Federal Emergency Shelter Grant (FESG) Grant Management Training 2008

1. Federal Emergency Shelter Grant (FESG) Grant Management Training 2008

2. HCD Contacts Department of Housing & Community Development FESG Program Dan Apodaca, Homeless Operations Manager • Angie Ogaz, HCD Rep II • Justin Jeremiah, HCD Rep II • Helene Hiromoto, HCD Rep II • Heidi Lovitt, HCD Rep I/Fiscal Officer Your Team

3. Major Items to be Covered • Federal Fiscal Year (FFY) & Timelines • The Standard Agreement (Std. 213) • Financial Management • Reporting Requirements • Monitoring • Impact of Grant Management • Procurement • Website Availability

4. Federal Fiscal Year (FFY) & Timelines (October 1 through September 30) • NOFA released – February/March • FESG NOFA workshop – March/April • Grant Application due 6-8 weeks later – April/May • Review, rating and ranking of applications – May/July • Announcement of Awards – August • Agreement mail outs – September • Agreement Start Date – October 1 (Beginning of FFY) • Web-Based Grant Management Workshop – October • Site Monitoring – December through September

5. The Standard Agreement (Std. 213) • Face Sheet - Term Dates, Exhibits, Signatures • Exhibit A - Authority, Purpose and Scope of Work • Exhibit B - Budget Detail and Payment Provisions • Exhibit C - HCD General Terms and Conditions • Exhibit D - State of CA General Terms and Conditions • Exhibit E - Special Terms and Conditions Note: Grant Application is part of the Agreement

6. Standard Non-Discrimination Clause. Efforts to hire small, minority and women’s business enterprise; and labor surplus area firms. Efforts to provide employment to lower income residents. (HUD Section 3) Agreement Clauses

7. Conditions Prior to charging expenses to the FESG Grant: • Standard Agreement must be executed and approved by the State. • All special conditions and 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) within 60 days of commencement date.

8. Contract and Budget Changes MAJOR BUDGET ACTIVITIES ARE: • Rehabilitation/Renovation (RR) • Operations (OP) • Essential Services (ES) • Homeless Prevention (HP) • Supervisory Shelter Administration (SSA) • Grant Administration (GA)

9. Your Approved Budget Sheets • Before submitting your first PAR you should have received a set of Approved Budget Sheets from your HCD representative. • These are the only Budget Sheets that should be used. • If you have not received the Approved Budget Sheets, please contact your HCD representative.

10. Contract And Budget Changes BUDGET REVISION REQUEST FORM (REQUIRED FOR THE FOLLOWING TRANSACTIONS) Contract/Budget Amendment • Change the Scope • Make cumulative transfers between Major Budget Activities exceeding 10% of the total grant amount. Budget Revision • Cumulative transfers between Major Budget Activities of 10% or less of the total grant amount. Line Item Revision • Transfer between budget line items under the same Major Budget Activity.

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.

12. Financial Management • Fiscal contact is responsible for maintaining and submitting all FESG forms. • If there are any changes to the fiscal contact, please notify your HCD representative. • Please inform your HCD representative if there are any management changes.

13. Fiscal Files Files should provide all documentation that supports expenses that are reimbursed. Files should be: • Current • In chronological order/PAR # • Orderly and transferable

14. ADVANCE REQUEST DUE WITHIN 60 DAYS OF THE COMMENCEMENT DATE For amount of 30 days cash needs or $5,000 whichever is greater. Submit advance request by completing a PAR form. (PAR Advance #1) “FESG Expenditure Detail” for Advance is due 30 days from the advance period. Example: Advance for October 1-31, 2008 - Expenditure detail on the use of the advance is due November 30, 2008 Advance of Funds

15. Program Activity Reports(PARs) • Submit PARs no less than quarterly • Submit the FESG Expenditure Detail form with each PAR • Costs must agree with your approved budget sheets including staff/non-staff cost sheets • Allow 6-8 weeks for processing from the time HCD receives the PAR.

16. Common Problems Causing Processing Delays of Program Activity Reports (PARs) • Ineligible costs requested • PARs are submitted late • PARs not completed correctly (i.e., expense details are vague, description and dates are missing, job classification not noted, or new job classification is used that does not match the Approved Budget) • Costs charged to incorrect budget activity • Not rounding to nearest dollar; totals not correct

17. Program Activity Reports(PARs) • Eligible and ineligible costs • Relate expenses to major budget activities in your approved budget • PERSONNEL - Detailed Breakdown of Individual Staff Costs should reflect Personnel cost • SERVICES AND PURCHASES – Summary of Non-Staff Project Costs should reflect services and purchases

18. Performance Reporting Requirements • Quarterly Reports • Audits • Close-Out • Annual Performance Report • Section 3 Report

19. Quarterly Reporting Due 30 days after the end of the quarter • Quarters are: Oct 1, 2008 - Dec 31, 2008: Due 1-30-09 Jan 1, 2009 - Mar 31, 2009: Due 4-30-09 Apr 1, 2009 - Jun 30, 2009: Due 7-30-09 Jul 1, 2009 - Sept 30, 2009: Due 10-30-09 Note: Missed or late reports affect scoring for future funding.

