Ohio Commission on Minority Health Grantee Orientation

1. Ohio Commission on Minority Health Grantee Orientation

2. Angela C. Dawson, Director 614-466-4000 Angela.Dawson@mih.ohio.gov Reina Sims, Program Manager 614-466-4000 Reina.Sims@mih.ohio.gov Commission Staff

3. Commission Staff • Venita O’Bannon, Fiscal Specialist • 614-728-4348 • Venita.O’Bannon@mih.ohio.gov • Sheronda Whitner, Executive Assistant • 614-466-4000 • Sheronda.Whitner@mih.ohio.gov

4. Agenda • I. Overview • II. Getting Started • III. Financial Management • IV. Financial Reporting • V. Performance Information & Monitoring • VI. Closeout

5. I. Overview

6. Pre-Budget Conditions • In order to receive funding, all applicants must address the special conditions assigned to their Acknowledgement of Terms (AOT). Failure to provide this information will result in not receiving an approved budget.

7. II. Getting Started

8. Acknowledgement of Terms (AOT) Agreement • Project Number (to be used on all correspondences and grant forms) • Agency Name/Address • Agency Executive Director • Telephone Number • Amount of Award • Budget Period • Compliance • Special Conditions

9. Award Agreement, cont. • Budget period • Listed on the AOT- start and end dates • Date to obligate all funds and complete all programmatic activity • Cannot spend funds outside of this timeframe • Closeout deadline • Listed on the AOT document- 60 days after the end date • Date to expend all funds, pay all outstanding bills, and submit final paperwork

10. Terms of the Award • Required grant activity • Quarterly Reporting • General provisions • Notification of change in circumstances • Revision of grant funds • Audit

11. Signature Authority • Grantee signs all documents; or • Signature authority waiver • Person • Scope • fiscal reports, programmatic reports, or all aspects • Duration • Signature of Grantee Executive Director • Submit waiver as soon as possible and before quarterly reports are due

12. Operational Guidelines • Recruitment and placement of project staff and/or contract staff must be completed by the end of the 1st quarter • Staff hired, funds obligated, activities begun • If not, letter must be submitted to the Commission • Reason for delay, steps taken, expected start date

13. Operational Guidelines Cont. • Operational within 90 days • Submit second letter • Commission may cancel award at 90 days

14. Non-compliance - Actions • Suspend payments • Cancel award • Suspend or cancel other Commission funds Each project is an investment made by the Ohio Commission on Minority Health to assist Ohio in meeting State program goals to facilitate health promotion, education an disease prevention. OCMH is required to make good investments in our role as the State Administrative Agency.

15. III. Financial Management

16. Financial Management • All recipients are required to: • Establish & maintain a separate and adequate system of accounting and internal controls • Accurately account for both General Revenue Funds (GRF) and 20% of agency funds and/or resources are received from other sources other than grants awarded by the Commission

17. Budget Tips • Monitor budget situation throughout grant award period • First quarter • Hire staff, order lease/rental of equipment • If an adjustment is needed, it is usually apparent by end of first quarter

18. Budget Revision • Administrative cost once approved maybe decreased but not increased. • Project expenditures are not permitted when the budget revision is submitted after the expenditures is made. • Submit budget revision a timely manner. Per administrative rules, the budget revision must be submitted 45 days prior to the end of the quarter

19. Budget Revision • Prior approval required • Moving money between categories • Changes that affect the scope, regardless of amount involved • All personnel changes • All lease/rental of equipment • Reallocating money within a category • Moving money into a category previously $0 always changes the scope

20. Program Revisions • Prior approval required • Change in project location • Change in scope and objectives • Extension of project period – not routinely granted • Extension of liquidation period (closeout deadline) • Notify the Commission of change • Project director • Change of contact information • Address, phone number, and email • Person filling a prior approved position

21. Program and Budget Revision Approval • Request by project • In writing – Provide detailed budget justification narrative • Signed by authorized officials (Executive Director and Fiscal Officer • Due at least 45 days prior to end date • Approval by Commission’s Executive Director • Review of project compliance • Review of justification and submission date • Allow two weeks for processing • Decision made in writing

