Perkins Fiscal Procedures and
Requirements--Post-Secondary
October 17, 2011
JoAnn Simser
State Director, CTE
System Director,
Perkins Federal Grant
Rekha Dixit
Grants Accountant
Finance Division
JoAnn.Simser@so.mnscu.edu
Rekha.dixit@so.mnscu.edu
Goals
• Review accounting procedures designed to
address reporting requirements
• Clarify the two different ways partners receive
reimbursement—draw downs and invoicing
• Explain the process for accurately drawing down
and receipting the funds expended
Slide 2
FY2012 Perkins IV Budget for Minnesota
October 1, 2011 Allocation
A
Title 1 Assistance to States
B
Title 11 (Tech Prep) Allocation
Total Award
C
D
16,754,034.00
26 Consortia (85% of total award)
0.85 * C
16,754,034.00
14,240,928.90
E
Basic Grant (90% of the 85%)
0.90 * D
12,816,836.01
F
Secondary Programs 42%
0.42 * E
5,383,071.12
G
Postsecondary Programs 58%
0.58 * E
7,433,764.89
0.1002 * D
1,424,092.89
H
Reserve (10% of the 85%)
I
Secondary Programs 42%
0.42 * H
598,119.01
J
Postsecondary Programs 58%
0.58 * H
825,973.88
K
State Leadership (up to 10%)
0.10 * C
1,675,403.40
L
Secondary Programs 44%
0.44 * K
737,177.50
M
Postsecondary Programs 56%
0.56 * K
938,225.90
N
State Institutions, max of 1% of total award
O
Non Traditional Training, must spend $60 - $150K
P
State Leadership Initiatives
Q
R
50,000.00
60,000.00
828,225.90
M-N-O
State Administration (5%)
0.05 * C
Fiscal Agent responsibility--Post-Secondary (5% of 5%)
837,701.70
41,885.09
0.05 * Q
S
Remainder to be split
Q-R
795,816.62
T
Postsecondary (65%)
0.65 * S
517,280.80
U
Secondary (35%)
0.35 * S
278,535.82
Total Award
Slide 3
A+B
D+K+Q
16,754,034.00
FY12 Local Consortium Award
Allocations
•
Slide 4
FY12 Local Consortium Perkins Plan
Notification and Revised Fiscal Award
emailed to the Superintendent and the
President at the fiscal host district and
college with copies to local consortium
fiscal and Perkins contacts Oct. 5, 2011
October
5, 2011
Slide 5
FY12 Local Consortium Budget
Revisions
•
Local consortium contacts will need to review
their approved FY12 local application and
decide where to make necessary budget
reductions
http://www.cte.mnscu.edu/perkinsIV/applications.html
•
Fiscal hosts and Perkins contacts will need to
submit an adjusted Post Secondary Budget
for both basic grant (required and permissive)
and reserve allocation on the FY12 Budget
Summary by October 31, 2011.
http://www.cte.mnscu.edu/forms/index.html
Slide 6
FY12 Budget Summary
Slide 7
Why Multiple GL’s?
•
Federal requirements stipulate that each
Grant Award activity deliverer reports with
the following attributes:
 Data
consistency
 Report
 Clear
Audit trail
 Ability
Slide 8
reproducibility
to create consolidated annual report
GL’s Assigned by Office of the Chancellor
Slide 9
•
State fiscal year runs from July 1 through June 30.
•
Use of different General Ledgers to ensure full
transparency across years:
Name
FY 12
FY 13
Basic
384121
384131
Reserve
384122
384132
Leadership
384123
384133
Recaptured
384124
384134
Sub-Grants
384125
384135
Chart of Account Set-up: Starting FY11
Business Office at Chancellor’s Office
(OOC) assigns five GL numbers
OOC directs all colleges to use
ONLY the assigned five GL’s for
their accounting systems
For Basic Grant, each fiscal
contact college creates a minimum
of six cost centers—five cost
centers linked to the five goals in
their plan and one administration
cost center.
Business Office at each consortium
fiscal contact college loads
Its budgets in accordance with its
awarded grant dollars into its
accounting systems
Slide 10
How OOC Leadership Dollars are Expended
• Intra-agency agreements between OOC
and colleges
• To receive reimbursement:
Colleges invoice OOC for expenditures
incurred under the agreement
OOC reimburses colleges
Colleges reduce their expenditures by the
amount paid
Slide 11
How OOC State Leadership Dollars are
Expended (cont.)
