21st CCLC Budget
Webinar
April 2010
TERMINOLOGY
Budget
Summary – restates project plan as
expenses
Budget
Breakdown – itemizes and describes
expenses
Payment
Schedule – reflected monthly expected
costs of budgeted plan
Expenditure
Report – quarterly cumulative
report of actual expenditures, based on approved budget
BUDGETS

A budget is a project plan in which ideas are
translated into expenses.

No budget when submitted is more than an
informed estimate of the costs to be incurred,
but careful planning insures financial support is
in place when needed.
IMPORTANT GRANT GUIDELINES
Project Begin Dates

Start date is dependent on grant receipt at ISBE. Grants
cannot begin prior to JULY 1. Grants received at ISBE after
JULY 1 begin on the day that a substantially approvable
budget is received.

Recipients submitting grants in “substantially approvable”
form can begin obligating funds at the time of receipt by
ISBE without written approval.
 If
in doubt, do not obligate.
IMPORTANT GRANT GUIDELINES
Project End Dates
 In
general, grants should be operated in a
twelve month period, usually July 1 to June 30.
 August
31 end date applicable to projects offering
summer activities past June 30.
 End
date extensions MUST be requested 30 days
prior to the end date of the project.
 Extension
requests done via a budget amendment
GRANT BUDGETS
 Understand
allowable direct costs, forms and
instructions.
 Make
sure important contact information is provided.
-- Region-County-District-Type Code
-- Contact Name, Address, Phone, Fax
-- Use forms that are provided
-- Send with original signatures
Do not “doctor” another form to submit.
COST ALLOCATION
PLANS

Written plan that states how an entity will accumulate
and distribute allowable admin costs in grants and
identifies the methods used for distributing

Examples in Fiscal Policy and Procedures Handbook

Audits required yearly and may be charged to grant—
prorated according to grants being audited
GRANT ACTIVITIES

Grant activities must be completed within the project
beginning and ending dates.

Obligated funds can only be for projects that will fall within
the timeline of the grant.

Liquidation of all obligations, including current year’s audit
fee should be completed no later than 90 days after the
project ending date.
CONTINUATION
APPLICATIONS

No automatic continuation of a grant



Grants received by July 1 receive a July 1 begin date.
After July 1, the begin date is the day the budget is received
(with Continuation Application) at ISBE.
Budget negotiations and corrections may continue after the date
of receipt.

No carryover of funds from previous year.

Unused funds become prepayment on FY11 grant
amount.
SUPPLEMENT
vs.
SUPPLANT

Cannot approve regular expenses—e.g. rent, utilities,
etc., that are regular cost of “doing business.”

Cannot approve expenses required by state law
 Principals’ and superintendents’ salaries and other
supervisory personnel required by state law cannot
be charged to a grant.
 Payroll must be supported by time and effort
documents.
 Only costs incurred as a result of the grant, e.g.
additional clerical time, additional phone usage,
renting a meeting room for professional development.
REASONS FOR
FREEZING FUNDS

Cash on hand
 Turn in an interim expenditure report to have
funds released

Not doing annual audit

Not doing PPICS

Secretary of State informs ISBE of CBO/FBO not
being in good standing
UNSPENT FUNDS

Unspent funds in one year will be considered
prepayment on the next fiscal year grant.

Unspent funds in the final year of the grant will be
forfeited or returned to ISBE if they have already been
sent to the grantee.

Please use all funds but always use wisely.
INTEREST INCOME

Grantees or sub-grantees can keep interest amounts
only up to $100. This interest must go back into the
program.

Other interest MUST be returned. Checks should be
made payable to ISBE which will make payment to
USDE.

Checks should be accompanied by a statement
identifying the program and program year from which
the interest was earned.
GRANTEE
REQUIREMENTS

A completed copy of the approved application, approved
budget, and approved amendments must be
maintained by the grant recipient.

Continuation applications and budgets must also be
maintained.

Documents are reviewed by ISBE staff to determine
fiscal and program compliance.

EDGAR rules require that records be retained for three
years after completing activities pertaining to grant funds
or until all outstanding claims have been resolved.
WHERE DO I FIND BUDGETS &
AMENDMENT FORMS?

www.isbe.net/21cclc

Resources

Budget forms for grants by cohort year,
i.e., FY 07, 08, 09, 10.
PAYMENT SCHEDULES

Payments are requested in months as needed, based on
projected dates of expenditures.

Salaries and fringe benefits are expended in equal
intervals and should be projected in this manner.

