1. Happy New Year or should we say, “Happy Year End Closing”

2. Year End Checklist Grant is spent as planned and in it’s entirety Payroll distribution is correct All expenditures are allowable Budget is in line with expenditures All revenue is received or accrued as a receivable All goods are received on or before June 30th All invoices are paid for goods and services received or are accrued as a payable

3. Grant is spent as planned and in it’s entirety It is frowned upon by the granting agency to leave a significant amount of the grant award unspent. This could result in either a decrease in future awards or non-renewal of grant. Spending the grant in a manner other than was described in the application without approval by the granting agency could result in a breach of contract requiring HCC to reimburse agency for revenue already received and/or an audit finding.

4. Payrolldistribution is correct Payroll distribution is correct Review of payroll expenditure reports is very important. Last minute large payroll transfers at year end are a huge flag to auditors. The June Final payroll report is always extracted each year for the auditor. Because salary charges for June 15-30 th are paid in July; NO salary corrections can be done after June 25 th. Charges for salary and benefits should match the effort of the individual. If time and effort reporting is required; budget, expense and T&E report must match.

5. All expenditures are allowable Grant managers are responsible for knowing what expenses are allowable to the grant. Unallowable charges can result in an audit finding. Large purchases at the end of the grant should be avoided (with the exception of grants that cross our fiscal year). There is no defense of how these were necessary purchases that were used on that grants objectives. This is true for large expense transfers also. Payments for meals and catering are unallowable unless specified by the grant.

6. Budget is in line with expenditures During the invoicing process, if over budget or unbudgeted; HCC is unable to recovery the cost. Budget revisions must be completed by the deadline specified in the grant. As stated earlier, the budget has to match Time and Effort. BUDGETEXPENSE

7. *All revenue is received or accrued as a receivable * All invoices are paid for goods and services received, or are accrued as a payable According to GAAP (general accepted accounting principles), revenue received from cost recovery or services rendered must match the same fiscal period as the time the expense was incurred or service was provided.

8. All goods are received on or before June 30th By law we cannot pay for any item or service before it has been received. This is considered forward funding. Even if item was ordered far in advance but has not been received on or before June 30 th, we CANNOT pay for it or accrue as a payable.

9. Still have questions? Purchasing; contact Dianna Thiele, ext. 3210 Grants and Contracts; Consuelo Castro, ext. 3208 Budget; Lisa Peterson, ext. 3249

10. Here’s to a New Year!! And all the grants we have in the future. Perkins 2009-2010