21 st cclc budget webinar april 2010. terminology budget summary – restates project plan as...
TRANSCRIPT
21st CCLC Budget Webinar
April 2010
TERMINOLOGYBudget Summary – restates project plan as
expenses
Budget Breakdown – itemizes and describes expenses
Payment Schedule – reflected monthly expected costs of budgeted plan
Expenditure Report – quarterly cumulative report of actual expenditures, based on approved budget
BUDGETS
A budget is a project plan in which ideas are translated into expenses.
No budget when submitted is more than an informed estimate of the costs to be incurred, but careful planning insures financial support is in place when needed.
IMPORTANT GRANT GUIDELINES
Project Begin Dates
Start date is dependent on grant receipt at ISBE. Grants cannot begin prior to JULY 1. Grants received at ISBE after JULY 1 begin on the day that a substantially approvable budget is received.
Recipients submitting grants in “substantially approvable” form can begin obligating funds at the time of receipt by ISBE without written approval.
If in doubt, do not obligate.
IMPORTANT GRANT GUIDELINES
Project End Dates In general, grants should be operated in a
twelve month period, usually July 1 to June 30.
August 31 end date applicable to projects offering summer activities past June 30.
End date extensions MUST be requested 30 days prior to the end date of the project.
Extension requests done via a budget amendment
GRANT BUDGETS
Understand allowable direct costs, forms and instructions.
Make sure important contact information is provided.
-- Region-County-District-Type Code
-- Contact Name, Address, Phone, Fax
-- Use forms that are provided
-- Send with original signatures
Do not “doctor” another form to submit.
COST ALLOCATION PLANS
Written plan that states how an entity will accumulate and distribute allowable admin costs in grants and identifies the methods used for distributing
Examples in Fiscal Policy and Procedures Handbook
Audits required yearly and may be charged to grant—prorated according to grants being audited
GRANT ACTIVITIES
Grant activities must be completed within the project beginning and ending dates.
Obligated funds can only be for projects that will fall within the timeline of the grant.
Liquidation of all obligations, including current year’s audit fee should be completed no later than 90 days after the project ending date.
CONTINUATION APPLICATIONS
No automatic continuation of a grant Grants received by July 1 receive a July 1 begin date. After July 1, the begin date is the day the budget is received
(with Continuation Application) at ISBE. Budget negotiations and corrections may continue after the date
of receipt.
No carryover of funds from previous year.
Unused funds become prepayment on FY11 grant amount.
SUPPLEMENT vs.
SUPPLANT Cannot approve regular expenses—e.g. rent, utilities,
etc., that are regular cost of “doing business.”
Cannot approve expenses required by state law Principals’ and superintendents’ salaries and other
supervisory personnel required by state law cannot be charged to a grant.
Payroll must be supported by time and effort documents.
Only costs incurred as a result of the grant, e.g. additional clerical time, additional phone usage, renting a meeting room for professional development.
REASONS FOR FREEZING FUNDS Cash on hand
Turn in an interim expenditure report to have funds released
Not doing annual audit
Not doing PPICS
Secretary of State informs ISBE of CBO/FBO not
being in good standing
UNSPENT FUNDS
Unspent funds in one year will be considered prepayment on the next fiscal year grant.
Unspent funds in the final year of the grant will be forfeited or returned to ISBE if they have already been sent to the grantee.
Please use all funds but always use wisely.
INTEREST INCOME
Grantees or sub-grantees can keep interest amounts only up to $100. This interest must go back into the program.
Other interest MUST be returned. Checks should be made payable to ISBE which will make payment to USDE.
Checks should be accompanied by a statement identifying the program and program year from which the interest was earned.
GRANTEE REQUIREMENTS
A completed copy of the approved application, approved budget, and approved amendments must be maintained by the grant recipient.
Continuation applications and budgets must also be maintained.
Documents are reviewed by ISBE staff to determine fiscal and program compliance.
EDGAR rules require that records be retained for three years after completing activities pertaining to grant funds or until all outstanding claims have been resolved.
WHERE DO I FIND BUDGETS & AMENDMENT FORMS?
www.isbe.net/21cclc
Resources
Budget forms for grants by cohort year, i.e., FY 07, 08, 09, 10.
PAYMENT SCHEDULES
Payments are requested in months as needed, based on projected dates of expenditures.
Salaries and fringe benefits are expended in equal intervals and should be projected in this manner.
