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The Masters' Budget Management Workshop

Join Mr. Jon Collins, Executive Director at Chattahoochee Technical College, for an insightful session on budgeting rules and systems. Learn key points on budget tracking, payroll management, and grant funding utilization.

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The Masters' Budget Management Workshop

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  1. Budget Management Mr. Jon Collins Executive Director, Adult Education Chattahoochee Technical College 1

  2. WORKSHOP OVERVIEW  Know the Rules: Budgeting, Tracking, and Monitoring What Matters  Being Part of a Team  Lessons Learned and Other Insights from the Field  Budgeting Points of Concern with Resources  Budget Builder Tools  Budget Tracking Tools and Processes The Masters’ Series The Masters’ Series 2

  3. BUDGET MANAGEMENT: THE RULES 3

  4. START HERE . . . . . . . . . . . . . . Design procedures that will ensure the proper use of and accounting for grant funds. This is called a: Budget Management System The Masters’ Series The Masters’ Series 4

  5. YOUR BUDGET MANAGEMENT SYSTEM SHOULD INCLUDE. . .  A realistic assessment of current and future resources and how those resources affect your operational capability  A process that builds an accurate payroll within grant limits The Masters’ Series The Masters’ Series 5

  6. YOUR BUDGET MANAGEMENT SYSTEM SHOULD INCLUDE. . .  A process that tracks payroll and operating expenditures over time against your budget  Tools that help you explain your budget and its status to others  Ongoing effort to spend your State and Federal dollars down to as close to zero as possible by FY end The Masters’ Series The Masters’ Series 6

  7. Some nuts and bolts of a Budget Management System 7

  8. THE CHALLENGE OF PAYROLL VS OPERATING EXPENSES 1. Rent 2. Utilities 3. Custodial Services 4. Student Insurance 5. Scantron Maintenance 6. Travel 7. Staff Development 8. Supplies & Materials • Textbooks • Office Supplies • Distance Learning Programs • Assessment Materials 9. Equipment • Furniture • Technology: computers, printers, fax machines 1. Full-Time Salary + Fringe P A Y R O L L E X P E N S E S 2. Part-Time Salary O P E R A T I N G 3. Teachers E X P E N S E S 4. Secretary 5. Transition Specialist 6. Instructional Aides Multi-year planning is often required to ensure adequate staffing and effective operational support of the program and its mission. The Masters’ Series The Masters’ Series 8

  9. STATE AND FEDERAL FUNDING A big wall separates State and Federal Funds. STATE FEDERAL Project # 01938001 Program Administrator & Secretary Section 231 Adult Education, EL/Civics Project # 01938002 Full-Time, Level 0-8 ABE Instructors Section 225 Institutional Section 223 Professional Development Project #01938003 Full-Time, Level 9-12 ASE Instructors 9 The Masters’ Series The Masters’ Series

  10. GRANT FUNDING: BUDGET FORM 1 FY2014 Budget Form 1 State Funds Adult Ed Section 231 Fed Adult Ed Fed Funds EL/Civics Section 225 Inst Adult Ed Proj 01938- 002 Prog 0 - 8 Proj 01938- 003 Prog 9 - 12 Proj 2633A- 002 Prog 0 - 8 Proj 2633A- 003 Prog 9 - 12 Proj 2653A- 002 Prog 0 - 8 Proj 2653A- 003 Prog 9 - 12 Proj 2663A-002 Prog 0 - 8 R Totals Proj 01938- 001 Admin 01938- R Totals 2633A- 2653A- R Totals Expense Items Full-Time Payroll Line Form 0 1 9 0 0 0 0 0 0 0 0 0 0 0 Part-Time Payroll 2 7 0 0 0 0 0 0 0 0 0 0 0 3 Travel 2 0 0 0 0 0 0 0 0 0 0 0 4 Sup and Mat 3 0 0 0 0 0 0 0 0 0 0 0 5 Equip 4 0 0 0 0 0 0 0 0 0 0 0 6 Operating 5 0 0 0 0 0 0 0 0 0 0 0 Other Facilities 7 6 0 0 0 0 0 0 0 0 0 0 Totals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 The Masters’ Series The Masters’ Series 10

  11. STATE AND FEDERAL FUNDING $ $ $$ STATE FEDERAL supplement $ Federal funds can be used to supplement a program operating with local funds, but in no case can be used to supplant local and state funding. SUPPLEMENT SUPPLANT /noun/ something added to complete a thing /verb/ to usurp the place of, displace, and substitute for In other words, Federal funds may not be used to pay for services, staff, programs, or materials that would otherwise be paid with state or local funds. The Masters’ Series The Masters’ Series 11

  12. THE NOT SO fine PRINT DO NOT use grant funds to pay for costs of fringe benefits for personnel whose duties are divided between your grant and other activities. • DOallocate expenses to the appropriatefunding projects. • DO NOT charge tuition, fees, or any other charges to students or require them to purchase any books or any other materials that are needed for participation in the program. • The Masters’ Series The Masters’ Series 12

  13. MORE NOT SO fine PRINT  DO NOT use State or Federal grant funds to pay for GED testing or test administration.  DO NOT buy refreshments with State or Federal grant funds.  DO NOT use grant funds to teach in any language but English. The Masters’ Series The Masters’ Series 13

  14. MORE NOT SO fine PRINT Think Before You Purchase, Because All Costs Must Be . . . YOU GUESSED IT -  Would a prudent person spend taxpayer $ on this and is it necessary for the operation of the program . . .do you want your name in the paper  Is the cost charged in accordance with benefits received (does it actually benefit the program) and to the correct project . . .  Is the cost adequately documented . . .  Is the cost authorized by State & Federal regulations . . . The Masters’ Series The Masters’ Series 14

  15. MORE NOT SO finePRINT  You will not be reimbursed for indirect costs. (overhead expense not directly related with adult education instruction). A direct cost can be identifiable to adult education in examples such as salaries, fringe benefits, and material costs for project work. An indirect cost is a cost incurred for common or joint objectives and cannot specifically be identified with or allocated to a particular project or activity, like office functions, facilities costs, and maintenance costs. The Masters’ Series The Masters’ Series 15

  16. AMENDMENTS (MOVING MONEY AROUND) STATE FUNDS FEDERAL SECTION 231 FEDERAL EL/CIVICS FEDERAL SECTION 225 FEDERAL SECTION 223 FT Payroll PT Payroll FT Payroll PT Payroll FT Payroll PT Payroll FT Payroll PT Payroll Operations Mtg Teacher’s Acad Fall Conf EAGLE Trans Spec Acad PA Retreat Spring Training Travel S&M Equipment Operating Other/Facilities Travel S&M Equipment Operating Other/Facilities It’s okay to amend your budget to move money where it can be used more effectively. Travel S&M Equipment Operating Other/Facilities Travel S&M Equipment Operating Other/Facilities The Masters’ Series The Masters’ Series 16

  17. AMENDMENTS: IMPORTANT RESTRICTIONS WORTH KNOWING • 8.25% of a budget may be used for institutionalized instruction. • No more then 12.5% of grant money may be used for professional development expenditures. • EL/Civics grant money is a designated amount and cannot be moved to 225, 223, or 231 funds. However, 231 program funding may be moved to fund EL/Civics. • State funds can never be moved to fund to Federal projects! The Masters’ Series The Masters’ Series 17

  18. AMENDMENTS: IMPORTANT RESTRICTIONS WORTH KNOWING You must submit an amendment request for out-of-State travel of $1,000 or more and for staff development expenditures of $1,000 or more (include supporting documents – agenda). The Masters’ Series The Masters’ Series 18

  19. AMENDMENTS: IMPORTANT RESTRICTIONS WORTH KNOWING You must submit a Personnel Change Notification Amendment Form A2immediately for changes in the following positions: Fiscal Organization Head • Program Administrator • Secretary • Transition Specialist • The Masters’ Series The Masters’ Series 19

  20. ABOUT PROFESSIONAL DEVELOPMENT SALARY CHARGES  Salary for part-time and full-time personnel attending professional development and training events is charged to Project 223.  Part-time personnel are paid at their regular rate when attending PD/training. They are paid for only the actual hours in attendance at the event. The Masters’ Series The Masters’ Series 20

  21. ABOUT PROFESSIONAL DEVELOPMENT SALARY CHARGES  The salary of substitutes for personnel attending PD/training events is to be paid from the project number that is normally used for the teacher being replaced in the classroom.  GED examiners and proctors may not be paid out of funding sources 223, 225, or 231. The Masters’ Series The Masters’ Series 21

  22. BUDGET POLICY FORMS & OTHER FINANCIAL STUFF WORTH KNOWING Where Is This Found? Policies & Procedures Administrative Manual > Section 2.3: Fiscal Reporting • Funds Requisition Form • Georgia Statewide Travel Expense Reimbursement System • Inventory Form • Record Retention Chart The Masters’ Series The Masters’ Series 22

  23. AND NOW . . . Midnight in the Garden of Good and Evil Budget Management The Masters’ Series

  24. Mercer House Adult Learning Center 24

  25. STATE WIDE CONTRACTS July 16, 2012 the State entered into preferred convenience contract for office supplies (excluding paper and toner) July 16, 2012 the State entered into preferred convenience contract for paper and toner only PREFERRED CONVENIENCE While the contract is not mandatory, the pricing is deeply discounted and very competitive. You should make every effort to take advantages of the prices. The Masters’ Series The Masters’ Series 25

  26. A QUOTE FROM MIDNIGHT… … “If you go to Atlanta, the first question people ask you is, "What's your business?" In Macon they ask, "Where do you go to church?" In Augusta they ask your grandmother's maiden name. But in Savannah the first question people ask you is "What would you like to drink?” Around this session what they want to know is if your books balance. The Masters’ Series The Masters’ Series 26

  27. TEAM GEORGIA MARKETPLACE (STATE WIDE CONTRACTS) https://solutions.sciquest.com/apps/Router/Login?OrgName=Georgia&URL 1. Create an account 2. Select Contract Viewer 3. View items to see if it is part of a state wide contract The Masters’ Series The Masters’ Series 27

  28. 28

  29. BEING PART OF A TEAM 29

  30. YOU BELONG TO THIS TEAM They Spend, Pay, Don’t Pay, Account For, and Report Your Money PEOPLE THINGS Director of Payroll Executive Director (Role: Compliance, Reporting, and Financial Services) Human Resources Coordinator Purchasing Manager Accounting Technician for Accounts Receivable PLACES Accounting Technician for Accounts Payable Accounting Technician for Travel Accounting Technician for Asset Management Accountant (Reports) 30 The Masters’ Series The Masters’ Series

  31. OTHER TEAM MEMBERS Who Are These People? They Can Help You Save Money . . . Director of Facilities Management Executive Director of Technology Advancement Hardware Coordinator Software Coordinator Director of Economic Development The Masters’ Series The Masters’ Series 31

  32. PANEL DISCUSSION 32

  33. LUNCH 33

  34. BUDGETING POINTS OF CONCERN WITH RESOURCES Mr. Rodney Dorton Fiscal Operation Manager (OAE/GED) Technical College System of Georgia 34

  35. WELCOME NEW AND RETURNING PROGRAM ADMINISTRATORS The Masters’ Series The Masters’ Series 35

  36. FEDERAL TO STATE FUNDING OVERVIEW The Masters’ Series The Masters’ Series 36

  37. FEDERAL TO STATE FUNDING OVERVIEW these are important to be familiar with Included in these federal funds is a specific amount designated for EL/Civics instruction. These federal funds are authorized by Title II of the Workforce Investment Act of 1998 (CFDA84.002, Catalog of Federal Domestic Assistance, http://www.cfda.gov) and are granted with the following earmarks. The Masters’ Series The Masters’ Series 37

