Federal Emergency Shelter Grant 2010 Grant Management Training

1. Federal Emergency Shelter Grant 2010 Grant Management Training

2. Dept Housing & Community Development FESG Program Contacts  Dan Apodaca, FESG Program Manager ⁃ Amanda Lockwood, FESG Fiscal Officer⁃ James Pettit, HCD Rep II ⁃ Helene Hiromoto, HCD Rep II ⁃Connie Mallavia, HCD Rep II Your Team

3. Major Items to be Covered  Standard Agreement (Std 213)  Financial Management  Reporting Requirements  Audits  Monitoring  Grant Management Compliance  Special Terms and Conditions  FESG Checklist  Key Documents

4. Standard Agreement (Std 213) By Reference, the FESG Grant App is part of the Contract Contract Face Sheet includes the Term Dates, Exhibits and Signatures Exhibit A - Authority, Purpose & Scope of Work Exhibit B - Budget Detail & Payment Provisions Exhibit C – State of CA General Terms & ConditionsExhibit D – FESG General Terms & ConditionsExhibit E - Special Terms & Conditions

5. Standard Agreement (Std 213) - Clauses  Standard Non-Discrimination Clause  Efforts to hire small, minority and women’s business enterprise; and labor surplus area firms  Efforts to provide employment to Very Low Income residents (HUD Section 3)

6. Standard Agreement (Std 213) - Conditions Prior to charging expenses to the FESG Grant: Contract must be approved & executed by the State All special conditions & certifications must be met Contractors must start expending funds on the approved project within 180 days from date of award notification One Advance (30 day advance or $5,000 whichever is greater) is allowable within 60 days of the Contract start date

7. Standard Agreement (Std 213) - Budget Major Budget Activities are: Rehabilitation/Renovation (RR) Operations (OPS) Essential Services (ES) Homeless Prevention (HP) Supervisory Shelter Administration (SSA) Grant Administration (GA)

8. Standard Agreement (Std 213) - Budget • Before submitting your first PAR form, verify that the activity amounts listed are accurate and consistent with Exhibit B, Page 1, of your Contract • Budget Sheets will be mailed upon approval and execution of your contract  All changes to budgets sheets require HCD Rep approval

9. Standard Agreement (Std 213) - Budget Revisions Budget Revision Request Form is required for the following transactions: Contract Amendment  Change the Scope  Make cumulative transfers between Major Budget Activities exceeding 10% of the total grant amount  Contractor Name Change Budget Revision  Revise amounts between Major Budget Activities of 10% or less Line Item Revision  Revise amounts within Budget line items under the same Major Budget Activity Note:Include Detailed Breakdown of Individual Staff Costs and Summary of Non-Staff Project Costs

10. Standard Agreement (Std 213) -Advance of Funds • State FESG regulations allow for an advance of up to 30 days cash needs or $5,000 whichever is greater • To request an Advance, submit the Program Activity Report (PAR) marked as “PAR #1/ Advance Only” • Advance request is DUE within 60 days of the contract (Standard Agreement) start date  FESG Expenditure Detail Sheet, in support of your advance, is due within 30 days of the end of the advance period

11. Financial Management  Grantee must maintain a financial accounting system that provides accurate, current and complete disclosure of financial status of each grant support activity • Send an e-mail to your HCD representative if there is a change to the personnel (i.e. Executive Director, Fiscal Representative, or Contact Person) working with the FESG Program  Fiscal Representative is responsible for maintaining and submitting all FESG forms and reports

12. Financial Management -Fiscal Files All supportive contract and fiscal documentation must be maintained in file and made available at HCD’s request Files should include support expenses that were reimbursed and be:  Current In Chronological Order/PAR #  Well organized

13. Reporting Requirements •  Program Activity Report (PAR) •  Quarterly Reports • Other Reporting Annual Performance Report  HUD Section 3 Report  Audits  Monitoring •  Close-Out

14. Reporting Requirements⁃Program Activity Reports (PARs) Submit signed PARs (PDF, preferred) no less than quarterly – Contact your HCD Representative, if questions • Submit FESG Expenditure Detail sheets, in Excel, with each PAR • Mail the PAR, with the original signature of the Authorizing Representative, if PDF is not available. Include the related Expenditure Detail sheets.  Job titles, costs, and descriptions must agree with your approved budget sheets on the Staff/Non-Staff costs sheets  Allow 6 - 8 weeks for processing

15. Reporting Requirements⁃Program Activity Reports (PARs) Common Causes for Delays in Processing PARs  PARs not completed correctly Ineligible costs requested, expense details arevague, descriptions of expenses are missing, dates and/or billing periods are missing, job titles are incorrect or not noted, etc.  Costs charged to incorrect budget activity Mathematical errors Not rounding off to nearest dollar • Unresolved issues

