Closing out TOC’s Grants

1. Closing out TOC’s Grants John Chamberlin August 2014 jchamberlin@worksystems.org

2. Key Tasks • Engage an accountant to perform a review to determine potential close-out issues, assets and liabilities. The review should be completed sometime between January 1 and March 31, 2015. • Speed up the annual audit cycle. The audit report for the year ending June 30, 2015 should be delivered as soon as possible after June 15th. The audit will build upon the above “review.”

3. Key Tasks • Accelerate the schedule, if possible, of contractor monitoring by TOC staff and of CCWD monitoring of TOC. Also accelerate the resolution of audit and monitoring findings to the extent possible. • The goal is to have a clean slate on July 1, 2015.

4. Key Tasks • Enter into “Transition Agreements” with each of the four successor workforce areas … the North Coast, the South Coast, Central Oregon and Eastern Oregon … and also with CCWD. The Linn-Benton- Lincoln Counties workforce area will need similar transition agreements with the new North Coast workforce area and with CCWD. Until the new workforce areas are organized (probably sometime between January and June, 2015) CCWD will be the contact point.

5. Transition Agreements: Assets Transfer of assets: 1) carry-out program funds and unspent administrative funds once close-out is complete; 2) tagged and tracked property which the new workforce areas wish to receive; 3)unrestricted cash on hand???; late refunds and credits; and, 4) other assets identified by the “review.”

6. Transition Agreements: Liabilities • Transfer of liabilities: 1) close-out responsibilities after a specified date; 2) payment of bills submitted after July 1, 2015 (all service providers and vendors need notice of an accelerated deadline for bills); 3) staff costs after TOC winds up (unemployment or workers’ comp claims, severance pay, cashing out vacation and sick leave, final pension payments and stewardship arrangements); 4)other liabilities identified by the review or by the final audit report.

7. Transition Agreements • Assignment of service provider and perhaps vendor contracts. • Termination of contracts (including lease agreements) which are not transferred. • Arrangement for record retention for the required period by TOC or the new workforce areas or CCWD. Records to support the allowability of every Federal cost must be kept for three years after close-out and longer if there is an open audit or monitoring finding.

8. TOC/OWA’s Future • TOC is an Oregon “special purpose” intergovernmental agency. The Consortium’s life goes on until the Board of local elected officials terminates the organization in accordance with TOC’s charter and bylaws. This is a possible discussion item with new and existing workforce areas and member governments. • The OWA is a tax exempt, nonprofit Oregon corporation in good standing. This is another asset which may have ongoing value.

9. Thoughts? Questions? • Based upon experience, something will come up which is unanticipated. We need a quick way to make decision, particularly as July 1, 2015 approaches. • The best way to avoid problems is to establish clear timelines and assignments. • The four new workforce areas may have differing views on how close-out and transition is to work. At some point they will have independent management staff, legal counsel and Boards.