GASBO 2016 GaDOE. RESA Indirect Costs, Funding, and Other Issues November 10, 2016 Amy Rowell Financial Review

Transcription

1 GASBO 2016 GaDOE RESA Indirect Costs, Funding, and Other Issues November 10, 2016 Amy Rowell Financial Review 11/7/2016 1

2 AGENDA Indirect Costs Purpose and Definition Indirect Cost Rate Calculation RESA QBE Funding Formula Other Grants Awarded to RESAs Fiscal Reporting Requirements 11/7/2016 2

3 Indirect Cost 11/7/2016 3

4 Indirect Cost An indirect cost rate is a means of determining, in a reasonable manner, the percentage of allowable general management costs that benefit each federal program or activity. Indirect costs are generally administrative costs such as the salaries and expenses for staff engaged in organization wide activities. 11/7/2016 4

5 Indirect Cost Indirect costs are recovered only to the extent of direct costs incurred. The indirect cost rate is applied to the direct cost amount expended, not to the grant award. The source of information utilized to determine indirect cost rates are the LEA's official FIN003 Financial Analysis Reports (DE 46). 11/7/2016 5

6 Indirect Cost Direct Costs those that can be identified specifically with a particular cost objective. These costs may be charged directly to grants, contracts, or to other programs against which costs are finally assigned. Typical direct costs chargeable to a grant include, but are not limited to: Compensation of employees for the time devoted and identified specifically to the performance of those programs; Cost of materials acquired, consumed, or expended specifically for the purpose of those programs; Travel expenses incurred specifically to carry out the program; etc. 11/7/2016 6

7 Indirect Cost Indirect Costs Incurred for a common or joint purpose benefiting more than one cost objective. Not readily assignable to the cost objectives specifically benefitted, without effort that is disproportionate to the results achieved. Typical examples: procurement, payroll, personnel functions, maintenance and operations of space, data processing, accounting, auditing, budgeting, communications (telephone, postage), etc. 11/7/2016 7

8 Indirect Cost A cost may not be allocated to a federal program as an indirect cost if any other cost incurred for the same purpose, in like circumstances, has been assigned to a federal program as a direct cost. 11/7/2016 8

9 Indirect Cost Restricted Rates applied to those federal programs with supplement versus supplant rules. This means that the funds are for support in addition to state and local funding. Non Restricted Rates applied to those federal programs not subject to the supplement versus supplant legislative regulations. For LEAs, most common grant is Child Nutrition Cluster. 11/7/2016 9

10 Indirect Cost Restricted Rate Versus Non Restricted Rate Restricted Rate Indirect cost rate pool (numerator) includes only expenditures of general management costs and fixed charges. Non Restricted Rate Expenditures for the Superintendent and operations and maintenance of plant are classified as indirect costs when calculating an unrestricted rate. All other costs are classified the same as the restricted rate calculations. 11/7/

11 Indirect Cost Calculation 11/7/

12 Indirect Cost Calculation FY 2016 Rate Calculated. Using FY 2014 DE 46 Actual Financials. Compares Amount of Indirect Costs calculated by Indirect Costs Reported. Determines the amount that is over or under the amount recovered and carries forward the effect of the difference. 11/7/

13 Indirect Cost Calculation Total Expenditures Identified as Indirect Costs +/ Indirect Costs Recovered Total Expenditures Identified as Direct Costs PLUS Non Allowable Costs = Indirect Cost Rate 470, , ,208, , = 5.47% 11/7/

14 Indirect Cost Calculation How is the Indirect Cost Amount Over or Under the Calculated Amount Determined? Comparing Indirect Costs Calculated to the Amount of Actual Costs Recovered (i.e. Charged) We are using the FY 2014 Actual Expenditures to calculate the FY 16 Indirect Costs Rate. So using the rate that was calculated for FY 2014, we determine the amount of indirect costs that would have been expected based on the direct and unallowable expenditures reported for FY We then compare the amount calculated to the Indirect Costs Recorded Plus the Carry forward adjustment utilized in FY /7/

15 Indirect Cost Calculation How is the Indirect Cost Amount Over or Under the Calculated Amount Determined? 11/7/

16 Indirect Cost Calculation Now Compare the Expected FY 2014 Indirect Costs to the Actual Amount +/ Carryforward 11/7/

17 Indirect Cost Calculation The Amount Recovered OVER the calculated amount will reduce the FY 2018 Rate calculation (which the FY 2016 expenditures will be used to calculate) 11/7/

