1. Fiscal Updates Presented by: Janice Hay, Finance Coordinator and Jan Stanley, State Title I Director Title I Directors’ Conference March 2009

2. Time and Effort

3. If federal funds are used for salaries “time distribution records” must be kept Must demonstrate that employees paid with federal funds actually worked on the specific federal program

4. Time and Effort (Cont’d) Type of documentation depends on the number of “cost objectives” the employee worked on These cost objectives must be connected to the employee’s salary source What is a cost objective? –A specific grant award, or other category of costs, that requires the grantee to track specific cost information

5. Time and Effort (Cont’d) If an employee works on a single cost objective: –Semi-Annual Certification –Signed by employee and supervisor every six months –Example: “I hereby certify that for the period January 1, 2009 through June 30, 2009 one-hundred percent (100%) of my time and effort was spent on Title I Administration.”

6. Time and Effort (Cont’d) If an employee works on multiple cost objectives: –Personnel Activity Report (PAR) –After-the-fact-record –At least monthly –Total activity for which the employee is compensated –Signed and dated by employee (supervisor may also sign)

7. Time and Effort (Cont’d) Quarterly comparisons of actual costs to budgeted distributions –If a variance of 10% or greater exists Adjust expenditures to reflect costs of the actual time reported. In order to minimize future differences, adjust estimated distributions for future payrolls to activity performed in the previous quarter. This should help minimize the difference in actual wages paid to time recorded. –If difference is less than 10%, may make adjustment annually

8. Time and Effort (Cont’d) EXAMPLE 1EXAMPLE 2 Hours as Recorded on Time and Effort Records 220 Hours Title I 300 Hours IDEA 350 Hours Title I 170 Hours IDEA % of Total 42%58%67%33% Adjustment of expenditures for prior quarter required NOYES Amount of quarterly adjustment required None (Annual adjustment is necessary when variance <10%) 17% of salary expense for the quarter (or $1,912.50) should be moved from IDEA to Title I Adjustment of budget for future payments required NOYES Amount of adjustment required NO 67% of $11,250 = $7,537.50 33% of $11,250 = $3,712.50 PERIOD: January-March, 2009 SALARY: $45,000 annually/$11,250 per quarter (Includes fringe) TOTAL HOURS FOR PERIOD: 520 (Includes holidays and/or leave hours taken) BUDGETED AND PAID:50% Title I and 50% IDEA ($5,625 Title I and $5,625 IDEA)

9. Time and Effort (Cont’d) Time and Effort Procedures –Must identify how to report holidays and/or leave time taken Whether or not hours to be recorded on time and effort sheets If recorded, whether hours should be divided in accordance with budgeted percentages EXAMPLE (Paid 50% Title I and 50% IDEA) –Worked 4 hours doing Title I work and took 4 hours AL »Time and Effort to reflect 6 hours Title I and 2 hrs IDEA OR Do not record hours for holiday and leave time taken but must be sure to exclude from total hours when calculating percentage of time worked for each cost objective EXAMPLE (Paid 50% Title I and 50% IDEA) –Worked 4 hours doing Title I work and took 4 hours AL »Time and Effort sheet to reflect 4 hours Title I and 0 hours IDEA

10. Time and Effort-Example of PAR Day of Month Number of hours worked by funding source Number of hours leave/holiday by funding source Total Hours Title IIDEATitle I SL/AL/ H IDEA SL/AL/ H 1402SL2 8 262008 3004H4H8 4448 5…31 Totals 1466632 % of Total 43%19% Total% Title I 62% Total % IDEA 38% Employee Name: ______________________________ Month:_______________ Year:___________ Employee Signature:_______________________Supervisor Signature__________________________

11. Time and Effort-Example of PAR Day of Month Number of hours worked by funding source Annual/Sick/Holiday Hours (Do Not Include in Total Hours) Total Hours Title IIDEA 1224 AL4 2008 H0 32608 44408 Etc. Totals 81220 % of Total 40%60% This example calculates the variance based on hours actually worked. If a variance occurs and the prior quarter’s payroll records require an adjustment, the adjustment will be made to all wages paid, so the adjustment will then also align the payment of leave taken to correspond to hours worked. Employee Name: ______________________________ Month:________________ Year:___________ Employee Signature:_____________________ Supervisor Signature:_____________________________

12. EDGAR §80.32(C)-(E) Inventory Management

13. Inventory Management-EDGAR §80.32(c)-(e) Equipment –Federal definition of Equipment (OMB Circular A-122) Tangible personal property Useful life of more than one year Acquisition cost of $5,000 or more –For purposes of maintaining Title I Inventory As above, except –Useful life of more than one year, regardless of acquisition cost »PDAs, Computers, Cell phones, Copiers, Projectors, Etc.

