Perkins Fiscal Procedures and Requirements--Post-Secondary

October 17, 2011

JoAnn Simser Rekha Dixit State Director, CTE Grants AccountantSystem Director, Perkins Federal Grant

Finance Division

JoAnn.Simser@so.mnscu.edu Rekha.dixit@so.mnscu.edu

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

FY2012 Perkins IV Budget for Minnesota

October 1, 2011 Allocation

A Title 1 Assistance to States   16,754,034.00

B Title 11 (Tech Prep) Allocation   -

C Total Award A + B 16,754,034.00

   

D 26 Consortia (85% of total award) 0.85 * C   14,240,928.90

E Basic Grant (90% of the 85%) 0.90 * D 12,816,836.01

F Secondary Programs 42% 0.42 * E 5,383,071.12

G Postsecondary Programs 58% 0.58 * E 7,433,764.89

   

H Reserve (10% of the 85%) 0.1002 * D 1,424,092.89

I Secondary Programs 42% 0.42 * H 598,119.01

J Postsecondary Programs 58% 0.58 * H 825,973.88

   

K State Leadership (up to 10%) 0.10 * C   1,675,403.40

L Secondary Programs 44% 0.44 * K 737,177.50

M Postsecondary Programs 56% 0.56 * K 938,225.90

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 828,225.90

   

Q State Administration (5%) 0.05 * C   837,701.70

R Fiscal Agent responsibility--Post-Secondary (5% of 5%) 0.05 * Q 41,885.09

S Remainder to be split Q - R 795,816.62

T Postsecondary (65%) 0.65 * S 517,280.80

U Secondary (35%) 0.35 * S 278,535.82

   

  Total Award D + K + Q 16,754,034.00

Slide 4

FY12 Local Consortium Award Allocations

• FY12 Local Consortium Perkins Plan Notification and Revised Fiscal Award emailed to the Superintendent and the President at the fiscal host district and college with copies to local consortium fiscal and Perkins contacts Oct. 5, 2011

Slide 5

October 5, 2011

Slide 6

FY12 Local Consortium Budget Revisions

• Local consortium contacts will need to review their approved FY12 local application and decide where to make necessary budget reductions

http://www.cte.mnscu.edu/perkinsIV/applications.html

• Fiscal hosts and Perkins contacts will need to submit an adjusted Post Secondary Budget for both basic grant (required and permissive) and reserve allocation on the FY12 Budget Summary by October 31, 2011.

http://www.cte.mnscu.edu/forms/index.html

Slide 7

FY12 Budget Summary

Slide 8

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 9

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 12 FY 13

Basic 384121 384131

Reserve 384122 384132

Leadership 384123 384133

Recaptured 384124 384134

Sub-Grants 384125 384135

Slide 10

Business Office at Chancellor’s Office (OOC) assigns five GL numbers

Chart of Account Set-up: Starting FY11

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.

OOC directs all colleges to use ONLY the assigned five GL’s for their accounting systems

Business Office at each consortium fiscal contact college loadsIts budgets in accordance with its awarded grant dollars into its accounting systems

Slide 11

How OOC Leadership Dollars are Expended

• Intra-agency agreements between OOC and colleges

• To receive reimbursement: Colleges invoice OOC for expenditures

incurred under the agreement OOC reimburses collegesColleges reduce their expenditures by the

amount paid

Slide 12

How OOC 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 13

Drawdown Expenditure Reimbursement Process

OOC grant accountant checks the Perkins GL’s forall colleges for accumulated expenditures and completes the

draw down from the federal systems to reimburse college

OOC grant accountant enters a Receipt Wire in SWIFT to ensure the funds are directed to college

OOC grant accountant sends college notice that funds will be deposited in college’s SWIFT account. College fiscal contact ensures receipt of thefunds into the appropriate Perkins cost center in ISRS.

College receives notification of award specifyingthe maximum they are authorized to spend

Business office at the OOC communicates the GL numbers to the colleges

College starts spending the budgeted amount within thelimits of the grant requirements charged against the

appropriate cost centers for the current year cost centers

Slide 14

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 15

Draw Down Considerations

• Grant Accountant will be sending funds for the GL’S that are assigned by the Office of the Chancellor.

• The Office of the Chancellor will not send any funds in excess of the allocated amounts. Even if there is an expense in a cost center.

Slide 16

Process for Determining the Draw Down Amount

• A sample query on Hyperion Brio to determine a college’s expenditures for the Grant Accountant to send the funds to the college-contact Rekha Dixit– https://data2.mnscu.edu/workspace/

Slide 17

Sample Grant Accountant Draw Down Query

321004 Cost Center Total Cost Center Total 15,833.85 0.00 15,833.85384121 153310 PROGRAMS OF STUDY 0.00 2,372.93 -2,372.93384121 153311 EMPL COMM EDU PARTNERSHIP 0.00 1,692.68 -1,692.68384121 153312 SERVICE TO SPECIAL POPS 0.00 7,826.03 -7,826.03384121 153313 CONTINUM OF SERVICE 0.00 14,942.12 -14,942.12384121 153314 SUSTAINING NEW CONSORTIUM 0.00 538.53 -538.53384121 ? Administration384121 GL Total Cost Centers Total 0.00 27,372.29 -27,372.29384122 153410 PROGRAMS OF STUDY RESERVE 0.00 418.00 -418384122 153411 EMPLOYER COMMUNITY ED PARTNERSHIP RESERV 0.00 0.00 0384122 153413 CONTINUUM OF SERV RESERVE 0.00 0.00 0384122 GLTotal Cost Center Total 0.00 418.00 -418384123 (Perkins Agreement) e.g. new program384123 GL Total Cost Center Total384124 (reallocated-- list goal(s)384124 GL Total Cost Center TotalRc Id Total Rc Id Total Rc Id Total 15,833.85 27,790.29 -11,956.44300010 000123 FPK-PAYROLL POSTING ERRORS 0.00 144.87 -144.87

Slide 18

Year End Considerations

• Please record the expense in the correct object code as there will be no opportunity for changes after fiscal year end close.

• This will result in accurate reporting.

Slide 19

Consortium Monitoring

• OOC developed fiscal audit procedure

• OOC will conduct a fiscal audit as part of consortium monitoring process and visits at seven consortia in FY12

Monitoring visits and fiscal audits at all consortia in FY 10- FY14Schedule and procedure:

http://www.cte.mnscu.edu/directories/portal.html#Criteria

Slide 20

Perkins IV Operational HandbookSection III Financial Requirements

• Highlights –items of Particular Interest

• Frequently Asked Questions

• http://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf p. 24-36

Slide 21

3.1 Local Application Budgets Changes

• Budget changes of $10,000 within a goal must be preapproved by the Office of the Chancellor-send an email request to JoAnn Simser with a copy to Denise Roseland

• College coordinators must receive written email approval before expenditure is made.

Slide 22

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 OOC.

– 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 OOC

Slide 23

Perkins Fiscal Webinars• Overview of Perkins IV Law and Procedures and

Requirements for Fiscal Agents-Part I, October 4

• Overview of Perkins IV Law and Procedures and Requirements for Fiscal Agents-Part II, October 6

• Perkins Fiscal Procedures and Requirements – Secondary, October 13

• Perkins Fiscal Procedures and Requirements– Post-Secondary, October 17

www.cte.mnscu.edu