Perkins Fiscal Procedures and Requirements for Managing the

Perkins Fiscal Procedures and Requirements for Managing the Funds--Post-Secondary October 17, 2012 Jo. Ann Simser State Director, CTE System Director, Perkins Federal Grant Jo. Ann. Simser@so. mnscu. edu 651 -201 -1650 Shannon Kohlman Grants Accountant Finance Division Shannon. kohlman@so. mnscu. edu 612 -548 -2067

Goals • Review accounting procedures designed to address reporting requirements • Clarify the two different ways partners receive reimbursement—draw downs and invoicing • Explain the process for accurately drawing down and receipting the funds expended Slide 2

FY 2013 Perkins IV Budget for Minnesota October 1, 2012 Allocation A Title 1 Assistance to States B Title 11 (Tech Prep) Allocation - A + B 16, 684, 637. 00 Total Award C D 26 Consortia (85% of total award) 0. 85 * C 14, 181, 941. 45 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 Reserve (10% of the 85%) 0. 1002 * D 1, 418, 194. 15 I Secondary Programs 42% 0. 42 * H 595, 641. 54 J Postsecondary Programs 58% 0. 58 * H 822, 552. 60 H K State Leadership (up to 10%) 0. 10 * C 1, 668, 463. 70 L Secondary Programs 44% 0. 44 * K M Postsecondary Programs 56% 0. 56 * K 934, 339. 67 50, 000. 00 60, 000. 00 M - N - O 824, 339. 67 N State Institutions, max of 1% of total award O Non Traditional Training, must spend $60 - $150 K P State Leadership Initiatives Q R 734, 124. 03 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 (65%) 0. 65 * S 515, 138. 17 U Secondary (35%) 0. 35 * S 277, 382. 09 Slide 3 E 16, 754, 034. 00 Total Award D + K + Q 16, 684, 637. 00

FY 13 Local Consortium Award Allocations • Slide 4 FY 13 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 approval of local consortium plan after July 1, 2013

Perkins 2012 -2013 SFY 13 Award Letter Basic and Reserve Allocations Forward Funding Slide 5

Reallocation Award Letter—coming later Prior Year Reallocation FIFO Slide 6

FY 13 Local Consortium Budget Revisions with Reallocated Funds • Local consortium contacts will need to review their approved FY 13 local application and decide where to make necessary budget changes http: //www. cte. mnscu. edu/perkins. IV/applications. html • Fiscal hosts and Perkins contacts will need to submit an adjusted Post Secondary Budget to add the reallocated allocation on the FY 13 Budget Summary. http: //www. cte. mnscu. edu/forms/index. html Slide 7

FY 13 Budget Summary Slide 8

Why Multiple GL’s? • Federal requirements stipulate that each Grant Award activity deliverer reports with the following attributes: Ø Data consistency Ø Report reproducibility Ø Clear Audit trail Ø Ability to create consolidated annual report Slide 9

GL’s Assigned by Office of the Chancellor Slide 10 • State fiscal year runs from July 1 through June 30. • Use of different General Ledgers to ensure full transparency across years: Name FY 13 FY 14 Basic 384131 384141 Reserve 384132 384142 Leadership 384133 384143 Sub-Grants 384134 384144 Reallocation 384135 384145

Chart of Account Set-up: Business Office at System Office (SO) assigns five GL numbers SO directs all colleges to use ONLY the assigned five 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 Slide 11

How State Leadership Dollars are Expended • Intra-agency agreements between system office and colleges • To receive reimbursement: ØColleges invoice system office for expenditures incurred under the agreement ØSystem office reimburses colleges ØColleges reduce their expenditures by the amount paid Slide 12

How State Leadership Dollars are Expended (cont. ) • Perkins IV Agreements for Community and Technical Colleges • To receive reimbursement: ØColleges establish a cost center within leadership G/L and load budget specified within the agreement ØEstablish a separate cost center for each Perkins Agreement ØAccess funds using the drawdown expenditure reimbursement process specified for basic grants Slide 13

Drawdown Expenditure Reimbursement Process Business office at the system office communicates the GL numbers to the colleges College receives notification of award specifying the maximum they are authorized to spend College starts spending the budgeted amount within the limits of the grant requirements charged against the appropriate current year cost centers System office grant accountant checks the Perkins GL’s for all colleges for accumulated expenditures and completes the draw down from the federal systems to reimburse college System office grant accountant enters a Receipt Wire in SWIFT to ensure the funds are directed to college System office grant accountant sends college notice that funds will be deposited in college’s SWIFT account. College fiscal contact ensures receipt of the funds into the appropriate Perkins cost center in ISRS. Slide 14

Receipting the Draw Down • Revenue should be receipted with in three business days after notification from the Grant Accountant. • Revenue should be receipted to object code 9401 with a Y Flag • Revenue should be receipted to the cost center where the expense is. Slide 15

Draw Down 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. Even if there is an expense in a cost center. Slide 16

Year End Considerations • Please record the expense in the correct object code as there will be no opportunity for changes after the fiscal year end closes. • This will result in accurate reporting. Slide 17

Consortium Monitoring • System office will conduct a fiscal audit and visit as part of consortium monitoring process at six consortia in FY 13 Ø Monitoring visits and fiscal audits at all consortia in FY 10 - FY 13 Ø Schedule and procedure: http: //www. cte. mnscu. edu/directories/portal. html#Criteria Slide 18

3. 1 Local Application Budgets Changes • Budget changes of $10, 000 within a goal must be preapproved by the system office CTE staff-send an email request to Jo. Ann Simser with a copy to Denise Roseland • College coordinators must receive written email approval before expenditure is made. – Perkins IV Operational Handbook, Section III Financial Requirementshttp: //www. cte. mnscu. edu/consortia_resources/do cuments/Operational_Handbook_(4 -2 -10). pdf p. 24 -36 Slide 19

3. 5 Financial Cost Centers 5. Sub-grants GL • Sub-grants may be made from one college to another recipient – Entity granting the funds • pays from the source-the Basic GL, Reserve GL, Reallocated GL or Leadership GL • reimbursed by system office – Entity receiving the funds • sets up a cost center in the sub-grant GL for each sub-grant and receipts grant funds and expenditures to that cost center • reimbursed by the sub-granting college, not system office Perkins IV Operational Handbook, Section III Financial Requirementshttp: //www. cte. mnscu. edu/consortia_resources/documents/O perational_Handbook_(4 -2 -10). pdf p. 24 -36 Slide 20

Perkins CTE Financial Questions – Please input your questions on the chat function. – We value your questions, input and feedback. It helps us all do better. Slide 21

Perkins Fiscal Resources • Perkins IV Operational Handbook-Section III Financial Requirements http: //www. cte. mnscu. edu/consortia_resources/documents/Operational_Handb ook_(4 -2 -10). pdf p. 24 -36 • Local Consortium Application Sections I, III www. cte. mnscu. edu/forms/index. html • 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 Slide 22

Perkins Fiscal Webinars • Perkins IV Law and Procedures and Requirements for Fiscal Agents-Part I, October 9 • Perkins IV Distribution and Uses of Funds-Part II, October 15 • Perkins Fiscal Procedures and Requirements for Managing the Funds– Post-Secondary, October 17 • Perkins Fiscal Procedures and Requirements for Managing the Funds – Secondary, October 24 Ø www. cte. mnscu. edu Slide 23

A note about CEUs… Teachers can get certificates (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. Slide 24