Presentation on theme: "New Project Directors’ Orientation"— Presentation transcript:
1 New Project Directors’ Orientation Presentation 4Budgets, Reports, and Fiscal Management
2 Module 4: Budgets, Reports, and Fiscal Management AgendaWelcomeProject ManagementReports and Record Keeping2011 Senior Corps Handbook Supplement Section 4-Data IntegrityNext StepsWelcome to the presentation for Module 4. Hopefully you had the opportunity to complete the Preparation Assignment prior to viewing this presentation.Module 4 Preparation AssignmentReview RSVP Operations Handbook: Chapters: 10 & 11Review Senior Corps Compliance Monitoring Guide :Section CReview 2010 Supplement to the Senior Corps Handbook: Section 4: Data Integrity, Reporting, and Measuring Results-Page 14-18Review the Budget Section of your current grant.Please complete the Online Course: Preparing the Grant Budget for Senior Corps ProjectsThis presentation is intended to give project directors information regarding some of the budget and reporting issues that come up in day to day project management. For more in depth information you will find links to budget and financial resources, including the 2012 Financial and Grants Management Institute, at the end of the presentation.
3 Chapter 10: Project Management Senior Corps Grant BudgetThe budget approved in the grant application is part of grantees contractual obligation .The budget must conform to guidelines and regulatory restrictions.Project support provided under a Senior Corps grant must be furnished at the lowest possible cost consistent with the project's effective operation [45 CFR ].Project Directors should work with the sponsor’s fiscal staff and periodically compare the budget to actual costs.Senior Corps grant budgets are proposed in the grant application. CNCS issues the Notice of Grant Award when grants are approved for funding. It is the sponsoring agency’s responsibility to manage the grant budgets in compliance with regulations and their Notice of Grant Award.
4 Chapter 10: Project Management Sponsors must have an efficient accounting system that is capable of:1. Distinguishing grant versus non-grant related expenditures2. Identifying costs by budget period3. Identifying costs by budget category4. Differentiating between direct and indirect costs (administrative costs)5. Maintaining Federal and required non-Federal share separately6. Recording in-kind contributions as both revenues and expensesCompliance Monitoring Question C.1.-C.2.To be in compliance, sponsors must have an accounting system that meets program requirements and are in agreement with accepted accounting practices including the capacities listed on the slide.
5 Chapter 10: Project Management Budget CategoriesCosts are separated according to whether the proposed source of project support is Federal or non-Federal. In context of the budget, “Federal” means “the Corporation,” and “non-Federal” means “sources other than the Corporation.” The federal share is also referred to as “CNCS Share.”Required non-Federal: This is the part of the total non-Federal budget used to meet the non-Federal share requirement. Costs included under this category must meet all the cost requirements established by the Corporation. The non-federal share may also be referred to as, “Grantee Share,” local match ,” or “applicant share.”Excess non-Federal: This is the part of the total non-Federal budget that is in excess of the 10, 20, or 30 percent non-federal share requirement. Inclusion of excess non-Federal costs is not required. If excess non-Federal funds are budgeted, they must support the purpose of the project, consistent with the Domestic Volunteer Service Act.It is important to understand terminology used when talking about the Senior Corps grant Budget Categories“Required non-Federal.” This is the part of the total non-Federal budget used to meet the non-Federal share requirement (10 percent of the total cost in the first year, 20 percent in the second year, and 30 percent in the third and succeeding years). Any additional amount that the grantee wants to include as part of the required non-Federal share of the total project cost should also be under this category. Costs included under this category must meet all the cost requirements established by the Corporation.“Excess non-Federal.” This is the part of the total non-Federal budget that is in excess of the 10, 20, or 30 percent non-federal share requirement. Inclusion of excess non-Federal costs is not required. If excess non-Federal funds are budgeted, they must support the purpose of the project, consistent with the Domestic Volunteer Service Act. It is generally recommended that as long as costs are allowable, sponsors should budget those costs as part of the required non-Federal share so they can be easily reported on the project’s Financial Status Report. Grantees are not required to meet the excess match in the budget, only the required match.Reference: The RSVP Operations Handbook page 89 and 45 CFR
6 Chapter 10: Project Management Volunteer Expense or Volunteer Support Expense?Section I: Volunteer Support Expenses, includes all costs other than those included below in “Volunteer Expenses.”Section II: Volunteer Expenses, includes only the following volunteer costs:TransportationMealsInsuranceRecognition Items and ActivitiesThere are two sections in the grant budget application.Section 1: Volunteer Support Expenses include:salariesproject staff traveltraining for staff/volunteersbackground checksspaceindirect cost rate agreementsuppliesSection 2: Volunteer Expenses include:recognitioninsurancevolunteer transportationmealsIn the context of Senior Corps project budgeting, the term “Volunteer Expenses“ is synonymous with the term, “cost reimbursements,” and these terms may be used interchangeably. “Volunteer Benefits” is also sometimes used to describe these cost items.
