Post Award Management What is it really? Alison Robbins, Budget Analyst – Grants Wichita Public Schools – USD 259

Introduction Alison Robbins of Wichita Public Schools –12 years of experience in non-profit and governmental accounting and grant management –727 hours of training in contracts, compacts, and grant writing, award management, and implementation –Trained by HUD, EPA, USDA, BIA, CalTrans, KSDE, and numerous government contracted training consultants

Goals & Objectives To provide a “Beginners Guide” to post- award management detailing items of importance To provide a refresher on award management issues for experienced managers to hone their skills To address questions regarding “how to” handle common situations that complicate award management

What is Post Award Management ? Good post-award management can be summed up as a genuine understanding of and a commitment to the implementation of all regulations and rigorous internal control procedures to which all grant activities and transactions must adhere. This is sometimes easier said than done

Where should you start? Award Letter and attachments Find and read all regulations, statutes, policies, procedures, and guidance documents Gather key personnel for a networking meeting

Regulations Researching pertinent regulations is imperative! –CFDA Number online at: –OMB Circular A-133 online at: htmlhttp:// 133.html –OMB Circular A-133 Compliance Supplements online at: ance/08/08toc.htmlhttp:// ance/08/08toc.html –CFR online at: search.htmlhttp:// search.html

After the Research of Regulations? Time to re-read your approved grant application for measureable outcomes, financial details found in the budget narrative, and other quantifiable statements made in the application. Make a list of items that will require special tracking, such as: –Eligible participants applications –In-Kind matching

What’s Next ? Compile Lists – use Grant Folder(s) Checklist Train Personnel –Find free workshops hosted by funding agencies; or –Attend fee based workshops – examples Bill Helmich Associates Kansas Society of CPAs

Continuing Process of Management Every activity or transaction needs to be scrutinized using four key criteria –Consistent with federal cost principals Is it necessary and reasonable? –Allowable under the program What % is it allocable? –Consistent with program specific fiscal rules –Consistent with applicable CFR

Allowable vs. Allocable Allowable –Specifically allowed under the applicable cost principles for your organization –Budgeted for in the grant application’s budget narrative Allocable –Can only charge in proportion to the value received by the program

Issues That Complicate Award Management Changes in key personnel Changes in the financial system/software or procedures –Must permit preparation of reports –Must account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds –Must permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes –Accounting records must adequately identify the source and application of funds Transaction controls over allowable and unallowable costs (application of funds) Source documentation –Must contain information pertaining to grant authorizations, obligations, unobligated balances, assets, liabilities, expenditures and income. –Budget control – actual expenditures or outlays must be compared with budgeted amounts

Example of comparing actual expenditures with budgeted amounts – here an encumbrance has been posted to a resource group that would take it over budget. The item is a warranty that perhaps should have been encumbered to a different resource group, such as 500 Other Purchased Services

More Issues That Complicate Award Management Destruction or loss of documentation Cash flow constraints Running out of time to finish a project Split funded employees & their time distribution records

More Issues That Complicate Award Management Misunderstood Concepts –Indirect costs vs. Direct costs –Program Income Generation Uses Reporting General Organizational Deficiencies

Preparing for Reporting & Compliance Balancing your financial reports monthly –Use a tracking spreadsheet –Monitor Budget vs. Expenditures –Compare your tracking sheet to the financial system & generated reports –Question possible errors –Take action to fix errors

Keep a journal Hire an external evaluator Have a copy of the report you are required to turn in at the close of the budget period –Update the report monthly with financial information –Update the non-financial portion as often as possible –Save multiple copies with “as of MM/DD/YY” Helps track your progress Demonstrates your continuing management and attempts at monitoring and compliance Preparing for Reporting & Compliance

A-133 Single Audit $500,000 in federal funds expended per fiscal year Type A and Type B Audits Understand what compliance means and what can be tested It is the auditees responsibility to produce the SEFA

A-133 Single Audit An “Unqualified” auditors report is desirable Identification of major programs that were audited should be stated clearly If major programs are clusters, this should also be identified

A-133 Single Audit Threshold of a major program Designation as a low-risk auditee is desirable No findings and questioned costs

Organize by CFDA # Clearly identify grantor and pass through agency Identify clusters & subtotal their expenditures Identify grantor & pass-through agency’s award numbers if available Distinguish between Direct Expenditures and Pass through Expenditures A-133 Single Audit

Recap Compliance is the effective management of public funds to maximize outcomes Good management and adherence to regulations is critical to avoid fraud, and institutional mismanagement