Workforce Resource, Inc.

Financial Procedures Manual

(Approved October 2015)

Table of Contents

Table of Contentsi

Forwardii

PROCEDURES

SECTION I. GENERAL

SECTION II. CASH ADVANCE REQUESTS

SECTION III. CASH RECEIPT AND HANDLING

SECTION IV. CASH DISBURSEMENTS

SECTION V. ADMINISTRATIVE PURCHASING

SECTION VI. PAYROLL

SECTION VII. TRAVEL

SECTION VIII. WRI BOARD MEMBER EXPENSES

SECTION IX. PROPERTY

SECTION X. LEASES

SECTION XII. TELEPHONES, PHOTOCOPY AND FAX MACHINES

SECTION XIII. CONSULTANTS

SECTION XIV. GRANTS AND CONTRACTS

SECTION XV. BUDGETS

SECTION XVI. BOOKS OF ORIGINAL ENTRY

SECTION XVII. REPORTS

SECTION XVIII. MATCHING FUNDS, NONFEDERAL INKIND CONTRIBUTIONS, STAND-IN COSTS

SECTION XIX. COST ALLOCATION PLAN

SECTION XX. OTHER

SECTION XXI. COMPUTER CONTROLS AND SECURITY

SECTION XXII. AUDIT

SECTION XXIII. PROGRAM INCOME

FORMS

Attached

Forward

The Workforce Resource, Inc. (WRI) was initially formed as a Private Industry Council (PIC) following the enactment of the Job Training Partnership Act (JTPA, PL 97-300) of 1982. The WRI organization became officially recognized by the Wisconsin Departments of State and Revenue as a private-nonprofit, tax exempt corporation under Chapter 181 of the Wisconsin State Code on October 3, 1983. The WRI organization acting as fiscal agent for and under direction of theWest Central Wisconsin WDB(formerly West Central Wisconsin Private Industry Council, Inc.-PIC), is recognized by the Internal Revenue Service as a 501(c)(3) and, tax exempt by the Local, State, and Federal taxing authorities.

Throughout the organization's tenure, its corporate mission was expanded "to mobilize and focus available community resources" as directed within the confines of the WRI. This corporate mission allowed the WRI to establish a local presence in each county of the program delivery-workforce development area. Various targeted funding sources are used in concert to deliver employment and training services at local county-based Job Center offices. This program and delivery system emphasis continues under subsequent legislation (such as, Workforce Innovation and Opportunity (WIOA), Wisconsin Works, Food Share Employment & Training program and various other related funding authorities.

In accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Workforce Resource maintains a financial management system that provides for the following. Specific procedures to carry out these standards are detailed in the appropriate sections of this manual.

The most current organizational chart and office directory follows Section I.

Respectfully,

Debra Leslie

Chief Executive Officer

PROCEDURES

SECTION I. GENERAL

1.The Workforce Development Boarddesignates Workforce Resource, Inc. (WRI) as its sub-grant recipient and fiscal agent. Workforce Resource, Inc. formulates overall financial policies, delegates administration of the financial policies to the administrative staff, and reviews all agency operations and activities within parameters established by the WDB.

2.Chief Executive Officer has responsibility for all operations and activities, including financial management.

3.Chief Financial Officer is responsible to Chief Executive Officer for all financial operations.

4.The lines of authority on the agency's organizational chart will be followed by all employees.

5.Current job descriptions will be maintained for all employees indicating duties and responsibilities.

6.Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts, disbursements, payrolls, reconciliation of bank accounts, etc.

7.All employees are to take annual vacations per personnel policy.

8.Separate accounts and books will be maintained as required by funding source regulations.

9.All forms will be completed electronically or in ink. The use of white-out when correcting forms is discouraged.

10.Every effort will be made to ensure, to the extent practical, that all FINANCE positions are cross-trained and backed up with other workers in the department and organization. These "back-up" positions will perform the primary and required functions while a position is vacant (vacation, other leave, etc.) and contribute to the maintenance of effective internal controls.

11.Fiscal and accounting procedures are generally in accordance with recognized generally accepted accounting principles (GAAP) for the organization. Where there are differences from GAAP, such as charging the full amount of equipment to grants rather than depreciating them, notations will appear in the organization's audit report.

