Financial
Management
What you need to know…
Agenda
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Introductions
Webinar logistics
Financial management systems
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Fiscal Reporting
Requirements for cash reimbursement requests
Preparing for fiscal site visits
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OMB circulars – ‘Super Circular’
Accounting system
Policies and procedures
Common IG audit findings
Member support costs and grant drawdown
Administrative Costs
Close Outs
Program Income
Your Fiscal Team
• July Afable, Manager of Accounting & Finance
– 617-542-2544, x225
– jafable@mass-service.org
• Dan Glidden, CFO
– 617-542-2544, x227
– dglidden@mass-service.org
Financial Mgmt. Systems
– OMB Circulars – Super Circular
– Key characteristics
– Required policies and procedures
– Suggested policies and procedures
– Policies and Procedures and Form 990
– Electronic storage
OMB Super Circular
• This final guidance supersedes and streamlines
requirements from OMB Circulars A-21, A-87, A110, 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
http://www.gpo.gov/fdsys/pkg/FR-2013-1226/pdf/2013-30465.pdf
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)
Accounting System (cont.)
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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)
Policies and Procedures
Policies and Procedures
Policies and Procedures and Form 990
Electronic Storage
Electronic Storage
Electronic Storage
Fiscal Reporting
• Quarterly Due Dates
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October 15, 2014 (13-14 AND 14-15 through Sept. 30)
January 15 (through December 31)
April 15 (through March 31)
July 15 (through June 30)
October 15, 2015 (14-15 AND 15-16 through Sept. 30)
• Email PER Excel document with individual worksheets
updated through the required date
Reimbursement and Reporting
Key Definitions
• “Cover Sheet”/Request for Cash Reimbursement
Cover Page
• Budget Summary Worksheet
• PER/Periodic Expense Report
• Backup/Supporting Documentation
• FFR/Federal Financial Report
– MSA submits this report, aggregating information from
the PERS
Cover Sheet
Budget Summary Worksheet
PER
Supporting Documentation
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
Reimbursement Request Process
• Accurate reimbursement received by 15th processed
by 30th; received by 30th processed by 15th
– 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
Reimbursement Request Documents
• Reimbursement Request Cover Page
• Budget Summary Worksheet
• PER
• Supporting Documentation
Reimbursement Request Documents
• Complete reimbursement request includes:
– Cover sheet with original signature (fax, scan or mail)
– 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
COVER SHEET
Budget Summary
PER
Fiscal Site Visits
– Purpose
• MSA is responsible for ensuring the fiscal
integrity of organizations funded
• Ensure proper systems and safeguards
exist around the financial operations of an
AmeriCorps program
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
Fiscal Site Visits (cont.)
– Likely areas for review
• Member benefits
• Living allowance stipends
• Cash match
• In kind contributions
• Insurance
• Human resources/payroll
documentation
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
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I-9
W-4
Timesheets
Current wage authorization
Job description
Current personnel evaluation
Fiscal Site Visits (cont.)
– Recurring Fiscal Findings
• Staff Files missing I-9s
• Incomplete I-9s
• Staff Files missing Job Descriptions or
contracts
• Staff Files missing properly completed
payroll authorization forms
• No Staff timesheets
• Staff and member timesheets missing
supervisory signoff
• Electronic timesheet systems that were not
complaint
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
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
• Member stipends can not be pro-rated
• 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
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 (Trainings,
Travel).
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
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
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)
– Starting with the 14-15 program year, this is now
1.5%
– The only way to draw down all of Section III is to
draw down all of Section I and Section II
Section III - Calculations
Corporation Fixed Amount
Calculation: Section I + Section II
x 3.68%
A reimbursement request will
include this money
Commission Fixed Amount
Calculation: Section I + Section II
x 1.58%
A reimbursement request CANNOT
include this money.
Grant Close Out
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A grant is closed out when it is
over
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This process at CNCS documents:
– Total Funds drawn down
– Sub-grantee certification
– Residual equipment & supply
inventory
– Refunds as necessary
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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
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