1. Financial Management What you need to know…

2. Agenda –Introductions –Webinar logistics –Financial management systems Uniform guidance – ‘Super circular’ Accounting system Policies and procedures –Fiscal reporting –Requirements for cash reimbursement requests –Preparing for fiscal site visits Common IG audit findings –Member support costs and grant drawdown –Administrative costs –Close outs –Program income

3. Your Fiscal Team July Afable, Manager of Accounting & Finance –617-542-2544, x225 –jafable@mass-service.orgjafable@mass-service.org Dan Glidden, CFO –617-542-2544, x227 –dglidden@mass-service.orgdglidden@mass-service.org

4. Financial Mgmt. Systems –Uniform guidance – Super circular –Key characteristics of highly effective financial management systems –Required policies and procedures –Suggested policies and procedures –Policies and procedures and Form 990 –Electronic storage

5. OMB Uniform Guidance - Super Circular 2 CFR Part 200 and 2 CFR Part 2205 This final guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A- 110, and A-122 (which have been placed in OMB guidances); Circulars A-89, A-102, and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. Effective date 12-26-2014 – all federal awards made on or after this date Raises Single Audit threshold to $750,000 from $500,000 – for years ending 12-31-2015 or after Other changes…

6. OMB Uniform Guidance - Super Circular Internal Controls –200.303 These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ (the Green Book) issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO ).

7. OMB Uniform Guidance - Super Circular New Requirement to Record Your Indirect Cost Rate in eGrants –Recipients must record the indirect cost rate method and rates which they will be using on their awards –Use this link to access instructions on how to record your rate in eGrants http://www.nationalservice.gov/sites/default/files/res ource/eGrants_Indirect_Cost_Rate_Instructions_Final. pdfhttp://www.nationalservice.gov/sites/default/files/res ource/eGrants_Indirect_Cost_Rate_Instructions_Final. pdf

8. Accounting System In order to meet the CNCS reporting standards … Your Accounting System must be capable of: –Distinguishing grant versus non-grant related expenditures –Identifying costs by program year –Identifying costs by budget category (chart of accounts) –Differentiating between direct and indirect costs (administrative costs)

9. Accounting System (cont.) – Accounts for each award/grant separately – Maintains Federal/non-Federal matching funds separately from grant funds – Records in-kind contribution as both revenues and expenses – Directly correlates to financial reports submitted to MSA (PERs) – And…

10. Policies and Procedures

12. Policies and Procedures and Form 990

13. Electronic Storage

16. Electronic Storage from Uniform Guidance §200.335 Methods for collection, transmission and storage of information. –In accordance with the May 2013 Executive Order on Making Open and Machine Readable the New Default for Government Information, the Federal awarding agency and the non-Federal entity should, whenever practicable, collect, transmit, and store Federal award-related information in open and machine readable formats rather than in closed formats or on paper. The Federal awarding agency or pass-through entity must always provide or accept paper versions of Federal award-related information to and from the non-Federal entity upon request. If paper copies are submitted, the Federal awarding agency or pass-through entity must not require more than an original and two copies. When original records are electronic and cannot be altered, there is no need to create and retain paper copies. When original records are paper, electronic versions may be substituted through the use of duplication or other forms of electronic media provided that they are subject to periodic quality control reviews, provide reasonable safeguards against alteration, and remain readable.

17. Fiscal Reporting Quarterly Due Dates –October 15, 2015 (14-15 AND 15-16 through Sept. 30) –January 15 (through December 31) –April 15 (through March 31) –July 15 (through June 30) –October 15, 2016 (15-16 AND 16-17 through Sept. 30) Email PER Excel document with individual worksheets updated through the required date Reports must be sent in by the due dates, no exceptions –MSA also is required to file reports with CNCS

18. Reimbursement and Reporting Key Definitions Cover Sheet/Request for Cash Reimbursement Cover Page Budget Summary Worksheet PER/Periodic Expense Report Backup/Supporting Documentation –General ledger report that clearly supports numbers on PER –Actual documentation for numbers on PER FFR/Federal Financial Report –MSA submits this report, aggregating information from the PERS

19. Reimbursement Request Process At least quarterly –At minimum, request funds 30 days after submission of PER (except for July 15) –Encouraged to request more frequently Payments made via check or electronic fund transfer (EFT) –EFT requires small transaction fee deducted from reimbursement –Contact July to discuss/choose EFT

