How to Successfully Manage CJD Grants

1. How to Successfully Manage CJD Grants

2. 5 Steps to Successful Grant Management Step 2. Understand Grants Monitoring Step 1. Know the Basics Step 3. Properly Close Out the Grant Step 4. Follow the Rules and Regulations Step 5. Use Sample Forms

3. Step 1. Know the Basics

4. Communicating with CJD Email is Preferred (firstname.lastname@governor.state.tx.us) Include Grant Number in all Correspondence CJD Main Number (512) 463-1919 Notify CJD Immediately If You Get a Public Information Request

5. Authorized Official (AO) Appointed or authorized by the governing body.

6. Financial Officer (FO) Must be the chief financial officer for the grantee agency.

7. Project Director (PD) Responsible for the day-to-day operations of the project including programmatic reporting.

8. Grant Award and Acceptance Failure to accept your award within 45 days could result in forfeiture of grant funding.

9. Award Cancellation

10. Payments All funds must be paid through direct deposit.

11. Links to Vendor Set-up Form • Texas Application for Payee Identification Number – http://www.window.state.tx.us/taxinfo/taxforms/ap-152.pdf • Vendor Direct Deposit Authorization Form – http://www.window.state.us/taxinfo/taxforms/74-176.pdf • Internal Revenue Service Form W-9 - http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3

12. Financial Status Reports (FSR)

13. FSR Quarterly Due Dates

14. eGrants Financial Management • All Financial Status Reports must be submitted through eGrants. • For a step by step guide to creating and submitting FSRs see the eGrantsFinancial Management Guide.

15. Liquidation Date

16. Programmatic Reporting • Required by CJD • instructions for accessing the PPRI website http://cjd.tamu.edu/ • user name/log-in and password • number and types of reports required for the applicable fund source • Collected by Texas A&M Public Policy Research Institute (PPRI) • Reporting packets include:

17. Vendor (Financial) Hold

18. Grant Adjustments Must be submitted through eGrants and Certified by the Authorized Official 10% of Cumulative Expenditures can be moved without CJD’s Prior Approval (except within Equipment and Indirect Costs)

23. Approved Budget Categories

24. Personnel • Time/Activity Reports • Case Numbers for Grant-Funded Law Enforcement and Prosecution Personnel • Volunteer Activities • Signed Timesheet • Salaries Consistent with Local Policy • Backfill of Existing Positions • Overtime

25. Contracts in Writing • Consistent with Texas Contract Law • Contract Monitoring Documentation • Compliance with Agency Procurement Guidelines • Invoices for Contract Deliverables • CJD-Prescribed Procurement Questionnaire

26. Employee Travel and Training Only • Comply with Agency Travel Policies or State Travel Policies • Maintain Travel Log and Travel Receipts • Pre-Approval of Out-of-State Travel NOTE: Expenses for Outside Trainers go under the Contractual Budget Category .

27. All purchases MUST be pre-approved by CJD • Must maintain Inventory • Procurement Questionnaire for purchases in Excess of $100,000 • Must have invoices to support purchases • Must be used for the purpose for which it is purchased • All changes to Equipment Line Items (including the number of items) MUST be approved by CJD

29. Related to the daily operation of the CJD grant • All costs MUST be Pro-Rated • Rent or Lease MUST include cost/sq. ft. and the number of square feet • Documentation (ex. receipts, invoices) MUST be maintained • Includes small equipment

30. When allowed, the standard rate is 2% of CJD- funded direct costs (NOTE: this is NOT the CJD Award Amount) • Cognizant agency approval letter required for requests in excess of 2% • ALL rates are negotiable

31. Cash or In-Kind • Held to Percentage in Approved Budget • Federal Funds CANNOT be used to meet match requirements

32. Step 2: Understand Grants MonitoringRebecca Martinez, CFE, CGAP, CIADirector of CJD’s Grants Monitoring

33. What You Need to Know Grants Monitoring Overview Reviewing & Testing Recurring Findings Technical Assistance Questions & Answers

34. Grants Monitoring Overview What is grants monitoring? “The process of reviewing grant documentation to ensure that grant funds are used for authorized purposes.”

