FINANCIAL MANAGEMENT GUIDE PENNSYLVANIA …

[Pages:182]DRAFT 2017

FINANCIAL MANAGEMENT GUIDE PENNSYLVANIA DEPARTMENT OF LABOR & INDUSTRY

COMMONWEALTH OF PENNSYLVANIA

This FINANCIAL MANAGEMENT GUIDE is transitional and operational workforce system guidance designed to strengthen

fiscal accountability and provide information for analysis, monitoring, and evaluation as it pertains to the Workforce

Innovation and Opportunity Act.

This GUIDE supports the Department's Oversight and Monitoring Policy.

FINANCIAL MANAGEMENT GUIDE

Contents

Introduction: Commonwealth Financial Management GuAidbeo(uFtMthGe) Commonwealth Workforce Development System

Workforce Innovation and Opportunity Act OMB Uniform Guidance PA Financial Management Gujde One-Stop System Funding One-Stop Operator Procurement

Chapter 1: Grantee or Fiscal Agent (if one has been designated) Introduction Sub-Award Notification Fiscal Reporting Fiscal Reconciliation Fiscal Monitoring

Continuity of Operations/Disaster Plan

Chapter 2: Financial Management Standards Introduction Bonding Requirements Cash Management Standards Cash-on-Hand Check Signatory Computer Back-up Incident Reporting Procedures Internal Controls Special Consideration to Incentives in the Form of Cash Equivalents Procedures Relating to Compliance With OMB Circulars Records Retention and Audit Provisions Time and Attendance Records Unclaimed Checks Annual and Quarterly YTD Budget Comparisons Audit Trails and Source Documentation What Qualifies As Sufficient Source Documentation? BWDA Requirements

Chapter 3: Funding Distribution and Provisions Introduction Program Income Interest Income Program Income Exclusions Accounting for Revenue and Cost of Generating Program Income

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Intro-1

Intro-1 Intro-1 Intro-2 Intro-2 Intro-2 Intro-3

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2-7 2-7 2-8 2-9 2-10 2-10 2-11 2-11

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Contents

Accounting for the Expenditure of Program Income Uses of Program Income PA CareerLink? Program Income Reporting of Program Income on the RSAB and FSR Pell and Similar Grants Training Reimbursements Request for Funds (RFF)

Requesting Rapid Response Additional Assistance (RRAA)

Contractor Responsibility Program (CRP) List of Parties Excluded from Federal Procurement Pennsylvania State Debarment List

Chapter 4: Accounting for Funds Introduction WIOA Costs Shall Be Limited to Allowable Costs Restrictions Administrative Cost Limit Administrative Functions Payments Partial Listing of Selected Items of Cost and Treatment Advertising and Public Relations Costs Audit Costs and Related Services Bad Debts Back Payments Buy American Act Collective Bargaining Agreements Compensation for Personal Services Conflict of Interest Copyrights, Patents, and Royalties Contingency Provisions Costs Resulting from Organized Campaigns Costs of Local Boards Debarment or Suspension Depreciation Donations and Contributions Drug-Free Workplace Duplicate and Overlapping Payments of Services Education Curricula Employee Health and Welfare Costs Employment Generating Activities Entertainment Costs Failure to Participate in Training Fees and Profits Fees for Placement Fees from Participants Fines and Penalties Fraud and Abuse

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3-4 3-5 3-6 3-6 3-8 3-8 3-9

3-9

3-11 3-11 3-11

4-1 4-1 4-1 4-1 4-1 4-2 4-2 4-3 4-4 4-5 4-5 4-5 4-5 4-5 4-5 4-6 4-6 4-6 4-7 4-7 4-7 4-7 4-8 4-8 4-8 4-8 4-8 4-9 4-9 4-9 4-9 4-10 4-10 4-10 4-10

Contents

Fund Raising and Investment Management Costs Goods or Services for Personal Use Idle Facilities and Idle Capacity Incentive Payments Incumbent Worker Wages Interest Costs Lease-Purchase Agreements Legal Expenses Lobby Local Board Member Compensation Maintenance of Effort Memberships, Subscriptions, and Professional Activity Costs Misuse of Funds Nepotism Occupations Not In Demand On-the-Job Training (OJT) Payments and Working Conditions Political Activities Pre-Award Costs (Pre-Agreement Costs) Prior Approval Requests Public Service Employment Questioned Costs Real Property Relocating Establishments S Sectarian Activities Start-Up Costs Student Activity Costs Sub-Grants Trail Costs Union Organizing Use Allowance Cost Allocation Guidelines Types of Indirect Cost Rate Proposals (ICRPs) (999E(l(e(ImCReBnsts)(oICfRCPoSs)t and Their Allocability Treatment of Costs Cost Pools Many Types of Pools Cost Pool Management Allocating Personnel Service Costs Allocation Bases Cost Allocation Plans(CAPs) Alternative Time Distribution Salary Cap