12.Accounting records must adequately identify the source and application of funds and be properly supported by source documentation (electronic copies are kept using Sentry File as established in consultation with the State DWD acting on behalf of the DOL). These records must contain information about awards, authorization, revenues, expenditures, accruals (as required by WIOA AND OTHER FUNDING AUTHORITIES), obligations and unobligated balances by fund. The records must be sufficient to permit the:

a.preparation of required reports;

b.tracing of funds to a level of expenditure adequate to establish that funds have not been used in violation of the applicable restrictions on the use of such funds;

c.tracing of program incomes, potential stand-in costs and other incurred costs that are otherwise allowable except for funding limitations; and

d.demonstration of compliance with applicable matching requirements.

SECTION I

Date Effective: July 2008

Date Revised: February 2012; October 2015

SECTION II. CASH ADVANCE REQUESTS & EXPENDITURE REPORTING

1.WIOA AND OTHER FUNDING AUTHORITIES cash in the WDA and subrecipient financial systems will be kept at a minimum and will be managed in compliance with DWD Administrative Assurances and Requirements.

2.Cash Advances: Will be prepared by the Chief Financial Officer or designee based on the immediate cash needs of WRI and subcontractors. Factors considered when anticipating immediate cash needs include, but are not limited to:

a.Unpaid invoices on hand;

b.Estimated salaries/wages and fringes;

c.Rent;

d.Advances/reimbursements to sub recipients;

e.Estimated other costs (OJT reimbursements, needs based/related payments, purchase of service/payment authorizations, etc.).

3.Reimbursement: Will be prepared by the Chief Financial Officer or designee based on actual expenditures

The Chief Executive Officer or designee will review and approve all cash advance/reimbursement requests made to funding sources.

  1. The Financial Accounts Payable Specialist records appropriate revenue and receivable entries in Accounts Receivable system in the ORION Financial System.

5.The WRI's Invoice or Request for Advance or Reimbursement will be prepared by subcontractors and submitted to WRI for payment.

6.The Financial Accounts Payable Specialistwill prepare the Payment Voucher for subcontractor payments and submit it to the Chief Financial Officer or designee for payment authorization or approval.

7.Chief Executive Officer or designee will review and approve all advance/reimbursement requests made by the subcontractors.

8.The Financial Accounts Payable Specialist will process subcontractor payments via the ORIONAccountsPayable Program after the Chief Financial Officer's or designee's approval.

9.The Financial Accounts Payable Specialist (or designee) will double check payments to subcontractors against payment vouchers and backup prior to mailing them. If problems exist with said payments, return to Step 4 for remediation by Financial/Accounts Payable Specialist.

10.Program Manager or related position will receive sub grantee financial system reports on a monthly basis for monitoring purposes and to assure accuracy/completeness of the data inputs.

11.The Chief Financial Officer or designee prepares the backup worksheet based on information received from the Financial/Accounts Payable Specialist and the Financial/Payroll Specialist for the DWDInvoice or Request for Payment. (The back-up worksheet is used to monitor and compare estimated cash needs by expense item and actual expenses and the Cash Receipts and Disbursements Record includes all WIOA and nonWIOA cash and shows how it flows through the WRI's bank accounts, when it is received, deposited in savings account, transferred to checking accounts and disbursed.)

12.Cash Advance Requests will be processed for nonWIOA funding sources whenever possible and feasible (weekly or monthly as the program allows).

13.WIOA, DHS and other contracts are reimbursement contracts. Therefore, the WRI advances money to programs for expenses and are later reimbursed (therefore, negative cash balance exist). Exceptions could arise based on unique circumstances, such as implementation of state invoicing system.

