CEEDFiscalManagmentTraining1

							                    Welcome
Agenda – Fiscal Management Training
  –   Definitions
  –   County Extension Budget
  –   Extension Finance Website
  –   Monthly Financial Reports
  –   Fiscal support for Field Specialists
  –   Year-end Financial Reporting
  –   Fiscal policy
                                Extension
                           Fiscal Management
“Accountability and responsible decision making in government, combining
political economy and public finance with management practices and
institutional constraints.”
           - Fiscal Management (Public Sector, Governance, and Accountability) by Anwar Shah


"Accountability of government to citizens-the idea that the public sector
must answer to the people for its performance-is the foundation for good
governance. Under good governance, public expenditures are allocated to
maximize welfare, revenues are collected efficiently, and the public at large
has access to a number of public services including educational resources.”
           - Fiscal Management (Public Sector, Governance, and Accountability) by Anwar Shah
Generally Accepted Accounting Principles
                               (GAAP)

  GAAP is the standard framework of guidelines for financial accounting
  used in the United States. For local and state governments, GAAP is
  determined by the Governmental Accounting Standards Board (GASB).
  GAAP includes the standards, conventions, and rules that accountants
  follow in recording and summarizing transactions, and in the preparation
  of financial statements.
                          Public Funds
"Public spending is a story of some people spending other people's money”
   - Fiscal Management (Public Sector, Governance, and Accountability) by Anwar Shah

Public Funds are those funds owned by a public entity such as a County Extension
   District. This includes both tax and non-tax monies. All monies generated by
   users of the district entity are owned by the district, not the user, and are under
   the control of the local Extension Council.

All public funds are the legal responsibility of the Extension Council. Legal
     responsibility assigned by law cannot be transferred by Extension Council action.

All public funds have the same legal requirements for accounting, reporting,
     auditing, proper signatures, segregation of duties, publishing, bonding, investing
     and uniform financial accounting procedures.
  County Agricultural Extension Fund

The Code of Iowa, Chapter 176A.12, requires that the County
Agricultural Extension Fund be used to record income received
from a tax levy (Property Tax, Delinquent Property Tax, Mobile
Home Tax, Utility Replacement Excise Tax, Military Service/Mobile
Home Replacement Tax, Grain Handled Tax, Mobile Home Elderly
Replacement/Credit) and to record credits against levied taxes as a
deduction from the total property tax due (Homestead Credit,
Elderly & Disabled Credit, Disabled Veterans Homestead Credit,
AgLand Credit, Family Farm Credit and Native Prairie Tax Credit).
   County Agricultural Extension Fund
               Carry-over
The Code of Iowa, Chapter 176A.13. To carry over unexpended
county agricultural extension education funds into the next year so
that funds will be available to carry on the program until such time
as moneys received from taxes are collected by the county
treasurer. However, the unencumbered funds in the county
agricultural extension education fund in excess of one-half the
amount expended from the fund in the previous year shall be paid
over to the county treasurer.
         Grants/Contracts

The Grants and Contracts Fund receives
funds from private and public sources for
specially funded Extension programs that
require a separate accountability for the
funds.
               Fee Projects
The Fee Project Fund is used to record all
transactions related to a fee-based project.
(i.e. Funds which come to the county in the
form of registration and/or user fees).


            Non-Fee Projects
A Non-Fee Project can be used to record all
transactions related to a project that does not
generate revenue. (Ex. Babysitting Clinic or
Blue Ribbon Project that does not charge fees).
                   Agency
The Agency Fund may be established to hold
funds in custody for an entity cooperating with
Extension programs. The Agency Fund is for
non-Extension funds only. Agency funds
typically involve the receipt, temporary
investment and remittance of assets to their
rightful owners.
                         Agency (continued)

Extension must not have the ultimate decision-making authority about
the use of the funds. To determine who has the ultimate decision-making
authority about the use of the funds, consider these criteria:

    – Is the non-Extension entity legally separate? If so, the legal
       entity has sole decision-making authority for the money held in
       the fund.

    – If any of the following apply, the Extension Council has the
       ultimate decision-making authority:
         • Is the entity appointed by the Extension Council?
         • Does the entity carry out any part of the Extension program?
         • Is the Extension Council able to, if so desired, impart its will
           on the entity?
         • Does the Extension Council support the entity with other
           funding through the County Operating Account?
         Donor Restricted Fund

The Donor Restricted Fund is used when donor has
designated a purpose for the use of the funds outside
of the “normal” annual county operations. A
donation is considered “donor restricted” if:
  • It has a specific purpose, and
  • Is not part of the county’s normal annual operations, and
  • Has written and signed documentation of the donor’s
    intent
    Donor Unrestricted Fund

