Lois Sunderland and Yolanda Mitchell 020315 Grants Management Services GM Consulting Federal Cash Management Requirements Project Cash Requests PCR Final Expenditure Reports FER ID: 711835
Download Presentation The PPT/PDF document "Managing Your Grant: Highs And Lows" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Managing Your Grant: Highs And Lows
Lois Sunderland and Yolanda Mitchell 02/03/15Slide2
Grants Management ServicesGM Consulting
Federal
Cash Management
Requirements
Project Cash Requests (PCR)
Final Expenditure Reports (FER
)
Federal Requirements (EDGAR
)
Business
Rules and
Helpful
TipsSlide3
Grants Management ServicesSubrecipient Monitoring (SRM)
The SRM vs Single Audits (A-133
)
Basics to Prepare for
SRM
Trending Statewide Issues/Findings
Questions and
Test your
KnowledgeSlide4
Grants and Requirements
All
grants, federal or state, have requirements
to ensure
the grant is used for its
intended purpose.
If
determined
to be noncompliant the funds would be required to be returned and future funding could be in
jeopardy.
Determination
could be through an audit, monitoring or simple desk review. Slide5
The Highs
In compliance
Funds flowing
Lower Monitoring
Risk
Increase in grant opportunities
The Lows
Higher risk of audit
Risk of grant termination,
suspension
Withholding of funds or repayment
Reimbursement
StatusSlide6
Federal Cash Management Requirements Immediate cash needs
Expenses
already incurred (
i.e
invoice in
hand
, payroll)
Should
not draw for outstanding encumbrances until they are ready to be
paidSlide7
Project Cash RequestsIdeally, submit monthly
Actual cash basis expenditures – do not
estimateSlide8
Project Cash RequestsAdvances for upcoming month
Support Documentation (may attach summary report to PCR)Slide9
Federal Grant RequirementsSubstantially Approve Date (SAD) Period
of Availability
Substantially
Approve Date determines the date that funds can be
obligated
Changes
equal to more than 10% of the budgeted cell (This does not include unauthorized expenses)
Slide10
Federal Grant RequirementsBudget to revision (Do not obligate prior to revision)
When
an obligation is made?
Slide11
Final Expenditure Reports Due via CCIP on or by Sept 30th (90 days
after the project ending date)
Must reflect actual expenditures
No encumbrances
21
st
Century grant does not have a
carryover provision Slide12
Definition of Obligation
EDGAR
34 CFR 80.3
Obligations means the amounts of orders placed, contracts and
subgrants
awarded, goods and services
received
, and similar transactions during a given period that will require payment by the grantee…Slide13
When is an Obligation Made?
If
the obligation is for:
If the obligation is made:
Acquisition
of real or personal property
On the date the grantee makes a binding written commitment to acquire property.
Personal services by an employee
of the grantee
When the services
are performed.
Travel
When
the travel is taken.Slide14
When is an Obligation Made?
If
the obligation is for:
The obligation is made:
Personal
services by a contractor who is not an employee of the grantee
On the date on which the grantee makes a binding written commitment to obtain the services.
Public
utility services
When the grantee receives the services.
Rental of real or personal property
When the grantee uses the property.Slide15
Business RulesOnly
one advance per month, however unlimited requests for negative cash
Grants Management starts
approving PCRs around the 25
st
of the month for
next month advances
Grants Management may contact districts to verify amounts
Slide16
Business RulesBudget revisions (Do not obligate prior to revision)
Grants Management reviews FERs on a f
irst-in, first-out
basis
Updated business rules coming in July 2016 resulting from Omni
Circular
Slide17
Grants Management TipsCommunication
is key to an efficient and effective grant process
.
Not
just between
the department and
district
District Internal groups (various offices within the district)
District’s relationship with External groupsDistrict and their external auditor (AOS, IPA) Slide18
Grants Management Tips
Periodic
status updates:
Internally:
anything that may effect the grant programmatically or financially should be updated.
If everything is on the table there will be no surprises during grant closeout.
Assume
Nothing!
Ask Your
grants management/program consultant or auditor.
Slide19
Subrecipient MonitoringSub-recipient
Monitoring vs Single Audits (A-133)
Subrecipient Monitoring
- the
process of providing oversight on
subawards
throughout their grant lifecycle including:
Monitor and ensure
goals are metEnsure compliance with laws and grant provisionsVerify source documents and data accuracy Slide20
Subrecipient MonitoringSingle
Audit Act (A-133
)
A
single audit is an organization-wide audit that includes both the entity's financial statements as well as its federal awards.
Slide21
Subrecipient MonitoringSingle
Audit Act (A-133
)
The
Office of Management and Budget Circular No. A-133, Audits of States, Local
Governments
and Non-Profit Organizations, requires entities that
expend
$500,000 or more a year in federal awards to have a single or program-specific audit conducted.
Slide22
Subrecipient MonitoringNew:
The
Combined Federal Circular raised the Single Audit Threshold from $500,000 to $750,000 for the
2016
grant period.
Slide23
Basics to Prepare for SRMProper Support Documentation (Invoices, Cancelled Checks, Time & Effort, Semi-Annual Certs, etc…) -34 CFR 80.20-(b) (1) & (2) Standards for Financial Management Systems.
