General Program Management  Policies and procedures
Memorandum #05-22

To:  All Subrecipients

Subject: Invoicing And Reporting of Accruals

Effective Date:  November 15, 2005

A.   POLICY

In conformance with United States Department of Labor One-Stop Comprehensive Financial Management Technical Guide dated July, 2002 and Washington State Employment Security Department WIA Title I-B Policy Number 3230, Financial Management , the Snohomish County Workforce Development Council ( WDC ) has developed this policy regarding invoicing and reporting of accruals by subrecipients.

•  All subrecipients must follow current Generally Accepted Accounting Principles (GAAP) as provided by the National Council on Government Accounting.

•  Subrecipient accounting systems must follow consistent rules for aggregation of detailed data to the summary level and accruals are traceable through the subrecipient's financial system.

•  Subrecipient accounting records must be maintained on an accrual or modified accrual basis and financial data must be submitted on an accrued expenditure basis.

•  The WDC requires that its subcontractors operate on an accrual or modified accrual basis and that its subcontractors report accruals quarterly.

B.   PROCEDURES

Expenses must be reported to the WDC by the 15th of each month using the Invoice form provided by the WDC (see Attachment A for a sample). At the end of each quarter, accruals must be reported to the WDC at the same time on the Subrecipient Quarterly Accrual Reporting Form (Attachment B). The specific budget lines for which accruals must be reported are described below.

•  DEFINITIONS

•  Salary and Wages - all subrecipient staff salaries and wages accrued at the end of the quarter must be included in the reports.

•  Benefits - all subrecipient staff benefits accrued at the end of the quarter must be included in the reports.

•  Staff Travel - all subrecipient staff travel initiated but not paid at the end of the quarter must be included in the reports.

•  Telephone - these costs are covered under Facilities.

•  Printing and Photocopying - all subrecipient printing and externally procured photocopying accrued must be included in the reports.

•  Postage and Shipping - the cost of shipping for items shipped and invoiced but not paid must be included in the reports.

•  Facilities - all facilities costs accrued, including costs covered under the Resource Sharing Agreement (RSA) for subrecipient staff based in a WorkSource Snohomish County center, must be included in the reports. RSA costs are to be estimated based on the estimated amounts in the RSA(s).

•  Office Supplies - all office supplies received for which an invoice has been received but not paid must be included in the reports.

•  Publications and Subscriptions - all publications and subscriptions that are being received without a corresponding invoice having been paid must be included in the reports.

•  Staff Development and Training - all subrecipient staff development and training procured by the subrecipient that has been delivered without a corresponding invoice having been paid must be included in the reports.

•  Meeting Costs - the costs of all meetings that have been held without corresponding invoice(s) having been paid must be included in the reports.

•  Insurance Costs - estimated insurance costs must be accrued/reported on a quarterly basis until paid for the year.

•  Software and Equipment - the accrued cost of all software and equipment received must be included in the reports.

•  Professional Services Subcontractor Costs - All accrued professional services subcontractor costs must be reported.

•  Indirect Costs - For subrecipients with an approved indirect cost rate, the rate must be applied to accruals and reported.

•  Registrant Costs - All registrant costs accrued but not paid must be reported. For client tuition, this includes accruals for the period being reported, if any. For WEX wages and benefits, this includes the cost of all wages/benefits for which timesheets have been received but not paid. For OJT employer reimbursements, this includes the cost of all employer invoices received but not paid, for client incentive payments, this includes the cost of all incentives awarded but not paid, and for client supportive services, this includes the cost of all supportive services delivered and invoiced but not paid.


Attachment A

Sample Invoice

Attachment B

logo

Subrecipient Quarterly Accrual Reporting Form

Subrecipient Name:                     

Contract Number:                  PY:     

Quarter:   1     2     3     4

Preparer's Signature:            Date:         

The following expenses are being accrued as of the end of the quarter identified above for the contract indicated in conformance with WDC General Program Management Policies and Procedures Memorandum #05-22, Accruals.

Cost Category: Expense Item

Administration:

Program:

TOTAL:

A. Personnel Costs
Salary and Wages
Benefits
TOTAL Personnel Costs
B. Operating Costs
Staff Travel
Telephone
Printing and Photocopying
Facilities
Office Supplies
Publications and Subscriptions
Staff Development and Training
Meeting Costs
Insurance
B&O Taxes
TOTAL Operating Costs
C. Software and Equipment Costs
Software
Furniture and Equipment
TOTAL Software and Equipment
D. TOTAL Prof. Srvs. Subcontracts
E. TOTAL Overhead Costs
F. TOTAL Indirect Costs
G. Registrant Costs
Client Tuition
WEX Wages and Benefits
OJT Employer Reimbursements
Client Incentive Payments
Client Supportive Services
TOTAL Registrant Costs
H. < TOTAL Costs