Ohio Commission on Minority Health Grantee Orientation

Commission Staff Angela C. Dawson, Director Angela C. Dawson, Director   Reina Sims, Program Manager Reina Sims, Program Manager  

Commission Staff Venita O’Bannon, Fiscal Specialist Venita O’Bannon, Fiscal Specialist   Sheronda Whitner, Executive Assistant Sheronda Whitner, Executive Assistant  

Agenda I. Overview I. Overview II. Getting Started II. Getting Started III. Financial Management III. Financial Management IV. Financial Reporting IV. Financial Reporting V. Performance Information & Monitoring V. Performance Information & Monitoring VI. Closeout VI. Closeout

I. Overview

Pre-Budget Conditions In order to receive funding, all applicants must address the special conditions assigned to their Acknowledgement of Terms (AOT). Failure to provide this information will result in not receiving an approved budget. In order to receive funding, all applicants must address the special conditions assigned to their Acknowledgement of Terms (AOT). Failure to provide this information will result in not receiving an approved budget.

II. Getting Started

Acknowledgement of Terms (AOT) Agreement Project Number (to be used on all correspondences and grant forms) Project Number (to be used on all correspondences and grant forms) Agency Name/Address Agency Name/Address Agency Executive Director Agency Executive Director Telephone Number Telephone Number Amount of Award Amount of Award Budget Period Budget Period Compliance Compliance Special Conditions Special Conditions

Award Agreement, cont. Budget period Budget period  Listed on the AOT- start and end dates  Date to obligate all funds and complete all programmatic activity  Cannot spend funds outside of this timeframe Closeout deadline Closeout deadline  Listed on the AOT document- 60 days after the end date  Date to expend all funds, pay all outstanding bills, and submit final paperwork

Terms of the Award Required grant activity Required grant activity Quarterly Reporting Quarterly Reporting General provisions General provisions Notification of change in circumstances Notification of change in circumstances Revision of grant funds Revision of grant funds Audit Audit

Signature Authority Grantee signs all documents; or Grantee signs all documents; or  Signature authority waiver  Person  Scope  fiscal reports, programmatic reports, or all aspects  Duration  Signature of Grantee Executive Director  Submit waiver as soon as possible and before quarterly reports are due

Operational Guidelines Recruitment and placement of project staff and/or contract staff must be completed by the end of the 1 st quarter Recruitment and placement of project staff and/or contract staff must be completed by the end of the 1 st quarter  Staff hired, funds obligated, activities begun  If not, letter must be submitted to the Commission  Reason for delay, steps taken, expected start date

Operational Guidelines Cont. Operational within 90 days Operational within 90 days  Submit second letter  Commission may cancel award at 90 days

Non-compliance - Actions Suspend payments Suspend payments Cancel award Cancel award Suspend or cancel other Commission funds Suspend or cancel other Commission funds Each project is an investment made by the Ohio Commission on Minority Health to assist Ohio in meeting State program goals to facilitate health promotion, education an disease prevention. OCMH is required to make good investments in our role as the State Administrative Agency.

III. Financial Management

Financial Management All recipients are required to: All recipients are required to:  Establish & maintain a separate and adequate system of accounting and internal controls  Accurately account for both General Revenue Funds (GRF) and 20% of agency funds and/or resources are received from other sources other than grants awarded by the Commission

Budget Tips Monitor budget situation throughout grant award period Monitor budget situation throughout grant award period First quarter First quarter  Hire staff, order lease/rental of equipment  If an adjustment is needed, it is usually apparent by end of first quarter

Budget Revision Administrative cost once approved maybe decreased but not increased. Administrative cost once approved maybe decreased but not increased. Project expenditures are not permitted when the budget revision is submitted after the expenditures is made. Project expenditures are not permitted when the budget revision is submitted after the expenditures is made. Submit budget revision a timely manner. Per administrative rules, the budget revision must be submitted 45 days prior to the end of the quarter Submit budget revision a timely manner. Per administrative rules, the budget revision must be submitted 45 days prior to the end of the quarter

Budget Revision Prior approval required Prior approval required  Moving money between categories  Changes that affect the scope, regardless of amount involved  All personnel changes  All lease/rental of equipment  Reallocating money within a category  Moving money into a category previously $0 always changes the scope

Program Revisions  Prior approval required  Change in project location  Change in scope and objectives  Extension of project period – not routinely granted  Extension of liquidation period (closeout deadline)  Notify the Commission of change  Project director  Change of contact information  Address, phone number, and  Person filling a prior approved position

Program and Budget Revision Approval Request by project Request by project  In writing – Provide detailed budget justification narrative  Signed by authorized officials (Executive Director and Fiscal Officer  Due at least 45 days prior to end date Approval by Commission’s Executive Director Approval by Commission’s Executive Director  Review of project compliance  Review of justification and submission date  Allow two weeks for processing  Decision made in writing

Adjustments: Monitoring If prior approval not obtained If prior approval not obtained  Commission will determine if an adjustment changed the scope during monitoring  Adjustment could be denied and funds returned to the Commission  If not certain whether adjustment will result in change in scope, seek prior approval to be sure

IV. Financial Reporting

Quarterly Financial Report (QFR) Submit QFR to the Commission via and US mail by due date Submit QFR to the Commission via and US mail by due date  Fiscal and programmatic quarterly report information should arrive together  Based on the review of the report, Program Manager and Fiscal Specialist  Approve payments & make monitoring recommendations

Quarterly Subgrant Report (QSR) Due Dates Reporting Periods: Reporting Periods: –1 st quarter = July 1 st – September 30 th due October 15 th –2 nd quarter = October 1 st – December 31 st due January 15 th –3 rd quarter = January 1 – March 31 st due April 15 th –4 th quarter = April 1 st – June 30 th due July 15 th _ If funded for year two funding Audit is due October 30, 2017 Send one signed copy via and the original via US Mail Send one signed copy via and the original via US Mail Failure to submit on time will result in an out of compliance letter being sent Failure to submit on time will result in an out of compliance letter being sent

Payment Information If you are currently not in OAKS, the statewide accounting system you will need to submit: If you are currently not in OAKS, the statewide accounting system you will need to submit:  W-9 form  Vendor form (OBM-5657) In order to receive an EFT reimbursement payment you will need to submit: In order to receive an EFT reimbursement payment you will need to submit:  EFT direct deposit form (OBM – 1234) 

Payments on Expenditures Quarterly payments Quarterly payments  Report actual expenditures on QFR  Reimbursement provided

How to Avoid Common Errors Report grant funds received from the Commission quarterly and year to date Report grant funds received from the Commission quarterly and year to date Report the total grant expenditures quarterly and year to date Report the total grant expenditures quarterly and year to date Report outstanding obligation quarterly and year to date. If personnel, break out salary and fringe benefits Report outstanding obligation quarterly and year to date. If personnel, break out salary and fringe benefits Use correct period ending date Use correct period ending date Use correct grant number Use correct grant number Obtain appropriate signature and submit originals Obtain appropriate signature and submit originals The approved budget is not correct on the QFS The approved budget is not correct on the QFS

Payment Timetable Commission Fiscal Commission Fiscal  Reviews of reports on first come first serve  10 business days QFRs do not submit fiscal backup documentation QFRs do not submit fiscal backup documentation Back up documentation will be requested at when desk top monitoring is performed or at on-site visit Back up documentation will be requested at when desk top monitoring is performed or at on-site visit

Incorrect Reports Revised report will be required Revised report will be required  Commission cannot make the changes  Liability issue for audit  Requires new signature – takes time and delays the payment  Will raise red flags for monitoring/audit  Will raise concerns during continuation review  All revised reports must be hard copies with original signatures

V. Performance Information & Monitoring

Purpose & Benefits Purpose Purpose  Compliance oversight  Assist with funding recommendations  Identify areas for technical assistance Benefits Benefits  Promotes interaction between OCMH and the Grantee Agency  Performance Reports generate useful data

On-Site Programmatic Monitoring Tell your story Tell your story Project progress Project progress –Adhering to approved grant application? Meeting objectives? Meeting objectives? Following timeline? Following timeline? REEP Evaluator REEP Evaluator Technical assistance Technical assistance Necessary follow-up Necessary follow-up

Fiscal Monitoring

Fiscal Monitorings Provide technical assistance to local and/or state agencies for financial grant-related issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. Provide technical assistance to local and/or state agencies for financial grant-related issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. Identifies problems and prepares questions to pose during monitoring. Identifies problems and prepares questions to pose during monitoring.

Fiscal Monitorings (cont’d)  Documents reviewed include:  Bank Statements and Reconciliations  Receipts/Deposits  Other sources of agency support  General Ledger Reports  Payroll Registers (Timesheets and Activity Reports)  Consultant Contracts  Consultant Payments (Invoices and Timesheets)  Rent equipment/Supply receipts  Travel Costs (Mileage Reimbursements, Lodging)  Canceled Warrants, Checks, Invoices and Purchase Orders

Preliminary Planning Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring review. Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring review. Site Confirmation Letter is sent and U.S. mail (Once date is set up) to the grantee confirming the date and time of the fiscal monitoring. Site Confirmation Letter is sent and U.S. mail (Once date is set up) to the grantee confirming the date and time of the fiscal monitoring. Focus is to ensure accuracy of the QFR preparation by reviewing the Expenses, General Ledger and Budget approved by the Commission and comparing those documents for compliance. Focus is to ensure accuracy of the QFR preparation by reviewing the Expenses, General Ledger and Budget approved by the Commission and comparing those documents for compliance.

Fiscal On-Site Visit Compliance Monitors review and analyze records, operations, organization, systems and controls, and interviews employees involved in program being monitored as well as fiscal review of backup documentation submitted with quarterly fiscal reports (QFR). Compliance Monitors review and analyze records, operations, organization, systems and controls, and interviews employees involved in program being monitored as well as fiscal review of backup documentation submitted with quarterly fiscal reports (QFR). Meet with appropriate representatives to be involved in monitoring. Meet with appropriate representatives to be involved in monitoring. Attend meetings to review/participate in discussion of findings with appropriate representatives of entity being monitored at the conclusion of the site visit. Attend meetings to review/participate in discussion of findings with appropriate representatives of entity being monitored at the conclusion of the site visit.

Fiscal On-Site Visit (Cont’d) Prepare final monitoring report summarizing work performed, findings and recommendations to improve/resolve deficiencies or non-compliance. Prepare final monitoring report summarizing work performed, findings and recommendations to improve/resolve deficiencies or non-compliance.

Fiscal On-Site Visit (Cont’d) Payroll Testing is a double check to verify accuracy of the payroll payments made to all employees that are listed on the grant. Payroll Testing is a double check to verify accuracy of the payroll payments made to all employees that are listed on the grant. –Verify the personnel, hours worked, pay rates, and ensure that the total payroll is paid accurately. –Verify expense ledger (as provided by the subgrantee), the bank statements, pay stubs, and timesheets of all employees stated in the grant. –Any discrepancies are noted and if further action is necessary, it is outlined in the Corrective Action Letter.

Field Work (Cont’d) Expenditures Testing is used when there are consultants, travel, supplies, other costs, and/or administrative costs on the grant. Expenditures Testing is used when there are consultants, travel, supplies, other costs, and/or administrative costs on the grant. –Verify various expense “testing” to ensure accuracy of expenses being reported on the grant, as well as to ensure that allowable costs are being reported within the guidelines of the approved budget. Any discrepancies are noted and if further action is necessary, it is outlined in the Corrective Action Letter.

Back-Up Documentation

Summary Sheet Breakdown Breakdown from Summary Sheet: Breakdown from Summary Sheet: –Personnel Costs: (A) $10, $1, $42.66 = $11, (which matches QFR Personnel Costs) = $11, (which matches QFR Personnel Costs) –Travel Costs: (B) = $74.40 (which matches QFR Travel Costs) = $74.40 (which matches QFR Travel Costs) –Supply Costs: (C) = $90.00 (which matches QFR Supply Costs) = $90.00 (which matches QFR Supply Costs)

Follow-Up

Recommendations After fiscal on site visit work is complete a Corrective Action Letter is compiled and sent to the agency. The letter is usually sent within ten business days of the Onsite Monitoring. After fiscal on site visit work is complete a Corrective Action Letter is compiled and sent to the agency. The letter is usually sent within ten business days of the Onsite Monitoring. Letter identifies problems and prepares recommendations as a result of the fiscal monitoring: Letter identifies problems and prepares recommendations as a result of the fiscal monitoring: –States personnel met with at the Onsite Monitoring. –Explains items reviewed during the monitoring. –What observations were made during a review of the financial documents and all other related financial information to each grant being monitored. –Recommendations section stating what corrective action needs to be taken and if a 30 day follow-up will be required. Letter is designed to improve/resolve deficiencies or non- compliance of the grant fiscal monitoring. Letter is designed to improve/resolve deficiencies or non- compliance of the grant fiscal monitoring.

