21st CCLC Budget Meeting

Thompson Building

Chicago, Illinois

May 16, 2008

General Grant Policies

Begin date of grant cannot precede the receipt of a substantially approvable budget at ISBE.

Obligation for funds based on amendments cannot begin prior to the date of the receipt of a substantially approvable amendment request at ISBE.

Budget Policies, Cont.

Budget amendments must be received in the agency no later than 30 days prior to the end date of the grant.

Regular end date is June 30, but can be extended to August 31, if a summer program will still be in effect after June 30 of any fiscal year.

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.

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.

Supplement vs. Supplant

Cannot approve expenses required by state law.• Principals, 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.

Cannot approve regular expenses—e.g. rent, utilities, etc., that are regular cost of “doing business.”• Only costs incurred as a result of the grant, e.g. additional

clerical time, additional phone usage, etc.

Expenditure Reports

All required expenditure reports must be received by the due date—usually 30 days after the end of a quarter. No payments will be made until required reports are filed.• 20% variance per cell• Cumulative• Filed electronically

Funds for projects must either be obligated or spent prior to the ending date of the grant.

Other 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

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 your funds, but use wisely

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 U.S. Dept of Education and sent to ISBE.

Checks should be accompanied by a statement identifying the program and program year from which the interest was earned.

Grantee Requirements A complete 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 and LPA contractors 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.

Where do I find budgets and amendment forms?

www.isbe.net/21cclc Resources Budget forms for grants by cohort year,

i.e., FY05, 07, 08, or 09

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.

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.

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)

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

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.

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

CBOs/FBOs use the state average—not yet determined for FY09

School districts are computed and can be found in the NCLB consolidated applications

Universities use 8%

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

1000, 100Instructional 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

• Others who may teach or lead activities

Budget—Salaries, Examples

10 teachers (5 math, 5 reading) X $25 hr X 2 hrs/wk X 28 wks--$70,000

5 math tutors X $10/hr X 2hrs/wk/28 wks = $2800

5 recreation leaders X $15 hr X 1hr/wkX28 wk= $2100

1000, 200—Benefits

Paid to employees of fiscal agent

Must be listed separately on grant

Provide total expenses for all employees in each category• TRS (federal is required for teachers)

• Medicare

• Life Insurance

• Medical/Health

• IMRF (non certified staff)

Benefits Examples

200• 10 teachers TRS

• 5 tutors IMRF

• 5 recreation leaders

300-- (Considered employers’ insurance)• 5 Rec Leaders Workers’ comp

• 5 Rec Leaders Unemployment comp

1000, 300— 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

1000, 400—Supplies and Materials

It is not enough to put supplies and materials and list an amount

Examples must be supplies—supplementary reading books, folders, flip charts, art supplies, educational software

No equipment is allowed—even if under $500

Incentives go here—must put what is to be given• No t-shirts• No cash • Reasonable and feasible based on total amount of grant

2210, Improvement of Instruction (Professional Development)

100--Stipends for those attending professional development outside regular work hours

100—Substitute teachers (if PD held during regular work hours)

200--Benefits on stipends 300--Fees for conferences (list conference if known),

per diem, hotel expenses, consultant fees 400—books and journals for those attending

professional development training

2230 Assessment and Testing

100--Salary paid specifically for someone who performs testing

200—Benefits on salary (always list separately)

300—Unemployment or workers‘ comp 400—ACT test prep materials

2300-- Administrative Costs

For salaries to be here, they must be for administrative positions, e.g. project director, grants coordinator—someone who is considered an administrator by agency

No teaching salaries, site coordinators, unless they are administrators serving as site coordinators

General Administration

100—Project director--.25 FTE= $15,000 Project coordinator-- .5 FTE=$15,000 200—Benefits for these positions (list) 300-- Workers comp, unemployment

com, postage, travel costs between projects, audit (prorated)

400—Supplies—general office supplies

2520—Fiscal Services

100--Bookkeeper----100 hours X $12hr =$1200

200--Associated benefits—delineate 300--Workers and/or unemployment

comp 400—Bookkeeping supplies—ledgers,

file folders, ink cartridges---$500

2540Operations and Maintenance

100--Janitor salary for cleaning after school areas

200--Associated benefits (list) 300—Workers’ comp; prorated rent for

use of building after school (usually CBO/FBO)

400—General cleaning supplies

2550--Transportation

100--Bus drivers’ salaries 200—Benefits—list each out separately 300-- Benefits for own workers or

*Contractual bus service• 150 days at $200 per day= $30,000

400-- Gas, oil= $4000 (if grantee is paying; usually included in a contract)

2560—Food Services

100—Cafeteria workers salaries to serve snacks

• 2 workersX$10/hrX5hrs/wkX 28wks=$2800

200—IMRF, insurance 300—Workers’ compensation

2620—Planning, Research and Evaluation

100—if employees internally do this

200 and/or 300—benefits--list

300-contractual for evaluation—(if this is paid to a public entity, it goes in 4100, 300)

2900-- Support Services

Site Coordinators Salaries go here 100— Salaries .4FTE=$15,000 200—benefits—list each separately with

percents that apply and total 300—if applies 400—General office supplies=file folders,

ink cartridges, paper, markers

3000--Community Services

All payments related to parents go here

100 salaries paid for adult education by employees of fiscal agent; parent liaison

200/300--Benefits—list

300—Contractual for programs for adults• Drug awareness counselor• Museum

Supplies—art and craft supplies, books on parenting, take home reading kits

Common Errors Not enough detail Using zeroes, decimals, etc. Not working on payment schedule to schedule payments

when really needed (leads to excess cash on hand) Not putting workers’ comp in Object 300 Not delineating supplies Categorizing workers’ salaries in wrong place 2210—salary here cannot be for time with student contact 4100, 300—not putting payments to government entities,

LEAs here regardless of service provided

More Common Errors Not having original signatures on budgets and

grant agreements Forgetting to mail hard copy after faxing

budgets Not establishing what end date is requested Not submitting an original budget because

believing continuation means automatic renewal

Not keeping copies of the final approved budget which may have changes made by ISBE

Auditing

Auditors presume supplanting unless you have records to prove otherwise

Nothing paid in previous year with state, private, or local funds (unless that fund source changed)

Resources

www.isbe.net/funding/pdf/fiscal_procedure_handbk.pdf• Fiscal Policies and Procedures Handbook

www.isbe.net/21ccc

budget amendment forms

continuation applications

ISBE Contacts

Chicago Consultant--312/814-2220

• Joe Banks jbanks@isbe.net

Springfield Consultants—217/524-4832

• Carol McCue--vmccue@isbe.net

• Gail Meisner-- gmeisner@isbe.net

• Gary Miller-- gmiller@isbe.net

Secretary

• Pam Bokamp--pbokamp@isbe.net

Questions?