Career Education
Finance Update
MCCTA Spring Conference
February
2015
OMB Uniform Grant Guidance
Effective July 1, 2015, all Federal Perkins CTE
expenditures will be governed by the new OMB Uniform
Grant Guidance.

These changes will result in a complete rewrite of EDGAR
and the OMB Circulars.

The changes will alter the landscape on financial
management systems, inventory controls, procurement, and
accountability.


Focus will be on PERFORMANCE.
Must have written policies and procedures (internal
controls, cash management, procurement, travel).
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2
Federal Grants Management Workshops
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March 17, 2015 – St. Louis
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March 18, 2015 – Kansas City
Michael Brustein, a founding partner of the law firm
of Brustein & Manasevit, and national expert of the
Federal cost, administrative, and audit principles, will
present at each workshop.

There will be an informal Q&A session in the
afternoon of each workshop for the Career Education
administrators regarding the information presented by
Michael Brustein.

3
Perkins Monitoring Findings
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Accounting records don’t agree with payment requests or FERs
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Funds obligated and expended outside of the period of availability
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Funds used for unallowable costs
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Time and effort reporting issues
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Inadequate stipend/extra-duty pay documentation
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Equipment inventory issues
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Inadequate physical inventory documentation
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Consortium agreement issues
4
ePeGs—Perkins Budgets
Budget revisions—the deadline to submit a budget
revision is April 30.

Budgets are estimates—do not have to agree exactly to
how funds are spent.

Review budget and actual expenditures monthly or at
least quarterly—must ensure good fiscal management.

Some budget revisions are not necessary—10%
variance.

Must have funds budgeted in a cell to report an
expenditure.
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5
Tiered Monitoring
Desk Monitoring—review of Perkins Finance SelfAssessment.

For FY2015, this was required for Cohort 1, and the
due date was January 31, 2015.

Access Perkins Finance Self-Assessment through
Web Applications—Tiered Monitoring.

Responses to the self-assessment should be related
to the previous year.

Perkins Finance Self-Assessment will be used to
identify any LEAs not complying with requirements.

6
Tiered Monitoring
On-Site Monitoring—review of financial records using the
Perkins Finance Worksheet.

For FY2015, the on-site reviews were conducted for Cohort
3.

LEAs receiving an on-site monitoring were determined by
reviewing the Perkins Finance Self-Assessments and using a
risk-based calculation.

Perkins Finance Report and LEA Corrective Action Plan
(CAP) will be completed in the Tiered Monitoring System.

Access On-Site Monitoring through Web Applications—
Tiered Monitoring.

7
PS Institutions—Single Audit Report
LEAs that expend $750,000 or more in Federal funds
during a fiscal year must have a single audit conducted.

NEW PROCESS—Single Audit reports for PS Institutions
must be uploaded into the Tiered Monitoring system
(same requirement for school districts and charter
schools).

LEAs must complete the information regarding the CPA
Firm and Auditor in order to upload the Single Audit
report.

The due date this fiscal year was December 31, 2014.
However, next fiscal year, our Office will push this due
date back to probably January 31.

8
FY2016 Perkins Changes
Our Office has provided recommendations instead of mandatory
requirements related to equipment and instructional furniture.


This guidance is effective July 1, 2015.
Equipment: Our Office recommends that all equipment items
purchased with Perkins grant funds be received, installed, and
available for student instruction by December 31 of each year.
However, if the LEA does not meet this deadline, then a justification
statement(s) should be written and kept locally as documentation
to support the exception to this date.

Rationale: It is the expectation of this Office that equipment
items are purchased early in the school year so the students can use
them and benefit from their instruction. Students should have
ready access to up-to-date equipment that enables improved
instruction. The justification statement(s) should address these
areas and also explain why the deadline was not met.

9
FY2016 Perkins Changes (cont.)
Instructional furniture: Our Office recommends that LEAs not
use Perkins grant funds to purchase instructional furniture.
However, if the LEA determines there is a need for this type of
item, then a justification statement(s) should be written and
kept locally as documentation to support the purchase.

Rationale: The Perkins Act states that the funds must be used
to improve the career and technical education programs. In
addition, items purchased with Perkins funds should strengthen
and support academic and technical skill achievement.
Ultimately, the purpose of the Perkins program should be to
develop more fully the academic and career and technical skills
of students enrolled in CTE. The justification statement(s)
should address these areas and also explain why Perkins grant
funds were needed to support this type of cost.

10
FY2016 Perkins Grant
It appears there will be a small decrease in the
Perkins funding for next fiscal year.

The estimated grant amount for Missouri is
$21,416,247 (about a $5,000 decrease from the
current year).

The impact on local allocations is unknown at this
time.
 Change in census data
 State level administration funds—our Office may
have carryover funds to include in the formula
allocation amount

11
Distribution of Perkins Postsecondary Funds
The Perkins Act distributes postsecondary funds based on
the number of career education students who are Pell Grant
recipients and/or receive assistance from the Bureau of
Indian Affairs.

Administrative Memo will be sent in mid March, and LEAs
will have until mid to late April to review and update any of
the data elements used in the formula.


Data must be submitted through MOSIS.

Please review data for completeness and accuracy.
Questions on data, please contact Mike Griggs or Connie
O’Brien in the Office of Data Systems Management.

12
Effectiveness Index Formula
Effectiveness Index Formula (EIF) is an incentive-based funding
system comprised of two components: placement and enrollment.

Administrative Memo will be sent in mid March, and LEAs will
have until mid to late April to review and update any of the data
elements used in the formula.

The formula uses placement data to calculate 90% of the EIF
allocation and enrollment data for the remaining 10%.


Data must be submitted through MOSIS.

Please review data for completeness and accuracy.
Questions on data, please contact Mike Griggs or Connie O’Brien
in the Office of Data Systems Management.

13
Secondary Salary Reimbursement
LEAs receive the maximum approved salary
reimbursement amount that was established in FY2002.

This amount was based on the number of approved CTE
programs and the number of CTE instructors, counselors,
and administrators at that time.


This process will remain the same for FY2015.
The only difference for this fiscal year is that the
maximum approved salary reimbursement amount will
be paid in two payments. Half of the amount was paid in
December, and the remaining half will be paid in the May
or June school payment.

14
Adult/Postsecondary Salary Reimbursement
The Department uses an Adult/Postsecondary
Reporting System to determine the salary
reimbursement for adult and postsecondary programs.


Data must be submitted through MOSIS.
System is now open and LEAs have until March 31,
2015 to submit the data.


Please review data for completeness and accuracy.
Questions on data, please contact Mike Griggs or
Connie O’Brien in the Office of Data Systems
Management.

15
Contact Info
Email: andy.martin@dese.mo.gov
Phone: 573-751-0449
The Department of Elementary and Secondary Education does not discriminate on the basis of race, color, religion, gender, national origin, age, or disability in its programs and activities. Inquiries
related to Department programs and to the location of services, activities, and facilities that are accessible by persons with disabilities may be directed to the Jefferson State Office Building, Office of the
General Counsel, Coordinator – Civil Rights Compliance (Title VI/Title IX/504/ADA/Age Act), 6th Floor, 205 Jefferson Street, P.O. Box 480, Jefferson City, MO 65102-0480; telephone number 573526-4757 or TTY 800-735-2966; email civilrights@dese.mo.gov.