1. Child Support Finance 101 2007 Annual Child Support Training Conference and Expo

2. Child Support Finance 101 Today’s Presentation An overview of LCSA key fiscal management activities CS921 (104) EDP Funding (104) Prior Approval Requirements (104) CS356 (104) CCSAS Costs Depreciation Disposition of Assets COWCAP POC/MOU Audits (107)

3. Child Support Finance 101 Moderator & Presenters Connie Brunn, Director San Bernardino County Department of Child Support Services Justina Gould, Manager DCSS Budget and County Allocations Robert Bash, Director Fresno County Department of Child Support Services John Steele, Administrative Manager Riverside County Department of Child Support Services

4. Child Support Finance 101 Budget Allocation Requests CS 921 Detailed administrative budget information used to display: FTEs Average salaries Expenditures Annual LCSA letter requesting data Data collected via web form Data used for various reports

5. Child Support Finance 101 Local Perspective - CS 921 Administrative Budget Information: Few people in LCSAs see this form FTEs are exactly that Explanations are necessary Classifications can vary county to county Section K is very important

6. Child Support Finance 101 EDP Recurring & Non-Recurring Funding Annual LCSA letter requesting budget data Submit via EDP web form M&O funding Current need Historical trend Non-recurring funding New non-recurring projects LCSAs submit requests in January

7. Child Support Finance 101 Local Perspective – EDP Things to watch Local definitions of EDP versus State definitions Local charges usually more detailed Timing issues Staffing and overhead

8. Child Support Finance 101 Prior Approval Requirements Administrative and EDP Policy in CSS Letters 04-20 and 05-05 All automation products and services planned for purchase using EDP or Administrative non-EDP funds Including personal computers, servers, printers, integrated voice response units, imaging systems, new and existing software, and web contracting services

9. Child Support Finance 101 Administrative and EDP Claim Processes (CS 356) Federal requirement to: Report expenditures Expenditure data used Reconcile funds advanced to LCSAs To determine future funding For various internal reports

10. Child Support Finance 101 Administrative and EDP Claim Processes (CS 356) Laws and Rules OMB Circular A-133 OMB Circular A-87 CFR Part 45, Section 92.25(b) Family Code 17714(b)

11. Child Support Finance 101 Administrative and EDP Claim Processes Submit quarterly claim 15 days after the end of the quarter Time certify vs. Time study Time certify When staff are working 100% on one activity or function Time study When staff are spending time on two or more activities or functions In the mid-month of quarters one and four (August and February)

12. Child Support Finance 101 Local Perspective – Claims Quarterly process Track expenses ongoing Categorize EDP expenses by claim numbers Remember cash basis accounting Less detail than CS 921 Different detail than CS 921

13. Child Support Finance 101 Local Perspective - Claims Supplemental Claims Abatements Reconciliation to final allocation

14. Child Support Finance 101 CCSAS Costs Conversion funding available Limited funding, not sufficient to cover all costs for: staff overtime temporary help Time certify or Time study Keep documentation for four years and four months Travel costs can be reimbursed separately CCSAS equipment tracking policy under development

15. Child Support Finance 101 Local Perspective Track the asset Take care to ensure that books are kept separate Non-CCSAS EDP assets

16. Child Support Finance 101 Depreciation Title 45 CFR, Section 95.705(a) AT 94-5 LCSA Letter 05-24 CSS Letter 04-20 Approved to purchase Recover costs over five years

17. Child Support Finance 101 Depreciation Non-EDP Equipment Purchase price over $25,000 Depreciate/claim over five years Equipment cost $60,000 ($60,000/5) Year 1 claim $12,000 Year 2 claim $12,000 Year 3 claim $12,000 Year 4 claim $12,000 Year 5 claim $12,000

18. Child Support Finance 101 Depreciation EDP Equipment Purchase price over $5,000 Depreciate/claim over five years Including EDP equipment purchased with Admin (Non-EDP) funds Example: Training room PCs

19. Child Support Finance 101 Local Perspective – Depreciation Understand the asset County “float”

20. Child Support Finance 101 Disposition of Assets For Policy: CSS Letter 04-20 and LCSA Letter 05-19 Determine fair market value Notify DCSS of disposal Retain supporting documentation for four years and four months Consider recycling

21. Child Support Finance 101 Disposition of Assets Under $5,000 LCSAs may transfer, sell, dispose using county rules Proceeds must be abated as program income on administrative expense claim

22. Child Support Finance 101 Disposition of Assets Over $5,000 Transfer equipment Sell equipment Proceeds must be abated Dispose of equipment using county rules

23. Child Support Finance 101 Local Perspective Recovered money can be reduced by costs Environmental fees

24. Child Support Finance 101 Overhead/Indirect Costs (aka A-87 or Countywide Cost Allocation Plan) Claim State Controller’s Office approved amount only Should claim ¼ of the annual cost on quarterly expense claim Can split overhead costs with EDP An exception to cash basis claiming rule

25. Child Support Finance 101 Local Perspective LCSA review supporting documentation and validate charges

26. Child Support Finance 101 POC/MOU Requirements Title 45 CFR 303.107 for fiscal portion Agreements should include: Budget estimates Covered expenditures Methods of determining costs Procedures for billing IV-D agency

27. Child Support Finance 101 Local Perspective Go through your county review process County Counsel Monitor for renewal Timeframes can be different When costs change – amend Must go through your county process

28. Child Support Finance 101 Audits Authority OMB A-87 and A-133 CFR 302.10 and 302.14 CSS Letter 04-20 LCSA Letter 05-09 History and process in this letter

29. Child Support Finance 101 Audits Keep supporting documentation for at least four years and four months Two (of six) most common audit findings Accrual vs. cash basis accounting Income or program income not abated on Administrative Expense Claim

30. Child Support Finance 101 Local Perspective Get used to audits Retain backup for required timeframe Keep findings Scope of work

31. Child Support Finance 101 Wrap Up Questions? Justina Gould (916) 464-5015 Your County Allocations Analyst

32. Child Support Finance 101 THANK YOU