A Fiscal Overview of GrantsA Fiscal Overview of Grants(Bilingual, LIPLEP, IEP)(Bilingual, LIPLEP, IEP)

Presented by:Presented by:Kim LewisKim Lewis

Presentation OutlinePresentation Outline

Grant LifeGrant Life Important Grant GuidelinesImportant Grant Guidelines Grant Budgets and Amendments Grant Budgets and Amendments

(problem areas)(problem areas) Grant ExpendituresGrant Expenditures Other Fiscal IssuesOther Fiscal Issues Electronic ServicesElectronic Services Helpful Internet SitesHelpful Internet Sites Division and Contact InformationDivision and Contact Information

GRANT LIFE OF FUNDSGRANT LIFE OF FUNDS

STATE (3000 series)STATE (3000 series) Funds appropriated by the General Assembly Funds appropriated by the General Assembly

are available for obligation from July 1 to are available for obligation from July 1 to June 30. Obligations made within the grant June 30. Obligations made within the grant period can be paid (liquidated) until August. period can be paid (liquidated) until August. (Bilingual)(Bilingual)

FEDERAL (4000 series)FEDERAL (4000 series) In general, federal funds are available for 27 In general, federal funds are available for 27

months (August 1 to September 30). (LIPLEP months (August 1 to September 30). (LIPLEP and IEP)and IEP)– One year of current year funding;One year of current year funding;– One year of carryover funding;One year of carryover funding;– Plus 3 months of lapse (to liquidate outstanding Plus 3 months of lapse (to liquidate outstanding

obligations)obligations)

IMPORTANT GRANT GUIDELINESIMPORTANT GRANT GUIDELINES

START AND END DATESSTART AND END DATES In general, grants should be operated in a twelve In general, grants should be operated in a twelve

month period.month period.– Bilingual = July 1 to June 30Bilingual = July 1 to June 30– LIPLEP/IEP = September 1 to August 31.LIPLEP/IEP = September 1 to August 31.

All grant activities must be conducted and All grant activities must be conducted and all all expenditures must be obligatedexpenditures must be obligated between the start and between the start and end date.end date.

GRANT BUDGETSGRANT BUDGETS Understand allowable direct costs, forms and Understand allowable direct costs, forms and

instructions.instructions. Make sure important contact information is Make sure important contact information is

provided.provided.-- Region-County-District-Type Code-- Region-County-District-Type Code-- Contact Name, Address, Phone, Fax-- Contact Name, Address, Phone, Fax-- Use forms that are provided. Do not -- Use forms that are provided. Do not “doctor” another form to submit. “doctor” another form to submit.

Use the proper function and object per the Use the proper function and object per the Part 100 Requirements of Accounting, Budgeting, Financial Reporting and Auditing

Cost Allocation PlanCost Allocation Plan (CAP) (CAP)

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Problem AreasProblem Areas

Instruction-function 1000: provides DIRECT Instruction-function 1000: provides DIRECT STUDENT INSTRUCTION (no directors, STUDENT INSTRUCTION (no directors, secretaries, clerks, etc.)secretaries, clerks, etc.)

Improvement of Instruction-function 2210: Improvement of Instruction-function 2210: staff development activities/curriculum staff development activities/curriculum planning activities – STAFF only.planning activities – STAFF only.

Worker’s/unemployment comp: object 300: Worker’s/unemployment comp: object 300: employer’s insurances – NOT a benefitemployer’s insurances – NOT a benefit

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Problem AreasProblem Areas

General admin-function 2300: LIPLEP admin and General admin-function 2300: LIPLEP admin and indirect costs limited to 2% of budgetindirect costs limited to 2% of budget

Capital Outlay (object 500): EQUIPMENT > Capital Outlay (object 500): EQUIPMENT > $500/unit (IF no entity-wide, board-approved $500/unit (IF no entity-wide, board-approved equipment threshold of > $500/unit).equipment threshold of > $500/unit).– Not materials (no matter what the cost)Not materials (no matter what the cost)

NON-Capitalized Equipment: EQUIPMENT > NON-Capitalized Equipment: EQUIPMENT > entity threshold (IF entity-wide, board-approved entity threshold (IF entity-wide, board-approved equipment threshold of > $500/unit). NEW on equipment threshold of > $500/unit). NEW on 2010 budgets.2010 budgets.

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IF AND ONLY IF entity-wide, board-approved IF AND ONLY IF entity-wide, board-approved threshold for equipment…threshold for equipment…

Examples: Examples: – District #100 has an ENTITY-WIDE, BOARD-District #100 has an ENTITY-WIDE, BOARD-

APPROVED threshold for equipment of APPROVED threshold for equipment of $5000$5000:: Equipment costing $4000/unit = > $500 but < $5000 should be Equipment costing $4000/unit = > $500 but < $5000 should be

in object 700 (non-capitalized equipment)in object 700 (non-capitalized equipment) Equipment costing $7000/unit = > $500 AND > $5000 should be Equipment costing $7000/unit = > $500 AND > $5000 should be

in object 500 (capital outlay)in object 500 (capital outlay) Equipment costing $499 = should be in object 400 (as always)Equipment costing $499 = should be in object 400 (as always) IF NO ENTITY-WIDE, BOARD-APPROVED threshold for IF NO ENTITY-WIDE, BOARD-APPROVED threshold for

equipment > $500/unit; then all equipment > $500/unit; then all equipmentequipment costing > $500/unit costing > $500/unit should be in object 500.should be in object 500.

Probably not a lot of districts will have a different thresholdProbably not a lot of districts will have a different threshold

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Problem AreasProblem Areas

Object 600 Other: now includes transfers Object 600 Other: now includes transfers and tuition. New on 2010 budgets.and tuition. New on 2010 budgets.

Function 3000: Parent activities; non-public Function 3000: Parent activities; non-public students/staff costsstudents/staff costs

Function 4000: when payment made to a Function 4000: when payment made to a governmental unit, indicate what governmental unit, indicate what governmental unit being paid (example: governmental unit being paid (example: ROE, ISC, Special Ed Cooperative, ROE, ISC, Special Ed Cooperative, college/university).college/university).

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Problem AreasProblem Areas

Function 4000:Function 4000:– Object 300: fiscal agent’s staff/students benefit from Object 300: fiscal agent’s staff/students benefit from

this expenditure (example: staff development activities this expenditure (example: staff development activities paid to U of I for MY STAFF)paid to U of I for MY STAFF)

– Object 600: flow through – my students/staff do NOT Object 600: flow through – my students/staff do NOT benefit from this expenditure (cooperatives)benefit from this expenditure (cooperatives)

Provide enough detail that a reader can determine Provide enough detail that a reader can determine if the cost is budgeted properlyif the cost is budgeted properly– Function/object name NOT sufficient detailFunction/object name NOT sufficient detail

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Easy way to determine Easy way to determine function/objectfunction/object

First determine object (column):First determine object (column):– salary, benefit, service, materials, equipmentsalary, benefit, service, materials, equipment

Then determine function (use of funds):Then determine function (use of funds):EXAMPLE: EXAMPLE:

-pencils = object 400 materials-pencils = object 400 materials

-who uses pencils? Students, staff, admin, -who uses pencils? Students, staff, admin, janitor, parents – determines what function to janitor, parents – determines what function to use.use.

GRANT BUDGETSGRANT BUDGETS Provide sufficient detail for all expenditures, Provide sufficient detail for all expenditures,

especially equipment (if using object 700, especially equipment (if using object 700, must include entity-wide, board-approved must include entity-wide, board-approved equipment threshold.)equipment threshold.)

Monthly Payment Schedules should reflect Monthly Payment Schedules should reflect anticipated expenditures – salaries anticipated expenditures – salaries requested monthly when current activities requested monthly when current activities begin. (begin when current activities begin)begin. (begin when current activities begin)

NO LUMP SUM PAYMENTS unless there are NO LUMP SUM PAYMENTS unless there are documented direct costs or obligations.documented direct costs or obligations.

Proper Signatures and Copies Proper Signatures and Copies

GRANT AMENDMENTSGRANT AMENDMENTSWHEN to AMEND:WHEN to AMEND: If anticipated expenditures will exceed 20% or If anticipated expenditures will exceed 20% or

$1,000, whichever is greater, on a budgeted cell.$1,000, whichever is greater, on a budgeted cell. To access carryover for federal entitlement grants.To access carryover for federal entitlement grants. When there is a major change in project scope.When there is a major change in project scope. Adding a new expenditure itemAdding a new expenditure item Itemization/Description vs. Rationale for ChangeItemization/Description vs. Rationale for Change Amendment needed when changing amounts in Amendment needed when changing amounts in

cells; NOT NECESSARILY needed when expending cells; NOT NECESSARILY needed when expending in a cell > than what was budgeted (see variance in a cell > than what was budgeted (see variance above).above).

