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Budgets/Closeouts Reconciliations Expenditures Advances What’s New Laws, Regs, Policy Presenter: Vern Foster, Aging Programs Analyst II California Department.

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Presentation on theme: "Budgets/Closeouts Reconciliations Expenditures Advances What’s New Laws, Regs, Policy Presenter: Vern Foster, Aging Programs Analyst II California Department."— Presentation transcript:

1 Budgets/Closeouts Reconciliations Expenditures Advances What’s New Laws, Regs, Policy Presenter: Vern Foster, Aging Programs Analyst II California Department of Aging aging.ca.gov (916)

2 1

3 Our adventure includes stops at…  The Fiscal Compliance Café (Ooooooooh…)  Budgets/Closeouts  Reconciliations  Monthly Expenditures  Advances  The Newsroom (Aaaaaaaah…)  What’s new at CDA  The Fiscal Library (Very Interesting…)  Applicable Laws, Regs, Policies for CDA’s programs

4  Older Americans Act (OAA) – Title V  Older Californians Act (OCA) – HICAP  Code of Federal Regulations (CFR) – Title V  CDA Standard Agreement  Contract Terms and Conditions  DPA Rules for Personnel and Travel  Program Memos (Policy) More later…

5  Budget It’s Not Just a Budget…  Identifies how all contract funds will be used  Identifies all other local funds used  Covers Compliance Checks (Laws, Regs, Policy)  5% Mental Health Duals  Final Budget – Due April 30  Closeout  Due August 15  Compliance Checks  5% Mental Health Duals  Monitored Statewide  Show State Funds expended first (Use or lose)  Reallocate Unspent Federal Allocations as OTO (Bud Rev 1)

6  Budgets Again, It’s Not Just a Budget…  Identifies All Funding  Compliance Checks  Maximum AAA Admin – 8% of Total Federal  Minimum PWFB – 79%  Match – currently of federal (10% plus 1.82% to cover State portion)  State Funds were removed from the Governor’s Budget  Final Budget – Due April 30  Last opportunity to adjust budget  Closeouts - Due July 30  Compliance Checks  Same as the budget  Match Monitored statewide  Unspent Allocations returned to DOL

7  HICAP (CDA 245)  Due the 30 th of each month, submitted via  Request For Funds (RFF) for future month (30 days ahead)  Expenditure Report for prior month (30 days prior)  July Expenditures due August 30  October RFF due August 30  Title V (CDA 29)  Due the 15 th of each month, submitted via  Request For Funds (RFF) for future month (15 days ahead)  Expenditure Report for prior month (15 days prior)  Aug Expenditures due Sept 15  October RFF due Sept 15 Input expenditures before requesting funds (RFF)

8  Monthly Expenditure Reporting  Report Actuals  County/City costs reported monthly  Report all activities  Report all funding used  Program Income  Other Funds  Match (Title V)  Report Timely  Reconcile monthly  Adjust AAA records to reflect CDA adjustments  Expenditure Reconciliations sheets (mailed monthly )  Compare Budget to Y-T-D Actuals before reporting

9 HICAP Summary of Expenditures FY: 2011/12 PSA 34 HICAP ReimbHICAPHICAP FundHICAPHICAP FederalHICAP CDA 245HICAPReimbHICAP FundHICAPFederalCDA 245 MonthReimbAdminTotalFundAdminTotalFederalAdminTotal July12, ,7268, , ,756 August11,5131,20912,7228,5001,0009, ,222 September12, ,1458, , ,145 October12, ,2887, , ,288 November12, ,2736, , ,812 December5,1871,0966,28315, ,166 January12,1881,14113, , ,147 February19, , ,491 March11, ,6941,1469,84021,102 April ,8561,13122,987 May ,1761,11723,293 June ,0971,20333,300 Total Expended109,6856,179115,86454,8633,08957,95291,6415,25296,893270,709 Budget: Rev 1109,7406,179115,91954,8633,08957,952100,2989,094109,392283,263 Total Expended109,6856,179115,86454,8633,08957,95291,6415,25296,893270,709 Bal to be Expended ,6573,84212,49912,554 Percent Expended100.0% 91.4%57.8%88.6%95.6% Budget/12 9,660 4,829 9,11623,605 Notice HICAP Reimb. & HICAP Fund State funds spent 1st HICAP Fed. last to be spent

10  1 st three months – up to 1/12 th per month for each funding source Based on need Recommend spending down State (Reimbursement and HICAP Fund) before spending Federal (SHIP) dollars  Beginning with the October Advance, RFF’s are approved based on the Reconciliation process, which calculates both: Balance Available and Maximum Approvable  The lesser of these amounts will be the maximum that can be approved The maximum approvable amount may be overridden with appropriate justification

