Perkins Fiscal Procedures and Requirements for Managing the
Funds--Post-SecondaryOctober 17, 2012
JoAnn Simser Shannon KohlmanState Director, CTE Grants AccountantSystem Director, Perkins Federal Grant
Finance Division
[email protected] [email protected]
651-201-1650 612-548-2067
Slide 2
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 3
FY2013 Perkins IV Budget for Minnesota
October 1, 2012 Allocation
A Title 1 Assistance to States 16,754,034.00
B Title 11 (Tech Prep) Allocation -
C Total Award A + B 16,684,637.00
D 26 Consortia (85% of total award) 0.85 * C 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
H 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
K State Leadership (up to 10%) 0.10 * C 1,668,463.70
L Secondary Programs 44% 0.44 * K 734,124.03
M Postsecondary Programs 56% 0.56 * K 934,339.67
N State Institutions, max of 1% of total award 50,000.00
O Non Traditional Training, must spend $60 - $150K 60,000.00
P State Leadership Initiatives M - N - O 824,339.67
Q State Administration (5%) 0.05 * C 834,231.85
R Fiscal Agent responsibility--Post-Secondary (5% of 5%) 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
Total Award D + K + Q 16,684,637.00
Slide 4
FY13 Local Consortium Award Allocations
• FY13 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
Slide 5
Perkins 2012-2013 SFY13 Award Letter
Basic and Reserve Allocations
Forward Funding
Slide 6
Reallocation Award Letter—coming later
Prior Year Reallocation
FIFO
Slide 7
FY13 Local Consortium Budget Revisions with Reallocated Funds
• Local consortium contacts will need to review their approved FY13 local application and decide where to make necessary budget changes
http://www.cte.mnscu.edu/perkinsIV/applications.html
• Fiscal hosts and Perkins contacts will need to submit an adjusted Post Secondary Budget to add the reallocated allocation on the FY13 Budget Summary .
http://www.cte.mnscu.edu/forms/index.html
Slide 8
FY13 Budget Summary
Slide 9
Why Multiple GL’s?
• Federal requirements stipulate that each Grant Award activity deliverer reports with the following attributes:
Data consistency
Report reproducibility
Clear Audit trail
Ability to create consolidated annual report
Slide 10
GL’s Assigned by Office of the Chancellor
• State fiscal year runs from July 1 through June 30.
• Use of different General Ledgers to ensure full transparency across years:
Name FY 13 FY14
Basic 384131 384141
Reserve 384132 384142
Leadership 384133 384143
Sub-Grants 384134 384144
Reallocation 384135 384145
Slide 11
Business Office at System Office (SO) assigns five GL numbers
Chart of Account Set-up:
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
SO directs all colleges to use ONLY the assigned five GL’s for their accounting systems
Business Office at each consortium fiscal contact college loads its budgets in accordance with its awarded grant dollars into its accounting systems
Slide 12
How State Leadership Dollars are Expended
• Intra-agency agreements between system office and colleges
• To receive reimbursement: Colleges invoice system office for
expenditures incurred under the agreement System office reimburses collegesColleges reduce their expenditures by the
amount paid
Slide 13
How State Leadership Dollars are Expended (cont.)
• Perkins IV Agreements for Community and Technical Colleges
• To receive reimbursement:Colleges establish a cost center within
leadership G/L and load budget specified within the agreement
Establish a separate cost center for each Perkins Agreement
Access funds using the drawdown expenditure reimbursement process specified for basic grants
Slide 14
Drawdown Expenditure Reimbursement Process
System office grant accountant checks the Perkins GL’s forall 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.
College receives notification of award specifyingthe maximum they are authorized to spend
Business office at the system office communicates the GL numbers to the colleges
College starts spending the budgeted amount within thelimits of the grant requirements charged against the
appropriate current year cost centers
Slide 15
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 16
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 17
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 18
Consortium Monitoring
• System office will conduct a fiscal audit and visit as part of consortium monitoring process at six consortia in FY13
Monitoring visits and fiscal audits at all consortia in FY 10- FY13Schedule and procedure:
http://www.cte.mnscu.edu/directories/portal.html#Criteria
Slide 19
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 JoAnn 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/documents/Operational_Handbook_(4-2-10).pdf p. 24-36
Slide 20
3.5 Financial Cost Centers5. 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 officePerkins IV Operational Handbook, Section III Financial Requirementshttp://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf p. 24-36
Slide 21
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 22
Perkins Fiscal Resources
• Perkins IV Operational Handbook-Section III Financial Requirementshttp://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf p. 24-36
• Local Consortium Application Sections I, II, III www.cte.mnscu.edu/forms/index.html
• Monitoring Visits and Financial Auditshttp://www.cte.mnscu.edu/directories/portal.html#Criteria
• Frequently Asked Questions Home page-right side www.cte.mnscu.edu/index.html
Slide 23
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
www.cte.mnscu.edu
Slide 24
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.