35. CJD Monitoring Consists Of: • Desk reviews • Site reviews • Grantee contact visits (informal) • 1st year COG Checklist Analyses (site reviews and phone contact)

36. Annual CJD Monitoring Tasks… • Perform a risk assessment of grantees. • Develop a monitoring schedule for the year. • Carry-out monitoring schedule (Plan our work & work our plan.) • Monitoring schedules are subject to change. • In most instances, CJD will provide a 2 week advance notice of the reviews to grantees and COG planners.

37. Risk factors and risk rank • Funding: The more money awarded, the higher the risk of misspent funds ($10,000 vs. $1,000,000). • No. of grants: The greater the number of grants awarded, the higher the exposure to non-compliance of requirements. (1 grant vs. 7 grants) • Based on risk factors, grantees are assigned a risk rank: high risk, medium risk, or low risk.

38. Monitoring Plan • A Monitoring Plan is developed from the risk assessment report. • Grantees in each level (high risk, medium risk, low risk) are reviewed. • Grantees are scheduled for review on a rotation basis.

39. CJD Desk reviews • Notify grantee of upcoming desk review. • Gather and analyze grant documents from the grantee. • Call grantee and conduct a phone interview regarding issues noted. • Complete examination and issue a report. • Follow-up with grantee on issues.

40. CJD Site reviews • Site reviews are scheduled with the grantees. Dates, times, and locations are set. • A notification letter is sent to the grantee. It includes a list of documents to be examined. • Reviews are conducted at the grantee’s office. Reviews may last from 2 to 5 days, depending on the size and complexity of the grant. • Monitors continue the analysis of support documentation and calculating of expenses, back at CJD. • Written reports of the review are prepared and submitted to grantees for response.

41. Fieldwork (while on-site) • Entrance conference. • Examine documents, select samples, test transactions, discuss issues with grantees. Make copies for analysis later. (Monitors time is very limited while on-site.) • Exit conference.

42. Reviewing & Testing (of support documents for budget categories) • General Grant Administration: FSR, program income, Single Audit • Personnel: payroll, personnel activity reports, timesheets • Contractual Services: contracts, contract monitoring, procurement questionnaire • Travel:invoices, receipts, training certificates • Equipment Inventory: inventory list, physical observation, procurement questionnaire • Construction: pre-approval, change orders • Supplies: invoices, receipts • Indirect Costs: 2% limit, cost allocation plan • In-Kind or Cash Match: what is used as match, how much has been provided, volunteer timesheets • Program Issues: specific to the unique program, program records

43. Further Analysis • Monitors continue to examine and analyze documents back at the CJD office. • The further analysis of the grantee’s documents may result in additional findings. If this occurs, the grantee will be contacted to discuss the finding and may be able to clear the issue with supplemental documentation or information. • All findings will be presented in the report and the grantee will have an opportunity to respond.

44. Reporting • Issue Draft report (includes requirements, findings, and recommendations). Grantee has 15 days to respond with corrective action. • Receive grantee responses & corrective action. • Analyze responses. Issue Second draft report, if necessary. Reports will include the grantee’s responses. • Receive grantee responses & corrective action • Analyze responses. Issue Final report. • (If necessary) Receive grantee responses and corrective action. • Issue Closeout letter. Review is complete.

45. Recurring Findings From Reviews

46. General Administration(recurring findings) • Single Audit issues • FSR/PPRI reports submitted late • Program Income not reported (from seizures, forfeitures, other)

47. Personnel (recurring findings) • Time sheets lack employee’s or supervisor’s (or both) signatures. • Actual activity not documented. • Volunteers’ time not documented same as grant-funded employees. • Overtime paid, without prior CJD approval, or not following approved Overtime Policy.

48. Contractual & Professional Services (recurring findings) • Procurement Questionnaire for contract exceeding $100,000 not completed and submitted to CJD. • No written contract(s) for Contractual expenses. • Grantee did not monitor (or have evidence of monitoring) the contract. No contract monitoring tool was used to document the grantee’s oversight of the contract. • Documentation of procurement not maintained.

49. Travel & Training (recurring findings) • Requisition or voucher documents not completed. • Support documents (receipts, invoices, etc.) not available. • Purchase of unallowable items (gifts, alcoholic beverages).

50. Equipment (recurring findings) • Procurement Questionnaire for purchases exceeding $100,000 not completed and submitted to CJD. • Incomplete/non-existent inventory list. • Grant–purchased items not identified on the inventory list. • Equipment items not properly tagged. • No procurement policy; competitive procurement documents not maintained.