Workforce Services Service Providers Department of Family and Support Services (FSS) Fiscal Technical Assistance Workshop April 6-8, 2009 Kennedy King College 6301 S. Halsted Chicago, IL Budgets/Budget Revisions, and Vouchering Richard M. Daley Mayor

Website For Workforce Services Forms and Instructions Click Workforce Tab Click Workforce Services (WFS) Link Click Documents Link Click WFS Finance Form and Instructions Link Click the Link for the Form or Instructions needed

Budget Budget Forms: - Form 1 Budget Summary - Form 2 Personnel Budget -2A, 2B or 2C if needed - Form 3 Non Personnel Budget

Budget Form 1 Purpose - To summarize by item of expenditure the total budget of the program funded by in whole or in part with Corporate (City) or Federal funds and to specify the share of total cost charged to the program and the share of total cost charged to other matching or supplemental funding source(s). Note - Show both the expenses that will be paid with Corporate (City) or Federal funds and those that will be paid for with other share.

Complete Budget Form 1 Form 1 has three (3) sections: - Header - Body - Signatures

Completing Budget Form 1 Header Section Fill in the following sections: A. Subrecipient/Name of agency B. City vendor code assigned to agency C. Program name D. Department (Completed by FSS) E. Funding Strip (Completed by FSS) F. Purchase order number (PO #)

Completing Budget Form 1 Header Section cont. Fill in the following sections: G. PO Term (Completed by FSS) H. Award Allocation – The amount of the contract

Completing the Body of Budget Form 1 Column 1 Items of Expenditures and examples of cost. Personnel Cost (0005) - Salaries, Stipends, Overtime, Salary Adjustment, and Bonuses. Fringe Benefits (0044) – Life Insurance, Workers Compensation, Health Insurance, Unemployment Insurance, Dental Plans, and Medicare. Training/Customized Training (0036) - Basic skills, interviewing techniques, employer outreach, job development, seminars, etc. Work Experience Cost (0070) – Work Experience Cost. Operating/Technical Cost (0100) – Accounting, Auditing, Legal, Publications, Rental of Property and Equipment, Repair/Maintenance of Property and Equipment, Utilities, Telephone, Local Transportation, Postage, Advertising, Meeting cost, Reproduction, Dues, Memberships, Messenger Services

Completing the Body of Budget Form 1 Continued. Professional and Technical Services (0140) – Consultants and Subcontractors. Material and Supplies (0300) – Stationery and Office Supplies, Tools, Materials and Supplies, Books and related materials. Equipment (0400) – Special Purpose and General Purpose: Special Purpose – used only for research, medical, scientific or technical activities (Microscopes and x-Ray machines). General Purpose - Not limited to research, medical, scientific or technical activities (Office equipment and furnishings, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles.

Completing the Body of Budget Form 1 Continued. Note – 1. OMB CRCULAR A-122 Revised defines – Equipment as an article of non-expandable, tangible personal property having a useful life of more than one (1) year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the organization for financial statement purposes, or $5, Equipment purchase with a cost of $1, or more must be tagged by FSS. 3. Equipment purchase of $5, or more require prior approval and must be tagged by FSS. Other Program Cost (0900) – Expenses that do not fit in the other account categories.

Completing the Body of Budget Form 1 Complete Budget Form 2 and the related forms 2A, 2B and 2C if necessary. Complete Budget Form 3. Note - The electronic version of the budget forms will automatically transfer the personnel and fringe benefits amounts from the linked Form 2 and non- personnel amounts for the individual line items from the linked Form 3 to the body of Form 1, completing columns 3-6.

Signature Section of Budget Form 1 Authorized person signs for the agency in blue ink. City Authorization - signed by City staff. Note - Budget is not approved until signed by City of Chicago issuing department

Budget FORM 2 Purpose - The purpose of this form(s) is to estimate the total personnel costs the subrecipient expects to incur in operating it’s Corporate (City) or Federal program and to provide a brief summary of the job responsibilities for each budgeted position. Note - If the entire personnel budget won’t fit on one form, please complete additional forms as necessary. The electronic version of the budget form will automatically transfer the personnel and fringe benefits amounts from the linked Forms 2, 2A, 2B and 2C to the body of Form 1. This step will complete columns 3-6 for personnel and fringe benefits only on FORM 1.

Completing Personnel Budget – FORM 2 Personnel Budget FORM 2 consist of three sections: - Header Information - Personnel Allocation - Fringe Benefit Allocation

Completing Personnel Budget – FORM 2 Header Information Fill in the following sections: A. Name of Agency B. Department (Completed by FSS) C. Program Name D. Federal Identification Number

Completing Personnel Budget – FORM 2 Personnel Allocation Column (1) Positions/Titles List all positions needed to run the Corporate (City) or Federal program. Column (2) Employee Name Provide the name of all employees needed to run the Corporate (City) or Federal program. Column (3) Number of positions For each position listed in column (1) indicate number of positions to be funded.