• Perkins IV Agreements for Community
and Technical Colleges
• To receive reimbursement:
Colleges establish a cost center within
leadership G/L and load budget specified
within the agreement
Establish a separate cost center for each
Perkins Agreement
Access funds using the drawdown
expenditure reimbursement process
specified for basic grants
Slide 12
Drawdown Expenditure Reimbursement Process
Business office at the OOC
communicates the GL numbers to the colleges
College receives notification of award specifying
the maximum they are authorized to spend
College starts spending the budgeted amount within the
limits of the grant requirements charged against the
appropriate cost centers for the current year cost centers
OOC grant accountant checks the Perkins GL’s for
all colleges for accumulated expenditures and completes the
draw down from the federal systems to reimburse college
OOC grant accountant enters a Receipt Wire in SWIFT
to ensure the funds are directed to college
OOC grant accountant sends college notice that funds will be deposited
in college’s SWIFT account. College fiscal contact ensures receipt of the
funds into the appropriate Perkins cost center in ISRS.
Slide 13
Receipting the Draw Down
• Revenue should be receipted with in
three business days after notification
from the Grant Accountant.
• Revenue should be receipted to
object code 9401 with a Y Flag
• Revenue should be receipted to the
cost center where the expense is.
Slide 14
Draw Down Considerations
• Grant Accountant will be sending
funds for the GL’S that are assigned
by the Office of the Chancellor.
• The Office of the Chancellor will not
send any funds in excess of the
allocated amounts. Even if there is an
expense in a cost center.
Slide 15
Process for Determining the Draw
Down Amount
• A sample query on Hyperion Brio to
determine a college’s expenditures for
the Grant Accountant to send the funds
to the college-contact Rekha Dixit
– https://data2.mnscu.edu/workspace/
Slide 16
Sample Grant Accountant Draw Down Query
321004
384121
384121
384121
384121
384121
384121
384121
384122
384122
384122
384122
384123
384123
384124
384124
Rc Id Total
300010
Slide 17
Cost Center Total
153310
153311
153312
153313
153314
?
GL Total
153410
153411
153413
GLTotal
GL Total
GL Total
Rc Id Total
000123
Cost Center Total
PROGRAMS OF STUDY
EMPL COMM EDU PARTNERSHIP
SERVICE TO SPECIAL POPS
CONTINUM OF SERVICE
SUSTAINING NEW CONSORTIUM
Administration
Cost Centers Total
PROGRAMS OF STUDY RESERVE
EMPLOYER COMMUNITY ED PARTNERSHIP RESERV
CONTINUUM OF SERV RESERVE
Cost Center Total
(Perkins Agreement) e.g. new program
Cost Center Total
(reallocated-- list goal(s)
Cost Center Total
Rc Id Total
FPK-PAYROLL POSTING ERRORS
15,833.85
0.00
0.00
0.00
0.00
0.00
0.00
2,372.93
1,692.68
7,826.03
14,942.12
538.53
15,833.85
-2,372.93
-1,692.68
-7,826.03
-14,942.12
-538.53
0.00
0.00
0.00
0.00
0.00
27,372.29
418.00
0.00
0.00
418.00
-27,372.29
-418
0
0
-418
15,833.85
0.00
27,790.29
144.87
-11,956.44
-144.87
Year End Considerations
• Please record the expense in the correct
object code as there will be no
opportunity for changes after fiscal year
end close.
• This will result in accurate reporting.
Slide 18
Consortium Monitoring
• OOC developed fiscal audit procedure
• OOC will conduct a fiscal audit as part of
consortium monitoring process and visits
at seven consortia in FY12
 Monitoring visits and fiscal audits at all
consortia in FY 10- FY14
 Schedule and procedure:
http://www.cte.mnscu.edu/directories/portal.
html#Criteria
Slide 19
Perkins IV Operational Handbook
Section III Financial Requirements
• Highlights –items of Particular
Interest
• Frequently Asked Questions
• http://www.cte.mnscu.edu/consortia_resources/documents/O
perational_Handbook_(4-2-10).pdf p. 24-36
Slide 20
3.1 Local Application Budgets Changes
• Budget changes of $10,000 within a goal
must be preapproved by the Office of the
Chancellor-send an email request to
JoAnn Simser with a copy to Denise
Roseland
• College coordinators must receive
written email approval before
expenditure is made.
Slide 21
3.5 Financial Cost Centers
5. Sub-grants GL
• Sub-grants may be made from one college to
another recipient
– Entity granting the funds
• pays from the source-the Basic GL, Reserve GL,
Reallocated GL or Leadership GL.
• reimbursed by OOC.
– Entity receiving the funds
• sets up a cost center in the sub-grant GL for each subgrant and receipts grant funds and expenditures to
that cost center .
• reimbursed by the sub-granting college, not OOC
Slide 22
Perkins Fiscal Webinars
• Overview of Perkins IV Law and Procedures and
Requirements for Fiscal Agents-Part I, October 4
• Overview of Perkins IV Law and Procedures and
Requirements for Fiscal Agents-Part II, October 6
• Perkins Fiscal Procedures and Requirements –
Secondary, October 13
• Perkins Fiscal Procedures and Requirements–
Post-Secondary, October 17
 www.cte.mnscu.edu
Slide 23