Perkins Fiscal Procedures and Requirements for Managing the

Perkins Fiscal Procedures and Requirements for Managing the Funds-Postsecondary Carl D. Perkins Career Technical Education Act of 2006 1

Today’s Presenters Minnesota State Colleges and Universities Shannon Kohlman Business Manager Finance Division Shannon. kohlman@so. mnscu. edu 651 -201 -1756 Judy Bradford Grants Accountant, Finance Division Judy. bradford@so. mnscu. edu 651 -201 -1770 Jo. Ann Simser, Ed. D. Debra Hsu, Ed. D. State Director, Associate Director, Academic and Student Affairs joann. simser@so. mnscu. edu 651 201 -1650 Career Technical Education Academic and Student Affairs debra. hsu@so. mnscu. edu 651 -201 -1686 Career Technical Education 2

Goals • Review accounting procedures designed to address reporting requirements • Clarify two different ways college fiscal hosts receive reimbursement—cash draws and invoicing • Explain the process for accurately drawing down and receipting the funds expended Slide 17

FY 2015 Perkins CTE Budget for Minnesota A Title 1 Assistance to States B Title 11 (Tech Prep) Allocation October 1, 2014 Allocation 16, 684, 637. 00 16, 684, Total Award C D 26 Consortia (85% of total award) A+B 0. 85 * C 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. 1002 * 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% (change from prior yr. 44%) 0. 44 * K 617, 331. 57 M Postsecondary Programs 67% (change from prior yr 56%) 0. 56 * K 1, 051, 132. 13 N State Institutions, max of 1% of total award O Non Traditional Training, must spend $60 - $150 K P PS State Leadership Initiatives Q R 50, 000. 00 60, 000. 00 State Administration (5%) 0. 05 * C Fiscal Agent responsibility--Post-Secondary (5% of 5%) S Remainder to be split T U 941, 132. 13 M-N-O 834, 231. 85 41, 711. 59 0. 05 * Q Q-R 792, 520. 26 Postsecondary (50%) change from prior yr. 65% 0. 65 * S 396, 260. 13 Secondary (50%) change from prior yr 35% 0. 35 * S 396, 260. 13 Total Award D+K+Q 16, 684, 637. 00

FY 15 Local Consortium Award Allocations • Slide 17 FY 15 Local Consortium Perkins Plan Approval Notification and Fiscal Information including the award was 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 after July 1, 2014

Sample Perkins CTE Award Letter Basic and Reserve Allocations Forward Funding

Reallocation Award Letter—coming later Prior Year Reallocation FIFO

2013 -2014 Unexpended Consortium Funds Recaptured and Reallocated in FY 15 • Local consortium contacts will need to review their approved FY 15 local application and decide where to make necessary budget changes • Fiscal hosts and Perkins contacts will need to submit an adjusted Secondary and Post Secondary Budget to add the reallocated basic and reserve allocation on the FY 15 Budget Summary. – http: //www. applyheremn. org/index. do Slide 17

Sample Consortium Budget Summary http: //www. applyheremn. org/index. do

3. 1 Local Application Budget Changes Budget changes of $10, 000 within a goal must be preapproved by the system office CTE staff-send an email request to the state CTE director. College coordinators must receive written email approval before expenditure is made. • Perkins IV Operational Handbook, Section III Financial Requirements, p. 24 -36 http: //www. cte. mnscu. edu/consortia_resources/documents/Operational_Handbook_(4 -2 -10). pdf

Why Multiple GL’s? • Federal requirements stipulate that each Grant Award activity deliver reports with the following attributes: Ø Data consistency Ø Report Ø Clear reproducibility Audit trail Ø Ability to create consolidated annual report

GL’s Assigned by System Office • State fiscal year runs from July 1 through June 30. • Use of different General Ledgers to ensure full transparency across years: Name FY 15 Basic 384151 Reserve 384152 Reallocation • Basic 384141 • Reserve 384142

Chart of Account Set-up: Business Office at System Office (SO) assigns four GL numbers SO directs all colleges to use ONLY the assigned GL’s for their accounting systems 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 Business Office at each consortium fiscal contact college loads its budgets in accordance with its awarded grant dollars into its accounting systems

Cash Draw Expenditure Reimbursement Process System Office Grant Accountant communicates new Perkins Grant G/Ls at the start of each fiscal year College loads budgeted amounts into Perkins Grant G/Ls from Consortium Award Notification letter College spends budgeted amounts from Perkins Grant G/Ls 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.

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

Cash Draw Considerations Grant Accountant will be sending funds for the GL’S that are assigned by the system office. The system office will not send any funds in excess of the allocated amounts.

How State Leadership Dollars are Expended • Intra-agency agreement between system office and the receiving college • http: //www. finance. mnscu. edu/contractspurchasing/contracts/forms/index. html • Intra-agency agreement for Temporary Special Assignment of Personnel • http: //www. hr. mnscu. edu/intraagency_agreement/index. html • In FY 15 the System Office will not be issuing Perkins Agreements. We will use Intra-agency agreements.

