Career Education Finance

1. Career Education Finance Andy Martin, Director Career Education Finance Division of Financial & Administrative Services

2. Career Education Finance • Perkins Update • FY2015 Plans and Budgets • DESE Review/Approval Process • Substantially Approved Date • Access Plans through Web Applications—Compliance Plans (Federal and State) • Access Budgets through Web Applications—ePeGS

3. Career Education Finance • Contact Information • ePeGS LEA Contact—information is populated from the Data Collection system • Access through Web Applications—Data Collection • August Cycle under Screen 3 District Contact Personnel • System emails are sent to this address • Important to have this information entered into the Data Collection system completely and accurately

4. Career Education Finance • System Access • District/PS Institution should have a designated User Manager • User Manager grants access and assigns roles for each DESE system • Issues with Web Applications, please send a message to webapphelp@dese.mo.gov or call (573) 522-3207

5. Career Education Finance • Capital Outlay Page • Equipment items must meet the following requirements: • have an instructional use • improve the career and technical education program • strengthen and support academic and technical skill achievement • Possible deadline for equipment purchases (i.e. equipment items purchased with Perkins funds must be received, installed, and available for student instruction by _______) • Equipment items becoming unallowable: • desks/chairs, tables, podiums, workstations (instructional furniture—student and teacher)

6. Career Education Finance • Salaries and Benefits Page • New page in ePeGS that replaced the Supporting Data page • Only report amounts paid from the Perkins grant • Enter data on FTEs, salaries, benefits, stipends/extra-duty pay, and substitute pay • Include explanation of new or increased amounts in FTEs, salaries, and benefits and also explanations of any stipends/extra-duty pay and substitute pay • Same concept as Equipment page—system totals amounts and populates data on the Budget grid • For FY2016, there will be a couple of enhancements made to this page: separate FTE by certificated/noncertificated and add employee benefits columns to stipend/extra-duty pay and substitute pay

7. Career Education Finance • Budget Grid • Budgets are estimates—do not have to agree exactly to how funds are spent • Review budget and actual expenses monthly or at least quarterly—must ensure good fiscal management • Accurate budgets are important due to change in format of payment request • Must have funds budgeted in a cell to report an expenditure • Budget revisions—last date to create a budget revision is April 30 • Some budget revisions are not necessary—10% variance

8. Career Education Finance • Payment Request • Must reflect actual cumulative expenditures by both object code and function code • Formula used to calculate the payment request amount is: Actual cumulative program year expenditures to date – Amount paid to date • Funds must be budgeted in a cell before a payment can be requested • Expenditure cells will be grayed out where $0.00 has been budgeted • Must be submitted by the 1st day of the month • Certification statement (CMIA requirement) • Must maintain documentation (account ledger or report) that supports the payment request amount

9. Career Education Finance • Final Expenditure Report (FER) • Opens July 1 of each year • Due on or before September 30 of each year • Must enter actual expenditures—budget amounts are shown above the cells • Must have an amount budgeted to allow an expenditure to be reported • 10% variance—based on the total budget amount—then compares to program costs subtotal • May serve as the final payment request

10. Career Education Finance • Tiered Monitoring • Cohort Model—all LEAs are separated in 3 different cohorts • Desk Audit—review of Perkins Plans and Budgets (all LEAs) • Desk Monitoring—review of Perkins Finance Self-Assessment • For FY2015, this will be required for Cohort 1 • Access Perkins Finance Self-Assessment through Web Applications—Tiered Monitoring • DESE will provide a Help Document when the Perkins Finance Self-Assessment is available (probably October 1, 2014) • Due date will be January 31, 2015 • Perkins Finance Self-Assessment will be used to identify any LEAs not complying with requirements

11. Career Education Finance • Desk Monitoring--Cohort 1 CarrolltonLiberty Pike Co. ClintonMarshfield Poplar Bluff Confluence AcademyMehlvilleReeds Spring DoniphanMetropolitan C.C.Rolla Fort OsageMoberly Scotland Co. Fredericktown Moberly Area C.C.. South Harrison Hancock Place Monett State Fair C.C. IndependenceNormandy Summersville Jefferson CityNorth Central MO Coll. Three Rivers C.C. Joplin North Kansas City Webb City Kansas City Pattonville Lebanon Pemiscot Co. S.D.

