Transcript Slide 1
Financial Management
Young Offender Grants
New Grantee Orientation
November 4-5, 2009
Stacey Jones, Resolution Specialist
OGCM- Division of Policy, Review and Resolution
How Feds View Themselves
How Grantees View Feds
The NEW DOL Grantee
Our Expectations of You:
A program that is designed to focus on
customer needs and to address those
needs
A program that meets the requirements of
Federal law and regulation
A program in compliance with OMB
requirements and Generally Accepted
Accounting Principles.
The NEW DOL Grantee
What you can expect
from us:
Assistance with
regulations
On site technical
assistance and
monitoring
Assistance with fiscal
and programmatic
issues
The Fiscal Program Divide
There is a need for
program operators to be
aware of financial
requirements
There is a need for fiscal
people to be aware of
program requirements
No one gets to opt out
It’s All Very Simple
Written Policies and Sound Business
Practices
Followed Consistently Over Time
With Each Funding Stream Treated
Equally,
With All Costs Being Necessary and
Reasonable
Would be done similarly by a Prudent
Person
Ensuring Proportional Share and
Benefits Received
Rules affecting programs
WIA regulations
Administrative cost
20 CFR 667.220
Uniform administrative requirements
29 CFR Parts 95 and 97
Grant management rules
Cost principles
Determine allowable costs
Uniform Administrative
Requirements
OMB Circulars A-102 & A-110
Codified for DOL grant programs
29 CFR Part 97
29 CFR Part 95
State, local and Indian tribal governments
Everybody else
Slight differences
Follow DOL rules
All Financial Systems
Must adhere to 7 separate standards
1. Financial reporting
System must permit preparation
of Federal financial reports
Must report accruals
2. Accounting records
Adequately identify grant funds
Awards, obligations, assets, liabilities, income and
expenditures
Supported by source documentation
Must be maintained in accordance with GAAP
Financial Standards
3. Internal controls
System to protect integrity of funds
Accountability for cash, property & other assets
4. Budget controls
Comparison of actual expenditures (outlays) to
approved budget plan
Compliance with line item requirements
Prevents overspending
More Financial Standards
5. Allowable costs
Only allowable costs charged
Only allocable costs charged
6. Source documentation
Costs must trace to authorizing document
Proof that costs are allowable & allocable
7. Cash management
System to control cash assets
Cost principles
Set of government wide rules
Cost principles
Types of Costs
Define conditions for charging costs
Allowable
Unallowable
Allowable with conditions (Prior Approval)
If Cost not Treated
Principles of necessary and reasonable apply
OMB Circulars (Cost Principles)
A-87
A-122
Non-profit organizations
A-21
Governments (State, Local, Indian Tribal)
Institutions of Higher Education
48 CFR Part 31
Commercial organizations
Handout
Factors Affecting
Allowability of Costs
Authorized
or not prohibited
Consistent with the Federal rules &
Circulars
Consistent treatment
Conform to limitations/exclusions
contained in the cost principles
Documented
Consistent with GAAP
Allowable Grant Costs
Based on grant program and
Statement of Work:
Curriculum Development
Participant Support Services
Case Manager
Mentoring Program Provider
GED classes
Employment Specialist
Allowable Costs
with Approval Conditions
Equipment
Computer Networks
Vehicles
If prior approval requirement exists
BEFORE incurring cost
Must be requested in writing
Must be approved
Approval requests to Grant Officer
Unallowable Costs
Pre-award
costs
Participant stipends
Monthly pizza parties for participants
Interest, fines & penalties
Contingency reserves
Real property purchase/construction
Exception: ADA Compliance
Unallowable
Alcoholic
beverages
Lobbying
Legal
expenses for prosecution of claims,
ALJ audit appeals or civil actions
Entertainment
Be
careful with employee morale costs.
Prohibited Activities
Employment generating
Specific exceptions
Public service employment
Allowable with conditions under some
programs
Business relocation
Sectarian activities
Equal Treatment in DOL programs for Faith-based and
Community Organizations
PL 109-234
Applies to
All ETA appropriated funds
All grants, contract and interagency agreements
All funds available on June 15, 2006
Limits salary and bonus payments to
individuals
Implementation guidance in TEGL 5-06
2008 limit is $172,200
Who is covered?
Individuals paid by ETA appropriated
funds
Direct recipients and all subrecipients
Direct costs or through an Indirect Cost
Rate
Vendors are not subject to limitation
Administrative Costs
20 CFR 667.220(a)
Not related to direct services
List of specific functions
Either to clients or employers
Unlike traditional definitions
10% limitation
Based on grant award amount
Handout
Indirect Costs
Costs through an approved Indirect Cost
Rate or Cost Allocation Plan
Included on the SF-424A
Reported on the ETA-9130
May be both Administrative & Program
costs
WIA definition applies
Leveraged Resources
Recipient share of costs
Non-Federal funds used for grant purposes
Reported on line 10k on the ETA 9130
Other Federal Funds
Federal Funds available for the project
Reported on line 11a on the ETA 9130
Handout
Financial Reports
ETA 9130
Electronic reporting system
Use of passwords and pins
Quarterly reports
Cumulative from beginning of project
Accrual basis
Due 45 days after quarter end
Final and Closeout Reports
Handout
Financial Reports
Keep in mind—
Accrual basis of reporting
Administrative costs
Breakout on line 10.f
Leveraged resources
Non-Federal resources expended
Lines 10.k-m
Federal resources expended
Line 11.a
Reporting Contacts
Initial
Contact – Federal Project Officer
On-Line
Reporting System - Password and
PIN
-Shantay Logan – [email protected]
-Avery Malone – [email protected]
Additional Resources
Financial Management Training Tutorial
Workforce3One Website
(www.workforce3one.org)
Tutorial Titles:
Introduction to Grant Application Forms
(SF 424 and SF424A)
Introduction to Procurement Requirements
Financial Management Principles
Introduction to Financial Reporting
(ETA -9130)
Questions?