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Financial Management

Financial Management. Julie Peterson Financial Analyst CDBG Program. Summary of Payment P rocess. Execute grant agreement and funding approval Submit authorized signature forms Submit designation of depository forms Submit Automatic Clearinghouse Application (ACH/EFT application)

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Financial Management

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  1. Financial Management Julie Peterson Financial Analyst CDBG Program

  2. Summary of Payment Process • Execute grant agreement and funding approval • Submit authorized signature forms • Submit designation of depository forms • Submit Automatic Clearinghouse Application (ACH/EFT application) • If necessary, complete Vendor Input form • Submit first complete request for funds (RFF)

  3. Financial Forms to be Submitted ASAP • Authorized Signature Form (SFM01). • Submit with original signatures. • Designation of Depository Form (SFMO2). • Submit with original signatures. • Automated Clearinghouse Form (ACH/EFT). • Vendor Input Form.

  4. Vendor Information • Need accurate, current vendor profile. • Must check appropriate box for New, Change or Cancel on top left corner of ACH/EFT form. • May require Vendor Input Form (page III-15) • NEW! CDBG-Designated account now allowed • Checklist for submission of forms (page III-19)

  5. Request for Funds • Only expenses for exempt activities (planning, audit, administration and engineering design) requested until “Authority to Use Grant Funds/Completion of Environmental Review Requirements” has been issued • CDBG funds must be expended within five days of receipt (aka – “five day rule”) • Must have TWO authorized, original signatures • Budget Status Report (BSR) must be completed. • Disaster Projects must use revised BSR located on DED website. • Expect a draw delay during last five business days of each month.

  6. Payment of Request for Funds • RFFs are processed within 24 hours of receipt, excluding those with content issues identified by field representatives. • Deposit of the approved amount is typically deposited in five business days to the designated account. • Grantees can now check status of payments online at Vendor Payment Site – http://oa.mo.gov/vendors/

  7. Drawdowns for Administration- Limitations • Up to 25% maximum at time of removal of grant conditions • Up to 50% maximum at time of approval of 1st contractor’s payroll • Up to 75% maximum at time of 50% construction draw • Up to 90% maximum prior to closeout • 100% at closeout 10% MUST remain until all monitoring findings have been resolved and closeout has been completed.

  8. Contract Amendments Required for: • Grant increases or de-obligation of remaining monies • Transfers between administration, engineering design, legal or other professional services line items prior to execution. • Transfers between other items of more than $10,000 or 10% of grant award, whichever is less • Addition of any new line item to the funding approval • Explanation of change must accompany request • Other significant changes in scope of project • Disaster Projects should also refer to Slide 12

  9. Program Income • Payments of principal and/or interest on loans made with CDBG monies • Proportional share of proceeds from disposition of real property purchased with CDBG funds • Share of proceeds from special assessments, such as those levied to cover cost of constructing public work or facility • Interest earned from investment of CDBG monies • Checks for program income that will be returned to CDBG should be made out to HUD. ** Please contact DED prior to anticipated receipt of program income. We will review specific situation and advise accordingly.

  10. Accounting Requirements and Financial Recordkeeping • Carefully review detailed requirements and instructions on III-29 of the Administrative Manual. • Date, description and source documentation for all transactions • Summary of disbursements by program activity • Separate ledgers for CDBG, local and/or other agency funding • Copies of all requests for funds, invoices, bank statements and monthly account reconciliations. • Segregation of Duties to greatest extent possible.

  11. Financial Recordkeeping (Continued) • Documentation requirements also apply to local match and in-kind expenditures • Records must be available for review at grantees’ public office. • All CDBG expenditures should be approved by City Council /County Commission through normal bill-paying procedures.

  12. Additional requirements for DF- and DI- CDBG Grants • Mandated quarterly reporting, including identification and tracking of performance measures and ongoing progress narrative. • Additional time required to review and approve changes to funding line items • Tracking of leveraged funds • Other changes - TBA.

  13. Reminders • Verify bank information prior to submission of ACH • Ensure that internal controls are present • Remain current on audit requirements for local governments • Use blue ink if possible • Update records to reflect any return of grant funds

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