Workforce Investment Act (WIA) Youth 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, Vouchering and Close-Outs Richard M. Daley Mayor

Website For Workforce Investment Act Forms and Instructions Click Youth Tab Click Workforce Investment Act (WIA) Link Click Documents Link Click WIA 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 - Narrative Justification

Budget Form 1 Purpose - To summarize by item of expenditure the total budget of the program funded by in whole or in part with WIA funds and to specify the share of total cost charged to the WIA 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 WIA 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. 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. 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, reproductionand 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 WIA 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 WIA program. Column (2) Employee Name Provide the name of all employees needed to run the WIA 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) WIA Share - Please indicate the amount of total salary cost column (6) to be paid with WIA 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.

Completing Personnel Budget – FORM 2 Fringe Benefits Allocation 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 WIA program. Line (11) State Unemployment Insurance - Provide the amount of total cost column (6) and the amount of total cost to be charged to the WIA program.

Completing Personnel Budget – FORM 2 Fringe Benefits Allocation Continued…. Line (12) Workers Compensation - In columns (7) and (6) show the share of this total to be charged to WIA and the total State Workers Compensation Insurance Cost respectively. 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 WIA share for each benefit listed. Note - Agency should check with FSS to determine whether additional benefit(s) it whishes to offer are WIA eligible expenses.

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 WIA 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. Department 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 - Indicate the total amount of funds budgeted for each item of expenditure specified in Column (1).

Completing Personnel Budget – FORM 3 Non-Personnel Allocation Continued… Column (4) WIA Share of Total Cost - Indicate the share of the total cost listed in Column (3) that will be paid using WIA funds. 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.

Required Narrative to Justify WIA Non-Personnel Cost Purpose - The purpose of this narrative is to explain in detail each line item of expenditure on the Non- Personnel budget FORM 3. The description will include what will be paid for, any calculations that where used to determine the cost and how the cost are allowable, necessary, reasonable and allocable (attach additional sheets if necessary.) Note - The Budget Narrative is required and the budget should not be turned in without it! The budget will not be approved until the narrative is submitted.

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 WIA Youth 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. 4. Don’t change the original share number from the numbers that were approved on the original or any approved budget revision.

Vouchering Voucher Forms: - Summary Reimbursement Voucher Form - Form 1 – Youth In/ Out –of-School Monthly Voucher - Form 2 – Detail of Salaries and Wages Paid by Contractor - Form 3 – Detail of Project Expenditures, Excluding Wages

Summary Reimbursement Voucher FORM Purpose - The purpose of this form is to comprehensively track the total costs the agency incurs in operating its WIA Youth programs by funding source (i.e. In-School or Out-of-School)

Completing Summary Reimbursement Voucher Form Leave CV# Blank ( Comptroller use only ) Complete Header Portion of Form Contractor Name Project Title Address of Project Phone Number of Person completing Form Federal Employer Identification Number (FEIN) Invoice Number Invoice Period Original Submission / Resubmission Enter Appropriation Number ( if Know)

Completing Summary Reimbursement Voucher Form Continued…. Enter the Monthly Request ( i.e. In or Out of School ) Enter the Approved Budget Amounts Enter Year to Date Amounts ( Included Current Month) Enter Available Balance ( Approved Budget minus Year-to-Date Expenditures ) Complete Agency Certification Have authorized person sign form. Note – Leave sections for Comptrollers use only, blank.

Voucher FORM 1 Purpose - The purpose of this form is to summarize by line item the total cost the agency incurs, the year to date costs incurred and the available balances per line item.

Completing Voucher FORM 1 Complete the header of the form. Agency Name, Contact Person, Agency Telephone Number, Voucher Number, PO Number, Contract Period, and Voucher Period. Enter the approved line item budgets in column number 1. Enter the actual expenditures being requested for reimbursement in column #2.

Voucher FORM 1 continue…… Enter the Year-To-Date expenditures in column #3. Including the current amount being requested. Subtract YTD Request (column 3) from the Approved Budget (column 1) to get YTD Available Balance (column 4).

