Welcome to Workforce 3 One U.S. Department of Labor Employment and Training Administration Webinar Date: July Presented by: Office of Financial & Administrative Management U.S. Department of Labor Employment and Training Administration

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#3 Maggie Ewell Office of Financial & Administrative Management

Identify your required match State the definition of match and what counts as match Know the requirements and consequences associated with match Understand financial reporting requirements Know the 9130 line by line

25% of grant award Cash or in-kind resources Encouraged to provide a progressive match, which increases with each year of the grant Tracked and reported quarterly Expenditure of Match funds must be for an allowable expense

Can be found in your: Grant Agreement SF424 – line b SF424a – Section C

Match AKA Non-Federal or Recipient Share

25% required All contributions must be: –Spent on allowable activities –In accordance with cost principles –Reported on the ETA-9130 Can’t be BOTH match & charged to grant

29 CFR –State, local and Indian Tribal governments 29 CFR –Non-Profits, Hospitals, Institutions of Higher Education and Commercial Organizations SGA

Paid work experience for participants In-kind resources such as staff time associated with curriculum development Tuition, fees, and any relevant supplies for participating high school students taking post- secondary courses Services like time spent tutoring from staff Providing professional development

Additional funds or services provided & paid for by the grantee 3rd party cash contribution –To the grantee organization Allowable services under the grant

Not paid by grantee or subgrantee Allowable costs & services Requirements for determining value –29 CFR 97.24(b)(7) –29 CFR 95.23(c-h)

Personnel services –Employer share of wages –Volunteers or paid non-grantee staff Services Equipment & supplies Space

If you do not meet your match requirement by the end of your grant, the amount of DOL grant funds may be decreased proportionally

Did not report enough funds on final 9130 Report to meet commitment on SF424a Costs unallowable for match No stand-in costs available No grant modifications to reduce match will be approved

Report your recipient share quarterly Report allowable as match leveraged resources in excess of match requirement to serve as stand in costs Check with your FPO if you have any questions about whether costs are allowable

Source documentation –Books of account –Available for audit & review Support for 3rd party contributions –Verifiable from subgrantee records or –Maintained by grantee –Methods used to value in-kind

In-Kind and Cash Match must be adequately documented –Must be verifiable from the recipient’s records –Written financial and administrative policies should address the collection, tracking and documentation of match

Reported on the ETA-9130 – Recipient Share –Match –Excess match –Federal Funds expended by grantee and subgrantee

DOL Regulations –29 CFR –29 CFR Grant Agreement Specifications TEGL 13-12

BASIS: Accrual FREQUENCY – Quarterly DUE – 45 Days after quarter end for ALL ETA Programs Final Quarterly Report – Due 45 days after grant end or expiration of funds (whichever comes first) Closeout Report – Due 90 days after grant end (triggered by DOL acceptance of Final Report) Transmission Method – ETA on-line reporting system

Cash-based accounting –Income recorded when received and expenditures recorded when paid Accrual-based accounting –Income recorded when received and expenditures when the service is received or product delivered

Required for ALL ETA programs Provides more reliable data Cash basis understates true spending Failure to report on accrual basis may result in loss of funds

The Period of Performance for the YouthBuild Program is an expenditure period [not an obligation period]. Thus, only accrued expenditures incurred during the grant period are allowable. No additional costs can be incurred after the end of the grant period even if obligations were established during the grant period. Expiration of Expenditure Period The only liquidation that can occur is a liquidation of the accruals for goods and services received during the grant period - this allows time for receipt and payment of invoices for those accrued expenditures. FINAL & CLOSEOUT Reports – Requires a FINAL report via e-grants reporting system and a CLOSEOUT report via e-grants reporting CLOSE-OUT system.

TEGL: issued May 27, 2011 Provides clarification on definitions and examples of key financial terms –Disbursements, expenditures and obligations

Order placed –Delivery and payment in future Obligation, not accrual –Delivery taken, payment in future Obligation Accrued expenditure Payment & delivery simultaneous –Obligation –Accrued expenditure –Cash outlay

Transactions are recognized in accounting period in which they occur Revenue is recognized when received or earned Expense is recognized when incurred –May be cash disbursement –May be delivery of goods/services

Cash disbursements Goods and services received but not yet paid for PLUS

Salaries of employees Training Travel expenses Rental costs

Obligation –When salaries are earned Including related items Retirement fund contributions, etc. Accrued expenditure –At the time the salaries are earned –When the services are rendered Simultaneous recording

Single Semester –Contract to obligate funds and pay on an “as training received” basis

Obligation –Travel actually performed –Ticket purchased –Not issuance of travel authorization Accrued expenditure –Travel actually performed –Ticket purchased Simultaneous recording

Obligations –Lease agreement signed –Amount = maximum payment for termination Not entire lease amount Accrued Expenditure –As service is provided Space is occupied –Maybe paid in advance

Obligations for which goods or services have NOT been received Orders placed for which goods or services have NOT been received or paid Performance contracts in which benchmarks have NOT been achieved

ALL accrued expenditures are obligations BUT NOT ALL obligations are accrued expenditures

Type of activity Obligation Accrued Expenditure Good/services received and paid for Good/services received but not paid for Good/services ordered, paid for but not received Good/services ordered but not received and not paid for

10.a. Cash Receipts –Tied to PMS drawdowns –PMS draw amount appears above 10a 10.b. Cash Disbursements –checks, cash, advances to subs 10.c. Cash on Hand –10.a. minus 10.b.

