Effective Management and Compliance 1 ANA GRANTEE MEETING  FEBRUARY 5, 2015

To Provide The Framework Of A Financial Management System To Demonstrate The Integration Of Grants Management Into The Overall Financial Management System To Highlight Key Components Of The Financial Management System Required To Insure Compliance With Federal Financial Management Regulations 2

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Budget Process Accounting of the Resources Auditing 6

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Grantee “The procedure by which a Tribe, organization, or institution of higher education creates and manages a financial plan.” Administration for Native Americans (ANA) “The appropriating of fiscal resources to accomplish project objectives within a single year’s period of time.” 8

Coordination Between the Project/Program Director and the Financial Officer Adherence to the 45 CFR Part 75 Cost Principles Alignment with the Objective Work Plan (OWP) Management of the Budget Revenue and Cost Forecasting 9

Factors Affecting Allowability of Costs Necessary and Reasonable Conform to any limitations or exclusions in the cost principles or federal award Consistent with Policies and Procedures Consistent Treatment In Accordance with Generally Accepted Accounting Principles Not a Cost or Used to Meet Cost Sharing of Other Federal Awards Adequately Documented 10

Direct and Indirect Costs Cost Allocation Plans Selected Items of Cost Allowable Allowable with Approval Not Allowable 11

Resources Requested Must be the Financial Plan for the Activities Detailed in the OWP Align the OWP Activities with the Budget Requests Activities Not Supported by the Budget should be Fully Explained 12

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Grantee “The system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.” Administration for Native Americans (ANA) “The system of recording and summarizing financial transactions and analyzing, verifying, and reporting the results to ANA.” 14

Coordination Between the Project/Program Director and the Financial Officer Written Procedures Financial Standards Internal Control On-Going Management of the Budget Reporting 15

An Accounting Standard is a guideline for financial accounting The Generally Accepted Accounting Principles is comprised of a large group of individual accounting standards 16

Retention, Methods of Transfer, Transmission and Storage of Information Identification of All Federal Awards Received and Expended and the Federal Programs Under Which They Were Received Accurate, Current, and Complete Disclosure of Financial Results Records that Identify Source and Application of Funds 17

Effective Control Over All Funds, Property, and Other Assets Comparison of Expenditures with Budget Amounts Written Procedures to Implement the Payment Requirements Written Procedures to Determine the Allowability of Costs 18

Segregation of Duties Access Authorization Record Keeping Verification 19

Control Environment Risk Assessment Control Activities Information and Communications Monitoring 20

Preparation of Regular Reports Comparison of Performance with Budget Review and Explanation of Variances from Budget Corrective Action and Revision in Budget, if Necessary 21

Costs Requiring Prior Approval Transfer of Funds Budgeted for Participant Support Costs Transfer or Contracting Out Work Not Approved in the Federal Award Changes in the Amount of Approved Cost- Sharing or Matching 22

Extend the Period of Performance Approval of Carry Forward of Unobligated Balances to Subsequent Periods of Performance Transfer of Funds if the Amount Exceeds $150,000 or 10% of budget amount Need for Additional Funds 23

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Financial Reporting Is The Disclosure Of Financial Information To ANA And Administration About How The Project Is Performing Over A Specific Period Of Time 25

It Helps The Project Manager And Administration Engage In Effective Decision- making Concerning The Project Objectives, Activities, And Overall Strategies It Provides Information From A Financial Perspective About The Activities Of The Project To The Project Manager, Administration, And ANA 26

Balance Sheet Income Statement 27

Comparison of Expenditures with Budget Amounts for Each Federal Award 28

Administration for Native Americans Federal Financial Report 425 Frequency: Semi-Annual Division of Payment Management Federal Financial Report 425 Frequency: Quarterly 29

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“A complete and careful examination of the financial records of a Tribe, organization, or institution of high education.” 31

To comply with Generally Accepted Government Auditing Standards To have a comprehensive understanding of the Tribe, organization, or institution’s operations To analyze the financial data to identify any conditions that would affect the audit work To evaluate the internal accounting control to determine the amount and type of audit procedures necessary To make inspections, observations, inquiries, and confirmations to corroborate data To evaluate compliance with federal statues, regulations, and conditions of Federal awards To issue a report about the financials that were audited 32

A Non-Federal Entity (NFE) that Expends $750,00 or more in Federal Awards during the NFE’s Fiscal Year Must Have a Single or Program Specific Audit 33

Annually Exceptions for Biennial Audit A Tribes that is Required by Constitution or Statute in effect on January 1, 1987 A Nonprofit Organization that had Biennial Audits for All Biennial Periods Ending between July 1, 1992 and January 1,

Secure an Auditor Prepare the Financial Statements Prepare the Schedule of Expenditures of Federal Awards Follow-Up and Corrective Action on All Audit Findings Provide the Auditor with Access to Personnel, Accounts, Books, Records, Supporting Documentation, and Other Information as Needed 35

36 FARM TO TABLE

Management Coordination What do each of us know and what do we need to know Do any of the staff need training Planned communication among staff Involve all management staff in the budget process 37

Prepare A Budget For Each Objective Supports managing the allocation of staff time Allows for the allocation of resources Helps to avoid big expensive items/events that may not align directly with any objective Guides us in projecting revenue for sustainability planning 38

Management Coordination Adopt written procedures ASAP (e.g. security of assets, notice of discrepancies, etc) Agree on internal controls Manage your budget on an ongoing basis, especially staffing Stay on top of reporting requirements 39

Management Coordination What happens when the CFO/financial person takes time off Acknowledge and answer questions in writing 40

Internal Control Segregation of Duties – cashier duties, inventory, etc Authorization – check signing, procurement decisions Record Keeping – record retention, security of files and personally identifiable information 41

Budget Management Establish specific time when reports will be ready for internal review Meet to discuss comparison of performance with budget Explain variances Determine if a budget revision is necessary and how serious it is 42

Reporting Types of reports for: Board of Directors Management Funder – Administration for Native Americans Balance Sheet Income Statement 43

Ideas For Grantees Where is all the information for the auditor being housed, and is it readily available for inspection AUDIT BEFORE THE AUDIT Can you secure an auditor via matching/leveraged resources? 44

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Tim Chappelle Susan White