Welcome to Workforce3
One
U.S. Department of Labor
Employment and Training
Administration
Webinar Date: July 25 2014
Presented by:
Office of Financial & Administrative
Management
U.S. Department of Labor
Employment and Training Administration
Where are you?
Enter your location in the Chat window – lower left of screen
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Presenter
Maggie Ewell
Office of Financial &
Administrative Management
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Learning Objectives
• Identify your required match
• State the definition of match and what counts as
match
• Know the requirements and consequences
associated with match
• Understand financial reporting requirements
• Know the 9130 line by line
YCC Match Requirements
• 25% of grant award
• Cash or in-kind resources
• Encouraged to provide a progressive
match, which increases with each year of
the grant
• Tracked and reported quarterly
• Expenditure of Match funds must be for
an allowable expense
What is my match amount?
Can be found in your:
• Grant Agreement
• SF424 – line b
• SF424a – Section C
Match
AKA Non-Federal or Recipient Share
Match
(Non-Federal Share)
• 25% required
• All contributions must be:
– Spent on allowable activities
– In accordance with cost principles
– Reported on the ETA-9130
• Can’t be BOTH match &
charged to grant
DOL Matching Requirements
• 29 CFR 97.24
– State, local and Indian Tribal governments
• 29 CFR 95.23
– Non-Profits, Hospitals, Institutions of Higher
Education and Commercial Organizations
• SGA
YCC Match Examples
• Paid work experience for participants
• In-kind resources such as staff time associated
with curriculum development
• Tuition, fees, and any relevant supplies for
participating high school students taking postsecondary courses
• Services like time spent tutoring from staff
• Providing professional development
Cash Contributions
• Additional funds or services provided &
paid for by the grantee
• 3rd party cash contribution
– To the grantee organization
• Allowable services under
the grant
In-Kind Contributions
• Not paid by grantee or subgrantee
• Allowable costs & services
• Requirements for determining value
– 29 CFR 97.24(b)(7)
– 29 CFR 95.23(c-h)
In-Kind Contributions
• Personnel services
– Employer share of wages
– Volunteers or paid non-grantee staff
• Services
• Equipment & supplies
• Space
Failure to meet match
If you do not meet your match
requirement by the end of your
grant, the amount of DOL grant
funds may be decreased
proportionally
Why wouldn’t I meet the match requirement?
• Did not report enough funds on final 9130 Report
to meet commitment on SF424a
• Costs unallowable for match
• No stand-in costs available
• No grant modifications to reduce match will be
approved
How can I make sure this doesn’t
happen to me?
• Report your recipient share quarterly
• Report allowable as match leveraged
resources in excess of match
requirement to serve as stand in costs
• Check with your FPO if you have any
questions about whether costs are
allowable
Records
• Source documentation
– Books of account
– Available for audit & review
• Support for 3rd party contributions
– Verifiable from subgrantee records or
– Maintained by grantee
– Methods used to value in-kind
Source Documentation
• In-Kind and Cash Match must be
adequately documented
– Must be verifiable from the recipient’s
records
– Written financial and administrative policies
should address the collection, tracking and
documentation of match
ETA 9130
• Reported on the ETA-9130 – Recipient Share
– Match
– Excess match
– Federal Funds expended by grantee and
subgrantee
Questions??
Financial Reporting Requirements
• DOL Regulations
– 29 CFR 97.41
– 29 CFR 95.52
• Grant Agreement Specifications
• TEGL 13-12
ETA-9130 Reporting Basics
• BASIS: Accrual
• FREQUENCY – Quarterly
• DUE – 45 Days after quarter end
for ALL ETA Programs
• Final Quarterly Report – Due 45 days after grant end
or expiration of funds (whichever comes first)
• Closeout Report – Due 90 days after grant end
(triggered by DOL acceptance of Final Report)
• Transmission Method – ETA on-line reporting system
Cash-based vs. Accrual-based
“Mind the Gap”
• Cash-based accounting
– Income recorded when received and
expenditures recorded when paid
• Accrual-based accounting
– Income recorded when received and
expenditures when the service is received
or product delivered
Accrual Reporting
Why?
• Required for ALL ETA programs
• Provides more reliable data
• Cash basis understates true spending
• Failure to report on accrual basis may
result in loss of funds
Expenditure Period
• The Period of Performance for the YouthBuild Program is
an expenditure period [not an obligation period].