12. Career Education Finance • Tiered Monitoring • On-site Monitoring—review of financial records using the Perkins Finance Worksheet • For FY2015, on-site reviews will be conducted for Cohort 3 • Perkins Finance Report and LEA Corrective Action Plan (CAP) will be completed in the Tiered Monitoring system • Access On-site Monitoring through Web Applications—Tiered Monitoring • LEAs receiving an On-Site Monitoring will be determined by reviewing the Perkins Finance Self-Assessments and a risk-based calculation (will probably be determined in August)

13. Career Education Finance • On-site Monitoring--Cohort 3 Affton Harrisonville Perry Co. Belton Jefferson College Platte Co. Brookfield Lamar Raytown Chillicothe Lee’s Summit Ritenour Clark Co. Lexington SSD—St. Louis East Central College Marshall St. Charles C.C. Excelsior Springs Mexico St. Louis C.C. Farmington Mineral Area College Waynesville Ft. Zumwalt Moniteau Co. West Plains Hannibal Parkway

14. Career Education Finance • Perkins Grant—FY2015 • State Administration (5%) $1,071,687 • State Leadership (10%) $2,143,374 • Local Programs (85%) $18,218,681 • Grant Award Total $21,433,742

15. Career Education Finance • Perkins Grant—Funds must be used to improve and support CTE programs • Strengthen academic and career and technical skills of students in CTE programs • Link CTE at the secondary and postsecondary level • Provide students with strong experience in and understanding of all aspects of an industry • Develop, improve, or expand the use of technology in CTE programs • Provide professional development to teachers, counselors, and administrators who are involved in CTE programs • Develop and implement evaluations of CTE programs • Initiate, improve, expand, and modernize quality CTE programs • Provide services and activities that are of sufficient size, scope, and quality • Provide activities to prepare special populations for high skill, high wage, or high demand occupations

16. Career Education Finance • Perkins Finance Worksheet • Records Management • Allowable Costs • Time and Effort Reporting • Equipment • Miscellaneous

17. Career Education Finance • Records Management • Perkins grant is separated from other funding sources • Perkins expenditures can be traced back to a source document • Perkins financial records show the school district/PS institution spent the Federal funds within 3 days of receipt as required by the Cash Management Improvement Act (CMIA)

18. Career Education Finance • Records Management • Perkins funds may not be co-mingled with other funds so that they lose their identity. Expenditures must be traceable to the source of funding. However, programs can be co-funded to maximize the available funds. • Expenditure tracking – establish a separate account for the Perkins grant or assign an accounting code to the Perkins grant identifying the line items of the Perkins approved budget. • Program administration (5%) – must be tracked separately utilizing a Perkins account or code

19. Career Education Finance • Allowable Costs • Perkins funds are spent according to the approved plan, budget, and final expenditure report (FER) • Perkins funds are obligated and expended during the period of availability • Perkins funds are expended for allowable activities • Perkins funds are used to supplement and not supplant non-Federal funds • Perkins funds used for program administration do not exceed 5% of the total Perkins expenditures

20. Career Education Finance • Time and Effort Reporting—School Districts • OMB Circular A-87 states where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. • These certifications must be prepared at least semi-annually and must be signed after-the-fact by the employee or supervisory official having firsthand knowledge of the work performed by the employee. • Employees who are paid 100% from Perkins funds or are paid a portion from Perkins funds and work on one cost objective.

21. Career Education Finance • Time and Effort Reporting—School Districts • OMB Circular A-87 states where employees work on multiple cost objectives, a distribution of their salaries must be supported by Personnel Activity Reports (PARs). • The PAR must: • reflect an after-the-fact distribution of actual activity of employee • account for the total activity for which employee was compensated • be prepared monthly • be signed after-the-fact by employee • be reviewed quarterly to ensure the percentages reflect how employee was actually paid • Employees who are paid a portion from Perkins funds and work on multiple cost objectives.

