Financial Management Homeland Security Grant Program

1. Financial ManagementHomeland Security Grant Program Michigan State Police Emergency Management and Homeland Security Division Ms. Penny Burger, Financial Manager Ms. June Martin, Analyst Ms. Carla Richardson, Analyst

2. Overview • Grant Agreements • Reimbursements • Advances • Year-End Processes • Questions http://www.michigan.gov/emhsd

3. Grant Agreements

4. Grant Agreements • Grant agreements are legally-binding contracts between EMHSD, as the State Administrative Agency of the grant, and the subgrantee/subrecipients of the grant. • Grant agreements contain guidance details such as grant award amount and grant restrictions, roles and responsibilities, and payment and reimbursement procedures. (list not inclusive) http://www.michigan.gov/emhsd

5. Grant Agreements (cont.) • Grant agreement packets are mailed out by EMHSD • Subgrantee returns one complete grant agreement packet (including attachments) to EMHSD Planning and Program Development • Grant agreements returned to EMHSD must have original signatures since it is a legal document • Must be returned to EMHSD within 30 days http://www.michigan.gov/emhsd

6. Reimbursements

7. Homeland Security Grant Program Reimbursements • Forms are available on the EMHSD website: www.michigan.gov/emhsd • Click on “Homeland Security Grants” which appears about half way down the page on the left hand side • Select “Michigan Homeland Security Grant Forms” • Make sure to use the most current forms to expedite processing http://www.michigan.gov/emhsd

8. http://www.michigan.gov/emhsd

9. Reimbursement Process • Reimbursement Forms • Reimbursement Coversheet (EMD-054) • Payroll Reimbursement Detail (EMD-055) • Supplies and Other Items Reimbursement Detail (EMD-056) • Travel Reimbursement Detail (EMD-057) • Submit reimbursement requests at least quarterly • Make sure all forms are completed and all required documentation is attached to expedite processing http://www.michigan.gov/emhsd

10. Reimbursement Forms • Reimbursement Coversheet (EMD-054) must be included with every reimbursement request • Complete all information required in top portion of the form • Designate type of activity or event • Designate solution area • Designate allocation type • Must be signed by authorized financial representative (original signature) http://www.michigan.gov/emhsd

11. Reimbursement Forms (cont.) • Payroll Reimbursement Detail (EMD-055) • Submit with corresponding Reimbursement Coversheet • Complete form for each employee • Record dates and hours worked (regular and overtime) • Can list by “Pay Period Ending” dates • Cannot list by month or year • If fringe benefits are billed, complete reverse side of form detailing fringe benefit percentage http://www.michigan.gov/emhsd

12. Reimbursement Forms (cont.) • Supplies and Other Reimbursement Detail (EMD-056) • Submit with corresponding Reimbursement Coversheet • Fill in top portion of form • Type of Activity or Event (i.e. full scale exercise, conference, etc.) • Date of activity or event • Record supplies, invoices, receipts, contractors, course fees, site rentals, etc. • Must submit supporting documentation to show proof of payment such as receipts, invoices, or check copies • Purchase Orders ARE NOT proof of payment and are not acceptable http://www.michigan.gov/emhsd

13. Reimbursement Forms (cont.) • Travel Reimbursement Detail (EMD-057) • Submit with corresponding Reimbursement Coversheet • Reimbursement for mileage, lodging, and meals cannot exceed allowable sub-grantee rate or state rate – whichever is less • State of Michigan rates can be located at: http://www.michigan.gov/documents/dmb • Other expenses • Parking, tolls, and fees are actual amount http://www.michigan.gov/emhsd

14. Reimbursement Forms (cont.) • Submission of receipts • Submission of receipts is not necessary, except for lodging • Subgrantees must keep all receipts on file for audit purposes http://www.michigan.gov/emhsd

15. Solution Areas • Equipment • Exercise • Planning • Training • Management and Administrative (M&A) http://www.michigan.gov/emhsd

16. Equipment Solution Area • Reimbursement Request includes: • Reimbursement Coversheet (EMD-054) • Proof of Payment • Includes receipts, check copies, or copy of invoice • Purchase orders and/or quotes are not acceptable • Copies of credit card statements or internal financial/accounting records are not acceptable • Approved Allowable Cost Justification (ACJ) forms http://www.michigan.gov/emhsd

17. Exercise Solution Area • Reimbursement Request includes: • Reimbursement Coversheet (EMD-054) • Each exercise or drill must be listed on a separate Reimbursement Coversheet • Proof of Payment • Includes receipts, check copies, or copy of invoice • Purchase orders and/or quotes are not acceptable • Copies of credit card statements or internal financial/accounting records are not acceptable • Approved Allowable Cost Justification (ACJ) forms • After Action Report must be submitted before reimbursement can be processed http://www.michigan.gov/emhsd

18. Planning Solution Area • Reimbursement Request includes: • Reimbursement Coversheet (EMD-054) • Proof of Payment • Includes receipts, check copies, or copy of invoice • Purchase orders and/or quotes are not acceptable • Copies of credit card statements or internal financial/accounting records are not acceptable • Approved Allowable Cost Justification (ACJ) forms • Attach activity detail for Planners http://www.michigan.gov/emhsd

19. Planning Solution Area (cont.) • Complete appropriate detail sheets • Payroll detail sheets must list each employee (non-contractual) attending training (regular, overtime, backfill) and list by date • Supplies detail sheets can be used for contractual employees, with proper proof of payment documentation attached http://www.michigan.gov/emhsd

20. Training Solution Area • Reimbursement Request includes: • Reimbursement Coversheet (EMD-054) • Proof of Payment • Includes receipts, check copies, or copy of invoice • Purchase orders and/or quotes are not acceptable • Copies of credit card statements or internal financial/accounting records are not acceptable • Approved Allowable Cost Justification (ACJ) forms • Completed appropriate detail sheets • Payroll detail sheets must list each employee (non-contractual) attending training (regular, overtime, backfill) and list by date http://www.michigan.gov/emhsd

21. M&A Solution Area • Reimbursement Request includes: • Reimbursement Coversheet (EMD-054) • Proof of Payment • Includes receipts, check copies, or copy of invoice • Purchase orders and/or quotes are not acceptable • Copies of credit card statements or internal financial/accounting records are not acceptable • Approved Allowable Cost Justification (ACJ) forms http://www.michigan.gov/emhsd

22. Allocation Types • SHSP – State Homeland Security Program • LETPA – Law Enforcement Terrorism Prevention Activities • UASI – Urban Areas Security Initiative • CCP – Citizen Corps Program • MMRS – Metropolitan Medical Response System • OPSG – Operation Stonegarden http://www.michigan.gov/emhsd

23. Grant Reimbursement Timetable • Every attempt is made to expedite reimbursement payments in a timely manner • If all necessary information is submitted properly, subgrantees should receive reimbursement within 30 days from the time reimbursement requests are received by EMHSD • Year end (Sept. 30) processing could take longer than 30 days http://www.michigan.gov/emhsd

24. Advances

25. Advances • Subgrantee may request an advance for $25,000 or more • Subgrantee must submit letter, approved purchase orders, and approved ACJ form • Subgrantee must place advanced funds in an interest-bearing account • Subgrantee may keep interest up to $100 per year for administrative expenses for all federal grant funds combined http://www.michigan.gov/emhsd

26. Advances (cont.) • Subgrantee must notify EMHSD quarterly, in writing, of any interest earned over $100 • Subgrantee must send EMHSD a check payable to the State of Michigan for any interest earned over $100 • Interest received by EMHSD is returned to the federal government • Advances cannot be outstanding for more than 120 days http://www.michigan.gov/emhsd

27. Advances (cont.) • All invoices and proof of payment must be dated within 120 days of the advanced payment issue date • When advance purchases are completed, subgrantee must submit: • Reimbursement Coversheet (EMD-054) • Supporting invoice copies • Cancelled checks (copy) • Detail forms (if necessary) • ACJ form(s) • A check for unused portion of advance made payable to the State of Michigan http://www.michigan.gov/emhsd

28. Year-End Processes

29. Accounts Payable • Transaction that takes place at the end of a fiscal year. State of Michigan’s fiscal year is October 1 through September 30. • Ensures that money spent in one fiscal year for goods and/or services is reimbursed with funds for that same fiscal year. (Required in accordance with Generally Accepted Accounting Principles (GAAP).) http://www.michigan.gov/emhsd

30. Accounts Payable (cont.) • If goods/services were received on or before September 30, but the invoice was not received, an accounts payable must be established. • If the invoice for the goods/services was received but a reimbursement request cannot be completed and submitted before the requested deadline, an accounts payable must be established. • If goods/services were received and paid for on or before September 30, this is not an accounts payable. Submit reimbursement request by deadline. http://www.michigan.gov/emhsd

31. Payable or Not? • Previously ordered equipment arrives on September 30, but no invoice has been received yet. • The contractor performed services during the month of September, but won’t send a bill until the middle of October. • Invoices were paid on September 30, but a reimbursement request cannot be completed, approved, and submitted before the year-end deadline. • Supplies were ordered, received, and paid for prior to September 30. http://www.michigan.gov/emhsd

32. Establishing Accounts Payable • Complete Payables Estimate form sent by EMHSD Financial • Complete separate Payable Estimate forms for each grant • Attach documentation that supports the estimated payable, such as invoice copy, shipping receiver, or billing estimate • Fax or mail completed package to EMHSD Financial Section on or before deadline http://www.michigan.gov/emhsd

33. If Payables Are Not Established • By not establishing a payable, subgrantees are spending old year money that another jurisdiction has held for their costs. • In order to make payments greater than $10,000 for old fiscal years without a payable, EMHSD is required to obtain special permission from the State Budget Office. This delays processing. • Continued requests of the State Budget Office creates an audit flag indicating EMHSD is not following Generally Accepted Accounting Principles. http://www.michigan.gov/emhsd

34. Reimbursing a Payable • Reimbursement Requests for a payable must be completed separately. Do not complete one reimbursement packet for both payable and new year expenditures on the same form, even if they are the same grant. • Payable – expenses incurred through September 30 that have been established at EMHSD • Current year – expenses incurred beginning October 1 • Submit reimbursement requests for payables as soon as possible after the fiscal year end closes. http://www.michigan.gov/emhsd

35. Questions??? http://www.michigan.gov/emhsd

36. Contact Information Ms. June Martin, Analyst Phone: (517) 333-5040 Email: MartinJ9@Michigan.gov Ms. Carla Richardson, Analyst Phone: (517) 335-6461 Email: RichardsonC6@Michigan.gov Ms. Penny Burger, Financial Manager Phone: (517) 333-5046 Email: BurgerP@Michigan.gov http://www.michigan.gov/emhsd