadership 1% Non-trad and State Institutions 5% of the State’s funding is used for State Administration- Minnesota State and MDE 85% of the State’s funding goes to local consortia by formula Local Consortia 85% State Leadership 9% Non-Trad & State Institutions 1% State Administration 5% Distribution of State Perkins Funding

MN Perkins Budget Distribution (Oct. 1, 2017) 7

Local Consortium Award Allocations Local Consortium Perkins Plan Approval Notification and Fiscal Information include the award emailed to the Superintendent and the President at the fiscal host district and college with copies to local consortium fiscal and Perkins contacts upon state approval of the local consortium plan. Approximately July 1 st.

Sample Perkins CTE Award Letter Forward Funding Full Basic and Reserve Funding

Basic vs Reserve • The separation of Basic and Reserve is based on the using two separate formulas • Federal law separated Reserve dollars so states had the option to distribute additional dollars to rural or high number programs based on need • Definitions of required, permissive, allowable expenditures are the same for Basic and Reserve • Required and permissive use of funds http: //www. mnscu. edu/system/cte/consortium_resour ces/documents/mn-perkins-consortium-required-andpermissive-use-of-funds-9 -18 -17 dkw. pdf

Allocation Cycle MN Receives US DOE Grant Award Letter July 1, Year X State Receives Forward Funding Basic and Reserve Awards to Local Consortia June 30 Cut off for Year X-1 Spending October 1 Full Funding Year X

Consortium Budget and Planning Considerations • Consortium’s approved local application outlines budgeted spending for the entire award • Spending should be reviewed throughout the year to verify and ensure spending is following approved plan • All award monies must be encumbered by June 30 th of the award year, with all transactions concluded prior to August 15 th • Cash Management 8

Allocation Cycle MN Receives US DOE Grant Award Letter June 30 Capture Year X -1 remaining to be returned to USDOE July 1, Year X State Receives Forward Funding June 30 Capture Year X remaining to be reallocated in January June 30 Cut off for Year X and X-1 Spending January Reallocation Of Year X-1 Award Letters Basic and Reserve Awards to Local Consortia October 1 Full Funding Year X

Reallocation Award Letter — Coming Later Prior Year Reallocation FIFO

Unexpended Consortium Funds Recaptured and Reallocated • Local consortium contacts will need to review their approved local application and decide where to make necessary budget changes if reallocated funds are awarded • Fiscal hosts and Perkins contacts will need to submit an adjusted Post Secondary Budget to add the reallocated basic and reserve dollars. www. applyheremn. org/index. do • After the revised budget and plan expenditures is approved it is important to start spending the reallocated funds • Critical to spend based on FIFO

How State Leadership Dollars are Expended • 10% of the State Award may be used as Leadership funds • Of that 10%, based on Federal requirements, $110, 000. 00 are set aside from the Postsecondary Leadership funds for State Institutions and Non. Trad • Additional Leadership dollars may be awarded to campuses based on: • Collaboration between the System Office and campuses for projects through Intra-agency agreement between system office and the receiving college www. finance. mnscu. edu/contracts-purchasing/contracts/forms/index. html • Intra-agency agreement for Temporary Special Assignment of Personnel www. hr. mnscu. edu/intra-agency_agreement/index. html • Professional-technical contracts

Intra-Agency Agreements Between System Office and College The college sets up a separate cost center within a NON-PERKINS Appropriation for each intra-agency agreement To receive reimbursement: • College invoices the System Office for expenditures incurred based on the agreement parameters, using object code 9806, Inter Mn. SCU transfer revenue • System office pays the college • College records the payment to the Non-Perkins cost center

Year End Considerations Based on the established time lines, the System Office will perform a year-end reconciliation of the Perkin’s grant ensuring all institutions have been reimbursed for all expenses incurred within the timeline, and that there is no overspending Unspent award money is recaptured and redistributed to either the system office or the consortia, based on Federal requirements. • Unspent reallocated funds are returned to the System Office and potentially returned to the USDOE • Unspent funds are recaptured and awarded (reallocated) back to the consortia based on a formula

Consortium Monitoring • The System Office conducts annual audits and monitoring visits at designated consortia • Each consortium will be monitored at least once within a three year time frame • Included in the monitoring, is a fiscal desk audit of the previous year’s fiscal activity • Schedule and procedure: http: //cte. mnscu. edu/directories/portal. html

In conclusion: Due diligence of the Perkins plan is the responsibility of the consortia leaders, which includes proper fiscal management. – Is the spending directed at improving career and technical education? – Is it required, permissive, or allowable? – Does it pass the supplement NOT supplant test? Business practice must be in compliance with Federal, EDGAR, guidelines as well as State, and Minnesota State Colleges and Universities policies and procedures.

Perkins CTE Federal Resources Perkins Act P. L. 109 -270 www 2. ed. gov/policy/sectech/leg/perkins/index. html US Department of Education General Administrative Regulations EDGAR -Code of Federal Regulations CFR www 2. ed. gov/policy/fund/reg/edgar. Reg/edgar. html Office of Management and Budget -OMB Circulars www. whitehouse. gov/omb/circulars_default

Perkins MN Financial Resources Local Consortium Applications www. applyheremn. org Perkins IV Operational Handbook www. minnstate. edu/system/cte/consortium_resources/documents/P erkins-IV-Operational-Handbook-2016. pdf Required and permissive use of funds www. minnstate. edu/system/cte/consortium_resources/documents/m n-perkins-consortium-required-and-permissive-use-of-funds-9 -1817 dkw. pdf

CTE Professional Development Resources www. minnstate. edu/system/cte/ professionaldevelopment/monthly-webinars. html § Webinar Recordings, Power. Points § Schedule for Fall Webinar Series § Calendar of Monthly Webinars – Thursdays, 9 am

Perkins Fiscal Considerations ~ Postsecondary Jeralyn. Jargo@minnstate. edu State Director, Career Technical Education 651 201 -1650 Judy. Bradford@minnstate. edu Grants Accountant, Finance Division 651 -201 -1770 Enter your questions in the “Chat” field OR request to unmute your phone line and ask your questions.