Financial Management of OCD Grants (Units of Government)

1. Financial Managementof OCD Grants(Units of Government) November, 2012

2. Financial Mgt of OCD Grants Teresa L. Edwards, CPA …Terry Audit Office, ODSA 614.800.848.1300 614.644.9344 terry.edwards@development.ohio.gov

3. Financial Mgt of OCD Grants The Secret Code … B-F-11-0XY-1 Type of entity. A = City, B = County, N = NPO # grants of program type Program year Grantee 3-digit identifying # Program type. F = CDBG formula, C = CHIP, W = Water/Sewer

4. Financial Mgt of OCD Grants • To be in financial compliance: • Organization’s Financial Policies • Federal, state, local laws • Federal Circulars • Code of Federal Regulations • OCD Financial Mgt Rules & Regulations • Grant Agreements • NOTE: Should = must

5. Financial Mgt of OCD Grants OMB Circulars: Must be followed for all federal funds NPOGov’t Admin Rules A-110 A-102 Cost Principles A-122 A-87 Audit A-133 A-133 Web: whitehouse.gov/omb/circulars

6. Financial Mgt of OCD Grants • Sound financial management system: • Adequate internal controls: • --Reduce risk to lowest possible level • --E.g., segregation of duties, no mgt override of controls • No real or perceived conflict of interest • Accurate, timely and complete financial info

7. Financial Mgt of OCD Grants • Sound financial management system: • Accurate, timely and complete financial info: • --Record all transactions as they occur • Good received; services rendered • --No multi-period transactions • Monthly – not quarterly, annually • --Only costs incurred during grant scope • --Allocation of costs • E.g., fringes follow salaries

8. Financial Mgt of OCD Grants • Sound financial management system: • Accurate, timely and complete financial info: • --Grant activity kept separate • **Sources and uses (revenue and expenses) • --Expenses segregated by activity • --Accounting information must be only basis for completed financial reports to OCD

9. Financial Mgt of OCD Grants Refer to Sample … unless you can read these numbers

10. Financial Mgt of OCD Grants

11. Financial Mgt of OCD Grants • Important dates: • Beginning date: no services or expenses prior to • Project completion: all services should be rendered and costs incurred • Last draw: last date grant funds can be requested • Grant end date: no further activity (program & financial) after this date

12. Financial Mgt of OCD Grants • Documentation of costs: • Adequate documentation • Invoices • Contracts • Travel expense reports • Leases (space & equipment) • Activity reports • Pos are not adequate documentation

13. Financial Mgt of OCD Grants • Activity reports: • If an employee is not charged 100% to the grant … • Hours worked on each project • Daily basis • Signed by employee or supervisor with 1st hand knowledge of work • Cannot be based on budget • (See Sample Activity Report)

14. Financial Mgt of OCD Grants • Budget revisions: • Required when any activity will exceed $5K or 10% of the activity budget (whichever is greater) • May also require modification of outcomes • Grant Amendments: • Request prior to project completion date

15. Financial Mgt of OCD Grants • Financial Reporting: • Status reports due every 6 months • Report cumulative expenses for the PE • Preprinted forms will be sent to grantee • Final report will be sent near grant end date • All due (to be received) 30 days from date printed (top left corner)

16. Financial Mgt of OCD Grants • Audits: • One copy of audit conducted by AoS or outside firm • Due 9 months after FYE • Submit to: • Dan Workman, Special Projects Coordinator • Audit Office, ODSA • P. O. Box 1001 • Columbus, OH 43216-1001

17. Financial Mgt of OCD Grants • Other Stuff: • Interest bearing account • Interest income • 15-day rule • Record retention • Travel regulations • RLF • --20% Admin • --Prior OCD approval

18. Financial Mgt of OCD Grants Questions?