7 Chapter 10: Project Management Budget FormulasNon-Federal Match: (10, 20, or 30%)eGrants calculates your match by dividing the amount in the “Grantee Share” column by the sum of the “Total Amount” column minus the amount in the “Excess Amount” column, you can calculate your match by using these formulas: 10% Match = (Federal Amount / 1-.1) – Federal Amount;20% Match = (Federal Amount/ 1=.2)- Federal Amount; 30% Match = (Federal Amount / 1-.3) – Federal AmountVolunteer Expenses Ratio for FGP and SCPThe total of cost reimbursements for Foster Grandparents or Senior Companions, including stipends, insurance, transportation, meals, physical examinations, uniforms if appropriate, and recognition must be equal to at least 80 percent of the Corporation’s Federal share of the grant. Federal and non-Federal resources, including excess non-Corporation resources, can be used to make up this sum..eGrants calculates the percentages of the grant funds that are federal and non-federal share.For FGP and SCP, eGrants does not automatically calculate the Volunteer Expense ratio for FGP and SCP. This rule does not apply to RSVP budgets.
8 Chapter 10: Program Management Grants Amendments and Rebudgeting are required when:A change in the scope of service or a substantial change in goals or objectives.A change in the geographic service area.Creation of a new budget line item where there will be a need for additional funds.Transfer of funds budgeted for direct costs to indirect costs.Extension or reduction of the budget or performance budget periodOccasionally, during implementation of a grant, a grantee may need to make adjustments to the approved budget in the grant application. The changes listed on the slide require prior Corporation approval and amendment of the NGA:In addition, for grantees receiving more than $100,000 of Corporation funds per year, prior approval is required if cumulative changes exceed 10% of the total budget. For grantees receiving $100,000 or less, the percentage change is not a factor in determining requirements for submission of a formal rebudgeting amendment.Project representatives should consult with their Program Officer regarding any budget changes, even if an amendment is not required.
9 Chapter 10: Program Management Accessing Grant Funds and Managing AdvancesAll Senior Corps grantees are paid through the Department of Department of Health and Human Services (HHS) Payment Management System, abbreviated as PMS. Senior Corps grantees must establish an account with the HHS/PMS that allows them to draw down funds. When a grant is awarded in eGrants, the grant is recorded in the Corporation’s accounting system and transmitted to PMS which maintains an account for each grant. Grantees draw funds from that account.Information on using the PMS is found on-line at:In some cases the project director is delegated the authority by the sponsoring agency to draw down grants funds from the Payment Management System. It is important to understand the process and required reporting for this system. CNCS Grants Officers can provide basic information regarding setting up PMS accounts.Information on using the PMS is found on-line at:
10 Chapter 11: Reports and Record Keeping Value of ReportingReports and Data can:Tell your storyDemonstrate progress on projectDescribes impact in communityInform internal planning and developmentShowcases accomplishmentsSupports funding requests
11 Chapter 11: Reports and Record Keeping Reporting and record keeping are essential functions of project management to ensure proper stewardship of public funds and provide information needed to report to the Congress and Executive Branch of the Federal Government on expenditures, project progress, and accomplishments. General reporting and record keeping requirements are discussed in this chapter, but projects should always consult their specific Notice of Grant Award (NGA) terms and conditions for the specific requirements of their grant.
12 This chart is a quick reference for the reports required for Senior Corps projects. Project Notice of Grant Award (NGA) includes the specific reporting due dates.
