1. 1 Expenditure Documentation Review

2. 2 The Purpose of the Expenditure Documentation Review Beginning with Fiscal Year 2010-11, the Office of Family Planning (OFP) will select approximately 1/3 of all grantees for the first quarter, 1/3 of all grantees for the second quarter, and 1/3 of all grantees for the third quarter. The quarterly invoice will be submitted on agency letterhead based on the current submission schedule along with supporting expenditure documentation to the Contract Manager. Documentation submission dates: First Quarter: November 1 Second Quarter: February 1 Third Quarter: May 1 These documents may be requested more than once a year. All Grantees must maintain all documents for review and audit for three years from the date of final payment under this Agreement,unless there are issues that need to be resolved, in which case the records shall be retained until completion of the action and resolution of all issues which arise from it, whichever is longer. Adequate documentation of all expenditures claimed will be provided to OFP to determine if they are allowable.

3. 3 Contract Provisions Pursuant to Exhibit D(F), Provision 7.A, Audit and Record Retention of the Contract, “The Contractor and/or Subcontractor shall maintain books, records, documents, and other evidence, accounting procedures and practices, sufficient to properly reflect all direct and indirect costs of whatever nature claimed to have been incurred in the performance of this agreement, including any matching costs and expenses.”

4. 4 Contract Provisions Continued Pursuant to Provision 7.C of Exhibit B of the Contract, “If the allowability or appropriateness of an expense cannot be determined by the State because invoice detail, fiscal records, or backup documentation is nonexistent or inadequate according to generally accepted accounting principles or practices, all questionable costs may be disallowed and payment may be withheld by the State. Upon receipt of adequate documentation supporting a disallowed or questionable expense, reimbursement may resume for the amount substantiated and deemed allowable.”

5. 5 Expenditure Documentation shall include, but is not limited, to: PERSONNEL Employee time recording documents (i.e. timesheet, time cards, time study and payroll schedule based on Generally Accepted Accounting Principles) All Grantees must maintain documentation which provides linking documents that aggregate and summarize, by each employee, the hours worked by activity on the grant, and that such documentation will be maintained on a daily, weekly, and monthly basis, so that it clearly supports the allocation methodology used to distribute salaries and benefits and the actual personnel service costs billed to the Grant Amendment.

6. 6 Expenditure Documentation Continued OPERATING EXPENSES General expenses (allocation methodology and receipts, printing, duplicating, communications costs, program and office supplies) Employee Travel (logs, gas and hotel receipts, per diem reimbursements, airfare, etc,) Employee training (receipts for registration fees, training materials) Office Space Rental (allocation methodology/rent documents) Equipment (purchase/maintenance receipts)

7. 7 Expenditure Documentation Continued OTHER COSTS Subcontractor (invoices and receipts for billing) Program Event receipts, misc. supplies Food (sign-in log for supporting participant activity and food receipts) Incentive and Education materials/Outreach receipts) Stipends (cancelled checks) Transportation for participants (receipts for buses passes, rental bus, etc.)

8. 8 Expenditure Documentation Continued REGIONAL COLLABORATIVE EVENT Agendas, a receipt for hiring a speaker, etc. INDIRECT COSTS Identification of indirect costs and allocation methodology) Indirect are costs are costs that are not directly accountable to a cost object (such as a particular function or product). Indirect costs may be either fixed or variable. Indirect costs include taxes, administration, personnel and security costs, and are also known as overhead. cost objectoverhead Some examples of Indirect Costs include Executive Director expenses, Fiscal Staff expenses, janitorial expenses, liability insurance, etc.

9. 9 Expenditure Documentation Review Process Selected Grantees will receive a formal notification from their Contract Manager to submit the supporting documentation with their quarterly invoice. Once the documentation has been reviewed, Grantees will receive one of three email notifications from their Contract Manager. 1.Documentation is adequate, reimbursement is allowable. 2.Documentation is inadequate, additional information is requested. 3.Documentation is nonexistent or inadequate, reimbursement has been disallowed.

10. 10 Expenditure Documentation Review – Closing If you have any questions, please contact your Contract Manager. Thank you.