Perkins Fiscal Procedures and Requirements for Managing the

Perkins Fiscal Procedures and Requirements for Managing the Funds-Secondary & Postsecondary April 2017 CTE Professional Development Webinar www. cte. mnscu. edu/professionaldevelopment/monthly-webinars. html

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Today’s Presenters Minnesota State Colleges and Universities Minnesota Department of Education 3 Jeralyn Jargo State Director, Career Technical Education Academic and Student Affairs Michelle Kamenov Supervisor, Career Technical Education Academic and Student Affairs Jeralyn. Jargo@minnstate. edu 651 -201 -1650 Michelle. Kamenov@state. mn. us 651 -582 -8434 Judy Bradford Laurie Rheault Grants Accountant, Finance Division Judy. Bradford@minnstate. edu 651 -201 -1770 Grants Services Specialist, Finance Division Laurie. Rheault@state/mn. us 651 -582 -8432

Goals • Review GL setup designed to support reporting requirements • Secondary SERVS application • Allocation and Spending timeframes • Explain allocation and reallocation award funds and spending • Outline the process for accurately receipting draw revenue • Clarify spending of leadership funds and sub-grant fiscal host responsibilities and processing 3

Post-Secondary G/Ls Assigned by the System Office • • State fiscal year runs July 1 through June 30 The GL number is based on the fiscal year Name FY 18 Basic 384181 Reserve 384182

Secondary FINs Assigned by MDE • • State fiscal year runs July 1 through June 30 FIN number do not change from year to year Name Basic 428 Reserve 475

Why Separate GL’s & FINs Codes for Basic and Reserve? Federal reporting requirements stipulate that each Grant Award: • • Data consistency Report reproducibility Clear Audit trail Ability to create consolidated annual report

FY 18 Perkins Award Breakdown for Minnesota FY 18 PERKINS IV AWARD 2017 -2018 October 1, 2017 Allocation A Title 1 Assistance to States B Title 11 (Tech Prep) Allocation Total Award C D 16, 684, 637. 00 26 Consortia (85% of total award) A+B 0. 85 * C 16, 684, 637. 00 14, 181, 941. 45 E Basic Grant (90% of the 85%) 0. 90 * D 12, 763, 747. 31 F Secondary Programs 42% 0. 42 * E 5, 360, 773. 87 G Postsecondary Programs 58% 0. 58 * E 7, 402, 973. 44 0. 10 * D 1, 418, 194. 15 H Reserve (10% of the 85%) I Secondary Programs 42% 0. 42 * H 595, 641. 54 J Postsecondary Programs 58% 0. 58 * H 822, 552. 60 K State Leadership (up to 10%) 0. 10 * C 1, 668, 463. 70 L Secondary Programs 37% 0. 37 * K 617, 331. 57 M Postsecondary Programs 63% 0. 63 * K 1, 051, 132. 13 N State Institutions, max of 1% of total award 50, 000. 00 O Non Traditional Training, must spend $60 K - $150 K 60, 000. 00 P State Leadership Initiatives Q R 941, 132. 13 M-N-O State Administration (5%) 0. 05 * C Fiscal Agent responsibility--Post-Secondary (5% of 5%) 834, 231. 85 0. 05 * Q 41, 711. 59 S Remainder to be split Q-R 792, 520. 26 T Postsecondary (50%) 0. 50 * S 396, 260. 13 U Secondary (50%) 0. 50 * S 396, 260. 13 Total Award D+K+Q 16, 684, 637. 00

When to start posting to FY 18 GLs/FIN and using the FY 18 funds • Forward Funding – July 1 st through September 30 th • Full Award – October 1 st through June 30 th

Sample Perkins CTE Award Letter 10

Post-Secondary Chart of Account Set-up: Business Office at the System Office (SO) determines the G/L numbers for the new grant year System Office sends each consortium an Award Notification Letter which contains the assigned G/L numbers For Basic Grant, each fiscal contact college creates a minimum of six cost centers - five cost centers linked to the five goals in their plan and one administration cost center

2016 -2017 Unexpended Consortium Funds Recaptured and Reallocated in FY 18 • FY 17 grant spending ends June 30, 2017 • Unused Post-Secondary Basic and Reserve funds are recaptured and no longer available • Recaptured post-secondary awards are pooled and reallocated to the consortia based on a formula • Reallocated funds available to use around January or February • Reallocated award letter sent indicating amounts to basic and reserve and corresponding GLs and FIN • Reallocated funds must be spent by June 30, 2018 or forfeited 8

Post Secondary G/Ls Used for Reallocated Funds • • • Use of prior year’s general ledgers numbers Differentiated by new cost centers for the reallocated year Grant that extends over a two year period will only use two GLs Name FY 17 Reallocation Basic 384161 Reallocation Reserve 384162

Secondary FIN Used for Reallocated Funds • • Use of prior year’s general ledgers numbers Differentiated by cost centers for the reallocated year Name FY 18 Reallocation Basic 428 - 011 Reallocation Reserve 475 - 011

