California Department of Public Health

Local Food and Nutrition Education

Fiscal Orientation

Agenda

• Welcome• Intro of Network staff• WebEx features – Chris F. • Download forms (PL and DPA pocket guide)• Will have a 10 minute break ½ way through• Training will be split into 4 parts1. Network general info. - CP2. Budget Justification - CV3. Budget Justification (cont.) - CP4. Contract “housekeeping” - CV

Goal of Fiscal Training

To ensure that our LFNE contractors have an accurate understanding of the fiscal requirements of their Network contract.

A Little About the Network Program . . . .

Network for a Healthy (Network) California

Funding Structure

USDA

California Department of Social Services

California Departmentof Public Health

RegionalNetworks

Local Incentive Awardees (LIA)

Special Projects(includes LFNE)

• Participants are receiving or eligible for USDA SNAP Program/food stamps (formerly Food Stamp Program)

• Census tracts w/ at least 50% of the target audience at or below 185% of the Federal poverty level

• Individual schools: 50% or more free and reduced lunch program

Target Audience

Roles

• Contract Manager (CM)

• Program Manager (PM)

• Contractor

Contract Manager (CM)

• Budget justifications, budget adjustments and source documentation review

• Contract, fiscal and administrative issues (including negotiations and processing of contract)

• Payment of invoices

• MOUs and Subcontractor Agreements

• Equipment management/tagging

• Travel approval (in discussion with PM)

• Conduct desk reviews/site visits

• Provide ongoing TA

Program Manager (PM)

• Assistance in development and approval of SOW

• Clarification of USDA Guidelines for SOW activities

• Review of SOW progress reports and Final Progress Report Analysis (FPR)

• Conduct site visits

• Provide ongoing technical assistance

ContractorFiscal Responsibilities

• Compliance with USDA rules and regulations.

• Documentation, completion and timely submission of required fiscal reports.

• Prepare and respond to Network and USDA site visits.

• Respond to Network requests for information.

• Retain all records related to contract for 3 years

after the end of the contract term.

ContractorProgram Responsibilities

• Conduct all Network activities per USDA Guidelines

• Complete all objectives and activities in SOW as scheduled.

• Full completion of Semi Annual Activity Report (SAAR),Final Progress Report (FPR), and Interim Progress Reports

• Provide assistance and information to the Network team, PCR team or USDA during site visits

SNAP-Ed Plan Guidance(formerly FSNE)

• Provides USDA Guidance

• Allowable and Unallowable activities.

• Available in October on Network website.

Overview of Budget Justification

Budget Justification

• Gives the basis for the costs in your budget.

• Must correspond directly to SOW

• Prior CM/PM authorization required for any changes

• Part of a contractual agreement between Contractor and California Dept. of Public Health—must be adhered to.

Budget Justification Nine Line Items

A. Personnel

B. Fringe Benefits

C. Operating Expenses

D. Equipment Expenses

E. Travel & Per Diem

F. Subcontracts

G. Other Costs

H. Indirect Costs

I. Total Costs

A. Personnel

• Name and Title of Staff

• Position description of each staff (USDA approved descriptions recommended)

• % of time spent on allowable activities

• FTE or hourly rate must be based on 2080 hours/year.

Staff Time Reporting Requirements

• Document time spent on ALLOWABLE nutrition education activities (prime and subs)

• 100% FTE of time on Network activities:Semi-Annual Certificate of Activity

• Less than 100% of time on Network activities:Weekly Time LogApproved Quarterly Time Study (to be approved in

Plan)

• Expenses based on actual time and actual salary rate per employee.

Weekly Time Log

• Clearly delineate documented time for each activity in 15 minute increments.

• Activities must be listed on reverse side of all logs

• Must be signed by Staff and Supervisor (Project Coordinator may sign)

• Can be customized with prior CM/PM approval

B. Fringe Benefits

• Records actual expenditures associated with fringe benefits for each employee.

• Average fringe can be used during budgeting, actuals used when reporting to Network.

• Based on hours documented using time log for each employee.

• Must include a list of items covered under Fringe in Budget Justification.

C. Operating Expenses

• Routine and ongoing expenses (e.g. postage, phone, routine copying, office supplies).

• Supported by vendor invoices, bills, receipts

• Facility costs must be based on actual expenses (not fair market value or realized cost)—must include a formula for the basis on the budget justification.

• Must be prorated by FTE of staff incurringthese expenses.

