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 5.7 Financial Management

 
 

 Requirements

 

R1. Budgeting

Center operators and Outreach and Admission (OA)/Career Transition Services (CTS) contractors must assure that budgets are developed, prepared, revised, and submitted in accordance with the requirements contained in Appendices 502 (Financial Management for Center Contracts) and 503 (Job Corps Outreach/Admissions and Career Transition Services Cost Reporting and Budgeting Requirements).

R2. Financial Reporting

Center operators and OA/CTS contractors must assure that required monthly reports are prepared and submitted, on time, in accordance with the requirements contained in Appendices 502 and 503.

R3. Vouchering

Center operators and OA/CTS contractors must submit vouchers for the reimbursement of expenses, on time, in accordance with the procedures outlined in Appendices 502 and 503.

R4. Internal Controls

Center operators and OA/CTS contractors must:

a. Establish internal controls to provide reasonable assurance that:

1. Management is made aware at an early stage of any situation in which available funding for contracted services is not adequate to secure the delivery of such services.

2. The integrity of the funds provided by the government is not being compromised.

3. Assets are properly safeguarded.

b. Submit written descriptions of control procedures to the Contracting Officer as part of the standard operating procedures in accordance with the schedule shown in Exhibit 5-1 (Standard Operating Procedures). Control procedures must include:

1. Separation of duties

2. Approval requirements

3. Documentation requirements

c. Establish procedures to regularly communicate budgetary goals and rates of expenditure to management staff who have responsibility for authorizing expenditures.

R5. Student Benefit Fund

Conduct an annual audit of the Student Benefit Fund to assure that the requirements listed in Chapter 2, Section 2.2, R10 (Student Benefit Fund)​ are met.

R6. Sale of Center-Produced Goods and Services

The sale of goods produced or services rendered by students or at Job Corps centers is prohibited except in the following cases:

a. Objects or services may be sold at cost to students or center employees. For USDA Forest Service Civilian Conservation Centers (CCCs), sales to staff must be in accordance with approved agency policy.

b. Objects or services may be sold in the community when both of the following criteria are met:

1. The sale of such products or services does not represent unfair competition with private sources in the area.

2. The center has received approval from the Regional Office.

c. Vehicle repair services may be offered only when the following additional conditions are met:

1. Such services are made available to staff and the general public on an equal basis.

2. Vehicles serviced are selected on a first come, first served basis.

3. Prior to acceptance for service of any vehicle, the owner signs an agreement relieving the Department of Labor of any responsibility for damage, and agreeing to pay for all parts and materials.

4. Repair services shall not be provided to rebuild vehicles purchased for speculation or resale.

5. Repair of vehicles owned by non-center Department of Labor and non-center federal employees of operating agencies is prohibited.

d. The proceeds from the sale of goods must be credited to the cost category for the purchase of the materials.

e. Students cannot sell arts and crafts objects made with center-provided materials for personal profit.

f. The sale of objects made with materials purchased by the Student Benefit Fund is permitted only if proceeds are credited to the Student Benefit Fund.

R7. Taxation of Job Corps Contractors by States or Localities

If state or local taxes are levied on a center or OA/CTS contractor, the contractor must follow the procedures set forth in Appendix 504 (Taxation of Job Corps Contractors by States or Subdivisions Thereof).

R8. Use of Maintenance Funds

a. Centers must not use maintenance funds for capital improvement projects.  Capital improvements are defined as:

1. The construction, installation, or assembly of a new asset (i.e. a building or structure), or the alteration, expansion, or extension of an existing asset to accommodate a change of function or un-met programmatic needs, or to incorporate new technology.  This may include major renovation of an entire existing asset in order to properly restore and/or extend the life of the asset without change of function. This includes constructed asset deficiencies where there is non-compliance to codes (e.g., life safety, Americans with Disabilities Act, Occupational Safety and Health Administration [OSHA], environmental, etc.), and other regulatory or Executive Order compliance requirements.

2. Capital improvements include expenses for constructing or making long-lasting physical improvements to structures, utilities (e.g., heating and plumbing), roads and grounds, as well as the purchase and installation of major pieces of equipment, during a rehabilitation or construction project, that are permanently attached to structures such as air conditioners, walk-in freezers, refrigerators, ovens and stoves, and cafeteria dishwashers.

b. Centers are encouraged to use center maintenance and available under-run funds in excess of low on-board strength shortfall to address unfunded Operations and Maintenance (O&M) deficiencies.  Priority must be given to unfunded life-safety O&M deficiencies.