16. Reporting Requirements⁃Quarterly Reporting PARs are Due 30 Days from the reporting period. Quarters are: Oct 1, 2010 thru Dec 31, 2010 Due: Jan 30, 2011 Jan 1, 2011 thru Mar 31, 2011 Due: Apr 30, 2011 Apr 1, 2011 thru Jun 30, 2011 Due: Jul 30, 2011 Jul 1, 2011 thru Sept 30, 2011 Due: Oct 30, 2011 Note:Late reports result in check processing delays and lower scores on future FESG Apps

17. Reporting Requirements⁃Quarterly Reporting – S A M P L E December 31, 2010

18. Reporting Requirements ⁃Other Reporting  Annual PerformanceReport- Reports FESG accomplishments on an annual basis for each FESG contract . Due July 20th of each year. HUD Section 3 Report-Reports the “Economic Opportunities for Low and Very Low-Income Persons or Section 3 businesses”. Due October/November of each year.

19. Audits Refer to the Grant Management Manual  Type of audits, grantee responsibilities in selecting an auditor and how to prepare for an audit.  Noncompliance with audit requirements will jeopardize FESG funding Federal Requirements:  Must be completed by an independent auditor  Required if grantee receives $500,000 or more in federal assistance during FY  Performed annually

20. Audits Authorities  Audit requirements are outlined in OMB Circular A-133  Can access OMB Circulars at http://www.whitehouse.gov/omb/circulars/index.html  State Standard Agreement  Can obtain further information in the FESG Grants Management Manual

21. Monitoring⁃Site Monitoring Programs that are selected to be monitored are based on Risk Assessment Evaluations conducted by HCD Representative. Records and documents HCD will request:  Financial records (PARs)  Audit reports  Supporting program documentation  Personnel and client files  Physical site for health & safety

22. Monitoring⁃Desk Audit Process Programs that are selected to be monitored are based on Risk Assessment Evaluations conducted by the HCD Representative  Information requested is based on the risk assessment  After review, HCD provides a letter outlining findings with request for verification of corrective action, if needed  Grantee responds to HCD’s requests promptly with written notification of corrective actions taken Note: Consequences for non-compliance can be non-payment of funds, return of funds, lower scores on future FESG Applications, denial of future grants and/or possible closure

23. Monitoring⁃Site Monitoring/Corrective Action Process  HCD Rep will communicate any issues, concerns or findings with Contractor.  HCD Rep will follow-up in writing of any findings  Verification of corrective action will be required Note:Consequences for non-compliance can be non-payment of funds, return of funds, lower scores on future FESG Applications, denial of future grants, and/or possible closure

24. Close-Out ⁃(Due by Oct 30th) Certificate of Completion (Original signature required) Last PAR and Expenditure Detail sheets must be submitted within 30 days after the contract termination date.  Quarterly Reports should all be submitted at closing.  All other reports requested. Note: Late submittal will affect future scoring and/or may result in the return of funds to HCD

25. Grant Management Compliance Program compliance may impact future Rating and Ranking.  Timely submittal of PAR, quarterly and annual reports  Collect statistical information and documents supporting outcomes  Timely obligation of funds and expenditures  Consistency in fiscal management

26. Special Terms and Conditions ⁃Equal Opportunity Requirements  May not discriminateregarding employment  Provide opportunities for training and employment to lower-income persons (Section 3)  Formal policy regarding discrimination  Record Retention is 6 years

27. Special Terms and Conditions ⁃ Procurement  The Grant Management Manual has guidelines when purchasing and contracting for supplies, equipment and services acquired in whole or in part with FESG funds  The intent of procurement guidelines is to assure an open and competitive process in meeting federal goals

28. Special Terms and Conditions ⁃ Procurement Grantee Responsibilities:Establish a code of standards or ethicsCompetitive bidding No duplicate or ineligible purchasesEfforts to attract small and minority-owned businessesProcedures to ensure requirements are metMust maintain complete files to document compliance with these requirementsCompliance with State Standard Agreement

29. Special Terms and Conditions ⁃ Procurement Grantee must submit a detailed justification of the need for equipment/fixtures when:  Local governmentPurchase of $5,000 or more with a useful life of more than one year  Nonprofit organizations Purchase of $500 or more with a useful life of more thanone yearNote: HCD must pre-approve the procurement 60 days prior to the purchase or the expenses may be disapproved

30. Special Terms and Conditions ⁃Procurement Methods  Competitive Bids  Small Purchases  Competitive Negotiation  Noncompetitive Negotiation

31. FESG Checklist of Do’s and Don’ts Do’s Carry over current balance (column 4) from previous PAR to your next PAR (column 2) • Submit PAR request 30 days from the close of the reporting period. (June marks the State of California’s budget year-end and is typically the busiest month of the year, for State Departments, so be sure to submit your PARs timely to prevent any delays in your reimbursements.)

32. FESG Checklist of Do’s and Don’ts More Do’s Communicate with your FESG Representative Use the latest version of the approved budget sheets as your reference for completing the PAR Ensure the heading at the top of each PAR is complete with the current Contact Person Name, Title, E-Mail Address, Phone Number, and Fax Number, etc. Use the correct staff titles and names on the Detail Expenditure sheet that corresponds to your approved Budget Sheets

33. FESG Checklist of Do’s and Don’ts More Do’s Identify payroll dates for staff on the Detailed Expenditure sheet Subtotal each Major Activity and Sub-Category on the FESG Expenditure Detail sheet Round off cents to the nearest dollar Type or write the Contract Number and Page Numbers on the FESG Expenditure Detail sheets if multiple pages are used

34. FESG Checklist of Do’s and Don’ts More Do’sSubmit the FESG Expenditure Detail sheets in the following sequence:MAJOR REHAB/CONVERSION(If applicable) RENOVATION(If applicable) OPERATIONS (First Staff Costs, then Non-Staff Costs); Use the approved budget sheets as your reference for completing the PAR ESSENTIAL SERVICES (First Staff Costs, then Non-Staff Costs) HOMELESS PREVENTION(If applicable) SUPERVISORY SHELTER ADMINISTRATION GRANT ADMINISTRATIONSubmit the PAR with an original Signature by the Authorized Representative, Title, and Date

35. FESG Checklist of Do’s and Don’ts More Do’s • On all correspondence, be sure to include the Contract Number and identify the Issue on the Subject Line Example

36. FESG Checklist of Do’s and Don’ts Don'ts  Don’t submit a PAR request for items not in your approved budget  Don’t submit a PAR request with ineligible costs  Don’t submit a PAR request for expenses that your organization has not incurred Don’t request a budget revision or contract amendment after June 1st (the earlier, the better)

37. FESG Checklist of Do’s and Don’ts More Don'ts Don’tSend Timesheets, invoices, receipts, etc., unless specifically requested by your Representative Don’tLeave page numbers off the FESG Expenditure Detail sheets if multiple sheets are used Don’treport cents on PARs (round to the nearest dollar)

38. Key Documents • FESG Application submitted • STD 204 – Payee Data RecordMust be provided for each FESG Contract with the original signature • Std 213 - Standard Agreement • HCD website for FESG Forms (Grant Mgmt Manual, PAR, FESG Expenditure Detail and FESG Eligible Expenses) • HCD ApprovedBudget includingDetailed Breakdown of Individual Staff Costs and Summary of Non-Staff Project Costs

39. Grant Management Training Questions(Please use the Answer Sheet and complete the Training Certification located at the end of this presentation. • What fiscal documents are due to HCD on a monthly/quarterly basis? • What should be done if there is a contact change (i.e., Executive Director or Fiscal Representative) at your organization? 3. How many days after the month ends is the Program Activity Report (PAR) and Expenditure Detail sheet due? 4. On the Detail Expenditure sheet, Line Item #2, what descriptions are needed for staff?

40. Grant Management Training Questions 5. Who should sign the PAR before submission to HCD/FESG? 6. Regarding the issue of Procurement, please list 3 grantee responsibilities. 7. When purchasing equipment or fixtures as a Nonprofit organization, a detailed justification is needed for a purchase greater than $ dollars?

41. Grant Management Training Questions 8.How many years should you keep an accurate and complete set of accounting records? 9. What is the maximum percentage, of the total grant amount, that can be moved between Major Budget Activities for a FESG contract without having to amend the contract? 10. How should the following amounts be rounded off to the nearest dollar and be reported on the PAR: $449.60 $1,204.95 $272.34

42. Grant Management Training Questions • If a grantee receives more than $ in a Federal Fiscal-Year, an audit must be performed and submitted. 12. Besides your HCD Representative, what other resource can be used to determine if an expense might be eligible? • How many days after the contract terminates should the Final PAR be submitted? 14. Can your last reimbursement be held by the State until all reports/forms are submitted and approved by HCD? 15. What are the three items that must be submitted in order to close out the contract?

43. 2010 FESG Grant Management Training Certification I hereby attest that I have completed the “2010 FESG Grant Management Web-Based Training” and have answered and submitted the responses to questions to HCD to be placed in our fiscal file. Signature: Printed Name/Title: Contract No.: 10-FESG- Date:

44. FEDERAL EMERGENCY SHELTER GRANT PROGRAM (FESG)2010 GRANT MANAGEMENT TRAINING QUESTIONSAnswer Sheet Contractor Name:   Contract Number: 10 - FESG -               Printed Name/Title: Signature: