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Part II: ETA Grant Programs Financial Management

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Part II: ETA Grant Programs Financial Management Part II Updated July 2011 One – Stop Comprehensive Financial Management Technical Assistance Guide Part II U.S. DEPARTMENT OF LABOR Employment and Training Administration U.S. Department of Labor Employment and Training Administration Office of Grants Management Division of Policy, Review and Resolution July 2011 Update Washington, D.C. One-Stop Comprehensive Financial Management Technical Assistance Guide – Part II Contents Part II: ETA Grant Programs Financial Management .......................................................... II-Intro-1 Introduction ..................................................................................................................................... II-Intro-1 Intended Audience .......................................................................................................................... II-Intro-2 How Part II is Organized.................................................................................................... II-Intro-2 Cautions ......................................................................................................................... II-Intro-4 Chapter II-1: Fund Distribution ............................................................................................... II-1-1 Introduction ....................................................................................................................................... II-1-1 Federal Budget Process .................................................................................................................... II-1-1 WIA Allotments and Allocations ................................................................................................... II-1-2 Non-WIA Allotments and Allocations ..................................................................................... II-1-5 Discretionary Grant Funding ........................................................................................................... II-1-7 Chart II-1-1: Formula Fund Distribution WIA Title IB — Adult ............................................. II-1-9 Chart II-1-2: Formula Fund Distribution WIA Title IB — Dislocated Worker ...................... II-1-10 Chart II-1-3: Formula Fund Distribution WIA Title IB —Youth ........................................... II-1-11 Chart II-1-4: Formula Fund Distribution WIA Title IB — NEG ............................................ II-1-12 Chart II-1-5: Fund Distribution WIA Title IC — Job Corps ...................................................... II-1-13 Chart II-1-6: Fund Distribution WIA Title ID — Native American Programs....................... II-1-14 Chart II-1-7: Fund Distribution WIA Title ID — National Farmworker Job Program ........ II-1-15 Chart II-1-8: Fund Distribution WIA Title ID — YouthBuild ........................................... II-1-16 Chart II-1-9: Fund Distribution Employment Services ........................................................... II-1-17 Chart II-1-10: Fund Distribution Unemployment Insurance ................................................... II-1-18 Chart II-1-11: Fund Distribution Senior Community Service Employment Program ........ II-1-19 Chart II-1-12: Fund Distribution Trade Adjustment Assistance ......................................... II-1-20 Chart II-1-13: Fund Distribution TAACCCT ..................................................................... II-1-21 Chart II-1-14: Workforce Investment Act of 1998 Period of Fund Availability ................... II-1-22 Chapter 11-2: Financial Management Systems ................................................................................ II-2-1 Introduction...................................................................................................................................... II-2-1 Regulations and Requirements ....................................................................................................... II-2-1 Financial Management System Standards ..................................................................................... II-2-2 Chapter 11-3: Cost Principles ............................................................................................................ II-3-1 Introduction............................................................................................................................................. II-3-1 Federal Cost Principles .......................................................................................................................... II-3-2 July 2011 i Contents Chapter II-4: Allowable Costs ................................................................................................................. II-4-1 Introduction............................................................................................................................................. II-4-1 Cost Principles: Allowable vs. Unallowable ...................................................................................... II-4-1 Selected Items of Cost ........................................................................................................................... II-4-4 Specific WIA Requirements ................................................................................................................. II-4-4 Other Program Regulations and Grant Agreement Terms ................................................................ II-4-6 Attachment II-4-1: Summary of Cost Items ...................................................................................... II-4-7 Chapter II-5: Cost Classifications ............................................................................................................ II-5-1 Introduction............................................................................................................................................. II-5-1 Cost Categories and Activities .............................................................................................................. II-5-1 Administrative Costs and Limitations ................................................................................................. II-5-2 Other Guidance ...................................................................................................................................... II-5-5 Attachment II-5-1: ETA – 9130 Reporting Administrative Costs................................................... II-5-8 Attachment II-5-2: Sample Chart of Accounts ................................................................................ II-5-10 Chapter II-6: Cash Management ............................................................................................................. II-6-1 Introduction............................................................................................................................................. II-6-1 State-Level Cash Management ............................................................................................................. II-6-2 Cash Management at the Grantee (Non-State) Level ........................................................................ II-6-2 Cash Management at the Subrecipient Level ...................................................................................... II-6-3 Additional Cash Management Considerations ................................................................................... II-6-9 Attachment II-6-1: Funding Techniques under the Cash Management Improvement Act .............................................................................................. II-6-11 Chapter II-7: Program Income ................................................................................................................. II-7-1 Introduction............................................................................................................................................. II-7-1 Definition ................................................................................................................................................ II-7-2 Program Income Inclusions .................................................................................................................. II-7-2 Interest Income ....................................................................................................................................... II-7-3 Program Income Exclusions ................................................................................................................. II-7-3 Accounting for Revenue and Cost of Generating Program Income ................................................. II-7-5 Accounting for the Expenditure of Program Income ......................................................................... II-7-6 Uses of Program Income ....................................................................................................................... II-7-7 One-Stop Program Income ................................................................................................................... II-7-8 Chapter II-8: Cost Allocation and Cost Pooling .................................................................................... II-8-1 Introduction............................................................................................................................................. II-8-1 Requirements for Financial Management Systems ............................................................................ II-8-2 Elements of Cost and Their Allocability ............................................................................................
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