California Department of Public Health

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California Department of Public Health

• Local Food and Nutrition Education
• Fiscal Orientation

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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 parts
• 1. Network general info. - CP
• 2. Budget Justification - CV
• 3. Budget Justification (cont.) - CP
• 4. Contract housekeeping - CV

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Goal of Fiscal Training

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

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A Little About the Network Program . . . .
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Network for a Healthy (Network) California
Funding Structure
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Target Audience

• 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

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Roles

• Contract Manager (CM)
• Program Manager (PM)
• Contractor

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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

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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

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Contractor Fiscal 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.

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Contractor Program 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

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SNAP-Ed Plan Guidance(formerly FSNE)

• Provides USDA Guidance
• Allowable and Unallowable activities.
• Available in October on Network website.

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Overview of Budget Justification
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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
  Healthmust be adhered to.

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Budget Justification Nine Line Items

• Personnel
• Fringe Benefits
• Operating Expenses
• Equipment Expenses
• Travel Per Diem
• Subcontracts
• Other Costs
• Indirect Costs
• Total Costs

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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.

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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 Log
• Approved Quarterly Time Study (to be approved
  in Plan)
• Expenses based on actual time and actual salary
  rate per employee.

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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

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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.

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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 incurring
• these expenses.

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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.

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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

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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.

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What Requires Equipment Tags?

• 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)

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Equipment (cont.)

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

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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.

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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.

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Travel and Per Diem Documentation

• 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.

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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 _at_ 140/night. LA and San Diego to
  be charged at 110/night.
• Current DPA rates always to be used

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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

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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 contractors Network
  contract and are to be housed w/ sub agreement

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G. Other Costs

• Non-routine, occasional or one time expenses
• Publications/materials/videos
• Food 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.

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H. Indirect Costs

• Expenses not directly associated with
  deliverables (bookkeeping and payroll services,
  janitorial services, insurance, etc.).
• Should be based on organizations Federally
  Negotiated Indirect Rate whenever possible.
• Actual expenditures must be used and documented
  with a copy of organizations indirect cost rate
  and a list of all items billed under this line
  item.
• If no Federally Negotiated Indirect cost
  ratecost cannot exceed 25 of total personnel
  and fringe expenses. (This formula must be
  approved by your CM.)

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Invoicing and Budget Adjustments
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Invoice Documents

• Must be based on actual expenses incurred during
  the quarterto 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.)

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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

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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

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Payment Process

• Contract Manager review
• 5-10 business days (we try to turn around
  error-free invoices within 1-2 days)
• Network Accounting Staff Review
• 1-7 business days
• CDPH Accounting Staff Review
• 3-10 business days
• State Controllers Office
• 2-3 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)

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Network Address

• Regular Mail
• Department of Public Health
• Network for a Healthy California
• ATTN (Assigned Contract Manager)
• P.O. Box 997377, MS 7204
• Sacramento, CA 95899-7377
• Overnight Mail
• Department of Public Health
• Network for a Healthy California
• ATTN (Assigned Contract Manager
• 1616 Capitol Avenue, MS 7204, Suite 74.516
• Sacramento, CA 95814

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Contractors 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.

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A Little About Source Documentation . . .
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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

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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

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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.

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Other Network Forms/Requirements . . . .
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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.

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MOU Requirements

• Name of organizations
• Background of each partner
• Description of proposed activities
• Signatures, titles and dates

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Audit Requirements

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

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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

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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

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Network Website

• http//www.cdph.ca.gov/programs/CPNS/Pages/default
  .aspx
• USDA Guidance for FFY 2009
• http//www.cdph.ca.gov/programs/cpns/Documents/Net
  work-SNAP-EdGuidance-2009-01.pdf

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• Thanks to all of our participants!
• Questions . . . .