21 st CCLC Budget Meeting Thompson Building Chicago, Illinois May 16, 2008

General Grant Policies Begin date of grant cannot precede the receipt of a substantially approvable budget at ISBE. Obligation for funds based on amendments cannot begin prior to the date of the receipt of a substantially approvable amendment request at ISBE.

Budget Policies, Cont. Budget amendments must be received in the agency no later than 30 days prior to the end date of the grant. Regular end date is June 30, but can be extended to August 31, if a summer program will still be in effect after June 30 of any fiscal year.

Grant Activities Must be completed within the project beginning and ending dates Obligated funds can only be for projects that will fall within the timeline of the grant. Liquidation of all obligations, including current years audit fee should be completed no later than 90 days after the project ending date.

Continuation Applications No automatic continuation of a grant Grants received by July 1 receive a July 1 begin date. After July 1, the begin date is the day the budget is received (with continuation application) at ISBE. Budget negotiations and corrections may continue after the date of receipt.

Supplement vs. Supplant Cannot approve expenses required by state law. Principals, superintendents salaries and other supervisory personnel required by state law cannot be charged to a grant. Payroll must be supported by time and effort documents. Cannot approve regular expensese.g. rent, utilities, etc., that are regular cost of doing business. Only costs incurred as a result of the grant, e.g. additional clerical time, additional phone usage, etc.

Expenditure Reports All required expenditure reports must be received by the due dateusually 30 days after the end of a quarter. No payments will be made until required reports are filed. 20% variance per cell Cumulative Filed electronically Funds for projects must either be obligated or spent prior to the ending date of the grant.

Other Reasons for Freezing Funds Cash on hand Turn in an interim expenditure report to have funds released Not doing annual audit Not doing PPICS Secretary of State informs ISBE of CBO/FBO not being in good standing

Unspent Funds Unspent funds in one year will be considered prepayment on the next fiscal year grant. Unspent funds in the final year of the grant will be forfeited or returned to ISBE if they have already been sent to the grantee. Please use all your funds, but use wisely

Interest Income Grantees or sub-grantees can keep interest amounts only up to $100. This interest must go back into the program. Other interest MUST be returned. Checks should be made payable to U.S. Dept of Education and sent to ISBE. Checks should be accompanied by a statement identifying the program and program year from which the interest was earned.

Grantee Requirements A complete copy of the approved application, approved budget, and approved amendments must be maintained by the grant recipient. Continuation applications and budgets must also be maintained. Documents are reviewed by ISBE and LPA contractors to determine fiscal and program compliance. EDGAR rules require that records be retained for three years after completing activities pertaining to grant funds or until all outstanding claims have been resolved.

Where do I find budgets and amendment forms? Resources Budget forms for grants by cohort year, i.e., FY05, 07, 08, or 09

Budgets A budget is a project plan in which ideas are translated into expenses. No budget when submitted is more than an informed estimate of the costs to be incurred, but careful planning insures financial support is in place when needed.

Payment Schedules Payments are requested in months as needed, based on projected dates of expenditures. Salaries and fringe benefits are expended in equal intervals and should be projected in this manner. Supplies, materials, and contracted services should be requested in month in which the expenditure is expected.

When is an Amendment Needed? The scope of the program changes: e.g., summer school is added. Change in a budget cell of 20% or $1000 (whichever is greater). Adding a new expenditure (opening a new cell) on the budget End date is changed (letter or will suffice on this)

Expenditure Reports Cash management tool Transmitted electronically via IWAS Notification sent via Anything beyond the 20% variance is not accepted Failure to submit = funds frozen until report is received

Salaries Payroll must be supported with time and attendance records. Salaries chargeable to more than one grant program or cost objective must be supported by appropriate time and effort (time distribution) records.

Indirect Costs Costs incurred for common or joint objectives that cannot easily and specifically be identified with a particular grant Payroll Accounting Data processing Functions 2510, 2520, 2570, 2640 and 2660if direct costs here, no indirect costs can be used on budgets CBOs/FBOs use the state averagenot yet determined for FY09 School districts are computed and can be found in the NCLB consolidated applications Universities use 8%

Cost Allocation Plans Written plan that states how an entity will accumulate and distribute allowable admin costs in grants and identifies the methods used for distributing Examples in Fiscal Policy and Procedures Handbook Audits required yearly and may be charged to grantprorated according to grants being audited

1000, 100 Instructional Salaries Positions here MUST spend more than 50% of time in direct instruction of students. Must be employed by the fiscal agent Teachers Teacher aides Tutors Others who may teach or lead activities

