Cooperative Agreement Reviews What we look for and how to prepare

1. Cooperative Agreement ReviewsWhat we look for and how to prepare Presented by- Rochelle Langley Management Analyst MRPBS-FMD-RAB

2. Who we are?

3. Our Mission: The Financial Management Division’s (FMD) Review & Analysis Branch (RAB) provides program, financial oversight and management improvements through program, financial, and compliance Reviews of cooperative agreements and grants, international trust funds, and the Horse Protection Act. RABs mission is to foster APHIS partnerships; to facilitate financial, operational, and administrative improvements, support, and cooperation. The Branch provides the Agency's Management Control oversight (A-123), cooperative agreements and grant reviews and recommendations in accordance with Office of Management and Budget, and the Code of Federal Regulations; ensuring that any material weaknesses are identified and corrected. RAB also provides agency liaison assistance with the Office of the Inspector General (OIG) and Government Accountability Office (GAO) audit groups by developing Agency-wide responses to audit findings and ensuring audit recommendations are implemented.

4. What we do:Ensure quality management of Cooperative Agreements and Grants

5. Review Planning • Annual Risk Analysis • Document Review Preliminary Process • Cooperative agreements and amendments • Budget Categories (424/424A) • Request for advance or reimbursement (SF 270’s ) • Financial Status Reports (SF 269’s or 425) • Additional Planning • Ensure Notice of Award is properly signed and dated with amount, and accounting codes on the last page. • Review prior audits/tracking system reports for list of prior findings. • Get Payment History for FFIS/BRIO for each quarter of the review period • Notification of program personnel of upcoming review, dates, and cooperator contacts. • Identify program personnel that will participate in the review. • Contact the Cooperator regarding the scheduling of the review, scope, purpose, and review team members. • Establish a date and time for entrance and exit conferences.

6. Review Planning Cont… • RAB provides a follow-up and notification letter to the cooperator restating the initial contact information and a list of documents that we will Review: • Documents Reviewed • All SF-269’s submitted with general ledger summary report from the cooperator’s Accounting system that ties to the reports. • A copy of the general ledger for the cooperative agreement funding periods, by object code • Copies of their drug-free workplace agreement • Copies of their policies on contracting/procurement, travel and personnel • Copies of all workplans and achievement reports • Copies of all indirect cost rate agreements • List of property inventory • Files of all contracts • Copies of fringe benefit agreements

7. Review Planning Cont… • Site Visit • Entrance Conference with Cooperator to cover the following: • Timeframe for overall Review (the Review does not end when the site visit is completed) • Scope of Review • Ask for a brief overview of the program • Ask for a brief overview of their accounting system • Discuss any problems the cooperator may be having • Have there been difficulties in managing the program • Get contact people names for on-site assistance • Schedule exit conference • Agreement Review Package • Ensure all forms are present and signed • Check debarment/suspension list for cooperator/subgrantees/contractor

8. On-Site Review Cont… • Financial Review • Analyze the capabilities of the cooperator’s accounting system • Review of SF-269 reports • Check timelines of report submission • Check accuracy of report • Check balances with General Ledger Summary • Ensure the report balances from prior SF-269 matches • Does the submission match their accounting system (cash/accrual) • Reporting period in agreement with funding period in Notice of Award, ensure there are no skipped or overlapping periods • If there were cost sharing on SF-424A, is their portion reported on SF-269 • If indirect costs are reported, match to their indirect cost agreement • Ensure that program income was reported/applies properly as per the Notice of Award

9. On-Site Review Cont… • Review of SF-270 reports • Were funds advanced or reimbursed – if advanced check to see if they were quickly disbursed or if there were balances on hand • Is the request properly approved • Was payment made on a timely basis and correct • Review of General Ledger • Review for inconsistencies • Request detail for a sampling of charges to program – be sure to include any large transfer into the account, pull a number of travel-related charges, vehicle maintenance charges and gasoline and equipment purchase. • Ensure that all travel advances have been cleared • Ensure that all spending was within funding period • Check to ensure that equipment purchased was approved in the Notice of Award and that all equipment in general ledger is on inventory ($5,000 + unless specified directly in cooperator policy.

10. On-Site Review Cont… • Budget Review • Were budget increases/decreases documented with changes in work and financial plans? • Compare budget with actual > if direct object classes changed by more than 10% did ADODR approve? • If there are cash accounts – balance account and check controls? • Program Review • Does the hiring policies provide for competition? • Is cooperator in compliance with the Drug-Free Workplace requirements? • Procurement/Contract Analysis • Does policy require lease/purchase analysis? • Is there a system for bids, if so, check files on a few items? • Does policy promote use of minority/small businesses? • Are files maintained for all purchases? • Does policy contain ethics provisions? • Ensure that cooperator/sub contractors are not debarred or suspended

11. On-Site Review Cont… • Inventory Review • From past budgets, check to see if equipment was approved for purchase then check to ensure that it was inventoried - Ensure inventory includes: * description of item * acquisition date and costs * source (%) of funds used to purchase item * location and disposition (date and recovered amount) • Program Achievement if required by agreement • Does workplan have measurable goals? • Are annual reports written describing achievements?

12. On-Site Review Cont… • Program Liability • Identify potential areas where agency may have liability such as application of pesticides or other chemical, damage to private property, use of automobiles, aircraft environmental concerns. • Interview ADODR and ROAR to determine actions taken to reduce potential liability. • Read agreement to identify sources of liability. • A-133 Single Audit • Check the A-133 Single Audits for findings pertaining to USDA programs to determine if any findings apply to program under review and resolution. • APHIS Program Management Review • How adequate is oversight of program?

13. On-Site Review Cont… • Exit Conference • Discuss Findings • Open discussion on how the program can operate more affectively. • After the Site Visit • Complete work papers • Write Report • Report distribution and filing

14. Thank you Aretha.L.Johnson@aphis.usda.gov