Post Secondary Cash Draw Expenditure Reimbursement Process College spends budgeted amounts from Perkins designated cost centers and G/L numbers System Office Grant Accountant reviews College expenditures and draws Perkins funds accordingly System Office Grant Accountant enters the SWIFT Deposit by College System Office Grant Accountant notifies each College the amount of the cash draw/SWIFT deposit; College receipts the cash draw Funds are not drawn on misposted expenditures. Process expenditure correction and move to correct GLs prior to next draw

Post Secondary Receipting the Cash Draw Revenue should be receipted to a cost center within the G/L where expenditures incurred: • Either receipt to each CC where expenditures incurred • Or receipt to one CC within the G/L • Revenue should be receipted to object code 9401 with a “Y” Flag

Post Secondary Cash Draw Considerations • The system office will not send any funds in excess of the allocated award amounts or for any funds not in the assigned G/Ls • Spending activity is reviewed before each draw to ensure each institution is using the proper G/Ls • Draw notifications will reference items that require some kind of adjustment before those expenditures can be reimbursed

Post Secondary Draw Notification Example

SERVS Draws for Secondary Funds Draws are made by UFARS FIN Code Course Code and Object Code • Fin Code 428 – Basic • Fin Code 475 – Reserve • Course Code 000 – current year • Course Code 011 – prior year • Object Code

Accessing your Secondary Basic and Reserve Funds

FY 17 Secondary Expenditures • Budgets in SERVS Financial Must Match your budget in your previously approved application • All Budget Revisions and Expenditure Draws must be completed by November 1, 2017

Leadership Dollars Expended and Reimbursed – Post Secondary • Intra-Agency Agreement executed between campus & SO • www. finance. mnscu. edu/contractspurchasing/contracts/forms/index. html • Set up a separate cost center in a Non-Perkins GL • Campus incurs expenses under the agreement • Campus generates an invoice(s) and sends to System Office • System Office processes the invoice(s) for payment • Campus receipts the funds to the outstanding payable, reducing their expenditures

Leadership Dollars Expended and Reimbursed – Secondary • Secondary leadership dollars for special projects • Intra Agency Agreement • Contract • Grant • Annual Plan Agreement (APA) • Set up a separate fund from your formula Perkins funds • Fiscal Agent incurs expenses under the agreement • Fiscal Agent generates an invoice(s) and sends to MDE • MDE processes the invoice(s) for payment

Post-Secondary Sub-Grants G/Ls Sub-grants may be made from one college to another recipient college Entity receiving the funds • Pays from the source-the Basic G/L, Reserve G/L, or Reallocated G/L • Will invoice the fiscal agent for expenses incurred and will receipt the incoming funds by crediting Grant Revenue The entity granting the funds • Will pay the invoice debiting Grant Revenue • They will be reimbursed through a system office draw receipted as a credit to Grant Revenue

Sub-Grants Secondary Sub-grants may be made from one fiscal agent to another recipient district The fiscal agent granting a sub award • Should use UFARS codes 303 or 304 whichever is appropriate to record the expenditure • Complete UFARS Manual can be found at http: //education. state. mn. us/MDE/dse/schfin/UFARS/in dex. htm • Specific UFARS questions contact: Deb Meier MDE UFARS Specialist debra. a. meier@state. mn. us

Consortium Monitoring • The System Office/MDE 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 – “Monitoring for Local Consortia” www. cte. mnscu. edu/directories/portal. html

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 27

Perkins MN Financial Resources Local Consortium Applications www. applyheremn. org Perkins IV Operational Handbook-Section III Financial Requirements www. cte. mnscu. edu/consortia_resources/documents/ Operational_Handbook_(4 -2 -10). pdf p. 24 -36 28

Applying for your Secondary Funds FIN 428 and FIN 475

State Educational Record View and Submission System • SERVS (State Educational Record View and Submission System) is a password protected website where you can find all grant opportunities through the Minnesota Department of Education https: //w 1. education. state. mn. us/EGMS/

Submitting a Separate Secondary Basic and Reserve Placeholder Application • Why do I have to submit a placeholder application in SERVS?

Troubleshooting SERVS • SERVS - External User Access Recertification System

Placeholder Application in SERVS

Submitting your Secondary Placeholder Application • Log into SERVS Financial and follow the steps to submit application • Once the process is completed you will receive confirmation that your application has been successfully submitted

Electronically Sign the Application

Questions? Discussion! Enter your questions in the “Chat” field OR request to unmute your phone line and ask your questions. We value your questions and feedback. It helps us all do better. 36

Perkins Fiscal Procedures and Requirements for Managing Funds Contacts Jeralyn. Jargo@minnstate. edu State Director, Career Technical Education 651 201 -1650 Michelle. Kamenov@state. mn. us Supervisor, Career Technical Education 651 -582 -8434 Judy. Bradford@minnstate. edu Grants Accountant, Finance Division 651 -201 -1770 Laurie. Rheault@state. mn. us 37 Grants Specialist, Grant Services 651 -582 -8432