Voucher FORM 2 The purpose of this form: -Track the total personnel costs the agency incurs in operating its WIA Youth Program. - Provide a brief summary of employee reimbursement for each budgeted position. Complete the header of the form: A. Agency Name B. Date Submitted C. PO Number D. Invoice Period C. Invoice Number

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 (K) Gross Salary – Fill in the employee’s Salary (Per pay period) (L) % To Project - % of employee’s salary to be charge to WIA. (M) Total Amount – Gross Salary X % To Project

Voucher FORM 3 The purpose of this form is to track the total Non-Personnel costs the agency incurs in operating its WIA Program. Complete the header portion of the form: Agency Name, Date submitted, PO Number, Invoice Period, and Invoice Number Complete the body portion of the form:  Check Date  Check Number – Fill in the employee’s check number  Payee – Who was paid by this check

Voucher FORM 3 continue….. ( I ) Account Code (any of the following):  0044 Fringe Benefits  0036 Training / Customized Training  0100 Operating / Technical  0140 Professional / Third Party Services  0300 Material & Supplies  0070 Work Experience  0400 Equipment  0900 Other (please specify)  0998 Profit ( For Profit Agencies only)  0999 Supportive Services ( J ) Cost Category – Enter from the list above

Voucher FORM 3 CONTINUE….. ( K ) Amount of Check - Total amount of the check ( L ) % to Project – Amount to be reimbursed by WIA Program ( M ) Charge to Program - Amount of Check X % To Project Hints on completing the voucher forms: 1. Include PO number on all forms 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.

Award Close-out Process Close-out Forms: - Close-out Summary Form (FORM # I) - Line Item Detail of Expenditures In- School Youth Program (FORM # II) - Line Item Detail of Expenditures Out-of- School Youth Program (FORM # III) - Property Inventory (FORM IV) - Contractor’s Assignment of Refunds, Rebates, and Credits (FORM V)

Award Close-out Process Continued Close-out Forms Continued: - Financial Record Retention (FORM VI) - Awardee’s Release (FORM VII) Completing FORM I (Close-out Summary) Header info – Agency name, PO #, Address, Contact Person, Phone number, Fax number, and address.

Award Close-out Process Continued Completing FORM I continued: - Award info – This section is linked to FORMS II & III. Complete FORMS II & III and the info will roll over to FORM I and all the field related to award info will populate. Note – - Read the definitions section for definitions of the following categories of award info: - Final Award - Actual Cost - Contract Revenue - Program Income/Loss - The Authorized person sign and date in blue ink.

Award Close-out Process Continued Completing FORM II & II (In & Out-of-School Programs) Line Item Detail of Expenditures : - There are four (4) columns to be completed: 1. Award Amount 2. Actual Program Cost 3. Reimbursable cost 4. Income/Loss

Award Close-out Process Continued Award Amount (Column 3) – Record your final (Approved by FSS) award amount by line item. Actual Program Cost (Column 4) – Indicate the total Actual costs incurred for each line item. Reimbursable Cost (Column 5) – indicate the amount reimbursable costs, both Actual and Accrued thru the end of the program. Income/Loss (Column 6) – The system will populate based on the entries in the other three (3) columns. Note- The system will perform all calculations and transfer the appropriate numbers to FORM 1.

Award Close-out Process Continued Completing FORMS IV (: Property Inventory) Header Info – Agency Name, Contract (PO #) number, and who prepared the form. Inventory Info – Tag number, description of inventory, any identifying numbers, vendor where inventory was purchased condition of inventory, purchase date and price, location of inventory. Note – If any property with an acquisition cost of $5, or more and a life expectancy of one year or more has been acquired during the grant period with WIA funds, the contractors must include a property inventory form.

Award Close-out Process Continued Completing FORMS V (Contractor’s Assignment of Refunds, Rebates, and Credits): Complete form V by filling in the agency name and address, PO number (Contract #). Read the Assignment section and have the authorized person sign and date in blue ink.

Award Close-out Process Continued Completing FORMS VI (Financial Record Retention): This form is completed by having the authorize person read and sign and date the form in blue ink. Completing FORMS VII (Awardee’s Release): This form is completed by filling the blanks with the total amount of expenses incurred and accrued against this contract and then separate the total expenses into two amounts : 1. Amounts already paid by FSS 2. Amounts still to be paid by FSS Provide as munch detail as possible related to the outstanding amounts. Have the form signed and dated in blue ink by the authorized person.

Award Close-out Process Continued Key Dates in the Process - Forms will be provided around June 1 st - Forms due back by end of July Common Challenges - Underreporting of Stand-In-Cost (WIA and Non-WIA) with Revenue - Discrepancies between Total Close-out Costs vs. Total Vouchers - Not submitting all Forms Key Pointers - Regularly reconcile revenue received with amounts included in the vouchers

Questions Adjourn