22. Adjustments: Monitoring • If prior approval not obtained • Commission will determine if an adjustment changed the scope during monitoring • Adjustment could be denied and funds returned to the Commission • If not certain whether adjustment will result in change in scope, seek prior approval to be sure

23. IV. Financial Reporting

24. Quarterly Financial Report (QFR) • Submit QFR to the Commission via email and US mail by due date • Fiscal and programmatic quarterly report information should arrive together • Based on the review of the report, Program Manager and Fiscal Specialist • Approve payments & make monitoring recommendations

25. Quarterly Subgrant Report (QSR) Due Dates • Reporting Periods: • 1st quarter = July 1st – September 30th due October 15th • 2nd quarter = October 1st – December 31st due January 15th • 3rd quarter = January 1 – March 31st due April 15th • 4th quarter = April 1st – June 30th due July 15th _If funded for year two funding Audit is due October 30, 2017 • Send one signed copy via email and the original via US Mail • Failure to submit on time will result in an out of compliance letter being sent

26. Payment Information • If you are currently not in OAKS, the statewide accounting system you will need to submit: • W-9 form http://www.irs.gov/pub/irs-pdf/fw9.pdf • Vendor form (OBM-5657) http://ohiosharedservices.ohio.gov/Vendors.aspx?Page=2 • In order to receive an EFT reimbursement payment you will need to submit: • EFT direct deposit form (OBM – 1234) • http://ohiosharedservices.ohio.gov/Vendors.aspx?Page=2

27. Payments on Expenditures • Quarterly payments • Report actual expenditures on QFR • Reimbursement provided

28. How to Avoid Common Errors • Report grant funds received from the Commission quarterly and year to date • Report the total grant expenditures quarterly and year to date • Report outstanding obligation quarterly and year to date. If personnel, break out salary and fringe benefits • Use correct period ending date • Use correct grant number • Obtain appropriate signature and submit originals • The approved budget is not correct on the QFS

29. Payment Timetable • Commission Fiscal • Reviews of reports on first come first serve • 10 business days • QFRs do not submit fiscal backup documentation • Back up documentation will be requested at when desk top monitoring is performed or at on-site visit

30. Incorrect Reports • Revised report will be required • Commission cannot make the changes • Liability issue for audit • Requires new signature – takes time and delays the payment • Will raise red flags for monitoring/audit • Will raise concerns during continuation review • All revised reports must be hard copies with original signatures

31. V. Performance Information & Monitoring

32. Purpose & Benefits • Purpose • Compliance oversight • Assist with funding recommendations • Identify areas for technical assistance • Benefits • Promotes interaction between OCMH and the Grantee Agency • Performance Reports generate useful data

33. On-Site Programmatic Monitoring • Tell your story • Project progress • Adhering to approved grant application? • Meeting objectives? • Following timeline? • REEP Evaluator • Technical assistance • Necessary follow-up

34. Fiscal Monitoring

35. Fiscal Monitorings • Provide technical assistance to local and/or state agencies for financial grant-related issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. • Identifies problems and prepares questions to pose during monitoring.

36. Fiscal Monitorings (cont’d) • Documents reviewed include: • Bank Statements and Reconciliations • Receipts/Deposits • Other sources of agency support • General Ledger Reports • Payroll Registers (Timesheets and Activity Reports) • Consultant Contracts • Consultant Payments (Invoices and Timesheets) • Rent equipment/Supply receipts • Travel Costs (Mileage Reimbursements, Lodging) • Canceled Warrants, Checks, Invoices and Purchase Orders

37. Preliminary Planning • Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring review. • Site Confirmation Letter is sent email and U.S. mail (Once date is set up) to the grantee confirming the date and time of the fiscal monitoring. • Focus is to ensure accuracy of the QFR preparation by reviewing the Expenses, General Ledger and Budget approved by the Commission and comparing those documents for compliance.

