PROSECUTOR’S BUDGETS - PowerPoint Presentation

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PROSECUTOR’S BUDGETSBy: Steve SonnegaMorgan County Prosecutor

A Guide to Keep Your Office Running and Demonstrating Leadership to Your CommunitySlide2

AGENDA

Revenue Streams

Expenditures

Grants

Public Relations

QuestionsSlide3

Revenue Streams (Morgan County)

County General Fund (Fund # 108)

Law Enforcement-Asset Forfeiture (#4906)

Deferral (INF) and Diversion (#2505)

Check Deception (#2506)

Federal Forfeiture (#4912)

Child Support Incentive (#8897)Slide4

General Fund

Tax money appropriated by the county council for your office on an annual basis as part of the County annual budget approved by the State.

Most restricted fund in terms of Prosecutor control

a. Additional Requests

b. Transfers allowed within same 100 # series

3.

Morgan County Example on next slideSlide5

General Fund ExampleSlide6

Law Enforcement-Asset Forfeiture

Requires a County Ordinance to create

Asset Forfeiture as a Prosecutor tool to fund necessary and proper expenses of Prosecutor/Law Enforcement from the criminals instead of the hard working taxpayers

Greater Prosecutor ability to control creation of revenue and expenditure of proceeds

Budgeted on an annual basis with non-taxpayer revenue from the previous year

County Council has to approve budget so good relationship with County Council is essential

Note: Politically best to only use asset forfeiture in cases where Defendant is charged with a crime.Slide7

Deferral and Diversion

Requires a County Ordinance to Create

Used as a tool by Prosecutor to ease Court dockets, conserve scarce Prosecutor resources and keep low-level offenders out of the system

Unfortunately, it has become a necessary means for most offices to make pay-roll and fund essential services

Setting up your program:

Have written (internal) eligibility guidelines

Hire a program administrator/director

Create partnerships with Courts and Law Enforcement

5. Requires an annual budget approved by County Council

6. Greater Prosecutor control of revenue generation and fund expenditures Slide8

Federal Forfeiture

Requires a County ordinance to create

Requires compliance with federal rules on fund acquisition,

documentation of man-hours, expenditure and reporting (more paperwork)

Funds must be segregated and used only for specific expenses related to narcotics investigation and enforcement

Requires an annual budget approved by County council

More restricted in terms of how the fund may be used

You get an opportunity to work with the federal governmentSlide9

Check Deception

Established back in the day when merchants

took checks

Requires an annual budget with County Council approval

Useful way for Prosecutors to build good-will with merchants and small businesses

State law allows Prosecutor’s to collect a $20 per check Prosecutors handling fee and a $10 per check merchant’s fee

Flexible use of fund proceedsSlide10

Expenditures

All expenditures of funds paid through the claims process

Requires the following:

a. Verified claim from vendor/service provider

b. Supporting documentation of expenses

c. W-9 form from vendor on file

3. All claims submitted to County Auditor and approved by County Commissioners

4. When purchasing equipment for other agencies, create a paper trail with transmittal letter to property user and supervisor

5. Scan and email for permanent records Slide11

Grants

There are (were) several grants available, including STOP (domestic violence) and VOCA (victim’s advocate)

Most grants administered by the Indiana Criminal Justice Institute (ICJI)

Caveats:

Grant money is running low

Grant writing, quarterly and annual report writing and other administrative requirements is time consuming

Grant money can dry up leaving Counties left on their own

Lots of extra work for County Auditor

4. No separate budgets in Morgan County. Grant money is budgeted and expended in existing budgets in the county.Slide12

Public Relations

All budget matters and County Council meetings are public and the media and general public will watch how you account for public money

A personal and professional relationship with your County Council, County Commissioners and other office holders is essential to a successful Prosecutor’s Office

As County Prosecutor, you should set the example for the community and for other county officers in terms of ethics and fiscal accountability.

You will have to hold other public officials accountable so make sure that you don’t forfeit the “moral high ground”

Review your budgeted accounts each month and/or have a really smart Chief Deputy ProsecutorSlide13

Title IV-D Program Overview &Funding Basics

Karla Mantia, Title IV-D Policy Liaison

Prosecuting Attorneys Council

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Title IV-D Program

Title IV-D of the Social Security Act is:

A federally funded grant program

Title IV-D = Title IV-D of the Social Security Act

A condition of states receiving federal TANF/block grant funds

TANF Program = Title IV-A of the Social Security Act

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Title IV-D Program

Paradigm Shift for IV-D Program:

The past:

Focus on cost recovery

Set orders high – the higher the better – collect what you can

Wait till arrears accumulate before enforcement

Program was seen as representing the custodial party

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Title IV-D ProgramToday:

