That IS my Job
Money In
Money Out
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Where do we get the money?
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How does it flow to the Regional Boards?
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How is it decided who gets how much?
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What is relevant to IT and Programs?
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Federal Government
◦ US Department of Labor (USDOL)
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Workforce Investment Act (WIA)
Wagner Peyser
Reemployment Assistance
Veteran Assistance
◦ Health and Human Services(HHS)
 Temporary Assistance for Needy Families (TANF)/Welfare Transition
(WTP)
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State Level Opportunities and Earned Incentives
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Other Grant Opportunities and Local Partnerships
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Federal to State to Workforce Boards to Sub Recipients
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Programs in the One Stop Centers managed
by DEO Paid Staff.
◦ Wagner Peyser
◦ Veterans (DVOP and LVER)
◦ Extended Unemployment (EUC)
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Regional Boards Get Pass Thru Funds to Pay
for support of DEO Staff in One Stops.
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Provides Source of Funding Information
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Provides Period of Availability
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Provides Amount of Funding
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Spells out Financial Guidelines
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Spells out Program Guidelines
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Spells out Reporting Guidelines
◦ Admin and Program % Allowable
◦ Purpose of Funds
◦ Training Parameters
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Programs Can’t Exist Without Funds
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Funding Depends on Well Run Programs
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Program Managers Make Decisions for
Participants based on Guidelines
IT Must Be Prepared for Special Needs in Tracking
and Reporting based on NFA Guidelines
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What Rules Do We Have to Play By?
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How Do We Track?
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What Reports Must We Generate?
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Who Watches How We Track and Spend?
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What Controls are Necessary?
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Federal Level OMB Circulars
◦ A-110 Administrative Requirements
◦ A-122 Cost Principles
◦ A-133 Audit
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State Guidelines
◦ NFA Requirements
◦ Prior Approval
◦ State Law
 Food & Beverage
 Travel
 Accountability Act
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Costs must be Reasonable and Necessary
◦ “Prudent Person Rule”
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Costs must be Allocable
◦ Clearly Benefit Program whether direct or indirectly
charged
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Costs must be Allowable
◦ Sometimes Allowable with Conditions (i.e. Prior
Approval)
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It is OK to spend Federal Money on Bonuses
for Employees?
It is OK to Spend Federal Money on Travel to
Mexico?
It is OK to Spend Federal Money for Employee
Morale?
It is OK to Spend Federal Money on
Developing IT Software For Sale?
It is OK to Spend Federal Money on Goods or
Services for Personal Use?
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It is OK to spend Federal Money on Bonuses
for Employees?
8. Compensation for personal services.
J.
Incentive compensation to employees
based on cost reduction, or efficient
performance, suggestion awards, safety awards,
etc. are allowable to the extent that the overall
compensation is determined to be reasonable
and such costs are paid or accrued pursuant to
an agreement entered into in good faith between
the organization and the employees before the
services are rendered, or pursuant to an
established plan followed by the organization so
consistently as to imply, in effect, an agreement
to make such a payment.
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It is OK to Spend Federal Money on Travel to
Mexico?
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51.Travel Costs
e.
Foreign travel. Direct charges for
foreign travel costs are allowable only when
the travel has received prior approval of the
awarding agency. Each separate foreign trip
must receive such approval. For purposes of
this provision, “foreign travel” includes any
travel outside Canada, Mexico, the United
States, and any United States territories and
possessions.
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http://www.doleta.gov/regs/statutes/wialaw.pdf
(e) LIMITATION ON USE OF FUNDS.—No funds
available under this title shall be used for
employment generating activities, economic
development activities, investment in revolving
loan funds, capitalization of businesses,
investment in contract bidding resource
centers, and similar activities that are not directly
related to training for eligible individuals under
this title. No funds available under subtitle B shall
be used for foreign travel.
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It is OK to Spend Federal Money for Employee
Morale?
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13. Employee morale, health, and welfare costs.
a.
The costs of employee information
publications, health or first-aid clinics and/or
infirmaries, recreational activities, employee
counseling services, and any other expenses
incurred in accordance with the organization’s
established practice or custom for the
improvement of working conditions, employeremployee relations, employee morale, and
employee performance are allowable.
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It is OK to Spend Federal Money on
Developing IT Software For Sale?
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Raises more questions
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Developing
Developing
Developing
Developing
Software
Software
Software
Software
for
for
for
for
Local Board Use?
Other Regions?
Public Sale?
Sale to Other Regions?
In this case more Research should be done
prior to any action.
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It is OK to Spend Federal Money on Goods or
Services for Personal Use?
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19. Goods or services for personal use
Costs of goods or services for personal use of
the organization’s employees are unallowable
regardless of whether the cost is reported as
taxable income to the employees.
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It is OK to Spend Money Passed through the State
on Airline Baggage Fees?
It is OK to Spend Money Passed through the State
on Contracts with Board Members?
It is OK to Spend Money Passed through the State
on Training for Participants not Registered in
EFM?
It is OK to Spend Money Passed through the State
on Food for Board Meetings?
It is OK to Spend Money Passed through the State
on Memberships to Chambers of Commerce?
