Effectively Complying with Your Draw Down Restriction

1. Ryan White Technical Assistance Webinar Effectively Complying with Your Draw Down Restriction June 21, 2012 HIV/AIDS Bureau, Division of Service Systems Office of Federal Assistance Management

2. Effectively Complying with Draw Down Restriction • Harold Phillips • Deputy Director, Division of State and Territorial HIV Programs • Brad Barney • Office of Federal Assistance Management (OFAM) • Moderator • Anita Edwards • Project Officer, Northeastern Central Services Branch

3. Effectively Complying with Draw Down Restriction Agenda • HRSA Announcements • When is Draw Down Restriction used • Special Conditions or Restrictions • Process for Putting Grantee on DDR • Corrective Action Plan • Draw Down Requests • Removal of Draw Down Restriction

4. HRSA HAB Announcements • ADAP FY 2012 ERF • Ryan White 2012 Grantee Meeting • HIV Testing for AIDS-Free Generation • Funding to Support Linkage to Care

5. Question & Answer Session

6. Effectively Complying with Draw Down Restriction Harold Phillips, Deputy Director Division of State and Territorial HIV Programs

7. When is Draw Down Restriction Used • One of HRSA’s responsibilities is to safeguard Federal funds through the monitoring of programmatic progress, grantee expenditures, and adherence to legislative and programmatic requirements. • When potential problems are identified, HRSA attempts to correct any issues by working with the grantee and providing guidance and technical assistance (TA) • When TA and other inputs are not sufficient to correct a problem, a grantee may be deemed “high-risk,” and increased monitoring in the form of draw down restrictions (DDR) may be used.

8. When is Draw Down Restriction Used What determines when a grantee is “high risk?” (45 CFR 92.12): • Has a history of unsatisfactory performance, or • Is not financially stable, or • Has a management system which does not meet the management standards set forth in 45 CFR 92.20, or • Has not conformed to terms and conditions of previous awards, or • Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.

9. When is Draw Down Restriction Used For local government or states/territories funded under Part A and Part B respectively of the Ryan White HIV/AIDS Treatment Program draw down restrictions may also be used when a grantee has failed to: • Take adequate steps to implement Ryan White program requirements; • Respond adequately to previous (TA) efforts and/or award conditions; • Implement adequate programmatic and fiscal oversight of contractors/sub-grantees regarding the use of funds and payer of last resort requirements; • Assure adequate staffing and/or coordination between the grantee’s Ryan White program managers and the grantee fiscal/budget officer; and/or • Address financial shortfalls or other fiscal problems that impact the grantee’s capacity to disburse and manage funds, provide adequate program oversight, and/or assure continuity of care and treatment for eligible clients.

10. Special Conditions or Restrictions Special conditions or restrictions may include: • Payment on a reimbursement basis; • Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period; • Requiring additional, more detailed financial reports; • Additional project monitoring; • Requiring the grantee or sub-grantee to obtain technical or management assistance; or • Establishing additional prior approvals.

11. HAB Process for Placing Grantee on Draw Down Restrictions (DDR) • Project Officer (PO) and Grants Management Specialist (GMS) consult re: identified issues • PO prepares DDR Recommendation and proposed CAP • Division convenes a DDR Review Meeting (Director, Senior Program Advisor, Branch Chief, PO, GMS, others from OFAM or HAB as appropriate to situation) • Division Director and DGMO/OFAM concur on the decision to impose DDR and the final CAP

12. HAB Process for Placing Grantee on Draw Down Restrictions (DDR) • The Grantee is notified by: • Issuance of a Notice of Award explaining the condition • Letter from the Division Director, that includes the CAP • Project Officer call and/or email to alert the Grantee Program Director to the action being taken and schedule a conference call • A record of all communication with the grantee and actions taken in relation to a DDR will be maintained in the Grantee’s official folder in the HRSA ElectronicHandbooks (EHB)

13. DDR Corrective Action Plan Corrective Action Plan (CAP) • Identifies the deficiency or problem(s) • Gives background information about the problem(s) • Provides details of HRSA’s efforts to remedy the problems (Technical Assistance (TA), conference calls, written guidance, etc.) • Lists specific corrective actions that the grantee must complete, the responsible person(s), and the timelines for each step • Details the final expected outcome • Identifies any recommended training or TA

14. HAB Monitoring of Grantees on DDR • PO Monitoring includes: • DDR-specific conference calls initially as needed (including key Grantee program and fiscal staff) • Monthly Monitoring Calls: regular agenda item • Review/approval of all Requests for Funds • Review/approval of all submissions related to CAP • Division Level: • Biweekly PO and Branch Chief review of grantee progress • Site visit if needed • Quarterly DDR Meetings to evaluate progress • Annual DDR as part of the annual grant application/award process • HAB Level: • HAB Senior Program Advisor will monitor status of all Ryan White Grantees on DDR in consultation with the Division Senior Program Advisors • The Associate Administrator is kept informed of the status by the Senior Advisor as well as by Division Directors in their 1-1 biweekly meetings

