1. Thompson Building Chicago, Illinois May 16, 2008
21st CCLC Budget Meeting
Thompson Building
Chicago, Illinois
May 16, 2008

2. General Grant Policies
Begin date of grant cannot precede the receipt of a substantially approvable budget at ISBE.
Obligation for funds based on amendments cannot begin prior to the date of the receipt of a substantially approvable amendment request at ISBE.

3. Budget Policies, Cont.
Budget amendments must be received in the agency no later than 30 days prior to the end date of the grant.
Regular end date is June 30, but can be extended to August 31, if a summer program will still be in effect after June 30 of any fiscal year.

4. Grant Activities
Must be completed within the project beginning and ending dates
Obligated funds can only be for projects that will fall within the timeline of the grant.
Liquidation of all obligations, including current year’s audit fee should be completed no later than 90 days after the project ending date.

5. Continuation Applications
No automatic continuation of a grant
Grants received by July 1 receive a July 1 begin date.
After July 1, the begin date is the day the budget is received (with continuation application) at ISBE.
Budget negotiations and corrections may continue after the date of receipt.

6. Supplement vs. Supplant
Cannot approve expenses required by state law.
Principals, superintendents’ salaries and other supervisory personnel required by state law cannot be charged to a grant.
Payroll must be supported by time and effort documents.
Cannot approve regular expenses—e.g. rent, utilities, etc., that are regular cost of “doing business.”
Only costs incurred as a result of the grant, e.g. additional clerical time, additional phone usage, etc.

7. Expenditure Reports
All required expenditure reports must be received by the due date—usually 30 days after the end of a quarter. No payments will be made until required reports are filed.
20% variance per cell
Cumulative
Filed electronically
Funds for projects must either be obligated or spent prior to the ending date of the grant.

8. Other Reasons for Freezing Funds
Cash on hand
Turn in an interim expenditure report to have funds released
Not doing annual audit
Not doing PPICS
Secretary of State informs ISBE of CBO/FBO not being in good standing

9. Unspent Funds
Unspent funds in one year will be considered prepayment on the next fiscal year grant.
Unspent funds in the final year of the grant will be forfeited or returned to ISBE if they have already been sent to the grantee.
Please use all your funds, but use wisely

10. Interest Income
Grantees or sub-grantees can keep interest amounts only up to $100. This interest must go back into the program.
Other interest MUST be returned. Checks should be made payable to U.S. Dept of Education and sent to ISBE.
Checks should be accompanied by a statement identifying the program and program year from which the interest was earned.

11. Grantee Requirements
A complete copy of the approved application, approved budget, and approved amendments must be maintained by the grant recipient.
Continuation applications and budgets must also be maintained.
Documents are reviewed by ISBE and LPA contractors to determine fiscal and program compliance.
EDGAR rules require that records be retained for three years after completing activities pertaining to grant funds or until all outstanding claims have been resolved.

12. Where do I find budgets and amendment forms?
Resources
Budget forms for grants by cohort year, i.e., FY05, 07, 08, or 09

13. Budgets
A budget is a project plan in which ideas are translated into expenses.
No budget when submitted is more than an informed estimate of the costs to be incurred, but careful planning insures financial support is in place when needed.

14. Payment Schedules
Payments are requested in months as needed, based on projected dates of expenditures.
Salaries and fringe benefits are expended in equal intervals and should be projected in this manner.
Supplies, materials, and contracted services should be requested in month in which the expenditure is expected.

15. When is an Amendment Needed?
The scope of the program changes: e.g., summer school is added.
Change in a budget cell of 20% or $1000 (whichever is greater).
Adding a new expenditure (opening a new cell) on the budget
End date is changed (letter or will suffice on this)

16. Expenditure Reports Cash management tool
Transmitted electronically via IWAS
Notification sent via
Anything beyond the 20% variance is not accepted
Failure to submit = funds frozen until report is received

17. Salaries Payroll must be supported with time and attendance records.
Salaries chargeable to more than one grant program or cost objective must be supported by appropriate time and effort (time distribution) records.

18. Indirect Costs
Costs incurred for common or joint objectives that cannot easily and specifically be identified with a particular grant
Payroll
Accounting
Data processing
Functions 2510, 2520, 2570, 2640 and 2660—if direct costs here, no indirect costs can be used on budgets
CBOs/FBOs use the state average—not yet determined for FY09
School districts are computed and can be found in the NCLB consolidated applications
Universities use 8%

19. Cost Allocation Plans
Written plan that states how an entity will accumulate and distribute allowable admin costs in grants and identifies the methods used for distributing
Examples in Fiscal Policy and Procedures Handbook
Audits required yearly and may be charged to grant—prorated according to grants being audited

20. 1000, 100 Instructional Salaries
Positions here MUST spend more than 50% of time in direct instruction of students.
Must be employed by the fiscal agent
Teachers
Teacher aides
Tutors
Others who may teach or lead activities