Follow-Up If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide correction action in regards to the recommendations stated within the monitoring letter. If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide correction action in regards to the recommendations stated within the monitoring letter. –Contact subgrantee and communicate with the agency leadership to plan for the follow-up fiscal monitoring review. Agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring recommendations. Agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring recommendations. After the initial fiscal monitoring, a follow-up courtesy call/ may be necessary to answer any open items and/or questions regarding the recommendations letter. After the initial fiscal monitoring, a follow-up courtesy call/ may be necessary to answer any open items and/or questions regarding the recommendations letter. If corrective action is not implemented within the 30 days, all grant funds will be FROZEN. If corrective action is not implemented within the 30 days, all grant funds will be FROZEN.

Corrective Action Plan

Why Corrective Action Plan? Corrective action plan is outlined in the recommendations letter when a 30 day follow-up is necessary. Corrective action plan is outlined in the recommendations letter when a 30 day follow-up is necessary. It is designed to improve/resolve deficiencies or non-compliance issues related to the grant monitoring(s). It is designed to improve/resolve deficiencies or non-compliance issues related to the grant monitoring(s). Assists the agency from having non-compliance action taken against them. Assists the agency from having non-compliance action taken against them.

Timeline and Corrective Action The agency is given 30 days from receipt of the recommendations letter to provide a corrective action plan in regards to the recommendations stated within the recommendations letter. The agency is given 30 days from receipt of the recommendations letter to provide a corrective action plan in regards to the recommendations stated within the recommendations letter. The agency must demonstrate at the 30 day follow- up monitoring that corrective action has been taken and that the recommendations outlined in the monitoring letter have been satisfactorily met. The agency must demonstrate at the 30 day follow- up monitoring that corrective action has been taken and that the recommendations outlined in the monitoring letter have been satisfactorily met.

Corrective Action Plan Examples Continue to use proper care when filing paperwork in the grant files/binder. Continue to use proper care when filing paperwork in the grant files/binder. Continue to provide detailed backup for the amounts reported on the QFR, and referencing where the supporting documentation is located. Continue to provide detailed backup for the amounts reported on the QFR, and referencing where the supporting documentation is located. The OCMH grant activity could be verified in the financial accounting system maintained by the agency showing all related financial activity related to Commission grant funds. The OCMH grant activity could be verified in the financial accounting system maintained by the agency showing all related financial activity related to Commission grant funds. An Expense Ledger should be available to detail out all expenses year-to-date. An Expense Ledger should be available to detail out all expenses year-to-date. There is no “Separation of Duties”; Mr.Mrs. XXX XXXX solely handles all financial aspects of the grant(s) award by OCMH. There is no “Separation of Duties”; Mr.Mrs. XXX XXXX solely handles all financial aspects of the grant(s) award by OCMH.

Corrective Action Plan Examples (Cont’d) With your grant staff, ensure that the most accurate and updated budget information is on file with OCMH. With your grant staff, ensure that the most accurate and updated budget information is on file with OCMH. Ensure that proper notification is submitted to our office explaining any necessary budget revision that differ from the original approved grant budget. This change applies to all grants that are awarded from OCMH. Ensure that proper notification is submitted to our office explaining any necessary budget revision that differ from the original approved grant budget. This change applies to all grants that are awarded from OCMH. It is highly recommended that responsibilities of Approving Expenditures, Signing of the Checks, Posting Transactions to the General Ledger, and Performing Bank Reconciliations be shared among more than one employee in order to segregate the Separation of Duties within the organization. It is highly recommended that responsibilities of Approving Expenditures, Signing of the Checks, Posting Transactions to the General Ledger, and Performing Bank Reconciliations be shared among more than one employee in order to segregate the Separation of Duties within the organization.

VI. Closeout

Closeout Deadline 60 days after project end date 60 days after project end date Failure to report will jeopardize reimbursements and future funding Failure to report will jeopardize reimbursements and future funding

Closeout Checklist Programmatic Programmatic  All performance reports  Products/publications/deliverables Fiscal Fiscal  All financial reports  Final QFR  OCMH will send refund request letter (if applicable)  Submit refund to OCMH

Closeout Financial Report  Fourth quarter report Show unpaid obligations Show unpaid obligations If no unpaid obligations, submit the report as final If no unpaid obligations, submit the report as final  Final report All bills paid All bills paid All expenditures are reported All expenditures are reported  Incurred within the grant period  Paid by end of liquidation period  All column add correctly

Commission Contact Information Ohio Commission on Minority Health Ohio Commission on Minority Health 77 S. High Street 77 S. High Street 18 th Floor Columbus, Ohio Columbus, Ohio (telephone) (telephone) (fax) (fax)