1. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Fiscal Components of Monitoring Stephanie English, Chief Monitoring & Compliance Section Division of School Business Services

2. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Fiscal Monitoring  DPI has initiated a 5-year Comprehensive Monitoring plan  2007-08 is “Year Two”  Plan includes 11 Federal grant programs

3. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Fiscal Monitoring (cont’d) Items Monitored:  Time and Effort Documentation  Equipment records  Budget Vs. Expenditures (including set-asides and limitations)  Contracts/Invoices

4. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Time and Effort Applies to every employee funded from federal funds. Purpose: To document that the appropriate federal program is receiving the benefit of the services supported by grant funds. Required by OMB Circular A-87, Attachment B, Item 8 (h), and is in addition to the standards for payroll documentation.

5. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Two Types of Participating Employees: Single Cost Objective Multiple Cost Objectives

6. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION 1. Employees Who Are Employed 100% In A Single Cost Objective Employees must have at least semi-annual certifications that they worked solely on that program. Certifications must be signed by the employee or the supervisor who has first hand knowledge of the work performed.

7. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Special Note on Schoolwide Schools In a Title I Schoolwide School, all funds lose their identity. Employees in a Schoolwide School may be paid from any fund source, or any combination of funding sources, and their effort statement would state “100% Title I Schoolwide School”, making a certification statement the appropriate documentation. Employees in a Schoolwide School who are paid from federal funds are the ones who document their time and effort.

8. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION

9. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION “Blanket” Certification I certify that the employees listed below spent 100% of their time for the period of September 8, 2007, through December 22, 2007, on Title I Schoolwide Activities. Employees:(List) Signed: __________________ Date: ______________ Name and Position Title

10. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION 2. Multiple Cost Objective Employees Employees paid from more than one federal grant or by a federal grant and a non- federal award, with different cost objectives. They must support their salaries and wages by completing monthly personnel activity reports (PAR forms) unless a substitute system has been approved.

11. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Personnel activity reports must: Reflect an after-the-fact distribution of the actual activity of each employee; Account for the total activity for which each employee is compensated; Be prepared at least monthly and must coincide with one or more pay periods; and Be signed by the employee.

12. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION PAR Form - Must have an “effort statement” that accounts for 100% of the employee’s effort - Must enter the number of hours worked (No “X” entries) - Must account for time worked on all cost objectives

13. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Substitute systems for allocating salaries and wages to federal grants may be used only if approved by the cognizant agency. DPI is the cognizant agency for LEAs/Charter Schools. Substitute Systems:

14. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Substitute Systems: - Each substitute system specifies the months that PAR forms will be completed. - At end of reporting year, calculation of average deviation will determine number of reporting months the following year. - Use the same PAR forms and semi- annual certifications as those without substitute systems.

15. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Equipment Federal regulations require certain records to be kept Not to be confused with “fixed assets” tracking What to track?  Items with a useful life > 1 year  Police report filed if the item “disappears”

16. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Equipment Education Department General Administrative Regulations (EDGAR) 34 CFR 80.32 (d) Management requirements (1) Property records must be maintained that include…

17. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Description of the property Serial number or other identification number Source of property Who holds title Acquisition date Cost of the property Percentage of Federal participation in the cost Location, use, and condition Disposition data (including date of disposal and sale price)

18. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Other Equipment Management Requirements: Physical inventory (reconciled with property records at least once every 2 years) Control system Adequate maintenance procedures

19. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Contracts/Invoices Contracts for personnel services MUST be specific – who, what, when, where, why. Invoices must contain the same basic information – it is not enough to just refer to the contract number.

20. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Contracts/Invoices (cont’d) From Title III Monitoring Report (10/07): … disbursements must contain “an adequate original vendor invoice, which includes an invoice number and/or date and a description justifying the disbursement.” Also: “… sufficient descriptions of goods or services provided [must] be included in all vendor invoices.”

21. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Administration Limitation Administrative Cost is limited to 2% of current year allotment What is considered Administrative Cost? Indirect Cost rate may result in excess Administrative cost Unspent portion of allowable Admin expenditures can be carried forward to the next year (assuming sufficient carryover exists)

22. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Questions?

23. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Resources Federal information: OMB Circulars EDGAR http://www.ncpublicschools.org/fbs/financ e/federal/

24. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Contacts Stephanie English, Chief Monitoring & Compliance Section 919-807-3686 senglish@dpi.state.nc.us Margaret Wall, Accountant Monitoring & Compliance Section 919-807-3682 mwall@dpi.state.nc.us