Western Region CSREES Administrative Officer’s Meeting

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

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 9th St, SW Washington, DC 20027 202-205-0453 (voice) 202-401-7752 (fax) jdowney@csrees.usda.gov