2009 CDBG FINANCIAL MANAGEMENT AND GRANT ADMINISTRATION

1. $?$?$ 2009 CDBGFINANCIAL MANAGEMENTANDGRANT ADMINISTRATION

2. 2009 COMPETITION • CDBG’s received: 149 @ $71,590,222 • CHIP’s received: 43 @ $12,411,811 • STIMULUS received: 68 @ $30,110,460 • CDBG’s awarded: 64 @ $32,575,404 • CHIP’s awarded: 15 @ $4,381,605 • STIMULUS (CDBG–R) awarded: 23 @ $10.3 mil !!!!!! CDBG Financial Management

3. WHAT’S INVOLVED?? • LAWS (Federal, State, and Local) • RULES • REGULATIONS • FORMS • DEADLINES CDBG Financial Management

4. CHAPTER 1CHAPTER 3Appendix IAppendix II CDBG Financial Management

5. GRANT AWARD PACKAGE • 1. STATEMENT OF CDBG AWARD • 2. General & Special Conditions • 3. Statement of Revisions • 4. Budget Summary (CDBG $ + Recipient $) • 5. Civil Rights Compliance Certification • 6. Authorization Agreement for Automatic Deposits • 7. Authorized Signature Card CDBG Financial Management

6. Grant Award Package should be signed and returned by OCTOBER 25th!! • Georgia Department of Community Affairs • Office of Community Development • 60 Executive Park South, NE • Atlanta, Georgia 30329-2231 CDBG Financial Management

7. STATEMENT OF CDBG AWARD • CONTRACT between you and DCA “in accordance with the plan set forth in the application”.Provided it is accepted and returned to DCA by October 25!!!!!!! • GRANT NUMBER assigned to your new CDBG should appear on ALL correspondence submitted to DCA. • GRANT PERIOD: request a grant extension prior to end of grant period if more time is necessary! NOTE: SIGN and RETURN WHITE COPY to DCA. KEEP PINK COPY FOR YOUR FILES. CDBG Financial Management

8. GENERAL CONDITIONS for ALL grants (CDBG/EIP/CHIP): ENVIRONMENTAL REVIEW - CHAPTER 2 of Recipients’ Manual RICK HUBER 404-679-3174 huber@dca.state.ga.us Once all requirements have been satisfied, DCA will issue a letter environmentally releasing grant funds. NOTE: form must be signed and returned with Statement of CDBG Award. CDBG Financial Management

9. SPECIAL CONDITIONS • Special Conditions are specific to each CDBG and must be cleared by a Grant Adjustment Notice prior to drawing down construction funds. • Form must be signed by Chief Elected Official and returned with Statement of CDBG Award. By signing, you acknowledge special condition issues will be adequately addressed as soon as practical.This does not clear S.C. CDBG Financial Management

10. STATEMENT OF REVISIONS • Review STATEMENT OF CDBG AWARD to see if “This award is subject to revisions” is checked. • If so, after a thorough review of your budget by DCA, changes were made. NOTE: form must be signed and returned with Statement of CDBG Award. CDBG Financial Management

11. BUDGET SUMMARY • This is your OFFICIAL BUDGET. Set up your CDBG accounting records using this budget; it may be different from DCA-8 as submitted with your application. • Local financial participation appears at the bottom of the page. Documentation MUST be maintained and will be monitored at close-out of the grant. • NOTE: DO NOT RETURN THIS FORM TO DCA. CDBG Financial Management

12. CIVIL RIGHTS COMPLIANCE • Person responsible for personnel practices should complete this form. • Have any written civil rights complaints been filed against your community? If so, please explain in space provided. • Person preparing the form should sign along with Chief Elected Official. • NOTE: Return to DCA with Statement of CDBG Award. CDBG Financial Management

13. AUTHORIZED SIGNATURE CARD • This has NOTHING TO DO WITH BANK ACCOUNT. Everything to do with DRAW DOWN form. NO ERASURES. NO CORRECTIONS. • Local elected official authorizes person(s) to draw down funds. • Local option: ONE or TWO signatures on draw down forms. Space for 4 signatures on signature card. • Person(s) authorized to sign draw downs should be someone readily available when needed. • Make sure to have an adequate number of persons authorized in case of illness and vacation. • At least one local government representative (elected official or employee) must sign draw downs. CDBG Financial Management

14. DCA requires TWO signatures on draw downs IF: Elected official authorizes himself to draw down funds. Grant administrator (RDC or private consultant) is authorized to sign. NOTE: Make yourself a copy before returning signature card to DCA. AUTHORIZED SIGNATURE CARD CDBG Financial Management

