Perkins Fiscal Procedures and Requirements for Managing

the Funds-Postsecondary

Carl D. Perkins Career Technical Education Act of 2006

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Today’s Presenters

Minnesota State Colleges and Universities

Shannon KohlmanBusiness ManagerFinance DivisionShannon.kohlman@so.mnscu.edu651-201-1756

JoAnn Simser, Ed.D. Debra Hsu, Ed.D.

State Director, Associate Director, Career Technical Education Career Technical Education Academic and Student Affairs Academic and Student Affairsjoann.simser@so.mnscu.edu debra.hsu@so.mnscu.edu 651 201-1650 651-201-1686

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Judy BradfordGrants Accountant, Finance DivisionJudy.bradford@so.mnscu.edu651-201-1770

Goals

Slide 17

• Review accounting procedures designed to address reporting requirements

• Clarify two different ways college fiscal hosts receive reimbursement—cash draws and invoicing

• Explain the process for accurately drawing down and receipting the funds expended

FY2015 Perkins CTE Budget for Minnesota

October 1, 2014 Allocation

A Title 1 Assistance to States  

16,684,637.00

B Title 11 (Tech Prep) Allocation  

-

C Total Award A + B

16,684,637.00

   

D 26 Consortia (85% of total award) 0.85 * C   14,181,941.45

E Basic Grant (90% of the 85%) 0.90 * D 12,763,747.31

F Secondary Programs 42% 0.42 * E 5,360,773.87

G Postsecondary Programs 58% 0.58 * E 7,402,973.44

   

H Reserve (10% of the 85%) 0.1002 * D 1,418,194.15

I Secondary Programs 42% 0.42 * H 595,641.54

J Postsecondary Programs 58% 0.58 * H 822,552.60

   

K State Leadership (up to 10%) 0.10 * C   1,668,463.70

L Secondary Programs 37% (change from prior yr. 44%) 0.44 * K 617,331.57

M Postsecondary Programs 67% (change from prior yr 56%) 0.56 * K 1,051,132.13

N State Institutions, max of 1% of total award   50,000.00

O Non Traditional Training, must spend $60 - $150K   60,000.00

P PS State Leadership Initiatives M - N - O 941,132.13

   

Q State Administration (5%) 0.05 * C   834,231.85

R Fiscal Agent responsibility--Post-Secondary (5% of 5%) 0.05 * Q 41,711.59

S Remainder to be split Q - R 792,520.26

T Postsecondary (50%) change from prior yr. 65% 0.65 * S 396,260.13

U Secondary (50%) change from prior yr 35% 0.35 * S 396,260.13

   

  Total Award D + K + Q 16,684,637.00

FY15 Local Consortium Award Allocations

Slide 17

• FY15 Local Consortium Perkins Plan Approval Notification and Fiscal Information including the award was emailed to the Superintendent and the President at the fiscal host district and college with copies to local consortium fiscal and Perkins contacts upon state approval of the local consortium plan after July 1, 2014

Basic and Reserve

Allocations

Forward Funding

Sample Perkins CTE Award Letter

Reallocation Award Letter—coming later

Prior Year Reallocation

FIFO

2013-2014 Unexpended Consortium Funds

Recaptured and Reallocated in FY15

Slide 17

• Local consortium contacts will need to review their approved FY15 local application and decide where to make necessary budget changes

• Fiscal hosts and Perkins contacts will need to submit an adjusted Secondary and Post Secondary Budget to add the reallocated basic and reserve allocation on the FY15 Budget Summary .

– http://www.applyheremn.org/index.do

Sample Consortium Budget Summaryhttp://www.applyheremn.org/index.do

3.1 Local Application Budget Changes

Budget changes of $10,000 within a goal must be preapproved by the system office CTE staff-send an email request to the state CTE director.

College coordinators must receive written email approval before expenditure is made.

• Perkins IV Operational Handbook, Section III Financial Requirements, p. 24-36 http

://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf

Why Multiple GL’s?

• Federal requirements stipulate that each Grant Award activity deliver reports with the following attributes:

Data consistency

Report reproducibility

Clear Audit trail

Ability to create consolidated annual report

GL’s Assigned by System Office

• State fiscal year runs from July 1 through June 30.

• Use of different General Ledgers to ensure full transparency across years:

Name FY15

Basic 384151

Reserve 384152

Reallocation

• Basic 384141

• Reserve 384142

Chart of Account Set-up:

Business Office at System Office (SO)

assigns four GL numbers

For Basic Grant, each fiscal contact college creates a minimum of six cost centers—five cost centers linked to the five goals in their plan and one administration cost center

SO directs all colleges to use ONLY the assigned GL’s for their accounting systems

Business Office at each consortium fiscal contact college loads its budgets in accordance with its awarded grant dollars into its accounting systems

Cash Draw Expenditure Reimbursement Process

System Office Grant Accountant reviews College Expendituresand draws Perkins funds accordingly

System Office Grant Accountant enters the SWIFT Deposit by College

System Office Grant Accountant notifies each College the amount of the cash draw/SWIFT deposit; College receipts the cash draw.

College loads budgeted amounts into Perkins Grant G/Ls from Consortium Award Notification letter

System Office Grant Accountant communicates new Perkins Grant G/Ls at the start of each fiscal year

College spends budgeted amountsfrom Perkins Grant G/Ls

Receipting the Cash Draw

Revenue should be receipted to a cost center within the G/L where expenditures incurred:

• Either receipt to each CC where expenditures incurred

• Or receipt to one CC within the G/L

• Revenue should be receipted to object code 9401 with a “Y” Flag

Cash Draw Considerations

Grant Accountant will be sending funds for the GL’S that are assigned by the system office.