Supplies, materials, and contracted services should be requested in month in which the expenditure is expected.
PAYMENT SCHEDULES
Regular Term:July 1, 2010
thru June 30, 2011
When do activities begin?
JulyAugust
SeptemberOctober
NovemberDecemberJanuaryFebruary
MarchAprilMayJune
Extended Term:July 1, 2010
thru August 31, 2011
When do activities begin?
July 10August 10September
OctoberNovemberDecemberJanuaryFebruary
MarchAprilMayJune
July 11August 11
PAYMENT SCHEDULES
July 10August 10September
OctoberNovemberDecemberJanuaryFebruary
MarchAprilMayJune
July 11August 11
Total
$10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570
$8,570$8,590
$120,000
COMMON PAYMENT SCHEDULES
PROPER PAYMENT SCHEDULESJuly 10
August 10September
OctoberNovemberDecemberJanuaryFebruary
MarchAprilMayJune
July 11August 11
Total
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 30,000 $10,000 $10,000 $ 30,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 10,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 10,000 $30,000 $10,000 $ 5,000
$10,000 $ 5,000 $10,000 $ 5,000
$120,000 $120,000$120,000
HOW FISCAL YEARS CAN OVERLAPJuly 10
August 10September
OctoberNovemberDecemberJanuaryFebruary
MarchAprilMayJune
July 11August 11
Total
$ 0$ 0$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000$10,000 $ 120,000
July 10August 10September
OctoberNovemberDecemberJanuaryFebruary
MarchAprilMayJune
July 11August 11
Total
$ 5,000
$ 2,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000$
3,000 $ 120,000
InitialApplications/
Revised Budgets/ Amendments
ExpendituresThru: 12/31Due: 01/31
Amendment (if applicable)
Final Expenditures
Thru: 6/30Due: 07/31
GRANTPROCESS
SeptemberPayment
OctoberPayment
NovemberPayment
DecemberPayment
JanuaryPaymentFebruary
Payment
MarchPayment
AprilPayment
MayPayment
FinalPayment
Final Payment/PrepaymentDetermined
21st CENTURY GRANT PROCESS
ExpendituresThru: 03/31Due: 04/30
July – submit your original application
WHEN IS AN AMENDMENT NEEDED?
The scope of the program changes: e.g., summer school is added.
Change in a budget cell of 20% or $1000
(whichever is greater).
Adding a new expenditure (opening a new cell) on the budget
End date is changed (letter or e-mail will suffice on this)
EXPENDITURE REPORTS
Cash management tool
Transmitted electronically via IWAS
Notification sent via e-mail
Anything beyond the 20% variance is not accepted
Failure to submit = funds frozen until report is received
GRANT EXPENDITURES Expenditure reports should always reflect cumulative
expenditures.
Expenditures can vary by 20% or $1,000, whichever is the greater, on a budgeted cell.
Excess cash will be withheld from future scheduled payment(s).
A project is FINAL when the end date equals the expenditure through date with zero obligations. If an obligation is reported, the entity will have 90 days from the end date of the project to liquidate the obligation.
PREVIOUS PROBLEMS
• Final expenditure report overstated or understated
• Final expenditure report NOT cumulative
• Sub-grant expenditures not monitored
• Expenditure reports do not agree with the amounts recorded in the district’s general ledger
• Grant funds were not segregated (i.e., federal grant funds were used to cover local operating expenditures)
ELECTRONIC SERVICESwww.isbe.net
Financial Reimbursement Information System Inquiry (FRIS)
Electronic Expenditure Report System
IWAS HELP DESK 217-558-3600
NAVIGATING ISBE.net
FUNDING & DISBURSEMENTS
POLICY/PROCEDURES/REQUIREMENTS
HIGHLIGHTS
Fiscal Policies/Procedures/RequirementsIndirect Cost Rates
Pages 16 and 17Cost Allocation Plans
Pages 18 and 19Supplementing vs. Supplanting
Page 33
www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdf
NAVIGATING ISBE.net
FRIS INQUIRY
NAVIGATING ISBE.net
ELECTRONIC EXPENDITURE REPORTS
Important Notes
Limitation of administrative costs Function 2300
Limited to 5% of the total budget allocation Be sure to categorize correctly
Food Costs— allowed for meetings that include family members and
that take place during regular mealtime hours. Maximum allowable is $10 per person Not for meals for computer classes, GED classes, etc.