More holistic family-centered approach

Current focus of program – income to families

Use of early intervention to prevent arrears

Setting more realistic orders

Expedited modification

We serve both parentsSlide17

Family-Centered Child Support Services

Healthy Family

Relationships

CSE

Core Mission:

Locate Parents

Establish Paternity

Establish Orders

Collect Support

Child

Support

Prevention

Engagement

of Fathers

from Birth

Economic

Stability

Family Violence

Collaboration

Health Care

CoverageSlide18

Indiana IV-D Program

Indiana IV-D Program

CSB -single state unit--program administrator

IPAC plays a supporting role on behalf of prosecutors

Policy

Training

Legislation

Liaison with other branches/agencies

Funded and carried out locally through voluntary Cooperative Agreements with prosecutors. clerks and some courts

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Cooperative Agreements

Cooperative Agreement –

federal technical term --used to flow federal funds

……a legal instrument of financial assistance between a Federal awarding agency or pass-through entity and a non-Federal entity ….used to enter into a relationship the principal purpose of which is to transfer anything of value from the Federal awarding agency or pass-through entity to the non-Federal entity to carry out a public purpose authorized by a law of the United States…

2

CFR 200.24

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Indiana – Title IV-D Funding

Indiana’s IV-D funding scheme is complex:

Prosecutors - funded with state federal & county funds

Federal Financial Participation (66% reimbursement)

State “100%” funding to counties for prosecutors

State appropriations for CSB, IPAC, Prosecutors, Chiefs

Federal Incentives -prosecutors, clerks and county IV-D

Indirect Costs FFP -reimbursed to counties—utilities, phones

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Indiana – Title IV-D Funding

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Title IV-D Funding Requirements

Receipt of federal funds:

Requires compliance with federal grant requirements

makes the entity subject to certain Federal & mandated state financial audits

federal grant funds

and

any state and local matching funds are subject to federal grant funding rules

Federal IV-D grant funds

must be properly expended and accounted for in accordance with federal, state and local

laws/rules

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Title IV-D Funding Requirements

Federal & Mandated State Financial

Audits

Annual

audits mandated by federal law and conducted by SBOA on behalf of Federal Government (A-133 audits of FSSA, DCS prosecutors, clerks, courts, county auditors

)

HHS/OCSE/IG random audits – e.g. limited cost audits

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Title IV-D Funding Requirements

Federal & Mandated State Financial

Audits

Monitoring

of all IV-D funds (state and local) is required by DCS pursuant to federal law

Other audits - security-related (IRS & SSA) could result in loss of federal tax refund intercept collections - $63 million impact to Indiana families

.

Data Reliability Audits (Incentives)

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Title IV-D Funding Requirements

Allowable v. Unallowable Costs

Rules for appropriate use of IV-D program funds claimed for FFP (66% fed reimbursement) are found at 45 CFR 304

Expenditures of IV-D program funds (fed/state and county) must also meet the general federal requirements for grants found at 2 CFR 200 which is applicable to HHS federal grants generally

Expenditures must be consistent with state / local rules

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Title IV-D Funding Requirements

Allowable v. Unallowable

Costs

2 CFR 200 Appendix B provides the allowability/unallowability of specific items for federal grant dollars used by state and local governments (Formerly OMB Circulars A-87 and other provisions)

http://www.ecfr.gov

(link to Electronic Code of Federal Regulations)

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Title IV-D Funding Requirements

Allowable v. Unallowable Costs

45 CFR 304.20 specific to IV-D program –

covers expenditures for which Federal financial reimbursement (FFP) is available

= allowable expenses

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Title IV-D Funding Requirements

Allowable v. Unallowable Costs

45 CFR 304.21 & 23 cover items that are not allowable:

Service of process & court filing fees unless the court or law enforcement agency would normally be required to pay the fees

Salary, training, furniture, admin staff & travel for judges (Not IV-D magistrates under a cooperative agreement)

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Title IV-D Funding Requirements

Allowable v. Unallowable Costs

Unallowable Costs continued

:

Construction and major renovations

Expenditures for jailing of parents in IV-D cases

Counsel for indigent defendants in IV-D actions

Guardians ad

litem

in IV-D actions

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Title IV-D Funding Requirements

Allowable v. Unallowable

Costs

2 CFR 200- more general to HHS grants --

costs must be:

reasonable

necessary

allocable

to a federal award

,

authorized

or not prohibited

under state or fed

law

consistent

with policies,

regs

and procedures that apply uniformly

to federal

awards and other activities

not exceed actual cost incurred

by a public entity &

documented

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Title IV-D Funding Requirements

Allowable v. Unallowable

Costs

If

a

Court or prosecutor

has no policy to

support an expenditure,

an auditor will look to county policy

.