BudgetSalaries, Examples 10 teachers (5 math, 5 reading) X $25 hr X 2 hrs/wk X 28 wks--$70,000 5 math tutors X $10/hr X 2hrs/wk/28 wks = $ recreation leaders X $15 hr X 1hr/wkX28 wk= $2100

1000, 200Benefits Paid to employees of fiscal agent Must be listed separately on grant Provide total expenses for all employees in each category TRS (federal is required for teachers) Medicare Life Insurance Medical/Health IMRF (non certified staff)

Benefits Examples teachers TRS 5 tutors IMRF 5 recreation leaders (Considered employers insurance) 5 Rec Leaders Workers comp 5 Rec Leaders Unemployment comp

1000, 300 Purchased Services Workers comp Unemployment comp Fees for presentations to students Consultant fees Field trip entrance fees Software license fees Salaries of those not employed by fiscal agent Teachers, tutors, etc Rec Leaders from YMCA

1000, 400 Supplies and Materials It is not enough to put supplies and materials and list an amount Examples must be suppliessupplementary reading books, folders, flip charts, art supplies, educational software No equipment is allowedeven if under $500 Incentives go heremust put what is to be given No t-shirts No cash Reasonable and feasible based on total amount of grant

2210, Improvement of Instruction (Professional Development) 100--Stipends for those attending professional development outside regular work hours 100Substitute teachers (if PD held during regular work hours) 200--Benefits on stipends 300--Fees for conferences (list conference if known), per diem, hotel expenses, consultant fees 400books and journals for those attending professional development training

2230 Assessment and Testing 100--Salary paid specifically for someone who performs testing 200Benefits on salary (always list separately) 300Unemployment or workers comp 400ACT test prep materials

Administrative Costs For salaries to be here, they must be for administrative positions, e.g. project director, grants coordinatorsomeone who is considered an administrator by agency No teaching salaries, site coordinators, unless they are administrators serving as site coordinators

General Administration 100Project director--.25 FTE= $15,000 Project coordinator--.5 FTE=$15, Benefits for these positions (list) Workers comp, unemployment com, postage, travel costs between projects, audit (prorated) 400Suppliesgeneral office supplies

2520Fiscal Services 100--Bookkeeper hours X $12hr =$ Associated benefitsdelineate 300--Workers and/or unemployment comp 400Bookkeeping suppliesledgers, file folders, ink cartridges---$500

2540 Operations and Maintenance 100--Janitor salary for cleaning after school areas 200--Associated benefits (list) 300Workers comp; prorated rent for use of building after school (usually CBO/FBO) 400General cleaning supplies

2550--Transportation 100--Bus drivers salaries 200Benefitslist each out separately Benefits for own workers or *Contractual bus service 150 days at $200 per day= $30, Gas, oil= $4000 (if grantee is paying; usually included in a contract)

2560Food Services 100Cafeteria workers salaries to serve snacks 2 workersX$10/hrX5hrs/wkX 28wks=$ IMRF, insurance 300Workers compensation

2620Planning, Research and Evaluation 100if employees internally do this 200 and/or 300benefits--list 300-contractual for evaluation(if this is paid to a public entity, it goes in 4100, 300)

Support Services Site Coordinators Salaries go here 100 Salaries.4FTE=$15, benefitslist each separately with percents that apply and total 300if applies 400General office supplies=file folders, ink cartridges, paper, markers

3000--Community Services All payments related to parents go here 100 salaries paid for adult education by employees of fiscal agent; parent liaison 200/300--Benefitslist 300Contractual for programs for adults Drug awareness counselor Museum Suppliesart and craft supplies, books on parenting, take home reading kits

Common Errors Not enough detail Using zeroes, decimals, etc. Not working on payment schedule to schedule payments when really needed (leads to excess cash on hand) Not putting workers comp in Object 300 Not delineating supplies Categorizing workers salaries in wrong place 2210salary here cannot be for time with student contact 4100, 300not putting payments to government entities, LEAs here regardless of service provided

More Common Errors Not having original signatures on budgets and grant agreements Forgetting to mail hard copy after faxing budgets Not establishing what end date is requested Not submitting an original budget because believing continuation means automatic renewal Not keeping copies of the final approved budget which may have changes made by ISBE

Auditing Auditors presume supplanting unless you have records to prove otherwise Nothing paid in previous year with state, private, or local funds (unless that fund source changed)

Resources re_handbk.pdf re_handbk.pdf Fiscal Policies and Procedures Handbook budget amendment forms continuation applications

ISBE Contacts Chicago Consultant--312/ Joe Banks Springfield Consultants217/ Carol Gail Meisner-- Gary Miller-- Secretary Pam

Questions?