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FINANCE

FINANCE. That IS my Job. Finance Main Ingredients. Money In Money Out. Money In = Revenue = Source of Funds. Money In = Revenue = Source of Funds. Where do we get the money? How does it flow to the Regional Boards? How is it decided who gets how much? What is relevant to IT and Programs?.

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FINANCE

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  1. FINANCE That IS my Job

  2. Finance Main Ingredients Money In Money Out

  3. Money In = Revenue = Source of Funds

  4. Money In = Revenue = Source of Funds • Where do we get the money? • How does it flow to the Regional Boards? • How is it decided who gets how much? • What is relevant to IT and Programs?

  5. Where, How, and How Much Money? • Federal Government • US Department of Labor (USDOL) • Workforce Investment Act (WIA) • Wagner Peyser • Reemployment Assistance • Veteran Assistance • Health and Human Services(HHS) • Temporary Assistance for Needy Families (TANF)/Welfare Transition (WTP) • State Level Opportunities and Earned Incentives • Other Grant Opportunities and Local Partnerships • Federal to State to Workforce Boards to Sub Recipients

  6. Jointly Managed Programs • Programs in the One Stop Centers managed by DEO Paid Staff. • Wagner Peyser • Veterans (DVOP and LVER) • Extended Unemployment (EUC) • Regional Boards Get Pass Thru Funds to Pay for support of DEO Staff in One Stops.

  7. Notice of Funds Available (NFA’s) • Provides Source of Funding Information • Provides Period of Availability • Provides Amount of Funding • Spells out Financial Guidelines • Admin and Program % Allowable • Spells out Program Guidelines • Purpose of Funds • Training Parameters • Spells out Reporting Guidelines

  8. Why Should You Care?

  9. Why Should You Care? • Programs Can’t Exist Without Funds • Funding Depends on Well Run Programs • Program Managers Make Decisions for Participants based on Guidelines • IT Must Be Prepared for Special Needs in Tracking and Reporting based on NFA Guidelines

  10. Money Out

  11. Money Out = Expenditures • What Rules Do We Have to Play By? • How Do We Track? • What Reports Must We Generate? • Who Watches How We Track and Spend? • What Controls are Necessary?

  12. Mr. Wes UnderwoodAKA

  13. What Rules Do We Play By? • Federal Level OMB Circulars • A-110 Administrative Requirements • A-122 Cost Principles • A-133 Audit • State Guidelines • NFA Requirements • Prior Approval • State Law • Food & Beverage • Travel • Accountability Act

  14. OMB Circular A-122 Cost Principles – Basics • Costs must be Reasonable and Necessary • “Prudent Person Rule” • Costs must be Allocable • Clearly Benefit Program whether direct or indirectly charged • Costs must be Allowable • Sometimes Allowable with Conditions (i.e. Prior Approval)

  15. OMB Circular A-122 Cost Principles Yes or No? • It is OK to spend Federal Money on Bonuses for Employees? • It is OK to Spend Federal Money on Travel to Mexico? • It is OK to Spend Federal Money for Employee Morale? • It is OK to Spend Federal Money on Developing IT Software For Sale? • It is OK to Spend Federal Money on Goods or Services for Personal Use?

  16. Yes or No? • It is OK to spend Federal Money on Bonuses for Employees?

  17. Yes OMB Circular A-122 Selected Items of Cost 8. Compensation for personal services. J. Incentive compensation to employees based on cost reduction, or efficient performance, suggestion awards, safety awards, etc. are allowable to the extent that the overall compensation is determined to be reasonable and such costs are paid or accrued pursuant to an agreement entered into in good faith between the organization and the employees before the services are rendered, or pursuant to an established plan followed by the organization so consistently as to imply, in effect, an agreement to make such a payment.

  18. Yes or No? • It is OK to Spend Federal Money on Travel to Mexico?

  19. Depends OMB Circular A-122 Selected Items of Cost • 51. Travel Costs e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, “foreign travel” includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions.

  20. Depends WIA LAW More Restrictive • http://www.doleta.gov/regs/statutes/wialaw.pdf • (e) LIMITATION ON USE OF FUNDS.—No funds available under this title shall be used for employment generating activities, economic development activities, investment in revolving loan funds, capitalization of businesses, investment in contract bidding resource centers, and similar activities that are not directly related to training for eligible individuals under this title. No funds available under subtitle B shall be used for foreign travel.

  21. Yes or No? • It is OK to Spend Federal Money for Employee Morale?

  22. Yes OMB Circular A-122 Selected Items of Cost • 13. Employee morale, health, and welfare costs. a. The costs of employee information publications, health or first-aid clinics and/or infirmaries, recreational activities, employee counseling services, and any other expenses incurred in accordance with the organization’s established practice or custom for the improvement of working conditions, employer-employee relations, employee morale, and employee performance are allowable.

  23. Yes or No? • It is OK to Spend Federal Money on Developing IT Software For Sale?

  24. No Definitive Answer • Raises more questions • Developing Software for Local Board Use? • Developing Software for Other Regions? • Developing Software for Public Sale? • Developing Software for Sale to Other Regions? • In this case more Research should be done prior to any action.