Intra-agency agreements between system office and college http: //www. finance. mnscu. edu/contracts-purchasing/contracts/forms/index. html http: //www. hr. mnscu. edu/intra-agency_agreement/index. html • The college sets up a separate cost center within a NONPERKINS GL for each intra-agency agreement. • To receive reimbursement: Ø College invoices system office for expenditures incurred under the agreement Ø System office pays the college Ø College reduces their expenditures by the amount paid

3. 5 Financial Cost Centers 5. Sub-grants GL Sub-grants may be made from one college to another recipient • Entity receiving the funds • Pays from the source-the Basic GL, Reserve GL, or Reallocated GL • Will invoice the fiscal agent for expenses incurred and when received will receipt the funds by crediting Grant Revenue - The entity granting the funds • Will pay the invoice and when they pay the invoice they will Debit Grant revenue • They will be reimbursed through a system office draw and receipt as a credit to Grant Revenue

Year End Considerations The System Office will perform a year end reconciliation of the Perkin’s grant ensuring that all institutions have been reimbursed for all expenses incurred and that there is no overspending. There will be quarterly monitoring of GL balances to ensure each institution is using the proper GL’s.

Consortium Monitoring System office will conduct fiscal audit and visits as part of the consortium monitoring process at designated consortia in FY 15 Ø Schedule and procedure: http: //www. cte. mnscbu. edu/directories/portal. html#Criteria Ø Perkins IV Monitoring visits and fiscal audits were conducted at all 26 consortia in FY 10 - FY 13 Ø Targeted Monitoring visits including desk fiscal audits are being conducted in FY 14, FY 15 and until Perkins is reauthorized.

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

Perkins MN Financial Resources Local Consortium Applications • http: //www. applyheremn. org Perkins IV Operational Handbook-Section III Financial Requirements http: //www. cte. mnscu. edu/consortia_resources/documents/Operational _Handbook_(4 -2 -10). pdf p. 24 -36 Monitoring Visits and Financial Audits http: //www. cte. mnscu. edu/directories/portal. html#Criteria Frequently Asked Questions Home page-right side www. cte. mnscu. edu/index. html

FAQs www. cte. mnscu. edu

Time for your questions… 25

A note about CEUs … Teachers can get certificate (1 hour) within two weeks of completing the session evaluation for today’s webinar. NOTE: Since there is no teacher CEU preapproval process, it is up to the local continuing education committee to decide whether or not these hours will apply to your teaching license renewal. 26

Materials Webinar recordings, presentation Power. Points www. cte. mnscu. edu/professionaldevelopment/ finance-and-accountability. html MDE Office of Career and College Success http: //education. state. mn. us/MDE/Stu. Suc/Career. Ed/index. html Mn. SCU Career and Technical Education www. cte. mnscu. edu/ 27

2014 Fiscal Webinars Perkins CTE Requirements and Uses of Funds - Secondary and Postsecondary Wednesday, September 24, 2014 10: 00 -11: 00 a. m. Treatment of Money Detail - Secondary Monday, September 29, 2014 2: 00 p. m-3: 00 p. m. Treatment of Money Detail - Postsecondary Tuesday, September 30, 2014 2: 00 p. m-3: 00 p. m. www. cte. mnscu. edu/professionaldevelopment/index. html 28

2014 Accountability Webinars Perkins Accountability I - Secondary & Postsecondary Tuesday, September 23, 2014 9: 00 -10: 00 a. m. Perkins Accountability II - Postsecondary Tuesday, September 23, 2014 11: 00 a. m-12: 00 p. m. Perkins Accountability II - Secondary TBD in October, 2014 29 www. cte. mnscu. edu/professionaldevelopment/ finance-and-accountability. html

Upcoming Events Perkins Consortium Coordinators Meeting November 12, 2014 Normandale Community College www. cteworksminnesota. org/registration/ coordinators-meeting/ CTE Works! Minnesota Summit on Excellence in Career & Technical Education 30 November 13, 2014 Crowne Plaza Minneapolis West, Plymouth, MN www. cteworksminnesota. org

Today’s Presenters Minnesota State Colleges and Universities Shannon Kohlman Business Manager Finance Division Shannon. kohlman@so. mnscu. edu 651 -201 -1756 Judy Bradford Grants Accountant, Finance Division Judy. bradford@so. mnscu. edu 651 -201 -1770 Jo. Ann Simser, Ed. D. Debra Hsu, Ed. D. State Director, Associate Director, Academic and Student Affairs joann. simser@so. mnscu. edu 651 201 -1650 Career Technical Education Academic and Student Affairs debra. hsu@so. mnscu. edu 651 -201 -1686 Career Technical Education 31

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