21 st CCLC Budget Webinar

1. 21st CCLC Budget Webinar April 2010

2. TERMINOLOGY • Budget Summary – restates project plan as expenses • Budget Breakdown – itemizes and describes expenses • Payment Schedule – reflected monthly expected costs of budgeted plan • Expenditure Report – quarterly cumulative report of actual expenditures, based on approved budget

3. 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.

4. IMPORTANT GRANT GUIDELINES Project Begin Dates • Start date is dependent on grant receipt at ISBE. Grants cannot begin prior to JULY 1. Grants received at ISBE after JULY 1 begin on the day that a substantially approvable budget is received. • Recipients submitting grants in “substantially approvable” form can begin obligating funds at the time of receipt by ISBE without written approval. • If in doubt, do not obligate.

5. IMPORTANT GRANT GUIDELINES Project End Dates • In general, grants should be operated in a twelve month period, usually July 1 to June 30. • August 31 end date applicable to projects offering summer activities past June 30. • End date extensions MUST be requested 30 days prior to the end date of the project. • Extension requests done via a budget amendment

6. GRANT BUDGETS • Understand allowable direct costs, forms and instructions. • Make sure important contact information is provided. -- Region-County-District-Type Code -- Contact Name, Address, Phone, Fax -- Use forms that are provided -- Send with original signatures Do not “doctor” another form to submit.

7. 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 grant—prorated according to grants being audited

8. GRANT ACTIVITIES • 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 year’s audit fee should be completed no later than 90 days after the project ending date.

9. 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. • No carryover of funds from previous year. • Unused funds become prepayment on FY11 grant amount.

10. SUPPLEMENT vs. SUPPLANT • Cannot approve regular expenses—e.g. rent, utilities, etc., that are regular cost of “doing business.” • Cannot approve expenses required by state law • Principals’ and 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. • Only costs incurred as a result of the grant, e.g. additional clerical time, additional phone usage, renting a meeting room for professional development.

11. 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

12. 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 funds but always use wisely.

13. 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 ISBE which will make payment to USDE. • Checks should be accompanied by a statement identifying the program and program year from which the interest was earned.

14. GRANTEE REQUIREMENTS • A completed 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 staff 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.

15. WHERE DO I FIND BUDGETS & AMENDMENT FORMS? • www.isbe.net/21cclc • Resources • Budget forms for grants by cohort year, i.e., FY 07, 08, 09, 10.

16. 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.

17. Regular Term: July 1, 2010 thru June 30, 2011 When do activities begin? July August September October November December January February March April May June PAYMENT SCHEDULES

18. Extended Term: July 1, 2010 thru August 31, 2011 When do activities begin? July 10 August 10 September October November December January February March April May June July 11 August 11 PAYMENT SCHEDULES

19. July 10 August 10 September October November December January February March April May June July 11 August 11 Total $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $10,000 $8,570 $8,570 $8,590 $120,000 COMMON PAYMENT SCHEDULES

20. July 10 August 10 September October November December January February March April May June July 11 August 11 Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 30,000 $10,000 $10,000 $ 30,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 10,000 $10,000 $10,000 $ 5,000 $10,000 $10,000 $ 10,000 $30,000 $10,000 $ 5,000 $10,000 $ 5,000 $10,000$ 5,000 $120,000 $120,000 $120,000 PROPER PAYMENT SCHEDULES

21. July 10 August 10 September October November December January February March April May June July 11 August 11 Total $ 0 $ 0 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $ 120,000 HOW FISCAL YEARS CAN OVERLAP July 10 August 10 September October November December January February March April May June July 11 August 11 Total $ 5,000 $ 2,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $ 3,000 $ 120,000

22. 21st CENTURY GRANT PROCESS Final Payment/ Prepayment Determined July – submit your original application Initial Applications/ Revised Budgets/ Amendments Final Payment September Payment Final Expenditures Thru: 6/30 Due: 07/31 May Payment October Payment GRANT PROCESS April Payment November Payment Expenditures Thru: 12/31 Due: 01/31 December Payment March Payment Expenditures Thru: 03/31 Due: 04/30 January Payment February Payment Amendment (if applicable)

23. 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)

24. 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

25. GRANT EXPENDITURES • Expenditure reports should always reflect cumulative expenditures. • Expenditures can vary by 20% or $1,000, whichever is the greater, on a budgeted cell. • Excess cash will be withheld from future scheduled payment(s). • A project is FINAL when the end date equals the expenditure through date with zero obligations. If an obligation is reported, the entity will have 90 days from the end date of the project to liquidate the obligation.

26. PREVIOUS PROBLEMS • Final expenditure report overstated or understated • Final expenditure report NOT cumulative • Sub-grant expenditures not monitored • Expenditure reports do not agree with the amounts recorded in the district’s general ledger • Grant funds were not segregated (i.e., federal grant funds were used to cover local operating expenditures)

27. ELECTRONIC SERVICES • www.isbe.net • Financial Reimbursement Information System Inquiry (FRIS) • Electronic Expenditure Report System IWAS HELP DESK 217-558-3600

28. NAVIGATING ISBE.net

29. FUNDING & DISBURSEMENTS

30. POLICY/PROCEDURES/REQUIREMENTS

31. HIGHLIGHTS Fiscal Policies/Procedures/Requirements • Indirect Cost Rates • Pages 16 and 17 • Cost Allocation Plans • Pages 18 and 19 • Supplementing vs. Supplanting • Page 33 www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdf

32. NAVIGATING ISBE.net

33. FRIS INQUIRY

34. NAVIGATING ISBE.net

35. ELECTRONIC EXPENDITURE REPORTS

36. Important Notes • Limitation of administrative costs Function 2300 • Limited to 5% of the total budget allocation • Be sure to categorize correctly • Food Costs— • allowed for meetings that include family members and that take place during regular mealtime hours. • Maximum allowable is $10 per person • Not for meals for computer classes, GED classes, etc.

37. BUDGET REVIEW Professional Development • Funds must be included for a minimum of three state level workshops • If there are no funds listed in budget, we will look for explanation in the Continuation Application as to how the PD will be paid for

38. Evaluation • Funds must included in budget for evaluation purposes, function 2620. • Internal • External • If no funds allocated, we will be asking for explanation.

39. OUT OF STATE TRAVEL • 50 or more miles from Illinois’s borders • No out of state travel without prior permission from ISBE • Use form online at www.isbe.net/21cclc • Do not schedule airfare, hotel, or any nonrefundable expenses until permission is received • Travel to USDE sponsored Summer Institute does not need preapproval

40. NON ALLOWABLE COSTS • Overnight or out of state travel for students • Daily snacks/meals for students • Food for professional development events, faculty, staff, or administrative meetings or for staff in any setting • Clothing (materials for sewing classes are allowable)

41. NON ALLOWABLE COSTS • Equipment • Incentives of cash, clothing, or others that are unreasonable in proportion to the amount of funding • Furniture • Staff events that include retreats, lock-ins, or similar types of events

42. NON ALLOWABLE COSTS • Field trips that are purely recreational • Membership dues to organizations, societies • Promotional or marketing items • Pens, caps, totes, mugs, etc. • Capital improvements or construction, remodeling, or renovation • Classes for credit recovery that were previously offered and paid for by district or other funds sources • Supplanting

43. 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. • People who work on multiple grants must have time pro-rated among the grants.

44. 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 2660—if direct costs here, no indirect costs can be used on budgets

45. INDIRECT COSTSCONTINUED • CBOs/FBOs use the state average—not yet determined for FY11 • School districts can use the amounts in their NCLB consolidated applications (after October 1) • If want to use indirect cost rate, will have to amend later • Universities use 8%

46. 1000, 100 INSTRUCTIONAL 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 • Recreational leaders • Others who may teach or lead activities

47. BUDGET SALARIES EXAMPLES • 10 teachers (5 math, 5 reading) X $25 hr X 2 hrs/wk X 28 wks=$14,000 • 5 math tutors X $10/hr X 2hrs/wk/28 wks = $2800 • 5 recreation leaders X $15 hr X 1hr/wkX28 wk= $2100

48. 1000, 200 - BENEFITS • Paid to employees of fiscal agent • Must be listed separately on grant • Provide total expenses for all employees in each category--examples • TRS (federal is required for teachers) in agencies that are required reporters e.g. school districts (outside CPS) and ROEs • Medicare • Life Insurance • Medical/Health • IMRF (non certified staff)

49. BENEFIT EXAMPLES • 200 • 10 teachers TRS = • 5 tutors IMRF = • 5 recreation leaders IMRF= • 300 (Considered employers’ insurance) • 5 Rec Leaders Workers’ comp= • 5 Rec Leaders Unemployment comp=

50. 1000, 300 - INSTRUCTIONAL 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