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First 5 LA Invoicing & Budget Modification Workshop

This workshop provides an overview of invoice reporting, informal and formal budget modification processes, and financial compliance requirements. Learn how to accurately report expenses on invoices and make budget changes within specified limits.

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First 5 LA Invoicing & Budget Modification Workshop

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  1. First 5 LAInvoicing & Budget Modification Workshop FY 2009-2010

  2. Financial Overview • Invoice Reporting • Informal Budget Modification/Budget Changes • Formal Budget Modification Process • Financial Compliance Site Visit

  3. Invoice Reporting SAMPLE

  4. 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

  5. Invoice Reporting (Cont.) • Once an invoice has been paid, Grantee 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 • First 5 LA will place a HOLD on invoices, if grantee 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.)

  6. Invoice Reporting (Cont.) • Invoices are to be submitted on a monthly basis • due the 20th 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

  7. Invoice Reporting (Cont.) • All invoices must be mailed to: First 5 LA c/o Finance Dept. 750 N Alameda St., Suite 300 Los Angeles, CA 90012 • Invoice forms can be downloaded from our website: www.first5la.org

  8. Informal Budget Modification 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

  9. 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

  10. Informal Budget Modification (Cont.) Rule 1: 10% Example: Budget Line Item Amount Change • Personnel $250,000 + $25,000 • Contracted Services 75,000 + 7,500 • Space 20,000 + 2,000 Rule 2: $5,000 or less: Budget Line Item Amount Change • Supplies $4,000 + $4,000 • Telephone 1,500 + 1,500

  11. Informal Budget Modification (Cont.) • 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 Grantee exceeds two (2) budget changes, a Formal Budget Modification will be required

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

  13. SAMPLE

  14. SAMPLE

  15. Formal Budget Modification Process (Cont.) • Formal Budget Modification due by the 1st of the month – to be effective the 1st 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

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

  17. Formal Budget Modification Process (Cont.) • 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).

  18. Financial Compliance Site Visit • Agencies must demonstrate internal accounting controls and practice standard accounting principles • First 5 LA will select budget line items to be reviewed • Grantees will provide documentation to support expenses • To be scheduled after completion of first year

  19. Personnel Line Item will be selected (this line item will always be reviewed) Total Personnel expenses billed to First 5 LA will be verified against: General Ledger Payroll Records (ADP, Paychex, and other) Personnel files will be checked against the approved budget (personnel titles, salaries, and dates employees were assigned to First 5 LA program, timesheets, etc.) Financial Compliance Site Visit (Cont.)

  20. Financial Compliance Site Visit (Cont.) • Other forms required for the financial compliance site visit: • Personnel position assigned to First 5 LA • Payroll reconciliation worksheet • Record of Financial Compliance form

  21. Finance Department

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