All
records must be kept for 3-years – 34 CFR 80.42 (ii) (b)
Slide24
Basics to Prepare for SRM
Accounting
to conform to a data coding structure (i.e. USAS-Uniform School Accounting System) – OAC 3301-19-03(A).
AOS mandates that each entity must enter an expenditure with proper code classification 3-digit object code and 4 digit Function/Purpose
Slide25
Basics to Prepare for SRM
Proper use of Budget and Budget Revisions– 34 CFR 80.30 C(ii).
GRANTEE MUST OBTAIN PRIOR APPROVAL IF ACTIVITIES ARE EXPECTED TO EXCEED 10% OF THE CURRENT TOTAL APPROVED BUDGET
Slide26
Trending Statewide Issues
1
) Lack
of or incomplete Time & Effort forms/Semi-Annual Certifications.
2 CFR 225
Appendix B 8.g. (1-3) Where an employee work on multiple activities, A Fed award and a non-Fed award, 2 or more indirect activities =
T
& E
Expected to work solely on a single Fed award=Semi Annual cert
Slide27
Trending Statewide Issues
2
) Activities
Allowed or
Unallowed
34 CFR 80.22 and/or Allocable Costs -2 CFR Part 225 Appendix A-Section c(3)(a) and C(1)(a-j) Costs that are:
Reasonable, allocable, necessary, & compliant
Slide28
Trending Statewide Issues
3) Obligations/Period
of Availability (POA) and Liquidation of Funds 34 CFR
80.23 -
Ensure expenses are obligated within the project period and all salaries and expenses and are paid prior to
Sept. 30
(FER due date).
Slide29
Trending Statewide Issues
4) Cash
Management & Time Lapsed between payments. Monitoring cash drawdowns-
34 CFR 80.20 (b)(7) and 80.21 (c ) Slide30
Trending Statewide Issues
5) Budget
Revisions
– 34
CFR 80.30
(c
) (ii)-
Changes- A budget revision is required when program activities are expected to exceed 10 percent of the current total approved
budgeted cell
and must be approved by
the department
prior
to OBLIGATING the funds.Slide31
Trending Statewide Issues
6
) Adherence
to the
local district’s established
inventory policy when coding supplies vs capital outlay (i.e. computers)
7) Expenses
must be coded
properly
. Some entities may not be required to use specific coding but must still adhere to definitions outlined in the USAS manual
.Slide32
Trending Statewide Issues
8
)
An Indirect Cost Rate (ICR) is
optional, however a rate is required in order to pay severance or capture HR/Fiscal Department costs. Budget grid has a specific field for indirect cost.Slide33
Questions?Slide34
Test Your Knowledge
My
grant has a substantially approved date of
Aug. 15.
Can I
charge
my grant for time worked
Aug.
1 through
Aug.
10 if I issued payment on
Aug. 16?
Yes
NoSlide35
Test Your Knowledge
On July
1,
I have $10,000 approved in my supply budget. As of
Oct. 30,
I have obligated (placed orders) for supplies totaling $15,000 and issued payments totaling $10,000.
I
submit a budget revision on
Nov. 15
to increase my supply line to $15,000 and issue the remaining $5,000 in payments on the same day. Is this acceptable
?
Yes
NoSlide36
Test Your KnowledgeWhat does the substantially approved date determine?
The date you can being to issue payments
The date you can begin to enter into obligations
Per federal guidelines, when are salaries obligated?
On the date they are paid to the employee
On the date they are worked by the employeeSlide37
Test Your KnowledgeThe last day to obligate funds is June
30.
The last day to issue payment is
Sept. 30.
I
issued a purchase order on June
30
and ordered
supplies
on Aug. 15. The supplies were received Sept. 1 and payment was issued on Sept. 30. Is this an allowable expense?YesNoSlide38
Test Your KnowledgeI drew down 10% of my allocation on July
1,
how long do I have to liquidate these funds
?
No specific time because I’m allowed to have 10% cash on hand at any
time.
I
must liquidate the funds immediately. If don’t have invoices and payroll to liquate the 10% immediately, I am required to request less than 10% when I submit my PCR.Slide39
Test Your Knowledge
What is the current threshold for a Single Audit? What is the new threshold beginning in 2016?
A) $750,000 and $500,000
B)
$
500,000 and $750,000
Is
a
n
invoice alone
sufficient
documentation to support an expense
?
A) Yes
B) NoSlide40
Test Your Knowledge
Records must be retained for three
years
after the grantee
makes
final payment and all other pending matters are closed.
A) True
B) False
Do you use a Time & Effort form when you work 100% of your time on 21
st
Century activities?
A) Yes
B) NoSlide41
Contact InformationYolanda Mitchell, Grants Management Supervisor yolanda.mitchell@education.ohio.gov
(
614) 728-1568
Lois Sunderland, External
Audit Supervisor
lois.sunderland@education.ohio.gov
(614
) 387-7714Slide42
education.ohio.govSlide43
Follow Superintendent Ross on TwitterSlide44
Social Media
@
OHEducation
ohio
-department-of-education
Ohio Families and Education
Ohio Teachers’ Homeroom
OhioEdDept
storify.com/ohioEdDept