Expenditure Reports (FERs) and Carry-over Funds
- What is a "final expenditure report" (FER)?
The FER (GM-FER-1, 2) is a report that is submitted for each project after completion of the project period. The purpose of the report is to inform the Office of Grants Management of the amounts expended in the various areas of the budget. - What information is included in the FER?
The FER contains the amount of federal and state funds expended in each category of the budget. The expenditure figures must agree with the figures recorded on the agency's official accounting records and be verified by the treasurer. Expenditures are reported on a cash basis of accounting.
The report also indicates the agency's final ABLE allocation, the amount of the approved budget, the amount of funds received from the state for the project, the cash balance on hand, and the amount available for carry-over.
The FER should include only information concerning federal and state funds (ABLE funds) allocated, budgeted, received and expended. Financial support provided to the project from the general fund or other sources should not be reported in the FER. - When is the FER due in the Office of Grants Management?
The report is due no later than 60 days after the completion of the project period. The FER should not be prepared and submitted until all financial activity for the project has been completed (i.e. until all encumbrances have been liquidated). It should be submitted as soon as possible after all obligations have been paid. - What happens if the FER is not submitted on schedule?
If the FER is not received by the due date, a verbal or written reminder will be sent to appropriate agency officials. If a satisfactory response is not received, no additional federal ABLE payments will be made to the agency until the late report has been received and approved by Grants Management. - How is the FER used by the Office of Grants Management?
The FER is checked by the staff of the Office of Grants Management for completeness and computational accuracy and is reviewed to determine whether the amounts spent in the various categories are within established limits. The approved report is the basis for determining the amount of money available for carry-over, the amount due the agency, and the amount that may need to be refunded by the agency to the Ohio Department of Education. The accuracy of the information contained in the report and the appropriateness of the reported expenditures will be verified through an audit performed by a representative of the Auditor of the State of Ohio or through site visits by ODE personnel. - May the amount of money expended be greater than the amount of cash received for the project?
Yes. At the time that the report is prepared, the amount of federal and state cash paid by the state to the agency may be less than the total of all authorized project expenditures. The expenditures reported on the FER should include all those authorized by and attributable to the project even if the total is greater than the amount of the ABLE cash received from the state. However, the total of all reported expenditures may not be greater than the total of the approved project budget. - If the amount expended is greater than the amount received, how does the local program obtain the balance?
The balance is obtained by attaching a project cash request form to the FER. This form should be used to request the difference between the amount expended and the amount already received. When this form is submitted with the FER, the unspent portion of the agency's allocation (i.e. the carry-over funds) should not be included. Those funds will be paid in separate payments following the approval of the carry-over budget by the Office of Career-Technical and Adult Education. - What are the sources of carry-over money?
Carry-over funds may be available from three sources. They are:- The ABLE cash balance on hand at the end of the project period.
- The portion of the approved budget not paid to the agency.
- The portion of the agency's allocation which was not included in the approved budget.
- When may carry-over funds be spent?
Funds allocated for use by a school district during a particular fiscal year but not spent during that year may be used as carry-over funds during the following fiscal year. For example, funds allocated for use during fiscal year 1999 but not spent during fiscal year 1999, may be used to support approved project activities during fiscal year 2000, provided a carry-over budget (BUD 1 or 2) is submitted by the agency and approved by the Office of Career-Technical and Adult Education. Carry-over funds may not be obligated prior to the carry-over budget approval date. - If there is unexpended cash on hand when the FER is submitted, may the local program use it to finance project activities in the new project period until the first cash payment for the new project is received?
No. Carry-over funds may not be used prior to the approval of the carry-over budget and only in accordance with the carry-over budget after approval. Prior to receipt of a cash payment for the new ABLE project, approved activities may be financed by a cash advance from a non-project source. The amount advanced should be returned to the other fund following the receipt of ABLE cash from the state. - How is authorization obtained to use carry-over funds?
A carry-over budget must be submitted to and approved by the Office of Career-Technical and Adult Education. The budget should be submitted with the FER. The carry-over budget may be approved after or at the same time as approval of the new project, but not before. A budget narrative explaining the use of the funds must accompany the carry-over budget. - For what purpose may carry-over funds be used?
Normally, carry-over funds are used only for salaries and employee benefits. In all cases, such funds may be used only for purposes set forth in the approved carry-over budget. - How are carry-over expenditures reported to the Office of Grants Management?
Expenditures of carry-over funds must be reported to the Office of Grants Management through the submission of a final expenditure report. Expenditures of these funds must be reported separately from other ABLE funds and must be reported on the same form as is used to report expenditures for the project from which the funds were carried over (e.g. expenditures of fiscal year 1999 carry-over funds expended during fiscal year 2000 must be reported on the fiscal year 1999 form).
The report should be submitted as soon as possible after the funds have been spent but no later than 60 days following the project end date. - May the amounts reported as expended be greater than the corresponding budgeted amounts?
Yes. The expenditures reported on the FER may exceed the corresponding budgeted amount(s) in one or more cases provided the following conditions are met:- The total of all expenditures does not exceed the total of the budget.
- The amounts expended for the various major object codes (100, 200, 300, etc.) do not exceed the corresponding budgeted amounts by more than 10%.
- All other restrictions contained in the budget concerning types of expenditures, nature and size of staff, and quantities or amounts of goods purchased are observed.
- How are FER and carry-over budget forms obtained?
Sufficient copies of both forms are mailed in July of each year to all agencies that have active ABLE projects. Additional FER forms are mailed to agencies with the approved carry-over budgets for use in preparing the final expenditure report for the carry-over funds. FER forms are also available on the Office of Grants Management's website at www.ode.state.oh.us under topic "Grants."
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