4 Centralized Personnel Plan CPP funding provides a mechanism for the reimbursement of direct costs incurred by a State for centralized personnel, accounting, and procurement staff activities in support of federal awards programs – to include National Guard Cooperative Agreement Appendices. (NGR5-1/ANGI63-101)“It costs money to spend money.”
5 General Rules for CPPsLimited to the reimbursement of the actual cost of providing centralized service activities. (OMB Circular A-87)Restricted to direct cost of salaries and fringe benefits only. (NGR5-1/ANGI )Based on an equitable distribution of costs for services provided. (OMB Circular A-87)
6 General Rules (continued) Costs presented must be reasonable. (Prudent person standard) (OMB Circular A-87, NGR5-1/ANGI )Prepared by State Military Department (SMD), reviewed and approved by USPFO, funded by NGB Program Manager. (NGR5-1/ANGI )Not an authorized charge against an agreement without USPFO approved plan. (NGR5-1/ANGI )
7 General Rules (continued) Costs and workload data are projected for upcoming budget year. (OMB Circular A-87)Must be reconciled to actual data. Actual salaries and wages paid; actual number of transactions processed. (OMB Circular A-87)Difference (+ or -) from prior year is adjusted in next projected year. Known as Carry-forward analysis. (OMB Circular A-87)
8 Construct of the CPP (OMB Circular A-87) Must contain each of the following elements:Signed certification statement;Organization chart (sufficient detail to show operations including the central service activities of the state);
9 Construct (continued) Copy of the Comprehensive Annual Financial Report (or a copy of the Executive Budget) if budgeted costs are being proposed;Brief description of the service provided;Identification of the unit rendering the service and the operating agencies receiving the service;
10 Construct (continued) Items of expense included in the cost of the service (limited to wages and benefits);Method used to distribute cost;Summary schedule showing allocation to each service to the specific benefited agencies.
11 Methods for Determining Basis of Allocation Single program (appendix) only – time and effort;Multiple programs (appendices) – time and effort; orStatistical methodology – quantitative measurement
12 Methods (continued)IF employee works on a single appendix or federal award program:Charges for salaries and wages will be supported by periodic certification that the employee worked on that one program for the period covered by the certification. Time keeping records must be certified at least semi-annually. (OMB Circular A-87)
13 Methods (continued)IF employee works on multiple appendices, federal programs, state activities:Time and effort is substantiated by personnel activity reports or an approved statistical sampling system.Personnel activity reports must reflect after-the-fact distribution of the actual activity of each employee;
14 Multiple Programs (continued) Must account for the total activity for which each employee is compensated;Prepared monthly;Signed by the employee.(OMB Circular A-87)
15 Methods (continued)Statistical sampling methods for allocating salaries and wages. (OMB Circular A-87)Must be approved by the USPFO;May include random moment sampling, case counts, or other quantifiable measures of employee effort. Example, number of transactions. (Number of personnel is not a quantifiable measurement for allocation)
16 AllocationMust be inclusive of all activities within the SMD even if costs are not recoverable. (OMB Circular A-87)If number of transactions is used as statistical basis for allocation, total number of same type transactions for the SMD must be considered.
17 Supporting DocumentsAdequate documentation supporting actual cost of salary and benefits for each person for whom reimbursement is requested. (Payroll reports) (OMB Circular A-87 and NGR 5-1/ANGI )Adequate documentation to support basis of allocation. (Monthly reports, transaction counters, time records). Method used must be approved (in advance by USPFO).(OMB Circular A-87 and NGR5-1/ANGI )
18 TimingUSPFO has up to six months to review and approve. (OMB Circular A-87)Must be included as part of annual budget submission to NGB. (NGR5-1/ANGI )Failure to secure approved plan at budget submission may result in insufficient funding. (NGR5-1/ANGI )
19 NGB Program ManagerReceives courtesy copy of CPP or summary of charges and signed certification as part of budget documentation. (NGR5-1/ANGI )CPP due at time of budget submission. NGB will fund late submissions on a case-by-case basis if funds are available. (NGR5-1/ANGI )
20 NGB Program Manager (continued) Provides funding whenever possible. Lack of available funding may preclude reimbursement to the State from initial FOMA budget; however, local funding may be used at the discretion of the USPFO. (NGR5-1/ANGI )
21 Sample CPP Sample extract – Accounts Payable Section Explanation of services and basis of allocation.Table of Allocation (By column explanation)Accounts Payable WorksheetSalaries and wages explanation – actual and projectedSample extract – Summary Table
22 Explanation of services and basis of allocation.
23 ATable of Allocation – Accounts Payable (By Column explanation)Column A reflects each CA appendix within the SMD. When not listing all state activities, list SMD total transactions for all activities.SMD Total Transactions
24 BColumn B lists the transaction counter as estimated in the prior year CPP.
25 CColumn C lists the actual transaction count for the prior fiscal year based on an after-the-fact review.
26 DColumn D reflects the percentage relationship of the appendix or program transaction count to the SMD total number of transactions (accounts payable in this example).
27 EColumn E reflects the amount ($ for salaries and wages) previously requested on prior year CPP
28 FColumn F computes prior year actual amount based on actual transactions and actual salaries and wages paid. (Column D * actual salaries and wages paid prior year)
29 GColumn G represents the difference (+ or -) between the amount estimated in prior year CPP and the actual cost for prior year. (Column F – Column E)
30 HColumn H indicates amount projected for budget year based on actual number of transactions in prior year at projected salaries and wages for budget year. (Column D * $ amount projected for budget year)
31 IColumn I reflects allocated amount based on projection for budget year and + or – adjustment from prior fiscal year. (Column G + Column H)
35 Final ThoughtsWorksheet for each allowable functional area is required in the same detail. (OMB Circular A-87)Restricted to non-supervisory compensation costs in personnel, procurement, and accounting functional areas. (NGR 5-1/ANGI )Representative of direct time and effort.(OMB Circular A-87 and NGR 5-1/ANGI )