• Thus, only accrued expenditures incurred during the grant period
are allowable. No additional costs can be incurred after the end of
the grant period even if obligations were established during the
grant period.
• Expiration of Expenditure Period
• The only liquidation that can occur is a liquidation of the accruals for
goods and services received during the grant period - this allows time
for receipt and payment of invoices for those accrued expenditures.
• FINAL & CLOSEOUT Reports
– Requires a FINAL report via e-grants reporting system and a
CLOSEOUT report via e-grants reporting CLOSE-OUT system.
Federal Financial Management &
Reporting Definitions
• TEGL: 28-10 issued May 27, 2011
• Provides clarification on definitions and
examples of key financial terms
– Disbursements, expenditures and
obligations
Obligation or Accrual
• Order placed
– Delivery and payment in future
• Obligation, not accrual
– Delivery taken, payment in future
• Obligation
• Accrued expenditure
• Payment & delivery simultaneous
– Obligation
– Accrued expenditure
– Cash outlay
Accrual Accounting
What Does It Mean?
• Transactions are recognized in
accounting period in which they occur
• Revenue is recognized when received or
earned
• Expense is recognized when incurred
– May be cash disbursement
– May be delivery of goods/services
Accrued Expenditures
Cash disbursements
PLUS
Goods and services received
but not yet paid for
Types of Accrued Costs
• Salaries of employees
• Training
• Travel expenses
• Rental costs
Salaries of Employees
• Obligation
– When salaries are earned
• Including related items
• Retirement fund contributions, etc.
• Accrued expenditure
– At the time the salaries are earned
– When the services are rendered
• Simultaneous recording
Training Contracts
• Single Semester
– Contract to obligate funds and pay on an “as
training received” basis
Travel Expenses
• Obligation
– Travel actually performed
– Ticket purchased
– Not issuance of travel authorization
• Accrued expenditure
– Travel actually performed
– Ticket purchased
• Simultaneous recording
Rental Costs
• Obligations
– Lease agreement signed
– Amount = maximum payment for termination
• Not entire lease amount
• Accrued Expenditure
– As service is provided
• Space is occupied
– Maybe paid in advance
What are NOT Accruals?
• Obligations for which goods or services
have NOT been received
• Orders placed for which goods or
services have NOT been received or paid
• Performance contracts in which
benchmarks have NOT been achieved
NOTE
ALL accrued expenditures
are obligations
BUT
NOT ALL obligations
are accrued expenditures
Knowledge Check
Type of activity
Good/services received and paid
for
Good/services received but not
paid for
Good/services ordered, paid for
but not received
Good/services ordered but not
received and not paid for
Obligation
Accrued Expenditure
Federal Cash
• 10.a. Cash Receipts
– Tied to PMS drawdowns
– PMS draw amount appears above 10a
• 10.b. Cash Disbursements
– checks, cash, advances to subs
• 10.c. Cash on Hand
– 10.a. minus 10.b.
Federal Expenditures and
Unobligated Balance
• 10.d. Total Federal Funds Authorized
– Grant award
• Pre-entered for most ETA grants for first
reporting quarter
• 10.e. Federal Share of Expenditures
– ACCRUED expenditure
Federal Expenditures and
Unobligated Balance
• 10.f. Total Administrative
Expenditures
– That portion of 10.e.(expenditures)
attributable to administrative costs
– Follow appropriate guidance on
administrative vs. program costs
Administrative Cost Limitations
•
10% as specified in grant agreement
•
Line item 10.f. identifies administrative
portion of total federal expenditures
• Provides ability to assess compliance
with administrative limitation
Federal Expenditures and
Unobligated Balance
• 10.g. Federal Unliquidated Obligations
-10.h.(Obligations) minus 10.e. (Expenditures)
• 10.h.Total Federal Obligations
-10.e.(Expend.) plus10.g.(Unliquid. Oblig.)
• 10.i. Unobligated Balance of Federal
funds
- 10d.(Authorized) minus 10.h.(Obligations)
Recipient Share (Match)
• 10.j. Total Recipient Share Required
– Minimum 25% required
• 10.k. Recipient Share of Expenditures
– Non-DOL/non-Federal expenditures
incurred for purposes of subject grant
• Leveraged resources
Recipient Share
(Reporting of Match & Leveraged Resources)
10j
Total Recipient Share Required
10k
Recipient Share of Expenditures
10l
Recipient Share of Unliquidated Obligations
10m
Total Recipient Share (sum of Lines 10k and 10l)
10n
Remaining Recipient Share to be Provided (Line 10j minus
Line10m)
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Recipient Share
• 10.l. Recipient Share of Unliquidated
Obligations
– 10.m.(obligatiions) minus10.k (expenditures)
• 10.m. Total Recipient Obligations
– 10.k.(expend.) plus 10.l.(unliquid. oblig.)
