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

JoAnn.Simser@so.mnscu.edu Shannon.kohlman@so.mnscu.edu

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.