BUDGET REVIEW
Professional Development
Funds must be included for a minimum of three state level workshops
If there are no funds listed in budget, we will look for explanation in the Continuation Application as to how the PD will be paid for
Evaluation
Funds must included in budget for evaluation purposes, function 2620. InternalExternal
If no funds allocated, we will be asking for explanation.
OUT OF STATE TRAVEL
50 or more miles from Illinois’s borders
No out of state travel without prior permission from ISBE
Use form online at www.isbe.net/21cclc
Do not schedule airfare, hotel, or any nonrefundable expenses until permission is received
Travel to USDE sponsored Summer Institute does not need preapproval
NON ALLOWABLE COSTS
Overnight or out of state travel for students
Daily snacks/meals for students
Food for professional development events, faculty, staff, or administrative meetings or for staff in any setting
Clothing (materials for sewing classes are allowable)
NON ALLOWABLE COSTS
Equipment
Incentives of cash, clothing, or others that are unreasonable in proportion to the amount of funding
Furniture
Staff events that include retreats, lock-ins, or similar types of events
NON ALLOWABLE COSTS Field trips that are purely recreational
Membership dues to organizations, societies
Promotional or marketing items Pens, caps, totes, mugs, etc.
Capital improvements or construction, remodeling, or renovation
Classes for credit recovery that were previously offered and paid for by district or other funds sources
Supplanting
SALARIES
Payroll must be supported with time and attendance records.
Salaries chargeable to more than one grant program or cost objective must be supported by appropriate time and effort (time distribution) records.
People who work on multiple grants must have time pro-rated among the grants.
INDIRECT COSTS
Costs incurred for common or joint objectives that cannot easily and specifically be identified with a particular grant Payroll Accounting Data processing
Functions 2510, 2520, 2570, 2640 and 2660—if direct costs here, no indirect costs can be used on budgets
INDIRECT COSTSCONTINUED
CBOs/FBOs use the state average—not yet determined for FY11
School districts can use the amounts in their NCLB consolidated applications (after October 1) If want to use indirect cost rate, will have to amend later
Universities use 8%
1000, 100 INSTRUCTIONAL SALARIES
Positions here MUST spend more than 50% of time in direct instruction of students.
Must be employed by the fiscal agent Teachers Teacher aides Tutors Recreational leaders Others who may teach or lead activities
BUDGET SALARIES EXAMPLES
10 teachers (5 math, 5 reading) X $25 hr X 2 hrs/wk X 28 wks=$14,000
5 math tutors X $10/hr X 2hrs/wk/28 wks = $2800
5 recreation leaders X $15 hr X 1hr/wkX28 wk= $2100
1000, 200 - BENEFITS
Paid to employees of fiscal agent
Must be listed separately on grant
Provide total expenses for all employees in each category--examples TRS (federal is required for teachers) in agencies that
are required reporters e.g. school districts (outside CPS) and ROEs
Medicare Life Insurance Medical/Health IMRF (non certified staff)
BENEFIT EXAMPLES
200 10 teachers TRS = 5 tutors IMRF = 5 recreation leaders IMRF=
300 (Considered employers’ insurance) 5 Rec Leaders Workers’ comp= 5 Rec Leaders Unemployment comp=
1000, 300 - INSTRUCTIONAL PURCHASED SERVICES Workers’ comp/Unemployment comp
Fees for presentations to students
Consultant fees/field trip entrance fees
Software license fees
Salaries of those not employed by fiscal agent Teachers, tutors, etc Rec Leaders from YMCA
1000, 400 - INSTRUCTIONAL SUPPLIES & MATERIALS
It is not enough to put supplies and materials and list a total amount
Correct examples--supplementary reading books, folders, flip charts, art supplies, educational software
No equipment is allowed, even if under $500
Incentives go here—must put what is to be given No t-shirts No cash Reasonable and feasible based on total amount of grant
2210 - IMPROVEMENT OF INSTRUCTION
100 - Stipends for those attending professional development outside regular work hours
100 - Substitute teachers (if PD held during regular work hours)
200 - Benefits on stipends, sub pay
300 - Fees for conferences, per diem, hotel expenses, consultant fees
400 - Books and journals for those attending professional development training
2230 - ASSESSMENT & TESTING
100 - Salary paid specifically for someone who performs testing
200 - Benefits on salary (always list separately)
300 - Unemployment or workers‘ comp
400 - ACT test prep materials, pre-post tests
2300 - ADMINISTRATVE COSTS
For salaries to be here, they must be for administrative positions, e.g. project director, grants coordinator—someone who is considered an administrator by agency or school district
No teaching salaries or site coordinators
Limited to 5% of total budget
GENERAL ADMINISTRATION
100 - Project director -.25 FTE = $15,000 Project coordinator - .5 FTE = $15,000
200 - Benefits for these positions (list)
300 - Workers comp, unemployment com, postage, travel costs between projects, audit (prorated)
400 – Supplies - general office supplies such as folders, ink cartridges, etc.
2520 - FISCAL SERVICES
100 - Bookkeeper - 100 hours X $12 hr =$1200
200 - Associated benefits – delineate
300 - Workers and/or unemployment comp
300 - contacted fiscal services
400 - Bookkeeping supplies - ledgers, file folders, ink cartridges
- $500
2540 - OPERATIONS & MAINTENANCE
100 - Janitor salary for cleaning after school areas beyond regular hours of job
200 - Associated benefits (list)
300 - Workers’ comp; prorated rent for use of building after school (usually CBO/FBO)
400 - General cleaning supplies
NO RENT/MORTGAGE payment on buildings owned or occupied by grantee
2550 - TRANSPORTATION
100 - Bus drivers’ salaries
200 - Benefits—list each out separately
300 - Benefits for own workers or *Contractual bus service 150 days at $200 per day= $30,000
400 - Gas, oil = $4000 (if grantee is paying; usually included in
a contract)
2560 - FOOD SERVICES
100—Cafeteria workers salaries to serve snacks 2 workersX$10/hrX5hrs/wkX 28wks=$2800
200—IMRF, insurance
300—Workers’ compensation
For snacks/food programs see Nutrition
website, www.isbe.net/nutrition
2620 - PLANNING, RESEARCH & EVALUATION
100--if employees internally do this 2 employees X 100 hours X $50/hr =$10,000
200 and/or 300 – benefits - list
300 - contractual for evaluation if this is paid to a public entity, it goes in 4000, 300
2900 - SUPPORT SERVICES
Site Coordinators Salaries go here 100 - Salaries .4FTE = $15,000 or if hourly provide as in
other examples
200 – benefits - list each separately with percents that apply and total
300 - if applies
400 - General office supplies = file folders, ink cartridges, paper, markers
3000 - COMMUNITY SERVICES All payments related to parents go here
100 - salaries paid for adult education by employees of fiscal agent; parent liaison
200/300 – Benefits - list
300 - Contractual for programs for adults Drug awareness counselor Museum program
400 – Supplies - art and craft supplies, books on parenting, take home reading kits. Food for parent nights—2 events X 100 people X$10 = $2000
COMMON ERRORS Not enough detail
Using zeroes, decimals, etc.
Not working on payment schedule to schedule payments when really needed (leads to excess cash on hand)
Not putting wc/uc in Object 300
Not delineating supplies
Categorizing workers’ salaries in wrong place
2210 - salary here cannot be for time with student contact
MORE COMMON ERRORS
4000, 300 - not putting payments to government entities, LEAs here regardless of service provided
Not having original signatures on budgets and grant agreements
Forgetting to mail hard copy after faxing budgets
Not establishing the proper end date
Not submitting an original budget because believing continuation means automatic renewal
Not keeping copies of the final approved budget which may have changes made by ISBE
AUDITING
Auditors presume supplanting unless you have records to prove otherwise
Nothing paid in previous year with state, private, or local funds (unless that fund source changed)
RESOURCES
www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdfFiscal Policies and Procedures Handbook
www.isbe.net/21cccBudget Amendment formsContinuation ApplicationsOut of State Travel Forms
FUNDING & DISBURSEMENT SERVICES
DIVISION ADMINISTRATOR: TIM IMLERSUPERVISOR: MARY MORRISON (State/Federal Grants)FISCAL CONSULTANTS: KIM LEWIS & SALLY CRAYEXPENDITURE REPORTS: ERNIE BARROW
DIVISION PHONE NUMBER: 217.782.5256E-mail Addresses:[email protected]@isbe.net [email protected] [email protected]@isbe.net
INNOVATION AND IMPROVEMENT DIVISION
Division Administrator—217/524-4832 Monique Chism [email protected]
Division Supervisor Marci Johnson [email protected]
Springfield Consultants Gail Meisner [email protected]
Gary Miller [email protected]
Support Staff Pam Bokamp [email protected]
QUESTIONS?