SECTION II

Date Effective: July 2011

Date Revised: March 2012; October 2015

SECTION III. CASH RECEIPT AND HANDLING

Cash Receipt and Handling - Central

  1. All cash and checks will be received and receipted by the person opening the mail, the Office Manager or designee, and then forwarded to the FINANCE Department. DWDand Federal government checks are most often mailed or sent via electronic funds transfer (EFT) directly to and deposited by Bremer Bankin appropriate account.
  1. All incoming checks and EFT deposits will be matched to the appropriate invoice in the accounting system. Accounts payable will review cash receipts without existing invoices and take appropriate required action.
  1. All receipted cash and checks will be deposited to a depository account (when available and is referred to as the "savings" account and is in conjunction with a repurchase agreement at Bremer Bank by Financial/Accounts Payable Specialist or designee.
  1. All receipts will be deposited intact.
  1. Eligible Checks will be remote deposited and endorsed, "Pay to the Order of Bremer Bank, Menomonie, Wisconsin" or "Workforce Resource Inc, FOR DEPOSIT ONLY, Account XXXXXXX" or other acceptable designation.
  1. Documentation for all receipts will be filed by month in the FINANCE Department.
  1. Upon verification of the deposit, the Financial/Accounts Payable Specialist records all receipts on the Daily Cash Balance Record.
  1. The Financial/Accounts Payable Specialist records appropriate receivablein Accounts Receivable system in the ORION Financial System.
  1. The Chief Financial Officer or designee scans and approves journal entries and to ensure that the entry is done in an appropriate manner and that the necessary supporting documentation is attached.

Cash Receipts and Handling - Local Offices

  1. All cash and checks will be received by the Resource Specialist or designee.
  1. The fee-for-service contracting and billing processes requires payments to be sent to central. This limits the number of times checks are handled by local and central offices.
  1. Cash and/or checks received at local field offices should be handled as defined in the petty cash process shown below.
  1. No cash should be mailed by field offices to central.

Petty Cash

  1. The following petty cash boxes will be maintained by the agency:

OfficeCustodian Amount

CentralOffice Manager $50

BarronField Office Secretary $50

ChippewaField Office Secretary $50

ClarkField Office Secretary $50

DunnField Office Secretary $50

Eau ClaireField Office Secretary None

PepinField Office Secretary $50

Barron InternationalField Office Secretary $50

PolkField Office Secretary $50

St. Croix ValleyField Office Secretary $50

  1. No loans will be made from petty cash funds.
  1. All petty cash funds will be kept in a locked petty cash box in a locked drawer or file cabinet. Only the petty cash custodian and their direct supervisor (or designee) will have keys to the petty cash box, drawer, and cabinet.
  1. Payments of up to $50 can be made from the petty cash fund for making change for customers and/or other necessary disbursements as made within the parameters of the criteria listed in point 7 below.
  1. All checks received by the local office will be receipted and immediately forwarded to the Central FINANCE `Department, stamped, "Workforce Resource Inc, FOR DEPOSIT ONLY, Account XXXXXXX." Cash receipts at local offices will be immediately receipted and put in the cash lock box. Numbered cash receipt books will be used as needed within the petty cash register process citing the number for each written receipt.
  1. Cash in excess of seventy-five dollars will be brought before close of business each day, converted into a bank draft and sent to the WRI Central FINANCE Department. The cost of the bank draft will be deducted from petty cash and the petty cash register.
  1. At local offices, Workforce Resource Coordinators will determine if advance authorization is required for petty cash disbursements. Workforce Resource Coordinators approve expenditures using the following criteria: The proposed expenditure is:
  1. less than $50; and
  2. required for smooth operation of the local office; and
  3. not otherwise available via the Central Supply or similar process, in a timely enough manner; and/or
  4. needed to meet an allowable emergency situation.
  1. The purchaser will present the petty cash disbursement slip (see Petty Cash Slip), approved by the Workforce Resource Coordinator, to the petty cash fund custodian for payment. A sales receipt for all purchases must be attached to the petty cash slip.
  1. The petty cash custodian will insure that the petty cash slip is properly completed, approved, and that a proper receipt (from cash receipt book, if needed, and sales receipt as referenced in point 9) is attached before payment is made.
  1. When the petty cash fund falls below a balance of fifteen dollars, the petty cash custodian will submit the recap of all receipts and disbursements to the WRI Central FINANCE Department for reimbursement.
  1. Petty cash reimbursement checks will be made payable to the Petty Cash Custodian's name (i.e. "Employee Name, Petty Cash Custodian").
  1. The Workforce Resource Coordinator or designee will conduct surprise counts of all petty cash funds.
  1. Any irregularities in the petty cash fund will be immediately reported in writing to the Chief Financial Officer or Accounting Manager.

