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in violation of the provision of this part. Describe: The Lead Agency executes and maintains a written agreement with CCDF sub-recipients that includes a budget that itemizes allowable categories of expenditures. CCDF sub-recipients are also required to submit a request for reimbursement monthly. This request details the expenditures for which the sub-recipient is requesting reimbursement and is reviewed by the Lead Agency before disbursement of funds to ensure reasonable and allowability. The Lead Agency Audits and Compliance Division also reserves the right to audit CCDF sub-recipients where expenditures of CCDF funds are reviewed to ensure they are supported and allowable. The Department of Early Care and Learning (DECAL) Finance department tracks expenditures using 36-character coding structure to ensure expenditures are recorded in accordance with the State budget and ACF -696 categories. Again, DECAL uses budget variances to identify unusual spending patterns, suggest areas for expense reductions, and monitor overall financial health of the program. c. Processes and procedures to prepare and submit required state and federal fiscal reporting. Describe: The Department of Early Care and Learning (DECAL) Finance staff uses the State’s TeamWorks (Financial) system to record and report all financial transactions. DECAL Finance staff collaborates with the Office of Planning and Budget and the State Accounting office for State budget and accounting policy compliance. TeamWorks Queries are generated for internal reports and to reconcile to the State’s Budgetary Compliance Report, Schedule of Federal Awards and the Annual Comprehensive Financial Report. DECAL Finance staff are required to input data on year-end reporting forms which the State Accounting Office uses for the Statewide reports. State training sessions conducted by the State Accounting Office. DECAL Finance uses internal training sessions for State reports and HHS online resources to train Finance staff for inputting information on the ACF-696 report. DECAL’s general ledger uses specific chart field identifiers to properly categorize general ledger amounts to the corresponding ACF-696 category. d. Other. Describe: 10.1.3 Effectiveness of fiscal management practices Describe how the Lead Agency knows there are effective fiscal management practices in place for all CCDF expenditures, including: a. How the Lead Agency defines effective fiscal management practices. Describe: Effective fiscal management (EFM) practices ensure financial information is credible, accurate and reported promptly. EFM practices are implemented to prevent errors, overspending, inaccurate reports. EFM practices include training and professional development courses for finance staff to ensure staff understand proper financial approvals, how review of budget reports and the importance of immediately addressing errors or violations of financial policies. b. How the Lead Agency measures and tracks results of their fiscal management practices. Describe: The Department of Early Care and Learning (DECAL) develops a comprehensive annual budget each fiscal year. CCDF enrollment information and historical expenditure are used to project next year’s budgets. Monthly and quarterly budget reports are generated and disseminated to Child Care and Parent Services (CAPS) managers. Detailed budget coding for the CCDF program is used to quickly identify program costs. Finance schedules quarterly meetings with program staff to examine all costs and to compare