1. The ABC’s of WIRED Financial Management June 15, 2006 Grand Valley State University, Fiscal Agent

2. 2 The Demand-Driven Workforce Investment System Presenters: Brenda Lindberg, Assistant Controller Carole Williams, Senior Accountant, Wired Grant Grand Valley State University

3. 3 The Demand-Driven Workforce Investment System Let’s get started… Agenda  Introduction  Federal Financial Rules  Procurement  Q & A

4. 4 The Demand-Driven Workforce Investment System Introduction Role of Grand Valley State University  Fiscal Agent  Hold the funding for the grant  Prepare financial reporting to State/Feds  Financial and compliance monitoring  Direct Contact: Carole Williams

5. 5 The Demand-Driven Workforce Investment System How does the money flow?

6. 6 The Demand-Driven Workforce Investment System Vendor vrs Subrecipient  Vendors –Alliance for Health –Collaborative Strategies –Continuous Quality Improvement Network –IRN, Inc –Lakeshore Advantage –Metrics Reporting –W.E. Upjohn Institute –Work Design Collaborative Sub-Recipients WMSA GVSU GRCC Muskegon/Oceana Consortium

7. 7 The Demand-Driven Workforce Investment System Vendor vrs Subrecipient A Vendor…  Provides goods and services within normal business operations  Provides similar goods and services to many different purchasers  Operates in a competitive environment  Provides services that are ancillary to the federal program  Is not subject to federal compliance rules

8. 8 The Demand-Driven Workforce Investment System Vendor Payment Procedures  Purchase Order provides financial control  Payment issued from vendor generated invoices

9. 9 The Demand-Driven Workforce Investment System Subrecipient vrs vendor A subrecipient …  Uses federal funds to carry out a program  Performs based on federal program objectives  Can make funding decisions – Who? How Much?  Must adhere to applicable federal regulations and Cost Principles  Enters into a binding contractual agreement  Uses detailed Program Budget as financial control for spending  Is subject to grantor audit/monitoring

10. 10 The Demand-Driven Workforce Investment System Rules affecting subrecipients  Cost Principles −Determination of allowable costs  Uniform Administrative Requirements −Guidelines for managing grants  Program regulation  Grant agreement Special Clauses and Conditions  Statement of Work (SOW) Handout 1

11. 11 The Demand-Driven Workforce Investment System  If prior approval requirement exists –BEFORE incurring cost Must be requested in writing Must be approved –May exist in grant agreement  Approval requests to Grant Officer Approval Conditions

12. 12 The Demand-Driven Workforce Investment System  Set of government-wide rules  Applicable to all Federal grants  Define conditions for charging costs –Allowable & unallowable costs –Direct & Indirect costs –Descriptions What are Cost Principles?

13. 13 The Demand-Driven Workforce Investment System Selected Items of Cost  3 types of costs –Allowable –Unallowable –Allowable with conditions  If cost not treated specifically −Principles of necessary and reasonable apply Handout 2

14. 14 The Demand-Driven Workforce Investment System  Labor Reporting –Distribution of salaries and wages to the award will be based on payrolls documented in accordance with generally accepted accounting practices. Time cards or other forms of after-the-fact payroll documents are acceptable confirmation. If employees are chargeable to more than one sponsored agreement or other cost objective, time and effort certification is required Cost Principles (cont)

15. 15 The Demand-Driven Workforce Investment System  To set forth consistent and uniform financial practices  Applicable to all Federal grants  Standards for Financial Management –Accrual Basis of Accounting –Internal Controls –Program Income –Property Standards What are Admin Requirements?

16. 16 The Demand-Driven Workforce Investment System Financial Standards  Accounting records –Identify grant funds –Awards, obligations, assets, liabilities, income, & expenditures –Maintained in accordance with GAAP  Allowable costs –Only allowable costs charged –Only allocable costs charged

17. 17 The Demand-Driven Workforce Investment System Accrued Expenditures  Charges incurred in a given period  Goods and property received  Services performed −Employees, contractors, subgrantees, etc.  Whether or not a cash payment is made  All reports must trace to source documentation

18. 18 The Demand-Driven Workforce Investment System Internal Controls  System to safeguard integrity of funds  Accounting system –Timely recording of expenditures –Qualified personnel –Limited access to records  Separation of duties –Dual signatures for checks –Reconciliations by different staff –Timesheets and payroll approvals

19. 19 The Demand-Driven Workforce Investment System Budget Controls  Accounting records need to track to budget categories −Linking spreadsheets or chart of accounts  Spending within approved line items  Monitor costs and make adjustments  Indication of potential modification needs

20. 20 The Demand-Driven Workforce Investment System  Incorporated by reference –Uniform Administrative Standards 29 CFR Part 96 and 99, Single Audit Act 29 CFR Part 93, Lobbying Certification 29 CFR Part 37, Nondiscrimination 29 CFR Part 98, Debarment and Suspension 29 CFR Part 95, 97 Procurement Grant Agreement

21. 21 The Demand-Driven Workforce Investment System Procurement  Process to obtain goods and services  Full & open competition  Written procedures  System to ensure performance  Cost or price analysis  Awards only to responsible parties  Documentation of award  Settlement process and protest procedures  Use of small businesses, minority-owned & women’s businesses (Part 95)

22. 22 The Demand-Driven Workforce Investment System Procurement Methods  Small Purchase −Federal threshold  Invitation for Bid −Technical services  Competitive Proposal −Often used for service delivery  Non-competitive Proposal −AKA Sole Source

23. 23 The Demand-Driven Workforce Investment System  Special Clauses and Conditions –Sole Source selection requires prior written approval of State of Michigan Grant Officer –Individual Consultant Fees limited to $500 day without prior USDOL approval Procurement Exceptions

24. 24 The Demand-Driven Workforce Investment System  Approved format −Service Need −Lack of competitive market −Cost Justification Sole Source Exception

25. 25 The Demand-Driven Workforce Investment System Financial Reporting  Financial Statement Format  Use accrual basis of accounting  Compares budget to period-to-date  Requires certification of Fiscal Officer  Monthly submittal requested  Serves as payment request  Electronic remittance available Handout 3

26. 26 The Demand-Driven Workforce Investment System Financial Audit Financial records to be available for audit purposes:  Approved budget  Accounting ledgers to support the reported expenses  Bills and invoices for the reported expenses  Labor distribution reports  Time and effort records  Inventory records of property costing $5,000 or more  Program income records  Procurement policies  Sole Source Vendor documentation “This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U. S. Department of Labor’s Employment and Training Administration. The solution was created by the grantee and does not necessary reflect the official position of the U. S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.”

27. 27 The Demand-Driven Workforce Investment System Question & Answer