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Period Of Availability Of Funds PY and FY Funds & Program Income Earned PY and FY Funds & Program Income Earned Availability: WIA Formula and Direct Grants For obligation For obligation For expenditure For expenditureLiquidation Of obligations Of obligations Of accruals Of accruals

KEY TERMINOLOGY Total Funds Authorized minus Obligations equal Unobligated Balance Obligations minus Accrued Expenditures (Cash expenditures plus accruals) Remainder equals Unliquidated Obligations Commitments (placeholder)

Financial Reporting Financial Status Reports (SF 9130) Financial Status Reports (SF 9130) Must be on the “accrual basis” Must be on the “accrual basis” Grant funds and program income Grant funds and program income Entities accounting system Entities accounting system May be maintained on either “cash basis” or “accrual basis” May be maintained on either “cash basis” or “accrual basis”

ETA Funding Flows To: State/Other Grantees Sub #1Sub #2Sub #3

Cash To Accrual Reporting WHY? WHY? In accordance with GAAP In accordance with GAAP Better information to decision makers Better information to decision makers Required by ETA Required by ETA WHEN? WHEN? At least quarterly, but should be continuous At least quarterly, but should be continuous HOW? HOW? Linking spreadsheets (documentation) Linking spreadsheets (documentation)

What is accrual accounting? A method of accounting A method of accounting An entity’s financial position and operating results are measured by the flow of economic resources. An entity’s financial position and operating results are measured by the flow of economic resources. Transactions are recorded in the accounting period in which they occur Transactions are recorded in the accounting period in which they occur Regardless of when the related cash receipts and disbursements take place Regardless of when the related cash receipts and disbursements take place (In accordance with GAAP) (In accordance with GAAP)

Reporting Data Elements Cash Received Cash Received Cash Disbursed Cash Disbursed Program Income (earned/Disbursed) Program Income (earned/Disbursed) Recipient Share Recipient Share Mandatory, leveraged and stand in Mandatory, leveraged and stand in Other Federal Expenditures (not this grant) Other Federal Expenditures (not this grant) Youth In School and Out-of-school Youth In School and Out-of-school 30 percent on out-of-school 30 percent on out-of-school No more than 70 on in-school No more than 70 on in-school

Standard Reporting Data Elements Federal Funds authorized Federal Funds authorized By funding period and funding source, including limitations/other requirements, e.g., admin/in-school and out-of-school By funding period and funding source, including limitations/other requirements, e.g., admin/in-school and out-of-school Federal Obligations Federal Obligations Unobligated Balance Unobligated Balance Unliquidated Obligations Unliquidated Obligations Federal Accrued Expenditures Federal Accrued Expenditures Other Federal Funds Other Federal Funds Federal Real Property Expenditures (states only) Federal Real Property Expenditures (states only) Remarks/Comments Remarks/Comments

Added Emphasis On Reporting on the Accrual Basis of Accounting Cost incurred in the reporting quarter for all services and goods received Cost incurred in the reporting quarter for all services and goods received Examples: Services performed Examples: Services performed Employees, training and other contractors, subgrantees, etc. Employees, training and other contractors, subgrantees, etc. Examples: Other amounts becoming owed Examples: Other amounts becoming owed Indirect costs Indirect costs Unfunded leave – accrue as it is taken during the grant period/contract period Unfunded leave – accrue as it is taken during the grant period/contract period Insurance claims Insurance claims

Accrued Expenditures All accrued costs must be reported All accrued costs must be reported All reports must trace to source documentation All reports must trace to source documentation IF entity has a cash basis accounting system: IF entity has a cash basis accounting system: Linking records must be maintained in accordance with GAAP Linking records must be maintained in accordance with GAAP

Contract Obligations Legally binding Legally binding Offer, acceptance, consideration, made by authorized official Offer, acceptance, consideration, made by authorized official In writing In writing A purpose authorized by law A purpose authorized by law Properly executed Properly executed Before expiration of obligational availability Before expiration of obligational availability Specific goods, real property, work, or services. Specific goods, real property, work, or services.

Contract Obligations Must contain specific description of goods or services to be acquired Must contain specific description of goods or services to be acquired Otherwise, not a recordable obligation Otherwise, not a recordable obligation Training vouchers, travel orders Training vouchers, travel orders Indefinite/variable quantity Indefinite/variable quantity Minimum quantity required Minimum quantity required Variable quantity impact depends Variable quantity impact depends

Recording Obligations Federal requirement Federal requirement Supported by documentation Supported by documentation Recording Recording Evidences the transaction Evidences the transaction Does not create it. Does not create it. Failure to record Failure to record No effect on validity or fiscal year chargeable No effect on validity or fiscal year chargeable

Obligation or Accrual Orders placed Orders placed Delivery of goods or services and payment in future Delivery of goods or services and payment in future Obligation, not accrual Obligation, not accrual Delivery of goods or services taken, payment in future Delivery of goods or services taken, payment in future Obligation Obligation Accrued expenditure Accrued expenditure Payment & delivery simultaneous Payment & delivery simultaneous Obligation Obligation Accrued expenditure Accrued expenditure Cash outlay Cash outlay

Administrative Cost Definition WIA Grants WIA Grants States – no more than 5% States – no more than 5% Locals – 10 % unless some of State 5% is given to locals/Local subs in grant agreement Locals – 10 % unless some of State 5% is given to locals/Local subs in grant agreement Other entities on the list in the definition must track administrative cost Other entities on the list in the definition must track administrative cost Direct Grants as applicable Direct Grants as applicable In grant agreements In grant agreements

The End …for today!!! …for today!!! Thank You everyone!