1. Precision Experience Assurance Accounting For Grants FGFOA Beginner Boot Camp, Tuesday, November 19, 2013 Hyatt Regency, Sarasota FL Bert Martinez CPA, Senior Audit Manager Purvis Gray & Company, LLP Tallahassee / Gainesville / Ocala / Sarasota 1

2. Precision Experience Assurance 2 Grant Accounting – Scope of Presentation 1. Regulatory Environment 2. Grant Compliance Resources 3. Internal Controls 4. Administrative Requirements 5. Cost Principles 6. Single Audit

3. Precision Experience Assurance 3 Regulatory Environment The grantee should have an understanding of the external factors and regulators regarding grant oversight and/or single audits. 1.AICPA 2.GAO 3.PCAOB 4.OIGS 5.OMB

4. Precision Experience Assurance 4 Grant Compliance Resources 1.Grant Agreement 2.Federal Clearinghouse 3.Florida Single Audit Act 4.Compliance Matrix 5.Statutes, Regulations and Program Requirements

5. Precision Experience Assurance Grant Cooperative Agreement Contract

6. Precision Experience Assurance 6 Grant Agreement 1.Obtain and read your grant agreement and amendments 2.Summarize the important terms and conditions for compliance 3.Keep it readily available for review

7. Precision Experience Assurance 7 Federal Audit Clearinghouse The Federal Audit Clearinghouse homepage Single audit reference materials Links to several resources to assist the auditors and auditees with Federal compliance requirements Single audit basics and where to get help for Federal grant recipients provided by the Grants Management Committee of the United States Government Chief Financial Officers Council

8. Precision Experience Assurance 8 Florida Single Audit Act The grants manager should be familiar with applicable state compliance requirements as designated by the Executive Office of the Governor in Section 215.97, Florida Single Audit Act.

9. Precision Experience Assurance Compliance Matrix 9 1.The Federal matrix of compliance requirements for federal programs is updated annually and can be found as part of the OMB A-133 Compliance Supplement link from the Federal Audit Clearinghouse homepage 2.As part of the Florida Single Audit Act, the state also updates the State Projects Compliance Supplement matrix of compliance requirements.

10. Precision Experience Assurance Compliance Requirements 10 A.Activities Allowed or Unallowed B.Allowable Costs/Cost Principles C.Cash Management D.Davis-Bacon Act E.Eligibility F.Equipment and Real Property Management G.Matching, Level of Effort, Earmarking H.Period of Availability I.Procurement and Suspension and Debarment J.Program Income K.Real Property Acquisition/Relocation Assistance L.Reporting M.Subrecipient Monitoring N.Special Tests and Provisions

11. Precision Experience Assurance Statutes, Regulations & Program Requirements CFDA and CSFA Grant Agreement Public Policy Requirements Special Conditions or Restrictions Program Guidance CFDA and CSFA Grant Agreement Public Policy Requirements Special Conditions or Restrictions Program Guidance

12. Precision Experience Assurance Internal Controls The Grant Manager should establish written policies and procedures regarding internal controls over each of the Compliance Requirement areas that may include: – approvals and authorization – segregation of duties – record retention – management review – documentation 12

13. Precision Experience Assurance Administrative Requirements OrganizationCircular State, Local, or Indian Tribal Governments A-102 Institutions of Higher Education, Hospitals, and Other Non-Profits A-110 Commercial Organizations (optional per federal agency) A-110

14. Precision Experience Assurance Administrative Requirements - Financial administration - Equipment/s upplies/real property - Reporting requirements

15. Precision Experience Assurance Administrative Requirements Equipment – Must be used to program acquired for – If no longer needed, may be used for any other project paid for with federal dollars – Must be tracked until fair market value is below the threshold for capital equipment – If above FMV, may be retained or sold but proceeds go to federal agency – What threshold to use

16. Precision Experience Assurance Reporting Compliance The Grant Manager: should have an understanding of the reporting requirements for the applicable program should have policies and procedures in place to ensure that reporting – financial, performance and special, as applicable, is accurate and timely Electronic versions of standard forms are located on OMB’s homepage – (http://www.whitehouse.gove/omb/grants/grant- forms.htmlhttp://www.whitehouse.gove/omb/grants/grant- forms.html 16

17. Precision Experience Assurance Administrative Requirements Records Retention Period – Federal government: 3 years – State government or your agency

18. Precision Experience Assurance OMB Circulars Cost Principles Cost Principles Audits Audits

19. Precision Experience Assurance Cost Principles OrganizationCircular State or Local Governments A-87 Educational Institutions A-21 Non-Profit Organizations A-122

20. Precision Experience Assurance Financial Compliance Cost Principles – Allocable – Necessary and reasonable – Treated consistently (direct or indirect) – In accordance with GAAP – Net of all applicable credits Cost Principles – Allocable – Necessary and reasonable – Treated consistently (direct or indirect) – In accordance with GAAP – Net of all applicable credits

21. Precision Experience Assurance Financial Compliance (continued ) Cost Principles (OMB Circular A-87) – Not used for cost sharing or matching requirement for another federal award – Adequately documented – Authorized or not prohibited under under state or local laws and regulations – In conformance with limits or exclusions on types of amounts of costs – Consistent with recipient’s policies and procedures Cost Principles (OMB Circular A-87) – Not used for cost sharing or matching requirement for another federal award – Adequately documented – Authorized or not prohibited under under state or local laws and regulations – In conformance with limits or exclusions on types of amounts of costs – Consistent with recipient’s policies and procedures

22. Precision Experience Assurance Financial Compliance (continued) Cost Principles (OMB Circular A-87) – Selected items of cost – Salaries charged to grants Cost Principles (OMB Circular A-87) – Selected items of cost – Salaries charged to grants

23. Precision Experience Assurance Single Audit Act Single Audit Act (SAA) [Auditor and auditee’s responsibilities] Compliance Supplement Single Audit Act (SAA) [Auditor and auditee’s responsibilities] Compliance Supplement

24. Precision Experience Assurance An Effective Grant Compliance Program Written grant procedures Checklists Grant monitoring and auditing Formal and informal grant training program Quarterly newsletter Web page on County’s Intranet Written grant procedures Checklists Grant monitoring and auditing Formal and informal grant training program Quarterly newsletter Web page on County’s Intranet