Atlanta, GA October 7-9, 2013 Postcards from the Edge of United Way’s Grant World Things you really need to know before you take on that grant Financial Management and Human Resources Forum

October 8, 2013 “ It Takes a Village”

Organization Preparedness Considerations: Should we apply? Is it an organizational fit? Does your UW understand the requirements of the grant? What are the financial implications? Are you prepared to say no? COMMUNICATE, COMMUNICATE, COMMUNICATE October 8, 2013

Organization Preparedness Considerations: Applying for the Grant Assemble a cross-functional team and assign a grant owner Set regular meetings Establish work plans and deadlines Understand the resources needed to implement and execute the grant (remember you can still say no) COMMUNICATE, COMMUNICATE, COMMUNICATE October 8, 2013

Organization Preparedness Considerations: You got the grant, now time to implement Establish department leads Assign roles and responsibilities Understand reporting and deadlines Set regular meetings COMMUNICATE, COMMUNICATE, COMMUNICATE October 8, 2013

“And There’s One More Thing”

Human Resources Considerations: October 8, 2013 Pre-Hiring Considerations Position description specific to grant need Position posting internally Management of employment application Pre employment testing Offer of employment letter

Human Resources Considerations: Human Resources Policy Changes Compensation policy Personal automobile insurance required for grant functions Facility security Grant employee retention Allocation of time for all employees October 8, 2013

Human Resources Considerations: Other Changes Allocation of time for employees Identifying “indirect” personnel Workers comp rate increase due to grant needs New reception procedures if grant includes client contact Conflict over grant acquisitions (furniture, laptops) October 8, 2013

Assets Purchases and Building Space Considerations: Grant Determines Asset Ownership Allocation of Office Costs Software Managing Multi-site Grants October 8, 2013

“Free Money, What’s the Catch?”

Financial Considerations: Cash-Flow Fee for Service/Cost Reimbursement/Pay for Performance Grants Funding upfront costs outlays Matching Funds Requirements Billing Funds spent or days funding requirements Audit Costs Reimbursable October 8, 2013

Financial Considerations: Cost Recovery Administrative Cost Recovery Allowable? Actual costs recovery or standard allowance Potential conflicts with CI/Development on need for Administrative cost recovery Program Costs Fully Recovered In-kind requirement October 8, 2013

Financial Considerations: Other Additional Work for Finance/Accounting & the Rest of the Organization Small grants may be as much work as large grants Revenue Recognition Confusion Multi-year grants/crossing fiscal years Information Systems Adequacy Are additional investments required? Will grant cover? Manual processes/work End of Grant Life Planning Does the program end post grant funding or is UW on the hook Insurance October 8, 2013

Financial Considerations: Grant Compliance & Administration State/Federal/Private Foundation Big difference for compliance Grant Funds Restrictions Clarity on fund use Internal Controls & Policies Needed to Ensure Compliance Costs associated with putting controls/policies in place Subcontractor/Recipient Monitoring Review & Reporting Employee Time Tracking & Cost Allocations Funder Audits Reporting October 8, 2013

Not done yet!!... and now the fun begins...

Audit Considerations: Overview of A-133 Audit Cost of the audit and how you pass it on to grants Ask your auditor to quote and bill grant fees separately A-133 Audit Process Audit Committee Oversight for A-133 audit General audit plan / compliance supplement Demonstration grants and changing rules Auditor experience with A-133 audits Also...Subject to Federal Audits Audit of the indirect cost plan by the cognizant federal agency OIG audits vs. Departmental funding audits vs. A-133 audits October 8, 2013

Audit Considerations: Program Reporting As required by funder and keeping the documentation to back up both program and financial information Program information may be written files and not in a computer program Sub grantee auditing & your responsibility Recordkeeping and Retention Keeping the materials after the grant is over may take storage and more space than anticipated October 8, 2013

Thank you