2014 TAACCCT TRAINING AND CONVENING

Financial Reporting and Accrual Accounting

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 Financial Reporting

Today’s Presenters:

Jane Yoon, Region 6

Materials You Should Have:

Handout 1 – ETA 9130 report form

Handout 2 – Annotated ETA 9130 form

Handout 3 – Definitions exercise

Evaluation Form

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What will you learn today? ETA-9130: Facts You Need to Know

Key Definitions

ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Rules of the Game 29 CFR Part 95.52 or Part 97.41

OMB Approval Extended to 12/31/2015

TEGL 28-10

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

There are some basic facts about the ETA-9130 that are important to know when preparing and analyzing your report

Accruals reflected

Due quarterly no later than 45 days after

quarter end

Data is cumulative from grant inception

Report must include cash and financial status information

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportSections 1-9

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportSection 10, parts a-i

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportSection 10, parts j-n

L.

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportSection 10, parts o-q and Section 11

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportSections 12-13

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

ETA-9130 ReportRemarks Section

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What will you learn today? ETA-9130: Facts You Need to Know

Key Definitions

ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Understanding ETA’s definitions of financial terms is a key ingredient in producing an accurate ETA-9130 report

DisbursementExpenditures

OutlaysAccruals

Cash Based AccountingObligation (ETA-9130 Line 10H)

Unliquidated Obligation

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Disbursement Disbursement means the transfer of

cash from the Payment Management System to the grantee

At the grantee level, disbursement means the transfer of cash from the grantee to another payee

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Expenditures In general, expenditures means

charges made to the program in support of authorized activities

ETA requires all grantees to report all financial transactions on a full accrual basis

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Accrued Expenditures Components During a Given Period

Goods and other property received

Services performed by employees, contractors, and others

Other amounts becoming owed

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

When working with cash based accounting systems, be sure to track the timing of activity to find accrual expenditures

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Obligation For purposes of the ETA-9130, Line 10h,

obligation includes Federal share of expenditures (cash outlays plus accrued expenditures) and any unliquidated obligations

Note, the commonly held GAAP definition of obligation is a term that references actions where a legal binding contract or purchase order to pay exists and differs from the use on the ETA-9130

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Unliquidated Obligations Unliquidated Obligations means

obligations incurred for which an expenditure has not been recorded

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

How would you classify these types of cost situations?Assumption: all activities/charges below are allocable to a DOL-ETA grant

A - Accrual

B – Unliquidated Obligation

1. You received delivery of a partial order for goods but the invoice has not been paid.

2. A contractor has started training participants but has not sent the invoice.

C – Obligation

D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

How would you classify these types of cost situations?Assumption: all activities/charges below are allocable to a DOL-ETA grant

A - Accrual

B – Unliquidated Obligation

3. Of a $50k contract, there is $40k unspent for which no goods or services have been provided.

4. Staff travel completed but no travel reimbursement submitted or paid before the end of the quarter.

C – Obligation

D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

How would you classify these types of cost situations?Assumption: all activities/charges below are allocable to a DOL-ETA grant

A - Accrual

B – Unliquidated Obligation

5. You order, pick up, and pay for supplies all on the same day.

6. At the end of the month, you complete the monthly indirect cost calculation

C – Obligation

D – Disbursement

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What will you learn today? ETA-9130: Facts You Need to Know

Key Definitions

ETA-9130 Analysis Simulator

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Are you smarter than a 5th grader?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

True or False?1. Should Cash on hand always be zero?

a. Trueb. False

2. The amount reported on the total Federal expenditures line is higher than the cash disbursed. Is that an indicator that the organization is reporting accruals?

a. Trueb. False

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What is a potential area of concern on this report? What would you do?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What are the potential areas of concern on this report? What would you do?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Homework

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Review online tutorials and other resources on ETA-9130 reporting available at: etareporting.workforce3one.org

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Review key guidance and resource documents at: http://doleta.gov/grants/financial_reporting.cfm

Forms and Instructions

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Also, be sure to review closely Training and Employment Guidance Letter 13-12 and 28-10 available at:http://wdr.doleta.gov/directives/

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

See the One-Stop Comprehensive Financial Management Technical Assistance Guide (TAG) located at:www.doleta.gov/grants/pdf/TAG_PartII_July2011.pdf

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Share with others supporting this grant

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING