1. First 5 LA Invoicing & Budget Modification Workshop OHCD Contractors FY 2009-2010

2. 2 Overview I. Financial Forms II. Invoice Reporting III. Informal Budget Modification/Budget Changes IV. Formal Budget Modification Process V. Financial Compliance Site Visit VI. Program (SOW) Modification VII. Contact Information

3. 3 I. Financial Forms Download financial forms from our website, www.first5la.org www.first5la.org Under “Resources,” select “Grantee/Partner Information”

4. 4 I. Financial Forms (cont’d) In the section, “For Grantees/Partners” Select “Oral Health Community Development” Click on “Go”

5. 5 Click on “Financial Forms” to download finance forms. Other grant-related documents will be uploaded in this section of the website. I. Financial Forms (cont’d)

6. 6 II. Invoice Reporting

7. 7 II. Invoice Reporting ( cont’d) Contact Name & Phone # line, please provide the name and phone # of the individual who is familiar with the expenses reported on the invoice form Must be based on actual expenses Include First 5 LA funds spent (do not include matching funds expenses) Input your First 5 LA Funds budget (do not include Matching Funds budget) in the Approved Budget Total column. Must be according to the approved budget line items Attach a budget justification memo with invoice Describe actual expenses (First 5 LA funds) incurred during month Do not need to provide justification of Matching Funds expended

8. 8 II. Invoice Reporting (cont’d) Once an invoice has been paid, Grantee CANNOT make adjustments to prior month ’ s expenses. Prior months ’ adjustments can be made only on the current month being invoiced (with justification). Justification of previous months ’ adjustments should be enumerated If budget changes have been made, please make sure to revise the “ Approved Budget Total ” column on the invoice form First 5 LA will place a HOLD on invoices, if grantee is not in compliance with the Grants Management Dept. (i.e., missing reports, proof of insurance, etc.) and/or Finance Dept. (i.e., error in calculations, unallowable %, etc.)

9. 9 II. Invoice Reporting (cont’d) Invoices are to be submitted on a monthly basis due the 20 th business day of each month for the previous month Must be signed by the agency authorized representative (listed on the Signature Authorization Form) Payments are processed within 20 workings days of the receipt of the grantee ’ s invoice, if invoice is properly completed

10. 10 II. Invoice Reporting (cont’d) All invoices must be mailed to: First 5 LA c/o Finance Dept. 750 N Alameda St., Suite 300 Los Angeles, CA 90012 Refer to the following sections in the contract for more information Section 8 (Monthly Financial Reporting) Section 9 (Payments and Expenditures)

11. 11 Rule 1: 10% Changes for line item budget of $5,000 or more:  You may increase/decrease the amount of the original budget line item by no more than 10% without submitting a formal budget modification III. Informal Budget Modification

12. 12 III. Informal Budget Modification (cont’d) Rule 2: $5,000 or less Changes for line item budget of less than $5,000:  You may increase/decrease any amount of the original budget line item up to the original amount When making a budget change, a memorandum explaining the changes must be submitted with the invoice

13. 13 Rule 1: 10% Example: Budget Line Item Amount Change 1.Personnel $250,000+ $25,000 2.Contracted Services 75,000+ 7,500 3.Space 20,000+ 2,000 Rule 2: $5,000 or less: Budget Line Item Amount Change 1.Supplies $4,000+ $4,000 2.Telephone 1,500+ 1,500 III. Informal Budget Modification (cont’d)

14. 14 Only two (2) Informal Budget Modifications/ Budget Changes will be accepted per contract year When making a budget change, a memorandum explaining the changes must be submitted with the invoice If Grantee exceeds two (2) budget changes, a Formal Budget Modification will be required Refer to Section 9.4 in the Contract for more information III. Informal Budget Modification (cont’d)

15. 15 IV. Formal Budget Modification Grantee must submit the following: Budget Modification Form Justification letter Revised Statement/Scope of Work (if modification impacts program activities)

16. 16 SAMPLE

17. 17 SAMPLE

18. 18 IV. Formal Budget Modification (cont’d) Formal Budget Modification due by the 1 st of the month – to be effective the 1 st of the following month, if approved First 5 LA will not process e-mailed or faxed budget modifications Formal Budget Modifications will not be processed during the first two months and the last 3 months of the contract year

19. 19 IV. Formal Budget Modification (cont’d) Only one (1) formal budget modification is allowed per contract year Contractor must obtain written approval from First 5 LA prior to incurring expenses as a result of a formal budget modification Refer to Section 9.4 of the contract

20. 20

21. 21 Formal Budget Modifications are not retroactive IV. Formal Budget Modification (cont’d)

22. 22 Plan the Formal Budget Modification with the understanding that the requested changes will be effective one month after submission, if approved. Example: Your agency plans to hire a Case Manager position with savings from the Equipment line item and the Formal Budget Modification is submitted to First 5 LA November 1st. The Formal Budget Modification will be effective, if approved, December 1st. Therefore, the Case Manager position should be budgeted for only 7 months (December – June). IV. Formal Budget Modification (cont’d)

23. 23 V. Financial Compliance Site Visit Agencies must demonstrate internal accounting controls and practice standard accounting principles First 5 LA will select budget line items to be reviewed Line item with the most funds will be examined: Capital Cost/Renovation Contractors will provide documentation to support expenses Record of Financial Compliance form Equipment Inventory Log To be scheduled after completion of first year

24. 24 VI. Program (SOW) Modification Requests for SOW modifications must be submitted in writing at least one (1) month prior to the requested effective date Requests for modifications will not be accepted during the first two (2) months and the final three (3) months of the contract year There is a limit of two (2) SOW modifications per contract year Refer to Section 7 in the contract

25. 25 VII. Contact Information Kristina Dixon SRI Staff Accountant (213) 482-7549 kdixon@first5la.org Camille Donnell MAA Staff Accountant (213) 482-7513 cdonnell@first5la.org Tamika Austin Staff Accountant II (213) 482-7532 taustin@first5la.org Jeffrey Samson Staff Accountant II (213) 482-9399 jsamson@first5la.org Finance Department

26. 26 VII. Contact Information (cont’d) Tina Chinakarn, MPH Program Officer First 5 LA 750 N. Alameda Street, Ste. 300 Los Angeles, CA 90012 Phone (213) 482-7521 Fax (213) 482-5903 tchinakarn@first5la.org Grants Management & Legal Compliance