Presentation on theme: "Managing Government Grants: Do The Right Thing! Session 2: September 23, 2014 2p-3p KEEPING STAFF COSTS COVERED!"— Presentation transcript:
Managing Government Grants: Do The Right Thing! Session 2: September 23, p-3p KEEPING STAFF COSTS COVERED!
Welcome, Introductions & Ground Rules – Keep your phone on mute please – Be ready for polling questions – Feel free to e-send questions during presentation – The only silly question is the one not asked! You are all safe with us! We truly have seen it all!
General Government Contract Assumptions Here Awards assumed to be reimbursement based Requests for payment or “draws on award” presumed being submitted to a government agency, subject to processing effort and after- the-fact audit ability Award payments can and will be requested to be repaid if noncompliance is found Goals here: timely payment which is kept!
General Government Contract - Getting Started part 1 Meet your Bookkeeper, Fiscal Officer, Controller, CFO – whatever you call them. Here’s what they look like when you or your management team leaves surprises on the budget proposal submitted with grant request
General Government Contract - Getting Started part 2 We understand many such grants are “continuations” of prior contracts. But.. Make very sure all members of the grant “team” know, from the start, if: – the expense of their role is covered, – what they do is covered & how long that takes, & – what other expenses/costs are covered
General Government Contract - Getting Started part 3 Make sure the team knows: – what paperwork is needed to prove services were provided/fulfilled, – what documentation is needed to support their activities, & – what documentation is needed to prove allowable costs
Staffing is largest covered cost Staffing costs = Salaries + statutory benefits + elective benefits Their coverage are ALL a function of where they spend their time No ‘double dipping’ allowed…
Staffing Do To’s Before Program Begins Meet with target staff, ensure adequate time availability vs. percentage of cost covered Pre-prepare timesheets to match what key named programs they are working on; then they drop in dates & times Ensure all promotional materials, including website, etc., match commitments of target staff Ensure target staff are gathering required proof of deliverables as program progresses (NO after-the-fact dox!)
“Who Does That?” Program Manager Executive Director Fiscal Officer/Controller/CFO You!
During the month… Collect timesheets by payroll period; make sure they match the expectations Make sure employee signs timesheet Make sure supervisor approves timesheets – with signature Make sure information on deliverables achieved are being gathered
POLL! If I were to talk directly to your program staff NOW, would those covered by federal grants be able to tell me that & how many hours per week are covered? __ Yes! __ No! __ Maybe… __ Don’t you dare ask them!
Managing Time Means Managing Cost Ramping up means: – Make sure your Finance Manager reviews the proposal BEFORE it is submitted – Build in enough time to get right person if you need to hire – Make sure good employment/HR policies & procedures in place & followed
Managing Time Means Managing Cost Ramping up means: – How is vacation covered? Is sick time covered? What about PTO? – YOU review the contract for compliance issues – Review with all staff the proper documentation required for Scope of Services/Deliverables/ Customers Served, Client Census Data need, & Financial Submissions
Managing Time Means Managing Cost Ramping up means: – Do program staff know exactly what paperwork you need from them for financial submission?
Don’t leave money on the table! Ramp up before hand, must be performing (& spending) across the contract period. Start performance (spending) late, can’t catch up properly
POLL! Do you need any documentation on hand for process of hiring newly covered staff? __ Yes! __ No! __ Like what? What do you mean?
Staying Up to Speed – Pace Yourself Make sure all necessary documentation is obtained NOW Know exactly what is covered, when Create checklists by month Make copies when you are touching the transactions; touch once
Staying Up to Speed – Pace Yourself Obtain staff documents, like timesheets at each payroll period – Signed under penalties of perjury, right? Copy vendor bills, like hospitalization, when touching them already Use payroll service for payroll journals, full tax impound & tax returns
Staying Up to Speed – Pace Yourself Getting copies of cancelled checks or other payment proof when receiving, processing & reconciling bank statements
Keeping Up Afterward Make sure your accounting system ‘gathers’ all allowable costs? Coded by account? Or program/fund/class? Review that coding with each processing period Don’t waste $ & time on unallowed costs – How often did YOU actually see the Coyote eat?
POLL! How many of you use the following accounting software? __ QuickBooks __ Peachtree __ MIP __ Other: what?
Keeping Up Afterward Prepare & submit the submissions promptly – Prepare request quickly, – Compare to costs incurred in Accounting System – Processing by government offices already slow; don’t add to that misery
POLL! How many of you, at current organization or a previous one, have experienced a disallowance? __ Yes! __ No! __ Like what?
What Happened? Jail? Really? – Maybe…But more likely.. They pay your CDC, then audit you &/or the City/Pass Through Entity, then.. “Repay US! Now!” Say WHAT? What went wrong?
What Happened? In last quarter alone, over a dozen disallowances in the millions… Do NOT let that be your CDC!
What Can Go Wrong? In these matters, it is NOT easier to get forgiveness than it is to get permission. Start Doing the Right Thing at the beginning: – Did you read the contract? – What does it say is “proper”? – What is not “proper”?
POLL! Who of you have read the full, actual, legally binding contract? __ Me! __ Uhhh, not yet __ No one does that!
POLL! Who of you have read at least the pages that changed from last year to this year? __ Me! __ Uhhh, not yet __ No one does that!
What Went Wrong? Improper / disallowed / excluded activities generally include conflicts of interest: – e.g. Sold a HUD house to a family member of yours, a staff member of your CDC, a board member (earns jail time!) – ACID TEST: Do you want this story on Page 1, above the fold?
What Went Wrong? You did not read the contract You thought no one would notice You did not think… KNOW WHAT PROVOKES DISALLOWANCE & DON’T GET NEAR THAT! Be “news” worthy! Candid Camera worthy!
Document Retention & Compliance When things get ugly, who has the burden of proof on? HUD? Your City/County/Pass- Through Agency? You? – What do YOU think?
POLL! YES, we know exactly what substantiation we need & for how long it must be kept? __ True __ False
Document Retention & Compliance What types of audits does your contract require? – Compliance audit? (what does this mean?) – Financial audit? (by an independent CPA) – A-133 audit? (by an independent CPA who is following the guidelines of the Comptroller of the United States) – HUD Audit?
Document Retention & Compliance What types of audits does your contract require? – Compliance audit? YES – which means by pass- through entity staff, says you did “all the right stuff – Financial audit? YES – A-133 audit? YES – which means the CPA needs to test if you did “all the right stuff” – HUD Audit? YES – by their staff or intermediary
What if our city/county has tougher rules than HUD? Local pass through organizations are permitted to have tougher rules apply to their contracts They cannot have more lenient rules So KNOW THE RULES PER YOUR CONTRACT!
Document Retention & Compliance How long do we need to keep the proof? Generally 5 years from date of contract start. You have dox to prove compliance – e.g. 7/2014-6/2015 contract means full year’s documents & proof of full compliance (with letter & spirit of contract) until end of 2020 ( )
Do The Right Thing! Means What? Do not bumble around looking for right information when the audit comes! Have the knowledge of what is right, proper according to the contract Start it that way, end it that way – Follow through! Do what is right, proper Have proof that you did what was right & proper
Do The Right Thing! Means What? You will be remembered for the last thing that you & your CDC did…
Wrap Up, Conclusion, Next Steps Contact your LISC Representative Joanne with confidential, off-line questions Upcoming programs!