HICAP & Title V Fiscal Connections

1. HICAP & Title VFiscal Connections Budgets/Closeouts Reconciliations Expenditures Advances What’s New Laws, Regs, Policy Presenter: Vern Foster, Aging Programs Analyst II California Department of Aging Vern.Foster @ aging.ca.gov (916) 928-2746

2. This Session Will Take You on a Scenic Ride Down the Fiscal Highway… 1

3. Our Road Map Our adventure includes stops at… • The Fiscal Compliance Café (Ooooooooh…) • Budgets/Closeouts • Reconciliations • Monthly Expenditures • Advances • The Newsroom (Aaaaaaaah…) • What’s new at CDA • The Fiscal Library (Very Interesting…) • Applicable Laws, Regs, Policies for CDA’s programs

4. Applicable Laws, Regs, Policy • Older Americans Act -2006 (OAA) – Title V • Older Californians Act (OCA) – HICAP • Code of Federal Regulations (CFR) – Title V • CDA Standard Agreement • Contract Terms and Conditions • DPA Rules for Personnel and Travel • Program Memos (Policy) More later…

5. HICAP Budget and Closeout Reporting • Budget It’s Not Just a Budget… • Identifies how all contract funds will be used • Identifies all other local funds used • Covers Compliance Checks (Laws, Regs, Policy) • 5% Mental Health Duals • Final Budget – Due April 30 • Closeout • Due August 15 • Compliance Checks • 5% Mental Health Duals • Monitored Statewide • Show State Funds expended first (Use or lose) • Reallocate Unspent Federal Allocations as OTO (Bud Rev 1)

6. Title V Budget and Closeout Reporting • Budgets Again, It’s Not Just a Budget… • Identifies All Funding • Compliance Checks • Maximum AAA Admin – 8% of Total Federal • Minimum PWFB – 79% • Match – currently 11.82 of federal (10% plus 1.82% to cover State portion) • State Funds were removed from the Governor’s Budget • Final Budget – Due April 30 • Last opportunity to adjust budget • Closeouts - Due July 30 • Compliance Checks • Same as the budget • Match Monitored statewide • Unspent Allocations returned to DOL

7. Monthly Fiscal Reporting - Due Dates • HICAP (CDA 245) • Due the 30th of each month, submitted via email • Request For Funds (RFF) for future month (30 days ahead) • Expenditure Report for prior month (30 days prior) • July Expenditures due August 30 • October RFF due August 30 • Title V (CDA 29) • Due the 15th of each month, submitted via email • Request For Funds (RFF) for future month (15 days ahead) • Expenditure Report for prior month (15 days prior) • Aug Expenditures due Sept 15 • October RFF due Sept 15 Input expenditures before requesting funds (RFF)

8. Monthly Fiscal Reporting • Monthly Expenditure Reporting • Report Actuals • County/City costs reported monthly • Report all activities • Report all funding used • Program Income • Other Funds • Match (Title V) • Report Timely • Reconcile monthly • Adjust AAA records to reflect CDA adjustments • Expenditure Reconciliations sheets (mailed monthly) • Compare Budget to Y-T-D Actuals before reporting

9. HICAP Notice HICAP Reimb. & HICAP Fund State funds spent 1st HICAP Fed. last to be spent

10. HICAP Request for Funds (RFF) • 1st three months – up to 1/12th per month for each funding source • Based on need • Recommend spending down State (Reimbursement and HICAP Fund) before spending Federal (SHIP) dollars • Beginning with the October Advance, RFF’s are approved based on the Reconciliation process, which calculates both: Balance Available and Maximum Approvable • The lesser of these amounts will be the maximum that can be approved • The maximum approvable amount may be overridden with appropriate justification

11. HICAPAdvance Requests Notice that Advance pattern follows expenditure pattern Federal expenses not reported until State is expended

12. Advance to Expenditure Reconciliation Let’s look at the calculation!

14. Title V Request for Funds (RFF) • 1st two months – up to 1/12th per month • Based on need • Beginning with the SeptemberAdvance, RFF’s are approved based on the Reconciliation process, which calculates both: Balance Available and Maximum Approvable • The lesser of these amounts will be the maximum that can be approved • The maximum approvable amount may be overridden with appropriate justification

15. Title V Reconciliation See next slide Differs from HICAP and Area Plan – Only 1 month of projected expenses Why?

16. Only 1 Month Projected

17. We’re on the Home Stretch!Stretch……. Next Stop… What’s New with Fiscal?

18. What’s New with Fiscal? • Tightening of Expenditure/Contract spending • More Federal scrutiny of all of our fiscal processes, particularly Expenditure and Advance processes • Over-Advancing (in excess of actual need) • Underspending (Grants not fully expended) • More Fiscal Accountability • Fiscal Team will be returning questionable expenditure postings and advance requests • Under/Over budgeted amounts • Under/Over advance • Tightening of Monthly reporting • Timely reporting - monthly • No more submitting 2-3 months at a time • Late and sporadic AAA monthly reporting causes inaccurate projections at the Statewide level