  38. FEDERAL TO STATE FUNDING OVERVIEW At least 82.5%of the Federal funds must be sub-granted (designated Section 231 funds) % The Masters’ Series The Masters’ Series 38

  39. FEDERAL TO STATE FUNDING OVERVIEW At least 82.5% of the Federal funds must be sub-granted (designated Section 231 funds) No more than 5% of the Federal funds may be used for administrative expenses% The Masters’ Series The Masters’ Series 39

  40. FEDERAL TO STATE FUNDING OVERVIEW At least 82.5%of the Federal funds must be sub-granted (designated Section 231 funds) (designated Section 223 funds) % No more than 5%of the Federal funds may be used for administrative expenses No more than 12.5%of Federal funds may be used for Professional Development The Masters’ Series The Masters’ Series 40

  41. FEDERAL TO STATE FUNDING OVERVIEW At least 82.5% of the Federal funds must be sub-granted (designated Section 231 funds) % No more than 5% of the Federal funds may be used for administrative expenses No more than 12.5% of Federal funds may be used for Professional Development (designated Section 223 funds) No more than 10%of the 82.5%of Federal funds sub-granted may be used for Institutionalized Instruction (designated Section 225 Funds) The Masters’ Series The Masters’ Series 41

  42. FEDERAL TO STATE FUNDING OVERVIEW Federal guidelines require the states receiving these Federal funds to obtain matching funds equal to at least 25% of the Federal funds awarded. 25% 90% States receiving these Federal funds should maintain the matching funds and, in a current grant year, expend at least 90% of the monies spent in the previous year. The Masters’ Series The Masters’ Series 42

  43. FEDERAL TO STATE FUNDING OVERVIEW The State of Georgia appropriates funds through the legislative process to TCSG and a portion of these funds are designated for Adult Education. These State designated funds are used for Adult Education instruction and to help TCSG meet our match and maintenance of effort requirements to the US Department of Education. The Masters’ Series The Masters’ Series 43

  44. FEDERAL TO STATE FUNDING OVERVIEW The State of Georgia appropriates funds through the legislative process to TCSG and a portion of these funds are designated for Adult Education. 5% These State designated funds are used for Adult Education instruction and to help TCSG meet our match and maintenance of effort requirements to the US Department of Education. Administrative expense cap earmark by the US Deptof Education The Masters’ Series The Masters’ Series 44

  45. ACCOUNTING OVERVIEW Each applicant is required to maintain records on all expenditures. The Masters’ Series The Masters’ Series 45

  46. ACCOUNTING OVERVIEW Each applicant is required to maintain records on all expenditures.  Technical colleges, public schools and post-secondary institutions shall use budgeting, accounting, and auditing procedures in accordance with the provisions of the State Auditor. The Masters’ Series The Masters’ Series 46

  47. ACCOUNTING OVERVIEW Each applicant is required to maintain records on all expenditures.  Other eligible grant recipients may use budgeting, accounting and auditing procedures as prescribed by their governing board, provided that: o grants are accounted for on at least the modified accrual basis o an encumbrance method of budgetary control is included in the accounting system o grants are accounted for on an individual project basis by budget function, class/objective code, and year of entitlement The Masters’ Series The Masters’ Series 47

  48. ACCOUNTING OVERVIEW If revenue and/or expenditure account descriptions used by the applicant differ from those line item descriptions required on reports to the Agency, the applicant shall maintain on file for audit purposes the work papers converting the amounts from the accounting records to line items on the required report forms. The Masters’ Series The Masters’ Series 48

  49. ACCOUNTING OVERVIEW All encumbrances and expenditures of funds approved in the budget shall occur on or about the effective date of this budget (the beginning date specified in writing by the Technical College System of Georgia). All goods must have been encumbered and all services rendered by the ending date of the contract in order for the applicant to include these costs as reimbursable expenses. Funds will be reimbursed to the contractor based on the contractor’s cash disbursements. The Masters’ Series The Masters’ Series 49

  50. ASSURANCES http://literacy.myweb.uga.edu/rfa14/rfa-fy14- The Masters’ Series The Masters’ Series assurances 50

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