Accrual Reporting Accrual Reporting June 27, 2012/3:00 p.m.ET

2 Accrual Reporting Welcome to Workforce 3 One! Welcome to Workforce 3 One!

3 Accrual Reporting Submitting Questions: Open Chat Drop-Down Menu  To submit a question, type the question in the text field and press your Enter/Return key. ‒ Please enter the name to whom the question is directed.  To send questions only to the presenters, select Presenters from the drop-down menu before pressing your Enter/Return key.  Change Text Size and Chat Color… Text Field

4 Accrual Reporting  To submit a question, type the question in the text field and press your Enter/Return key. ‒ Please enter the name to whom the question is directed.  Your name and your question will appear on your screen, indicating successful submission.  Questions are directly transmitted to presenters—no other participants will see your questions. Submitting Questions: Closed Chat Text Field Gary, where can I find today’s PPT?

5 Accrual ReportingPractice In the Chat Room, please type the name of your organization, your location, and how many people are attending with you today.

6 Accrual Reporting How To Participate in a Poll

7 Accrual Reporting Access to Webinar Resources WEBINAR RESOURCES: Recordings and transcripts are available within 2 business days after the event.

8 Accrual Reporting Featured Speakers Presenters  Maggie Ewell, Financial and Grants Management Specialist Office of Grants Management, Division of Policy, Review and Resolution  Artine Jones, Program Analyst Office of Grants Management, Division of Policy, Review and Resolution

9 Accrual Reporting  Grant Requirements  Reporting Definitions  Financial Reporting Agenda

10 Accrual Reporting Question 1 A.Yes B.No Did you take the online accrual training course prior to joining this webinar?

11 Accrual Reporting Grant Requirements

12 Accrual Reporting  Apply to all grants awarded by DOL –29 CFR Part 95 Institutions of Higher Education, Hospitals, Non-Profit/Commercial Organizations, Organizations under the Jurisdiction of Foreign Governments and International Organizations; or –29 CFR Part 97 State, Local and Indian Tribal Governments –29 CFR or 29 CFR apply to financial reporting Uniform Administrative Requirements

13 Accrual Reporting  29 CFR §95.52 & 29 CFR §97.41 –Entities are required to report program outlays (expenditures) and program income on a cash or accrual basis as prescribed by the awarding agency. Accounting Basis

14 Accrual Reporting Requires direct grantees to manage and monitor subrecipient activities and ensure subrecipients:  Comply with federal requirements  Meet audit requirements  Report accurately 29 CFR §95.51 and §97.40

15 Accrual Reporting Grantees will ensure that:  Every subgrant includes a provision for compliance with Uniform Administrative Requirements;  Every subgrant includes any clauses required by Federal statute and executive orders and their implementing regulations; and  Subgrantees are aware of requirements imposed upon them by Federal statutes and regulations. 29 CFR §95.5 and §97.37

16 Accrual Reporting  All requirements for grant apply to your subrecipients  Direct grantees have oversight responsibility over subrecipients to ensure they are meeting requirements (WIA )  Direct grantees have responsibility for financial reporting – and ensuring accuracy of information provided by subrecipients Managing Subrecipients

17 Accrual Reporting Quarterly Financial Reporting  Grantee financial information  Subrecipient financial data –What information do I need? –Same data as on Federal reports? –More? –Less? What data do I need to effectively manage?

18 Accrual Reporting Question 2 A.Cash B.Accrual C.Obligational On what basis are ETA grantees required to report?

19 Accrual Reporting Question 3 True or False: Grantees required to monitor, track and report subgrantee financial data?

20 Accrual Reporting Reporting Definitions

21 Accrual Reporting  2 CFR Legally binding agreement Expenditure now or in the immediate future Resources available before obligation incurred  29 CFR §95.2 and §97.3 Orders placed, contracts and subgrants awarded, goods and services received during a given period Payment during the same or future period What is an obligation?

22 Accrual Reporting Charges incurred during a given period for goods, services or other tangible property received and other amounts becoming owned for which no current service or performance is required. Whether or not a cash payment is made What is an accrued expenditure?

23 Accrual Reporting Obligation vs. Accrual  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

24 Accrual Reporting  Applies to all levels  Does not require change in accounting system  What to do to ensure accrual reporting by subs?

25 Accrual Reporting Common Issues  Grantee’s policy –Only reimburse for actual costs –Require subs to submit paid invoices as backup to reports. Are they getting accrued expenditure reports?

26 Accrual Reporting Options To Get Accruals Reported Correctly  Separate expenditure reporting from reimbursement process  Have subrecipients submit accrual data as a separate set of reporting items  Requiring accruals only on a quarterly basis

27 Accrual Reporting Common Issues  Grantee has not issued specific reporting instructions to their subrecipients, but includes the required report format in their “Subrecipient Package.” Are they getting accrued expenditure reports?

28 Accrual Reporting Reporting Solutions  To ensure that you get what you need: –Provide reporting guidance to your subs –Spell out the reporting requirements –Provide definitions and explanations of each reporting item on your format

29 Accrual Reporting Question 4 A.Unliquidated B.Obligated C.Accrued What type of expenditures do ETA grantees report?

30 Accrual Reporting Question 5 True or False: Obligations include both legally binding commitments as well as the organization's plans for the future (encumbrances)

31 Accrual Reporting The ETA 9130 Reporting Form Financial Reporting :

32 Accrual Reporting Federal Expenditures and Unobligated Balance  Lines 10d through 10i  Begins with funds available for expenditure  Expenditures  Unliquidated obligations  Total Federal obligations  Amount available for other uses

33 Accrual Reporting  Line 10e: Federal share of expenditures –Accrued expenditures is captured Federal Expenditures and Unobligated Balance

34 Accrual Reporting  Line 10f: Total administrative expenditures –Administrative costs are broken out Federal Expenditures and Unobligated Balance

35 Accrual Reporting  Line 10g: Federal share of unliquidated obligations –Unliquidated obligations Federal Expenditures and Unobligated Balance

36 Accrual Reporting  Line 10h: Total Federal obligations (sum of line e and g)  Line 10i: Unobligated balance of Federal funds (line d minus h) –Automatic Calculations –Total Federal Obligations –Unobligated Balance Federal Expenditures and Unobligated Balance

37 Accrual Reporting Observations  Reported obligations tied to disbursements  Budget categories are reported as obligations  Expenditures = Disbursements

38 Accrual Reporting  Accrual expenditures are a more accurate reflection of grant expenditures o Cash basis underreports expenditures  Directly affects funding Why is this important?

39 Accrual Reporting Have Questions?  Initial Contact – Federal Project Officer  Online Training Modules – Workforce3One.org

40 Accrual Reporting Please enter your questions into the Chat Room! Question and Answer Period

41 Accrual Reporting Training: Questions:

42 Accrual Reporting Share Your Ideas with Your Peers! Share your demand-driven strategic plans, models, innovations, resources, and ideas! You have the option to submit content for review by uploading the resource or providing a link to the resource.

43 Accrual Reporting Access to Webinar Resources WEBINAR RESOURCES: Recordings and transcripts are available within 2 business days after the event.

44 Accrual Reporting Stay Informed, Get Connected!

45 Accrual Reporting For more information about the Workforce Investment System:  Visit  Call US2-JOBS