13 Chapter 11: Reports and Record Keeping Reports Submitted in eGrants:Grant ApplicationsFederal Financial Reports (FFR)Project Progress Reports (PPR)Progress Report Supplement (PRS)
14 Chapter 11: Reports and Record Keeping Finding Reportsin eGrantsLinks to the required reports can be found in the lower right corner of your eGrants home page. Click on the type of report you want to complete and choices of available reports will open.
15 Progress ReportBe sure to select the correct reporting period from the options listed in eGrants.
16 Chapter 11: Reports and Record Keeping Terminology used in ReportsReporting Period - The time frame covered for the reportBudget Period – One yearProject Period – The three year grant cyclePerformance Period – The three year grant cycleBeside “Reporting Period” you will see references to other time periods in discussions of grants and reports. Always be sure to enter project information the corresponds to the reporting period listed in the eGrants form.
17 Chapter 11: Reports and Record Keeping Financial ReportsFederal Financial Report (FFR)Grantees report expenditures semi-annually from the start date of the grant on the FFR by submitting in eGrants an electronically signed form within 30 days of the end of each reporting period, as specified in the Terms and Conditions of the NGA. The final FFR for the 3 year grant award is due 90 days after the end of the grant.FFRs describe expenses on a cumulative basis over the performance period of the grant (3 years).PMS FFRThe PMS report is an overview of the cash status of the account. It contains data provided by PMS to the recipient and the net disbursement amount as calculated by the recipient. The PMS FFR Report is similar to a checking reconciliationDue quarterly (45 days after the end of the quarter) submitted to HHS using the PMS system.There is a FFR report due in the HHS/PMS system (where funds are drawn down). The CNCS FFR and the PMS FFR are two separate reports and both must be completed. PMS requires an FFR to be filed quarterly (total of 4 PMS FFR per year), while eGrants requires a bi-annual FFR, (total of 2 FFRs per budget year).The PMS FFR replaces the Federal Cash Transaction Report, Standard Form (SF) 272 mentioned in the RSVP Handbook. The PMS report is an overview of the cash status of the account. It contains data provided by PMS to the recipient and the net disbursement amount as calculated by the recipient. The PMS FFR Report is similar to a checking reconciliation. At the end of the grant the PMS FFR MUST reconcile with the SF 269 Financial Status Report and the amount drawn down. If these three numbers are not identical, the grant can not be closed.
18 Chapter 11: Reports and Record Keeping Federal Financial ReportThe FFR is a summary of expenditure activity over a specified time period (semi-annually in most cases).The FFR provides information regarding both Grantee and CNCS Share of funds expended.The FFR includes cumulative information over the life of the grant (3 years).Grantee must ensure proper documentation is recorded to support all information reported in the FFR.All financial reports should be prepared with information that comes directly from the organization’s accounting system.Conduct a review and reconciliation of the information to ensure accuracy prior to report submission.The Grants Officer reviews the FFR.Step-by Step-Guide for Preparing the FFR in eGrants:The FFR is a simple report. FFR reporting is done by completing 3 screens:Identifying informationTransaction entryCertificationThe documentation supporting the transaction details must be available to CNCS upon request. Grants Officers review Federal Financial Reports.When you have completed the third year of the grant, the eGrants FFR amount must equal the amount drawn down from PMS which should equal the amount recorded on your PMS FFR.
19 Chapter 11: Reports and Record Keeping Project Progress Report (PPR)The purpose of the PPR is to report on key activities and progress in implementing work plans and performance measures. The PPR is due no later than 30 days after the end of the reporting period.The grantee will report on performance measures and other project accomplishments annually in the PPR.Late submission of the Project Progress Report may result in the Corporation placing a temporary hold on grant funds if the report is not submitted within 45 calendar days after the established due date.The RSVP Project Progress Report is submitted once annually. Information and data should be collected and tracked throughout the year. It is recommended that new project directors review the PPR report form to become familiar with the reporting requirements.
