1. Basic Budgeting for New Fiscal Officers Presenters –Mark Beckley, Deputy Director, State DCSS –Justina Green, State DCSS –Steve Smith, Sutter County

2. Today’s Presentation Timelines Processes Contact information

3. Annual Timelines- Due Dates July - upon Enacted State Budget Final Administrative Allocation released for current year Final EDP allocation and account numbers released A-87 plan approved by SCO must be received by DCSS before assigning account number October - November Additional FFP Survey Due for current year January 921 Budget Display web form for budget year available - Due in February MarchInitial Administrative and EDP Allocation for budget year released via LCSA letter April EDP Budget form for budget year available for input - Due in May

4. Quarterly Due Dates Administrative Expense Claim (AEC) CS356 Due 15 th of the month after the quarter ends –October 15, January 15, April 15, July 15 CSE Travel Request

5. Monthly Timeline LCSA Advanced 1/12 of Admin and EDP allocation –True-up adjustments occur every quarter and may change the actual amount of the following month’s advance

6. Administrative Budget Process Initial Allocation released via LCSA letter in Spring Final Allocation released once state budget is passed (Aug-Sept) Administrative allocation encompasses –Salaries and benefits –OE&E –Site and facilities –Abatements - interest and other –Some purchases require prior approval

7. Administrative Budget Process Funded 66% federal; 34% state general fund Expend allocation up to final allocation amount Plus any abatements Any overages must be funded with county share Additional FFP available for over- expending on child support activities

8. EDP Budget EDP Initial allocation released via LCSA letter in the Spring Web form available for distributing costs between recurring and non- recurring accounts LCSAs must stay within allocation Final allocation with account numbers released once state budget is passed

9. AEC CS356 Claims Expenses claimed quarterly via web application (LCSA Secure web site) –October 15, January 15, April 15, July 15 Access levels –Fee Author, Author, IV-D Director, Auditors All admin expenses EDP expenses entered on page 356.4

10. Cash Basis Claiming Federal rules require cash basis claiming NO accrual accounting Expenses claimed in the quarter they were incurred Exceptions –Depreciation Five year depreciation rule, claim 1/5 over five years –Countywide cost allocation plan/A-87 indirect costs Should be claimed as the annual amount divided quarterly

11. Federal Cost Guidelines 2 CFR 225 –Aka OMB Circular A-87 Guidelines for acceptable costs for Federal reimbursement

12. AEC CS356 EDP Accounts For EDP expense detail - reported to the feds Page 356.4 of the AEC claim, use pop-up screen for line item detail –C4 – CSE M&O (Personnel Accounts) –C8 Miscellaneous M&O costs One time projects –C7 – A-87 Costs –C5 – CSE Travel Accounts

13. Time Study - Time Certification Child Support Functions and C&D SDU Early Intervention Time certify vs. Time study –Time certify When staff are working 100% on one activity or function –Time study When staff are spending time on two or more activities or functions

14. Time Study - Time Certification Timelines Time Study –Four weeks of every quarter –Keep copies at the LCSA for auditing purposes Time Certification –August and February –Keep copies at the LCSA for auditing purposes

15. A-87 Cost Allocation Plan Plan your county submits to the State Controller with the schedule of indirect costs for all departments in the county –Periodically review the plan and percentages attributed to Child Support SCO approved schedule is sent to DCSS DCSS Accounting enters the annual amount approved into the AEC LCSA claims ¼ of cost each quarter

16. Interest Earned Advances MUST be deposited in an interest bearing account Interest earned MUST be abated on the claim This is a common audit finding Abatements increase your spending authority

17. Abatement Myth –Abating interest reduces my allocation –I do not have to report interest earned Abatements reduce your net expenditures so you can spend more! –Goal: Spend all of your allocation plus the interest earned in the same year

18. Abatement Example No. 1 FY Allocation $12,000,000 Quarterly expenses $3,000,000 Quarterly interest earned $500,000 –Enter 1 st quarter expenses of $3m –Abate interest of $500,000 –LCSA is reimbursed $2.5million At year end Allocation is $12m Cash reimbursement of expenses are $10m Cash interest earned $2m Balance available $2m

19. Abatement Example No. 2 FY Allocation $12,000,000 Quarterly expenses $3,500,000 Quarterly interest earned $500,000 –Enter 1 st quarter expenses of $3.5m –Abate interest of $500,000 –LCSA is reimbursed $3million, $500,000 interest cash At year end Allocation is $12m Cash reimbursement of expenses are $12m Actual expenses $14m Cash interest earned $2m Balance available $0m

20. Additional FFP Federal Financial Participation (FFP) can be drawn down when exceeding your existing Administrative Allocation County share 34% LCSA letter published in the Fall with a survey to fill-out and return Additional FFP amount added to the claim, amount is available after the Administrative Allocation is spent Claim automatically distributes the expenses 66% Federal and 34% County share

21. CSE Travel For travel expenses related to CSE training –Email LCSA Budget Analyst with actual travel amount being reimbursed –Reimbursed outside of the EDP allocation –Account number will be created –Enter expenses on AEC page 356.4

22. CS921 Budget Display LCSA letter requests budget data for upcoming state fiscal year Due date February Entered via form on LCSA Secure web site How is data used? –Legislative report –Various internal reports for DCSS’ use

23. Website CA CS Central –https://central2.dcss.ca.gov/Pages/Default.aspx LCSA Fiscal Administration –LCSA Letters –CSS Letters –CSDA Link –Upcoming events –Forms –Claiming instructions –Fiscal Officers Forum –Collections Reports

24. FAQs What is DCSS LCSA Budgets role? –Claiming policy and procedures –Monitor expenditures –Process requests for EDP equipment approvals –Obtain federal and state prior approval when necessary

25. Trudy LehaneAnne Allen Trudy.Lehane@dcss.ca.govAnne.Allen@dcss.ca.gov 916.464.3294916.464.5285 AlamedaButte ColusaCentral Sierra Del NorteContra Costa El DoradoFresno HumboldtGlenn ImperialKings Inyo/MonoLos Angeles Kern Mendocino Lake Orange Lassen Plumas MaderaSan Diego MarinSan Francisco MariposaSan Joaquin Merced San Luis Obispo MontereySanta Barbara NapaSanta Clara PlacerShasta RiversideSierra/Nevada SacramentoSiskiyou/Modoc San BernardinoSutter Santa Cruz/San Benito Tehama San Mateo Tulare Solano Tuolumne SonomaVentura StanislausYolo Trinity Yuba LCSA Budget Section Justina Green Manager 916.464.5015

26. Thank you Questions?