Performance and Certification Standards: Statewide Policy Implications November 7, 2002

1. Performance and Certification Standards:Statewide Policy ImplicationsNovember 7, 2002 Dick Hall – Capital Area Asset Building Corporation (CAAB) Jan Huneke – Corporation for Enterprise Development (CFED)

2. Voluntary Certification Standards For Individual Development Account Programs

3. Seven Basic Principles • IDA Programs should be accountable to accountholders and all stakeholders • The certification system should help the field by fostering high quality and attracting funding and other partners without suppressing innovation • The system should be flexible to allow change and refinement and to recognize diversity in the field – encourage learning and change in the field and not locking in current practice

4. Seven Basic Principles • The field is young and much is unknown about best practice and as a result the standards should not be narrowly prescriptive • The system will work best if it is voluntary • The system should be affordable • The system should facilitate the start of an IDA program by allowing commitment to the principles of good practice as a basis of provisional certification

5. History • Undertaken to strengthen field and foster growth • Initial draft presented at 2000 IDA Conference • 600+ attendees’ feedback solicited • Diverse national task force assembled • Conference feedback examined and incorporated into 2nd draft • 2nd Draft widely shared with comments solicited • Posted on IDANetwork; 3,000 people notified via Assets Newsletter; direct mailing to 1,250 stakeholders • Task force processed additional feedback, issued subsequent drafts – current Spring 2002

6. Quality Standards Purposes: Protect the promise Promote quality Identify quality programs Encourage innovation Increase investment Level: Basic - Not best practice Types - Provisional 0 - 12 months and Operating 12 months + Duration - 3 years Measurement - 6 areas of operation

7. Accounts Full Disclosure Agreement - states all program conditions expectations, roles and responsibilities of program and participant Uses: Flexible Match Adequacy: Sufficient to leverage purchase Cost of asset Realistic saving goals Match Approval: Written approval Timely manner Security: IRA eligible, insured Statements: Quarterly - savings, interest, match

8. Funding Match Funds: Equal to 80% maximum contingent liability Room for attrition and unmet goals Program Funds: One year banked or committed and a fundraising plans for future and lost funding

9. Staffing 1. Adequate Staff Recommended: 1 Staff per 50 accounts 2 Staff per 100 accounts Additional FTE per each additional 100 accounts Required: Staffing plan that reflects staff coverage for all phases of program implementation Collaboratives, partnerships, or multi-site roles of organizations included

10. Staffing 2. Experience/Training Either one year of prior experience in IDA program management or training and/or formal TA 3. Networking/ Learning Learning Conference Learning Network (www.idanetwork.org) Other conferences, meetings, listserves

11. Organizational Stability 1. Organizational Experience Experience serving similar populations Fiscal Agent unqualified audit by CPA Less than 2 years old without audit, should contract for fiscal agent services 2. Partnership/Collaborative Agreement Written agreement with goals, roles and responsibilities

12. Organizational Stability 3. Written IDA Program Plan Written program plan updated annually Should address all program issues Should be accessible to all stakeholders 4. Written Policies and Procedures Day to day operations, ie. income guidelines, enrollment, handling of missed deposits, etc. Must be provided to all staff

13. Asset Training 1. Basic Personal Financial Management Training Training that covers all aspects of financial literacy as specified 2. Asset Specific Training Training on homeownership, business start- up or post-secondary education/training

14. Management Information System and Reporting 1. MIS Required Monitor and report on demographics, savings, asset purchases and financial and operational aspects of the Program. (MIS IDA or equivalent) 2. Annual Reporting Written annual reports to public and Certification Review Board on number of accounts open, total and average monthly savings, etc. using standard format

15. Process Certification Certification Website “Yellow Book” Auditor Audit Module Back-Up Documentation Certification Review Board

16. Process Re-Certification Annual Reports using Audit forms demonstrating consistent maintenance of quality standards Filed with Certification Review Board De-Certification Annual Report suggests decline in standards Corrective Action Plan should accompany the filing of a new annual report within 60 days

17. Audit Process Documentation and Files Full Disclosure Agreement Partnership/ Collaborative Agreement Policy and Procedure Manual Staffing Plan Participant Handbook Comprehensive Proposal/ Business Plan Program Budget Bank Agreement

18. Audit Process • Application Form and Fee ($200.00 ) • The Auditor • “Yellow Book” Auditor - Grant Thornton • Review documentation, files, and staff interviews • Auditor Feedback • Objective observation of program • Audit Module reflecting evaluation of each standard • Audit Memos • Management Letter

19. Audit Process • Certification Review Board • Submission of Management Letter to an objective body made up of key stakeholders • Independent decision making body • Corrective Action Plan • If management letter reflects deficiencies, program can decide not to submit to the Board • Develop a Corrective Action Plan addressing deficiencies • Auditor may review changes when implemented and issue a memo on the Corrective Action Plan indicating compliance with standards • Resubmission to Certification Review Board

20. Audit Process • Certification Award • Issued by Certification Review Board • Good for three years supported by positive annual reports • Certified programs will be published with list of endorsements on-line and in Asset Newsletter • May be displayed at Program site

21. Next Steps 1. Pilot Program - Closely monitored pilot with 25 sites 2. Modify and Improve - Standards and Process 3. Develop list of endorsements 4. Develop Certification Website 5. Hire staff to manage ongoing implementation and improvement process 6. Full Scale Launch to the Field

22. Statewide Policy Implications • Benefits and Challenges of Performance/Certification Standards • What Standards are Currently Being Used? • How are They Being Used? • What’s Working/What’s Not? • How do Changes in Delivery Models and Products Impact the Use of Standards?