O&M deficiencies are defined as: A minor maintenance and repair action that is normally accomplished as part of the Job Corps center operating funds. This includes the cost of maintenance to repair unscheduled and scheduled deficiencies during the time period in which they occur.

O&M includes:

1.​ Preventive maintenance for buildings, structures and Installed Building Equipment (IBE), including but not limited to Heating, Ventilation, and Air Conditioning (HVAC) equipment, fuel-burning and electric appliances, food service equipment, boilers, and plumbing, as recommended by the manufacturer:

(a) Activities related to the normal functions intended for a facility or IBE, including costs for utilities (electricity, water, sewage), fuel, janitorial services, window cleaning, and pest control

(b) Upkeep of grounds, vehicle rentals, waste management, periodic condition assessments, roof inspections, specialized services, e.g., fire alarm/protection

2. Routine maintenance of center facilities, including painting, carpeting/flooring, curtains, etc., when such maintenance is not part of a classifiable construction and rehabilitation project

3. In-place management of asbestos-containing building materials and lead-based paint, in accordance with 40 CFR Part 763 and 40 CFR Part 745​

R9. Travel Costs

Centers must develop a system to provide economical transportation to enrolled students that includes:

a. Using Federal credit cards or other means as prescribed by the Regional Office (RO) to ensure students arrive at their scheduled destinations using the safest, most economical mode of travel.

b. Providing students with meal money in the amount of $5 for each six hours of expected travel status. Reimbursement will be requested in accordance with procedures issued by the RO.

R10. Monitoring and Reporting Travel Costs

a. The ROs receive invoices from the travel creditor on a monthly basis. Statements should be reviewed immediately by designated RO staff for accuracy and proper use of the card. The RO will forward a copy of each center’s account statement to the center for review. Any discrepancies with their travel records must be reconciled by the center, and reported to the RO within 25 calendar days of receipt of the statement by the RO. The RO will authorize payment and file dispute forms when necessary, within 30 days of receipt. All documentation must be maintained by the RO.

b. ROs must review the 2110 Report for Center Contracts, Page 3 – Net Center Actual Expense – All Categories, Line 6 – Student Transportation/Meal Allowances to ensure costs are allowable and auditable.  Note:  Student transportation/meal allowance includes luggage fees.

R11. Unused-Ticket Recovery

Centers must develop a system to promptly identify and report any unused, lost, or stolen travel tickets in accordance with RO direction. Such tickets must be returned to the issuing agency for credit to the government travel account. When tickets are not returned or used, the center must document the amount of the ticket deducted from the student’s allowance.

R12. Staff Travel

Centers must ensure that staff travel expenses for escorts and other purposes are paid from center operating funds.


 

 Forms

 
  
Form 5-01 SF 1034 Public Invoice Center Contract Example
Form 5-02 Voucher Back-Up Sheet for Center Contract and Example
Form 5-03 SF 1034 Public Invoice OA and CTS Contracts and Example
Form 5-04 Voucher Back-Up Sheet for OA and CTS Contracts and Example
Form 5-06 Admin and Mgmt of Job Corps Contractor-Held Government-Furnished Property-Request to Designate Excess Property
 

 Exhibits

 
  
Exhibit 5-1 Standard Operating Procedures
Exhibit 5-8 Use of Job Corps Funds for Child Development Centers and Parent-Child Programs
 

 Appendices

 
  
Appendix 502 Financial Management for Center Contracts
Appendix 503 Job Corps OA and CTS Cost Reporting and Budgeting Requirements
Appendix 504 Taxation of Job Corps Contractors by States and Subdivisions Thereof
Appendix 505 Admin and Mgmt of Job Corps Contractor-Held Government-Furnished Property
Appendix 505a Admin and Mgmt of Job Corps Contractor-Held Government-Furnished Property-Disposition of Excess
Appendix 506 Financial Management for CCCs
 

 Legal/CFR Requirements

 
  
40 CFR Part 745
40 CFR Part 763