YouthBuild New Grantee Orientation Financial Reporting November 9, 2012

Learning Objectives Basic financial reporting requirements Describe the difference between obligations and accrued expenditures List where to report expenditure information on the ETA-9130 form Name the financial reporting system used for your grant and how to access system

Basic Financial Reporting Requirements DOL Regulations –29 CFR –29 CFR Grant Agreement Specifications

Cash-based vs. Accrual-based “Mind the Gap” Cash-based accounting –Income recorded when received and expenditures recorded when paid Accrual-based accounting –Income recorded when received and expenditures when the service is received or product delivered

Accrual Reporting Why? Required for ALL ETA programs Provides more reliable data Cash basis understates true spending Failure to report on accrual basis may result in loss of funds

“Definitions” TEGL: Issued May 27, 2011 Definitions of key financial terms –Disbursements, expenditures and obligations

Obligation or Accrual Order placed –Delivery and payment in future Obligation, not accrual –Delivery taken, payment in future Obligation Accrued expenditure Payment & delivery simultaneous –Obligation –Accrued expenditure –Cash outlay Handout

Accrual Accounting What Does It Mean? Transactions are recognized in accounting period in which they occur Revenue is recognized when received or earned Expense is recognized when incurred –May be cash disbursement –May be delivery of goods/services

Cash disbursements Goods and services received but not yet paid for Accrued Expenditures PLUS

Types of Accrued Costs Salaries of employees Training Travel expenses Rental costs

Salaries of Employees Obligation –When salaries are earned Including related items Retirement fund contributions, etc. Accrued expenditure –At the time the salaries are earned –When the services are rendered Simultaneous recording

Training Contracts Single Semester –Contract to obligate funds and pay on an “as training received” basis School Year –Contract to obligate funds for school/program year and pay each semester/quarter cost as training received

Training Contracts Multiple Year Program of Instruction –Contract to obligate this year’s funds for multiple years –Contract to obligate this year’s funds with an option for renewal when next year’s funds become available

Travel Expenses Obligation –Travel actually performed –Ticket purchased –Not issuance of travel authorization Accrued expenditure –Travel actually performed –Ticket purchased Simultaneous recording

Rental Costs Obligations –Lease agreement signed –Amount = maximum payment for termination Not entire lease amount Accrued Expenditure –As service is provided Space is occupied –Maybe paid in advance

What are NOT Accruals? Obligations for which goods or services have NOT been received Orders placed for which goods or services have NOT been received or paid Performance contracts in which benchmarks have NOT been achieved

NOTE ALL accrued expenditures are obligations BUT NOT ALL obligations are accrued expenditures

Type of activity Obligation Accrued Expenditure Good/services received and paid for Good/services received but not paid for Good/services ordered, paid for but not received Good/services ordered but not received and not paid for

Exercise

The ETA 9130 Modified from the SF 425 Required of all ETA programs Handout

ETA-9130 Reporting Basics BASIS - Accrual FREQUENCY – Quarterly DUE – 45 Days after quarter end for ALL ETA Programs

ETA-9130 Reporting Basics Final Quarterly Report – Due 45 days after grant end or expiration of funds (whichever comes first) Closeout Report – Due 90 days after grant end (triggered by DOL acceptance of Final Report) Transmission Method – ETA on-line reporting system

Federal Cash 10.a. Cash Receipts –Tied to PMS drawdowns –PMS draw amount appears above 10a 10.b. Cash Disbursements –checks, cash, advances to subs 10.c. Cash on Hand –10.a. minus 10.b.

10.d. Total Federal Funds Authorized –Grant award Pre-entered for most ETA grants for first reporting quarter 10.e. Federal Share of Expenditures – ACCRUED expenditure Federal Expenditures and Unobligated Balance

10.f. Total Administrative Expenditures –That portion of 10.e.(expenditures) attributable to administrative costs –Follow appropriate guidance on administrative vs. program costs

Administrative Cost Limitations 15% as specified in grant agreement Line item 10.f. identifies administrative portion of total federal expenditures Provides ability to assess compliance with administrative limitation

10.g. Federal Unliquidated Obligations -10.h.(Obligations) minus 10.e. (Expenditures) 10.h.Total Federal Obligations -10.e.(Expend.) plus10.g.(Unliquid. Oblig.) 10.i. Unobligated Balance of Federal funds - 10d.(Authorized) minus 10.h.(Obligations) Federal Expenditures and Unobligated Balance

Recipient Share (Match) 10.j. Total Recipient Share Required –Minimum 25% required 10.k. Recipient Share of Expenditures –Non-DOL/non-Federal expenditures incurred for purposes of subject grant Leveraged resources

Recipient Share 10.l. Recipient Share of Unliquidated Obligations –10.m.(obligatiions) minus10.k (expenditures) 10.m. Total Recipient Obligations –10.k.(expend.) plus 10.l.(unliquid. oblig.) 10.n. Remaining Recipient Share to Be Provided –10.j.(required) minus 10.m.(obligated)

Program Income Reporting 10.o. Total Fed. Program Income Earned –Production of curriculum –Sale of products to non-Federal organizations 10.p. Program Income Expended 10.q. Unexpended Program Income

Program Income ADDITION – for all ETA programs Must be earned as result of allowable grant activity Added to grant to further eligible program objectives

Program Income Accountability NET – Line 10.o. reflects total PI earned minus costs incident to generating it –No cost reported on line 10.e. GROSS – Line 10.o. reflects 100% of PI earned –Costs incident to generating it were charged to the grant on line 10.e.

Additional Expenditure Data Required 11.a. Other Federal Funds Expended Leveraged Resources –DOL – WIA Funds –Dept of Ed Funds –HUD

Data Sources for Financial Reporting Accounting system Accrual worksheets to convert from cash to accrual reporting Subgrantee reports

On-Line Reporting System E-Grants Program-specific software with required data elements provided to grantees Pop-up instructions embedded for quick and easy reference

Accessing Reporting System Follow instructions in Execution letter or as otherwise provided by ETA Provide requested reporting contact information An is sent to primary contact with password and PIN

On-Line Reporting Password issued to access system PIN issued to certify data Instructions link provides information on how to use system

On-Line Reporting Mandatory quarterly submission Modifications can be made requiring re-certification of report After 2 quarters of data are accepted by Federal Project Officer, 1 st of 2 quarters will lock

Data Integrity Grantees are in charge of data Incomplete or erroneous data and/or late submittal of reports impacts ETA’s financial credibility Further funding for ETA programs is contingent upon expending this year’s funds this year

Reporting Contacts Initial Contact – Federal Project Officer On-Line Reporting System - Password and PIN -Shantay Logan: -Avery Malone:

Questions??

Financial Reporting Exercise