Fiscal Administration Overview June 2008

1. Allocation and Matched Funding Section Office of Family Planning (OFP)Information and Education (I&E)and Male Involvement Program (MIP) Fiscal Administration Overview June 2008

2. AGENDA • Informational Flow • Dates to Remember • Funding Information • Budget and Strategy • Budget Components Summary • Grant Agreement Budget • Building your Current Fiscal Year Budget • Budget Revisions • Payments • Grantee Operation Changes • Other Administration • Agreement Funding Application (AFA) Process

3. Informational Flow • Contract Manager • Point person to receive all documents • Maintains Central File • Answers Budget and Invoice questions • Time study template questions • Program Consultant • Answers programmatic questions • staffing, workplan, progress reports • Time study coding and secondary documentation questions • Project Director and/or Coordinator Role • Receives CDPH letters, e-mails, and correspondence • Forwards information to appropriate Grantee fiscal and program staff.

4. Dates to Remember • Submission timeline for fiscal year documents • Allocation Funding Application (AFA) package is due July 1st, (2xxx) • October 31st, (2xxx) - 1st quarter invoice due • January 31st, (2xxx) - 2nd quarter invoice due • April 30th, (2xxx) - 3rd quarter invoice due • Sept. 30th, (2xxx) - 4th quarter invoice due • October 31st, (2xxx) - Final supplemental invoice if necessary.

5. Funding Information • Funding for the I&E and MIP Programs come from a combination of State General Funds, Federal Title XIX (Medicaid), and local funds (if applicable). The Title XIX funds are identified as FFP or Federal Financial Participation. These funds provide matching Title XIX reimbursement for certain Medi-Cal administrative activities. • These Funds support the 27 (I&E) and 21 (MIP) grantee's and their subcontractors throughout California.

6. Funding InformationContinued… State General Funds Funding Requirements • I&E and MIP Programs must comply with Teen Pregnancy Prevention Program requirements as mandated through specific State statutes as identified in the California Welfare and Institutions Codes. and

7. Funding InformationContinued… Also Meet FFP Funding Requirements, if applicable • I&E and MIP Programs must comply with Federal funding requirements to receive FFP reimbursement. • Only staff activities performed that meet the two FFP Objectives will qualify for FFP reimbursement. • Bringing potential eligible's into Medi-Cal systems to determine their Medi-Cal eligibility. • Bringing Medi-Cal eligible people into Medi-Cal services. • All staff claiming FFP funding are required to time study for 100 percent of their time for 1 week each quarter. • All other I&E and MIP Program activities that don’t qualify for FFP will be reimbursed with State General Funds.

8. Funding InformationFFP Funding Requirements Continued… • All staff must use OFP approved documentation forms: • Secondary documentation forms. This form and all supporting information must be maintained for three years, unless an audit is performed resulting in audit findings. Then, the Grantee must maintain the files for three years after the final resolution of the audit finding. • Weekly Time Study Calculation Template.

9. Funding InformationFFP Funding Requirements Continued… Time Study Submission • The Grantee must submit a completed Time Study Data Summary calculation sheet for each staff person listed on the quarterly invoice’s personnel section that is being submitted in order to receive reimbursement. • Resource: FFP User Guide – Refer to the most recent version on the ETR Website. http://www.etr.org/ofp/ffp/index.htm

10. Funding InformationBudget Restrictions Below is a partial list of expenses not allowed on your budget. For a complete list, refer to your grant agreement. • No purchase of vehicles • No purchase of land or buildings or improvements • Any costs that are not associated with the approved I&E and MIP workplan objectives Any restricted items reflected on the budget will will need to be removed before the budget can be approved.

11. Funding InformationBudget Restrictions Continued.. These Expenses are allowed with restrictions: • Food can be budgeted, but only up to 1% of the lead Grantee budget. This amount includes subcontractors. • Space rental for program staff can not be higher than the negotiated rate, which is based on total Full Time Equivalent (FTE). (100sq ft. x FTE(s) x $1.00 per sq ft. x 12)

12. Funding Information Budget Restrictions Continued… • Liability Insurance can be budgeted as an individual line item up to 1% of Grantee budget (remainder must be budgeted within the indirect costs). • Indirect Costs are not to exceed 15% of salaries and benefits.

13. Budget and Strategy • The following six documents will serve as a model for building your current fiscal year budget. • The grant agreement budget – Provides you with the five line item totals you need to create your current year budget. • Last prior approved fiscal year budget – Provides you with an example of how you estimated expenditures in the previous fiscal year. • Previous fiscal year invoices – They will show you how the money was actually spent. • The current proposed workplan – Provides you an idea of what positions may be needed in order to estimate staff’s full time equivalent (FTE). • Attachments B1 & B2 budget resource documents – will assist grantee's in budgeting detail line item expenditures correctly and provide budget requirements. • Contract Manager (CM) – your CM is also a good resource when you have questions.

