“bridging the gap” budget and finance workshop january 2006
TRANSCRIPT
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“Bridging the Gap”Budget and Finance Workshop
January 2006
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AGENDAIntroductions
Fiscal Reimbursement and Reporting Manual
Questions and Answers
Break
Budgets and Budget Development
Questions and Answers
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FINANCE
PROGRAM
Contractor
VendorsSubcontractors
Finance Staff
Executive Director
Communication County Auditor/Controller Office
Controller
County Commissioners
Program Officers
EvaluationARC
CS&O
ChiefProgram Officer
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INTRODUCTION
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INTRODUCTIONDesignated Responsibilities
• Contractor– Submit Timely & Accurate Reports– Open Dialogue with staff– Conduct Fiscal & Administrative Contracts
Management
• KCCFC (AKA First 5 Kern)– Provide Technical Assistance (as needed)– Open Dialogue with the Contractor– Process Reports in a timely manner
• THE PROCESS IS A “PARTNERSHIP”
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INTRODUCTIONDesignated Responsibilities
• General Agreement (AKA Contract)– Foundation & Basis for all responsibilities
• Scope of Work• Budget & Narrative• Insurance• Evaluation & Data Analysis• Sustainability• Working within Legal Parameters
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INTRODUCTIONReporting
• Quarterly Reports– Due 30 days after Quarter Ending
• QPR (Copies for KCCFC & ARC)• Fiscal Reimbursement Claim & Backup
• Follow-up– KCCFC reserves the right to request further
information on all reports submitted– KCCFC will communicate with contractors if
there are changes significant changes to the Claim
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INTRODUCTIONFiscal & Program Management
• Sound Fiscal Practices & Internal Controls
• Effective Project Implementation
• Adequate reporting systems for project evaluation at all levels
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INTRODUCTIONReturning Contracts & Amendments
• Contract Advance (Conditions)– Contract is fully executed & On-file– Certificate of Insurance is complete & lists
KCCFC as “additionally insured”
• Amendments
• Revisions
• Timeliness
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ACCOUNTING &REPORTING
REQUIREMENTS
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ACCOUNTING & REPORTINGGeneral Provisions
• All contractors will submit claims for reimbursement of actual expenditures incurred and paid
• Cash basis
• And follow Generally Accepted Government Accounting Standards
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ACCOUNTING & REPORTINGRecord Keeping
• Maintain records for 3 years
• Claims will be paid when all backup documentation is provided and is logical
• Staff is permitted to request all program related records and backup documentation (on a need-to-know basis)
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ACCOUNTING & REPORTINGAudits & Auditors
• All contractors will have an annual audit– Audit recommendation to F5K– Audit policy developed by team of accountants
and auditors
• Must be performed by a:– Licensed CPA
• Must be submitted within 150 days after the close of the fiscal period covered
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Fiscal Management
Program
Management
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
• Inventory Control– Maintain on an annual basis (minimum)– Rule of thumb “items that have a shelf life of
more than one year”
• Retention & Disposal of Goods– KCCFC will not be responsible for the disposal
of hazardous materials (i.e. televisions, computers, computer screens, medical waste, paint, etc.)
– Refer to terms of agreement
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Operating Funds• Minimum of 3-months of Operating Capital
– Contractors are obligated to pay employees & vendors despite any payment delays
• 20% Advance– Contractors can request a 20% advance in writing
• Recommend submitting advance request by June 1st• 20% Advance will be reclaimed in quarterly increments
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Operating Funds
Allowable PaidAdvance $ - $ 20,000.00
$ 10,090.00 $ 8,072.00 $ 28,612.62 $ 22,890.10 $ 45,224.02 $ 36,179.00 $ 24,163.36 $ 10,858.90
Total $ 98,000.00 $ 98,000.00
First QuarterSecond QuarterThird QuarterFourth Quarter
4th Quarter Claim and Year-End ReconciliationFirst Five Project
Award Amount $100,000Description
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PROGRAM MANAGEMENT & FISCAL EXPERTISEContract Amendments
• Contract Amendments – Contract Terms can ONLY be changed by
a contract amendment• Needs to be approved and on-file• (HIGHLY DISCOURAGED)• Requests are to be made to the Executive
Director Steven G. Ladd in writing
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Back to Basics• Basic Rule
– Contract Funds MUST be spent on REIMBURSIBLE costs for ELIGIBLE services.
