California Department of Public Health

1. California Department of Public Health Local Food and Nutrition Education Fiscal Orientation

2. Agenda • Welcome • Intro of Network staff • WebEx features – Chris F. • Download forms (PL and DPA pocket guide) • Will have a 10 minute break ½ way through • Training will be split into 4 parts 1. Network general info. - CP 2. Budget Justification - CV 3. Budget Justification (cont.) - CP 4. Contract “housekeeping” - CV

3. Goal of Fiscal Training To ensure that our LFNE contractors have an accurate understanding of the fiscal requirements of their Network contract.

4. A Little About the Network Program . . . .

5. Network for a Healthy (Network) CaliforniaFunding Structure

6. Target Audience • Participants are receiving or eligible for USDA SNAP Program/food stamps (formerly Food Stamp Program) • Census tracts w/ at least 50% of the target audience at or below 185% of the Federal poverty level • Individual schools: 50% or more free and reduced lunch program

7. Roles • Contract Manager (CM) • Program Manager (PM) • Contractor

8. Contract Manager (CM) • Budget justifications, budget adjustments and source documentation review • Contract, fiscal and administrative issues (including negotiations and processing of contract) • Payment of invoices • MOUs and Subcontractor Agreements • Equipment management/tagging • Travel approval (in discussion with PM) • Conduct desk reviews/site visits • Provide ongoing TA

9. Program Manager (PM) • Assistance in development and approval of SOW • Clarification of USDA Guidelines for SOW activities • Review of SOW progress reports and Final Progress Report Analysis (FPR) • Conduct site visits • Provide ongoing technical assistance

10. ContractorFiscal Responsibilities • Compliance with USDA rules and regulations. • Documentation, completion and timely submission of required fiscal reports. • Prepare and respond to Network and USDA site visits. • Respond to Network requests for information. • Retain all records related to contract for 3 years after the end of the contract term.

11. ContractorProgram Responsibilities • Conduct all Network activities per USDA Guidelines • Complete all objectives and activities in SOW as scheduled. • Full completion of Semi Annual Activity Report (SAAR),Final Progress Report (FPR), and Interim Progress Reports • Provide assistance and information to the Network team, PCR team or USDA during site visits

12. SNAP-Ed Plan Guidance(formerly FSNE) • Provides USDA Guidance • Allowable and Unallowable activities. • Available in October on Network website.

13. Overview of Budget Justification

14. Budget Justification • Gives the basis for the costs in your budget. • Must correspond directly to SOW • Prior CM/PM authorization required for any changes • Part of a contractual agreement between Contractor and California Dept. of Public Health—must be adhered to.

15. Budget Justification Nine Line Items • Personnel • Fringe Benefits • Operating Expenses • Equipment Expenses • Travel & Per Diem • Subcontracts • Other Costs • Indirect Costs • Total Costs

17. Personnel • Name and Title of Staff • Position description of each staff (USDA approved descriptions recommended) • % of time spent on allowable activities • FTE or hourly rate must be based on 2080 hours/year.

18. Staff Time Reporting Requirements • Document time spent on ALLOWABLE nutrition education activities (prime and subs) • 100% FTE of time on Network activities: Semi-Annual Certificate of Activity • Less than 100% of time on Network activities: Weekly Time Log Approved Quarterly Time Study (to be approved in Plan) • Expenses based on actual time and actual salary rate per employee.

20. Weekly Time Log • Clearly delineate documented time for each activity in 15 minute increments. • Activities must be listed on reverse side of all logs • Must be signed by Staff and Supervisor (Project Coordinator may sign) • Can be customized with prior CM/PM approval

25. B. Fringe Benefits • Records actual expenditures associated with fringe benefits for each employee. • Average fringe can be used during budgeting, actuals used when reporting to Network. • Based on hours documented using time log for each employee. • Must include a list of items covered under Fringe in Budget Justification.

26. C. Operating Expenses • Routine and ongoing expenses (e.g. postage, phone, routine copying, office supplies). • Supported by vendor invoices, bills, receipts • Facility costs must be based on actual expenses (not fair market value or realized cost)—must include a formula for the basis on the budget justification. • Must be prorated by FTE of staff incurring these expenses.

27. Calculating Operating Expenses • Prorating formula FTE of SNAP-Ed Staff = % to prorate for FTE of Organization Staff % to prorate for SNAP-Ed x monthly cost = budget cost for SNAP-Ed • Historical costs - Costs are based on previously documented expenses. This is best for determining higher than average costs. • Allocated costs - Costs are based on set amount of expenses assigned to individual staff within an organization.

