Performance and Certification Standards:
Statewide Policy Implications
November 7, 2002
Dick Hall – Capital Area Asset Building
Corporation (CAAB)
Jan Huneke – Corporation for Enterprise
Development (CFED)
Seven Basic Principles
1. IDA Programs should be accountable to accountholders and all stakeholders
2. The certification system should help the field by fostering high quality and attracting funding and other partners without suppressing innovation
3. The system should be flexible to allow change and refinement and to recognize diversity in the field – encourage learning and change in the field and not locking in current practice
Seven Basic Principles
4. The field is young and much is unknown about best practice and as a result the standards should not be narrowly prescriptive
5. The system will work best if it is voluntary
6. The system should be affordable
7. The system should facilitate the start of an IDA program by allowing commitment to the principles of good practice as a basis of provisional certification
History Undertaken to strengthen field and foster growth
Initial draft presented at 2000 IDA Conference 600+ attendees’ feedback solicited
Diverse national task force assembled Conference feedback examined and incorporated into 2nd draft
2nd Draft widely shared with comments solicited Posted on IDANetwork; 3,000 people notified via Assets Newsletter; direct mailing to 1,250
stakeholders
Task force processed additional feedback, issued subsequent drafts – current Spring 2002
Purposes: Protect the promisePromote qualityIdentify quality programs Encourage innovationIncrease investment
Level: Basic - Not best practiceTypes - Provisional 0 - 12 months and
Operating 12 months +Duration - 3 years Measurement - 6 areas of operation
Quality Standards
Full Disclosure Agreement - states all program conditions expectations, roles and responsibilities of program and participant
Uses: FlexibleMatch Adequacy: Sufficient to leverage purchase
Cost of assetRealistic saving goals
Match Approval: Written approvalTimely manner
Security: IRA eligible, insuredStatements: Quarterly - savings, interest, match
Accounts
Match Funds: Equal to 80% maximum contingent liability
Room for attrition and unmet goals
Program Funds: One year banked or committed and a fundraising plans for
future and lost funding
Funding
1. Adequate Staff
Recommended:
1 Staff per 50 accounts
2 Staff per 100 accounts
Additional FTE per each additional 100 accounts
Required:
Staffing plan that reflects staff coverage for all phases of program implementation
Collaboratives, partnerships, or multi-site roles of organizations included
Staffing
2. Experience/Training
Either one year of prior experience in IDA program management or training and/or formal TA
3. Networking/ Learning
Learning Conference
Learning Network (www.idanetwork.org)
Other conferences, meetings, listserves
Staffing
Organizational Stability
1. Organizational Experience
Experience serving similar populations
Fiscal Agent unqualified audit by CPA
Less than 2 years old without audit, should contract for fiscal agent services
2. Partnership/Collaborative Agreement
Written agreement with goals, roles and responsibilities
3. Written IDA Program Plan
Written program plan updated annually
Should address all program issues
Should be accessible to all stakeholders
4. Written Policies and Procedures
Day to day operations, ie. income guidelines, enrollment, handling of missed deposits, etc.
Must be provided to all staff
Organizational Stability
1. Basic Personal Financial Management Training
Training that covers all aspects of financial literacy as specified
2. Asset Specific Training
Training on homeownership, business start- up or post-secondary education/training
Asset Training
1. MIS RequiredMonitor and report on demographics,
savings, asset purchases and financial and operational aspects of the Program. (MIS IDA or equivalent)
2. Annual ReportingWritten annual reports to public and Certification Review Board on
number of accounts open, total and average monthly savings, etc. using standard format
Management Information System and Reporting
Certification
Certification Website
“Yellow Book” Auditor
Audit Module
Back-Up Documentation
Certification Review Board
Process
Re-Certification
Annual Reports using Audit forms demonstrating consistent maintenance of quality standards
Filed with Certification Review Board
De-Certification
Annual Report suggests decline in standards
Corrective Action Plan should accompany the filing of a new annual report within 60 days
Process
Documentation and Files
Full Disclosure Agreement
Partnership/ Collaborative Agreement
Policy and Procedure Manual
Staffing Plan
Participant Handbook
Comprehensive Proposal/ Business Plan
Program Budget
Bank Agreement
Audit Process
Application Form and Fee ($200.00 )
The Auditor
“Yellow Book” Auditor - Grant Thornton
Review documentation, files, and staff interviews
Auditor Feedback
Objective observation of program
Audit Module reflecting evaluation of each standard
Audit Memos
Management Letter
Audit Process
Certification Review Board
Submission of Management Letter to an objective body made up of key stakeholders
Independent decision making body
Corrective Action Plan
If management letter reflects deficiencies, program can decide not to submit to the Board
Develop a Corrective Action Plan addressing deficiencies
Auditor may review changes when implemented and issue a memo on the Corrective Action Plan indicating compliance with standards
Resubmission to Certification Review Board
Audit Process
Certification Award
Issued by Certification Review Board
Good for three years supported by positive annual reports
Certified programs will be published with list of endorsements on-line and in Asset Newsletter
May be displayed at Program site
Audit Process
Next Steps
1. Pilot Program - Closely monitored pilot with 25 sites
2. Modify and Improve - Standards and Process
3. Develop list of endorsements
4. Develop Certification Website
5. Hire staff to manage ongoing implementation and improvement process
6. Full Scale Launch to the Field