dollars and sense of adult education a business manager’s perspective presented by: deb roberts...
TRANSCRIPT
Dollars and Sense of Adult Education
A Business Manager’s Perspective
Presented by:
Deb Roberts
Business Manager
MSAD #52 Greene, Leeds, and Turner
Today’s Objective
To give attendees a clear understanding of the financial components of an Adult Education Program.
Topics
• Budget – Revenue and Expenditures
• Account Codes• Subsidy• Financial Statements• Grants• Fraud Prevention
Budgets
Budgets have two sides to the equation–
Revenue – Monies received in your programCourse feesLocal appropriationState subsidy
Expenses – The costs to run your programPayroll and related benefits for employeesSupplies/MaterialsEmployee training
Revenue
Ask yourself these questions at budget time –
•How much revenue should I anticipate to receive from my programs?•How much subsidy should I expect to receive next year?•How much local contribution should I ask for from my community(ies) next year?
Expenses
Ask yourself these questions as well at budget time –•What programs do I plan to run next year?•How much will it cost to run each of these programs?•How much will it cost for the operations and maintenance of my adult ed facility?•How much will it cost for the administration of our program?
Example
Article 20 - Adult Education2015-16 2014-15
EXPENDITURES Proposed Current 2013-14
Budget Budget SpentAdministration $146,468 $143,694 $133,846
Building Maintenance $23,186 $23,254 $24,845
Transitions $26,855 $25,167 $15,442
Workforce Training $47,756 $52,167 $31,139
Adults with Disabilities $4,615 $4,614 $1,860
High School Completion $96,673 $89,258 $64,323
Literacy $19,383 $17,469 $8,124
Enrichment $24,230 $24,230 $51,047
TOTAL: $389,166 $379,855 $330,627
2015-16 2014-15
REVENUES Proposed Current 2013-14
Budget Budget ReceivedLocal Assessment $154,210 $149,210 $149,217
State Subsidy (estimated) $87,933 $89,784 $81,395
16-20 Year Old Revenue $68,237 $57,476 $49,709
Vocational Ed Registrations $47,556 $52,155 $29,890
High School Completion, GED (Summer) $1,000 $1,000 $984
Miscellaneous $6,000 $6,000 $6,000
Enrichment $24,230 $24,230 $51,922
TOTAL: $389,166 $379,855 $369,118
Subsidy
There are two different types of Subsidy that are generated by Adult Ed programs:
•Subsidy based on program revenues and expenditures from the prior fiscal year
•Subsidy that is based on Academic Adult Education courses taken by 16 – 20 year old students
Subsidy Calculator
Your annual subsidy is calculated using the following subsidy calculator sheet:
Adult Ed Subsidy Calculator.xlsx
Account Codes
Why does it matter?
•DOE uploads financial data from MEDMS to determine your district’s subsidy each year
•AEFLA match compliance is determined by the correct cost center
Account codes
XXXX-XXX-XXXX-XXXX-XXXXFund - 1500 Adult Education Program6150 Enrichment Program2950 AEFLA/ABE Federal Grant
Cost Center –
400 – Adult Education 409 – Adult Education AEFLA grant match eligible
Program/Function –
Account codes
6000-2329 - Advisory Council 6000-2300 - Administration 6000-2600 - Custodial 6000-2610 - Operations/Maintenance 6050/1000 - ITV programs 6060/1000 - Adult Transitions* 6090/1000 - ASPIRE/Work Ready* 6095/1000 - Community Service 6100/1000 - Federal Literacy *Eligible for AEFLA match – must use cost center 409
Program/Function (Continued) –
Account codes
6200/1000 - Enrichment (only use with fund 2015 or 6150) 6300/1000 - Workforce Training* 6400/1000 - Handicapped 6500/1000 – High School Completion* 6600/1000 – Local Literacy* 6700/1000 – Adult CTE (Carl Perkins programs) 6800/1000 – Even Start – Family Literacy 6900/1000 – Other Family Literacy Programs
*Eligible for AEFLA match – must use cost center 409
Expense Object – 1000 series – Employee salaries2000 series – Employee benefits3000 series – Purchased professional/technical services4000 series – Repairs/maintenance/support contracts 5000 series – Utilities/postage/printing6000 series – Supplies and materials7000 series – Equipment8000 series - Miscellaneous
Account codes
Account Codes
Revenue object –
1114 – Local Assessment1358 – Subsidizeable Course Fees1359 - Non-subsidizeable Course Fees3240 – State Subsidy 4581 – AEFLA grant funds
Account codes Quiz
1. 1500-400-6000-2610-6000
2. 2950-000-0000-0000-4581
3. 1500-409-6500-1000-7300
4. 6150-400-6200-1000-3590
5. 1500-400-6000-2300-5310
Translations
1. Adult Education Operations/Maintenance Supplies/Materials
2. AEFLA Grant Revenue
3. Adult Education AEFLA match eligible High School Completion Equipment
4. Enrichment Purchased Professional Services
5. Adult Education Administration Postage
For more information please go to the following DOE link:
