Changes for Fiscal Year 2017: Grant to Provide Volunteer Taxpayer Assistance Services June 22, 2016 Presented by: Sarah Bjorklund Outreach & Education Income Tax & Withholding Division

Sarah Bjorklund Outreach Leadworker Sarah Bjorklund is the leadworker of the Outreach Team within the Income Tax and Withholding Division at the Minnesota Department of Revenue. She helps our Outreach Staff effectively reach and educate their respective communities on Minnesota tax laws and helps administer the grant to provide volunteer taxpayer assistance services.

Disclaimer This presentation is for educational purposes only. It is meant to accompany an oral presentation and not to be used as a standalone document. This presentation is based on the facts and circumstances being discussed, and on the laws in effect when it is presented. It does not supersede or alter any provisions of Minnesota laws, administrative rules, court cases, or revenue notices. If you have any grant related questions, contact us at volunteer.grant.mdor@state.mn.us or 651-556-3052 or 1-800-818-6871 (toll-free).

Today’s Agenda Grant overview Grant application process Reimbursement of grant funds Deadlines and due dates Questions

Grant Overview What is the grant to provide volunteer income tax assistance services? Who qualifies? What are the goals of this grant? The Commissioner of Revenue has authority to issue grants totaling $800,000 for the 2016-2017 biennium. The Request for Proposals (RFP) that will be made available July 1 is for $400,000. Volunteer Taxpayer Assistance Services are accounting and tax preparation services provided by volunteers to low-income and disadvantaged Minnesota residents. This includes filing federal and state income and property tax refund returns, and representing qualifying residents before the department and IRS. Low income – people making less than $54,000 annually- follows the Earned Income Tax Credit guidelines Disadvantaged – people with limited English-speaking ability, 60 years and older, or disabled The goal for this grant is to provide grant funds to qualifying non-profit organizations who: Prepare accurate tax returns for low-income and disadvantaged Minnesota residents, Provide volunteer taxpayer assistance services to designated populations, Operate efficient tax preparation sites throughout the tax season and beyond, Properly train and prepare volunteers, and Collaborate with other organizations to increase volunteer taxpayer assistance services throughout Minnesota

Grant Application Process New Grant Workbook Fill out electronically, or Print and fill out on paper All proposals must be submitted using this new Grant Workbook for Fiscal Year 2017 An excel grant workbook has been created to help ensure organizations are reporting information correctly and consistently. This grant workbook will be available on our website when the Request for Proposals (RFP) goes live July 1. You will be able to chose to complete this excel workbook electronically or print and complete the workbook by paper. All grant proposals must be submitted using this new grant workbook. Attach any relevant or required documentation to help support your organizations proposal that is not included in this grant workbook.

Grant Application Process Print advertisements must: be included with your organization’s proposal be reviewed and approved each grant period state “Service made available through a grant provided by the State of Minnesota” be professional, accurate, and represent the integrity and services provided through the volunteer taxpayer assistance program If your organization plans to request grant funds for print advertisements, a copy of the advertisement must be included with the proposal that is sent to the department for review. If advertisements are not approved by the department prior to being used, grant funds for print advertisements will not be reimbursed. If your organization requests advertising funds but does not plan to use print advertisements, provide a detailed description of your marketing plan.

Grant Application Process Salary Funding Cannot be used to pay volunteers Must be reasonable Cannot be requested for organizations who do not pay persons to perform the organization’s functions or activities Salary funding cannot be used to pay volunteers for conducting intake, preparing tax returns, doing quality review, etc. Grant funds used for salaries must be paid to individuals specifically for services performed for the volunteer taxpayer assistance program. Organizations exempt from registering with the Attorney General because they do not pay persons to perform the organization’s functions or activities cannot request grant funds for salaries. This does not apply to organizations exempt from registering with the Minnesota Attorney General for any other reasons.

Grant Application Process Required documentation must be included Missing any required documentation will disqualify your application for Fiscal Year 2017 grant funds Grant deadlines will not be extended. Additional time will not be given to submit information missing from grant proposal Payment obligations with government agencies must be met Grant funds will not be dispersed to organizations who owe a past due debt to a government agency that is being collected by Minnesota Revenue

Reimbursement of Grant Funds A Reimbursement Payment Schedule will be used Organization awarded: Submit reimbursement request when: Less than $5,000 The entire award has been spent $5,001 - $20,000 At least $5,000 has been spent $20,001 or more At least $10,000 has been spent When can organizations request reimbursement of grant funds? Requests can be made anytime between October 1, 2016 – September 1, 2017. However, reimbursement requests should generally be made shortly after the funds have been spent and as soon as your organization’s tax sites close. If your organization is granted a substantial amount of grant funds, we recommend requesting reimbursement in multiple increments (following the guidelines in the table above) and not waiting until the final report is due.

