1 WHAT’S NEW? Cash Management & Carryover Presented by: Presented by: Craig Thurman Craig Thurman...

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1 1 WHAT’S NEW? WHAT’S NEW? Cash Management & Cash Management & Carryover Carryover Presented by: Presented by: Craig Thurman Craig Thurman Office of Financial Management Office of Financial Management Margaret Madigan & Mike Radke Margaret Madigan & Mike Radke Office of School Improvement Office of School Improvement

Transcript of 1 WHAT’S NEW? Cash Management & Carryover Presented by: Presented by: Craig Thurman Craig Thurman...

Page 1: 1 WHAT’S NEW? Cash Management & Carryover Presented by: Presented by: Craig Thurman Craig Thurman Office of Financial Management Margaret Madigan & Mike.

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WHAT’S NEW?WHAT’S NEW?Cash Management & Cash Management &

CarryoverCarryover Presented by:Presented by:

Craig ThurmanCraig ThurmanOffice of Financial ManagementOffice of Financial Management

Margaret Madigan & Mike RadkeMargaret Madigan & Mike RadkeOffice of School ImprovementOffice of School Improvement

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Cash ManagementCash Management

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Cash Management RulesCash Management Rules

States are governed by theStates are governed by the

Cash Management Improvement Act Cash Management Improvement Act

(CMIA)(CMIA)

a law that regulates the transfer of funds a law that regulates the transfer of funds

between federal and state government.between federal and state government.

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1. To prevent states from drawing down federal funds before they were needed, thus “profiting”. 2. To prevent the federal government 2. To prevent the federal government from making late payments to states, from making late payments to states, requiring states to advance their own requiring states to advance their own funds, thus getting a free “loan”.funds, thus getting a free “loan”.

The CMIA was enacted primarily for The CMIA was enacted primarily for two reasons:two reasons:

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Cash Management Rules (cont.)Cash Management Rules (cont.)

The CMIA is designed to reduce these The CMIA is designed to reduce these

problems by requiring states to draw problems by requiring states to draw

down funds only when they have an down funds only when they have an

immediate need for cash, while immediate need for cash, while

requiring the federal government to requiring the federal government to

make prompt payments.make prompt payments.

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Cash Management Cash Management

Funding TechniquesFunding Techniques

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Cash Management Funding TechniquesCash Management Funding Techniques

Cash advance. The state draws down Cash advance. The state draws down funds no more that three days in advance funds no more that three days in advance of when it will spend the money.of when it will spend the money.

Reimbursement. The state draws down Reimbursement. The state draws down funds after the state has already paid funds after the state has already paid money for federal program purposes.money for federal program purposes.

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Penalties for violating Penalties for violating CMIACMIA

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Penalties for violating CMIAPenalties for violating CMIA

InterestInterest

High Risk DeterminationHigh Risk Determination

Loss of Federal FundsLoss of Federal Funds

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CMS: What and Why?CMS: What and Why?

Cash Management System (CMS)

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CMS: What and Why?CMS: What and Why?

CMS replaces Grants Cash Management CMS replaces Grants Cash Management and Reporting System (GCMRS)and Reporting System (GCMRS)

-New technology-New technology -Increased functionality-Increased functionality -Better usability-Better usability -Integration to Michigan Electronic Grants System -Integration to Michigan Electronic Grants System (MEGS)(MEGS) -Improved security-Improved security -Fiscal monitoring-Fiscal monitoring

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CMS: What and Why? (cont.)CMS: What and Why? (cont.)

Functions for RecipientsFunctions for Recipients

Request funds and certify fund Request funds and certify fund

requestsrequests Report and certify finalReport and certify final

expendituresexpenditures View dataView data Control accessControl access

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CMS: What and Why? (cont.)CMS: What and Why? (cont.)

Functions for MDEFunctions for MDE

Monitor and control cash Monitor and control cash

disbursementsdisbursements

Authorize disbursements toAuthorize disbursements to

recipients via MAINrecipients via MAIN

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Using CMS: Accessing the WebsiteUsing CMS: Accessing the Website

https://mdoe.state.mi.us/cmshttps://mdoe.state.mi.us/cms

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Security Level Access and Options:Security Level Access and Options: 3 Access Levels: 3 Access Levels:

Number 1-Recipient CertifyNumber 1-Recipient Certify

Request funds for a project (DS-4492)Request funds for a project (DS-4492)

Certify funds requestsCertify funds requests

Report final expenditures (DS-4044)Report final expenditures (DS-4044)