11 SUMMARY OF HICAP ADVANCES HICAP Total MonthReimb Fund FederalAdvances Unearned Funds 0 July9,659 4, ,488 August9,659 4, ,488 September9,659 4, ,488 October15,268 12, ,018 November13,350 14, ,200 December13,900 15, ,765 January14, February17, March12, April0 0 3,000 May0 0 7,742 June0 0 48,500 June Suppl 0 Total Advanced115,919 57,952 59,242233,113 Advance 1/12 9,660 4,829 9,116 Notice that Advance pattern follows expenditure pattern Federal expenses not reported until State is expended

12 Let’s look at the calculation!

13 HICAP Request for Fund/Expenditure Reconciliation with Instructions Maximum Approvable Calculation Example: RFF Month: APRIL (Due February 28) FEDERAL FUNDS AMOUNT REQUESTED 37,500 APPROVED REQUEST 35,053 CASH ON HAND CALCULATION Description Approved Thru Prior Month RFFYTD ADVANCES THRU MONTH OFMARCH 352,916 YTD Advances As Reported by AAAYTD EXPEND THRUJANUARY( - ) 258,646 less: YTD Expend Advances - Expenditures CASH ON HAND = 94,270Actual AAA Cash on Hand Average Monthly (from below) x 2PROJECTED EXPEND MONTHS (2)FEBRUARY, MARCH( - ) 73,899 less: Proj 2 months Expend Actual Cash on Hand - Proj Expend ESTIMATED CASH BAL ON HAND ( = ) 20,371Projected AAA Cash on Hand Available for April Expenses MAXIMUM APPROVABLE ADVANCE CALCULATION YTD Exp / months reportedCALCULATED AVG MONTHLY EXP258,646 divided by 7 36,949 Average monthly expenses Calculate Max Cash Allowable150% OF AVG MONTHLY EXP36949 x 1.5= 55,424 Max Cash on Hand Allowable Less: Estimated Cash Bal on HandEST CASH ON HAND ( - ) 20,371 less: AAA Cash Balance Max Cash on Hand Allowable MAX APPROVABLE REQUEST* ( = ) 35,053Maximum Cash Advance After Contract Balance Review* Subject to funding available

14  1 st two months – up to 1/12 th per month Based on need  Beginning with the September Advance, RFF’s are approved based on the Reconciliation process, which calculates both: Balance Available and Maximum Approvable  The lesser of these amounts will be the maximum that can be approved The maximum approvable amount may be overridden with appropriate justification

15 See next slide Differs from HICAP and Area Plan – Only 1 month of projected expenses Why?

16 Title V Request for Fund/Expenditure Reconciliation with Instructions Maximum Approvable Calculation Example: RFF Month: APRIL (Due March 15th) AMOUNT REQUESTED 37,500 APPROVED REQUEST 0 CASH ON HAND CALCULATION Description Approved Thru Prior Month RFFYTD ADVANCES THRU MONTH OFMARCH352,916 YTD Advances As Reported by AAAYTD EXPEND THRUFEBRUARY ( - ) 258,646 less: YTD Expend Advances - ExpendituresCASH ON HAND = 94,270Actual AAA Cash on Hand Average Monthly (from below) x 1PROJECTED EXPEND MONTHMARCH ( - ) 32,331 less: Proj 1 month Expend Actual Cash on Hand - Proj ExpendESTIMATED CASH BAL ON HAND ( = ) 61,939 Projected AAA Cash on Hand Available for April Expenses MAXIMUM APPROVABLE ADVANCE CALCULATION YTD Exp / months reportedCALCULATED AVG MONTHLY EXP258,646 divided by 832,331 Average monthly expenses Calculate Max Cash Allowable150% OF AVG MONTHLY EXP32,331 x 1.5 =48,497Max Cash on Hand Allowable Less: Estimated Cash Bal on HandEST CASH ON HAND ( - ) 61,939 less: AAA Projected Cash Balance Max Cash on Hand AllowableMAX APPROVABLE REQUEST* ( = ) -13,442Maximum Cash Advance After Contract Balance Review* Subject to funding available Only 1 Month Projected

17 Next Stop… What’s New with Fiscal?

18  Tightening of Expenditure/Contract spending  More Federal scrutiny of all of our fiscal processes, particularly Expenditure and Advance processes  Over-Advancing (in excess of actual need)  Underspending (Grants not fully expended)  More Fiscal Accountability ◦ Fiscal Team will be returning questionable expenditure postings and advance requests  Under/Over budgeted amounts  Under/Over advance  Tightening of Monthly reporting  Timely reporting - monthly  No more submitting 2-3 months at a time  Late and sporadic AAA monthly reporting causes inaccurate projections at the Statewide level

19 Total HICAP Contract MonthlyCloseout DisbursedAdd. OwedOwed toGrant Percent PSA #thru Juneto AAACDAOwed to AAA 1259, , % 2277,210274,9042, % 3283,263233,11335, % 4682,047 07, % 6378,065187,749185, % 7389,192245,78698, % 8315,735269,03512, % 9411,360351,38259, % 10568,562391,19166, % 12263,623262,25408, % 13264,876239,85925, % 14315,851 02, % 15279,324221,93944, % 17338, , % 18303,247251,53630,0051, % 191,070,395711,835306, % 20409,520272,436131, % 21481,737391,78386, % 22628, % 23714,120644,79141, % 25753,671653,09523, % 27479,565452, % 30281, % 31302,182150,147121, % 32279,531258,45221, % 33295,875235,68547, % Five AAA’s received between 25% and 50% of their HICAP grant funds after the contract period closed.

