1. FIRST 5 LA Baby-Friendly Hospital Project New Contractor Orientation September 20, 2011

2. Agenda Welcome & Introductions (9:00am to 9:10am) –Mercedes Perezchica, Program Officer Invoicing & Budget Modification (9:10am to 9:35am) –Tamika Austin, Staff Accountant Progress Reporting (9:35am to 9:50am) –Mercedes Perezchica, Program Officer Data Collection (9:50am to 10:10am) –Holly Campbell, Research Analyst Contract Compliance Guidelines (10:10am to 10:30am) –Jennifer Eckhart, Contracts Compliance Officer 2

3. 3 Invoicing and Budget Modification

4. 4 Financial Overview Invoice Reporting Informal Budget Modification/Budget Changes Formal Budget Modification Process

5. 5 Invoice Reporting

6. 6 Invoice Reporting (Cont.) 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 Must be according to the approved budget line items

7. 7 Invoice Reporting (Cont.) Once an invoice has been paid, contractor 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

8. 8 Invoice Reporting (Cont.) First 5 LA will place a HOLD on invoices, if contractor 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.) Invoices are to be submitted on a monthly basis due the 20 th business day of each month for the previous month

9. 9 Invoice Reporting (Cont.) 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 contractor’s invoice, if invoice is properly completed

10. 10 Personnel Cost Allocation

11. 11 Invoice Reporting (Cont.) Invoice forms can be downloaded from our website at: www.First5la.org/Resources/Grantee-Documents Then select “Contractors”

12. Invoices (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 12

13. 13 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 Informal Budget Modification

14. 14 Informal Budget Modification (Cont.) 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

15. 15 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 Informal Budget Modification (Cont.)

16. 16 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 contractor exceeds two (2) budget changes, a Formal Budget Modification will be required Informal Budget Modification (Cont.)

17. 17 Formal Budget Modification Process contractor must submit the following: Budget Modification Form Justification letter Revised Statement/Scope of Work (if modification impacts program activities)

18. 18 Formal Budget Modification Rule If the original line item is greater than $5000 and the change is greater is than 10% of the line item, contractor must obtain prior written approval before incurring any expenses requested in the modification.

19. 19 SAMPLE

20. 20 SAMPLE

21. 21 Formal Budget Modification Process (Cont.) 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

22. 22 Formal Budget Modifications are not retroactive Formal Budget Modification Process (Cont.)

23. 23 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). Formal Budget Modification Process (Cont.)

24. Progress Reporting 24

25. 25 The purpose of the progress report is to update First 5 LA on your contract on a quarterly basis until completed. Quarterly Progress Reports: Report on Scope of Work objectives and activities. –Actions taken to complete objective and activity –Progress/delays –Barriers/challenges –Solutions/lessons learned Submit Deliverables –Report on location/submission status of deliverables Progress Reports

26. 26 The progress report is a cumulative document.

27. Progress Reporting Tools Progress Report Cover Sheet (Attachment A) Progress Report Matrix (Attachment B)* Baby Friendly Hospital Project Progress Report Instructions Report Calendar *Attachment B is unique to each contractor. Your Program Officer will email this document to you. 27

28. Program (SOW) Modification SOW modifications can include (but are not limited to) addition/deletion of activities, and any changes that affect the budget, and/or delays in project All modifications are subject to approval by your First 5 LA Program Officer 28

29. Program SOW Modification (cont’d) Requests for SOW modifications must be submitted in writing at least 1 month prior to the requested effective date Requests for modifications will not be accepted during the first 2 months and the final 3 months of the contract year Limit of 2 SOW modifications per contract year 29

30. Data Collection 30

31. Contracts Compliance 31

32. Certificates of Insurance Certificate Holder, additional insured, and loss payee should be endorsed as: Los Angeles County Children & Families First - Proposition 10 Commission, its officers, agents, consultants and employees. 32 INSURANCE

33. Loss Payee should read as: “Loss Payee, as their interest may appear” 33

34. Coverages/Endorsements: – Commercial General Liability Additional Insured Endorsement required – Workers Compensation No endorsement required – Professional Liability Additional Insured Endorsement required – Business Auto Liability Loss Payee Endorsement required – Crime Loss Payee Endorsement required – Property Insurance Loss Payee Endorsement required 34 INSURANCE

35. Certificate of Insurance Must be maintained throughout Contract period Must have correct limits Must have correct endorsements 35

36. CONTRACTED SERVICES Memorandum of Understanding (MOU) Required for –All collaborative partners, subcontractors, and/or contracted services listed on Budget under the Contracted Services and Evaluation Sections Name and amount on MOU must be the same as on the Budget Forms MOU must be signed by authorized signatories from both parties MOU’s need to be set up before services are received. 36

37. ROLLOVER Only allowed the first year to the second year of a new project. Cannot be used for equipment and capital expenses the second year. No rollovers and formal budget modifications the first two months and the last quarter of the contract. 37

38. ROLLOVER PROCESS 60 days prior to contract expiration of the first year, Contractor submits a request to rollover funds with a detailed narrative (estimated amount) on letterhead signed by an authorized signatory. PO will review and notify contractor if the request has been approved. Upon approval of the final invoice, Contractor can determine exact amount of available funds to be rolled over. 38

39. ROLLOVER PROCESS (cont’d) After the first two months of the second year, Contractor can submit final budget with rollover amounts and a scope of work modification along with a formal request to rollover funds. Contracts Dept. will process the rollover as an amendment. 39

40. ROLLOVER PROCESS (cont’d) Please note that rollovers should be submitted on the 1 st of the month in order to be effective the 1 st of the following month. (Ex: submit November 1 st to be effective December 1 st ) Rollovers are NOT retroactive. 40

41. RENEWALS Approximately 60-90 days prior to contract expiration, the PO will send you a timeline of the contract renewal process and go over all required documents. Contract must be signed and submitted to First 5 LA no later than two weeks before the new contract start date. Contract will not be renewed until all required documents for the current year have been submitted. 41

42. 42 Contacts Mercedes Perezchica Program Officer (213) 482-7826 mperezchica@first5la.org Lucy Lin Program Officer (213) 482-7546 llin@first5la.org Tamika Austin Staff Accountant II (213) 482-7532 taustin@first5la.org Rommel Hilario Contract Compliance Officer (213) 482-7830 rhilario@first5la.org Holly Campbell Research Analyst (213) 482-5990 hcampbell@first5la.org