View dataView data

Control accessControl access

Maintain business contactsMaintain business contacts

Certify Final ExpendituresCertify Final Expenditures

Maintain business contactsMaintain business contacts

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Number 2-Recipient EnterNumber 2-Recipient Enter

Request funds for a project (DS-4494)Request funds for a project (DS-4494)

Report final expenditures (DS-4044)Report final expenditures (DS-4044)

View dataView data

Maintain business contactMaintain business contact

3 Access Levels:3 Access Levels:

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3 Access Levels:3 Access Levels:

Number 3-Recipient ViewNumber 3-Recipient View

View dataView data

Maintain business contactMaintain business contact

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Viewing DataViewing Data View your CMS dataView your CMS data

Export to spreadsheetExport to spreadsheet

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Controlling AccessControlling Access

Control users with Control users with Recipient Enter and Recipient Enter and Recipient View Recipient View accessaccess

E-mail Contact? Will E-mail Contact? Will also receive copies also receive copies of automated CMS of automated CMS

e-mailse-mails

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Controlling AccessControlling Access (cont.)(cont.)

Maintaining Business ContactMaintaining Business Contact

Business Contact Business Contact will receive CMS will receive CMS automated e-mail automated e-mail notices:notices:

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Controlling Access (cont.)Controlling Access (cont.)Maintaining Business ContactMaintaining Business Contact

Final Expenditure Report dueFinal Expenditure Report due Final Expenditure Report Final Expenditure Report

delinquent delinquent OverpaymentOverpayment Reopened Final Expenditure Reopened Final Expenditure

Report Report DisbursementsDisbursements

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Contact InformationContact Information

If you experience any problems or have If you experience any problems or have

questions concerning,questions concerning,

Grants call Debby Roberts at (517) 335-0534.Grants call Debby Roberts at (517) 335-0534.

CMS Security call Janet Brown at (517) 335-0550.CMS Security call Janet Brown at (517) 335-0550.

oror

E-mail: E-mail: [email protected]@michigan.gov

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CarryoverCarryover

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Carryover FundsCarryover Funds

Programs included in the Programs included in the

Consolidated ApplicationConsolidated Application

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Allowable CarryoverAllowable Carryover

All programs allow carryover with All programs allow carryover with

two variations:two variations:

Title I, Part ATitle I, Part A

Title I, Part C Title I, Part C

(Migrant Education Program)(Migrant Education Program)

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Title I, Part ATitle I, Part A

Title I, Part ATitle I, Part A

15% carryover limit15% carryover limit

Exception by waiver request onceException by waiver request once

every 3 yearsevery 3 years

Request must be reasonable and Request must be reasonable and necessary and include information necessary and include information on why the carryover limit was on why the carryover limit was exceededexceeded

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Title I, Part CTitle I, Part C

Title I, Part C does not allow any Title I, Part C does not allow any

carryovercarryover

The program requires that funding beThe program requires that funding be

used for services during the periodused for services during the period

that the funds are awardedthat the funds are awarded

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Applying for CarryoverApplying for Carryover

Carryover will be available in MEGSCarryover will be available in MEGS

Fund Requested Fund Requested Final Expenditure Report is certifiedFinal Expenditure Report is certified Balance appears as “carryover” in the Balance appears as “carryover” in the

Consolidated ApplicationConsolidated Application

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Applying for CarryoverApplying for Carryover

Application for carryover is madeApplication for carryover is made

By amending the 2007-08 Consolidated By amending the 2007-08 Consolidated Application in MEGSApplication in MEGS

Carryover no longer requires separateCarryover no longer requires separate budget or applicationbudget or application

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Program ChangesProgram Changes

Federal requirements state that program Federal requirements state that program amendments are needed in the following amendments are needed in the following situations: situations:

Adding staff or changing FTEsAdding staff or changing FTEs

Adding a new function code to the budgetAdding a new function code to the budget

Moving an amount greater than 10% Moving an amount greater than 10% between approved function codesbetween approved function codes

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Program Changes (cont.)Program Changes (cont.)

Federal requirements state that program Federal requirements state that program

amendments are needed in the following amendments are needed in the following

situations: situations:

Accessing total allocations when a lesser Accessing total allocations when a lesser amount was applied for initially, or when amount was applied for initially, or when the allocation is increased; orthe allocation is increased; or

Applying for an additional grant sourceApplying for an additional grant source

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Questions???Questions???

Mike Radke:Mike Radke:

[email protected]@michigan.gov

Margaret Madigan:Margaret Madigan:

[email protected]@michigan.gov

Or call the Office of School Improvement at Or call the Office of School Improvement at 517-373-3921517-373-3921