2014 TAACCCT TRAINING AND CONVENING Financial Reporting and Accrual Accounting

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Financial Reporting Today’s Presenters: Jane Yoon, Region 6 Materials You Should Have: Handout 1 – ETA 9130 report form Handout 2 – Annotated ETA 9130 form Handout 3 – Definitions exercise Evaluation Form

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING What will you learn today?  ETA-9130: Facts You Need to Know  Key Definitions  ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Rules of the Game  29 CFR Part or Part  OMB Approval Extended to 12/31/2015  TEGL 28-10

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING There are some basic facts about the ETA that are important to know when preparing and analyzing your report Accruals reflected Due quarterly no later than 45 days after quarter end Data is cumulative from grant inception Report must include cash and financial status information

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Sections 1-9

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Section 10, parts a-i

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Section 10, parts j-n L.L.

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Section 10, parts o-q and Section 11

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Sections 12-13

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING ETA-9130 Report Remarks Section

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING What will you learn today?  ETA-9130: Facts You Need to Know  Key Definitions  ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Understanding ETA’s definitions of financial terms is a key ingredient in producing an accurate ETA-9130 report Disbursement Expenditures Outlays Accruals Cash Based Accounting Obligation (ETA-9130 Line 10H) Unliquidated Obligation

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Disbursement  Disbursement means the transfer of cash from the Payment Management System to the grantee  At the grantee level, disbursement means the transfer of cash from the grantee to another payee

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Expenditures  In general, expenditures means charges made to the program in support of authorized activities  ETA requires all grantees to report all financial transactions on a full accrual basis

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Accrued Expenditures Components During a Given Period  Goods and other property received  Services performed by employees, contractors, and others  Other amounts becoming owed

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING When working with cash based accounting systems, be sure to track the timing of activity to find accrual expenditures

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Obligation  For purposes of the ETA-9130, Line 10h, obligation includes Federal share of expenditures (cash outlays plus accrued expenditures) and any unliquidated obligations  Note, the commonly held GAAP definition of obligation is a term that references actions where a legal binding contract or purchase order to pay exists and differs from the use on the ETA-9130

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Unliquidated Obligations  Unliquidated Obligations means obligations incurred for which an expenditure has not been recorded

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING How would you classify these types of cost situations? Assumption: all activities/charges below are allocable to a DOL-ETA grant A - Accrual B – Unliquidated Obligation 1. You received delivery of a partial order for goods but the invoice has not been paid. 2. A contractor has started training participants but has not sent the invoice. C – Obligation D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING How would you classify these types of cost situations? Assumption: all activities/charges below are allocable to a DOL-ETA grant A - Accrual B – Unliquidated Obligation 3. Of a $50k contract, there is $40k unspent for which no goods or services have been provided. 4. Staff travel completed but no travel reimbursement submitted or paid before the end of the quarter. C – Obligation D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING How would you classify these types of cost situations? Assumption: all activities/charges below are allocable to a DOL-ETA grant A - Accrual B – Unliquidated Obligation 5. You order, pick up, and pay for supplies all on the same day. 6. At the end of the month, you complete the monthly indirect cost calculation C – Obligation D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING What will you learn today?  ETA-9130: Facts You Need to Know  Key Definitions  ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Are you smarter than a 5 th grader?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING True or False? 1. Should Cash on hand always be zero? a. True b. False 1. The amount reported on the total Federal expenditures line is higher than the cash disbursed. Is that an indicator that the organization is reporting accruals? a. True b. False

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING What is a potential area of concern on this report? What would you do?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING What are the potential areas of concern on this report? What would you do?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Homework

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Review online tutorials and other resources on ETA-9130 reporting available at: etareporting.workforce3one.org

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Review key guidance and resource documents at: Forms and Instructions

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Also, be sure to review closely Training and Employment Guidance Letter and available at:

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING See the One-Stop Comprehensive Financial Management Technical Assistance Guide (TAG) located at:

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING Share with others supporting this grant

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING