Post Award Management

1. Post Award Management What is it really? Alison Robbins, Budget Analyst – Grants Wichita Public Schools – USD 259

2. Introduction • Alison Robbins of Wichita Public Schools • 12 years of experience in non-profit and governmental accounting and grant management • 727 hours of training in contracts, compacts, and grant writing, award management, and implementation • Trained by HUD, EPA, USDA, BIA, CalTrans, KSDE, and numerous government contracted training consultants

3. Goals & Objectives • To provide a “Beginners Guide” to post-award management detailing items of importance • To provide a refresher on award management issues for experienced managers to hone their skills • To address questions regarding “how to” handle common situations that complicate award management

4. What is Post Award Management ? • Good post-award management can be summed up as a genuine understanding of and a commitment to the implementation of all regulations and rigorous internal control procedures to which all grant activities and transactions must adhere. This is sometimes easier said than done

5. Where should you start? • Award Letter and attachments • Find and read all regulations, statutes, policies, procedures, and guidance documents • Gather key personnel for a networking meeting

6. Regulations • Researching pertinent regulations is imperative! • CFDA Number online at: • http://12.46.245.173/cfda/cfda.html • OMB Circular A-133 online at: • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html • OMB Circular A-133 Compliance Supplements online at: • http://www.whitehouse.gov/omb/circulars/a133_compliance/08/08toc.html • CFR online at: • http://www.access.gpo.gov/nara/cfr/cfr-table-search.html

7. After the Research of Regulations? • Time to re-read your approved grant application for measureable outcomes, financial details found in the budget narrative, and other quantifiable statements made in the application. • Make a list of items that will require special tracking, such as: • Eligible participants applications • In-Kind matching

8. What’s Next ? • Compile Lists – use Grant Folder(s) Checklist • Train Personnel • Find free workshops hosted by funding agencies; or • Attend fee based workshops – examples • Bill Helmich Associates www.billhelmichassociates.com • Kansas Society of CPAs www.kscpa.org

10. Continuing Process of Management • Every activity or transaction needs to be scrutinized using four key criteria • Consistent with federal cost principals • Is it necessary and reasonable? • Allowable under the program • What % is it allocable? • Consistent with program specific fiscal rules • Consistent with applicable CFR

11. Allowable vs. Allocable • Allowable • Specifically allowed under the applicable cost principles for your organization • Budgeted for in the grant application’s budget narrative • Allocable • Can only charge in proportion to the value received by the program

12. Issues That Complicate Award Management • Changes in key personnel • Changes in the financial system/software or procedures • Must permit preparation of reports • Must account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds • Must permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes • Accounting records must adequately identify the source and application of funds • Transaction controls over allowable and unallowable costs (application of funds) • Source documentation • Must contain information pertaining to grant authorizations, obligations, unobligated balances, assets, liabilities, expenditures and income. • Budget control – actual expenditures or outlays must be compared with budgeted amounts

16. Example of comparing actual expenditures with budgeted amounts – here an encumbrance has been posted to a resource group that would take it over budget. The item is a warranty that perhaps should have been encumbered to a different resource group, such as 500 Other Purchased Services

18. More Issues That Complicate Award Management • Destruction or loss of documentation • Cash flow constraints • Running out of time to finish a project • Split funded employees & their time distribution records

22. More Issues That Complicate Award Management • Misunderstood Concepts • Indirect costs vs. Direct costs • Program Income • Generation • Uses • Reporting • General Organizational Deficiencies

23. Preparing for Reporting & Compliance • Balancing your financial reports monthly • Use a tracking spreadsheet • Monitor Budget vs. Expenditures • Compare your tracking sheet to the financial system & generated reports • Question possible errors • Take action to fix errors

24. Preparing for Reporting & Compliance • Keep a journal • Hire an external evaluator • Have a copy of the report you are required to turn in at the close of the budget period • Update the report monthly with financial information • Update the non-financial portion as often as possible • Save multiple copies with “as of MM/DD/YY” • Helps track your progress • Demonstrates your continuing management and attempts at monitoring and compliance

25. A-133 Single Audit • $500,000 in federal funds expended per fiscal year • Type A and Type B Audits • Understand what compliance means and what can be tested • It is the auditees responsibility to produce the SEFA

26. A-133 Single Audit • An “Unqualified” auditors report is desirable • Identification of major programs that were audited should be stated clearly • If major programs are clusters, this should also be identified

27. A-133 Single Audit • Threshold of a major program • Designation as a low-risk auditee is desirable • No findings and questioned costs

28. A-133 Single Audit • Organize by CFDA # • Clearly identify grantor and pass through agency • Identify clusters & subtotal their expenditures • Identify grantor & pass-through agency’s award numbers if available • Distinguish between Direct Expenditures and Pass through Expenditures

29. Recap • Compliance is the effective management of public funds to maximize outcomes • Good management and adherence to regulations is critical to avoid fraud, and institutional mismanagement