11/13/2008 Page 1 MDE and ISD Partnership: Darkening the Dotted Lines Monitoring and Compliance...
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11/13/2008 Page 1 MDE and ISD Partnership: Darkening the Dotted Lines Monitoring and Compliance Training: Financial Management
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Transcript of 11/13/2008 Page 1 MDE and ISD Partnership: Darkening the Dotted Lines Monitoring and Compliance...
11/13/2008 Page 1
MDE and ISD Partnership:
Darkening the Dotted Lines
Monitoring and Compliance
Training: Financial Management
11/13/2008 Page 3
Financial Management
Pre-Training Assessment Survey
11/13/2008 Page 5
Allowable CostsOverview
Reasonable and necessary
Allocable
Legal under state and local law
Conform with federal law and grant terms
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Allowable Costs
Consistently treated
In accordance with GAAP
Not included as match
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Allowable Costs: Regulations and Guidance
General Education Provisions Act (GEPA)
Program statute and regulations
EDGAR (Education Department) General Administrative Regulations) Sub Part C, §80.22 Allowable Costs
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Allowable Costs: Regulations and Guidance
OMB Circular A 87 State, Local, and Indian Tribal Governments
• Section C – Basic Guidelines
• Attachment B – Selected Items of Cost
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Allowable Costs
Helpful Questions for Analyzing Costs:
• Is the proposed cost allowable under the relevant program?
• Is the proposed cost consistent with an approved program plan and budget?
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Allowable Costs
Is the proposed cost consistent with program specific fiscal rules?
Is the proposed cost consistent with EDGAR?
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Allowable Costs:Basis for Allowability
Must follow applicable cost principle to determine reasonableness, allowability, and allocability of all costs
All costs must be:
• Necessary
• Reasonable
• Allocable
• Legal under state and local law
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Allowable Costs:Necessary
A cost is necessary and reasonable if:
• Needed for the performance or administration of the grant
• Follows sound business practices; arms length bargaining
• Reflects fair market prices for comparable goods or services
• Is prudent
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Allowable Costs:Necessary
Practical aspects of ‘necessary’
• Do I really need this to administer my program?
• Is this the minimum amount I need to spend to meet my need?
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Allowable Costs:Reasonable
Practical aspects of ‘reasonable’
• Is this targeted to valid programmatic/administrative considerations?
• Do I have capacity to use what I am purchasing for this program?
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Allowable Costs:Reasonable
• Did I pay a fair rate and can I prove it?
• If this expense were in the local newspaper “Headlines”, would I be comfortable?
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Allowable Costs:Allocable
Practical aspects of ‘reasonable’• Can I prove the program benefited?
Time/effort records Inventory management records
• Can I prove other programs are not benefiting? Ensuring only authorized use Incidental benefit
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Allowable Costs:Adequate
Adequately documented
• Amount of funds under grant
• How the funds are used
• Total cost of the project
• Share of costs provided by other sources
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Allowable Costs:Adequate
Records that show compliance
Records that show performance
Other records to facilitate an effective audit
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Allowable Costs:Compensation for Service
Overview of process
• Estimate how employee will work
• Pay based on estimate
• Reconcile estimates to how actually worked
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Allowable Costs:Compensation for Service
Necessary documentation
• Payroll records
• Time and effort records Semi-annual certifications (single cost
objective)
Personnel Activity Reports (PARs) (multiple cost objectives)
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Allowable Costs:Things to Consider
Maintenance of Effort
Supplement vs. Supplant
In-Kind Requirements
LEA Match (soft and hard match)
Timely Amendments
Document, Document, Document
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Allowable Costs: FAQs
Is there a list of allowable costs that we can look at to analyze a contemplated cost?
No. Although lists are available, they are lists of “allowable, but”, they must meet the other tests spoken to earlier
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Allowable Costs: Other Resources
MDE
• Office of Audits (Auditing Manual http://www.michigan.gov/mde/0,1607,7
-140-6530_9091---,00.html
• MDE – Specific Program Office
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Allowable Costs: Other Resources
OMB Circular A-21, Cost Principles for Educational Institutions
• Part C: Basic Considerations
• Part J: General Provisions for Selected Items of Cost
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Allowable Costs: Other Resources
OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments
• Appendix A: General Principles for Determining Allowable Costs
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Allowable Costs: Other Resources
OMB Circular A-133, Compliance Supplement
OMB Circular A-122, Cost Principles for Non-Profit Organizations
• Attachment B, Selected Items of Cost
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Allowable Costs: More Information
Contacts
• MDE: Specific Program Office
• ISD:
11/13/2008 Page 29
LEA Fiscal Review Tool
Developed by MDE staff responsible for federal and state fund management
Lists major elements reviewed during an audit performed by MDE state auditors
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LEA Fiscal Review Tool
Lists all items contained within the FMS Self-Assessment Survey and reflected in the Professional Development modules
Purpose
• To assist an LEA in the development of its own plan for improvement of its FMS
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ResourcesAll resources identified in this Professional
Development module are available on:
Michigan LearnPort
www.learnport.org
Collaboration Center
Community Room
LEA Financial Management Resources
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Michigan LearnPort
