1. Perkins Fiscal Procedures and Requirements--Post-Secondary October 17, 2011

2. 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

3. FY2012 Perkins IV Budget for Minnesota

4. FY12 Local Consortium Award Allocations • 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

5. October 5, 2011

6. 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

7. FY12 Budget Summary

8. Why Multiple GL’s? • Federal requirements stipulate that each Grant Award activity deliverer reports with the following attributes: • Data consistency • Report reproducibility • Clear Audit trail • Ability to create consolidated annual report

9. GL’s Assigned by Office of the Chancellor • 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

10. 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

11. 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

12. 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

13. Drawdown Expenditure Reimbursement Process Business office at the OOC communicates the GL numbers to the colleges College receives notification of award specifyingthe maximum they are authorized to spend College starts spending the budgeted amount within thelimits of the grant requirements charged against theappropriate cost centers for the current year cost centers OOC grant accountant checks the Perkins GL’s forall colleges for accumulated expenditures and completes thedraw 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.

14. 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.

15. 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.

16. 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/

17. Sample Grant Accountant Draw Down Query

18. 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.

19. 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

20. Perkins IV Operational HandbookSection III Financial Requirements • Highlights –items of Particular Interest • Frequently Asked Questions • http://www.cte.mnscu.edu/consortia_resources/documents/Operational_Handbook_(4-2-10).pdf p. 24-36

21. 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.

22. 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 sub-grant and receipts grant funds and expenditures to that cost center . • reimbursed by the sub-granting college, not OOC

23. 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