22. Career Education Finance • Time and Effort Reporting—PS Institutions • OMB Circular A-21 states that distribution of salaries will be supported by after-the-fact activity reports. • The activity reports must: • reflect the distribution of activity expended by employee • reflect an after-the-fact reporting of the percentage distribution of activity of employee • be signed by employee, principal investigator, or responsible official using suitable means of verification that the work was performed • be prepared each academic term for professional staff and monthly for all other employees

23. Career Education Finance • Time and Effort Reporting • Stipends and extra-duty pay must be supported by a signed written agreement between employee and school district/PS institution. • The written agreement must: • indicate the extra work to be performed, the date(s) of performance, and the amount to be paid to employee • be signed by employee and school district/PS institution to show the acceptance of the terms • In addition, employee must prepare time and effort documentation as required by OMB A-21 or A-87

24. Career Education Finance • Equipment • Equipment purchases are consistent with the budget and approved by the Department • Perkins equipment records are maintained and up-to-date • Perkins equipment is located on-site and used for its intended purpose • Controls/safeguards are in place to prevent loss, damage or theft to Perkins equipment • Physical inventory of Perkins equipment is taken and results reconciled with the equipment records at least once every two years

25. Career Education Finance • Equipment • EDGAR states equipment records must be maintained and include: • Description of the equipment • Serial number, model number, or other ID number • Funding source of the equipment • Acquisition date and cost • Percentage of Federal participation • Location, use, and condition of the equipment • Ultimate disposition data, including the date of disposal and sale price of the equipment • EDGAR also states a physical inventory of the equipment must be taken and documented at least once every two years.

26. Career Education Finance • Miscellaneous • Consortium requirements in Sections 131 and 132 of the Perkins Act have been met • Postsecondary Pell Grant data are collected and reported accurately

27. Career Education Finance • Miscellaneous • Sections 131 (Secondary) and 132 (Postsecondary) of the Perkins Act state that funds allocated to a consortium formed to meet the requirements of this section shall be used only for purposes and programs that are mutually beneficial to all members of the consortium and can be used only for programs authorized under this title. • Such funds may not be reallocated to individual members of the consortium for purposes or programs benefiting only one member of the consortium.

28. Career Education Finance • Miscellaneous • Fiscal agent should meet with all of the consortium members and determine the common needs of the consortium prior to submitting the plan and budget. This “needs assessment” should be documented to provide verification that the consortium members met and discussed these issues. • Fiscal agent should develop a written agreement with each consortium member which indicates the amount of their Perkins funds and how the funds may be expended or how the funds will be utilized by the consortium. The agreement should also indicate, if applicable, the documentation that needs to be provided to the fiscal agent for the reimbursement of any expenditures. In addition, the agreement should be signed by the fiscal agent and each consortium member to show the acceptance of the terms.

29. Career Education Finance • State Career Education Funds—FY2015 • Formula Funding $26,929,443 • Grant Funding $19,446,050 • Special Projects Funding $389,000 • Support Services Funding $2,062,675 • Leadership Funding $1,241,860 • Appropriation Total $50,069,028

30. Career Education Finance • State Career Education--EIF • Effectiveness Index Formula (EIF) is an incentive-based funding system comprised of two components: placement and enrollment • The formula uses placement data to calculate 90% of the EIF allocation and enrollment data for the remaining 10% • Data must be submitted through MOSIS • Please review data for completeness and accuracy • Questions on data, contact Mike Griggs or Connie O’Brien in the Office of Data Systems Management

31. Career Education Finance • State Career Education—EIF • EIF allocations consist of: • Base funding ($5,000,000 area career centers and $1,000,000 comprehensive high schools) • Surplus funding (unspent funds from various programs and grants at the end of the fiscal year) • Only area career centers receive the surplus funding

32. Career Education Finance • State Career Education—Secondary Salary Reimbursement • The last several years each school district/PS institution has received the maximum approved salary reimbursement amount that was established in FY2002. • This process will remain the same for FY2015

33. Career Education Finance • State Career Education—Adult/Postsecondary Salary Reimbursement • The Department uses an Adult/Postsecondary Reporting System to determine the salary reimbursement for adult and postsecondary programs • Data must be submitted through MOSIS • Please review data for completeness and accuracy • Questions on data, contact Mike Griggs or Connie O’Brien in the Office of Data Systems Management

34. Career Education Finance • Contact Information • Andy Martin, Director • Andy.Martin@dese.mo.gov • (573) 751-0449 • Sandy Withers, Assistant Director • Sandy.Withers@dese.mo.gov • (573) 522-1487

35. Career Education Finance QUESTIONS???