• Contractors should be familiar with their:– Contract– Conditions for Approval– Scope of Work– Budget & Narrative (for allowable costs)
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PROGRAM MANAGEMENT & FISCAL EXPERTISEReporting Deadlines
• Reporting Timelines– All reports must be submitted on a
quarterly basis
– Due 30 days after Quarter Ending date
– Late or incomplete reports will experience delays in their reimbursement
– Contact the finance staff if there are difficulties
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Cost Allocation Plan (CAP)• Definition
– Identifies shared expenses between programs & funding streams• Salaries• Operating Costs• Etc.
• CAP is NOT an Indirect Plan• Contact your CPA for more info
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PROGRAM MANAGEMENT & FISCAL EXPERTISE
Accrual vs. Cash Accounting• “Cash Basis”
– Costs are reimbursed on debt already paid by the contractor.
– Accrued costs or encumbrances are paid when the contractor has received the goods/services and payment is rendered
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REVENUE/IN-KIND/OTHER SOURCES OF INCOME
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REVENUE/IN-KIND/OTHER SOURCES OF INCOME
Disclosure of Income• Contractors must report all sources
of income that have been generated as a result of Prop. 10 funding– Grants– Fees– Donations– Endowments– Etc.
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REVENUE/IN-KIND/OTHER SOURCES OF INCOME
Disclosure of Income• Purpose of Income Disclosure is to:
– Demonstrate Sustainability– Agency Leveraging Capacity– Avoid double billings– Ensures fair payment of costs by grantors (across
funding streams)– Accurate reflection of Cost-Effectiveness & Cost-Benefit
Analysis– Reportable to the state in the annual report
• Non-Collection of Income
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INDIRECT COSTS
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INDIRECT COSTSDefined
• Most Basic– Costs not readily identified to any one specific program
or line-item
• Administrative Costs are included in indirect cost allocations– Example:
• Non-Specified Program Supervision• Non-Specified Human Resources• General Agency Audit Costs
• Categorically Funded Positions– Example:
• Positions working with the project but fully funded by other sources (usually due to legal requirements)
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INDIRECT COSTSLimits
• Contractors can claim their approved agency rate (with a maximum of 8%) of the total Operating & Personnel contract amounts
• Indirect Rate must be on-file
EXAMPLE 1:
Approved Rate (by CPA) is 14.70%
Total Operating & Personnel costs are $100,000.
Maximum Allowed for Indirect is 8%
Total Indirect Allowed is $8,000.
Total Contract Amount $108,000
EXAMPLE 2:
Approved Rate (by CPA) is 6.70%
Total Operating & Personnel costs are $100,000.
Maximum Allowed for Indirect is 6.7%
Total Indirect Allowed is $6,700.
Total Contract Amount $106,700
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INDIRECT COSTSReporting
• Request for Payment Form– Identify Indirect Costs and the calculated rate– Indirect Cost amounts exceeding the approved
budget amount will be deducted from the Claim as non-reimbursable costs
• If the indirect changes during the contract period, the approved budget amount will be used for the duration of the contract.
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REIMBURSIBLE VSNON-REIMBURSIBLE
COSTS
SupplementingNew ProgramsExpansionEarly Screening
SupplantingNon-Budgeted Items>10% overagesInterest, Bank Fees, Etc.
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FINAL REPORTS
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FINAL REPORTSInformation
• Final reports includes year-end reports are due within 60 days of the close of the project or reporting period
• Once a final claim has been received and filed the encumbrance is closed and the remaining funds are no longer available
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CLOSURE NOTIFICATIONS
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CLOSURE NOTIFICATIONS Information
• Contractor must notify us when closing any KCCFC project– Written Notification to the Executive
Director Steven G. Ladd
– Contractor has 60 days from the last day of service to submit all documentation
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