38. Fiscal On-Site Visit • Compliance Monitors review and analyze records, operations, organization, systems and controls, and interviews employees involved in program being monitored as well as fiscal review of backup documentation submitted with quarterly fiscal reports (QFR). • Meet with appropriate representatives to be involved in monitoring. • Attend meetings to review/participate in discussion of findings with appropriate representatives of entity being monitoredat the conclusion of the site visit.

39. Fiscal On-Site Visit (Cont’d) • Prepare final monitoring report summarizing work performed, findings and recommendations to improve/resolve deficiencies or non-compliance.

40. Fiscal On-Site Visit (Cont’d) • Payroll Testing is a double check to verify accuracy of the payroll payments made to all employees that are listed on the grant. • Verify the personnel, hours worked, pay rates, and ensure that the total payroll is paid accurately. • Verify expense ledger (as provided by the subgrantee), the bank statements, pay stubs, and timesheets of all employees stated in the grant. • Any discrepancies are noted and if further action is necessary, it is outlined in the Corrective Action Letter.

41. Field Work (Cont’d) • Expenditures Testing is used when there are consultants, travel, supplies, other costs, and/or administrative costs on the grant. • Verify various expense “testing” to ensure accuracy of expenses being reported on the grant, as well as to ensure that allowable costs are being reported within the guidelines of the approved budget. Any discrepancies are noted and if further action is necessary, it is outlined in the Corrective Action Letter.

42. Back-Up Documentation

43. Summary Sheet Breakdown • Breakdown from Summary Sheet: • Personnel Costs: (A) $10,267.69 + $1,115.69 + $42.66 = $11,426.04 (which matches QFR Personnel Costs) • Travel Costs: (B) = $74.40 (which matches QFR Travel Costs) • Supply Costs: (C) = $90.00 (which matches QFR Supply Costs)

44. Follow-Up

45. Recommendations • After fiscal on site visit work is complete a Corrective Action Letter is compiled and sent to the agency. The letter is usually sent within ten business days of the Onsite Monitoring. • Letter identifies problems and prepares recommendations as a result of the fiscal monitoring: • States personnel met with at the Onsite Monitoring. • Explains items reviewed during the monitoring. • What observations were made during a review of the financial documents and all other related financial information to each grant being monitored. • Recommendations section stating what corrective action needs to be taken and if a 30 day follow-up will be required. • Letter is designed to improve/resolve deficiencies or non-compliance of the grant fiscal monitoring.

46. Follow-Up • If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide correction action in regards to the recommendations stated within the monitoring letter. • Contact subgrantee and communicate with the agency leadership to plan for the follow-up fiscal monitoring review. • Agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring recommendations. • After the initial fiscal monitoring, a follow-up courtesy call/email may be necessary to answer any open items and/or questions regarding the recommendations letter. • If corrective action is not implemented within the 30 days, all grant funds will be FROZEN.

47. Corrective Action Plan

48. Why Corrective Action Plan? • Corrective action plan is outlined in the recommendations letter when a 30 day follow-up is necessary. • It is designed to improve/resolve deficiencies or non-compliance issues related to the grant monitoring(s). • Assists the agency from having non-compliance action taken against them.

49. Timeline and Corrective Action • The agency is given 30 days from receipt of the recommendations letter to provide a corrective action plan in regards to the recommendations stated within the recommendations letter. • The agency must demonstrate at the 30 day follow-up monitoring that corrective action has been taken and that the recommendations outlined in the monitoring letter have been satisfactorily met.

50. Corrective Action PlanExamples • Continue to use proper care when filing paperwork in the grant files/binder. • Continue to provide detailed backup for the amounts reported on the QFR, and referencing where the supporting documentation is located. • The OCMH grant activity could be verified in the financial accounting system maintained by the agency showing all related financial activity related to Commission grant funds. • An Expense Ledger should be available to detail out all expenses year-to-date. • There is no “Separation of Duties”; Mr.Mrs. XXX XXXX solely handles all financial aspects of the grant(s) award by OCMH.