Calculating Operating Expenses

• Prorating formula FTE of SNAP-Ed Staff = % to prorate

for FTE of Organization Staff

% to prorate for SNAP-Ed x monthly cost = budget cost for SNAP-Ed

• Historical costs - Costs are based on previously documented expenses. This is best for determining higher than average costs.

• Allocated costs - Costs are based on set amount of expenses assigned to individual staff within an organization.

D. Equipment

• Non-expendable property used to conduct eligible nutrition education activities

• Must be prorated by FTE of staff using the equipment (office furniture, computer, printer, etc.)

• Costs must be supported by vendor invoices, bills, receipts

• Prior written authorization is required by CM/PM for any equipment purchases not in the approved Budget Justification

Equipment Tags After purchase of equipment with Federal Share funds:

• Contractor must complete a Contractor Equipment Purchased with CDPH Funds form (Exhibit J) and submit to assigned CM along with invoice that includes equipment expense.

• CM will obtain tags from CDPH for equipment and provide them to the contractor with instructions on their placement.

• Immediately report damaged, lost or stolen equipment so that proper procedures can be followed.

Commonly purchased items:

• Minor Equipment are items under 5K

• Computer/laptop (State tag)

• Bookcase (blank tag)

• Kitchen appliances (blank tag)

• TV/DVD Player (State tag)

• Storage cabinet (blank tag)

What Requires Equipment Tags?

Equipment (cont.)

• At close of each contract term, complete Inventory/Disposition of CDPH Funded Equipment form (Exhibit K) and submit to assigned CM.

Additional information re: Computers/laptops purchased w/ Network Federal Share funds:

• Contractors must ensure that State-approved encryption and anti-virus software is installed as per Program Letter 09-03 for all computers used to conduct State business.

• Installation of this software will ensure personal/confidential data are secured using current State standards.

E. Travel and Per Diem

• Network sponsored trainings, conferences, and meetings are

100% allowable for all staff.

• All Non-Network sponsored trainings conferences, meetings must be pre-approved by your CM/PM utilizing the Non-Network Sponsored Travel Pre-Approval Form and prorated appropriately.

• All Travel expenses must adhere to current DPA rates (included as Exhibit G of your contract). This applies to the Contractor as well as all Subcontractors.

Travel and Per DiemDocumentation

Travel logs/claims for each staff (separately) which lists the following:

• Name/title of person traveling

• Date(s) of travel

• Start and end time

• Purpose and location of travel

• Hotel, parking, airline and any other receipts

• An agenda must accompany the travel log/claim.

DPA Rates/Guidelines:

• Breakfast ($6), Lunch ($10), Dinner ($18), Incidentals ($6) – trip is 24 hours or more

• Mileage to be charged at 55 cents/mile

• Most in-state lodging to be charged at $84/night. Alameda, SF, San Mateo, and Santa Clara counties to be charged @ $140/night. LA and San Diego to be charged at $110/night.

• Current DPA rates always to be used

F. Subcontracts

Each Subcontractor requires:

• Budget Justification and description of service

• Signed Subcontractor Agreement (Federal Share)

• Adherence to all USDA/CDPH guidelines and rules

• Documentation retention for 3 years

Also include w/ Sub Agreement:

• Copy of the Exhibit D (F), paragraph 5, page 7 “Special Terms and Conditions” for Federally-funded contracts

• Information confidentiality and security requirements

• Information systems security requirements for projects

• These documents are found in contractor’s Network contract and are to be housed w/ sub agreement

G. Other Costs• Non-routine, occasional or one time expenses:

Publications/materials/videosFood for demonstrations/taste

testings

• Must be itemized on the budget justification and show the basis for the costs.

• Nutrition Education Materials for Critical Program Delivery formerly known as Nutrition Education Reinforcement Items (NERI) — must be $4 or less each.

• Must be documented by vendor invoices/receipts.

H. Indirect Costs• Expenses not directly associated with deliverables

(bookkeeping and payroll services, janitorial services, insurance, etc.).

• Should be based on organization’s Federally Negotiated Indirect Rate whenever possible.

• Actual expenditures must be used and documented with a copy of organization’s indirect cost rate and a list of all items billed under this line item.

• If no Federally Negotiated Indirect cost rate—cost cannot exceed 25% of total personnel and fringe expenses. (This formula must be approved by your CM.)

Invoicing and Budget Adjustments

• Must be based on actual expenses incurred during the quarter—to the penny, no rounding

• Correspond directly with the approved budget justification

• Be substantiated by supporting documentation (receipts must match invoice)

• Submit original documents signed in blue ink by the authorized contract representative

• No correction fluids or tapes

• Fill in all information on form (date, contract number, contract name, etc.)