The system office will not send any funds in excess of the allocated amounts.

How State Leadership Dollars are Expended

• Intra-agency agreement between system office and the receiving college

• http://www.finance.mnscu.edu/contracts-purchasing/contracts/forms/index.html

• Intra-agency agreement for Temporary Special Assignment of Personnel-

• http://www.hr.mnscu.edu/intra-agency_agreement/index.html

• In FY15 the System Office will not be issuing Perkins Agreements. We will use Intra-agency agreements.

Intra-agency agreements

between system office and college

http://www.finance.mnscu.edu/contracts-purchasing/contracts/forms/index.html

http://www.hr.mnscu.edu/intra-agency_agreement/index.html

• The college sets up a separate cost center within a NON-

PERKINS GL for each intra-agency agreement.

• To receive reimbursement:

College invoices system office for expenditures

incurred under the agreement

System office pays the college

College reduces their expenditures by the amount

paid

3.5 Financial Cost Centers5. Sub-grants GL

Sub-grants may be made from one college to another recipient• Entity receiving the funds

• Pays from the source-the Basic GL, Reserve GL, or Reallocated GL

• Will invoice the fiscal agent for expenses incurred and when received will receipt the funds by crediting Grant Revenue

- The entity granting the funds• Will pay the invoice and when they pay the invoice

they will Debit Grant revenue• They will be reimbursed through a system office

draw and receipt as a credit to Grant Revenue

Year End Considerations

The System Office will perform a year end reconciliation of the Perkin’s grant ensuring that all institutions have been reimbursed for all expenses incurred and that there is no overspending.

There will be quarterly monitoring of GL balances to ensure each institution is using the proper GL’s.

Consortium Monitoring

System office will conduct fiscal audit and visits as part of the consortium monitoring process at designated consortia in FY15 Schedule and procedure:

http://www.cte.mnscbu.edu/directories/portal.html#Criteria

Perkins IV Monitoring visits and fiscal audits were conducted at all 26 consortia in FY 10- FY13

Targeted Monitoring visits including desk fiscal audits are being conducted in FY14, FY15 and until Perkins is reauthorized.

Perkins CTE Federal Resources:

Perkins Act P.L. 109-270http://

www2.ed.gov/policy/sectech/leg/perkins/index.html

US Department of Education General Administrative Regulations EDGAR • Code of Federal Regulations CFRhttp://www2.ed.gov/policy/fund/reg/edgarReg/

edgar.html

Office of Management and Budget--OMB Circularshttp://www.whitehouse.gov/omb/circulars_default

Perkins MN Financial Resources

Local Consortium Applications• http://www.applyheremn.org

Perkins IV Operational Handbook-Section III Financial Requirements

http://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf p. 24-36

Monitoring Visits and Financial Auditshttp://www.cte.mnscu.edu/directories/portal.html#Criteria

Frequently Asked Questions Home page-right side www.cte.mnscu.edu/index.html

Time for your questions…

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A note about CEUs …

Teachers can get certificate (1 hour) within two weeks of completing the session evaluation for today’s webinar.

NOTE: Since there is no teacher CEU preapproval process, it is up to the local continuing education committee to decide whether or not these hours will apply to your teaching license renewal.

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MnSCU Career and Technical Educationwww.cte.mnscu.edu/

Webinar recordings, presentation PowerPointswww.cte.mnscu.edu/professionaldevelopment/finance-and-accountability.html

MDE Office of Career and College Successhttp://education.state.mn.us/MDE/StuSuc/CareerEd/index.html

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Materials

2014 Fiscal Webinars

Perkins CTE Requirements and Uses of Funds - Secondary and PostsecondaryWednesday, September 24, 201410:00-11:00 a.m.

Treatment of Money Detail - SecondaryMonday, September 29, 20142:00 p.m-3:00 p.m.

Treatment of Money Detail - PostsecondaryTuesday, September 30, 20142:00 p.m-3:00 p.m.

www.cte.mnscu.edu/professionaldevelopment/index.html28

2014 Accountability Webinars

Perkins Accountability I - Secondary & PostsecondaryTuesday, September 23, 20149:00-10:00 a.m.

Perkins Accountability II - PostsecondaryTuesday, September 23, 201411:00 a.m-12:00 p.m.

Perkins Accountability II - SecondaryTBD in October, 2014

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www.cte.mnscu.edu/professionaldevelopment/finance-and-accountability.html

Perkins Consortium Coordinators MeetingNovember 12, 2014Normandale Community College

www.cteworksminnesota.org/registration/coordinators-meeting/

CTE Works! Minnesota Summit on Excellencein Career & Technical Education

November 13, 2014Crowne Plaza Minneapolis West, Plymouth, MNwww.cteworksminnesota.org

Upcoming Events

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Today’s Presenters

Minnesota State Colleges and Universities

Shannon KohlmanBusiness ManagerFinance DivisionShannon.kohlman@so.mnscu.edu651-201-1756

JoAnn Simser, Ed.D. Debra Hsu, Ed.D.

State Director, Associate Director, Career Technical Education Career Technical Education Academic and Student Affairs Academic and Student Affairsjoann.simser@so.mnscu.edu debra.hsu@so.mnscu.edu 651 201-1650 651-201-1686

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Judy BradfordGrants Accountant, Finance DivisionJudy.bradford@so.mnscu.edu651-201-1770

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