10/21/2009 Page 1 Financial Management: Timekeeping.

10/21/2009 Page 1

Financial Management:

Timekeeping

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Timekeeping:Overview

Written Policies

Split-Funded Positions

100% Federally Funded Positions

Paraprofessionals

Estimations

Quarterly Comparisons

Adjustments and Revisions

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Timekeeping:Regulations

OMB Circular A-87, Attachment B, Item 8h

PowerPoint: Federal Fiscal Requirements. Michigan Department of Education, Office of School Improvement

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Timekeeping: Definitions and Terms

Cost Objective - a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred

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Timekeeping: Definitions and Terms

Personnel Activity Report (PAR) - record maintained by employee working on more than one cost objective which is prepared after the fact, for the total activity of the employee, at least monthly and signed and dated by the employee

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Timekeeping: Definitions and Terms

Semi-Annual Certification - certification that employee worked on a single cost objective.  Must be prepared at least semi-annually, signed, and dated by employee or supervisory official having firsthand knowledge of the work performed

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Timekeeping: Content

Financial Management System

(FMS)

Federal Timekeeping Requirements

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Timekeeping: Components of a Good FMS

Written Policies and Procedures New Staff/Position Training Adherence to Approved Policies and

Procedures Annual Review and Training Updates Timely

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Timekeeping: Payroll Components

There are written policies and procedures governing payroll administration

Salaries from the Financial Expenditure Report (formerly DS-4044) agree with the district’s general ledger payroll accounts for all federal grant programs

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Timekeeping: Payroll Components

All salary costs for work performed are within the grant period

Salaries must comply with the employment contract which indicates the annual salary scale for the grant period

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Timekeeping: Written Policies

There are written policies on recording time distribution for employees who work on one or more federal cost objectives

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Timekeeping: Split-Funded

For split-funded employees:

The district has Personnel Activity reports (PARs)

• Instructional staff may use their lesson plans to confirm their written schedules if they meet all of the other PAR requirements

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Timekeeping: Split-Funded

The PARs are prepared at least monthly

The PARs are signed and dated by the employee

The PARs account for the staff person’s total activity

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Timekeeping: Split-Funded

The PARS are real-time records and not prepared in advance of the time period covered

• If lesson plans are used as PARs, the teacher must make daily progress notations

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Timekeeping: 100% Federal Funded

For 100% federally funded or “single cost objective” school district employees:

The district has certifications or a blanket certification show that the employees worked solely on a single federal award or cost objective

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Timekeeping: 100% Federal Funded

The certifications are prepared at least semi-annually

The certifications are signed by the employees or a supervisor with first-hand knowledge of the work performed by the employees and are dated

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Timekeeping: 100% Federal Funded

The certifications are real-time records and not prepared in advance of the time period covered

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Timekeeping: Paraprofessionals

Paraprofessional may use their regular timesheets as long as they meeting the following:

• The timesheets are an after-the-fact distribution of their actual activity

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Timekeeping: Paraprofessionals

The timesheets account for the total activity for which they are compensated, showing the hours or percentages for the programs that they worked on

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Timekeeping: Paraprofessionals

The timesheets are prepared at least monthly and coincide with one or more pay periods

The timesheets are signed by the employee

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Timekeeping: Estimations

The system for establishing estimates produces reasonable approximations of the activity performed

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Timekeeping: Quarterly Comparisons

At a minimum, quarterly comparisons are made of actual costs to budgeted distributions based on monthly activity reports

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Timekeeping: Adjustments

Adjustments are made to costs charged to federal awards based on the activity actually performed.

Note:

These adjustments can be made annually only if the quarterly comparisons show differences between budgeted and actual costs of less than 10%

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Timekeeping: Budget Revisions

Budget estimates or other distribution percentages are revised at least quarterly, if necessary, to reflect changed circumstances

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Timekeeping: Critical Elements

Semi-annual certifications

Personnel activity reports

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Timekeeping:FAQs

What are the audit requirements?

Your auditor will take a sample of expenditures and request timekeeping documentation for anyone charged to federal funds.  If your records are insufficient, the auditor will include a finding in the audit report and may question costs.  See the Michigan School Auditing Manual for further information

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Timekeeping:FAQs

What happens if you cannot produce the documentation for the single audit?

Auditor will question 100% of salaries and the penalty is a repayment

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Timekeeping: Other Resources

The Michigan School Auditing Manual

Report from the Time Log Work Group, Michigan Department of Education, Office of School Improvement, February 13, 2008

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Timekeeping: Other Information

Contacts

• MDE: Office of Audits

• ISD:

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Resources

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ResourcesAll resources identified in this Professional

Development module are available on:

Michigan LearnPort

www.learnport.org

Collaboration Center

Community Room

LEA Financial Management Resources

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Committee

Membership

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MDE/MAISA Monitoring and Compliance Committee

Becky Rocho, Calhoun ISD, (269) 781-5141 [email protected]

Patty Cantú, MDE, Office of Career and Technical Education, (517) 373-3373

[email protected] Mary Ann Chartrand, MDE, Grants Coordination and

School Support, (517) 373-8862 [email protected]

Terri Lynn Giannola, MDE, Office of Career and Technical Education, (517) 373-4670 [email protected]

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Timekeeping Subcommittee

Stephanie Murray – ISD ChairTraverse Bay Area Intermediate School District(231) 922-6417; [email protected]

Margaret Madigan, MDE Co-ChairMDE - School Improvement/Field Services(517) 373-4588; [email protected]

Kathy Weller – MDE Co-ChairMDE – Office of Audits(517) 335-6858; [email protected]

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Timekeeping Subcommittee David Gray

MDE - School Improvement/Field Services(517) 373-0161; [email protected]

Gayla MannMDE - School Improvement/Field Services(517) 373-4009; [email protected]

Pat MeauxMDE - School Improvement/Field Services(517) 373-4212; [email protected]

Harvey VermeeschLapeer County ISD(810) 664-1124; [email protected]