effective management and compliance 1 ana grantee meeting february 5, 2015
TRANSCRIPT
Grants and Financial Management
Effective Management and Compliance
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ANA GRANTEE MEETING FEBRUARY 5, 2015
Workshop Goals
To Provide The Framework Of A Financial Management SystemTo Demonstrate The Integration Of Grants Management Into The Overall Financial Management SystemTo Highlight Key Components Of The Financial Management System Required To Insure Compliance With Federal Financial Management Regulations
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Mia Strickland
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Moderator
Tim Chappelle
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Presenter
Susan White
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Presenter
Financial Management System
Budget ProcessAccounting of the ResourcesAuditing
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Budget Process
Budget Process Responsibility
Grantee“The procedure by which a Tribe, organization, or institution of higher education creates and manages a financial plan.”
Administration for Native Americans (ANA)“The appropriating of fiscal resources to accomplish project objectives within a single year’s period of time.”
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Budget Process Key Elements
Coordination Between the Project/Program Director and the Financial OfficerAdherence to the 45 CFR Part 75 Cost PrinciplesAlignment with the Objective Work Plan (OWP)Management of the BudgetRevenue and Cost Forecasting
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45 CFR Part 75 - Cost Principles 1
Factors Affecting Allowability of CostsNecessary and ReasonableConform to any limitations or exclusions in the cost principles or federal awardConsistent with Policies and ProceduresConsistent TreatmentIn Accordance with Generally Accepted Accounting PrinciplesNot a Cost or Used to Meet Cost Sharing of Other Federal AwardsAdequately Documented
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45 CFR Part 75 – Cost Principles 2
Direct and Indirect CostsCost Allocation PlansSelected Items of Cost
AllowableAllowable with ApprovalNot Allowable
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Alignment with Objective Work Plan
Resources Requested Must be the Financial Plan for the Activities Detailed in the OWPAlign the OWP Activities with the Budget RequestsActivities Not Supported by the Budget should be Fully Explained
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Accounting of Resources
Accounting of Resources Description
Grantee“The system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.”
Administration for Native Americans (ANA)“The system of recording and summarizing financial transactions and analyzing, verifying, and reporting the results to ANA.”
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Key Elements of the Accounting Process
Coordination Between the Project/Program Director and the Financial OfficerWritten Procedures Financial StandardsInternal ControlOn-Going Management of the BudgetReporting
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Terms
An Accounting Standard is a guideline for financial accountingThe Generally Accepted Accounting Principles is comprised of a large group of individual accounting standards
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45 CFR Part 75 – Standards 1
Retention, Methods of Transfer, Transmission and Storage of InformationIdentification of All Federal Awards Received and Expended and the Federal Programs Under Which They Were ReceivedAccurate, Current, and Complete Disclosure of Financial ResultsRecords that Identify Source and Application of Funds
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45 CFR Part 75 – Standards 2
Effective Control Over All Funds, Property, and Other AssetsComparison of Expenditures with Budget AmountsWritten Procedures to Implement the Payment RequirementsWritten Procedures to Determine the Allowability of Costs
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Internal Control – GAAP Principles
Segregation of DutiesAccessAuthorizationRecord KeepingVerification
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Federal Standards for Internal Control
Control EnvironmentRisk AssessmentControl ActivitiesInformation and CommunicationsMonitoring
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Budget Management
Preparation of Regular ReportsComparison of Performance with BudgetReview and Explanation of Variances from BudgetCorrective Action and Revision in Budget, if Necessary
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45 CFR Part 75 – Budget Modification 1
Costs Requiring Prior ApprovalTransfer of Funds Budgeted for Participant Support CostsTransfer or Contracting Out Work Not Approved in the Federal AwardChanges in the Amount of Approved Cost-Sharing or Matching
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45 CFR Part 75 – Budget Modification 2
Extend the Period of PerformanceApproval of Carry Forward of Unobligated Balances to Subsequent Periods of PerformanceTransfer of Funds if the Amount Exceeds $150,000 or 10% of budget amountNeed for Additional Funds
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Accounting Resources - Reporting
What Is Financial Reporting?
