CENTRALIZED PERSONNEL PLAN

Introduction Provides an overview of the requirements for submission of CPPs: General rules about CPPs; Construct of the plan; Methodologies for determining basis of allocation;

Introduction (continued) Documentation requirements; Sample extract. By column explanation Summary Table

Centralized Personnel Plan CPP funding provides a mechanism for the reimbursement of direct costs incurred by a State for centralized personnel, accounting, and procurement staff activities in support of federal awards programs – to include National Guard Cooperative Agreement Appendices. (NGR5-1/ANGI63-101) “It costs money to spend money.”

General Rules for CPPs Limited to the reimbursement of the actual cost of providing centralized service activities. (OMB Circular A-87) Restricted to direct cost of salaries and fringe benefits only. (NGR5-1/ANGI 63-101) Based on an equitable distribution of costs for services provided. (OMB Circular A-87)

General Rules (continued) Costs presented must be reasonable. (Prudent person standard) (OMB Circular A-87, NGR5-1/ANGI 63-101) Prepared by State Military Department (SMD), reviewed and approved by USPFO, funded by NGB Program Manager. (NGR5-1/ANGI 63-101) Not an authorized charge against an agreement without USPFO approved plan. (NGR5-1/ANGI 63-101)

General Rules (continued) Costs and workload data are projected for upcoming budget year. (OMB Circular A-87) Must be reconciled to actual data. Actual salaries and wages paid; actual number of transactions processed. (OMB Circular A-87) Difference (+ or -) from prior year is adjusted in next projected year. Known as Carry-forward analysis. (OMB Circular A-87)

Construct of the CPP (OMB Circular A-87) Must contain each of the following elements: Signed certification statement; Organization chart (sufficient detail to show operations including the central service activities of the state);

Construct (continued) Copy of the Comprehensive Annual Financial Report (or a copy of the Executive Budget) if budgeted costs are being proposed; Brief description of the service provided; Identification of the unit rendering the service and the operating agencies receiving the service;

Construct (continued) Items of expense included in the cost of the service (limited to wages and benefits); Method used to distribute cost; Summary schedule showing allocation to each service to the specific benefited agencies.

Methods for Determining Basis of Allocation Single program (appendix) only – time and effort; Multiple programs (appendices) – time and effort; or Statistical methodology – quantitative measurement

Methods (continued) IF employee works on a single appendix or federal award program: Charges for salaries and wages will be supported by periodic certification that the employee worked on that one program for the period covered by the certification. Time keeping records must be certified at least semi-annually. (OMB Circular A-87)

Methods (continued) IF employee works on multiple appendices, federal programs, state activities: Time and effort is substantiated by personnel activity reports or an approved statistical sampling system. Personnel activity reports must reflect after-the-fact distribution of the actual activity of each employee;

Multiple Programs (continued) Must account for the total activity for which each employee is compensated; Prepared monthly; Signed by the employee. (OMB Circular A-87)

Methods (continued) Statistical sampling methods for allocating salaries and wages. (OMB Circular A-87) Must be approved by the USPFO; May include random moment sampling, case counts, or other quantifiable measures of employee effort. Example, number of transactions. (Number of personnel is not a quantifiable measurement for allocation)

Allocation Must be inclusive of all activities within the SMD even if costs are not recoverable. (OMB Circular A-87) If number of transactions is used as statistical basis for allocation, total number of same type transactions for the SMD must be considered.

Supporting Documents Adequate documentation supporting actual cost of salary and benefits for each person for whom reimbursement is requested. (Payroll reports) (OMB Circular A-87 and NGR 5-1/ANGI 63-101) Adequate documentation to support basis of allocation. (Monthly reports, transaction counters, time records). Method used must be approved (in advance by USPFO).(OMB Circular A-87 and NGR5-1/ANGI 63-101)

Timing USPFO has up to six months to review and approve. (OMB Circular A-87) Must be included as part of annual budget submission to NGB. (NGR5-1/ANGI 63-101) Failure to secure approved plan at budget submission may result in insufficient funding. (NGR5-1/ANGI 63-101)

NGB Program Manager Receives courtesy copy of CPP or summary of charges and signed certification as part of budget documentation. (NGR5-1/ANGI 63-101) CPP due at time of budget submission. NGB will fund late submissions on a case-by-case basis if funds are available. (NGR5-1/ANGI 63-101)

NGB Program Manager (continued) Provides funding whenever possible. Lack of available funding may preclude reimbursement to the State from initial FOMA budget; however, local funding may be used at the discretion of the USPFO. (NGR5-1/ANGI 63-101)

Sample CPP Sample extract – Accounts Payable Section Explanation of services and basis of allocation. Table of Allocation (By column explanation) Accounts Payable Worksheet Salaries and wages explanation – actual and projected Sample extract – Summary Table

Explanation of services and basis of allocation.

A Table of Allocation – Accounts Payable (By Column explanation) Column A reflects each CA appendix within the SMD. When not listing all state activities, list SMD total transactions for all activities. SMD Total Transactions

B Column B lists the transaction counter as estimated in the prior year CPP.

C Column C lists the actual transaction count for the prior fiscal year based on an after-the-fact review.

D Column D reflects the percentage relationship of the appendix or program transaction count to the SMD total number of transactions (accounts payable in this example).

E Column E reflects the amount ($ for salaries and wages) previously requested on prior year CPP

F Column F computes prior year actual amount based on actual transactions and actual salaries and wages paid. (Column D * actual salaries and wages paid prior year)

G Column G represents the difference (+ or -) between the amount estimated in prior year CPP and the actual cost for prior year. (Column F – Column E)

H Column H indicates amount projected for budget year based on actual number of transactions in prior year at projected salaries and wages for budget year. (Column D * $ amount projected for budget year)

I Column I reflects allocated amount based on projection for budget year and + or – adjustment from prior fiscal year. (Column G + Column H)

Complete Accounts Payable Worksheet I H B C D E F G A

Salaries and wages explanation – actual and projected.

Summary Table

Final Thoughts Worksheet for each allowable functional area is required in the same detail. (OMB Circular A-87) Restricted to non-supervisory compensation costs in personnel, procurement, and accounting functional areas. (NGR 5-1/ANGI 63-101) Representative of direct time and effort.(OMB Circular A-87 and NGR 5-1/ANGI 63-101)