20 Chapter 11: Reports and Record Keeping Progress Report Supplement (PRS)What is the PRS?A national data collection instrument completed annually by Foster Grandparent, RSVP and Senior Companion grantees. Data taken from individual project reports is aggregated nationally.What does it tells us? Numerous aspects of Senior Corps activities, including volunteer numbers and hours, service activities, types of sponsors and stations, volunteer demographics, children and clients served. How is the data used? Historical trends by comparative analysis across fiscal years. To develop state and national reports and snapshots of project activities, clients served, sponsor and volunteer station profiles, volunteer demographics and trends, and other aspects of project operations.The PRS is a key data source used for Congressional appropriations hearings and to respond to other information requests.Due Date and Reporting PeriodThe PRS is typically due in November and covers the 12 month reporting period from July 1 to June 30. Senior Corps notifies grantees when the report becomes available in eGrants, along with instructions for completing the report.
21 Chapter 11: Reports and Record Keeping Record Keeping and DocumentationAs required by 45 CFR (g), the sponsor must develop record keeping and reporting systems in compliance with Corporation requirements that ensure quality of program and fiscal operations and facilitate timely and accurate submission of required reports. The sponsor’s records also document compliance with regulatory programmatic and fiscal requirements and must be available to Corporation staff to review on compliance monitoring site visits.Reporting and record keeping are essential functions of project management to ensure proper stewardship of public funds and provide information needed to report to the Congress and Executive Branch of the Federal Government on expenditures, project progress, and accomplishments.Let’s review some of the common compliance findings associated with documentation and record keeping.
22 Chapter 11: Reports and Record Keeping Record Keeping and DocumentationSponsor Records on Volunteer StationsThe project maintains a file on each volunteer station containing:A current, signed Memorandum of Understanding.Letters of Agreement, where there are in-home assignments through the volunteer station.A listing by name of the RSVP volunteers placed at the volunteer stationSponsor Records on Individual RSVP VolunteersThe project should maintain records for each volunteer containing:A signed enrollment form, including name, address, telephone number and date of birth.A signed Designation of Beneficiary (for insurance purposes).The name of the volunteer station(s) where the RSVP volunteer is placed.A copy of the written assignment description for each volunteer or a notation that the volunteer’s assignment description is maintained at the volunteer station.Volunteer and Volunteer Station Records may be kept in electronic or hard copy form.Due to the confidential nature of the information, the Corporation recommends that volunteer records be kept in secured files. Personal information about volunteers contained on the enrollment form, such as home address, should be disclosed only with the expressed prior written permission of the volunteer.Records may be subject to state law or local ordinance governing access to records.
23 Module 4: Record Keeping and Common Findings Common Compliance Findings for Record Keeping and DocumentationInadequate or missing documentation of in-kind donationsTime Sheet compliance issues:Incorrect percentage of staff time charged to grantTime sheets not signed either by staff or supervisor (or both)Time sheet does not reflect non-grant activities of staffTime sheet reflects budgeted rather than actual timeIt is essential that grantees have written policies and procedures as well as accurate documentation to demonstrate compliance with the program rules and regulations. Let’s look at each item on this list of common findings.
24 Module 4: Record Keeping and Common Findings Finding: Inadequate or missing documentation of in-kind donationsDocumentation of in-kind contributions - same standards as other expendituresDocumentation for in-kind contributions must record donation and valuation of itemIn-kind contributions must be entered into the general ledger and other reports submitted to the Corporation in order to be recognized as matchIn-kind contributions must be included in Federal Financial Report submitted to the Corporation to be recognized as matchCertain information is required in in-kind contributions documentation. (next slide)
25 Module 4: Record Keeping and Common Findings Finding: Inadequate or missing documentation of in-kind donationsAn In-Kind Donation form should document the basis for determining the value of personal services, material equipment, building, and other non-cash donations.In-Kind Donation Forms record acknowledgement of the contribution and should include:Name of donorDate and Location of donationDescription of item/serviceEstimated valueSignature of donor and recipientLet’s look at a sample In-Kind Form that includes these requirements. (next slide)
26 Module 4: Record Keeping and Common Findings The link to this sample in-kind form can be found at the end of the slide presentation.
27 Module 4: Record Keeping and Common Findings Let’s take a closer look at documenting the value of an in-kind donation.The value of the donation should be placed by the donor, or contributor; not the recipient.According to the IRS, the actual or “fair market price” should be the price that item would sell for on the open market. Grantees should review donation form to ensure the value is reasonable before signing it.Funds from Federal agencies other than the Corporation, including federally funded in-kind resources, may not be budgeted as part of the sponsor's required non-Federal share, except those funds specifically authorized by law. The burden is on the sponsor to document that any funds or in-kind resources from another Federal agency are authorized to be used to make up the non-Federal share of a grant from the Corporation.
