Budget Development and Cost Allocation Adult Education and Literacy (AEL) Programs Wendy Kovach Finance Program Specialist Audrey K. Allen Lead Contract Specialist October 9, 2014 AEL Budget Development • Complicated by multiple funding streams o Federal AEFLA funds, EL Civics, and State GR funds all have the same student eligibility criteria o El Civics funds must be used to provide civics education activities (students are a subset of AEFLA enrollment targets therefore EL Civics is considered as a “enhancement” rather than core services) o TANF funds to be used for AEL services to TANF eligible students (core AEL services however to select group of students) o Professional Development funds (State Leadership) separate budget to be used for PD activities only Budget Projections • TWC has requested projection of expenditures for Year 1 • Purpose of this deliverable is to prompt grantees to develop detailed spreadsheets of monthly projected expenditures by funding source and activities • Quarterly benchmarks will be developed from this deliverable – we will request explanation of variance on quarterly basis • Use historical data to assist with determining projection of expenditures per month • End goal of this exercise is for grantees to recognize when spending is off track and adjust in order to fully expend by June 30, 2016 Your budget and how you implement your budget is an indicator of programmatic priorities Possible Roles in Budget Development Grantee Program Director Local Fiscal Office Develop staffing pattern necessary to provide AEL services and based on cost allocation principles (documented staff activities) Develop spreadsheets with salary breakdown to include benefits by funding source for salaries as indicated by Program Director; salary breakdowns coded in Payroll system Ensure that staff members document time and effort (if full time and 100% AEL allocated biannual certification; if part time use time and effort documentation) Receive time and effort documentation and monitor it is in place Submit actual student enrollment to fiscal office for TANF students Journal entry changes to payroll for staff funded with TANF funds Possible Roles in Budget Development Grantee Program Director Local Fiscal Office Assign remainder of budget to nonsalary cost categories (travel, supplies, contractual, etc.) Assist by verifying that budget balances Develop allocation plan for each site on how to fund Site Coordinator and supplies Be aware of allocation plans by site to assist with budget development and maintenance Review expenditures on a monthly basis and inform fiscal office if a budget adjustment is necessary Fiscal office to submit budget adjustment to TWC at aelcontracts@twc.state.tx.us YOUR Budget • Your budget is a planning document – living and breathing document • Allocating costs to each funding stream must be reasonable and based on a plan – burden on a specific funding source must be fair • Costs must be allowable and reasonable • How you implement your budget is more important than the initial plan – auditors will review invoices for allowability and allocation (what really happened) • Adjust your budget as needed – goal being to fully expend TWC Finance Department AEL TANF Services • TANF funds should be cost allocated based on eligible students. For example if all TANF students will be placed in one class then 100% of the teacher's salary would be funded by TANF. • If students that are determined to be eligible for TANF are spread throughout the program then teacher's salaries would be funded based on the projected number of TANF students in their class. A journal entry would be made after each month to adjust allocations per actual student attendance. English Literacy Civics • EL Civics funding should be allocated based on the activity as EL Civics student eligibility requirements are not unique from AEFLA. EL Civics funds should be used to fund AEL Instructors' time spent on Civics Education. • EL Civics is considered an “enhancement” to the core AEL services Subcontractors budgets • Cost allocation principles should be passed down to subcontractor budgets • Grant Recipients must monitor subcontractor budgets and ensure reasonable, allocated correctly and allowable Questions/Comments