  25. Yes or No? • It is OK to Spend Federal Money on Goods or Services for Personal Use?

  26. No OMB Circular A-122 Selected Items of Cost • 19. Goods or services for personal use Costs of goods or services for personal use of the organization’s employees are unallowable regardless of whether the cost is reported as taxable income to the employees.

  27. Accountability Act Yes or No? • It is OK to Spend Money Passed through the State on Airline Baggage Fees? • It is OK to Spend Money Passed through the State on Contracts with Board Members? • It is OK to Spend Money Passed through the State on Training for Participants not Registered in EFM? • It is OK to Spend Money Passed through the State on Food for Board Meetings? • It is OK to Spend Money Passed through the State on Memberships to Chambers of Commerce?

  28. Yes or No? • It is OK to Spend Money Passed through the State on Airline Baggage Fees?

  29. Depends • Non Accountability Act Item • Not in State Guidance • Local Policy Dictates.

  30. Yes or No? • It is OK to Spend Money Passed through the State on Contracts with Board Members?

  31. Yes with Provisions • Florida Statutes 445.007 (11) • Contracts with Board Members must be approved by a two-thirds vote of the board when a quorum has been established. • Contracts over $25,000 must have prior approval of WFI. • Contracts under $25,000 must be reported to DEO & WFI, but do not need prior approval.

  32. Yes or No? • It is OK to Spend Money Passed through the State on Training for Participants not Registered in EFM?

  33. Depends • Non Accountability Act Item • WIA participants must be registered in EFM. • Welfare Transition participants in training are not registered in EFM, but reported through OSST. • Participant training using discretionary funds may or may not be registered in EFM.

  34. Yes or No? • It is OK to Spend Money Passed through the State on Food for Board Meetings?

  35. No • Florida Statutes 445.007 (10) State and federal funds provided to the regional workforce boards may not be used directly or indirectly to pay for meals, food, or beverages for board members, staff, or employees of regional workforce boards, Workforce Florida, Inc., or the Agency for Workforce Innovation except as expressly authorized by state law. Preapproved, reasonable, and necessary per diem allowances and travel expenses may be reimbursed. Such reimbursement shall be at the standard travel reimbursement rates established in s. 112.061 and shall be in compliance with all applicable federal and state requirements.

  36. Yes or No? • It is OK to Spend Money Passed through the State on Memberships to Chambers of Commerce?

  37. Yes • Non Accountability Act Item • OMB A-122 30. Memberships, Subscriptions, and professional activities a. Costs of the organization’s membership in business, technical, and professional organizations are allowable.

  38. And on Top of All That • Local Policies and Procedures can be more strict with guidelines on how the money is spent. • Procurement Policy • Contracting • Documentation Necessary • Cost Allocation Plans Followed

  39. Why Should You Care?

  40. Why Should You Care? • Disallowed Costs May Financially Disable A Region’s Ability to Provide Services • Public Perception for Misuse of Funds Can Severely Damage the Workforce System at all Levels • Knowing the Rules Up Front Will Save Time in Correcting Errors Later

  41. How Do We Track the Money? • Accounting Software • Integrated Systems for Money Spent on Participants • Integrated Systems for Payroll

  42. Accounting Software • Must Have the Ability to Track Revenue and Expense by Funding Source • Must be Current • Must be Fast • Must be Backed Up • Must be Secure • Can be Integrated with Multiple Software Programs • Can be Hosted “In the Clouds”

  43. Integrated Systems • Can be used to Track Expenditures by Participant • Gazelle Software • Tracks ITA Vouchers • Tracks Support Services • Tracks Debit Cards for Participants • Transfers Automatically to Accounting Software • Can be used for Payroll and Purchase Orders • Microix Software • Process Payroll and Purchase Orders • Transfers Automatically to Accounting Software

  44. Why Should You Care?

  45. Why Should You Care? • Integrated Systems can alert Program Managers when Participant Budgets are Overspent or Underutilized. • Integrated Systems support better Communication between Program and Finance. • Integrated Systems can save time allowing Case Managers to serve more Participants. • Program Case Managers and Program Managers need to understand how integrated systems with Finance differ from EFM.

  46. Why Should You Care? • IT Support for Financial Systems is extremely important in order to pay the bills on time. • IT Security for Financial Systems is extremely important since that is a source of confidential information for both participants and personnel. • IT needs clear understanding of how Program and Finance can utilize Integrated Systems

  47. What Reports Must We Generate? • Financial Statements • Balance Sheet (Snapshot in Time) • Income Statement (Income and Expense) • OSMIS Reports for DEO • Must Reconcile to Financial Statement • Must Report All Required Categories and Sub Categories • Regional Board Requests • Line Item Budget V Actual Analysis

  48. What Does a Balance Sheet Look Like? • Assets • Cash $100,000 • Receivables $ 20,000 $120,000 • Liabilities • Short Term Liabilities $ 30,000 • Long Term Liabilities $ 10,000 $ 40,000 • Equity $ 80,000 $120,000 Total Assets = Total Liabilities + Equity

  49. What Does an Income Statement Look Like? • Revenue (Money In) $1,000 • Expenses (Money Out) • Salaries $100 • Benefits $ 40 • Training $500 • Leases $200 • Operations $300 • Travel $ 25 $1,165 • Net (Difference) (- $165)

  50. Why Should You Care?

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