19. Five AAA’s received between 25% and 50% of their HICAP grant funds after the contract period closed.

20. What’s New with Fiscal? Continued… • Contract Under-performing a AAA Fiscal Responsibility FISCAL OFFICER will: • Ensure contract funds are fully expended • Work with Administration and Program staff monthly • Monitor AAA Direct and Provider Contract • Expect closer monitoring by CDA Program and Fiscal staff • AAA’s will notice an increase in calls from CDA staff • AAA’s that appear behind in their spending will be asked to provide a plan for expending all funds

21. AAA’s that have an unspent balance of HICAP Funds in excess of 5%

22. Why? In the current fiscal climate: • Funding is tight! Every government entity is under increased scrutiny and accountability for funds. • Federal Audit findings related to late pay out of funds • State Controller is scrutinizing payment processes • Unreconciled Advance Requests - Inability to make accurate Expenditure and Cash projections • Every year we have unspent funds we are showing that we don’t have a need for the funding, therefore we increase the risk of losing Federal Funds • Potential loss of federal baseline dollars • Potential loss of OTO • Cannot justify asking for more HICAP dollars

23. And More…What’s New with Fiscal? Continued… • CDA Contract Funded Property Reporting • $500 Limit has been established • PM forthcoming… • AAA’s must track equipment with a cost of $500 or more • New CDA 32 (Property Form) • New CDA 248 (Request to Dispose Form) • New CDA 248 Process to involve CDA Program and Fiscal staff

24. And Finally… What’s New with Audits? Audit Findings – Provider Match CDA Audits has found that many AAA’s have not been testing Provider Match • Provider Match must be tested by AAA. • Immediately begin testing provider match • Can lead to disallowed costs if match is not verified • Use risk-based approach to determine amount of testing samples • If audit of Match has never been performed – test 100% to establish risk • CDA Audits will begin verifying and disallowing costs associated with untested provider match • Contact CDA Audits for more information

25. How are we doing? How’s our Time? Do we have time for Laws, Regs, Policy? Or are we ready for a Q & A period?

26. Fiscal Library - What Requirements Drive What We Do? • Older Americans Act - 2006 (OAA) • Title V– Community Service Senior Opportunities Act • Section 502 – Admin Allocations , Non-Federal Share, PWFB • AdministrationAllocation - Not more than 13.5% of federal allotment • CDA 5.5% • AAA Maximum - 8% • Overall Match =10% • The Governors Budget removed all Title V funding • AAA’s have agreed to pay the 10%, plus CDA’s Admin Match share • Current Match = 11.82 • PWFB = 75 % • Since CDA keeps 5.5% to Administer Title V, AAA’s PWFB minimum increases to 79% • AAA PWFB = 79%

27. What Requirements Drive What We Do? Continued… • Older Californians Act (OCA) – Enacted 1997 • Established CBSP Programs • State funding removed from Governor’s Budget - 2009 • CBSP Program funding eliminated • Health Insurance Counseling and Advocacy Program (HICAP) funding remains

28. What Requirements Drive What We Do? Continued… • Code of Federal Regulations (CFR) • Title V Administrative Requirements • 20CFR641 - Also Refers to: • 45CFR74 – Non-Profits, Hospitals, Institutions of Higher Education • 45CFR92 – State and Local Governments Primary areas covered • Standards for financial management systems • Period of availability of funds • Cost Classifications • Match • Allowable Costs • Program Income • Audit Requirements • Programmatic Requirements

29. Codeof Federal Regulations (CFR) Continued… • Cost Principles – Allowable Costs • 20CFR641 – Title V Administration Requirements • Also Refers to: • 2CFR220- Institutions of Higher Education (OMB A-21) • 2CFR225 - State and Local Governments (OMB A-87) • 2CFR230 - Non-Profits (OMB A-122) Primary areas covered • Appendix A – General Principles • Allowability • Reasonableness • Allocating Costs • Appendix B - Selected Items of Cost (Costs Listing)

30. What Requirements Drive What We Do? Continued… • CDA Standard Agreement • Contract Terms and Conditions • DPA Rules -Personnel and Travel • Departmental Program Memos (Policy) • New Departmental Policies

31. Have we hit our target??? Fiscal Compliance? Closeouts Budgets Reconciliations ? Expenditures Advances What’s New at CDA? Laws, Regs, Policy?

32. Thank You All For Coming!