NATIONAL STATE REHABILITATION COUNCIL FORUM JUNE 24, 2013 Vocational Rehabilitation Program Financial Management 1

NATIONAL STATE REHABILITATION COUNCIL FORUM

JUNE 24, 2013

Vocational Rehabilitation Program Financial

Management1

Today’s Presentation

Terms for the Informed SRC

1.Basic Support Program Formula2.Match3.Maintenance of Effort (MOE)4.Allowable Costs5.I&E Expenditures6.Federal Program Income7.Carryover8.Reallotted Funds9.107 Monitoring

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Effective Partnership

How can the SRC be an effective partner

with the VR agency in improving the VR program?

Be an INFORMED partner in fiscal matters!

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The Basics4

Basic Support Program Formula

Determining State Allotments

The allotment of Federal funds for vocational rehabilitation services for each State is computed in accordance with the requirements of Section 110 of the Rehabilitation Act.

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Basic Support Program Formula

The formula to allocate funds is based on a combination of factors including but not limited to:

State per capita income State population

Grant amounts are calculated in accordance with the program formula consistent with the appropriation level.

*Refer to RSA Website for additional information

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Guidance and Reference Materials 7

OMB Circulars

ISSUANCES

EDGAR

Feeling Like a Fiscal analyst Yet?

Good News!

You don’t have to know ALL these details to be an effective SRC partner!

More Good News! If you want to know more, the

RSA Website: Guidance and Technical Assistance session will help you get there!!

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What have we covered so far?



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Match10

78.7% FEDERAL SHARE

21.3%STATE SHARE

34 CFR 361.60(a)

Match11

Typical Sources…

State appropriations.

Transfers from other units of State government. Third-party cooperative arrangements involving

funds from other public agencies. (34 CFR 361.28)

Match Calculation

FOR EXAMPLE

$27,800,000 (award amount) / .787 (Fed share)

= $35,324,015

In this example, total program outlays must equal or exceed $35,324,015 for the grantee to utilize its entire Federal allotment of $27,800,000.

$35,324,015 - $27,800,000 = $7,524,015

(State share of program expenditures)

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Match13

Federal Allotment

$27,800,000

Required State Match

$7,524,015

Total Program Outlay

$35,324,015

34 CFR 361.60(a)

Match

Expenditures from both agencies - General and Blind - are combined to determine compliance with the match requirement.

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Maintenance of Effort

In any given Federal FY, if State non-Federal expenditures fall below total State non-Federal expenditures for the fiscal year two years before the FY under review, the State has not met its MOE requirement.

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34 CFR 361.62

Maintenance of Effort16

State Expenditures

FY 2011

$14,665,000

2011 + 2 years =

State MUST expend a minimum of

$14,665,000 in FY 2013

FOR EXAMPLE


FY 2011 $14,665,000

FY 2013 $14,000,000

MOE Shortfall ($ 665,000)

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FY 2013 MOE Shortfall ($665,000)

This means:

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Expenditures from both agencies - General and Blind -are combined to determine compliance with the MOE requirement.

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Waivers…

May be granted to permit the State to respond to exceptional or uncontrollable

circumstances i.e. natural disasters

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34 CFR 361.62(d)

Allowable Costs

Governmental units are responsible for the efficient and effective administration

of Federal awards.

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Allowable Costs

Costs must be:

Necessary and reasonable for the proper and efficient performance and administration of Federal awards.

Allocable to Federal awards under the provisions of the Circular.

Authorized or not prohibited under State or local laws or regulations.

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2 CFR Part 2, 225

What have we covered so far?



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I&E Expenditures

I&E = Innovation & Expansion Activities

States must use a portion of funds allotted for the development and implementation of innovative approaches to expand and improve the provision of

vocational rehabilitation services.

34 CFR 361.35

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I&E and the SRC

1. I&E is found in State Plan Attachment 4.11(d)

The SRC reviews the State Plan

2. I&E = funding support for the SRC

The SRC needs a Resource Plan for its funding support

(34 CFR 361.17 (h)(8)(i)(1)-(5))

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Federal Program Income

…income received by the State that is directly generated by an activity supported under the grant.

Typical sources

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34 CFR 361.63

• Payments from the SSA for rehabilitating Social Security beneficiaries

• Payments received from workers’ compensation funds • Fees for services to defray part or all of the costs of

services provided• Income generated by a State-operated community

rehabilitation program 34 CFR 361.63(b)

Federal Program Income

Must be used for the provision of VR services, administration of the State Plan, or carrying out innovation and expansion activities

Must be spent before Federal funds are drawn down

Can also be transferred to: Independent Living – Parts B and C

Independent Living – OIB

Client Assistance Program

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Carryover

Any Basic Support Program funds which remain unobligated at the end of the year of appropriation…including realloted funds…remain available for obligation during the succeeding fiscal year…

The state may only carry forward the unexpended Federal funds it was able to match in the year the funds were appropriated.

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34 CFR 361.64

Reallotted Funds

No later that 45 days before the end of each fiscal year, States report to RSA any amount of their full allotment which cannot be used or matched.

As soon as possible, but not later than the end of the fiscal year, RSA reallots these funds to other States that can use those additional funds during the current or subsequent fiscal year...

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Reallotted Funds

…providing the State can meet the matching requirement by obligating the non-Federal share of any reallotted funds in the fiscal year for which the funds were appropriated.

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34 CFR 361.65(b)

Funds reallotted to another State are considered to be an increase in the recipient State’s

allotment for the fiscal year for which the funds were appropriated.

107 Monitoring31

We’re from the Federal Government...

And, we’re here to HELP you!

107 Monitoring

Section 107 of the Rehabilitation Act of 1973, as amended, requires the Commissioner of the Rehabilitation Services Administration (RSA) to conduct annual reviews and periodic on-site monitoring of programs authorized under Title I of the Rehabilitation Act to determine whether a vocational rehabilitation (VR) agency is complying substantially with the provisions of its State Plan under Section 101 of the Rehabilitation Act and with the Evaluation Standards and Performance Indicators established under section 106.

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107 Monitoring 33

Monitoring and Technical Assistance Guide*Can be found on the RSA website*

Focus Areas• Organizational Structure

• Transition Services

• Fiscal Integrity

The SRC is a stakeholder in the 107 monitoring process

Fiscal Integrity Priority Focus Area 34

• Matching and Earmarking

• Payroll• Procurement• Program Income• Property

Management• Record Retention

Be an Informed Partner!



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In Closing….

Understand how the agency’s fiscal status may affect services

Be familiar with emerging issues

Be an Informed Partner in Fiscal Matters!

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Resources

RSA website: www.rsa.ed.gov

State Liaisons: www.rsa.ed.gov

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Presenter Information

Sean BarrettFinancial Management SpecialistDepartment of EducationRehabilitation Services [email protected]

Corinna StilesVocational Rehabilitation Program SpecialistDepartment of EducationRehabilitation Services [email protected]

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Documents

NATIONAL STATE REHABILITATION COUNCIL FORUM JUNE 24, 2013 Vocational Rehabilitation Program Financial Management 1