1. 1 WHAT’S NEW? Cash Management & Carryover Presented by: Presented by: Craig Thurman Craig Thurman Office of Financial Management Margaret Madigan & Mike Radke Office of School Improvement

2. 2 Cash Management Cash Management

3. 3 Cash Management Rules States are governed by the Cash Management Improvement Act (CMIA) a law that regulates the transfer of funds between federal and state government. a law that regulates the transfer of funds between federal and state government.

4. 4 1. To prevent states from drawing down federal funds before they were needed, thus “profiting”. 2. To prevent the federal government 2. To prevent the federal government from making late payments to states, from making late payments to states, requiring states to advance their own requiring states to advance their own funds, thus getting a free “loan”. funds, thus getting a free “loan”. The CMIA was enacted primarily for two reasons:

5. 5 Cash Management Rules (cont.) Cash Management Rules (cont.) The CMIA is designed to reduce these problems by requiring states to draw down funds only when they have an immediate need for cash, while requiring the federal government to make prompt payments. The CMIA is designed to reduce these problems by requiring states to draw down funds only when they have an immediate need for cash, while requiring the federal government to make prompt payments.

6. 6 Cash Management Funding Techniques

7. 7  Cash advance. The state draws down funds no more that three days in advance of when it will spend the money.  Reimbursement. The state draws down funds after the state has already paid money for federal program purposes.

8. 8 Penalties for violating CMIA Penalties for violating CMIA

9. 9 Penalties for violating CMIA  Interest  High Risk Determination  Loss of Federal Funds

10. 10 CMS: What and Why? Cash Management System (CMS)

11. 11 CMS: What and Why? CMS replaces Grants Cash Management CMS replaces Grants Cash Management and Reporting System (GCMRS) and Reporting System (GCMRS) -New technology -New technology -Increased functionality -Increased functionality -Better usability -Better usability -Integration to Michigan Electronic Grants System -Integration to Michigan Electronic Grants System (MEGS) (MEGS) -Improved security -Improved security -Fiscal monitoring -Fiscal monitoring

12. 12 CMS: What and Why? (cont.)  Functions for Recipients Request funds and certify fund Request funds and certify fund requests requests Report and certify final Report and certify final expenditures expenditures View data View data Control access Control access

13. 13 CMS: What and Why? (cont.)  Functions for MDE Monitor and control cash Monitor and control cash disbursements disbursements Authorize disbursements to Authorize disbursements to recipients via MAIN recipients via MAIN

14. 14 Using CMS: Accessing the Website https://mdoe.state.mi.us/cms https://mdoe.state.mi.us/cmshttps://mdoe.state.mi.us/cms

15. 15 Security Level Access and Options: 3 Access Levels: Number 1-Recipient Certify Number 1-Recipient Certify Request funds for a project (DS-4492) Request funds for a project (DS-4492) Certify funds requests Certify funds requests Report final expenditures (DS-4044) Report final expenditures (DS-4044) View data View data Control access Control access Maintain business contacts Maintain business contacts Certify Final Expenditures Certify Final Expenditures Maintain business contacts Maintain business contacts

16. 16 Number 2-Recipient Enter Number 2-Recipient Enter Request funds for a project (DS-4494) Request funds for a project (DS-4494) Report final expenditures (DS-4044) Report final expenditures (DS-4044) View data View data Maintain business contact Maintain business contact 3 Access Levels:

17. 17 3 Access Levels: Number 3-Recipient View Number 3-Recipient View View data View data Maintain business contact Maintain business contact

18. 18 Viewing Data  View your CMS data  Export to spreadsheet

19. 19 Controlling Access Controlling Access  Control users with Recipient Enter and Recipient View access  E-mail Contact? Will also receive copies of automated CMS e-mails e-mails

20. 20 Controlling Access (cont.) Maintaining Business Contact  Business Contact will receive CMS automated e-mail notices:

21. 21 Controlling Access (cont.) Maintaining Business Contact  Final Expenditure Report due  Final Expenditure Report delinquent  Overpayment  Reopened Final Expenditure Report  Disbursements

22. 22 Contact Information Contact Information If you experience any problems or have questions concerning, Grants call Debby Roberts at (517) 335-0534. CMS Security call Janet Brown at (517) 335-0550. or E-mail: MDE-cms@michigan.gov MDE-cms@michigan.gov

23. 23 Carryover

24. 24 Carryover Funds Programs included in the Consolidated Application

25. 25 Allowable Carryover  All programs allow carryover with two variations: two variations: Title I, Part A Title I, Part A Title I, Part C Title I, Part C (Migrant Education Program) (Migrant Education Program)

26. 26 Title I, Part A  Title I, Part A 15% carryover limit 15% carryover limit Exception by waiver request once Exception by waiver request once every 3 years every 3 years Request must be reasonable and necessary and include information on why the carryover limit was exceeded Request must be reasonable and necessary and include information on why the carryover limit was exceeded

27. 27 Title I, Part C  Title I, Part C does not allow any carryover carryover  The program requires that funding be used for services during the period used for services during the period that the funds are awarded that the funds are awarded

28. 28 Applying for Carryover Carryover will be available in MEGS Carryover will be available in MEGS Fund Requested Fund Requested Final Expenditure Report is certified Final Expenditure Report is certified Balance appears as “carryover” in the Balance appears as “carryover” in the Consolidated Application Consolidated Application

29. 29 Applying for Carryover Application for carryover is made Application for carryover is made By amending the 2007-08 Consolidated By amending the 2007-08 Consolidated Application in MEGS Application in MEGS Carryover no longer requires separate Carryover no longer requires separate budget or application budget or application

30. 30

31. 31 Program Changes  Federal requirements state that program amendments are needed in the following situations: Adding staff or changing FTEs Adding staff or changing FTEs Adding a new function code to the budget Adding a new function code to the budget Moving an amount greater than 10% between approved function codes Moving an amount greater than 10% between approved function codes

32. 32 Program Changes (cont.)  Federal requirements state that program amendments are needed in the following amendments are needed in the following situations: situations: Accessing total allocations when a lesser amount was applied for initially, or when the allocation is increased; or Accessing total allocations when a lesser amount was applied for initially, or when the allocation is increased; or Applying for an additional grant source Applying for an additional grant source

33. 33 Questions??? Mike Radke: radkem@michigan.gov Margaret Madigan: madiganm@michigan.gov Or call the Office of School Improvement at 517-373-3921