Supplies, materials, and contracted services should be
requested in month in which the expenditure is expected.
PAYMENT SCHEDULES
Regular Term:
July 1, 2010
thru
June 30, 2011
When do
activities begin?
July
August
September
October
November
December
January
February
March
April
May
June
PAYMENT SCHEDULES
Extended Term:
July 1, 2010
thru
August 31, 2011
When do
activities begin?
July 10
August 10
September
October
November
December
January
February
March
April
May
June
July 11
August 11
COMMON PAYMENT SCHEDULES
July 10
August 10
September
October
November
December
January
February
March
April
May
June
July 11
August 11
Total
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$120,000
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,570
$8,590
PROPER PAYMENT SCHEDULES
July 10
August 10
September
October
November
December
January
February
March
April
May
June
July 11
August 11
Total
$
0
$
0
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$30,000
$120,000
$
0
$
0
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$120,000
$
0
$
0
$ 5,000
$ 5,000
$ 30,000
$ 30,000
$ 5,000
$ 5,000
$ 10,000
$ 5,000
$ 10,000
$ 5,000
$ 5,000
$ 5,000
$120,000
HOW FISCAL YEARS CAN OVERLAP
July 10
August 10
September
October
November
December
January
February
March
April
May
June
July 11
August 11
Total
$
0
$
0
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$ 120,000
July 10
August 10
September
October
November
December
January
February
March
April
May
June
July 11
August 11
Total
$ 5,000
$ 2,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$ 3,000
$ 120,000
21st CENTURY GRANT
PROCESS
Final Payment/
Prepayment
Determined
Final
Expenditures
Thru: 6/30
Due: 07/31
Final
Payment
July – submit
your original
application
September
Payment
May
Payment
April
Payment
Expenditures
Thru: 03/31
Due: 04/30
Initial
Applications/
Revised Budgets/
Amendments
October
Payment
GRANT
PROCESS
November
Payment
December
Payment
March
Payment
February
Payment
Expenditures
Thru: 12/31
Due: 01/31
January
Payment
Amendment (if applicable)
WHEN IS AN
AMENDMENT NEEDED?

The scope of the program changes: e.g., summer
school is added.

Change in a budget cell of 20% or $1000
(whichever is greater).

Adding a new expenditure (opening a new cell) on the
budget

End date is changed (letter or e-mail will suffice on this)
EXPENDITURE REPORTS

Cash management tool

Transmitted electronically via IWAS

Notification sent via e-mail

Anything beyond the 20% variance is not accepted

Failure to submit = funds frozen until report is received
GRANT EXPENDITURES
 Expenditure
reports should always reflect cumulative
expenditures.
 Expenditures
can vary by 20% or $1,000, whichever is the
greater, on a budgeted cell.
 Excess
cash will be withheld from future scheduled
payment(s).
A
project is FINAL when the end date equals the
expenditure through date with zero obligations. If an
obligation is reported, the entity will have 90 days from the
end date of the project to liquidate the obligation.
PREVIOUS PROBLEMS
•
Final expenditure report overstated or understated
•
Final expenditure report NOT cumulative
•
Sub-grant expenditures not monitored
•
Expenditure reports do not agree with the amounts
recorded in the district’s general ledger
•
Grant funds were not segregated (i.e., federal grant
funds were used to cover local operating
expenditures)
ELECTRONIC SERVICES
 www.isbe.net
 Financial
Reimbursement Information
System Inquiry (FRIS)
 Electronic
Expenditure Report System
IWAS HELP DESK 217-558-3600
NAVIGATING ISBE.net
FUNDING & DISBURSEMENTS
POLICY/PROCEDURES/
REQUIREMENTS
HIGHLIGHTS
Fiscal Policies/Procedures/Requirements
Indirect Cost Rates

Pages 16 and 17
Cost

Allocation Plans
Pages 18 and 19
Supplementing

vs. Supplanting
Page 33
www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdf
NAVIGATING ISBE.net
FRIS INQUIRY
NAVIGATING ISBE.net
ELECTRONIC
EXPENDITURE REPORTS
Important Notes

Limitation of administrative costs
Function 2300
 Limited to 5% of the total budget
 Be sure to categorize correctly

allocation
Food Costs—
 allowed
for meetings that include family members and
that take place during regular mealtime hours.