15. AUTOMATIC DEPOSITS (ACH) • DCA deposits funds electronically to your CDBG checking account. • ATTACH VOIDED CHECK • Provide CDBG bank account information: bank name/location; account number; authorized signatures. • CDBG GRANT NUMBER. • It will take a couple of weeks to set-up the electronic process. • Make yourself a copy before returning form to DCA. CDBG Financial Management

16. CDBG BANK ACCOUNTChapter 1: Cash Depositories • Separatenon-interest bearing bank account foreach CDBG project you have. • Only CDBG funds deposited into this account. Match and other funds should not be deposited into this account. CDBG Financial Management

17. CDBG CHECKING ACCOUNT TIPS • Check to see if a minimum balance is required to keep account open. • If local money is used to open account, it can be reimbursed later. • AFTER 3 WORKING DAYS OF RECEIVING GRANT FUNDS CASH ON HAND SHOULD NOT EXCEED $5,000! • CDBG will NOT PAY INSUFFICIENT FUNDS CHARGES! CDBG Financial Management

18. REMEMBER……. IF NO GRANT AWARD PACKAGE ........... NO $$$$$ CDBG Financial Management

19. Monitoring Program Performance and Compliance(Chapter 1: Section 4) CDBG Financial Management

20. LOCAL RESPONSIBILITY • Keep project on track with time schedules as described in the approved CDBG application! Complete project within 24 months. • Adhere to all federal and state requirements. • Report problems, delays, or adverse conditions on page 2 of quarterly report. CDBG Financial Management

21. PLEASE READCLOSELY!!! • CHAPTER 1 • Section 15: SANCTIONS CDBG Financial Management

24. CDBG PROJECT REVIEW CHECKLISTS are located in APPENDIX 2…. CDBG Financial Management

25. START-UP SITE VISIT Elected Official City or County Clerk Grant administrator Interested Parties Low/Mod Surveys START-UP SITE VISIT CDBG Financial Management

26. PUBLIC INSPECTION • The CDBG Application • Citizen Participation plan • Financial reports - including quarterly reports, bank statements, invoices, and bank register showing receipts & disbursements in chronological order (e.g., CDBG Check Book) • Environmental review record • Other pertinent information such as engineering plans or floor plans CDBG Financial Management

27. CITIZEN PARTICIPATIONChapter 1: Section 8 • PUBLIC HEARINGS • PRIOR TO SUBMISSION OF APPLICATION • WITHIN 60 DAYS OF GRANT AWARD (by November 24th!) • FINAL - AT PROJECT COMPLETION • and if PROGRAM AMENDED CDBG Financial Management

28. Public Hearing Notices • A full 5 CALENDAR days must pass from the publication date to the public hearing date. • HINT: DO NOT COUNT DATE PUBLISHED OR DATE OF HEARING • DO NOT PUBLISH IN LEGAL SECTION CDBG Financial Management

29. CONSIDERATIONS TO KEEP IN MIND WHEN PLANNING A PUBLIC HEARING • Times and locations convenient to potential or actual beneficiaries. • Accessible for handicapped persons. • Interpreter for non-English speaking residents. CDBG Financial Management

30. POST-AWARD PUBLIC HEARING • Must be heldwithin60 daysofaward (by November 24th) CDBG Financial Management

31. FINAL PUBLIC HEARING • Your Program Representative MUST be notified at least one weekbefore the final public hearing CDBG Financial Management

32. PROCUREMENT • CHAPTER 3, Section 4, page 59 -Section 4A(2), page 60 = Standards of Conduct CONFLICT OF INTEREST -Section 4B, page 62 METHODS OF PROCUREMENT • APPENDIX 2 • 24 CFR 85.36 • CONFLICT OF INTEREST REGULATIONS • Georgia Local Government Public Works Construction Law CDBG Financial Management

33. Conflict of Interest • Not necessarily a “Deal Killer” • Applies to Procurement of ALL goods and services. • No persons with the following factors can be party to CDBG business or any contract: • Have a financial interest; • May receive a benefit; • Have family or business ties from the CDBG project. CDBG Financial Management

34. Conflict of Interest continued • This applies during tenure or for 1 year after. • The following persons are included in this prohibition: • Elected officials • Staff with decision making authority • Consulting firms such as Administration, Engineering/Architect • Grant sub-recipients • Any person associated with LG that have financial, family or business ties CDBG Financial Management

