Budget Development PPT 10 9 2014 Audrey

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
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
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
Receive time and effort
documentation and monitor it is in
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
Develop allocation plan for each site
on how to fund Site Coordinator and
Be aware of allocation plans by site to
assist with budget development and
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
[email protected]
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
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
• 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