10.d. Total Federal Funds Authorized –Grant award Pre-entered for most ETA grants for first reporting quarter 10.e. Federal Share of Expenditures – ACCRUED expenditure Federal Expenditures and Unobligated Balance

10.f. Total Administrative Expenditures –That portion of 10.e.(expenditures) attributable to administrative costs –Follow appropriate guidance on administrative vs. program costs

10% as specified in grant agreement Line item 10.f. identifies administrative portion of total federal expenditures Provides ability to assess compliance with administrative limitation

10.g. Federal Unliquidated Obligations -10.h.(Obligations) minus 10.e. (Expenditures) 10.h.Total Federal Obligations -10.e.(Expend.) plus10.g.(Unliquid. Oblig.) 10.i. Unobligated Balance of Federal funds - 10d.(Authorized) minus 10.h.(Obligations)

10.j. Total Recipient Share Required –Minimum 25% required 10.k. Recipient Share of Expenditures –Non-DOL/non-Federal expenditures incurred for purposes of subject grant Leveraged resources

10jTotal Recipient Share Required 10kRecipient Share of Expenditures 10lRecipient Share of Unliquidated Obligations 10mTotal Recipient Share (sum of Lines 10k and 10l) 10nRemaining Recipient Share to be Provided (Line 10j minus Line10m) 44

10.l. Recipient Share of Unliquidated Obligations –10.m.(obligatiions) minus10.k (expenditures) 10.m. Total Recipient Obligations –10.k.(expend.) plus 10.l.(unliquid. oblig.) 10.n. Remaining Recipient Share to Be Provided –10.j.(required) minus 10.m.(obligated)

10.o. Total Fed. Program Income Earned –Production of curriculum –Sale of products to non-Federal organizations 10.p. Program Income Expended 10.q. Unexpended Program Income

Must be earned as result of allowable grant activity

29 CFR 97.25(g) – Two Main Types –Deduction: Reduces the grant amount. –Addition: Supplements the grant amount. ADDITION – for all ETA programs –Within Addition, there is Net Method and Gross method.

NET – Line 10.o. reflects total PI earned minus costs incident to generating it –No cost reported on line 10.e. GROSS – Line 10.o. reflects 100% of PI earned –Costs incident to generating it were charged to the grant on line 10.e.

Whether or not you charged the grant for the activities that generated the program income. Net Method If you used program income earned to cover the cost of activities, then Line 10o reflects the balance of PI received and PI used to cover costs. Gross Method If you did charge the grant, then all of the program income earned would be reported on Line 10o and what you charged the grant would be on 10e.

11.a. Other Federal Funds Expended Leveraged Resources –DOL – WIA Funds –Dept of Ed Funds –HUD

Accounting system Accrual worksheets to convert from cash to accrual reporting Subgrantee reports

Password and Pin Required – request to: For issues with passwords and pins contact: –Shantay Logan: –For technical issues contact helpdesk: or (202) Access to all reports by sub accounts U.S. Department of Labor Grantee Reporting System Password: Login

Follow instructions in Execution letter or as otherwise provided by ETA sent to primary contact with password and PIN –Password issued to access system –PIN issued to certify data

Mandatory quarterly submission Modifications can be made requiring re-certification of report After 2 quarters of data are accepted by Federal Project Officer, 1 st of 2 quarters will lock

Grantees are in charge of data Incomplete or erroneous data and/or late submittal of reports impacts ETA’s financial credibility Further funding for ETA programs is contingent upon expending this year’s funds this year

An accrual basis of accounting is required for data entered on the 9130 reports. There is no administrative cost limitation for your grant. Since you do not have a match requirement, you are not required to report leveraged resources.

Accrual Accounting Accrual Reporting Administrative and Indirect Costs Audit Requirements Cash Management Cost Allocation, Cost Pooling & Time Distribution Cost Classification, Administrative Costs & Program Income Cost Principles & Selected Items of Cost Equipment, Facilities, Capital Improvements & State Workforce Agency Real Property Federal Cost Principles Federal Funding Accountability and Transparency Act (FFATA) Financial Management Principles Grant Closeout Indirect Costs and Applying for an Indirect Cost Rate for Non-Profits Intellectual Property Course Introduction to Financial Reporting Introduction to Grant Applications and Forms Introduction to Procurement Requirements Leveraged Resources and Match Intellectual Property Monitoring Program Income Reporting Obligations Subrecipient Reporting Uniform Administrative Requirements & many more webinars

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