If application of the county policy does not support an expenditure, an audit finding could result and repayment required.

Example: overtime, bonuses, etc..

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Title IV-D Funding Requirements

Cost Allocation

If an expenditure is made to support both a IV-D & a non IV-D activity , it should be properly allocated

A reasonable allocation method should be utilized and backup documentation maintained to support how costs are allocated between IV-D and non IV-D.

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Title IV-D Funding Requirements Cost Allocation

Examples:

1-A copier purchased for use by both IV-D &Criminal Div. staff or Deputy Prosecutors supporting both the IV-D and Criminal Offices (When IV-D hours aren’t easily tracked)

3-Supplemental pay to the elected Prosecutor

4-Improvements made to the entire office (if paid directly by Prosecutor’s Office)Slide35

Title IV-D Funding RequirementsProsecutor and Chief Deputy Salaries

Supreme Court

pays salaries for prosecutors and chiefs

S Ct Admin/ IPAC /Sequoia Consulting gather the info for indirect and direct cost federal reimbursement

Indirect costs

- a portion of prosecutors’ and some chiefs’ salaries is cost allocated to IV-D using an allocation formula

Note

—if county supplemental pay ($5,000) is paid to prosecutors, it should be allocated using the same formula as state paid portion (% can be obtained from IPAC.) Slide36

Title IV-D Funding RequirementsProsecutor and Chief Deputy Salaries

Direct costs-

Prosecutor IV-D time spent on handling IV-D cases prosecutor/chief time spent on IV-D (court hearing, meeting with parents, etc…) should be documented and submitted to Sequoia for the claim for reimbursement

Please contact Amy Burgher with IPAC for more information on tracking and submitting time

amburgher@ipac.in.gov

These reimbursements fund services provided by IPAC for prosecutors—LEXIS, training, IPAC staff, etc…Slide37

Title IV-D Funding Requirements

Incentive Funds- Requirements

Federal incentives are earned for good performance in the program. (45 CFR 305)

5 factors measured plus TDC= Total Distributed Collections

Incentives must be spent

ONLY

for IV-D purposes.

Incentives must be used to

supplement

and

not

supplant

county funds.

Rules for allowable uses are same generally as those for reimbursement (45 CFR 304)

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Title IV-D Funding Requirements

Incentive Funds- Requirements

Expenditures of incentive funds do not need an appropriation or approval from the county fiscal body

EXCEPT

if used to increase or supplement the salary of an elected official.

In Indiana funds divided four ways (IC 31-25-4-23):

Prosecutor – 33.3%

CSB- 22.2%

Clerks – 22.2%

County IV-D fund – 22.2%

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Title IV-D Funding Requirements

Incentive Funds

Expenditures of incentive funds are

not

reimbursable.

Incentive funds may be shared between county offices---use new

Incentive Transfer Agreement

Form

Items paid for from the incentive funds should

NEVER

be reported on a monthly expenditure form as incentive expenditures are not eligible for 66% reimbursement.

Incentive funds should

not

be moved into the county general fund as incentive funds can lose their identity and be improperly claimed for reimbursement when spent.

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Title IV-D Funding Requirements

Incentive Funds

Use of incentive funds requires a two part analysis:

1- Is it an allowable use?

2-Will the use of the funds supplement and not supplant existing funds?

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Title IV-D Funding Requirements

Incentive Funds

Allowable uses for Incentives:

Is it allowable? ---Rules are generally the same for expenditures for which you would seek federal reimbursement (66%) (must also follow 2 CFR 200).

Some allowable uses:

IV-D investigator

locate services—Accurint, Lexis

Nexis

,

DoxPop

additional IV-D staff

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Title IV-D Funding Requirements

Incentive Funds

Allowable uses for Incentives continued:

overtime/compensation for IV-D staff

Non-custodial parent liaison position

Other contract services such as case stratification, paperless, etc…

IV-D Outreach to publicize IV-D services (posters, brochures)

Training for IV-D staff

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Title IV-D Funding Requirements

Incentive Funds

Supplement v. Supplant- a

tougher question

Rule applies to all county financial support of the IV-D program. – funding for IV-D prosecutor, clerks, courts compared to reinvestment of incentives

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Title IV-D Funding Requirements

Incentive Funds

General Rule

: county appropriations to fund the IV-D program (clerk, prosecutor, IV-D court) may not be reduced as a result of the receipt and reinvestment of incentive payments. (

SEE OCSE AT 01-04 for guidance )

CSB Guidance:

An office cannot stop spending county general funds and instead operate the IV-D office strictly with incentive funds. The purpose of incentive funds is to improve IV-D operations above current levels.