http://www.maine.gov/education/data/handbook/handbookmenu.htm
Account codes
Financial Statements
• Give you a snap shot of where your revenue and expenses stand throughout the year
• Should be reviewed on a monthly basis at the very least –Both Revenue and Expenditures
revenue financial statement.pdf
expenditure financial statement.pdf
Grants
Grants can be a wonderful resource of additional funding for Adult Education programs, but they certainly require extra work for you – Here are a few guidelines to follow – •If required - Get prior approval from your Business Manager and Superintendent before submission of your application
Grants
Once you are notified that you have been awarded the grant:
•Provide a copy of your grant application, budget, and award letter to your Business Office •Follow all grant reporting deadlines•Follow all grant expenditure deadlines•Be sure to follow the process required to attain the funds
Fraud Prevention
Did someone say “Frog Protection?
Fraud Prevention
That’s right, we’re definitely on the same page!
Definition of Fraud
Fraud is deliberately deceiving someone else with the intent of causing damage. This damage may not be physical damage --in fact, it is most often financial.
The Fraud Triangle
According to Donald Cressey, author of Other People’s Money, there are three factors that must be present at the same time in order for someone to commit fraud:
•Motivation
•Opportunity
•Rationalization
Internal Controls Help Prevent Fraud
Internal controls are simply “good business practices” that limit the opportunity for fraud to take place. They include anything which serves to:
Safeguard assets Ensure the validity of financial records and reports Promote adherence to policies and procedures Improve the effectiveness and efficiency of
the program Avoid the risk of public scandal
How are internal controls implemented?
Separation of duties: Duties are divided so that no one person has complete control over a key function or activity
Authorization and Approval: Proposed transactions are authorized when they are consistent with policy and funds are available
Review and Reconciliation: Records are examined and reconciled to determine that transactions were properly processed and approved.
How are internal controls implemented?
Physical Controls: Equipment, inventories, cash and other assets are secured physically, counted periodically and compared with amounts shown on records.
Training and Supervision: Well trained and supervised employees help ensure that control processes function properly
Documentation: Well documented policies and procedures promote employee understanding of job duties and help ensure continuity during employee absences and turnover
Internal Control Problems Frequently Noted
Financial reports not prepared timely Inadequate documentation to support activity Failure to reconcile cash balances monthly Errors within reports Bank reconciliation does not agree to general ledger balance Stale dated checks Untimely deposits Lack of purchase requisition orders and approval Lack of segregated duties Lack of administration oversight
Internal Controls and Fraud
Internal controls are meant to keep honest people honest
No internal control is going to be “perfect” Audits are designed to test internal controls- not
monitor Cost/Benefit: Costs associated with control processes
should not exceed expected benefits
Case Study
An employee skims $30,000 from Adult Education course fee payments
How was it identified?
• The district was looking to hire a full time administrator for the program and identified funding they believed to be available for the position wasn’t really available
• An administrator reviewing the cause of the shortfall identified irregularities between the cash received and the deposits actually made to the district office
How did it happen?
• The Adult Education program allowed cash payments to be collected by several employees
• No receipts were written for payments received
• Program records were paper based and not integrated with the district’s financial software program
• Program had an annual budget of $870,000 without a full time administrator in charge of oversight of the program
How Could It Be Prevented?
• All payments should be accepted by only one employee (if at all possible)
• Receipts should be written any time money is collected
• Accounting records for Adult Education should be integrated with the district’s financial software
• Oversight of the program should be increased
Conclusion
As far as I know no Adult Education Director has ever been fired due to a poor curriculum---
Sooooo……
Pay attention to the dollars and sense
Questions?
Surveys