Financial Reporting Is The Disclosure Of Financial Information To ANA And Administration About How The Project Is Performing Over A Specific Period Of Time
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Purpose of Reporting
It Helps The Project Manager And Administration Engage In Effective Decision-making Concerning The Project Objectives, Activities, And Overall StrategiesIt Provides Information From A Financial Perspective About The Activities Of The Project To The Project Manager, Administration, And ANA
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Types of Reports
Balance SheetIncome Statement
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45 CFR Part 75
Comparison of Expenditures with Budget Amounts for Each Federal Award
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Reporting to Government
Administration for Native AmericansFederal Financial Report 425Frequency: Semi-Annual
Division of Payment Management Federal Financial Report 425Frequency: Quarterly
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Auditing
Grantee Auditing Responsibility
“A complete and careful examination of the financial records of a Tribe, organization, or institution of high education.”
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Auditor’s ResponsibilityTo comply with Generally Accepted Government Auditing StandardsTo have a comprehensive understanding of the Tribe, organization, or institution’s operationsTo analyze the financial data to identify any conditions that would affect the audit workTo evaluate the internal accounting control to determine the amount and type of audit procedures necessaryTo make inspections, observations, inquiries, and confirmations to corroborate dataTo evaluate compliance with federal statues, regulations, and conditions of Federal awardsTo issue a report about the financials that were audited
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Requirement
A Non-Federal Entity (NFE) that Expends $750,00 or more in Federal Awards during the NFE’s Fiscal Year Must Have a Single or Program Specific Audit
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Frequency
AnnuallyExceptions for Biennial Audit
A Tribes that is Required by Constitution or Statute in effect on January 1, 1987A Nonprofit Organization that had Biennial Audits for All Biennial Periods Ending between July 1, 1992 and January 1, 1995
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Grantee’s Responsibility
Secure an AuditorPrepare the Financial StatementsPrepare the Schedule of Expenditures of Federal AwardsFollow-Up and Corrective Action on All Audit FindingsProvide the Auditor with Access to Personnel, Accounts, Books, Records, Supporting Documentation, and Other Information as Needed
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Melanie Mendiola and Thalia Gange
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Presenter
FARM TO TABLE
Farm to Table~Budgeting Process
Management CoordinationWhat do each of us know and what do we need to knowDo any of the staff need trainingPlanned communication among staffInvolve all management staff in the budget process
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Farm to Table~Budgeting Process
Prepare A Budget For Each ObjectiveSupports managing the allocation of staff timeAllows for the allocation of resourcesHelps to avoid big expensive items/events that may not align directly with any objectiveGuides us in projecting revenue for sustainability planning
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Farm to Table~Accounting of the Resources
Management CoordinationAdopt written procedures ASAP (e.g. security of assets, notice of discrepancies, etc)Agree on internal controlsManage your budget on an ongoing basis, especially staffingStay on top of reporting requirements
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Farm to Table~Accounting of the Resources
Management CoordinationWhat happens when the CFO/financial person takes time offAcknowledge and answer questions in writing
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Farm to Table~Accounting of the Resources
Internal ControlSegregation of Duties – cashier duties, inventory, etcAuthorization – check signing, procurement decisionsRecord Keeping – record retention, security of files and personally identifiable information
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Farm to Table~Accounting of the Resources
Budget ManagementEstablish specific time when reports will be ready for internal reviewMeet to discuss comparison of performance with budgetExplain variancesDetermine if a budget revision is necessary and how serious it is
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Farm to Table~Accounting of the Resources
ReportingTypes of reports for:
Board of DirectorsManagementFunder – Administration for Native Americans
Balance SheetIncome Statement
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Farm to Table~Audit Management
Ideas For GranteesWhere is all the information for the auditor being housed, and is it readily available for inspectionAUDIT BEFORE THE AUDITCan you secure an auditor via matching/leveraged resources?
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Questions
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