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Title IV-D Funding Requirements

Incentive funds

Current balances in County IV-D, Clerk and Prosecutor accounts statewide:

$31,299,376.98

(as of 6/30/14)

See incentive balance report to determine your balance.

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Title IV-D Funding Requirements

Incentive funds

Bottom Line:

Title IV-D incentives have been earned by your office for your county and balances exist which

must

be spent on the IV-D program. Be creative, share the funds between offices, make a countywide commitment to improve services and ensure all families in need of IV-D services receive them.

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Title IV-D Funding RequirementsIncentive Funds

Advice:

If you have any doubts as to whether the use is allowable or the use may be a supplant, you should contact CSB AO Inquiry email or Rob Conrad to seek advice. It is better to run things by them rather than finding out the rules prohibited the use after the fact in an audit finding.

Robert.conrad@dcs.in.gov

(317) 234-5980

DCSAOInquiries@dcs.in.gov

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Available Guidance

Resources

Federal office website

http://www.acf.hhs.gov/programs/css

ECFR:

http://www.ecfr.gov/cgi-bin/ECFR?page=browse

DCS Website:

http://www.in.gov/dcs/

DCS/CSB

Administrative Claiming Guide, available on the Child Support Resources Website (CSR)

DCS/CSB also issues periodic guidance on common issues impacting IV-D, (also available on the CSR)

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Questions & Answers

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Prosecutor BudgetsHow to Get Them Through County CouncilSlide51

I. Why Did You Run for Prosecutor? 1. Truth, Justice and the American Way

2. Protect Your County

3. Put Bad Guys in JailSlide52

II. WHAT YOU WON! 1. Employee headaches 2. Media scrutiny

3. Police skeptics

4. Public Officials envy

5. County Council and Commissioner oversight

6. Judicial review

7. Budget responsibilitySlide53

III. POWER 1. NOBODY GIVES YOU POWER, REAL POWER YOU TAKE!

2. SEIZE THE POWER!

JR and Jock Ewing

Michael Corleone

Curtis T Hill, Jr.Slide54

IV. POWER PRINCIPLES -Applicable to many situations and relationships -Focus on prosecutors in County government

-Budgets

-Office policies/handbookSlide55

V. KNOW YOUR POWER 1. Political-top vote getter, well known 2. Voice for Victims

3. Punish Evildoers

4. Wear White Hat

5. Higher Education

6. Pillar of Community

7. Above Politics in Execution of DutiesSlide56

VI. KNOW YOUR OPPONENT COUNTY COUNCIL AND COMMISSIONERS 1. Political makeup

2. Employment, Family, Interests/Hobbies

3. Political philosophy and goals

4. Why did they run for office?

5. What do they want to gain? Ambitions?

6. Power of money. ControlSlide57

VII. KNOW YOUR SUBJECT 1. Master your topic 2. Be the smartest in the room (on topic)

3. Master the details

4. Use your trial skills-graphs and photos

5. Experts

-office manager, IT, DPAs in DV and OWI

-State officials- IPAC, CSBSlide58

VII. KNOW YOUR RELATIONSHIPS 1. Assigned liaison or develop your own 2. Personal meeting with Council members

3. Individual/small group(less than four)

4. Give Office tour/Introduce key staff

5. Explain your goals and philosophy

6. Show your enthusiasm

7. Hard to say “no” to someone you likeSlide59

IX. KNOW YOUR SHOW 1. “Don’t send a boy”- Curtis Hill

Delegate carefully. Understand when your presence and stature is needed.

2. If in doubt, go yourself.

3. Show expertise and skills in all forums

4. Be flexible in your approach

-pick your paths and methods—beg,

borrow, cry and whine. Don’t steal or yellSlide60

X. KNOW AND SHOW YOUR “CAUSE” 1. Request is grounded in “Greater Good” -Not for your personal benefit

-Positive for Community

-Efficient

-Cost effective/Financially responsible

2. Public Safety—You and your Sheriff

-Primary advocates for public safety

-Use that Bully PulpitSlide61

3. Make it hard to say NO! - No = Pain

- Cause Council to feel pain

- If they say no—Public Safety suffers and they caused the suffering

- Distinguish Community “needs” versus “wants”. You ask for “needs”Slide62

XI. KNOW YOUR LIMITS 1. Pick your battles 2. Learn to count

Council 1-4

Commissioners 1-2

3. Bow out gracefully

4. You WILL be back

“A man’s got to know his limitations.”

“Dirty” Harry Callahan

MAGNUM FORCE 1973