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
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Topics
Accounting
Cash Management
Record Keeping
Budgeting
Reporting
Fiscal Management Workshop

3. Accounting Cash Accounting Non-accounting definition
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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)
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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)
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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
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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)
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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:
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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)
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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)
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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)
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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)
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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)
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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)
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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)
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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)
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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?
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QUESTIONS? SITUATIONS? PROBLEMS?