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FINANCIAL MANAGEMENT (FOR NON-ACCOUNTANTS) Part 1

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Presentation on theme: "FINANCIAL MANAGEMENT (FOR NON-ACCOUNTANTS) Part 1"— Presentation transcript:

1 FINANCIAL MANAGEMENT (FOR NON-ACCOUNTANTS) Part 1
1/11/2019 2018 Western Regional WIOA Section 166/Public Law Native American Employment and Training Programs Tucson, AZ Kerry Jevsevar/WIOA Program Director Council of Three Rivers American Indian Center 412/ x219 FINANCIAL MANAGEMENT (FOR NON-ACCOUNTANTS) Part 1 Fiscal Management Workshop

2 Topics Accounting Cash Management Record Keeping Budgeting Reporting
1/11/2019 Topics Accounting Cash Management Record Keeping Budgeting Reporting Fiscal Management Workshop

3 Accounting Cash Accounting Non-accounting definition
1/11/2019 Accounting Cash Accounting Non-accounting definition Recognizing an expense when a bill is paid, recognizing a grant, revenue or receipt when money is received Type of Cash Accounting—checking account, show cash coming/going

4 Accounting (continued)
1/11/2019 Accounting (continued) Accrual Accounting Non-accounting definition Recognizing an expense when an expense is incurred (example—order placed) and recognizing a revenue or receipt when grant, revenue, or receipt is authorized or received Type of accrual accounting—purchase orders to record expense

5 Accounting (continued)
1/11/2019 Accounting (continued) Cash versus Accrual Cash—easier (single entry), can distort fiscal position Accrual—complex (multi entry), more accurate for projections/forecasting ETA-9130 Report—Accrual basis of reporting, cash basis of reporting receipts and disbursements

6 Cash Management Federal Drawdown System/PMS
1/11/2019 Cash Management Federal Drawdown System/PMS Allows for cash to be in bank account by the next day (if ordered by 5p, ET) Requirement for programs to keep as little cash balance as possible If the program/fiscal office knows the amount of disbursements, exact draw down is possible Take into account internal approvals Fiscal Management Workshop

7 Cash Management (continued)
1/11/2019 Cash Management (continued) Federal Drawdown System/PMS “First-In, First-Out” rule—oldest authorized funds should be drawn down first until entirely exhausted (see attachment PMS DRAWDOWN FIFO EXAMPLE.pdf)

8 Recordkeeping Recordkeeping of expenditures allows for:
1/11/2019 Recordkeeping Recordkeeping of expenditures allows for: Justifying how your program is spending funds Verifying to both internal (boards and councils) and external (funding sources and auditors) the fiscal effectiveness of your program Fiscal Management Workshop

9 Recordkeeping (continued)
1/11/2019 Recordkeeping (continued) Types of recordkeeping (or documentation) Time sheets or time studies Invoices Worksheets that show how expenses are divided Authorization of services Leases Contracts Fiscal Management Workshop

10 1/11/2019 Budgeting Effective budgeting allows for optimal planning, and better use of programmatic funds A budget is only an estimate of how funds will used, but the better the estimate, the more useful the budget will be as a planning and monitoring tool Fiscal Management Workshop

11 Budgeting (continued)
1/11/2019 Budgeting (continued) Methods for budgets Historical Based on past performance data Fine if expense will remain constant for budget period (example—lease agreements) Quasi-actual Based upon projected costs that can be accurately predicted (example—salary with a known work schedule) Fiscal Management Workshop

12 Budgeting (continued)
1/11/2019 Budgeting (continued) Examples of budgeting formulas Personnel/an hourly rate x 8 hours x the number days worked in a program year (see attachment A)FISCAL MGMT TRAINING ATTACHMENT A.doc Classroom Training/number of clients enrolled in school x the program’s contribution (e.g. 5 clients x $500/semester x 2 semesters/program year) Utilities/historical data with an estimate on any increase of gas and electric bills Fiscal Management Workshop

13 Budgeting (continued)
1/11/2019 Budgeting (continued) Categorize all information in line items to conform with the needs of any reports that are required Note any changes from previous program years Compare total expenditures to grant award; note total administrative expenditures to fall within DOL approved guidelines (see attachment B)FISCAL MGMT TRAINING ATTACHMENT B.doc Fiscal Management Workshop

14 Budgeting (continued)
1/11/2019 Budgeting (continued) Budget Revisions Changes in Process For grants that exceed the Simplified Acquisition Threshold of $150,000, ETA requires prior approval if the budget changes exceed 10% of the total grant award. For funds awarded after December 26th, 2014, requests for budget modifications must be submitted in writing at least 30 days before effective date of any change. Replaces previous requirement that all changes in salary and fringe benefits require Grant Officer approval. Fiscal Management Workshop

15 Budgeting (continued)
1/11/2019 Budgeting (continued) Budget Revisions Review whether budget revisions can be contained within the major budget categories of the 424A SF424A-F.pdf Personnel Fringe Benefits Travel Equipment Supplies Contractual Construction Other Indirect Charges

16 Budgeting (continued)
1/11/2019 Budgeting (continued) Budget Revisions Set up worksheet with chart of accounts for the program and two columns—one for budget increases and one for budget decreases WIOA BUDGET REVISION TEMPLATE.xlsx Determine total amount of budget revision; budget increases should match budget decreases Divide the total amount of budget revisions by the total amount of the grant award; if less than 10%, no prior approval required

17 Budgeting (continued)
1/11/2019 Budgeting (continued) Budget Revisions/Considerations Try to program within the budget line items as listed in the SF424A; attempt to do a revision in two stages Stage one: revise budget amounts within the cost categories of the SF424A Stage two: revise budget amounts among the cost categories of the SF424A For Carryover funds for previous years, try to increase areas that would benefit participants most (training, work experience, OJT, support services) as opposed to on-going program expenses (like personnel)

18 QUESTIONS? SITUATIONS? PROBLEMS?
1/11/2019 QUESTIONS? SITUATIONS? PROBLEMS?


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