Completing Personnel Budget – FORM 2 Personnel Allocation Continued… Column (4) Yearly Rate - For each position listed in column (1) indicate the Yearly salary rate. Column (5) % of Time Spent on Program - For each position listed in column (1) indicate the percentage (%) of time to be spent on the program Note - The purposed percentage should be supported by your agency’s Cost Allocation Plan (CAP)

Completing Personnel Budget – FORM 2 Personnel Allocation Continued… Column (6) Total Cost - Column (3) X Column (4) X Column (5) (position X rate X time spent on program). Note 1 - The electronic version of the budget form will automatically calculate the personnel and fringe benefits total cost column (6) on the linked Form 2, 2A, 2B and 2C and transfer to the body of Form 1. This step will complete columns 6 for personnel and fringe benefits only on FORM 1. If you intend to pay bonuses, please list the bonus amount for each employee separately from their salary, directly below the salary. Column (7) Corporate (City) or Federal Share - Please indicate the amount of total salary cost column (6) to be paid with Corporate (City) or Federal funds Note 2 - Salary and Bonus Limitation (US DOL TEGL 05-06) 2008 Limit - $172, excluding Fringe Benefits Limit - $177, excluding Fringe Benefits.

Completing Personnel Budget – FORM 2 Personnel Allocation Continued… Column (8) Brief Summary of Job Responsibilities - Describe briefly the duties and responsibilities associated with each position listed in Column (1) Line (9) Subtotals - The form will automatically calculate the subtotals for each column. Line (10) F.I.C.A & Medicare - The electronic form will automatically calculate total cost. The agency should provide the amount of total cost that will be charged to the Corporate (City) or Federal program.

Completing Personnel Budget – FORM 2 Fringe Benefits Allocation Line (11) State Unemployment Insurance - Provide the amount of total cost column (6) and the amount of total cost to be charged to the Corporate (City) or Federal program. Line (12) Workers Compensation - In columns (7) and (6) show the share of this total to be charged to Corporate (City) or Federal and the total State Workers Compensation Insurance Cost.

Completing Personnel Budget – FORM 2 Fringe Benefits Allocation Continued…. Lines (13 & 14) Other - To provide any other employer expenses or benefits the agency will offer it’s employees. In columns (6) and (7) show the total cost and the Corporate (City) or Federal share for each benefit listed. Note - Agency should check with FSS to determine whether additional benefit(s) it whishes to offer are Federal eligible expenses if the program is funded with any portion of Federal dollars.

Completing Personnel Budget – FORM 2 Fringe Benefits Allocation Continued…. Line (15) Total Fringe Benefits - The electronic version of the form will automatically calculate total cost and Corporate (City) or Federal share and transfer to Budget FORM 1 account Line (16) Total Personnel Cost - The electronic version of the form will automatically calculate total cost.

Non-Personnel Budget FORM 3 Purpose - The purpose of this form is to estimate and justify the non-personnel line item amounts to be transferred to the Budget Summary FORM (1).

Completing Non-Personnel Budget – FORM 3 The Non-Personnel Budget FORM 3 consists of two sections: - Header - Non-Personnel Allocation

Completing Non-Personnel Budget -FORM 3 Header Information Fill in the following sections: A. Agency Name B. Program Name C. PO Term

Completing Personnel Budget – FORM 3 Non-Personnel Allocation Column (1) and (2) Item of Expenditures and Account Numbers - These sections are pre-filled by FSS and are lock for editing. Column (3) Total Cost - Enter the total amount for each Non-Personnel item of expenditure needed to run the program. Column (4) Corporate (City) or Federal Share of Total Cost - Indicate the share of the total cost listed in Column (3) that will be paid using Corporate (City) or Federal funds.

Completing Personnel Budget – FORM 3 Non-Personnel Allocation Continued… Column (5) Line Item Description and Justification - Each amount of budgeted funds listed in Column (4) must be justified. Note - Show all calculation (add additional sheet if necessary). Include quantities and unit cost wherever possible. The electronic version of the Budget FORM 3 will automatically transfer the non-personnel amounts from the individual line items to the body of FORM 1.

Budget – Common Challenges and Key Pointers Common Challenges: Math errors Lack of sufficient and/or clear justification Key Pointers: Prepare a good cost allocation plan Stay within original line-item budgets When the need arises, request a budget revision

Budget Revision FORM 1A Purpose: - Summarize by item of expenditure the revised total budget of the program to be funded in whole or in part with Corporate (City) or Federal funds. Note - to complete FORM 1A, fill in the header information and column (3) on the form only. When FORMS 2 and 3 are completed the links on those forms will automatically complete column (4) and (5).

Completing Budget Revision FORM 2 and 3 Budget Revision FORMS 2 and 3 are completed the same way the original budget FORMS 2 and 3 were completed. Note - The budget revision FORMS 2 and 3 are linked to both Original Budget FORM 1 and the Budget Revision FORM 1A. They are the same forms used for the Original budget.

Budget Revision Do’s Do’s: 1. Monitor expenditure rates (Overall & Line-item) to determine variances from original levels. 2. Request Budget Revisions as soon as deemed necessary (No Limit!). 3. Provide a compelling justification

Budget Revision Don’ts Don’ts: 1. Don’t wait until the award has expired to request a budget revision. 2. Don’t shift dollars originally budgeted for direct services to line items benefiting non- direct services 3. Don’t assume that the budget revision will be automatically approved by exceeding line items before official approval.

