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

Today’s Presenters Minnesota State Colleges and Universities Shannon Kohlman Business Manager Finance Division JoAnn Simser, Ed.D.Debra Hsu, Ed.D. State Director, Associate Director, Career Technical Education Career Technical Education Academic and Student Affairs Academic and Student Affairs Judy Bradford Grants Accountant, Finance Division

Goals Slide 17 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

FY2015 Perkins CTE Budget for Minnesota October 1, 2014 Allocation A Title 1 Assistance to States 16,684, B Title 11 (Tech Prep) Allocation - C Total Award A + B 16,684, D 26 Consortia (85% of total award) 0.85 * C 14,181, E Basic Grant (90% of the 85%) 0.90 * D 12,763, F Secondary Programs 42% 0.42 * E 5,360, G Postsecondary Programs 58% 0.58 * E 7,402, H Reserve (10% of the 85%) * D 1,418, I Secondary Programs 42% 0.42 * H 595, J Postsecondary Programs 58% 0.58 * H 822, K State Leadership (up to 10%) 0.10 * C 1,668, L Secondary Programs 37% (change from prior yr. 44%) 0.44 * K 617, M Postsecondary Programs 67% (change from prior yr 56%) 0.56 * K 1,051, NState Institutions, max of 1% of total award 50, ONon Traditional Training, must spend $60 - $150K 60, P PS State Leadership Initiatives M - N - O 941, Q State Administration (5%) 0.05 * C 834, R Fiscal Agent responsibility--Post-Secondary (5% of 5%) 0.05 * Q 41, S Remainder to be split Q - R 792, T Postsecondary (50%) change from prior yr. 65% 0.65 * S 396, U Secondary (50%) change from prior yr 35% 0.35 * S 396, Total Award D + K + Q 16,684,637.00

FY15 Local Consortium Award Allocations Slide 17 FY15 Local Consortium Perkins Plan Approval Notification and Fiscal Information including the award was ed 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, 2014

Basic and Reserve Allocations Forward Funding Sample Perkins CTE Award Letter

Reallocation Award Letter—coming later Prior Year Reallocation FIFO

Unexpended Consortium Funds Recaptured and Reallocated in FY15 Slide 17 Local consortium contacts will need to review their approved FY15 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 FY15 Budget Summary. –

Sample Consortium Budget Summary

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 request to the state CTE director. College coordinators must receive written approval before expenditure is made. Perkins IV Operational Handbook, Section III Financial Requirements, p

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

GL’s Assigned by System Office State fiscal year runs from July 1 through June 30. Use of different General Ledgers to ensure full transparency across years: Name FY15 Basic Reserve Reallocation Basic Reserve384142

Chart of Account Set-up: Business Office at System Office (SO) assigns four GL numbers 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 SO directs all colleges to use ONLY the assigned GL’s for their accounting systems Business Office at each consortium fiscal contact college loads its budgets in accordance with its awarded grant dollars into its accounting systems

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. College loads budgeted amounts into Perkins Grant G/Ls from Consortium Award Notification letter System Office Grant Accountant communicates new Perkins Grant G/Ls at the start of each fiscal year College spends budgeted amounts from Perkins Grant G/Ls

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

Cash Draw Considerations Grant Accountant will be sending funds for the GL’S that are assigned by the system office. The system office will not send any funds in excess of the allocated amounts.

How State Leadership Dollars are Expended Intra-agency agreement between system office and the receiving college purchasing/contracts/forms/index.htmlhttp:// purchasing/contracts/forms/index.html Intra-agency agreement for Temporary Special Assignment of Personnel- agency_agreement/index.htmlhttp:// agency_agreement/index.html In FY15 the System Office will not be issuing Perkins Agreements. We will use Intra-agency agreements.

Intra-agency agreements between system office and college 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

3.5 Financial Cost Centers 5. Sub-grants GL Sub-grants may be made from one college to another recipient Entity receiving the funds Pays from the source-the Basic GL, Reserve GL, or Reallocated GL Will invoice the fiscal agent for expenses incurred and when received will receipt the funds by crediting Grant Revenue -The entity granting the funds Will pay the invoice and when they pay the invoice they will Debit Grant revenue They will be reimbursed through a system office draw and receipt as a credit to Grant Revenue

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. There will be quarterly monitoring of GL balances to ensure each institution is using the proper GL’s.

Consortium Monitoring System office will conduct fiscal audit and visits as part of the consortium monitoring process at designated consortia in FY15  Schedule and procedure:  Perkins IV Monitoring visits and fiscal audits were conducted at all 26 consortia in FY 10- FY13  Targeted Monitoring visits including desk fiscal audits are being conducted in FY14, FY15 and until Perkins is reauthorized.

Perkins CTE Federal Resources: Perkins Act P.L US Department of Education General Administrative Regulations EDGAR Code of Federal Regulations CFR Office of Management and Budget--OMB Circulars

Perkins MN Financial Resources Local Consortium Applications Perkins IV Operational Handbook-Section III Financial Requirements _Handbook_(4-2-10).pdfhttp:// _Handbook_(4-2-10).pdf p Monitoring Visits and Financial Audits Frequently Asked Questions Home page-right side

FAQs

Time for your questions… 25

A note about CEUs … Teachers can get certificate (1 hour) within two weeks of completing the session evaluation for today’s webinar. NOTE: Since there is no teacher CEU preapproval process, it is up to the local continuing education committee to decide whether or not these hours will apply to your teaching license renewal. 26

MnSCU Career and Technical Education Webinar recordings, presentation PowerPoints finance-and-accountability.html MDE Office of Career and College Success Materials

2014 Fiscal Webinars Perkins CTE Requirements and Uses of Funds - Secondary and Postsecondary Wednesday, September 24, :00-11:00 a.m. Treatment of Money Detail - Secondary Monday, September 29, :00 p.m-3:00 p.m. Treatment of Money Detail - Postsecondary Tuesday, September 30, :00 p.m-3:00 p.m. 28

2014 Accountability Webinars Perkins Accountability I - Secondary & Postsecondary Tuesday, September 23, :00-10:00 a.m. Perkins Accountability II - Postsecondary Tuesday, September 23, :00 a.m-12:00 p.m. Perkins Accountability II - Secondary TBD in October, finance-and-accountability.html

Perkins Consortium Coordinators Meeting November 12, 2014 Normandale Community College coordinators-meeting/ CTE Works! Minnesota Summit on Excellence in Career & Technical Education November 13, 2014 Crowne Plaza Minneapolis West, Plymouth, MN Upcoming Events 30

Today’s Presenters Minnesota State Colleges and Universities Shannon Kohlman Business Manager Finance Division JoAnn Simser, Ed.D.Debra Hsu, Ed.D. State Director, Associate Director, Career Technical Education Career Technical Education Academic and Student Affairs Academic and Student Affairs Judy Bradford Grants Accountant, Finance Division

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