20. Reimbursement Request Process Accurate reimbursement received by 15 th processed by 30 th ; received by 30 th processed by 15 th –Inaccurate reimbursements returned for revision and will be resubmitted for processing in the next reimbursement cycle –MSA adheres to 15 day processing timeline to account for staff capacity, time off, etc. MSA does not advance funds

21. Reimbursement Request Documents Complete reimbursement request includes: –Cover sheet with signature (electronic okay) –Budget summary worksheet printout –PER printout for current request Also email PER to your Program Officer at MSA –General ledger, reconciliation report, other backup documentation –Individual member hours to date/accountability log Your PO person likely will send the log Reimbursements will not be processed until all components are received Do not retroactively change individual PERs after reimbursement was paid

22. COVER SHEET

23. Budget Summary

24. PER

25. Supporting Documentation

26. Fiscal Site Visits Purpose MSA is responsible for ensuring the fiscal integrity of organizations funded Ensure proper internal controls, systems and safeguards exist around the financial operations of an AmeriCorps program FSV is not an audit We review current systems and make recommendations on how to strengthen the systems Limited transaction testing

27. Fiscal Site Visits (cont.) Includes, but not limited to: Review of organization's internal control structure Review of prior audit reports and management letters Review of progress made from any prior audit and management letter finding(s) Review of recent request for reimbursement including all support documentation –Grant and match

28. Fiscal Site Visits (cont.) Likely areas for review Member benefits Living allowance stipends Cash match –Committed –Collected In kind contributions Insurance Human resources/payroll documentation

29. Fiscal Site Visits (cont.) –Likely areas for review (cont.) Financial policies and procedures Cost allocations Program analysis –Actual vs. Budget reports Program documentation – signed contract and provisions Staff charged to grant –I-9 –W-4 –Timesheets –Current wage authorization –Job description –Current personnel evaluation »This is a key characteristic of a highly effective financial management system

30. Fiscal Site Visits (cont.) –Recurring Fiscal Findings Staff Files –Incomplete or missing I-9s –Missing job descriptions or contracts –Missing properly completed payroll authorization forms Timesheets –Missing –Staff and member timesheets missing supervisory signoff Electronic timesheet systems that were not compliant

31. Member Support Costs According to the AC Provisions –Regardless of member type: Stipends are not determined by the number of hours served, it’s a flat rate Stipends can only be paid while a member is serving Timesheets properly completed –Signed by supervisor and member –Service, training and fundraising hours segregated

32. Member Support Costs (cont.) –Guidance from CNCS A member stipend stays the same for the duration of their service All members with the same position description must be paid identical stipends and receive the same benefits – travel, training Member stipends can not be pro-rated –If a member starts late, the stipend cannot be increased Member stipends can not be paid in lump sums If members are suspended through a whole pay period they are not eligible for that stipend

33. Grant Drawdown –Commissions and AmeriCorps Programs do not spend all of their Federal money each year. –Most of the unexpended funds are from Section II Member Support Costs and other costs associated with members (Health care, trainings, travel).

34. Grant Drawdown (cont.) Section I –Reconcile budgeted amount with year to date expenses –Forecast projected expenditures –File amendment with Program Officer Section II –Start program year with full enrollment –Fill slots vacated by members who served less than 30% of their hours –Convert Member Slots

35. Grant Drawdown (cont.) –Budget Amendments Contact your AmeriCorps Program officer before initiating a budget amendment All provisions still apply to budget amendments Include justification with budget amendment Budget amendments are subject to review Budget amendments can be rejected

36. Section III: Admin. Costs –A fixed percentage of Section I + Section II designed for administrative costs –Composed of Corporation Fixed Amount (this is yours) Commission Fixed Amount (this is MSA’s) –14-15 program year – 1.5% –15-16 program year – 2.0% –Increase allows MSA to better meet your training and TA needs –The only way to draw down all of Section III is to draw down all of Section I and Section II

37. Section III - Calculations

38. Grant Close Out A grant is closed out when it is over This process at CNCS documents: –Total Funds drawn down –Sub-grantee certification –Residual equipment & supply inventory –Refunds as necessary Process –MSA checks total funds drawn down for program and compares to final program FFR/PER –MSA sends close out letter/instructions with forms to programs and amounts drawn down –Program completes forms and reconciles its total draw down with MSA amount provided –Program submits documentation to MSA within 30 days –MSA aggregates all programs and submits one package to CNCS

39. Program Income –Definition Revenue earned as a direct result of activities funded under the grant –Program income must be used for the purposes of the grant incurred during the project period –Program income on hand must be used to defray eligible program costs before requesting funds