Invoice Documents

Federal Share Invoice• Invoices cannot list negative numbers

• Over-expenditure of a line item requires a Budget Adjustment Request (BAR) and written justification

• Supplemental invoices must be utilized for expenses not originally billed in a particular month/quarter. Do not bill these expenses on the next quarter.

• Invoice only documented and allowable expenses

• Please check your math

Budget Adjustment Request (BAR)

• BAR used to revise line item amounts in Federal Share budget

• Cannot exceed 15% of total agreement per line item or cumulative maximum of $100,000 per year

• Total Federal Share budget amount per year can not increase or decrease

• Must be programmatically justified and not alter SOW

• Requires prior written approval from CM/PM

• Submit prior to 4th quarter invoice

Payment Process• Contract Manager review

5-10 business days (we try to turn around error-free invoices within 1-2 days)

• Network Accounting Staff Review1-7 business days

• CDPH Accounting Staff Review3-10 business days

• State Controller’s Office2-3 business days to log in; check

mailed within 15 calendar days

Total time approximately 45-60 business days (we strive for the 45-day time frame)

Network Address

• Regular MailDepartment of Public HealthNetwork for a Healthy CaliforniaATTN: (Assigned Contract Manager)P.O. Box 997377, MS 7204Sacramento, CA 95899-7377

• Overnight MailDepartment of Public HealthNetwork for a Healthy CaliforniaATTN: (Assigned Contract Manager1616 Capitol Avenue, MS 7204, Suite 74.516Sacramento, CA 95814

Contractor’s Fiscal Schedule

Invoices

• Federal Fiscal Year October 1 to September 30.

• Invoices paid in arrears, quarterly or monthly.

• Deadlines per USDA. Contact CM for extension

Period Covered Due Date

Q1 10/1 - 12/31 January 31

Q2 1/1 - 3/31 April 30

Q3 4/1 - 6/30 July 31

Q4 7/1 - 9/30 December 31

• Monthly invoices due 30 days after invoice period.

A Little About Source Documentation . . .

Source Documentation

• USDA guidelines apply to Federal Share and billing must be documented consistently.

• Documentation must:

- Be dated

- Match invoices

- Be organized by line item

Who Reviews Source Documentation?

• The PCRT will be reviewing source documentation during their scheduled visit to ensure compliance.

• Your Contract Manager will be conducting a desk review at least once during the contract term.

• USDA site visits may occur with advance notice

Program Compliance Review Team (PCRT)• An on-site fiscal review will take place once per

contract term by PCRT• Contractor will be notified via e-mail by PCRT

approx. 2 months in advance• Review will consist of assessing source

documentation from one fiscal quarter in all billed line items (includes WTLs and all receipts)

• A PIP (Program Improvement Plan) will be developed by PCRT should there be findings from review; CM will work w/ contractor to resolve.

Other Network Forms/Requirements . . . .

Memorandum of Understanding

• Memorandum of Understanding (MOU) are required with collaborating organizations

• Required for Federal Share if collaborating organization is providing a resource significant to completion of SOW

• Often times is used for in-kind space provided, services, etc.

MOU Requirements

• Name of organizations

• Background of each partner

• Description of proposed activities

• Signatures, titles and dates

Audit Requirements

• As required when utilizing federal funds, the Network is requiring annual Financial and Compliance Audits for all contracts

• Is req’d if contractor is a nonprofit organization and receives $25,000 or more from any State agency under a direct service contract.

• See Fiscal GM Section 1300.

Funding Application Package(FAP)

• Required of renewing contractors on a yearly basis

• Annually updated for multi-year continuing contractors consists of conference call review of forms.

• Forms are submitted to the Network for CM/PM review

• Included in the SNAP Annual Plan to USDA

• Applications reviewed and approved by the Network and USDA

2010 Continuing FAP timeline

• January 15, 2009: E-mail continuing FAP documents and cover letter to contractor

• January 29, 2009: Teleconference call with contractor scheduled

• February 5, 2009: Deadline for contractors to submit continuing FAP documents to CM and PM for review

• February 2 - 27, 2009: Teleconferences with continuing contractors to take place w/ CMs and PMs

• March 2 - April 2, 2009: CM and PM to finalize all FAP documents

• April 3, 2009 : All FAP documents finalized

Network Website

http://www.cdph.ca.gov/programs/CPNS/Pages/default.aspx

USDA Guidance for FFY 2009http://www.cdph.ca.gov/programs/cpns/Documents/Network-SNAP-EdGuidance-2009-01.pdf

Thanks to all of our participants!

Questions . . . .