Chapter 5: Reallotment, Reallocation, Transfer, and Reporting Requirements

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5-1

Contents

Introduction Reallotment of Funds Among States Reallocation of Funds Within the Commonwealth Eighty Percent (80%) Obligation Requirement

Year of Funds to be Recaptured/Re-allocated Involuntary Recapture of Funds Voluntary Recapture of Funds Seventy Five Percent (75%) Out-of-School Youth Obligation Requirement Twenty Percent (20%) of Youth Funds to be Used for Youth Work Experience Fund Availability Requirement State Availability Local Workforce Development Area Availability Transfer of Funds Special Programs

Chapter 6: Financial Management System Functions Introduction Financial Management System Reference Manual Authorized Access by Local Area Personnel to CWDS Enabling Access Disabling Access Award and Fiscal Agent Information Requests for Drawdowns Requesting Additional Account Information through VDMU Expenditure Reporting Accrual Method of Accounting Definitions/Differences between Accruals and Obligations Accruals Obligations Diff Differences between Accruals and Obligations Accruing Administrative and Staff Costs - Examples Salaries of Employees Annual Leave (Unfunded) Annual Leave (Funded) Travel Expenses Public Utilities Leases Advance Payments Individual Training Account (ITA) Training Institution Payment Policy Training Contracts On-the-Job Training Final Financial Status Report Documentation and Support of Transactions Implemented on the FMS Attachment 6-1: Financial Management System Reference Manual

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6-1 6-1 6-2 6-2 6-2 6-3 6-3 6-3 6-4 6-4 6-5 6-6 6-6 6-6 6-6 6-7 6-7 6-7 6-8 6-8 6-8 6-8 6-9 6-9 6-10 6-10 6-10 6-11 6-11 6-11

Contents

Chapter 7: PA CareerLink? Resource Sharing Introduction

Department Roles PA CareerLink? Roles

Local Workforce Development Board PA CareerLink? Operator PA CareerLink? Partnerships PA CareerLink? Partners PA CareerLink? Budget Resources Memorandum of Understanding (MOU) PA CareerLink? Partner Agreement Resource Sharing Agreement Resource Sharing Agreement Budget (RSAB) RSAB Template Shared Operational Costs Allocation Methodologies Funding of the PA CareerLink? Infrastructure PA CareerLink? Staffing Survey Resource Sharing Agreement Budget Timeline Resource Sharing Agreement Budget - Financial Status Report (RSAB-FSR) Resource Sharing Agreement Budget (RSAB) - Modifications RSAB Open Modification Period as Defined in the RSA Signature Requirement Attachment 7-1: Resource Sharing Agreement (RSA) and Budget (RSAB)

Chapter 8: Closeout Procedures Closeout Requirements (Non-CARS NOOs) Explanation of Forms Late Submissions Refunds and Audit Disallowances Refunds After Closeout

Chapter 9: Audits and Debt Collection Introduction Special Provisions General Audit Information Auditor Independence Personal Impairments Audit Requirements Remedies for Recipient Noncompliance with Audit Requirements, Monitoring Reports, and Other Compliance Requirements Stand-In Costs Leveraged Funds Fiscal Agent Audit Requirements Local Area Fiscal Agent Audit Plan Format for Schedule of Expenditures of Federal Awards Reporting of Stand-In Costs

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8-1 8-1 8-1 8-2 8-3 8-3

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Components of a Single Audit Report Audit Report Submission Record Keeping Resolution of Audits, Monitoring, and Fiscal/Performance Reviews Appeal Procedures Debt Collection Lower-Tier Sub-Grantee Audit Requirements Audits of Lower- Tier Sub-Grantees Audits ($750,000) Audits (less than $750,000) Resolution of Lower-Tier Sub-Grantee Audits Appeal Procedures for Lower-Tier Sub-Grantees Debt Collection of Lower-Tier Sub-Recipient Audits Repayment Reprogramming Audit Resolution Flow Chart ? State Level Debt Collection Flow Chart ? State Level

Chapter 10: Procurement and Property Management Procurement Methods of Procurement Procurement Claws Procurement Details Local Area Procurement Policy Local Area Procurement Practice Elements Procurement Practice to Avoid Disallowed Costs Actions to Correct Contracts Simplified Acquisition Threshold Piggybacking on a State Contract Costars Performance Based Contracting Property Management Overview Responsibilities of the Commonwealth, Grantees, and Sub-Grantees Types of Property Procedures for Requesting Approval for Property Acquisitions Bidding Procedures and Quotations Leasing or Renting Non-expendable Personal Property Property Management Equipment Ownership Property Acquisition Steps Flow Chart Final Disposition of Property Flow Chart

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10-1 10-1 10-1 10-2 10-3 10-4 10-5 10-8 10-8 10-8 10-9 10-9 10-9 10-10 10-10 10-12 10-13 10-13 10-14 10-15 10-19 10-20 10-21

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Contents

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