20  Contract Under-performing a AAA Fiscal Responsibility FISCAL OFFICER will:  Ensure contract funds are fully expended  Work with Administration and Program staff monthly  Monitor AAA Direct and Provider Contract  Expect closer monitoring by CDA Program and Fiscal staff  AAA’s will notice an increase in calls from CDA staff  AAA’s that appear behind in their spending will be asked to provide a plan for expending all funds

21 Total HICAPUnspentPercent PSAGrant Funds FundsUnexpended 1 259,48811,3674.4% 2 277, % 3 283,26314,9705.3% 4 682,0477,3291.1% 6 378,0655,2411.4% 7 389,19244, % 8 315,73534, % 9 411, % ,562110, % ,6239,9533.8% , % ,8512,4290.8% ,32412,6794.5% ,17224,3367.2% ,24722,7677.5% 19 1,070,39552,4404.9% ,5205,8451.4% ,7373,4610.7% , % ,12028,0293.9% ,67177, % ,56527,8405.8% , % ,18230, % , % ,87512,8894.4% TOTAL 11,026, , % AAA’s that have an unspent balance of HICAP Funds in excess of 5%

22 In the current fiscal climate:  Funding is tight! Every government entity is under increased scrutiny and accountability for funds.  Federal Audit findings related to late pay out of funds  State Controller is scrutinizing payment processes  Unreconciled Advance Requests - Inability to make accurate Expenditure and Cash projections  Every year we have unspent funds we are showing that we don’t have a need for the funding, therefore we increase the risk of losing Federal Funds  Potential loss of federal baseline dollars  Potential loss of OTO  Cannot justify asking for more HICAP dollars

23  CDA Contract Funded Property Reporting ◦ $500 Limit has been established  PM forthcoming…  AAA’s must track equipment with a cost of $500 or more  New CDA 32 (Property Form)  New CDA 248 (Request to Dispose Form)  New CDA 248 Process to involve CDA Program and Fiscal staff

24 Audit Findings – Provider Match CDA Audits has found that many AAA’s have not been testing Provider Match  Provider Match must be tested by AAA.  Immediately begin testing provider match  Can lead to disallowed costs if match is not verified  Use risk-based approach to determine amount of testing samples  If audit of Match has never been performed – test 100% to establish risk  CDA Audits will begin verifying and disallowing costs associated with untested provider match Contact CDA Audits for more information

25 How’s our Time? Do we have time for Laws, Regs, Policy? Or are we ready for a Q & A period?

26  Older Americans Act (OAA)  Title V – Community Service Senior Opportunities Act  Section 502 – Admin Allocations, Non-Federal Share, PWFB  Administration Allocation - Not more than 13.5% of federal allotment  CDA 5.5%  AAA Maximum - 8%  Overall Match =10%  The Governors Budget removed all Title V funding  AAA’s have agreed to pay the 10%, plus CDA’s Admin Match share  Current Match =  PWFB = 75 %  Since CDA keeps 5.5% to Administer Title V, AAA’s PWFB minimum increases to 79%  AAA PWFB = 79%

27  Older Californians Act (OCA) – Enacted 1997 ◦ Established CBSP Programs  State funding removed from Governor’s Budget  CBSP Program funding eliminated  Health Insurance Counseling and Advocacy Program (HICAP) funding remains

28  Code of Federal Regulations (CFR)  Title V Administrative Requirements  20CFR641 - Also Refers to:  45CFR74 – Non-Profits, Hospitals, Institutions of Higher Education  45CFR92 – State and Local Governments Primary areas covered  Standards for financial management systems  Period of availability of funds  Cost Classifications  Match  Allowable Costs  Program Income  Audit Requirements  Programmatic Requirements

29  Cost Principles – Allowable Costs  20CFR641 – Title V Administration Requirements  Also Refers to:  2CFR220 - Institutions of Higher Education (OMB A-21)  2CFR225 - State and Local Governments (OMB A-87)  2CFR230 - Non-Profits (OMB A-122) Primary areas covered  Appendix A – General Principles  Allowability  Reasonableness  Allocating Costs  Appendix B - Selected Items of Cost (Costs Listing)

30  CDA Standard Agreement ◦ Contract Terms and Conditions  DPA Rules - Personnel and Travel  Departmental Program Memos (Policy) ◦ New Departmental Policies

31 Fiscal Compliance? Closeouts Budgets Reconciliations ? Expenditures Advances What’s New at CDA? Laws, Regs, Policy?

32 Thank You All For Coming!


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