21. Budget—Salaries, Examples
10 teachers (5 math, 5 reading) X $25 hr X 2 hrs/wk X 28 wks--$70,000
5 math tutors X $10/hr X 2hrs/wk/28 wks = $2800
5 recreation leaders X $15 hr X 1hr/wkX28 wk= $2100

22. 1000, 200—Benefits Paid to employees of fiscal agent
Must be listed separately on grant
Provide total expenses for all employees in each category
TRS (federal is required for teachers)
Medicare
Life Insurance
Medical/Health
IMRF (non certified staff)

23. Benefits Examples 200 300-- (Considered employers’ insurance)
10 teachers TRS
5 tutors IMRF
5 recreation leaders
300-- (Considered employers’ insurance)
5 Rec Leaders Workers’ comp
5 Rec Leaders Unemployment comp

24. 1000, 300— Purchased Services Workers’ comp Unemployment comp
Fees for presentations to students
Consultant fees
Field trip entrance fees
Software license fees
Salaries of those not employed by fiscal agent
Teachers, tutors, etc
Rec Leaders from YMCA

25. 1000, 400— Supplies and Materials
It is not enough to put supplies and materials and list an amount
Examples must be supplies—supplementary reading books, folders, flip charts, art supplies, educational software
No equipment is allowed—even if under $500
Incentives go here—must put what is to be given
No t-shirts
No cash
Reasonable and feasible based on total amount of grant

26. 2210, Improvement of Instruction (Professional Development)
100--Stipends for those attending professional development outside regular work hours
100—Substitute teachers (if PD held during regular work hours)
200--Benefits on stipends
300--Fees for conferences (list conference if known), per diem, hotel expenses, consultant fees
400—books and journals for those attending professional development training

27. 2230 Assessment and Testing
100--Salary paid specifically for someone who performs testing
200—Benefits on salary (always list separately)
300—Unemployment or workers‘ comp
400—ACT test prep materials

28. 2300-- Administrative Costs
For salaries to be here, they must be for administrative positions, e.g. project director, grants coordinator—someone who is considered an administrator by agency
No teaching salaries, site coordinators, unless they are administrators serving as site coordinators

29. General Administration
100—Project director--.25 FTE= $15,000
Project coordinator FTE=$15,000
200—Benefits for these positions (list)
300-- Workers comp, unemployment com, postage, travel costs between projects, audit (prorated)
400—Supplies—general office supplies

30. 2520—Fiscal Services 100--Bookkeeper----100 hours X $12hr =$1200
200--Associated benefits—delineate
300--Workers and/or unemployment comp
400—Bookkeeping supplies—ledgers, file folders, ink cartridges---$500

31. 2540 Operations and Maintenance
100--Janitor salary for cleaning after school areas
200--Associated benefits (list)
300—Workers’ comp; prorated rent for use of building after school (usually CBO/FBO)
400—General cleaning supplies

32. 2550--Transportation 100--Bus drivers’ salaries
200—Benefits—list each out separately
300-- Benefits for own workers or *Contractual bus service
150 days at $200 per day= $30,000
400-- Gas, oil= $4000 (if grantee is paying; usually included in a contract)

33. 2560—Food Services 100—Cafeteria workers salaries to serve snacks
2 workersX$10/hrX5hrs/wkX 28wks=$2800
200—IMRF, insurance
300—Workers’ compensation

34. 2620—Planning, Research and Evaluation
100—if employees internally do this
200 and/or 300—benefits--list
300-contractual for evaluation—(if this is paid to a public entity, it goes in 4100, 300)

35. 2900-- Support Services Site Coordinators Salaries go here
100— Salaries .4FTE=$15,000
200—benefits—list each separately with percents that apply and total
300—if applies
400—General office supplies=file folders, ink cartridges, paper, markers

36. 3000--Community Services All payments related to parents go here
100 salaries paid for adult education by employees of fiscal agent; parent liaison
200/300--Benefits—list
300—Contractual for programs for adults
Drug awareness counselor
Museum
Supplies—art and craft supplies, books on parenting, take home reading kits

37. Common Errors Not enough detail Using zeroes, decimals, etc.
Not working on payment schedule to schedule payments when really needed (leads to excess cash on hand)
Not putting workers’ comp in Object 300
Not delineating supplies
Categorizing workers’ salaries in wrong place
2210—salary here cannot be for time with student contact
4100, 300—not putting payments to government entities, LEAs here regardless of service provided

38. More Common Errors
Not having original signatures on budgets and grant agreements
Forgetting to mail hard copy after faxing budgets
Not establishing what end date is requested
Not submitting an original budget because believing continuation means automatic renewal
Not keeping copies of the final approved budget which may have changes made by ISBE

39. Auditing
Auditors presume supplanting unless you have records to prove otherwise
Nothing paid in previous year with state, private, or local funds (unless that fund source changed)

40. Resources www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdf
Fiscal Policies and Procedures Handbook
budget amendment forms
continuation applications

41. ISBE Contacts Chicago Consultant--312/814-2220
Joe Banks
Springfield Consultants—217/
Carol
Gail Meisner--
Gary Miller--
Secretary
Pam

42. Questions?