1. Perkins Fiscal Procedures and Requirements for Managing the Funds--Post-Secondary
October 17, 2012
JoAnn Simser
Shannon Kohlman
State Director, CTE
Grants Accountant
System Director, Perkins Federal Grant
Finance Division
Debra

2. Goals
Review accounting procedures designed to address reporting requirements
Clarify the two different ways partners receive reimbursement—draw downs and invoicing
Explain the process for accurately drawing down and receipting the funds expended
Debra

3. FY2013 Perkins IV Budget for Minnesota
October 1, 2012 Allocation A
Title 1 Assistance to States
16,754,034.00 B
Title 11 (Tech Prep) Allocation - C
Total Award
A + B
16,684,637.00 D
26 Consortia (85% of total award)
0.85 * C
14,181,941.45 E
Basic Grant (90% of the 85%)
0.90 * D
12,763,747.31 F
Secondary Programs 42%
0.42 * E
5,360,773.87 G
Postsecondary Programs 58%
0.58 * E
7,402,973.44 H
Reserve (10% of the 85%)
* D
1,418,194.15 I
0.42 * H
595,641.54 J
0.58 * H
822,552.60 K
State Leadership (up to 10%)
0.10 * C
1,668,463.70 L
Secondary Programs 44%
0.44 * K
734,124.03 M
Postsecondary Programs 56%
0.56 * K
934,339.67 N
State Institutions, max of 1% of total award
50,000.00 O
Non Traditional Training, must spend $60 - $150K
60,000.00 P
State Leadership Initiatives
M - N - O
824,339.67 Q
State Administration (5%)
0.05 * C
834,231.85 R
Fiscal Agent responsibility--Post-Secondary (5% of 5%)
0.05 * Q
41,711.59 S
Remainder to be split
Q - R
792,520.26 T
Postsecondary (65%)
0.65 * S
515,138.17 U
Secondary (35%)
0.35 * S
277,382.09
D + K + Q
JoAnn Handout: FY13 Perkins Budget MN on the website
In July 2013 and October, 2013 the state of Minnesota received awards form the Office of Vocational and Adult Education (OVAE), US Department of Education totaling $16 million, 894 thousand, 637 dollars. This was allocated to the system office, the MN Department of Education and local consortia as detailed in the prior webinars according to the legislation and the budget submitted with the state plan and approved by OVAE.

4. FY13 Local Consortium Award Allocations
FY13 Local Consortium Perkins Plan Approval Notification and Fiscal Information including the award was ed to the Superintendent and the President at the fiscal host district and college with copies to local consortium fiscal and Perkins contacts upon approval of local consortium plan after July 1, 2013
JoAnn
Allocation Award letters were sent to each local consortium host President and Superintendent with copies to consortium contacts
and fiscal contacts upon approval of Local Consortium plan after July 1, 2013.

5. Perkins 2012-2013 SFY13 Award Letter Basic and Reserve Allocations
Forward Funding
JoAnn
As was stated in the last webinar, Minnesota’s Perkins allocation for was consistent with the estimate provided March 10, 2013 and with the allocations awarded July 2, 2013 and October 1, 2013.
[click]
As such, each Perkins consortium received an allocation letter upon approval of their local consortium plan that showed final figures for the fiscal year under:
Secondary basic allocation
Secondary reserve allocation
Postsecondary basic allocation
Postsecondary reserve allocation
The forward funding amount within the total allocation that could be expended prior to October 1, 2013 was specified towards the end of the letter.

6. Reallocation Award Letter—coming later Prior Year Reallocation
Each consortium may anticipate that there will be an additional allocation later this year of Reallocation funds not used by Perkins consortia during the school year. This will be sent after the funds to be redistributed are known, probably in December, 2012 or January, 2013.
Due to the First In, First Out principal the consortium should expend the reallocated amounts before the FY13 basic and reserve funds for activities in the approved local consortium plan.
[click x 2]
FIFO

7. FY13 Local Consortium Budget Revisions with Reallocated Funds
Local consortium contacts will need to review their approved FY13 local application and decide where to make necessary budget changes
Fiscal hosts and Perkins contacts will need to submit an adjusted Post Secondary Budget to add the reallocated allocation on the FY13 Budget Summary .
JoAnn
You will need to submit an adjusted Post Secondary Budget and Secondary Budget for the reallocated allocation on the FY13 Budget Summary at that time.

8. FY13 Budget Summary JoAnn
You will need to submit an adjusted Post Secondary Budget to add a column for reallocation on the FY13 Budget Summary. Your secondary colleagues will need to adjust the secondary budget as well.