14. Inventory Management-Equipment Must have adequate controls in place to account for: –Location of equipment –Custody of equipment –Security of equipment LEA should have procedures in place and documentation to track and account for the location and assignment of equipment at all times –A tracking system must be implemented for requesting and signing out equipment to be used off-site

15. Equipment (Cont’d) Property records –Description, quantity, serial number, model number or other ID, acquisition date, cost, percent of federal participation and grant award year, location, use and condition, and disposition data (to include date of disposal and sale price) –All blanks are to be completed Must be updated immediately when new equipment is purchased Physical inventory –At least every two years (LEA may require annually) Name of person and date of physical inventory is to be recorded Evidence that the physical inventory is reconciled to inventory records maintained at the LEA Control system to prevent loss, damage & theft –All incidents must be investigated

16. Equipment (Cont’d) Must protect against unauthorized use –May use for other projects as long as use is incidental and does not interfere with authorized use When property is no longer needed, must follow disposition rules –Transfer to another federal program –Over $5,000 – Keep or sell, but must pay a share based on the percentage of federal ED participation at initial acquisition –Under $5,000 – May keep, sell, or dispose of it with no obligation to ED When property is lost, damaged or stolen –Follow procedures in the WVDE Procedures Manual Capital Asset System (Send copy of documentation to SEA)

17. Changes for Set Aside Page and Budget Spreadsheets

18. LEA Set Aside Professional development for LEA improvement Is the LEA identified for improvement? Required 10% Set Aside) (Y/N) If “Y” is entered the 10% is calculated automatically. How much of this set aside will be allocated to the schools? This is automatically entered into public school ranking page on a per pupil amount. Amount of this set aside to be budgeted at the LEA New line added for FY 2010 Information should be budgeted in the professional development section of the LEA budget.

19. LEA Set Aside – Reserve Amount The option to set aside a portion of the Title I-Part A funding as a reserve amount is no longer available. The total amount of the grant award must be budgeted. This line item has been removed from the set aside sheet. This will enable the Financial Data Report developed by the Office of School Finance to properly calculate the correct percentage of funds available for carry-over for the period ending September. This report can also be used to track budget expenditures and can be accessed at: http://wveis.k12.wv.us/surveys/genledger_projects_years.cfm

20. OPEB-Other Post Employee Benefits Budget $1,090.00 minimum for each federally funded staff member Add to the optional set aside section under “other set asides (specify) In parentheses, indicate the amount and OPEB. Add the money projected for this expense to the LEA budget under project code 11111 and object code 211. In parentheses, indicate OPEB.

21. Contracting for Professional Services Contracts should be structured to ensure all activities supported with federal funds are clearly allowable under the Title I program. At a minimum, the contract should include: –Description of services, including the location at which the services will be provided –Number of days of contracted service –Total cost of all services described in the agreement –The federal grant project code matching the county budget from which the services will be paid –Appropriate signatures from both entities.

22. Contracting for Professional Services (Cont’d) Time and Effort Records are not required for contractual employees Any consultant services financed with Title I funds must be provided in only the Title I schools in the LEA. –To maintain as much control as possible over federal funds, it is important for the LEA to develop clear, transparent and detailed contracts that clearly delineate why services are reasonable and allowable under the Title I program.

23. Contracting for Professional Services (Cont’d) Contractual professional services should be budgeted in the Title I district set aside and listed in the LEA budget under the professional development section. –Program function code 12213 –Object code 341-other professional Contractual professional services purchased from an educational services agency (RESA) for professional development should be budgeted in the Title I district set aside and listed in the LEA budget under the professional development section. – program function code 12213 – object code 591- services purchased from an educational services agency

24. Things to Remember for Budgeting Ensure the public school ranking page and the set aside are correct before entering information in the budgets. Red tab for the composite budget calculates automatically-do not enter information in this section. Remember to complete the yellow tab for budget summary. Part A and Part B Follow the guidelines in the document “Developing a Title I Budget”–updated February 2009 Avoid changing the preset formulas in the set aside and budget spreadsheets.