28. D. Equipment • Non-expendable property used to conduct eligible nutrition education activities • Must be prorated by FTE of staff using the equipment (office furniture, computer, printer, etc.) • Costs must be supported by vendor invoices, bills, receipts • Prior written authorization is required by CM/PM for any equipment purchases not in the approved Budget Justification

29. Equipment Tags After purchase of equipment with Federal Share funds: • Contractor must complete a Contractor Equipment Purchased with CDPH Funds form (Exhibit J) and submit to assigned CM along with invoice that includes equipment expense. • CM will obtain tags from CDPH for equipment and provide them to the contractor with instructions on their placement. • Immediately report damaged, lost or stolen equipment so that proper procedures can be followed.

31. What Requires Equipment Tags? Commonly purchased items: • Minor Equipment are items under 5K • Computer/laptop (State tag) • Bookcase (blank tag) • Kitchen appliances (blank tag) • TV/DVD Player (State tag) • Storage cabinet (blank tag)

32. Equipment (cont.) • At close of each contract term, complete Inventory/Disposition of CDPH Funded Equipment form (Exhibit K) and submit to assigned CM.

33. Additional information re: Computers/laptops purchased w/ Network Federal Share funds: • Contractors must ensure that State-approved encryption and anti-virus software is installed as per Program Letter 09-03 for all computers used to conduct State business. • Installation of this software will ensure personal/confidential data are secured using current State standards.

34. E. Travel and Per Diem • Network sponsored trainings, conferences, and meetings are 100% allowable for all staff. • All Non-Network sponsored trainings conferences, meetings must be pre-approved by your CM/PM utilizing the Non-Network Sponsored Travel Pre-Approval Form and prorated appropriately. • All Travel expenses must adhere to current DPA rates (included as Exhibit G of your contract). This applies to the Contractor as well as all Subcontractors.

36. Travel and Per DiemDocumentation Travel logs/claims for each staff (separately) which lists the following: • Name/title of person traveling • Date(s) of travel • Start and end time • Purpose and location of travel • Hotel, parking, airline and any other receipts • An agenda must accompany the travel log/claim.

37. DPA Rates/Guidelines: • Breakfast ($6), Lunch ($10), Dinner ($18), Incidentals ($6) – trip is 24 hours or more • Mileage to be charged at 55 cents/mile • Most in-state lodging to be charged at $84/night. Alameda, SF, San Mateo, and Santa Clara counties to be charged @ $140/night. LA and San Diego to be charged at $110/night. • Current DPA rates always to be used

38. F. Subcontracts Each Subcontractor requires: • Budget Justification and description of service • Signed Subcontractor Agreement (Federal Share) • Adherence to all USDA/CDPH guidelines and rules • Documentation retention for 3 years

41. Also include w/ Sub Agreement: • Copy of the Exhibit D (F), paragraph 5, page 7 “Special Terms and Conditions” for Federally-funded contracts • Information confidentiality and security requirements • Information systems security requirements for projects • These documents are found in contractor’s Network contract and are to be housed w/ sub agreement

42. G. Other Costs • Non-routine, occasional or one time expenses: Publications/materials/videos Food for demonstrations/taste testings • Must be itemized on the budget justification and show the basis for the costs. • Nutrition Education Materials for Critical Program Delivery formerly known as Nutrition Education Reinforcement Items (NERI) — must be $4 or less each. • Must be documented by vendor invoices/receipts.

43. H. Indirect Costs • Expenses not directly associated with deliverables (bookkeeping and payroll services, janitorial services, insurance, etc.). • Should be based on organization’s Federally Negotiated Indirect Rate whenever possible. • Actual expenditures must be used and documented with a copy of organization’s indirect cost rate and a list of all items billed under this line item. • If no Federally Negotiated Indirect cost rate—cost cannot exceed 25% of total personnel and fringe expenses. (This formula must be approved by your CM.)

44. Invoicing and Budget Adjustments

45. Invoice Documents • Must be based on actual expenses incurred during the quarter—to the penny, no rounding • Correspond directly with the approved budget justification • Be substantiated by supporting documentation (receipts must match invoice) • Submit original documents signed in blue ink by the authorized contract representative • No correction fluids or tapes • Fill in all information on form (date, contract number, contract name, etc.)

46. Federal Share Invoice • Invoices cannot list negative numbers • Over-expenditure of a line item requires a Budget Adjustment Request (BAR) and written justification • Supplemental invoices must be utilized for expenses not originally billed in a particular month/quarter. Do not bill these expenses on the next quarter. • Invoice only documented and allowable expenses • Please check your math

48. Budget Adjustment Request (BAR) • BAR used to revise line item amounts in Federal Share budget • Cannot exceed 15% of total agreement per line item or cumulative maximum of $100,000 per year • Total Federal Share budget amount per year can not increase or decrease • Must be programmatically justified and not alter SOW • Requires prior written approval from CM/PM • Submit prior to 4th quarter invoice