• 10.n. Remaining Recipient Share to Be
Provided
– 10.j.(required) minus 10.m.(obligated)
Program Income Reporting
• 10.o. Total Fed. Program Income
Earned
– Production of curriculum
– Sale of products to non-Federal
organizations
• 10.p. Program Income Expended
• 10.q. Unexpended Program Income
Program Income
• Must be earned as result of allowable
grant activity
Program Income
• 29 CFR 97.25(g) – Two Main Types
– Deduction: Reduces the grant amount.
– Addition: Supplements the grant amount.
• ADDITION – for all ETA programs
– Within Addition, there is Net Method and
Gross method.
Program Income Accountability
• NET – Line 10.o. reflects total PI earned
minus costs incident to generating it
– No cost reported on line 10.e.
• GROSS – Line 10.o. reflects 100% of PI
earned
– Costs incident to generating it were charged
to the grant on line 10.e.
Program Income: Net or Gross –
What’s the Difference?
• Whether or not you charged the grant for the activities that
generated the program income.
Net Method
• If you used program income earned to cover the cost of
activities, then Line 10o reflects the balance of PI received
and PI used to cover costs.
Gross Method
• If you did charge the grant, then all of the program income
earned would be reported on Line 10o and what you charged
the grant would be on 10e.
Additional Expenditure Data Required
• 11.a. Other Federal Funds Expended
• Leveraged Resources
– DOL – WIA Funds
– Dept of Ed Funds
– HUD
Data Sources for Financial Reporting
• Accounting system
• Accrual worksheets to convert
from cash to accrual reporting
• Subgrantee reports
E-grants: Online Reporting System
• Password and Pin Required
– E-mail request to: [email protected]
• For issues with passwords and pins contact:
– Shantay Logan: [email protected]
– For technical issues contact helpdesk:
[email protected] or (202) 693-2682
• Access to all reports by sub accounts
U.S. Department of Labor
Grantee Reporting System
Password:
Login
Accessing Reporting System
• Follow instructions in Execution letter or as
otherwise provided by ETA
• Email sent to primary contact with
password and PIN
– Password issued to access system
– PIN issued to certify data
On-Line Reporting
• Mandatory quarterly submission
• Modifications can be made requiring
re-certification of report
• After 2 quarters of data are accepted by
Federal Project Officer, 1st of 2 quarters
will lock
Data Integrity
• Grantees are in charge of data
• Incomplete or erroneous
data and/or late submittal
of reports impacts ETA’s financial credibility
• Further funding for ETA programs is contingent
upon expending this year’s funds this year
True or False?
• An accrual basis of accounting is
required for data entered on the 9130
reports.
• There is no administrative cost
limitation for your grant.
• Since you do not have a match
requirement, you are not required to
report leveraged resources.
Fiscal Online Training
https://etareporting.workforce3one.org/page/financial
•
Accrual Accounting
•
Indirect Costs and Applying for an Indirect
Cost Rate for Non-Profits
•
Accrual Reporting
•
Administrative and Indirect Costs
•
Intellectual Property Course
•
Audit Requirements
•
Introduction to Financial Reporting
•
Cash Management
•
Introduction to Grant Applications and
Forms
•
Cost Allocation, Cost Pooling & Time Distribution
•
Introduction to Procurement Requirements
•
Cost Classification, Administrative Costs &
Program Income
•
Leveraged Resources and Match
•
Cost Principles & Selected Items of Cost
•
Intellectual Property
•
Equipment, Facilities, Capital Improvements &
State Workforce Agency Real Property
•
Monitoring
•
Program Income
•
Federal Cost Principles
•
Reporting Obligations
•
Federal Funding Accountability and Transparency
Act (FFATA)
•
Subrecipient Reporting
•
Uniform Administrative Requirements &
many more webinars
•
Financial Management Principles
•
Grant Closeout
Please enter your questions in the Chat Room!
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Thank You!
Find resources for workforce system success at:
www.workforce3one.org
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