9. Why Multiple GL’s?
Federal requirements stipulate that each Grant Award activity deliverer reports with the following attributes:
Data consistency
Report reproducibility
Clear Audit trail
Ability to create consolidated annual report
Shannon

10. GL’s Assigned by Office of the Chancellor
State fiscal year runs from July 1 through June 30.
Use of different General Ledgers to ensure full transparency across years:
Name FY 13 FY14
Basic
Reserve
Leadership
Sub-Grants
Reallocation
Shannon—add FY14 GL’s

11. Chart of Account Set-up:
Business Office at System Office (SO) assigns five GL numbers
SO directs all colleges to use ONLY the assigned five GL’s for their accounting systems
For Basic Grant, each fiscal contact college creates a minimum of six cost centers—five cost centers linked to the five goals in their plan and one administration cost center
Shannon
Business Office at each consortium fiscal contact college loads its budgets in accordance with its awarded grant dollars into its accounting systems

12. How State Leadership Dollars are Expended
Intra-agency agreements between system office and colleges
To receive reimbursement:
Colleges invoice system office for expenditures incurred under the agreement
System office reimburses colleges
Colleges reduce their expenditures by the amount paid
Shannon:
JoAnn: Examples of intra-agency agreements are the special assignment of college staff to OOC.

13. How State Leadership Dollars are Expended (cont.)
Perkins IV Agreements for Community and Technical Colleges
To receive reimbursement:
Colleges establish a cost center within leadership G/L and load budget specified within the agreement
Establish a separate cost center for each Perkins Agreement
Access funds using the drawdown expenditure reimbursement process specified for basic grants
Shannon: The G/L number will be specified within the Perkins Agreement. Funds allocated through the Perkins Agreements must be expended by May 31, Otherwise they will be recaptured and no longer available to the college.
JoAnn: Examples of Perkins Agreements from state leadership funds include coordination of technical skill assessment projects and the Student Learning Communities grants.

14. Drawdown Expenditure Reimbursement Process
Business office at the system office
communicates the GL numbers to the colleges
College receives notification of award specifying the maximum they are authorized to spend
College starts spending the budgeted amount within the limits of the grant requirements charged against the appropriate current year cost centers
System office grant accountant checks the Perkins GL’s for all colleges for accumulated expenditures and completes the draw down from the federal systems to reimburse college
Shannon
System office grant accountant enters a Receipt Wire in SWIFT to ensure the funds are directed to college
System office grant accountant sends college notice that funds will be
deposited in college’s SWIFT account. College fiscal contact ensures
receipt of the funds into the appropriate Perkins cost center in ISRS.

15. Receipting the Draw Down
Revenue should be receipted with in three business days after notification from the Grant Accountant.
Revenue should be receipted to object code 9401 with a Y Flag
Revenue should be receipted to the cost center where the expense is.
Shannon

16. Draw Down Considerations
Grant Accountant will be sending funds for the GL’S that are assigned by the system office.
The system office will not send any funds in excess of the allocated amounts. Even if there is an expense in a cost center.
Shannon

17. Year End Considerations
Please record the expense in the correct object code as there will be no opportunity for changes after the fiscal year end closes.
This will result in accurate reporting.
Shannon

18. Consortium Monitoring
System office will conduct a fiscal audit and visit as part of consortium monitoring process at six consortia in FY13
Monitoring visits and fiscal audits at all consortia in FY 10- FY13
Schedule and procedure:
Shannon
Handout: Documentation for Local Consortium Monitoring Visit-Post Secondary Fiscal Audit

19. 3.1 Local Application Budgets Changes
Budget changes of $10,000 within a goal must be preapproved by the system office CTE staff-send an request to JoAnn Simser with a copy to Denise Roseland
College coordinators must receive written approval before expenditure is made.
Perkins IV Operational Handbook, Section III Financial Requirementshttp:// p
JoAnn We would like to highlight some items from an important resource for you, the Perkins IV Operational Handbook Section III Financial Requirements. It can be found on the website under consortium resources. Budget changes of $10,000 or more within a goal must be preapproved by the system office CTE staff. The College Perkins coordinator must receive written approval before you can make the expenditure. Keep the documentation for any future audits.

20. 3.5 Financial Cost Centers 5. Sub-grants GL
Sub-grants may be made from one college to another recipient
Entity granting the funds
pays from the source-the Basic GL, Reserve GL, Reallocated GL or Leadership GL
reimbursed by system office
Entity receiving the funds
sets up a cost center in the sub-grant GL for each sub-grant and receipts grant funds and expenditures to that cost center
reimbursed by the sub-granting college, not system office
Perkins IV Operational Handbook, Section III Financial Requirementshttp:// p
Shannon

21. Perkins CTE Financial Questions
Please input your questions on the chat function.
We value your questions, input and feedback. It helps us all do better.
Debra

22. Perkins Fiscal Resources
Perkins IV Operational Handbook-Section III Financial Requirements p
Local Consortium Application Sections I, II, III
Monitoring Visits and Financial Audits
Frequently Asked Questions
Home page-right side
JoAnn
Handout: Perkins IV Operational Handbook Section III Financial Requirements p

23. Perkins Fiscal Webinars
Perkins IV Law and Procedures and Requirements for Fiscal Agents-Part I, October 9
Perkins IV Distribution and Uses of Funds-Part II, October 15
Perkins Fiscal Procedures and Requirements for Managing the Funds– Post-Secondary, October 17
Perkins Fiscal Procedures and Requirements for Managing the Funds – Secondary, October 24
Debra

24. A note about CEUs…
Teachers can get certificates (1 hour) within two weeks of completing the session evaluation for today’s webinar.
NOTE: Since there is no teacher CEU preapproval process it is up to the local continuing education committee to decide whether or not these hours will apply to your teaching license renewal.
Debra