The Donor Unrestricted Fund is used when donor
has not designated a purpose for the use of the
funds outside of the “normal” annual county
operations.
               Endowment
A transfer of money or property donated to an
institution, usually with the stipulation that it be
invested, and the principal remain intact in
perpetuity or for a defined time period. This
allows for the donation to have a much greater
impact over a long period of time than if it were
spent all at once.
                    County Agricultural Extension
                               District
                      Single “Fiscal Year” Cycle

                        Fiscal Year July 1 – June 30

Section                      Activity                       Month
  Prepare       Begin budgeting process                November/December
                Council Organization                        January
                Record Budget                               March
  Budgeted      Start Fiscal Year                            July 1
   Fiscal
                Council Organization                        January
   Year*
                Yearend                                     June 30
                Annual Financial Reports                      July
 Certify        Audit                                  September - March

*Amend as Needed July through May
                            24 Month Financial Cycle
                            Fiscal Year July 1 to June 30
Month/Year            Activity                                                   Notes
  November 2007       Begin FY09 budgeting process                                Begin Cycle
                                                                                     FY09
   January 2008       Council and District Organization for 2008 Calendar Year
    March 2008        Record FY09 Budget
   June 30, 2008      FY08 Year-end
     July 2008        FY08 Annual Financial Reports
    July 1, 2008      Start Fiscal Year 2009                                          ►
 August – Sept 2008   Prepare the County Indirect Cost Rate Proposal for FY09
  September 2008–     FY08 Audit                                                 End of Cycle
    March 2009                                                                      FY08
  November 2008       Begin FY10 budgeting process                                Begin Cycle
                                                                                     FY10
   January 2009       Council and District Organization for 2009 Calendar Year
    March 2009        Record FY10 Budget
   June 30, 2009      FY09 Year-end
     July 2009        FY09 Annual Financial Reports                                   ◄
    July 1, 2009      Start Fiscal Year 2010
 August – Sept 2009   Prepare the County Indirect Cost Rate Proposal for FY10
 September 2009 –     FY09 Audit                                                 End of Cycle
   March 2010                                                                       FY09
County Extension District Budget Process

 November
    Council establishes a budget committee
    Council develops a schedule for budget process
    Staff gather income/expense projections from
     Field Specialists, Program Assistants, etc
    Director of Budget & Finance for Extension sends
     budget memo to County Directors with IDOM
     procedures and forms
County Extension District Budget Process
                       (continued)


December
    County Director & staff complete the budget forms
    Budget committee reviews & approves preliminary
     budget


January
    Council reviews budget committee’s report
    Council approves preliminary budget (quorum
     required)
    Council set date, time & place of public hearing
County Extension District Budget Process
                      (continued)


February
   Public hearing as a part of Council meeting
   Adopt budget (quorum required)


March
   Publish adopted budget
   File adopted budget & proof of publication with
    county auditor by March 15th
                IDOM Forms
 Entry Form
 Form 678
     Adopted Budget and Certificate of Taxes
 CB1
     County Budget Worksheet Detail with carryover
 CB2
     County Budget Worksheet Summary
 Form 674
     Notice of Public Hearing
         Budget Development
• Use Directors Revenue & Expense for:
  – Previous year actual
  – Current year estimate (YTD + projection)

• Next year budget planning – to include:
  –   Grants & Contracts
  –   Fee programs
  –   Non-fee programs
  –   Year-end carry-over

• Long-term budget planning
             Amendments
• Amend when expenditures are expected to
  exceed the adopted budget
  The amendment must be effective
  before any of the expenditure amounts
  are exceeded.
• Budget amendments require the same notice
  and hearing procedures as required for the
  adoption of the original budget
• In addition, file Form 653A Miscellaneous with
  the IDOM
    Extension Finance Website


www.extension.iastate.edu/extensionfinance/
            Monthly Financial Reports
• Summary of CM Reports
• Checklist for Monthly Reconciliation
• Bank Reconciliation Report
• Bank Register Report (1st day of month to last day of month)
• Voucher Report (Council meeting date to Council meeting date)
• Balance Sheet
• Council Revenue & Expense Statement
• Directors Revenue & Expense Statement
   – Oversight of budget to actual
• Transaction Report
• Audit Trail Report
• Published Report
  Fiscal Support for Field Specialists
• Evaluate program
  – Self supporting (i.e. Fee based)
  – Supplemented
  – 100% funded by other sources (i.e. Non-fee based)

• Management of FS programs

• CM reports
  – Program Income/Expense Report (Budget to Actual)
  – Program Transaction Report
         Year End Financial Reporting
• Checklist
• Year End Transactions
• Annual Financial Reports
   – Bank Reconciliation Statement (As of June 30th)
   – Bank Register Report (July 1 to June 30th)
   – Balance Sheet (As of June 30th)
   – Council Revenue & Expense Stmt (July 1 to June 30th)
   – Directors Revenue & Expense Stmt (July 1 to June 30th)
   – County Budget Report (CB1) with Carry-over (As of June 30th)
   – Published Report (As of June 30th)
• Indirect Cost Rate Analysis
Q&A