20. Quarterly Report Example

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

22. 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 2008 Grants Management Manual

23. Close-Out (Due by October 30th) • Certificate of Completion • Final PAR submitted within 30 days after the contract termination date • Final Quarterly Report • Any Outstanding Reports Note: Late submittal will affect future scoring

24. Other Reporting Requirements • Annual Performance Report-reports FESG accomplishments on an annual basis for each FESG contract. • Section 3 Report-reports the “Economic Opportunities for Low and Very Low-Income Persons referred to as Section 3 residents.

25. Monitoring • What FESG monitor reviews • Financial records (PARs) • Audit reports • Supporting program documentation • Site Monitoring includes • Personnel and client files • Physical site for health & safety

26. Corrective Action Process • Meets with program representative to discuss findings • Sends a letter outlining the findings and if non-compliant, will ask for verification of corrective action • Consequences of non-compliance can be no payment of funds, return of funds, denial of future grant, possible closure

27. Desk Monitoring Process • Program selected based on Risk Assessment evaluation conducted by FESG. • 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 of non-compliance may include: no payment of funds, return of funds, denial of future grant

28. May not discriminate regarding employment. Provide opportunities for training and employment to lower-income persons (Section 3) Formal policy regarding discrimination Keep records for 6 years. Employment Practices

29. Impact of Grant Management Program compliance may impact future Rating and Ranking • Timely submittal of PAR, quarterly, and annual reports • Collecting statistical information and documents supporting outcomes • Timely Obligation of funds and expenditures • Consistency in fiscal management

30. Procurement • The Grant Management Manual has guidelines when purchasing and contracting for supplies, equipment, 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.

31. 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

32. Procurement • Grantee must submit a detailed justification of the need for equipment/fixtures when: • Local government • Purchase 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 than one year Note: HCD must pre-approve the procurement 30 days prior to the purchase

33. Procurement Methods • Small Purchases • Competitive Bids • Competitive Negotiation • Noncompetitive Negotiation

34. 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. (Remember due to the State of California budget, the months of June and July your reimbursement request may be delayed if you do not get your PAR request in on time.) • Communicate with your FESG Representative.

35. FESG Checklist of Do’s and Don’ts • More Do’s • Use 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 • Show payroll dates for staff on the Detailed Expenditure Sheet • Use subtotals on each page of the FESG Expenditure Detail Sheet • Round cents to the nearest dollar

36. FESG Checklist of Do’s and Don’ts • More Do’s • Type or write page numbers on the FESG Expenditure Detail Sheets if multiple pages are used • Submit the FESG Expenditure Detail Sheets in the following sequence: • MAJOR REHAB/CONVERSION (If applicable) • RENOVATION (If applicable) • OPERATIONS (1. Staff Costs, then 2. Non-Staff Costs); • ESSENTIAL SERVICES (1. Staff Costs, then 2. Non-Staff Costs) • SUPERVISORY SHELTER ADMINISTRATION • HOMELESS PREVENTION (If applicable) • GRANT ADMINISTRATION • Submit the PAR with the original signature by the Authorized Representative, Title, and Date

37. FESG Checklist of Do’s and Don’ts • Don'ts • Submit a PAR request for items not in your approved budget. • Submit a PAR request with ineligible costs. • Submit a PAR request for expenses that your organization has not incurred. • Request a budget revision or contract amendment after August 1st.

38. FESG Checklist of Do’s and Don’ts • More Don'ts • Send Timesheets, invoices, receipts, etc., unless specifically requested by your Representative • Leave page numbers off the FESG Expenditure Detail Sheets if multiple sheets are used • Report cents on PARs

39. Key Documents • Standard Agreement • FESG Application submitted • HCD ApprovedBudget including Detailed Breakdown of Individual Staff Costs and Summary of Non-Staff Project Costs • Current FESG Forms on HCD website • STD 204

40. Grant Management Training Questions(Please answer on Answer sheet included in email) • How many days after the contract terminates should the Final PAR be submitted? • Can your last reimbursement be held by the State until all reports/forms are submitted and approved by the State? • How many days after the month ends is the Program Activity Report and expenditure detail due? • Regarding the issue of Procurement, please list 3 grantee responsibilities: • 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?

41. Grant Management Training Questions • How many years should you keep an accurate and complete set of accounting records? • When purchasing equipment or fixtures as a Nonprofit organization a detailed justification is needed for a purchase greater than $____ dollars? • If a grantee receives more than $____ in a federal year an audit must performed and submitted. • Besides your HCD Representative, what else can you use as a source to determine if an expense might be eligible? • What are the three items that must be submitted in order to closeout the contract?

42. Grant Management Training Questions • What are the three most important key documents? • What should be done if the fiscal representative of your organization changes? • Should you include dates for staff on the detail expenditure sheet? • When completing a PAR, who should sign the PAR before submission? • How much time should be allowed to process the PAR once HCD receives it?

43. Grant Management Training Certification2008 I hereby attest that I have completed the 2008 FESG Web-Based Training and have answered and submitted the questions to HCD to be placed in our fiscal file. ______________________ _______ Signature Date