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It is OK to Spend Money Passed through the
State on Airline Baggage Fees?
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Non Accountability Act Item
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Not in State Guidance
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Local Policy Dictates.
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It is OK to Spend Money Passed through the
State on Contracts with Board Members?
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Florida Statutes 445.007 (11)
Contracts with Board Members must be
approved by a two-thirds vote of the board
when a quorum has been established.
Contracts over $25,000 must have prior
approval of WFI.
Contracts under $25,000 must be reported to
DEO & WFI, but do not need prior approval.
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It is OK to Spend Money Passed through the
State on Training for Participants not
Registered in EFM?
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Non Accountability Act Item
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WIA participants must be registered in EFM.
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Welfare Transition participants in training are
not registered in EFM, but reported through
OSST.
Participant training using discretionary funds
may or may not be registered in EFM.
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It is OK to Spend Money Passed through the
State on Food for Board Meetings?
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Florida Statutes 445.007 (10)
State and federal funds provided to the regional
workforce boards may not be used directly or
indirectly to pay for meals, food, or beverages for
board members, staff, or employees of regional
workforce boards, Workforce Florida, Inc., or the
Agency for Workforce Innovation except as expressly
authorized by state law. Preapproved, reasonable,
and necessary per diem allowances and travel
expenses may be reimbursed. Such reimbursement
shall be at the standard travel reimbursement rates
established in s. 112.061 and shall be in compliance
with all applicable federal and state requirements.
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It is OK to Spend Money Passed through the
State on Memberships to Chambers of
Commerce?
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Non Accountability Act Item
OMB A-122
30. Memberships, Subscriptions, and
professional activities
a. Costs of the organization’s
membership in business, technical, and
professional organizations are allowable.
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Local Policies and Procedures can be more
strict with guidelines on how the money is
spent.
◦ Procurement Policy
◦ Contracting
◦ Documentation Necessary
◦ Cost Allocation Plans Followed
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Disallowed Costs May Financially Disable A
Region’s Ability to Provide Services
Public Perception for Misuse of Funds Can
Severely Damage the Workforce System at all
Levels
Knowing the Rules Up Front Will Save Time in
Correcting Errors Later
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Accounting Software
Integrated Systems for Money Spent on
Participants
Integrated Systems for Payroll
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Must Have the Ability to Track Revenue and
Expense by Funding Source
Must be Current
Must be Fast
Must be Backed Up
Must be Secure
Can be Integrated with Multiple Software
Programs
Can be Hosted “In the Clouds”
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Can be used to Track Expenditures by
Participant
◦ Gazelle Software
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Tracks ITA Vouchers
Tracks Support Services
Tracks Debit Cards for Participants
Transfers Automatically to Accounting Software
Can be used for Payroll and Purchase Orders
◦ Microix Software
 Process Payroll and Purchase Orders
 Transfers Automatically to Accounting Software
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Integrated Systems can alert Program Managers when
Participant Budgets are Overspent or Underutilized.
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Integrated Systems support better Communication
between Program and Finance.
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Integrated Systems can save time allowing Case
Managers to serve more Participants.
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Program Case Managers and Program Managers need
to understand how integrated systems with Finance
differ from EFM.
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IT Support for Financial Systems is extremely
important in order to pay the bills on time.
IT Security for Financial Systems is extremely
important since that is a source of
confidential information for both participants
and personnel.
IT needs clear understanding of how Program
and Finance can utilize Integrated Systems
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Financial Statements
◦ Balance Sheet (Snapshot in Time)
◦ Income Statement (Income and Expense)
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OSMIS Reports for DEO
◦ Must Reconcile to Financial Statement
◦ Must Report All Required Categories and Sub
Categories
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Regional Board Requests
◦ Line Item Budget V Actual Analysis
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Assets
◦ Cash
◦ Receivables
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Liabilities
◦ Short Term Liabilities
◦ Long Term Liabilities
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Equity
$100,000
$ 20,000
$120,000
$ 30,000
$ 10,000
$ 40,000
$
80,000
$120,000
Total Assets = Total Liabilities + Equity
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Revenue (Money In)
Expenses (Money Out)
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Salaries
Benefits
Training
Leases
Operations
Travel
$1,000
$100
$ 40
$500
$200
$300
$ 25
$1,165
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Net (Difference)
(- $165)
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So you have a basic understanding of the size
and health of your organization.
So you can see by funding source and by line
item the areas of expenditures that you may
be responsible for.
So your eyes do not glaze over when you are
provided the Financial Reports for your
Region.
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Local and State Board of Directors
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Monitors from DEO and/or USDOL
◦ Fiscal Monitors
◦ Program Monitors
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Independent Auditors
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Monitors (Fiscal and Program)
◦ Review Information on a regular basis to see if Regions
are measuring up to the guidelines set forth at the
Federal and State Level.
◦ Review Policies, Procedures, and Plans to see if Regions
are doing what they say they are.
◦ Look for potential areas of risk
◦ Suggest areas for improvement
◦ Review Audited Financial Statements
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Independent Auditors (Fiscal Only)
◦ Provide an opinion on whether the financial statements
are presented fairly in all material aspects, in accordance
with applicable financial framework in order to enhance
the degree of confidence that intended users can place
in the financial statements.