18 Indirect Cost Calculation Excluded Costs On Behalf Payments Payments to Charter Schools Payments to Residential Treatment Centers Subcontracts in Excess of $25K Capital Outlay Costs RESA Fees Interest Payments Redemption of Bond Principal Amortization of Bond Issuance Transfers Out Special Items Extraordinary Items 11/7/

19 Indirect Cost Calculation Not Allowable School Board Salaries Superintendent Salaries Assistant Superintendent Salaries General Administration Assistants Salaries Related benefits, travel costs for employees listed above School Administration Expenditures (excluding depreciation expense which is Direct) 11/7/

20 Indirect Cost Calculation Types of Indirect Costs Terminated Leave Payments Retirement Incentive Payments Various costs charged to General Administration, Business Administration, Central Office, and Other Support Services 11/7/

21 Indirect Cost Calculation How do you utilize the Indirect Cost rate? Indirect costs are normally charged to Federal awards by the use of an indirect cost rate. Monthly, consider total costs charged to the Federal program, excluding payments to charters, RTCs, capital outlay costs, and terminated leave pay. Apply the percentage to those direct and unallowable expenditures incurred by the Federal program to allocate certain amount to General Fund. The indirect cost rate applied can be less than approved rate, but not more than approved rate. 11/7/

22 RESA State Funding 11/7/

23 RESA Funding O.C.G.A state board shall be authorized to provide each [RESA] with a uniform state wide needs program grant and a documented local needs program grant, subject to appropriation by the General Assembly. shall consist of two components: the same fixed amount for each [RESA]; and an amount which reflects the number of local school systems, the number of schools, the number of students, and the number of square miles contained collectively within its member local school systems. 11/7/

24 RESA Funding What is considered in State QBE Allocation? 1. Number of School Systems Served in EXCESS of 6 2. Number of School Systems Served with FTEs LESS than 3, Number of Schools Served in EXCESS of Number of FTEs Served in EXCESS of 18, Number of Miles Served in EXCESS of 2,500 11/7/

25 RESA State Wide Funding 11/7/

26 RESA Funding Health Insurance All certified employees, funded out of Fund Source 00 (state funds), electing SHBP. October 2015 (2016 1) CPI Report = Health Insurance Funding FY 2017 QBE Appropriation Employer Cost $945 Per Member/Per Month $11,340 Annually Example: 3 Employees = $34,020 in Health Insurance Funding 11/7/

27 RESA Funding This RESA reported 3 certified employees, participating in SHBP, funded by the State funds (Fund Source 00). 11/7/

28 RESA Local Needs Funding 11/7/

29 RESA Local Needs Funding 11/7/

30 RESA Funding RESA Base Cost + Systems Served in Excess of 6 + Systems Served with FTEs less than 3,300 +Schools Served in Excess of 30 +FTEs Served in Excess of 18,000 + Miles Served in Excess of 2,500 = Total RESA QBE Basic Allocation Local = 20% State = 80% 11/7/

31 RESA Funding Total RESA QBE Basic Allocation Local = 20% State = 80% What about Austerity? FY 2017 = Austerity % of State Earnings Example: State Earnings of $1,044,373 Austerity = $577,138 Total State Grant as Reported in GAORS = $467,235 11/7/

32 RESA Funding Other State Grants Education Technology Centers (ETC) Services Grant = $97,186 per RESA Math Mentor Grant = $105, per RESA School Climate Specialist = Varies based on percentage of PBIS participating districts in the RESA. Ranges from $59,000 to $105,195 ELA Professional Learning Specialist = $36,050 11/7/

33 RESA Fiscal Reporting Requirements 11/7/

34 RESA Fiscal Reporting Requirements Submit Financial Data as of June 30 th to GaDOE Financial Data is submitted to the State Accounting Office Financial Information is reported in State CAFR one year in arrears FY 2016 Financial Data provided to SAO in January 2017 Worksheets for converting information needed for CAFR (including notes) updated and maintained by GaDOE Collection Process Administered by SAO 11/7/

35 Questions? 11/7/

36 Contact Information Atlanta Hotline Viola Darrington ( ) Steve Lyle ( ) Debara Montgomery ( ) Russ Swindle ( ) Naylor ( ) Rhonda Metts 11/7/

37 Contact Information Amy Rowell Georgia Department of Education 1652 Twin Towers East 205 Jesse Hill Jr Drive Atlanta, GA /7/