28 Module 4: Record Keeping and Common Findings Findings: Time Sheet compliance issues:Incorrect percentage of staff time charged to grantTime sheets not signed either by staff or supervisor (or both)Time sheet does not reflect non-grant activities of staffTime sheet reflects budgeted rather than actual timeProject Personnel expenses is one of largest expense categories in Senior Corps budgets. It is critical to properly document staff time that is charged to the grant.Documentation requirements differ by organization type; as we mentioned in previous Modules, there are OMB circulars specifically for Non-Profits, State, Local and Tribal Governments, and Educational Institutions. The requirements vary to some extent but all require similar documentation of staff time charged to the grant.
29 Module 4: Record Keeping and Common Findings Recording Staff TimeOMB A-122 requirements for Non-Profits:Must reflect an after-the-fact distribution of the employee actual activity (not budgeted on hours worked)Must account for the total activity of each employeeMust be prepared at least monthly and must coincide with one or more pay periodsMust be signed by the employee or supervisor having first hand knowledge of staff activity.There are similar OMB requirements for:State, Local and Indian Tribal Governments: OMB A-87Education Institutions: OMB A-21Compliance Guide C.10(a)Grantee should be familiar with the OMB circular for their organization type. We will look at the requirements for Non-Profits, for example.For an employee who is less than 100% billed to the grant, there should be support documentation of how many hours is spent on each cost objective. The documentation must be 1) after the fact, 2) account for total hours worked, 3) be prepared at least monthly, and 4) be signed, or certified electronically, by the supervisor.When project staff are employed in the operation of two or more Senior Corps projects, in order to be allowable, their salaries and fringe benefits must be budgeted on a prorated basis in each project's budget, based on the allocation of time to each project. Grantees must document actual time spent on each grant, and only actual time should be reported.
30 Module 4: Record Keeping and Common Findings Ensuring Data Integrity in eGrantsData from eGrants is used for agency metrics, external reporting, and management data. Data accuracy and timeliness are extremely important.Grantees should make every effort to ensure grant applications, and reports submissions are on time, accurate, and fully complete. Program Officers will closely review grants and reports. If discrepancies or incomplete submissions are found, they will work with grantees to correct data before accepting the application or report.Grantees and Program Officers, working together can increase data integrity in eGrants and minimize the time and energy spent correcting data issues.As always, contact your Program Officer if you have questions about what is required, timelines, or anything else having to do with reporting.If you have questions or concerns about how to complete a report, contact the Corporation State Office for assistance.From the 2010 Supplement to the Senior Corps Operations Handbooks, page 15.
31 Module 4: Record Keeping and Common Findings Documentation and Compliance TipsTransactions not supported by documentation can be a disallowed cost that will be owed back to the Corporation.Familiarize staff with grant regulations, OMB Circulars and grant guidelines to ensure compliance.All expenditures should contain documentation (i.e., brief descriptions, agendas, reports etc.) that demonstrates costs are: reasonable, necessary, allocable, allowable, and adhere to grant guidelines.Ensure there is clear audit trail for all financial reports from accounting system to data submitted.Delays in submitting FFRs may cause advance or reimbursement requests to be delayed until the overdue FFR is received.Apprise Program Officer of questions, concerns, issues, or developments related to the grant.
32 Module 4: Record Keeping and Common Findings Documentation and Compliance Tips – continuedUse these two documents to review specific requirements and procedures for financial reporting:Notice of Grant Award (NGA) Terms and Conditions, including any Special ConditionsRSVP Federal regulations [45 CFR ]Retain Records: Data collected, including financial records, must be retained for at least three years from the date the grantee submits the final FSR for the project period or three years past the last audit, whichever is most recent. For exceptions, see 45 CFR or 45 CFR
33 Module 4: Web Links Acronyms: 2012 Financial and Grants Management Institute:Glossary of CNCS Financial and Grants Management Terms & Definitions:HHS PMS Information:Sample In-Kind Contribution Form:Step-by Step-Guide for Preparing the FFR in eGrants: