Fiscal and Administrative Training
for New DFC Grantees
Thursday, October 18, 2012 Net Conference
Frequently Asked Questions
Below are frequently asked questions from the 2012 and prior New Drug Free
Communities (DFC) Grantee Fiscal and Administrative Trainings. The “Q&As” are
organized by the three presentation categories – Payment Management; Financial
Management; and Grants Management. SAMHSA and Program Support Center/Payment
Management answers are limited to information posed in the participants’ questions.
Grantees must know and understand the terms and conditions of award and are
encouraged to contact their assigned SAMHSA and Program Support Center/Payment
Management representatives for follow up, clarification or additional information and
questions.
Payment Management
Q. How do I access the Direct Deposit Form?
A. The Direct Deposit Form can be downloaded from the Program Support Center
Division of Payment Management’s (DPM) home page at www.dpm.psc.gov. From the
links on the left hand side, go to grant recipient information. From the drop down menu
you select Forms and you’ll see the Direct Deposit Form listed along with instructions on
how to complete the form along with the DPM mailing address.
Q. Is there a deadline for submitting the Direct Deposit Form and how will we know
when our account information at our bank has been set-up?
A. There is no specific deadline for submitting the form; however, as soon as you receive
your notice of award we encourage you to submit the Direct Deposit Form so you will be
able to access your grant funds. After the form is received it generally takes 4 or 5 days
to get your account set up in the Payment Management System (PMS). Once the account
set-up is completed a DPM account representative will notify you either by certified mail,
fax or e-mail of the PMS access information along with information about drawing funds
through the system and the required financial reporting.
Q. We are a year six DFC grantee. Do we need to submit new Direct Deposit and
Payment Management System (PMS) sign up forms to begin the new grant cycle?
A. No. If you currently have a grant award from HHS you will not be assigned a new
PMS Account Number unless your banking information has changed, i.e., you have a
new account number or opened an account at a new bank. Otherwise, your current award
would be posted to your current account and you would draw funds as usual.
Q. When we submit our request for funds, how long does it take to receive the funds?
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Frequently Asked Questions
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A. Requested funds are deposited into the grantee’s bank account by close of the next
business day.
Financial Management
Q. How are weekly salaries drawn down if the payment must be made within 72 hours?
A. As stated above, requested funds, or drawdowns, are deposited into the grantee’s
bank account by close of the next business day. Grantees should plan their
drawdowns to coincide within 72 hours of making their disbursement of Federal
funds (e.g., salary disbursements).
Q. Do we need to open a separate checking account in order to draw down funds?
A. Grantees are not required to open a separate bank account where grant funds are
deposited; however, grantees are required to separately account for and report on all
grant revenues and expenditures.
Q. How much documentation is required for in kind match contributions?
A. Documentation to support all cost sharing or matching contributions must be
maintained, similar to Federal expenditures. That documentation may be audited by
SAMHSA. Non-Federal match reported by the grantee that is inadequately documented
according to the administrative requirements may be disallowed along with a
proportionate share of the Federal grant expenditures. SAMHSA may request recovery
of any disallowed costs.
Q. Is the two-signature for checks over $1,000 negotiable? We have a small staff.
A. Control over cash is an important measure to prevent theft or misuse of Federal and
grantee funds. The two-signature requirement for checks over $1,000 is designed to
reduce that risk and safeguard assets. If the control is not feasible due to unusual or
extreme circumstances, compensating controls may be approved on a case-by-case basis
upon SAMHSA’s review of board-approved policies and procedures developed and
implemented by the grantee organization.
Q. My organization does not meet the requirements to have an OMB Circular A-133
audit. The financial capability review (FCR) requests most recent year-end financial
statements, etc. Can you please explain this in more detail?
A. If an organization did not have an OMB Circular A-133 audit because it did not have
expenditures of $500,000 or more in a year, then audited financial statements may be
submitted for the FCR. If audited financial statements are not available, a recently filed
IRS Form 990 may be substituted. Note: your ability to drawdown funds will not be
affected while the FCR is in process.
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Q. How do we check the exclusions list?
A. The exclusions lists are to be checked to ensure staff and individuals or entities
selected for procurement are not prohibited from receiving Federal funds. The lists can
be found at the GSA Excluded Parties List System at https://www.epls.gov/ and the HHS
OIG List of Excluded Individuals/Entities at http://exclusions.oig.hhs.gov/. SAMHSA
requires that your organization check the exclusions lists for key grant staff as well and
may request a certification from your organization.
Q. How is the indirect cost rate obtained?
A. You may apply for an indirect cost rate from your cognizant Federal agency, usually
the agency with the most funding to your organization. If that is HHS, you are to contact
the appropriate office in the HHS Division of Cost Allocation to begin the process for
establishing an indirect cost rate. A list of the offices was included with your application
package and is also available through the HHS website at http://rates.psc.gov/. Search
contact information and office locations.
Q. May a contractor that wrote the grant application for an organization become a
contractor under the grant?
A. According to Federal administrative requirements which are a term and condition of
award, contractors that develop or draft grant applications are to be excluded from
competing for procurements under the award. This includes evaluators. All procurement
transactions shall be conducted in a manner to provide open and free competition.
Grantees must be alert to conflicts of interest as well as noncompetitive practices among
contractors that may restrict or eliminate competition. For further information, see
45 CFR 74.42 & 43 and 45 CFR 92.36. If you require clarification on this topic please
contact your assigned SAMHSA Grants Management Specialist.
Q. Are donated monies considered program income?
A. Donated monies are generally not considered program income. Program income is
income earned through grant supported activities, such as fees for services performed
under the grant. Cash donations may be considered for the match requirement.
Grants Management
Q. Who do I contact in terms of making budget revisions? For example, something that
we would now like to do hasn’t been included in the original budget.
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A. For budget revisions you would send a request to the assigned SAMHSA Grants
Management Specialist. Please provide a detailed email about what it is that you need to
modify.
Q. If we have key staff changes from the original grant submission does this need to be
approved?
A. Yes. Submit the request through your assigned Grants Management Specialist.
Q. My Notice of Grant Award says we must complete the FFR SF 425 by Jan 30, 2013.
Is this the only financial report we are required to file all year?
A. No. The Federal Financial Report (FFR or SF 425) is the annual report. You are also
required to file a quarterly report also called the FFR but it is the FFR Federal Cash
Transaction Report. The quarterly FFR must be filed within 30 days of the end of
each quarter.
Q. Regarding approval of new staff, we included a position description for the Program
Coordinator, and indicated that we would fill this position if the grant was successful.
Does filling this position now require approval from our GMS? Or can we go ahead and
hire a Program Coordinator?
A: Submit a request to your assigned Grants Management Specialist with a justification
and the resume of the individual under consideration for the position.