www.learnport.org
A web-based professional development delivery system
• Created in partnership with Michigan Virtual University and the Michigan Department of Education
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Michigan LearnPort
ISDs and LEAs may use Learnport to assist with easy access to financial documents by uploading files to created community rooms and utilizing discussion forums for centralized, online question and answer banks
LearnPort is free to public schools, ISDs, and employees of the state of Michigan
11/13/2008 Page 35
Michigan LearnPort
Offers full professional development record-keeping capabilities
• School employees are provided up-to-date and flexible online professional development to help meet personal and district learning requirements
11/13/2008 Page 36
LearnPort Account Creation
Creating Account Verification E-Mail New Account Login LearnPort Main Page Accessing LEA Financial Management
Resources Room Online Financial Resources Assistance
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Creating Account
Go to learnport.org
Below the login area on the right side of the screen is “New User? CLICK HERE.” Select this link
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Creating Account
On this page you will be prompted to enter a username and password
• Make sure they are easy to remember
Once you enter all the required sign up information you will be sent a confirmation e-mail to the e-mail that you provided
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Verification E-mail
After LearnPort notifies you that you will be sent a confirmation E-mail, check the E-mail address that you used in sign-up after five minutes
You must select the link in the E-mail that LearnPort sends you for your account to be finalized
• You won’t be able to log in without doing this
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New Account Login
Once you have selected the link to verify your account creation you will be able to access Learnport
Return to learnport.org and enter your account information
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LearnPort Main Page
After logging in you will be taken to Learnport’s Main Page
To access the “Community Rooms” where you can create rooms for your own use, or view rooms that are already created you need to select “Collaboration Center” from the left side toolbar
• We will be accessing the LEA Financial Management Resources room created by MDE
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Accessing LEA Financial Management Resources Room
On the next page there will be 5 buttons to choose from
To access LearnPort’s listing of the available community rooms, select “Community Rooms”
The link to the left of this is where you would create your own room for your ISD/LEA if you would like to
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Accessing LEA Financial Management Resources Room
11/13/2008 Page 46
Accessing LEA Financial Management Resources Room
This page will contain a scroll bar in the middle of the screen towards the bottom for scrolling through available rooms
Go down to LEA Financial Management Resources Room and select the link
• The “i” in a circle in this section gives a brief informational explanation of the item it is next to, select the words themselves to go to the community room
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Accessing LEA Financial Management Resources Room
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Online Financial Resources Assistance
The Community Room’s page will appear with several options on the left.
• Select “Content” Within the content area are the reference
documents that will assist with Financial Management procedures
• Some are links to actual documents
• Some are website links to obtain documents
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Online Financial Resources Assistance
This room will be kept up to date with any legislation changes and added necessary documents to complete the LEA’s Financial Management Process.
Feel free to use the “Discussion Forums” section of this community room to ask one another questions and provide answers.
11/13/2008 Page 52
MDE/MAISA Monitoring and Compliance Committee
Becky Rocho, Calhoun ISD, (269) 781-5141 [email protected]
Patty Cantú, MDE, Office of Career and Technical Education, (517) 373-3373
[email protected] Mary Ann Chartrand, MDE, Grants Coordination and
School Support, (517) 373-8862 [email protected]
Terri Lynn Giannola, MDE, Office of Career and Technical Education, (517) 373-4670
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Cash Management Subcommittee
Stan Kogut – ISD ChairIngham ISD(517) 244-1214; [email protected]
Louis Burgess – MDE Co-Chair MDE – Grants Coordination and School
Support(517) 335-3672; [email protected]
Craig Thurman - MDE Co-Chair MDE – Financial Management
(517) 373-2810; [email protected] Tom Armstrong
Wexford-Missaukee ISD(231) 876-2312; [email protected]
11/13/2008 Page 54
Allowable Costs Subcommittee Tony Suszek, ISD Chair
Alpena-Montmorency-Alcona ESD
(989) 354-3101 ext.117; [email protected]
John Cloft – MDE Co-ChairMDE – Office of Special Education-EIS
(517) 335-0475; [email protected] John Andrejack – MDE Co-Chair
MDE – Office of Special Education-EIS
(517) 241-4035; [email protected] Steve Peffers
Marquette-Alger RESA
(906) 226-5101; [email protected] Gary Schafer
MDE – Early Childhood Education
(517) 335-2875; [email protected]
11/13/2008 Page 55
Procurement Subcommittee Tom Bean, ISD Chair
Calhoun ISD
(269)789-2476; [email protected] Dan Hanrahan – MDE Chair
MDE – State Aid and School Finance
(517) 335-0521; [email protected] Gus Bishop
Charlevoix-Emmet Intermediate School District
(231) 547-9947; [email protected] Steve Ezikian
Wayne RESA
(734) 334-1451; [email protected] Cheryl Schubel
MDE- Grants Coordination and School Support
(517) 241-2597; [email protected]
11/13/2008 Page 56
Timekeeping Subcommittee
Stephanie Murray – ISD ChairTraverse Bay Area Intermediate School District(231) 922-6417; [email protected]
Margaret Madigan, MDE Co-ChairMDE - School Improvement/Field Services(517) 373-4588; [email protected]
Kathy Weller – MDE Co-ChairMDE – Office of Audits(517) 335-6858; [email protected]
11/13/2008 Page 57
Timekeeping Subcommittee David Gray
MDE - School Improvement/Field Services(517) 373-0161; [email protected]
Gayla MannMDE - School Improvement/Field Services(517) 373-4009; [email protected]
Pat MeauxMDE - School Improvement/Field Services(517) 373-4212; [email protected]
Harvey VermeeschLapeer County ISD(810) 664-1124; [email protected]
