1. Perkins Fiscal Procedures and Requirements for Managing the Funds-Postsecondary Carl D. Perkins Career Technical Education Act of 2006

2. Today’s Presenters Minnesota State Colleges and Universities Shannon Kohlman Business Manager, Finance Division Shannon.kohlman@so.mnscu.edu 651-201-1756 Jeralyn JargoDebra Hsu, Ed.D. State Director, Associate Director, Career Technical EducationCareer Technical Education Academic and Student AffairsAcademic and Student Affairs Jeralyn.jargo@so.mnscu.eduJeralyn.jargo@so.mnscu.edu debra.hsu@so.mnscu.edudebra.hsu@so.mnscu.edu 651 201-1650 651-201-1686 2 Judy Bradford Grants Accountant, Finance Division Judy.bradford@so.mnscu.edu 651-201-1770

3. Goals Review accounting procedures designed to address reporting requirements Clarify two different ways college fiscal hosts receive reimbursement—cash draws and invoicing Explain the process for accurately drawing down and receipting the funds expended 3

4. FY16 Perkins CTE Budget for Minnesota 4 October 1, 2015 Allocation A Title 1 Assistance to States 16,684,637.00 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%) 0.1002 * D 1,418,194.15 I Secondary Programs 42% 0.42 * H 595,641.54 J Postsecondary Programs 58% 0.58 * H 822,552.60 K State Leadership (up to 10%) 0.10 * C 1,668,463.70 L Secondary Programs 37% (change from prior yr. 44%) 0.44 * K 617,331.57 M Postsecondary Programs 67% (change from prior yr 56%) 0.56 * K 1,051,132.13 NState Institutions, max of 1% of total award 50,000.00 ONon Traditional Training, must spend $60 - $150K 60,000.00 P PS State Leadership Initiatives M - N - O 941,132.13 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 (50%) change from prior yr. 65% 0.65 * S 396,260.13 U Secondary (50%) change from prior yr 35% 0.35 * S 396,260.13 Total Award D + K + Q 16,684,637.00

5. FY16 Local Consortium Award Allocations FY16 Local Consortium Perkins Plan Approval Notification and Fiscal Information including the award was emailed to the Superintendent and the President at the fiscal host district and college with copies to local consortium fiscal and Perkins contacts upon state approval of the local consortium plan after July 1, 2015. 5

6. Sample Perkins CTE Award Letter 6 Basic and Reserve Allocations Forward Funding

7. Reallocation Award Letter — Coming Later Prior Year Reallocation FIFO 7

8. 2014-2015 Unexpended Consortium Funds Recaptured and Reallocated in FY16 Local consortium contacts will need to review their approved FY16 local application and decide where to make necessary budget changes Fiscal hosts and Perkins contacts will need to submit an adjusted Secondary and Post Secondary Budget to add the reallocated basic and reserve allocation on the FY16 Budget Summary. –www.applyheremn.org/index.dowww.applyheremn.org/index.do 8

9. Sample Consortium Budget Summary www.applyheremn.org/index.do 9

10. 3.1 Local Application Budget Changes Budget changes of $10,000 within a goal must be preapproved by the system office CTE staff-send an email request to the state CTE director. College coordinators must receive written email approval before expenditure is made. –Perkins IV Operational Handbook, Section III Financial Requirements, p. 24-36 www.cte.mnscu.edu/consortia_resources/docume nts/Operational_Handbook_(4-2-10).pdf www.cte.mnscu.edu/consortia_resources/docume nts/Operational_Handbook_(4-2-10).pdf 10

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

12. G/Ls Assigned by the System Office State fiscal year runs from July 1 through June 30 Use of different General Ledgers to ensure full transparency across years: Name FY16 Basic 384161 Reserve 384162 Reallocation Basic384151 Reallocation Reserve384152

13. Chart of Account Set-up: Business Office at the System Office (SO) determines the G/L numbers for the new grant year 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 System Office sends each consortium an Award Notification Letter which contains the assigned G/L numbers

14. Cash Draw Expenditure Reimbursement Process System Office Grant Accountant reviews College expenditures and draws Perkins funds accordingly System Office Grant Accountant enters the SWIFT Deposit by College System Office Grant Accountant notifies each College the amount of the cash draw/SWIFT deposit; College receipts the cash draw Fiscal contact at the Consortium Business Office loads budgets into the accounting systems, in accordance with its awarded grant dollars System Office sends each consortium an Award Notification Letter which contains the Basic and Reserve award amounts College spends budgeted amounts from Perkins designated cost center and G/L numbers

15. Receipting the Cash Draw Revenue should be receipted to a cost center within the G/L where expenditures incurred: Either receipt to each CC where expenditures incurred Or receipt to one CC within the G/L Revenue should be receipted to object code 9401 with a “Y” Flag

16. Cash Draw Considerations The system office will not send any funds in excess of the allocated award amounts or for any funds not in the assigned G/Ls Spending activity is reviewed before each draw to ensure each institution is using the proper G/Ls Draw notifications will reference items that require some kind of adjustment before those expenditures can be reimbursed

