1. Western Region CSREES Administrative Officer’s Meeting Monterey, California October 4 – 6, 2005 Janet Downey, Staff Accountant OEP, POFMB, Oversight Section AREERA – Moving Forward

2. AREERA Primary Audit Findings Established target percentages too low Funding released for only conditionally approved Plan of Work CSREES not ensuring target spending met 1890’s spending below match Governor’s Report not required

3. Pending Changes Review of previously submitted CSREES-REPT Review of SF-269’s for FY 2000-2003 Revised Administrative Guidance on targets previously set Governor’s Report Revised Administrative Guidance on the Plan of Work

4. Re-evaluate Targets Construct listing of projects Determine nature of activities Associate draw-downs and expenditures with projects Documented “good faith” estimate Re-submit CSREES-TARG

5. Points to investigate CRIS Internal accounting documents: –Time and effort reporting –Documents/payment vouchers containing accounting codes related to multistate and integrated activities

6. Points to investigate Governor’s Report Program/activity files Interviews with staff Smith-Lever Budget for 1997

7. Revised Targets Effective beginning FY 2007 Not retroactive Targets not previously met Post-Waiver requests for failure to meet previous targets Funding recovery

8. Revised CSREES-REPT One form covering all categories Carryover Do not submit a Final Report until all requirements for that year are met Certification statement Auditable

9. Record keeping Retain 1997 records until revised target accepted Track AREERA expenditures- manually if necessary

10. Auditable Documents Plan of Work* Annual Report of Accomplishments and Results* SF-269, Financial Status Report SF-272, Federal Transactions Report CSREES-REPT* Certification of Offset Certification Regarding Lobbying *only as it pertains to Section 105 and 204 requirements of AREERA

11. Time Table January 2006 – Revised Administrative Guidance for comment March 1, 2006 - Final revised Administrative Guidance March 31, 2006 – OGC clearance April 15, 2006 - Publication date

12. Time Table (continued) June 15, 2006 - LGIs submit Revised Targets July 15, 2006 – CSREES sends approval letters October 1, 2006 – Revised Targets take effect

13. Questions????

14. Improper Payments Information Act of 2002

15. Law requires Federal Agencies to: Review every Federal program, activity, and dollar to assess risk of significant improper payments Develop a statistically valid estimate to measure extent of improper payments in risk susceptible programs Initiate process and control improvements to enhance accuracy and integrity Report and assess on an annual basis

16. Required reporting: Agency annual risk assessment on programs above the $10 million threshold Plan of action including testing Report to OCFO annually for inclusion in USDA’s Performance and Accountability Report after 2004

17. Audit Findings CSREES misinterpreted what was required and was not performing required risk assessment

18. OIG Recommended Identify risk factors unique to the programs Document internal controls designed to mitigate risk factors Test transactions to determine error rates Report annually to USDA OCFO

19. Results CSREES participates in the IPIA Workgroup Testing Corrective Actions

20. Release of Formula Funds Requirements –Approved POW/Program of Research –CSREES-REPT –Certification of Offset –Certification Regarding Lobbying –SF-269, Financial Status Report –CSREES-2008 for Extension –Budget for Extension Formula Funds Reporting web page Manual tracking system Automated system

21. Formula Funds Reporting Page Table of Contents: Fund types grouped by recipient type Fund type pages –Forms required –Due date –How to submit if not online:.pdf files in email recommended Fax Regular or Overnight mail

22. Primary Contact Person All personnel who need to know Submit prior to start of fiscal year

23. Questions????

24. Chapter III – Administrative Manual for Cooperative Extension

25. Outline Scope Purpose Authority/Responsibility Eligibility Definitions Purpose of Funding

26. Outline Extension Cycle –Plan of Work –Estimated Certification of Offset –Certification Regarding Lobbying –Primary Contact Person

27. Outline Budget –Allowable and Unallowable Costs –Time and effort reporting –Construction –Vehicles –Travel –Contracts –Indirect Costs

28. Outline SF-272, Financial Transactions Report SF-269, Financial Status Report Final Certification of Offset Annual Report of Accomplishments & Results CSREES-REPT Performance Rating Assessment Tool (PART)

29. Outline Accountability Issues –Carryover –Matching & Cost Sharing –Program Income –User Fees –Intellectual Property –Conflict of interest –Subcontracts

30. Outline Accounting Operations –Internal Controls –Audits –Risk Assessment –Contingency Plan-continuity of operations

31. Outline Formula Calculation for all Extension formula Payment to the States

32. Questions/Suggestions

33. Contact Janet Downey, Staff Accountant Oversight Section, POFMB USDA, CSREES 800 9 th St, SW Washington, DC 20027 202-205-0453 (voice) 202-401-7752 (fax) jdowney@csrees.usda.gov