14. Budget and Strategy Continued… • Remember: • the budget is always your best estimate. • Invoicing is always based on actual expenses. • Seldom is your best estimate the same as actual expenditures. • It’s likely that you will require one if not two budget revisions during the fiscal year to accommodate actual expenditures.

15. Budget Components Summary Five line item budget • Personnel: Staff salaries & benefits. • Operating Expenses: Expenses necessary to run the program (refer to B1 resource sheet) • Equipment: office furniture or any item with the purchase cost of $49.99 and over. • Other Costs (Subcontractors/Other Charges) • Indirect costs: costs that accrue in the normal conduct of business that can only be partially attributable to performance of a grant (e.g., administrative expense, payroll, accounting, liability insurance, janitorial, security, building maintenance, Executive Directors time.

16. Grant Agreement Budget • The Grant Agreement “Exhibit B” budget’s major line item categories must match your current fiscal years budget major line item category totals. If not, you will need to request a grant amendment.

17. ORIGINAL BUDGETfromGrant Agreement

18. Building the Current Fiscal Year Budget General Rules • All worksheet cells that allow data input are highlighted in yellow. The white cells are protected and are automatically calculated by formulas. • Please limit entries to whole numbers. • After completing and reviewing the entire budget document, save the file with a new name.

19. Building your Current FY BudgetBudget/Invoice Template- Budget Summary Page

20. Building your Current FY BudgetBudget/Invoice Template - Operating Expense Detail

21. Building your Current FY Budget Budget/Invoice Template - Personnel Detail Page

22. Building your Current FY BudgetBudget/Invoice Template - Budget Summary Page

23. Building your Current Fiscal Year BudgetSubcontractor Definition • The Grantee shall be responsible for the performance of all requirements under the grant agreement, even if the requirements are carried out by a subcontractor. • The Grantee agrees that all subcontract agreements entered into for performance under the grant agreement, shall be in writing and shall include a provision requiring the subcontractor to comply with the applicable terms and conditions of the grant agreement, including all exhibits and applicable state laws.

24. Building your Current FY BudgetBudget/Invoice Template - Other Costs Detail PageSubcontractors Information

25. Budget RevisionsThere are Three (3) Types of Revisions • Informal Allowable Line Item Shift • Formal Budget Revision (no Grant Amendment required) • Formal Budget Revision (Grant Amendment required)

26. Budget RevisionsInformal Allowable Line Item Shift • Description • The description of an informal budget revision is the shifting of funds within each of the major line categories without changing the bottom line totals. • Budget Format • Always use the most current approved template. • Requesting a Budget Revision • To request a budget revision the Grantee needs to prepare the revision and e-mail the excel template to their Contract Manager for a preliminary review before a signature is obtained. Before emailing the template, verify that your budget is still balanced by reviewing the information in the box titled “SGF Balance” (located on the budget summary page) This box should reflect a blank box or a positive dollar amount between $1 – $10. If the box contains a positive dollar amount of $11 and above or is red, you will need to review your budget information and make the necessary changes to bring you budget back into balance. • Approval Process • Once all the revised information is preliminarily approved, the CM will advise the Grantee to obtain the required signature and submit it for formal approval. Grantee will then mail the signed original document to their assigned CM. The CM will then review to make sure it was the correct revision submitted. Once approved, the CM will e-mail a PDF copy of the budget approval letter to the Project Director/Coordinator and Fiscal Contact. The CM will approve the revised budget as soon as possible as long as there are no other changes needed or other pending issues to resolve.

27. Budget Revisions Continued..Formal Budget Revision (no Grant Agreement required) • Description • The Grantee may shift between expense categories any amount up to $25,000 at one time for a contract totaling $250,000 or less, or Ten percent of the contract total may be shifted at one time for the contract exceeding $250,001. However cumulative shifts may not exceed $50,000 annually in either case. Also, the Maximum Amount Payable does not change. • Budget Format • Always use the most current approved template and reflect that it is a BR1 or BR2 as appropriate using the drop down arrows. • Requesting a Budget Revision • The requesting process is the same as the informal budget revision. • Approval Process • The approval process is exactly the same as the informal allowable line item shift revision.