Maximum allowable is $10 per person
Not for meals for computer classes, GED classes, etc.
BUDGET REVIEW
Professional Development
 Funds
must be included for a minimum of three state
level workshops
 If
there are no funds listed in budget, we will look for
explanation in the Continuation Application as to how
the PD will be paid for
Evaluation

Funds must included in budget for
evaluation purposes, function 2620.
 Internal
 External

If no funds allocated, we will be asking for
explanation.
OUT OF STATE TRAVEL

50 or more miles from Illinois’s borders

No out of state travel without prior permission from ISBE

Use form online at www.isbe.net/21cclc

Do not schedule airfare, hotel, or any nonrefundable
expenses until permission is received

Travel to USDE sponsored Summer Institute does not
need preapproval
NON ALLOWABLE COSTS

Overnight or out of state travel for students

Daily snacks/meals for students

Food for professional development events, faculty, staff,
or administrative meetings or for staff in any setting

Clothing (materials for sewing classes are allowable)
NON ALLOWABLE COSTS

Equipment

Incentives of cash, clothing, or others that are
unreasonable in proportion to the amount of funding

Furniture

Staff events that include retreats, lock-ins, or similar types
of events
NON ALLOWABLE COSTS

Field trips that are purely recreational

Membership dues to organizations, societies

Promotional or marketing items
 Pens, caps, totes, mugs, etc.

Capital improvements or construction, remodeling, or
renovation

Classes for credit recovery that were previously offered
and paid for by district or other funds sources

Supplanting
SALARIES

Payroll must be supported with time and attendance
records.

Salaries chargeable to more than one grant program or
cost objective must be supported by appropriate time
and effort (time distribution) records.

People who work on multiple grants must have time prorated among the grants.
INDIRECT COSTS

Costs incurred for common or joint objectives that cannot
easily and specifically be identified with a particular grant
 Payroll
 Accounting
 Data processing

Functions 2510, 2520, 2570, 2640 and 2660—if direct
costs here, no indirect costs can be used on budgets
INDIRECT COSTS
CONTINUED

CBOs/FBOs use the state average—not yet determined
for FY11

School districts can use the amounts in their NCLB
consolidated applications (after October 1)


If want to use indirect cost rate, will have to amend later
Universities use 8%
1000, 100
INSTRUCTIONAL SALARIES

Positions here MUST spend more than 50% of time in
direct instruction of students.

Must be employed by the fiscal agent
 Teachers
 Teacher aides
 Tutors
 Recreational leaders
 Others who may teach or lead activities
BUDGET
SALARIES EXAMPLES

10 teachers (5 math, 5 reading) X $25 hr X 2
hrs/wk X 28 wks=$14,000

5 math tutors X $10/hr X 2hrs/wk/28 wks =
$2800

5 recreation leaders X $15 hr X 1hr/wkX28 wk=
$2100
1000, 200 - BENEFITS

Paid to employees of fiscal agent

Must be listed separately on grant

Provide total expenses for all employees in each category-examples
 TRS (federal is required for teachers) in agencies that
are required reporters e.g. school districts (outside CPS)
and ROEs
 Medicare
 Life Insurance
 Medical/Health
 IMRF (non certified staff)
BENEFIT EXAMPLES

200
 10
teachers TRS =
 5 tutors IMRF =
 5 recreation leaders IMRF=

300 (Considered employers’ insurance)
5
Rec Leaders Workers’ comp=
 5 Rec Leaders Unemployment comp=
1000, 300 - INSTRUCTIONAL
PURCHASED SERVICES

Workers’ comp/Unemployment comp

Fees for presentations to students

Consultant fees/field trip entrance fees

Software license fees

Salaries of those not employed by fiscal agent
 Teachers, tutors, etc
 Rec Leaders from YMCA
1000, 400 - INSTRUCTIONAL
SUPPLIES & MATERIALS

It is not enough to put supplies and materials and list a
total amount

Correct examples--supplementary reading books,
folders, flip charts, art supplies, educational software

No equipment is allowed, even if under $500

Incentives go here—must put what is to be given
 No t-shirts
 No cash
 Reasonable and feasible based on total amount of
grant
2210 - IMPROVEMENT
OF INSTRUCTION

100 - Stipends for those attending professional
development outside regular work hours

100 - Substitute teachers (if PD held during regular work
hours)

200 - Benefits on stipends, sub pay

300 - Fees for conferences, per diem, hotel expenses,
consultant fees

400 - Books and journals for those attending
professional development training
2230 - ASSESSMENT & TESTING

100 - Salary paid specifically for someone who
performs testing

200 - Benefits on salary (always list separately)

300 - Unemployment or workers‘ comp

400 - ACT test prep materials, pre-post tests
2300 - ADMINISTRATVE COSTS

For salaries to be here, they must be for
administrative positions, e.g. project director,
grants coordinator—someone who is considered
an administrator by agency or school district

