budgets/closeouts reconciliations expenditures advances what’s new laws, regs, policy presenter:...
TRANSCRIPT
HICAP & Title V Fiscal Connections
• Budgets/Closeouts• Reconciliations• Expenditures• Advances
• What’s New• Laws, Regs, Policy
Presenter:Vern Foster, Aging Programs Analyst IICalifornia Department of AgingVern.Foster @ aging.ca.gov(916) 928-2746
1
This Session Will Take You on a Scenic Ride Down the Fiscal Highway…
Our adventure includes stops at… The Fiscal Compliance Café (Ooooooooh…)
Budgets/Closeouts Reconciliations
Monthly Expenditures Advances
The Newsroom (Aaaaaaaah…)
What’s new at CDA
The Fiscal Library (Very Interesting…)
Applicable Laws, Regs, Policies for CDA’s programs
Our Road Map
Older Americans Act -2006 (OAA) – Title VOlder Californians Act (OCA) – HICAPCode of Federal Regulations (CFR) – Title VCDA Standard Agreement
Contract Terms and Conditions DPA Rules for Personnel and Travel
Program Memos (Policy)
More later…
Applicable Laws, Regs, Policy
BudgetIt’s Not Just a Budget… Identifies how all contract funds will be used Identifies all other local funds used Covers Compliance Checks (Laws, Regs, Policy)
5% Mental Health Duals Final Budget – Due April 30
Closeout Due August 15 Compliance Checks
5% Mental Health Duals Monitored Statewide
Show State Funds expended first (Use or lose) Reallocate Unspent Federal Allocations as OTO (Bud Rev 1)
HICAP Budget and Closeout Reporting
BudgetsAgain, It’s Not Just a Budget… Identifies All Funding Compliance Checks
Maximum AAA Admin – 8% of Total Federal Minimum PWFB – 79% Match – currently 11.82 of federal (10% plus 1.82% to cover State portion)
State Funds were removed from the Governor’s Budget Final Budget – Due April 30
Last opportunity to adjust budget Closeouts - Due July 30
Compliance Checks Same as the budget
Match Monitored statewide
Unspent Allocations returned to DOL
Title V Budget and Closeout Reporting
HICAP (CDA 245) Due the 30th of each month, submitted via email
Request For Funds (RFF) for future month (30 days ahead)
Expenditure Report for prior month (30 days prior) July Expenditures due August 30 October RFF due August 30
Title V (CDA 29) Due the 15th of each month, submitted via email
Request For Funds (RFF) for future month (15 days ahead)
Expenditure Report for prior month (15 days prior) Aug Expenditures due Sept 15 October RFF due Sept 15
Input expenditures before requesting funds (RFF)
Monthly Fiscal Reporting - Due Dates
Monthly Expenditure Reporting Report Actuals
County/City costs reported monthly Report all activities Report all funding used
Program Income Other Funds Match (Title V)
Report Timely Reconcile monthly
Adjust AAA records to reflect CDA adjustments Expenditure Reconciliations sheets (mailed monthly)
Compare Budget to Y-T-D Actuals before reporting
Monthly Fiscal Reporting
HICAP
HICAP Summary of ExpendituresFY: 2011/12
PSA 34
HICAP Reimb HICAP HICAP Fund HICAP HICAP Federal HICAP
CDA 245 HICAP Reimb HICAP Fund HICAP Federal CDA 245
Month Reimb Admin Total Fund Admin Total Federal Admin Total Total
July 12,167 559 12,726 8,480 550 9,030 0 0 0 21,756
August 11,513 1,209 12,722 8,500 1,000 9,500 0 0 0 22,222
September 12,522 623 13,145 8,500 500 9,000 0 0 0 22,145
October 12,692 596 13,288 7,500 500 8,000 0 0 0 21,288
November 12,760 513 13,273 6,000 539 6,539 0 0 0 19,812
December 5,187 1,096 6,283 15,883 0 15,883 0 0 0 22,166
January 12,188 1,141 13,329 0 0 0 6,818 0 6,818 20,147
February 19,394 442 19,836 0 0 0 0 655 655 20,491
March 11,262 0 11,262 0 0 0 8,694 1,146 9,840 21,102
April 0 0 0 0 0 0 21,856 1,131 22,987 22,987
May 0 0 0 0 0 0 22,176 1,117 23,293 23,293
June 0 0 0 0 0 0 32,097 1,203 33,300 33,300
Total Expended 109,685 6,179 115,864 54,863 3,089 57,952 91,641 5,252 96,893 270,709
Budget: Rev 1 109,740 6,179 115,919 54,863 3,089 57,952 100,298 9,094 109,392 283,263
Total Expended 109,685 6,179 115,864 54,863 3,089 57,952 91,641 5,252 96,893 270,709
