21st CCLC Budget Meeting

1
21st CCLC Budget Meeting

• Thompson Building
• Chicago, Illinois
• May 16, 2008

2
General Grant Policies

• Begin date of grant cannot precede the receipt of
  a substantially approvable budget at ISBE.
• Obligation for funds based on amendments cannot
  begin prior to the date of the receipt of a
  substantially approvable amendment request at
  ISBE.

3
Budget Policies, Cont.

• Budget amendments must be received in the agency
  no later than 30 days prior to the end date of
  the grant.
• Regular end date is June 30, but can be extended
  to August 31, if a summer program will still be
  in effect after June 30 of any fiscal year.

4
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
  years audit fee should be completed no later
  than 90 days after the project ending date.

5
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.

6
Supplement vs. Supplant

• Cannot approve expenses required by state law.
• Principals, 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.
• Cannot approve regular expensese.g. rent,
  utilities, etc., that are regular cost of doing
  business.
• Only costs incurred as a result of the grant,
  e.g. additional clerical time, additional phone
  usage, etc.

7
Expenditure Reports

• All required expenditure reports must be received
  by the due dateusually 30 days after the end of
  a quarter. No payments will be made until
  required reports are filed.
• 20 variance per cell
• Cumulative
• Filed electronically
• Funds for projects must either be obligated or
  spent prior to the ending date of the grant.

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Other 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

9
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 your funds, but use wisely

10
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 U.S. Dept of Education and
  sent to ISBE.
• Checks should be accompanied by a statement
  identifying the program and program year from
  which the interest was earned.

11
Grantee Requirements

• A complete 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 and LPA
  contractors 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.

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Where do I find budgets and amendment forms?

• www.isbe.net/21cclc
• Resources
• Budget forms for grants by cohort year, i.e.,
  FY05, 07, 08, or 09

13
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.

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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.

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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)

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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

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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.

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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 2660if
  direct costs here, no indirect costs can be used
  on budgets
• CBOs/FBOs use the state averagenot yet
  determined for FY09
• School districts are computed and can be found in
  the NCLB consolidated applications
• Universities use 8

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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
  grantprorated according to grants being audited

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1000, 100Instructional 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
• Others who may teach or lead activities

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BudgetSalaries, Examples

• 10 teachers (5 math, 5 reading) X 25 hr X 2
  hrs/wk X 28 wks--70,000
• 5 math tutors X 10/hr X 2hrs/wk/28 wks 2800
• 5 recreation leaders X 15 hr X 1hr/wkX28 wk
  2100

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1000, 200Benefits

• Paid to employees of fiscal agent
• Must be listed separately on grant
• Provide total expenses for all employees in each
  category
• TRS (federal is required for teachers)
• Medicare
• Life Insurance
• Medical/Health
• IMRF (non certified staff)

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Benefits Examples

• 200
• 10 teachers TRS
• 5 tutors IMRF
• 5 recreation leaders
• 300-- (Considered employers insurance)
• 5 Rec Leaders Workers comp
• 5 Rec Leaders Unemployment comp

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1000, 300 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

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1000, 400Supplies and Materials

• It is not enough to put supplies and materials
  and list an amount
• Examples must be suppliessupplementary reading
  books, folders, flip charts, art supplies,
  educational software
• No equipment is allowedeven if under 500
• Incentives go heremust put what is to be given
• No t-shirts
• No cash
• Reasonable and feasible based on total amount of
  grant

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2210, Improvement of Instruction (Professional
Development)

• 100--Stipends for those attending professional
  development outside regular work hours
• 100Substitute teachers (if PD held during
  regular work hours)
• 200--Benefits on stipends
• 300--Fees for conferences (list conference if
  known), per diem, hotel expenses, consultant fees
• 400books and journals for those attending
  professional development training

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2230 Assessment and Testing

• 100--Salary paid specifically for someone who
  performs testing
• 200Benefits on salary (always list separately)
• 300Unemployment or workers comp
• 400ACT test prep materials

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2300-- Administrative Costs

• For salaries to be here, they must be for
  administrative positions, e.g. project director,
  grants coordinatorsomeone who is considered an
  administrator by agency
• No teaching salaries, site coordinators, unless
  they are administrators serving as site
  coordinators

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General Administration

• 100Project director--.25 FTE 15,000
• Project coordinator-- .5 FTE15,000
• 200Benefits for these positions (list)
• 300-- Workers comp, unemployment com, postage,
  travel costs between projects, audit (prorated)
• 400Suppliesgeneral office supplies

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2520Fiscal Services

• 100--Bookkeeper----100 hours X 12hr 1200
• 200--Associated benefitsdelineate
• 300--Workers and/or unemployment comp
• 400Bookkeeping suppliesledgers, file folders,
  ink cartridges---500

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2540Operations and Maintenance

• 100--Janitor salary for cleaning after school
  areas
• 200--Associated benefits (list)
• 300Workers comp prorated rent for use of
  building after school (usually CBO/FBO)
• 400General cleaning supplies

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2550--Transportation

• 100--Bus drivers salaries
• 200Benefitslist 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)

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2560Food Services

• 100Cafeteria workers salaries to serve
  snacks
• 2 workersX10/hrX5hrs/wkX 28wks2800
• 200IMRF, insurance
• 300Workers compensation

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2620Planning, Research and Evaluation

• 100if employees internally do this
• 200 and/or 300benefits--list
• 300-contractual for evaluation(if this is paid
  to a public entity, it goes in 4100, 300)

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2900-- Support Services

• Site Coordinators Salaries go here
• 100 Salaries .4FTE15,000
• 200benefitslist each separately with percents
  that apply and total
• 300if applies
• 400General office suppliesfile folders, ink
  cartridges, paper, markers

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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--Benefitslist
• 300Contractual for programs for adults
• Drug awareness counselor
• Museum
• Suppliesart and craft supplies, books on
  parenting, take home reading kits

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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 workers comp in Object 300
• Not delineating supplies
• Categorizing workers salaries in wrong place
• 2210salary here cannot be for time with student
  contact
• 4100, 300not putting payments to government
  entities, LEAs here regardless of service provided

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More Common Errors

• Not having original signatures on budgets and
  grant agreements
• Forgetting to mail hard copy after faxing budgets
  
• Not establishing what end date is requested
• 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

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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)

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Resources

• www.isbe.net/funding/pdf/fiscal_procedure_handbk.p
  df
• Fiscal Policies and Procedures Handbook
• www.isbe.net/21ccc
• budget amendment forms
• continuation applications

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ISBE Contacts

• Chicago Consultant--312/814-2220
• Joe Banks jbanks_at_isbe.net
• Springfield Consultants217/524-4832
• Carol McCue--vmccue_at_isbe.net
• Gail Meisner-- gmeisner_at_isbe.net
• Gary Miller-- gmiller_at_isbe.net
• Secretary
• Pam Bokamp--pbokamp_at_isbe.net

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Questions?