No teaching salaries or site coordinators

Limited to 5% of total budget
GENERAL
ADMINISTRATION

100 - Project director -.25 FTE = $15,000
Project coordinator - .5 FTE = $15,000

200 - Benefits for these positions (list)

300 - Workers comp, unemployment com, postage,
travel costs between projects, audit (prorated)

400 – Supplies - general office supplies such as folders,
ink cartridges, etc.
2520 - FISCAL SERVICES

100 - Bookkeeper - 100 hours X $12 hr =$1200

200 - Associated benefits – delineate

300 - Workers and/or unemployment comp

300 - contacted fiscal services

400 - Bookkeeping supplies - ledgers, file folders, ink
cartridges - $500
2540 - OPERATIONS &
MAINTENANCE

100 - Janitor salary for cleaning after school areas
beyond regular hours of job

200 - Associated benefits (list)

300 - Workers’ comp; prorated rent for use of building
after school (usually CBO/FBO)

400 - General cleaning supplies

NO RENT/MORTGAGE payment on buildings owned
or occupied by grantee
2550 - TRANSPORTATION

100 - Bus drivers’ salaries

200 - Benefits—list each out separately

300 - Benefits for own workers or
*Contractual bus service
 150 days at $200 per day= $30,000

400 - Gas, oil = $4000 (if grantee is paying; usually
included in a contract)
2560 - FOOD SERVICES

100—Cafeteria workers salaries to serve snacks
 2 workersX$10/hrX5hrs/wkX 28wks=$2800

200—IMRF, insurance

300—Workers’ compensation

For snacks/food programs see Nutrition
website, www.isbe.net/nutrition
2620 - PLANNING,
RESEARCH & EVALUATION

100--if employees internally do this
 2 employees X 100 hours X $50/hr =$10,000

200 and/or 300 – benefits - list

300 - contractual for evaluation

if this is paid to a public entity, it goes in 4000, 300
2900 - SUPPORT SERVICES
Site Coordinators Salaries go here

100 - Salaries .4FTE = $15,000 or if hourly provide as in
other examples

200 – benefits - list each separately with percents that
apply and total

300 - if applies

400 - General office supplies = file folders, ink cartridges,
paper, markers
3000 - COMMUNITY SERVICES

All payments related to parents go here

100 - salaries paid for adult education by employees of fiscal
agent; parent liaison

200/300 – Benefits - list

300 - Contractual for programs for adults
 Drug awareness counselor
 Museum program

400 – Supplies - art and craft supplies, books on parenting,
take home reading kits. Food for parent nights—2 events X
100 people X$10 = $2000
COMMON ERRORS

Not enough detail

Using zeroes, decimals, etc.

Not working on payment schedule to schedule payments
when really needed (leads to excess cash on hand)

Not putting wc/uc in Object 300

Not delineating supplies

Categorizing workers’ salaries in wrong place

2210 - salary here cannot be for time with student contact
MORE COMMON ERRORS

4000, 300 - not putting payments to government entities,
LEAs here regardless of service provided

Not having original signatures on budgets and grant
agreements

Forgetting to mail hard copy after faxing budgets

Not establishing the proper end date

Not submitting an original budget because believing
continuation means automatic renewal

Not keeping copies of the final approved budget which
may have changes made by ISBE
AUDITING

Auditors presume supplanting unless you have records
to prove otherwise

Nothing paid in previous year with state, private, or local
funds (unless that fund source changed)
RESOURCES

www.isbe.net/funding/pdf/fiscal_procedure
_handbk.pdf
 Fiscal
Policies and Procedures Handbook
www.isbe.net/21ccc
Budget Amendment forms
Continuation Applications
Out of State Travel Forms
FUNDING &
DISBURSEMENT SERVICES
DIVISION ADMINISTRATOR: TIM IMLER
SUPERVISOR: MARY MORRISON (State/Federal
Grants)
FISCAL CONSULTANTS: KIM LEWIS & SALLY CRAY
EXPENDITURE REPORTS: ERNIE BARROW
DIVISION PHONE NUMBER: 217.782.5256
E-mail Addresses:
timler@isbe.net
bmorriso@isbe.net
klewis@isbe.net
scray@isbe.net
ebarrow@isbe.net
INNOVATION AND
IMPROVEMENT DIVISION

Division Administrator—217/524-4832


Division Supervisor


Marci Johnson marjohns@isbe.net
Springfield Consultants
 Gail Meisner gmeisner@isbe.net


Monique Chism mchism@isbe.net
Gary Miller
gmiller@isbe.net
Support Staff
 Pam Bokamp pbokamp@isbe.net
QUESTIONS?