Reimbursement of Grant Funds Reimbursement request cover sheet Complete each time requesting reimbursement Requests will not be accepted without cover sheet Organizations will need to complete a reimbursement request cover sheet that will detail the specific expenses of the reimbursement request. The reimbursement request cover sheet will be available on our website. There will also be a copy of this cover sheet at the end of the RFP for your reference. Organizations will also have to be sure to include supporting documentation for all expenses within the reimbursement request such as payroll records, itemized receipts, invoices, mileage lots, etc. to prove expenses are reasonable, necessary, and allowable within the guidelines of the grant contract. Requests for reimbursement without supporting documentation will not be accepted.

Reimbursement of Grant Funds What if my organization has reason to request advance grant funds? Details will be in the Request for Proposals (RFP) If your organization has reason to request advance grant funds, you will need to include a detailed explanation in the proposal that explains exactly why reimbursed grant funds would cause extraordinary cost to your organization. This request must be included in your proposal. Late requests for advance grant funds will not be allowed. Advance funds will be considered and may, upon review and sufficient justification, be granted for the current grant period only. Organizations will have to make this request and be evaluated each grant period. The department will review these requests for advance grant funds on a case-by-case basis and may decide to authorize advance grants funds, if the situation warrants. There will be additional requirements by the department to ensure grant funds are being spent accordingly. One item includes a monitoring visit conducted during the grant period.

Due Dates and Deadlines Request for Proposals (RFP) will be live July 1, 2016 Submit proposals by email or mail Applications due by 2:00 p.m., August 15, 2016 No exceptions The specific on how to submit a question is detailed in the RFP for your reference. Questions can be submitted anytime between July 1 – August 3 with all questions answered by August 10. All questions received during this time and the answers provided will be posted to our website for anyone to review. Be sure to submit your organization’s proposal through a method sure to arrive on time as applicants must be received by August 15 by 2:00 p.m., not sent or mailed in by August 15. Once all proposals have been received, our grant review team will evaluate all complete RFP’s to determine awards. Details of exactly how proposals are scored on the basis of need, impact, and performance will be outlined in the RFP.

Due Dates and Deadlines Progress Reports Due February 15, 2017 Final Reports Due September 1, 2017, or 45 days after volunteer taxpayer assistance services have ended (whichever is earlier) Progress Reports are only required for organizations that are awarded more than $5,000 in grant funds. This year, progress reports will be due by February 15, after training for the 2016 tax season has ended and a few weeks into the filing season. This way organizations will report more specifically on preparations for the filing season on the progress report and will report on how the entire filing season went on the final report. Final reports are required for all organizations that are awarded grant funds. The deadline for final reports has not changed for FY17. Final reports are due by September 1 or 45 days after volunteer taxpayer assistance services have ended (whichever is earlier). You can always submit progress and final reports before their due dates.

New Grant Coordinator – Jessica Delcid Jessica has been with the department for 3 years and will be administering the FY17 grant to provide volunteer taxpayer assistance services. Jessica will also serve as our Volunteer Outreach Coordinator. She is your main contact for any questions regarding the FY17 Grant going forward. Her contact phone and email are included on this slide for your reference. Phone: 651-556-3052 or 1-800-818-6871 (toll-free) Email: Volunteer.Grant.MDOR@state.mn.us

Questions? 651-556-3052 or 1-800-818-6871 (toll-free) volunteer.grant.mdor@state.mn.us Are per diems allowed to reimburse reviewers to come to the site location and attend training, take tests, and go over administrative processes? If so, what would be reasonable? For volunteers, mileage reimbursement is allowable if they are attending a training, volunteering at a site, etc. that requires some travel. Mileage reimbursement to volunteers is limited to the current business standard mileage rate from the IRS. Expenses must be reasonable and necessary for your organization to provide volunteer taxpayer assistance services to low-income and disadvantaged Minnesota residents.    Will current grantees be able to apply for additional funds for FY17? Our costs already exceed the amount of the grant. With the new requirements to submit supporting documentation for reimbursement, the cost to administer this grant will be even greater. Yes. Current grantees for the FY16 grant can apply for the FY17 grant. What determines how much an organization applies for? What is the minimum and maximum an org can request for? Proposals are scored on the basis of need, impact, and performance. Up to 140 points will be awarded based on evaluation of the proposal work plan to assist low-income and disadvantaged Minnesota residents in preparing and filing individual income tax and property tax refund returns. There are nine factors that will be evaluated and scored by our grant review team. The Request for Proposals (RFP) outlines these nine factors so be sure to review them once the RFP is live July 1. How are funds allocated? It is based on the number of people served or based on the expenses of the organization? See response to question 3.