15. Effectively Complying with Draw Down Restriction Brad Barney Office of Financial Assistance Management (OFAM)

16. Notice of Award Notice of Award (NoA) • Once a grantee is placed on restricted draw down, a new NoA will be released with a grant specific term detailing the reason for the restriction. The new term reads: • Notice:  As a result of [issue], all drawdown of Federal funds from the Payment Management System (PMS) concerning this grant must have approval of the Grants Management Officer before funds are drawn.  Beginning immediately, by the 20th of each month or a minimum of 10 days before funds are needed, an original signed SF 270 must be submitted and subsequently approved for anticipated expenditures, along with documentation to substantiate the request. This restriction is expected to be temporary, pending resolution of the above concerns by your organization.  HRSA will determine when such resolution has occurred, and will notify the grantee in writing when the restriction has been lifted. • NoA may also contain specific Conditions of Award in relation to the draw down restriction, which require a timely response • All responses to grant conditions and corrective action plan (CAP) guidelines must be submitted via EHB prior approval system

17. Draw Down Restriction Requests Draw Down Requests When on draw down restriction, a Request for Reimbursement (SF270) must be submitted. When submitting a Request for Reimbursement (SF270), there are several steps involved. All steps must be completed in order to have the request processed: • Grantees must access the to HRSA Electronic Handbook (EHB) to request reimbursement of funds via the Prior Approval Portal . • In the “Comments” section of the Cover Sheet, indicate the sequenced number of the request including the dollar amount. For example: 1st Request for Reimbursement- $200,000.00 • Grantees must upload the following documents: • SF270. Please Note: The SF270 must correlate with the amount requested for reimbursement. All appropriate boxes must be completed on the SF270; please do not overlook Block 4 (Identification number assigned by Federal Agency) • Summary Sheet listing all documents/invoices being submitted (Sample Template Available). • Documents substantiate the requested amount, e.g. paid invoices/checks, pay stubs, etc. • Please Batch and submit the documents according to budget categories, (e.g. grantee administration, CQM, Services, ADAP, MAI, Part B Emerging Communities.)

18. Draw Down Restriction Requests Draw Down Requests (cont) After the draw down request is submitted via EHB, the following will occur: • The Project Officer will review all documents submitted and verify that the funds requested are within the scope of the grant. • If there are any discrepancies within the submissions, the Project Officer will submit a “Change Request” to the grantee in EHB. • The change request will specify any questions or concerns the Project Officer may have. • The Grantee must then resubmit the Request for Reimbursement with the necessary changes.

19. Draw Down Restriction Requests Draw Down Requests (cont) • If the grantee’s submissions adequately substantiate their request, the Project Officer will submit a recommendation for approval to the Division of Grants Management Operations (DGMO) via EHB. The “Comments” Section will note the approval amount recommended. • Upon review and approval by the GMO, an email of the SF270 will be sent to Payment Management System (PMS) and the project officer.  • PMS will inform grantees of the amount approved for reimbursement. • Grantees can request the disbursement of approved funds through PMS. Note: Grantees must still access the PMS, in a timely fashion, to request disbursement of funds.

20. Removal from Draw Down Restrictions HAB normally revisits a Grantee’s DDR status when the following types of corrective actions are completed: • Issued contracts and/or memoranda of agreements for the full amount of the Part A or B grant award • Submitted required program terms and progress reports within the required time-frame • Submitted documentation demonstrating compliance with required steps in the Grantee’s DDR CAP • If applicable, also the Grantee’s progress in: • Completing other corrective actions required by HAB or OFAM following a Compliance or Comprehensive Program Site Visit • Implementing relevant consultant or HAB recommendations in a Technical Assistance Report

21. HAB Process for Removal from DDR • Who initiates the process? • Usually the PO, in consultation with their Branch Chief • Sometimes the Grantee may submit a formal request • Step 1 : The PO consults with the GMS and, as appropriate, other Divisions within OFAM regarding the adequacy of Grantee progress in complying with CAP • Step 2: The PO prepares a “recommendation” to lift the DDR that includes a summary of Grantee’s progress • Step 3: A Division-level Review to lift DDR is convened.

22. HAB Process for Removal from DDR • Participants in the DDR Review consider : • The length of time the grantee has been on DDR • The PO’s assessment of grantee progress per their written summary and recommendation • Grantee submissions documenting corrective actions completed • Training and/or TA provided to address the deficiency/problem(s) • Other relevant findings/recommendations based on PO or consultant site visits

23. HAB Process for Removal from DDR • Step 4: Division Director approves/disapproves the request to lift the DDR • Step 5 If approved – The Grantee is notified by: • A revised Notice of Award (GMS/DGMO) • A formal letter from the Division, which is also uploaded in the EHB’s • Step 5 If disapproved – • The PO schedules a conference call with the grantee to discuss required corrective action steps that have not yet been adequately completed. • And, if the review process was initiated by a request from the Grantee, a formal letter is sent informing them of HRSA’s decision, the reasons, and what required corrective actions still need to be completed in order to lift the DDR.

24. Removal of Draw Down Restriction • HAB will work with OFAM to periodically review draw down restriction status of grantees • The review will include updates of corrective action plans, monitoring calls • Based upon progress on correcting deficiencies, grantees will be removed from draw down restriction • OFAM will issue a revised NoA lifting the condition

25. Question & Answer Session

26. Effectively Complying with Draw Down Restriction Thank You! The webinar will be available for viewing on the TARGET Center