35. Conflict of Interest continued • Exceptions to the Conflict of Interest policy: • Granted on case by case basis • Must be a written request • Must be before CDBG money has spent obligated • Only granted if DCA determines that the situation will benefit the CDBG program • Granted if DCA determines that said individual will not receive any greater benefit from the project • Denial would cause undue hardship on LG • Public disclosure and abstention from CDBG business • Certified by LG Attorney CDBG Financial Management

36. Conflict of Interest continued • Examples of Conflict of Interest: • Mayor owns the sole provider of a service in the area. • Administrator is married to County Clerk. • Engineer steers LG to procure services of business partner. • Engineer is daughter of the Grant Administrator. • City Manager serves on the Board of Directors for sub-recipient • Mayor is married to Officer of company that owns property in Target Area • Engineering firm owns a construction company soliciting bid for construction CDBG Financial Management

37. Conflict of interest continued • Remember that full and early disclosure is best. • Keep in mind that we are sensitive to this issue. • If it smells fishy, get it out in the open!! • Let’s maintain the integrity of the CDBG program. • We want to avoid a situation to hit the newspapers and evening news. CDBG Financial Management

38. METHODS OF PROCUREMENTChapter 3: Section 4 (B) • Small Purchases • Competitive sealed bids • Competitive negotiations • Sole Source CDBG Financial Management

39. PROCUREMENTSTANDARDS • ALL procurement transactions shall be conducted in a manner so as to providemaximum full-fairandopen competition. CDBG Financial Management

40. SMALLPURCHASES(for procurements less than $100,000) • Bargain shop---get price quotes from several qualified sources. • Keep documentation in grant files. • NOTE: cannot be used for administration or professional services CDBG Financial Management

41. COMPETITIVESEALED BIDS (formal advertising) “GEORGIALOCALGOVERNMENTPUBLICWORKSCONSTRUCTIONLAW” • (APPENDIX 2) CDBG Financial Management

42. COMPETITIVESEALEDBIDS POSTconstruction contract opportunityconspicuouslyat governing authority’s office. ADVERTISE in legal organ of the County at least twice during four weeks before bid opening. Keep newspaper tearsheets in grant file. OR…..advertise by electronic means on an Internet website (run for four continuous weeks). Keep print-out of electronic ad in grant file. CDBG Financial Management

43. COMPETITIVESEALEDBIDS • First ad should be four weeks prior to bid opening. Second ad should follow two weeks after first. • Bids shall be solicited from an adequate number of known suppliers (e-mail, fax, mail – retain proof). • YES - Firm-fixed-price contract • NO - Cost + % of cost method CDBG Financial Management

44. COMPETITIVESEALED BIDS To ensure a level playing field for all contractors…… INCLUDE ALTERNATIVES • DEDUCTS and • ADDITIONS • LIST IN ORDER OF PRIORITY CDBG Financial Management

45. IF BIDS COME IN TOO HIGH OR VERY LOW • DCA approval is needed before eliminating items of significance….ex: reducingsize of building, eliminating streets or reducinglevel of benefit on streets. • DCA approval is needed before adding additional streets, increasing beneficiaries, etc. • DCA approval is needed if scope of work is modified!! CDBG Financial Management

46. Relatively NEW:Monitoring Checklist in APPENDIX 2…. PROCUREMENT REVIEW for PUBLIC WORKS CONSTRUCTION CDBG Financial Management

47. COMPETITIVENEGOTIATIONS Grant Administrator & Engineer Or Architect • PUBLICIZE the RFP/RFQ (include “evaluation factors”) in a newspaper with adequate circulation. • ALLOW a minimum of 30 days response time. • Request proposals via U.S. Mail from qualified sources. 7 ----- administration 10 ----- engineering or architectural • KEEP DOCUMENTATION IN GRANT FILE. CDBG Financial Management

48. COMPETITIVENEGOTIATIONS • Prepare written evaluation plan that establishes reasons for the choice (aka a “score sheet”). • Maintain documentation to verify when the RFP’s were mailed out. • Once proposals are evaluated; attorney should be consulted and full council or commission approval should be obtained. CDBG Financial Management

49. WRITTENEVALUATIONPLAN • Decide what is important to your project. Establish selection criteria or “evaluation factors” (prior to receipt of offers). • For consistency among evaluating panel members, develop a method for the award of points. Must have “reason” for points given. CDBG Financial Management

50. AWARDING POINTS EXAMPLE: Evaluation Factor #1 “Grant administrator’s knowledge of CDBG guidelines and regulations”. Score range 4, 3, 2, 1, 0 4 points = 5 or more years of training 3 points = 3-4 years of training 2 points = 2 years of training 1 point = 1 year of training 0 points = less than 1 year of training CDBG Financial Management