◦ Audits are conducted in accordance with Generally
Accepted Auditing Standards by Certified Public
Accountants.
◦ Review Monitoring Reports
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FMA is the State Bureau of Financial
Monitoring and Accountability
Fiscal Monitoring is now an on-going process
provided in house by DEO
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Monitoring Teams throughout the State
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What is a Monitoring Tool?
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IT Practices are Monitored along with Fiscal
Monitoring.
IT needs to explain to Monitors and Auditors their
back-up plans for continuing operations of the
organization in the event of a disaster (COOP).
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Program Files are reviewed as part of the Monitoring
and Auditing process and need to be in order.
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Everyone needs to be prepared to explain and back
up their answers to Monitors and Auditors.
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Continuation of Funding could be in Jeopardy
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Budgets
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Strategies
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Internal Controls
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Risk Assessment
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Required by State Law to be Approved by Local
Authority and Provided to DEO.
Forces an Organization to analyze and prioritize.
Provides Expenditure Limits by Line Item by
Funding Source.
Provides a basis for expenditure comparisons all
during the year.
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Best Practice—Management Team to meet
monthly to review spending status.
Review Training Expenditures to meet ITA
spending requirements.
Review Salaries and Benefits to allow for
evaluations, increase in staff or decrease in
staff.
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Review Sub Recipient expenditures to see if
on target.
Project what portion of budget will be over or
under at the end of each fiscal year.
Maximize efficiency. Leave no money on the
table!
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A process designed to provide “Reasonable
Assurance” regarding the achievement of
objectives in these categories:
◦ Effectiveness and Efficiency of Operations
◦ Reliability of Financial Reporting
◦ Compliance with Applicable Laws and Regulations
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OMB Circular A-110 (Administrative) requires
that Non Federal Entities (that would be us)
establish and maintain effective control over
and accountability for all Funds, Property and
Other Assets.
Help ensure that the Direction, Policies,
Procedures, and Practices are in place and
functioning.
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Control Environment
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Risk Assessment
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Control Activities
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Information and Communication
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Monitoring
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ICQ = Internal Control Questionnaire
Management Teams complete the Self
Assessment and turn into the Bureau of Financial
Management & Accountability at DEO.
Monitoring Teams use as guide to test and
assess whether or not Boards are doing what they
say they are doing in the area of Internal
Controls.
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A Best Practice Tool to identify “Who Does
What to Create an Environment where NOT
One Individual is Responsible for
Management or Control of the Organization’s
Assets
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Cash as an example:
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Who Draws from State
Who Receives?
Who Records?
Who Opens the Bank Statement?
Who Reconciles the Bank Statement?
Who Reconciles the Cash Account in the Financials
to the Reconciled Bank Statement?
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Regional Boards Should:
◦ Analyze Risks as a Basis for Determining How Risk
Should be Managed.
◦ Consider the Potential for Fraud in Assessing Risks.
◦ Identify Changes that could have Significant Impact.
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IT and Program are Major Players when it
comes to Spending the Funds.
IT and Program are Major Players in
Strategizing for Efficient IT Systems and
Efficient Training and Business Services.
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IT and Program are Major Players in Making
Sure the Organization’s Assets are Protected.
IT and Program are Major Players in Assessing
Areas that are Vulnerable to High Risk.
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Transparency
◦ Culture of Good Ethics, Honesty, Accountability
◦ Code of Conduct
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Document---Document---Document
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Reconcile
◦ There is always Something to Balance To
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Illegal
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Unethical
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Immoral
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How can Finance Better Communicate Their
Needs to IT and Program?
What Can Finance Do to Better Support IT?
What Can Finance Do to Better Support
Programs?
OMB
Office of Management and Budget
ICQ
Internal Control Questionnaire
NFA
Notice of Funds Available
OSMIS
One Stop Management System
NEG
National Emergency Grant
USDOL
United States Department of Labor
HHS
Health and Human Services
FMA
Financial Monitoring and
Accountability
ITA
Individual Training Account
COOP
Continuity of Operations Plan
FOG
Finance Officers Group
CFDA #
Catalog of Federal Domestic
Assistance Number
PY
Program Year
FY
Fiscal Year
GAAP
Generally Accepted Accounting
Practices
d/b/a
Doing Business As
AP
Accounts Payable
AR
Accounts Receivable
JE
Journal Entry
ETA
Employment and Training
Administration
RFP
Request for Proposal
ITN
Invitation to Negotiate
OIG
Office of the Inspector General
ROI
Return on Investment
FTE
Full Time Equivalent
DOR
Department of Revenue
FEIN
Federal Employer Identification
Number (Tax ID)
AICPA
American Institute of Certified
Public Accountants
GL
General Ledger
GAO
Government Accountability Office

Art Lee-Drewes
◦ 850-651-2315 x 203
◦ alee-drewes@jobsplus02.com

Wes Underwood, M.P.A., PMP®, FCCN
◦ Phone: (850) 245-7419
◦ Wes.Underwood@deo.myflorida.com