REGION 7 ESC HEAD START BUSINESS MANAGERS MEETING October 13, 2010

1. REGION 7 ESC HEAD START BUSINESS MANAGERS MEETINGOctober 13, 2010 Copyright 2010 by Region 7 Education Service Center. All rights reserved.

2. AGENDA – October 13, 2010 Welcome - Elizabeth Abernethy Introductions – Dr. Mark Wagstaff Audit/Financial Processes - Carrie Holland Cooperative Agreement - Dr. Mark Wagstaff Reimbursement Process - Dr. Mark Wagstaff Q/A – Region 7 ESC/Head Start staff Dismissal Copyright 2010 by Region 7 Education Service Center. All rights reserved. This material may not be reproduced, displayed, modified or distributed without the express prior written permission of the copyright holder. For permission, contact copyright@esc7.net.

3. Introductions Elizabeth Abernethy – Executive Director Region 7 Ronnie Hemann – Deputy Executive Director of Operations/Head Start Carrie Holland – Deputy Executive Director of Finance Dr. Mark Wagstaff – Head Start Director Nancy Welch – Head Start Associate Director Mary Margaret Wilson – Head Start Assistant Director Barbara Bruhn –Fiscal Coordinator Nancy Gay –Grants Coordinator Wanda Hughes – Head Start Fiscal Support Kim Raby – Head Start Fiscal Support Pat Davis – Accounts Payable Copyright 2010 by Region 7 Education Service Center. All rights reserved.

4. Carrie Holland – Deputy Executive Director of Finance - Region 7 ESC • Requirements of Federal Award and Single Audit • ESC/ISD Cooperative Agreement – responsibilities and reporting • Proposed Reimbursement Process – estimated costs & Certifications • Settle-up Process for Documentation & Final Payment Copyright 2010 by Region 7 Education Service Center. All rights reserved.

5. ESC Fiscal Audit Requirements • ESC auditors must: • Verify Income Eligibility and other grant requirements • Verify that the required matching contributions from ISD were met • Ascertain the sources of matching contributions and verify they were from an allowable source • Test records to verify that the values placed on in-kind contributions (including third-party contributions) are in accordance with the OMB cost principles, Title 2 CFR 215, and the terms of the award • Review expenditure documentation submitted during settle-up period to substantiate payments Copyright 2010 by Region 7 Education Service Center. All rights reserved.

6. § 1301.12 Annual audit of Head Start. An audit of the Head Start program covering the prior budget period of each Head Start agency…shall be made by an independent auditor to determine: (1) Whether the agency’s financial statements are accurate; (2) Whether the agency is complying with the terms and conditions of the grant; and Copyright 2010 by Region 7 Education Service Center. All rights reserved.

7. (3) Whether appropriate financial and administrative procedures and controls have been installed and are operating effectively. Head Start agencies shall either include delegate agency audits as a part of their own audits or provide for separate independent audits of their delegate agencies. Copyright 2010 by Region 7 Education Service Center. All rights reserved.

8. Proposed Reimbursement Agreement - Handout • ISD submits Staffing, Estimated Expenditures, and Estimated In-Kind • District Official Certifies • Due Date in mid September allows PO to be issued & payments to begin • Items Not Paid with this Process: Child Snacks, Adult/Volunteer lunches, Parent Training Refreshments, Substitutes, Field Trips Copyright 2010 by Region 7 Education Service Center. All rights reserved.

9. Final Payment/Settle Up • Documentation of actual expenditures to support payments • Final Expenditure Report allows final payment to be made • One time documentation submission • Financial management standards for program and financial audit require documentation • Final responsibility for sufficient documentation rests with grantee ESC Copyright 2010 by Region 7 Education Service Center. All rights reserved.

10. Financial Assistance Award Head Start/Early Head Start 2010-2011 • Awarded by U.S Department of Health & Human Services – Region VI – Administration for Children and Families • Budget Period: September 1 – August 31 • Federal Share: 80%/ Non-Federal Match: 20% Copyright 2010 by Region 7 Education Service Center. All rights reserved.

11. ARRA Early Head Start Expansion 2010-2011 Copyright 2010 by Region 7 Education Service Center. All rights reserved.

12. Financial Management System • Accurate, current, and complete disclosure • Records that document the source and application of funds • Effective internal controls and accountability of funds/assets • Comparison of outlays and budget amounts • Written accounting & cash management procedures • OMB A-87 costs – reasonable, allowable, allocable Copyright 2010 by Region 7 Education Service Center. All rights reserved.

13. Dr. Mark Wagstaff – Head Start Director Region 7 ESC Head Start/ISD Cooperative Agreement • Handout • Federal Review • Annual Self Assessment Copyright 2010 by Region 7 Education Service Center. All rights reserved.

14. Income Guidelines • Information Memorandum ACF-IM-HS-09-02 • Enrollment Recruitment Selection Eligibility Attendance Process (ERSEA) • Systematic Selection Process • Poverty Guidelines for 2009 Copyright 2010 by Region 7 Education Service Center. All rights reserved.

15. Purchasing • Purchasing Co-Op • Best Value • Price • Vendor reputation • Quality of goods/services • Extent to which goods/services meet the needs • Vendor’s past relationship with ESC • Impact on ESC’s ability to comply with use of HUB • Long-Term cost • Other relevant factors • 3 Quotes / Region 7 Bid List Copyright 2010 by Region 7 Education Service Center. All rights reserved.

16. Reimbursements • Reimbursement Schedule - HANDOUT • Teachers/Teaching Assistants – Proposed Reimbursement Agreement – 9 mo. payments • Substitutes – As used within 30 days • Meals/Snacks: Child/Adult – Monthly as billed due 5th of following month • Parent Training Food – Monthly as billed • Final Settle Up payment after Final Expenditure Report submitted early summer Copyright 2010 by Region 7 Education Service Center. All rights reserved.

17. Reimbursement • Teachers/ Teaching Assistants (Monthly Payment based on Proposed Reimbursement Agreement) • Substitutes • (As They Are Used) within 30 days - HANDOUT • Process for Any Teacher/Teaching Assistant Trainings That Are Reimbursed to ISDs from Head Start Have Process For Prior Approval Copyright 2010 by Region 7 Education Service Center. All rights reserved.

18. Reimbursement • All Head Start Children Are Categorically Eligible For Free Lunch • Child Snacks –HANDOUT of form & HANDOUT of letter agreeing to Snack Rate change from .75 to .74 (USDA) • Adult Meals – (Separate and Monthly) Copyright 2010 by Region 7 Education Service Center. All rights reserved.

19. Reimbursement • Parent Training Food (Monthly as they occur) There are Eight Standard Parent Trainings • Other Parent Training Events That Are Billed As They Occur (Ex. Dad Day Events, Family Literacy Night, Picturing America Event) Copyright 2010 by Region 7 Education Service Center. All rights reserved.

20. Reimbursement • Field Trips - HANDOUT • Prior Request Process for All Field Trips: Two Ways We Will Reimburse: 1. Head Start Approval Process Followed And We Have Check Payable To Vendor 2. School Pays In Advance and We Reimburse Upon Request With All Documentation From Head Start Process Copyright 2010 by Region 7 Education Service Center. All rights reserved.

21. Head Start Responsibilities To Perform And Report In A Timely Manner • Allows Us To Ensure a Quality Head Start Program For Children And Families Copyright 2010 by Region 7 Education Service Center. All rights reserved.

22. Questions and Answers Copyright 2010 by Region 7 Education Service Center. All rights reserved.