the abc’s of wired financial management june 15, 2006 grand valley state university, fiscal agent

The ABC’s of WIREDThe ABC’s of WIRED Financial ManagementFinancial Management

June 15, 2006June 15, 2006

Grand Valley State University,Fiscal Agent

The Demand-Driven Workforce Investment System

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Presenters:Presenters:Brenda Lindberg, Brenda Lindberg, Assistant ControllerAssistant Controller

Carole Williams, Carole Williams, Senior Accountant, Wired GrantSenior Accountant, Wired GrantGrand Valley State UniversityGrand Valley State University


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Let’s get started…Let’s get started…

Agenda Introduction Federal Financial Rules Procurement Q & A


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IntroductionIntroduction

Role of Grand Valley State University Fiscal Agent Hold the funding for the grant Prepare financial reporting to State/Feds Financial and compliance monitoring Direct Contact: Carole Williams


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How does the money flow?How does the money flow?

Department of LaborFederal/State

GVSU/Fiscal AgentWMSA/Prime

Recipient

Subrecipients Vendors

Subrecipients

Vendors

Vendors


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Vendor vrs SubrecipientVendor vrs Subrecipient

Vendors– Alliance for Health– Collaborative Strategies– Continuous Quality

Improvement Network– IRN, Inc– Lakeshore Advantage– Metrics Reporting– W.E. Upjohn Institute– Work Design

Collaborative

Sub-RecipientsWMSAGVSUGRCCMuskegon/Oceana Consortium


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Vendor vrs SubrecipientVendor vrs Subrecipient

A Vendor… Provides goods and services within normal

business operations Provides similar goods and services to

many different purchasers Operates in a competitive environment Provides services that are ancillary to the

federal program Is not subject to federal compliance rules


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Vendor Payment ProceduresVendor Payment Procedures

Purchase Order provides financial control Payment issued from vendor generated

invoices


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Subrecipient vrs vendorSubrecipient vrs vendor

A subrecipient … Uses federal funds to carry out a program Performs based on federal program

objectives Can make funding decisions – Who? How

Much? Must adhere to applicable federal

regulations and Cost Principles Enters into a binding contractual agreement Uses detailed Program Budget as financial

control for spending Is subject to grantor audit/monitoring


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Rules affecting subrecipientsRules affecting subrecipients

Cost Principles −Determination of allowable costs

Uniform Administrative Requirements−Guidelines for managing grants

Program regulation Grant agreement

•Special Clauses and Conditions Statement of Work (SOW)

Handout 1


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If prior approval requirement exists– BEFORE incurring cost

•Must be requested in writing

•Must be approved– May exist in grant agreement

Approval requests to Grant Officer

Approval ConditionsApproval Conditions


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Set of government-wide rules Applicable to all Federal grants Define conditions for charging costs

– Allowable & unallowable costs– Direct & Indirect costs– Descriptions

What are Cost Principles?What are Cost Principles?


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Selected Items of CostSelected Items of Cost

3 types of costs– Allowable– Unallowable– Allowable with conditions

If cost not treated specifically−Principles of necessary and reasonable

apply

Handout 2


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Labor Reporting– Distribution of salaries and wages to the

award will be based on payrolls documented in accordance with generally accepted accounting practices. Time cards or other forms of after-the-fact payroll documents are acceptable confirmation. If employees are chargeable to more than one sponsored agreement or other cost objective, time and effort certification is required

Cost Principles (cont)Cost Principles (cont)


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To set forth consistent and uniform financial practices

Applicable to all Federal grants Standards for Financial Management

– Accrual Basis of Accounting– Internal Controls– Program Income– Property Standards

What are Admin Requirements?What are Admin Requirements?


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Financial StandardsFinancial Standards

Accounting records– Identify grant funds– Awards, obligations, assets, liabilities,

income, & expenditures– Maintained in accordance with GAAP

Allowable costs– Only allowable costs charged– Only allocable costs charged


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Accrued ExpendituresAccrued Expenditures

Charges incurred in a given period Goods and property received Services performed

−Employees, contractors, subgrantees, etc.

Whether or not a cash payment is made

All reports must trace to source documentation


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Internal ControlsInternal Controls

System to safeguard integrity of funds

Accounting system– Timely recording of expenditures– Qualified personnel– Limited access to records

Separation of duties– Dual signatures for checks– Reconciliations by different staff– Timesheets and payroll approvals


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Budget ControlsBudget Controls

Accounting records need to track to budget categories− Linking spreadsheets or

chart of accounts Spending within approved line

items Monitor costs and make

adjustments Indication of potential

modification needs


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Incorporated by reference– Uniform Administrative Standards

•29 CFR Part 96 and 99, Single Audit Act

•29 CFR Part 93, Lobbying Certification•29 CFR Part 37, Nondiscrimination•29 CFR Part 98, Debarment and

Suspension•29 CFR Part 95, 97 Procurement

Grant AgreementGrant Agreement


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ProcurementProcurement

Process to obtain goods and services Full & open competition Written procedures System to ensure performance Cost or price analysis Awards only to responsible parties Documentation of award Settlement process and protest procedures Use of small businesses, minority-owned &

women’s businesses (Part 95)


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Procurement MethodsProcurement Methods

Small Purchase−Federal threshold

Invitation for Bid −Technical services

Competitive Proposal−Often used for service delivery

Non-competitive Proposal−AKA Sole Source


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Special Clauses and Conditions

– Sole Source selection requires prior written approval of State of Michigan Grant Officer

– Individual Consultant Fees limited to $500 day without prior USDOL approval

Procurement Exceptions Procurement Exceptions


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Approved format

−Service Need−Lack of competitive market−Cost Justification

Sole Source Exception Sole Source Exception


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Financial ReportingFinancial Reporting

Financial Statement Format Use accrual basis of accounting Compares budget to period-to-date Requires certification of Fiscal Officer Monthly submittal requested Serves as payment request Electronic remittance available

Handout 3


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Financial AuditFinancial Audit

Financial records to be available for audit purposes: Approved budget Accounting ledgers to support the reported expenses Bills and invoices for the reported expenses Labor distribution reports Time and effort records Inventory records of property costing $5,000 or more Program income records Procurement policies Sole Source Vendor documentation

“This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U. S. Department of Labor’s Employment and Training Administration. The solution was created by the grantee and does not necessary reflect the official position of the U. S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.”


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Question & AnswerQuestion & Answer

the abc’s of wired financial management june 15, 2006 grand valley state university, fiscal agent

Documents

financial controlpayment

federal grantsstandards

federal funds

federal programis

federal compliance rules

federal program objectivescan

applicable federal regulations

cost principles cont