Budget Revision Don’ts Continued 4. Don’t change the original share numbers from the numbers that were approved on the original or any approved budget revision.

Invoicing Invoice Forms: - Form 1 - Summary Reimbursement Invoice Form. - Form 2 – Detail of Salaries and Wages Paid by Contractor. - Form 3 – Detail of Project Expenditures, Excluding Wages Paid by Contractor.

Summary Reimbursement Invoice Form Purpose: - The purpose of this form is to comprehensively track the total costs the agency incurs in operating its Corporate (City) or Federal Ex-Offender programs.

Summary Reimbursement Invoice Form The Summary Reimbursement Invoice Form Consists of Five (5) Sections: 1. Funding Section 2. Header Section 3. Invoice Request Section 4. Comptroller Use Only Section 5. Agency Certification Section

Completing Summary Reimbursement Invoice Form Leave CV# Blank ( Comptroller use only ) Complete Funding: PO Number (Important) Release Number (Important) BFY, Fund, Dept, Org, Appr, Rptg can be left blank. However, you can complete if you know, please do not guess or assume same funding as last project! Complete Header Portion of Form: Contractor Name Project Title Address of Project

Completing Summary Reimbursement Invoice Form Cont. Complete Header Portion of Form Cont: Phone Number of Person completing Form Federal Employer Identification Number (FEIN) Invoice Number Invoice Period Covered Original Submission / Resubmission

Completing Summary Reimbursement Invoice Form Continued…. oComplete Invoice Request Section of Form: oCost Categories and Accounts Codes are locked from editing. Line numbers will be completed by FSS (leave blank). Enter the Approved Budget Amounts Enter the Amount Your Requesting oNote – The grayed sections of the of the Invoice Form are for Comptrollers use only (Leave Blank).

Completing Summary Reimbursement Invoice Form Continued…. Complete Agency Certification: Date Prepared Preparer Phone Number Bank Name (Important) Bank Address (Important) Account Number (Important) Read Certification! Have authorized person sign and Date form.

Voucher FORM 2 The purpose of this form: -Track the total personnel costs the agency incurs in operating its Corporate (City) or Federal Ex-Offender Program. and - Provide a brief summary of employee reimbursement for each budgeted position.

Voucher FORM 2 Cont. Voucher Form Two (2) consists of 3 parts: Header Portion Body Comptrollers Use Only Sections (Leave Blank)

Completing Voucher Form 2 Cont. Complete the header of the form: A. Agency Name B. Date Submitted C. PO Number (Important) D. Invoice Period C. PO Invoice Number

Completing Voucher FORM 2 continue….. Body of Voucher Reimbursement: (F) Check Date (G) Check Number – Fill in employees check number (H) Employee’s Name – Fill in employee’s full name ( I ) Account Code – Fill in account code number 0005 (J ) Budgeted Title – Name of title budget for this position

Completing Voucher FORM 2 continue….. Body of Voucher Reimbursement: (K) Gross Salary – Fill in the employee’s Salary (Per pay period) (L) % To Project - % of employee’s salary to be charge to Corporate (City) or Federal. (M) Total Amount – Gross Salary X % To Project Comptrollers Use Only Sections (Leave Blank)

Voucher FORM 3 The purpose of this form: Is to track the total Non-Personnel costs the agency incurs in operating its Corporate (City) or Federal Program.

Voucher FORM 3 The Voucher Form 3 Consists of 3 Parts: Header Portion Body Comptrollers Use Only Sections (Leave Blank)

Voucher FORM 3 Complete the header of the form: A. Agency Name B. Date Submitted C. PO Number (Important) D. Invoice Period E. PO Invoice Number

Completing Voucher FORM 3 Cont. Complete the Body of the form: (F) Check Date – Date on check (G) Check Number – Fill in the employee’s check number (Must have some sort of identifying number) (H) Payee – Who was paid by this check

Completing Voucher FORM 3 continue….. (I) Account Code (any of the following): 0044 Fringe Benefits 0036 Training / Customized Training 0070 Work Experience 0100 Operating / Technical 0140 Professional / Third Party Services 0300 Material & Supplies 0400 Equipment 0900 Other (please specify) 0998 Profit ( For Profit Agencies only

Completing Voucher FORM 3 continue….. (J) Cost Category - Enter from the list above (K) Amount of Check - Total amount of the check (L) % to Project – Amount to be reimbursed by Corporate (City) or Federal Program (M) Charge to Program - Amount of Check X % To Project Comptrollers Use Only Sections (Leave Blank)

Hints on Completing the Voucher Forms 1. Include PO/Release number on all forms (Important) 2. Sign in Blue ink 3. Don’t exceed the individual line items by showing negative balances 4. Monitor Proactively - Total program expenditures - Individual line item expenditures - Salaries, fringes, materials and supplies etc…. 5. One Voucher is due to FSS 15 days following the period vouchering.

Questions Adjourn