17. How State Leadership Dollars are Expended Intra-agency agreement between system office and the receiving college www.finance.mnscu.edu/contracts- purchasing/contracts/forms/index.htmlwww.finance.mnscu.edu/contracts- purchasing/contracts/forms/index.html Intra-agency agreement for Temporary Special Assignment of Personnel www.hr.mnscu.edu/intra- agency_agreement/index.htmlwww.hr.mnscu.edu/intra- agency_agreement/index.html In FY16 the System Office will not be issuing Perkins Agreements. We will use Intra-agency agreements. 17

18. Intra-Agency Agreements Between System Office and College www.finance.mnscu.edu/contracts-purchasing/contracts/forms/index.html www.hr.mnscu.edu/intra-agency_agreement/index.html The college sets up a separate cost center within a NON-PERKINS GL for each intra-agency agreement. To receive reimbursement: College invoices system office for expenditures incurred under the agreement System office pays the college College reduces their expenditures by the amount paid 18

19. Sub-grants G/Ls Sub-grants may be made from one college to another recipient Entity receiving the funds Pays from the source-the Basic G/L, Reserve G/L, or Reallocated G/L Will invoice the fiscal agent for expenses incurred and will receipt the incoming funds by crediting Grant Revenue The entity granting the funds Will pay the invoice debiting Grant Revenue They will be reimbursed through a system office draw receipted as a credit to Grant Revenue

20. Year End Considerations The System Office will perform a year end reconciliation of the Perkin’s grant ensuring that all institutions have been reimbursed for all expenses incurred and that there is no overspending Unspent award money is recaptured and redistributed to either the system office or the consortia, based on Federal requirements. Unspent reallocated funds are returned to the System Office Unspent funds are recaptured and awarded (reallocated) back to the consortia based on a formula

21. Consortium Monitoring The System Office conducts annual audits and monitoring visits at designated consortia Each consortium will be monitored at least once within a three year time frame Included in the monitoring, is a fiscal desk audit of the previous year’s fiscal activity Schedule and procedure: www.cte.mnscbu.edu/directories/portal.html#Criteria www.cte.mnscbu.edu/directories/portal.html#Criteria

22. Perkins CTE Federal Resources Perkins Act P.L. 109-270 www2.ed.gov/policy/sectech/leg/perkins/index.html www2.ed.gov/policy/sectech/leg/perkins/index.html US Department of Education General Administrative Regulations EDGAR –Code of Federal Regulations CFR www2.ed.gov/policy/fund/reg/edgarReg/edgar.html Office of Management and Budget -OMB Circulars www.whitehouse.gov/omb/circulars_default 22

23. Perkins MN Financial Resources Local Consortium Applications www.applyheremn.orgwww.applyheremn.org Perkins IV Operational Handbook-Section III Financial Requirements www.cte.mnscu.edu/consortia_resources/documents/ Operational_Handbook_(4-2-10).pdf p. 24-36 www.cte.mnscu.edu/consortia_resources/documents/ Operational_Handbook_(4-2-10).pdf Monitoring Visits and Financial Audits www.cte.mnscu.edu/directories/portal.html#Criteria www.cte.mnscu.edu/directories/portal.html#Criteria Frequently Asked Questions www.cte.mnscu.edu/index.html (in Quick Links) www.cte.mnscu.edu/index.html 23

24. www.cte.mnscu.edu 24

25. Enter your questions in the “Chat” field OR request to unmute your phone line and ask your questions. We value your questions and feedback. It helps us all do better. Questions! 25

26. MnSCU Career and Technical Education www.cte.mnscu.edu/ www.cte.mnscu.edu/ Webinar Recordings, Presentation PowerPoints www.cte.mnscu.edu/professionaldevelopment/ finance-and-accountability.html MDE Office of Career and College Success http://education.state.mn.us/MDE/StuSuc/CareerEd/index.html Materials

27. CTE Webinar Series www.cte.mnscu.edu/professionaldevelopment/finance-and-accountability.html Previous CTE Perkins Webinars  Perkins 101 for New Consortia Leaders  Accountability I: Secondary and Postsecondary  Accountability II: Secondary Webinar  Accountability II: Postsecondary Webinar  MN Perkins CTE Requirements and Uses of Funds 2015-2016  Treatment of Money Detail-Secondary

28. Perkins Consortium Coordinators Meeting Save the Date! November 4, 2015 Normandale Community College www.cteworksminnesota.org/registration/coordinators-meeting/ 2015 CTE Works! Summit Snapshots From MN Career Technical Education Keynote: Emily Hanford, American RadioWorks November 5, 2015 Sheraton West, Minnetonka, MN www.cteworksminnesota.org Upcoming Events 28

29. Thanks for joining us today! We value your feedback about today’s session. Please click the link in the chat window now to complete the evaluation of this webinar. 29 REMINDER: For secondary participants, Continuing Education Units (CEU’s) will be made available for teachers for this series of webinars (! Hour per webinar). In order to get the necessary certificates you MUST complete the session evaluation.

30. Thank you for all you do for CTE in Minnesota 30