SECTION III

Date Effective: July 2000

Date Revised: February 2012; October 2015

SECTION IV. CASH DISBURSEMENTS

General

1.All original invoices will be immediately forwarded to the FINANCE Department.

2.Accounts Payable Vouchers will be paid regularly each week.

3.Checks will be compared and verified by the Financial/Accounts Payable Specialist or designee with vouchers before mailing and check copies attached to the voucher. Incorrect checks will be voided and replacement checks issued when necessary.

4."Voided" checks (including preparation spoilage) will be handled as follows:

a."Voided" checks will be separated from good checks to be signed.

b."Voided" checks including copies will have "VOID" boldly written in ink or stamped across the face of check.

c.The signature portion of the original of "VOIDED" check will be perforated or cut out.

d.The yellow copy of "Voided" checks will be filed in numerical order in a "Voided" check file.

e."Voided" checks will be entered into the General Ledger System by the assigned Financial/Payroll Specialist.

5.FINANCE staff prepares and enter appropriate journal entries to record adjustments to disbursements on the General Ledger System.

6.The assigned Financial/Accounts Payable Specialist enters "Voided" check adjustments on the Daily Cash Receipts and Disbursements Record, as necessary.

7.The Chief Financial Officer or designee scans and approves journal entries to ensure that the entry is done in an appropriate manner and that the necessary supporting documentation is attached.

Operational Vouchers

1.The assigned Financial/Accounts Payable Specialist will prepare a Payment Voucher for payment of invoices issued by vendors.

2.Copies of required Purchase Orders and receiving/packing slips will be attached to Payment Vouchers as necessary.

3.Vouchers will be approved by the Chief Financial Officer or designee prior to payment.

Program Services Vouchers

  1. All Voucherswill be given to the assigned Financial/Accounts Payable Specialist. The forms used in this procedure may vary by program (WIOA versus W2; Needs Based Payment Authorizations versus Needs Related Payment), but the overall process remains the same. See specific program procedures for differences in forms used.
  1. The Eligibility Determination Form (EDF) of each participant will also be checked by the assigned case manager to determine date of eligibility, which is the starting date that cost may be incurred.
  1. Case manager will put commitment into the Tessa system, which assures the client is enrolled and the expenses is appropriately coded to the program and cost category. Case Manager or designee will create authorization and submit the appropriate documentation for each expense:
  2. Onetime Payment form
  3. Voucher – sent to Vendor
  4. OJT Contract
  5. Needs Based Payment
  6. Group Payment (Which allocates expenses to multiple participants in various funds)
  7. Each document will be checked by the Financial/Accounts Payable Specialist for signatures and proper documentation.
  8. Onetime Payment form – Receipt, invoice or other documentation
  9. Voucher – sent to Vendor – invoice from vendor
  10. OJT Contract – OJT Contract and Timesheets
  11. Needs Based Payment – Needs Based Agreement and Timesheets
  12. Group Payment (Which allocates expenses to multiple participants in various funds) – Invoice from vendor and roster
  1. Needs based Agreements and On the Job Training Contracts will be monitored separately to ensure that total expenditures are in line with agreements.
  1. Attendance sheets will be required as documentation for support service payments made from a Needs based agreement and OJTs. The attendance sheets will be checked for needed signatures and documentation by the assigned Financial/Accounts PayableSpecialist.

Manual Checks (Manual Checks are the last resort, and are not anticipated to occur)

  1. Blank checks will be requisitioned from the Financial/Payroll Specialist or designee. (The individual responsible for blank checks shall not be involved in the preparation of voucher input data, nor shall such individual have access to the key for the check signing machine.)
  1. The check numbers of blank checks disbursed shall be entered on the Check Control Register, and the individual receiving the checks will sign the register.
  1. If any checks that have been disbursed are returned unused, the beginning and ending numbers will be entered on the appropriate line of the Check Control Register. The beginning and ending numbers of the checks used will be posted, and the signature of the individual returning the checks will be obtained.
  1. Checks will be prepared by the assigned Financial/Accounts Payable Specialist (or his/her backup). After all checks have been written, any unused checks will be returned as explained above, and all checks written, voided and/or spoiled in preparation will be given to the Office Manager (or his/her designee) for signing, as necessary.

Check Signing