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Amendment Breakdown ExampleAmendment Breakdown Example

GRANT EXPENDITURESGRANT EXPENDITURES Entered via IWAS-electronic expenditure Entered via IWAS-electronic expenditure

reporting system.reporting system. Expenditure reports should always reflect Expenditure reports should always reflect cumulativecumulative expenditures. expenditures.

Expenditures can vary by 20% or $1,000, Expenditures can vary by 20% or $1,000, whichever is the greater, on a budgeted cell.whichever is the greater, on a budgeted cell.

Excess cash will be withheld from future Excess cash will be withheld from future scheduled payment(s).scheduled payment(s).

A project is FINAL when the end date equals A project is FINAL when the end date equals the expenditure through date with zero the expenditure through date with zero obligations. If an obligation is reported, the obligations. If an obligation is reported, the entity will have 90 days from the end date of entity will have 90 days from the end date of the project to liquidate the obligation.the project to liquidate the obligation.

PROJECT FREEZESPROJECT FREEZES-- Excess Cash on Hand-- Excess Cash on Hand-- Late Expenditure Reports-- Late Expenditure Reports-- Refund Due from previous year (state grants)-- Refund Due from previous year (state grants)

FEDERAL CARRYOVER (determined by prior year final FEDERAL CARRYOVER (determined by prior year final report)report)-- Unbudgeted Funds-- Unbudgeted Funds-- Unexpended Funds (Prepayment)-- Unexpended Funds (Prepayment)

INTEREST INCOMEINTEREST INCOME-- Federal interest must be returned to appropriate -- Federal interest must be returned to appropriate

Federal Agency if > $100. (34 CFR 80.21)Federal Agency if > $100. (34 CFR 80.21)-- State interest can be retained if it is applied back to -- State interest can be retained if it is applied back to

the grant. IF not expended during grant period – the grant. IF not expended during grant period – interest earned must be returned to ISBE. (30 ILCS interest earned must be returned to ISBE. (30 ILCS 705/10)705/10)

RETURN OF FUNDSRETURN OF FUNDS---- Unspent State money > $50 should be returned Unspent State money > $50 should be returned within 45 days of notification by ISBE.within 45 days of notification by ISBE.

ELECTRONIC SERVICESELECTRONIC SERVICES Financial Reimbursement Information Inquiry Financial Reimbursement Information Inquiry

(FRIS Inquiry)(FRIS Inquiry) Electronic Expenditure Reports via IWASElectronic Expenditure Reports via IWAS COMING in COMING in 20112011: eGMS – grants electronic : eGMS – grants electronic

submission via IWASsubmission via IWASHOPE-HOPE-HOPE-HOPE-HOPE-HOPE-HOPEHOPE-HOPE-HOPE-HOPE-HOPE-HOPE-HOPE– Data collection early January (enrollment);Data collection early January (enrollment);– Allocations generated by this data; thenAllocations generated by this data; then– PLAN is mid-April for 2011 grant application PLAN is mid-April for 2011 grant application

publicationpublication

WWW.ISBE.NET WWW.ISBE.NET Funding & Disbursement Services DivisionFunding & Disbursement Services Division

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FRIS InquiryFRIS Inquiry

Division of Funding and Disbursements:Division of Funding and Disbursements:-www.isbe.net-www.isbe.net-Divisions and Program Areas-Divisions and Program Areas-Funding & Disbursements-Funding & Disbursements

FRIS Inquiry:FRIS Inquiry:-www.isbe.net-www.isbe.net-FRIS Inquiry Link-FRIS Inquiry Link

State and Federal Grant Administration Policy, Procedures, Requirements:-www.isbe.net-www.isbe.net-Divisions and Program Areas-Divisions and Program Areas-Funding & Disbursements-Funding & Disbursements-General Grant Info (Resources box)-General Grant Info (Resources box)-State and Federal Grant Admin Policy...-State and Federal Grant Admin Policy...

DIVISION OF FUNDING AND DIVISION OF FUNDING AND DISBURSEMENT SERVICESDISBURSEMENT SERVICES

DIVISION ADMINISTRATOR:DIVISION ADMINISTRATOR: Tim ImlerTim ImlerDivision Supervisor: Mary MorrisonDivision Supervisor: Mary MorrisonPrincipal Fiscal Consultants: Kim Lewis or Sally CrayPrincipal Fiscal Consultants: Kim Lewis or Sally CrayFiscal Contact for Bilingual/LIPLEP/IEP: Judy ConboyFiscal Contact for Bilingual/LIPLEP/IEP: Judy Conboy

217/782-5256217/782-5256www.isbe.net

Funding & Disbursement Services DivisionFunding & Disbursement Services Division