1. CCFF Program Operations Functional Review October 22, 2002 The following document is posted by the Low Income Investment Fund (LIIF) in accordance with the requirements of the Fannie Mae Foundation’s October 2001 grant in support of LIIF’s continued information technology (IT) development. Materials posted by LIIF outline the organization’s strategic IT plan, as well as document the implementation process of this plan. LIIF’s IT plan included customization of loan servicing software, report automation, impact statistics generation, fund administration, and asset liability monitoring. LIIF’s knowledge and experience developing this IT workplan is posted as an aid to other non-profit Community Development Financial Institutions (CDFIs) who may be generating their own IT workplan and who may find the subsequent materials helpful in that regard. Copyright 2002: LIIF

2. CCFF Program Operations Work Flow Diagrams  Training and Workshops  Grant Processing Grant Applications Grant Approval Grant Execution Grant Allocation and Disbursement Grant Monitoring  Sub-Contracted Services

3. Copyright 2002: LIIF CCFF Program Operations Training and Workshops 1.Child Care Providers attend workshops sponsored by CCFF and complete registration information and surveys. 2. Child Care Staff enters contact information and replicates provider records to Program Operations database. $ $ $ Child Care Staff Child Care Providers $ $ $ Child Care Staff 3. Child Care Staff records attendance and captures demographic information. 4. System logs attendance in custom tables and updates course catalog and schedules. 5. Child Care Staff generates Training Statistics Reports and updates course offerings. NLS Program Operations NLS Contacts

4. Copyright 2002: LIIF CCFF Program Operations Grant Applications 1.Child Care Provider submits grant application and required documents. 3. Child Care Staff creates grant application in P.O. database and enters pending items for tracking. $ $ $ Child Care Staff 2. Child Care Staff forwards application fee to Finance. Child Care Provider Pay to $ 4. Finance posts fee income in P.O. database. Event Notification Status:PIPELINE 5.System produces Event Notification Reports based on application checklist due dates. NLS Program Operations Grant Application

5. Copyright 2002: LIIF CCFF Program Operations Grant Approval 5.Child Care Staff changes grant application status to approved. System validates that Project Statistics have been entered before changing status to APPROVED Business Rule 4.CCFF Management approves applicant grant request Grant Application Score: 85 $ $ $ Child Care Staff 1.Child Care Staff collects required documents and evaluates applicant eligibility. Application Grant Folder Agreement Documents 3.Child Care Staff scores application and submits to CCFF Management for approval. CCFF Management $ $ $ Child Care Staff Grant Application Score: 85 √ NLS Program Operations Status:APPROVED LIHF Project Statistics System 2.Child Care Staff enters project description and impact statistics in PSTS. Implementation scheduled for December

6. Copyright 2002: LIIF CCFF Program Operations Grant Execution $ $ $ Child Care Staff Child Care Provider 5.System generates Monthly Program Activity reports. Status: COMMITTED 1.Child Care Staff generates grant documents for signature and performs site inspection, as required. 4.Child Care Staff creates actual grant operation (linked to grant application record) before funding. Status: ACTIVE Status: EXECUTED NLS Program Operations NLS Program Operations $ $ $ Child Care Staff Agreement 2.Provider returns executed grant agreement. 3.Child Care Staff changes grant application status to committed and saves documents in grant record. Grant Documents

7. Copyright 2002: LIIF CCFF Program Operations Grant Allocation and Disbursement 1. Child Care Management allocates recipient grant disbursements to funding sources CCFF Program Grant Allocator 2. CCFF Program Grant Allocator System posts accounting movements in Program Operations and Funding Operations databases. GrantRecipientAmount 56789 Wu Yee$25,000 GrantFunderAmount 12345M&P Haas $15,000 99999CCSF1-ACCF$10,000 CCFF Management RecipientWu Yee Child Services Grant Number56789 Origination Date04/15/02 Expiration Date04/15/05 Grant Amount$25,000 Current Amount$0 Current Amount$25,000 Grant Record FunderM&P Haas Fund Grant Number12345 Origination Date03/15/02 Expiration Date03/15/04 Grant Amount$100,000 Current Amount$75,000 Current Amount$60,000 Grant Record 3. System generates Funding Request Form for Finance. Funding Request $25,000 Child Care Provider Pay to $ 4. Finance remits check to Provider.  Balances updated by transactions  NLS Program Operations NLS Funding Operations

8. Copyright 2002: LIIF CCFF Program Operations Grant Monitoring 2. System records document schedules in custom tables. $ $ $ Child Care Staff $ $ $ 3. Child Care Provider submits periodic reports to CCFF. 5. System maintains compliance history and calculates date of next scheduled document. 4. Child Care Staff logs document status in P.O. database. Child Care Provider 1.Child Care Staff sets up provider reporting requirements in grant record. Reports and Documents Financial Statement Use of Funds Inspection Report Notice of Completion Schedule C Child Care License 6.System produces Event Notification Reports based on upcoming and past due provider reporting events. NLS Program Operations

9. Copyright 2002: LIIF 1.Child Care Provider requests support in the form of services. 3. Child Care Staff enters proposal data into P.O. database and tracks status changes. $ $ $ Child Care Staff 2. Child Care Staff requests proposals from qualified consultants. Child Care Provider Consultant Proposal CCFF Program Grant Allocator Pay to $ 6. Finance remits check to Consultant. 4. Child Care Management allocates contractor disbursements to funding sources. CCFF Management CCFF Program Operations Sub-Contracted Services NLS Program Operations Funding Request $8,000 5.System generates Funding Request Form for Finance.