1. First 5 LA Grantee/Contractor Webinar

2. Thank you for joining us Submit any questions you may have via the chat feature First 5 Staff will address your questions during the presentation or may follow up afterwards if your question is specific to your program. Please refer to your handouts provided 2

3. Agenda 3 Compliance Overview Program Reporting First 5 LA Website NEW Fiscal Policies

4. Compliance

5. Contracts Board Approval Revisions to Grant Agreement Compliance Guidelines Insurance Memorandum of Understanding Q & A 5

6. Board Approval As a public agency, First 5 LA is seeking to provide greater transparency by requesting Commission approval of all contracts and grant agreements totaling $25,000 or more prior to execution. 6

7. Board Approval First 5 LA staff will place items for consent for Board review and approval. Please work with your Program Officer well in advance in order for your agency’s request to be processed in a timely manner. 7

8. Items that need final Board Approval New Contracts New Grants Renewals Amendments 8

9. Amendments: changes in the budget amount or contract period  No Cost Extensions (amendments that extend the end date)  Additional Funding (amendments that add funding)  Reduction of Funding (amendments that reduce funding) 9 Types of Amendments

10. Exceptions Exceptions: Formal Budget Modifications and Informal Budget Modifications do not go on the Consent Calendar if there is no change in the budget amount. Scope of Work Modification The information above is subject to change at any time. Please contact your program officer for more information 10

11. Grant Agreement and Contract Revisions Grant Agreements and Contracts have been revised. Please review carefully and contact your Program Officer if you have any questions. 11

12. Compliance Guidelines First 5 LA’s Compliance Guidelines will be incorporated as an Exhibit to your agreement. This document outlines criteria for which a grantee or contractor may be deemed noncompliant. Sanctions may include withholding of payment, termination of the contract, debarment, and recovery of funds. Please review this document carefully and notify your Program Officer if you have any questions or concerns. 12

13. Certificates of Insurance Certificate Holder to reference Commission as: Los Angeles County Children and Families First – Proposition 10 Commission, its officers, agents, consultants and employees Or abbreviated as: LA Cty Prop 10 Commn. 13

14. For grantees participating in Medi-Cal Administrative Activities, include the following endorsement under Commercial General Liability: County of Los Angeles, its Special Districts, its officials, officers, and employees 14 Certificates of Insurance

15. Insurance: Coverages/Endorsements 15  Commercial General Liability Additional Insured Endorsement  Workers Compensation  Professional Liability  Auto Liability Loss Payee Endorsement  Crime Loss Payee Endorsement  Property Insurance Loss Payee Endorsement  Self Insurance

16. Certificate of Insurance Must be maintained throughout the agreement period Must be maintained throughout the agreement period Must have correct endorsements Must have correct endorsements Must have correct limits Must have correct limits 16

17. 17 Memorandum of Understanding MOU’s are required for all collaborative partners, subcontractors, and/or contracted services listed on Budget under the Contracted Services and Evaluation Sections

18. Memorandum of Understanding MOU must be signed by authorized signatories from both parties Submit copies of MOUs to your Program Officer within 30 days of MOU execution. 18

19. Contracts Department Contacts Jennifer Eckhart Senior Contracts Compliance Officer (213) 482-7528 jeckhart@first5la.org Monica Benitez-Andrade Contracts Compliance Officer (213) 482-7836 mbenitez@first5la.org Rommel Hilario Contracts Compliance Officer (213) 482-7830 rhilario@first5la.org Martha Dominguez Contracts Compliance Officer (213) 482-7511 mdominguez@first5la.org 19

20. 20 Q & A

21. Program Reporting New system of grantee and contractor reporting Timeline: implemented by mid-year FY 12-13. – June 22: overview of data required for reporting – October/November: orientation with grantees and contractors on how to access and complete new report Web-page fill-in 21

22. First 5 LA’s website What’s New and Different o Research and Evaluation o Dashboard o Commission Meeting Documents o Press Room (First 5 LA logos) Style Guide for Grantees 22

23. Performance Based Contracts Thank you for your participation today Your Program Officer will contact you regarding fiscal reporting updates 23 OrganizationProject Name East Los Angeles CollegeFCC Higher Education Academy LA CareHealthy Kids LAUPECE Workforce Consortium LACOEECE Career Development Policy Project 211 LA CountyInformation, Resource, Referral Department Public HealthSubstance Abuse Treatment Services for High Risk Parents LAC-USCViolence Intervention Altamed Antelope Valley Community Clinic Clinica Romero St John’s Well Child & Family Center Northeast Valley Health Corporation Oral Health Capital Improvement

24. Invoicing & Budget Modifications

25. Financial Overview Invoice Reporting Informal Budget Modification/Budget Changes Formal Budget Modification Process 25

26. Invoice Template (Refer to handout) 26 First 5 LA 750 North Alameda Street, Suite 300 Los Angeles, CA 90012 (213) 482-5902 Initiative: Grant Agreement Number: Grant Agreement Period: Report Period: Agency Name: Program Name: Address: Contact Name & Phone #: YTDApproved Actual Budget Matching Cost Categories Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13 Total BalanceFunds (1) Personnel Cost - - - - (2) Contracted Services - - - - (3) Equipment - - - - (4) Printing/Copying - - - - (5) Space - - - - (6) Telephone - - - - (7) Postage - - - - (8) Supplies - - - - (9) Employee Mileage & Travel - - - - (10) Training Expenses - - - - (11) Evaluation - - - (12) Capital Cost/Renovation - - - - (13) Other Expenses - - - - (14) Indirect Costs * - - - - Total Agency Expenses - - - - - - - - - - - - - - - - Total First 5 LA Payments - Payments (over) under Expenses - - - - - - - - - - - - - * Indirect Costs MAY NOT exceed 10% of Personnel cost, excluding Fringe Benefits. I CERTIFY THAT THIS CLAIM IS IN ALL RESPECTS TRUE, CORRECT, SUPPORTABLE BY AVAILABLE DOCUMENTATION, AND IN COMPLIANCE WITH ALL TERMS/CONDITIONS, LAW AND REGULATIONS GOVERNING ITS PAYMENT. Submit Invoice to: First 5 LA Signature of Authorized RepresentativeDate Attn: Finance Dept. 750 N. Alameda St., Suite 300 Los Angeles, CA 90012 Phone: (213) 482-5902 Print Name & Title

27. Invoice Reporting Contact Name & Phone Number Please provide the name and phone number of the individual who is familiar with the expenses reported on the invoice form 27

28. Invoice Reporting Must be based on actual expenses Must be according to the approved budget cost categories 28

29. Invoice Reporting Once an invoice has been paid, Grantee/Contractor CANNOT make adjustments to prior month’s expenses. Prior months’ adjustments can be made only on the current month being invoiced with justification 29

30. Invoice Reporting Justification of adjustments in current invoice should be in a memo on agency’s letterhead. Justification of previous months’ adjustments should be listed one by one if applicable (do not change amounts in previous months paid). If budget changes have been made, please make sure to revise the “Approved Budget Total” column on the invoice form 30

31. 31 First 5 LA can place a HOLD on invoices, if grantee is not in compliance with invoicing procedures. Missing reports Proof of insurance Error in calculations Unallowable percentages No MOUS Negative Balances Invoice Reporting

32. 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 32

33. Personnel Cost Allocation (refer to handout) 33

34. Invoice Reporting 34 Invoice forms can be downloaded from our website: www.first5la.org/Grantee-Documentswww.first5la.org/Grantee-Documents All invoices must be mailed to: First 5 LA c/o Finance Dept. 750 N Alameda St., Suite 300 Los Angeles, CA 90012

35. Grantee must submit the following: Informal budget modification justification should be on agency’s letterhead and signed by the authorized signatory Informal budget modification Summary signed by authorized signatory Revised Statement/Scope of Work if activities are impacted 35 Informal Budget Modification Process

36. Informal Budget Modification Summary (refer to handout) 36 Agreement # Informal Budget Modification Summary Agency: Project Name: Agreement Period: Cost Category Most Current "Approved" First 5 LA Funds Amendment AmountTotal Modified AmountMatching Funds 1Personnel - - - - 2Contracted Svcs (Excluding Evaluation) - - - - 3Equipment - - - - 4Printing/Copying - - - - 5Space - - - - 6Telephone - - - - 7Postage - - - - 8Supplies - - - - 9Employee Mileage and Travel - - - - 10Training Expenses - - - - 11Evaluation - - - - 12Capital Cost/Renovation - - - - 13Other Expenses (Excluding Evaluation) - - - - 14*Indirect Costs - - - - TOTAL: $0 Fiscal Contact PersonDate Agency Authorized SignatureDate Phone # *Indirect Costs MAY NOT exceed 10% of Personnel cost, excluding Fringe Benefits. Additional supporting documents may be requested

37. Budget Modification Justification (refer to handout) 37 Can be used for both Formal and Informal modifications

38. Changes to budget cost categories of more than $5,000 You may move up to 10% from any budget cost category to an e xisting cost category or multiple cost categories. 38 Informal Budget Modification Rule 1: 10%

39. Informal Budget Modification Rule 2: $5,000 or less Changes for cost category budget of $5000 or less You may move up to the total amount from any budget cost category to an existing budget cost category or multiple cost categories. 39

40. Informal Budget Modification Rule 1: 10% Example: Budget Cost Category AmountChange New Amount 1.Personnel $250,000-$25,000 $225,000 2.Contracted Services $75,000+$15,000 $90,000 3.Supplies $3,000 + $10,000 $13,000 Rule 2: $5,000 or less: Budget Cost Category Amount Change New Amount 1. Supplies $4,000 -$4,000 $0 2. Telephone $1,500 +$3,000 $4,500 3. Postage $ 100 +$1,000 $1,100 40

41. Informal Budget Modification Only two (2) Informal Budget Modifications/Budget Changes will be accepted per contract period. If Grantee/Contractor exceeds two (2) informal budget modifications, a Formal Budget Modification will be required. Informal budget modifications are accepted at any time during the contract period. 41

42. Formal Budget Modification Process Grantee must submit the following: Budget Modification Form Budget Modification Justification Memo Revised Statement/Scope of Work (if modification impacts program activities) 42

43. If the original cost category is greater than $5000 and the change is greater is than 10% of the cost category, grantee/contractor must obtain prior written approval before incurring any expenses requested in the modification. 43 Formal Budget Modification Rule

44. 44 SAMPLE Formal Budget Modification (refer to handout) Agreement # Page : 1 of 10 Formal Budget Modification Summary Agency: Project Name: Agreement Period: Cost Category Most Current "Approved" First 5 LA Funds Amendment AmountTotal Modified Amount Matching Funds 1Personnel 0000 2Contracted Svcs (Excluding Evaluation) 0000 3Equipment 0000 4Printing/Copying 0000 5Space 0000 6Telephone 0000 7Postage 0000 8Supplies 0000 9Employee Mileage and Travel 0000 10Training Expenses 0000 11Evaluation 0000 12Capital Cost/Renovatoin 0000 13Other Expenses (Excluding Evaluation) 0000 14*Indirect Costs 0000 TOTAL:$0 First 5 LA Authorized Staff Only Fiscal Contact PersonDate Agency Authorized SignatureDate Program Officer Phone # Finance *Indirect Costs MAY NOT exceed 10% of Personnel cost, excluding Fringe Benefits. Additional supporting documents may be requested

45. 45 SAMPLE Formal Budget Modification (refer to handout)

46. Formal Budget Modification Process Formal Budget Modification draft 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 final budget modifications via e-mail/fax. Formal Budget Modifications will not be processed during the first two months and the last quarter of the contract year. 46

47. Formal Budget Modification Process Formal Budget Modifications ARE NOT retroactive 47

48. Formal Budget Modification Process 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). 48 Plan the Formal Budget Modification with the understanding that the requested changes will be effective one month after submission, if approved.

49. Information Sheets 49 Invoices Formal Budget Modifications Informal Budget Modifications

50. Q & A 50

51. Finance Department Contacts 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 Faustino Genio Staff Accountant II (213) 482-9399 fgenio@first5la.org 51