Finance 101 Staying out of Trouble with Grants Nathan Branscome, CFO Criminal Justice Coordinating Council Innovating Criminal Justice, Empowering Victims

Grant Financial Management – Why it Matters Who am I and Why am I here? 50 Federal Grant Awards - $200 million State Grant Funds - $40 million annually State and Federal Audit Experience Whether you manage the money or you manage the person who manages the money, you need to know what questions to ask.

Grant Financial and Legal Oversight Grant Responsibility Devolves From the Grantor (“Stuff rolls down hill”) State Grant Funds can be reviewed by: State Department of Audits and Accounts State Office of the Inspector General Local Auditors State and Local Law Enforcement Federal Grant Funds can be reviewed by: US Department of Justice Office of the Inspector General Federal Auditors from Funding Agency Other Federal Law Enforcement State & Local Entities Listed Above

The Basics of Accounting Know what you spent. Know when you spent it. Know EXACTLY what you spent it on. Know that it is an allowable expense. Know what to do if the money comes back.

Accounting Structure At a minimum your accounting structure should: Identify the receipt of grant funds When, where, and who from Identify the expenditure of grant funds When, where, and who to Separate grant funds both from different grants and from other operating funds Never “comingle” funds Provide, at a minimum, the level of detail that is presented in your budget Balance over the Grant Period

Procurement Policy Follow any procurement terms in the conditions of your grant award. If you are a State Agency or your Agency follows State Procurement Policy you must follow policy when using grant funds. www.doas.ga.gov Otherwise you must follow the procurement policy of your unit of government. Grant funds never exempt you from procurement rules. If grant conditions conflict with procurement rules ask your grant specialist.

Quick Tips on Expenses Every expense requires an invoice. Invoices must: Be from the organization providing service with organization’s information (name, address, phone) Show date of service Show itemized services provided Reflect full cost of service Never pay an invoice for a service that has not been rendered. Special exception: Contract terms – Check with Grant Specialist A credit card receipt is not an invoice unless it includes all of the above components Every invoice requires a payment to be a valid expense. Check copy, ACH copy, Financial Voucher, Bank Statement

A Final Note on Ethics It’s not a race to spend all the money. “But everyone always says to never return grant funds.” Avoid preferential dealings with friends and family. (Nepotism) Never Lie or Fudge Numbers. It is much better to mess up and apologize than hide a mistake. Always make sure you get exceptions to rules in writing.

Questions Nathan Branscome Director of Administration, CFO (404) 657-1997 Nathan.branscome@cjcc.ga.gov