28. Budget Revisions Continued..Formal Budget Revision(Grant Amendment required) • Description • If the line item shifts in the revision are higher than $25,000 or 10% for Grants over $250,001, or the Maximum Amount Payable to the Grantee changed, it means a Grant Amendment needs to be prepared. • Budget Format • Always use the most current approved template and reflect that it is a BR1 or BR2 as appropriate using the drop down arrows. • Requesting a Budget Revision • Grantees will create the revision and submit it to your contract manager for a preliminary review. Once it’s received preliminary approval, the CM will prepare the Grant Amendment Forms. • Approval Process • The approval process for a Grant Amendment is much longer than the other two revisions because the Amendment documents require review and approval signatures from the CDPH and the Grantee. The approval time frame to receive an executed Grant Amendment is usually 2-3 Months.

29. Payments Four Types of Payments • Initial Allotment • Up to twenty-five (25) percent of the yearly grant amount can be requested at the beginning of each fiscal year. • Quarterly Invoices • Invoice for actual expenditures. • Submitted each quarter of the fiscal year. • Supplemental Invoice – Final Invoice • One supplemental invoice can be submitted each fiscal year. • Submit supplemental invoice after all four quarterly invoices are submitted to close out the fiscal year. • Final Invoice - Expiration of Grant Term • A final undisputed invoice will be submitted at expiration of grant term. • A Contractor’s Release Form must be included. (This form releases OFP from any further responsibility to provide reimbursement towards this grant.)

30. Payments Continued… Initial Allotment I&E and MIP grantee's may annually request an initial allotment up to 25% of their current annual grant amount. An initial allotment payment can be requested only if all of the following criteria are met. • The grant has been fully executed; • The Governor’s Budget for the fiscal year has been signed; and • The Grantee has repaid all of the previous years initial allotment. The initial allotment is recouped in 1/3 increments from the first three quarterly invoices. If unable to recoup the entire allotment within the first three quarters, we will continue through the 4th quarter and any supplemental invoices, if needed. (If after all invoicing has been completed and the Grantee still has a balance owing, they would need to contact their contract manager to discuss repayment options.) The form to request the initial allotment can be located on the OFP using the I&E and MIP allotment template. It must be printed on Grantee letterhead when submitted. See an example of the form on the next slide.

31. Payments Continued…Initial Allotment Form

32. Payments Continued…Invoices • Description • Invoice Format • Submitting an Invoice • Initial Allotment Recovery • Recoupment of unreimbursed costs from previous quarters • Receipt of payment

33. Payments ContinuedSupplemental or Final Fiscal Year Invoice • Description • Invoice Format • Submitting a Supplemental or/Final Invoice • Receipt of Payment

34. Grantee Operation Changes • Legal Grantee Changes • Grantee Information Change

35. Other Administration • Record retention • Reminder to return State Equipment/Property

36. Agreement Funding Application(AFA) Process • Description • The AFA package consists of specific documents that are required to be submitted prior to the start of each fiscal year. These documents must be approved by your Contract Manager (CM). Once you have received AFA approval, you may invoice. • Due Date • July 1st, unless alternate date is provided by OFP

37. Agreement Funding Application (AFA) Process • Requirements • Grantee’s must use the most current documents to create their AFA Package. • Grantee’s computers are required to contain software applications necessary to conduct business with OFP. Refer to your grant or Teen Pregnancy Prevention. Policy Letters for computer and software requirements. • Grantee’s must submit all required documents listed on the AFA Checklist. • For the upcoming Fiscal Year you will be required to submit your AFA Package electronically to your assigned contract manager. • Grantee’s are required to use the following naming protocol in the subject line of your AFA submission e-mail. FY 08-09 AFA Package – Grant # (Grantee Complete Name) This will assist us with identifying your documents quickly.

38. Agreement Funding Application (AFA) Process • Submission Method • Each Grantee will submit one e-mail that contains all of the required AFA documents to their assigned Contract Manager. • You may submit AFA documents in word, excel or PDF format. However it is required that any documents containing a signature, like the – Grantee Budget, Grantee Information Form, School Agreements, AFA Checklist, Policy Compliance and Certification Form and Subcontract Agreement Form must be sent in PDF format.

39. Agreement Funding Application (AFA) Process Continued… • Reminders • All fiscal and resource documents discussed in this training are located on the OFP website. • Contact your assigned contract manager if you have any questions.

40. Important Website and E-Mail Information ETR Website Link:http://www.etr.org/ofp/webinar/index.htm Webinar trainings, webinar survey form ETR Website Link: http://www.etr.org/ofp/staffLists/index.htm Contract Manager/Program Consultant Contact List OFP Website: http://www.cdph.ca.gov/programs/OFP/Pages/default.aspx AFA documents, forms, budget/invoice templates, FFP Guide OFP General E-Mail Box: OFPMAIL@cdph.ca.gov

41. This Concludes the Fiscal Administration Training!