Bal to be Expended 55 0 55 0 0 0 8,657 3,842 12,499 12,554
Percent Expended 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 91.4% 57.8% 88.6% 95.6%
Budget/12 9,660 4,829 9,116 23,605
Notice HICAP Reimb. & HICAP FundState funds spent 1st
HICAP Fed. last to be spent
1st three months – up to 1/12th per month for each funding source• Based on need• Recommend spending down State (Reimbursement and HICAP
Fund) before spending Federal (SHIP) dollars Beginning with the October Advance, RFF’s are
approved based on the Reconciliation process, which calculates both:Balance Available and Maximum Approvable The lesser of these amounts will be the maximum
that can be approved• The maximum approvable amount may be overridden with
appropriate justification
HICAP Request for Funds (RFF)
SUMMARY OF HICAP ADVANCES HICAP HICAP HICAP Total
Month Reimb Fund Federal AdvancesUnearned Funds 0
July 9,659 4,829 0 14,488 August 9,659 4,829 0 14,488
September 9,659 4,829 0 14,488 October 15,268 12,750 0 28,018
November 13,350 14,850 0 28,200 December 13,900 15,865 0 29,765
January 14,424 0 0 14,424 February 17,500 0 0 17,500
March 12,500 0 0 12,500 April 0 0 3,000 3,000 May 0 0 7,742 7,742 June 0 0 48,500 48,500
June Suppl 0 Total Advanced 115,919 57,952 59,242 233,113
Advance 1/12 9,660 4,829 9,116
HICAP Advance Requests
Notice that Advance pattern follows expenditure pattern
Federal expenses not reported until State is expended
Let’s look at the calculation!
Advance to Expenditure Reconciliation
HICAP Request for Fund/Expenditure Reconciliation with InstructionsMaximum Approvable Calculation
Example: RFF Month: APRIL (Due February 28)
FEDERAL FUNDS
AMOUNT REQUESTED 37,500
APPROVED REQUEST 35,053
CASH ON HAND CALCULATION
Description
Approved Thru Prior Month RFF YTD ADVANCES THRU MONTH OF MARCH 352,916 YTD Advances
As Reported by AAA YTD EXPEND THRU JANUARY ( - ) 258,646 less: YTD Expend
Advances - Expenditures CASH ON HAND = 94,270 Actual AAA Cash on Hand
Average Monthly (from below) x 2 PROJECTED EXPEND MONTHS (2) FEBRUARY, MARCH ( - ) 73,899
less: Proj 2 months Expend
Actual Cash on Hand - Proj Expend ESTIMATED CASH BAL ON HAND ( = ) 20,371Projected AAA Cash on Hand
Available for April Expenses
MAXIMUM APPROVABLE ADVANCE CALCULATION
YTD Exp / months reported CALCULATED AVG MONTHLY EXP 258,646 divided by 7 36,949
Average monthly expenses
Calculate Max Cash Allowable 150% OF AVG MONTHLY EXP 36949 x 1.5 = 55,424
Max Cash on Hand Allowable
Less: Estimated Cash Bal on Hand EST CASH ON HAND ( - ) 20,371 less: AAA Cash Balance
Max Cash on Hand Allowable MAX APPROVABLE REQUEST* ( = ) 35,053 Maximum Cash AdvanceAfter Contract Balance Review * Subject to funding available
1st two months – up to 1/12th per month• Based on need
Beginning with the September Advance, RFF’s are approved based on the Reconciliation process, which calculates both:Balance Available and Maximum Approvable
The lesser of these amounts will be the maximum that can be approved• The maximum approvable amount may be overridden with
appropriate justification
Title V Request for Funds (RFF)
See next slide
Title V Reconciliation
Differs from HICAP and Area Plan – Only 1 month of projected expenses
Why?
Title V Request for Fund/Expenditure Reconciliation with InstructionsMaximum Approvable Calculation
Example: RFF Month: APRIL (Due March 15th)
AMOUNT REQUESTED 37,500
APPROVED REQUEST 0
CASH ON HAND CALCULATION
Description
Approved Thru Prior Month RFF YTD ADVANCES THRU MONTH OF MARCH 352,916 YTD Advances
As Reported by AAA YTD EXPEND THRU FEBRUARY ( - ) 258,646 less: YTD Expend
Advances - Expenditures CASH ON HAND = 94,270 Actual AAA Cash on Hand
Average Monthly (from below) x 1 PROJECTED EXPEND MONTH MARCH ( - ) 32,331 less: Proj 1 month Expend
Actual Cash on Hand - Proj Expend ESTIMATED CASH BAL ON HAND ( = ) 61,939
Projected AAA Cash on HandAvailable for April Expenses
MAXIMUM APPROVABLE ADVANCE CALCULATION
YTD Exp / months reported CALCULATED AVG MONTHLY EXP 258,646 divided by 8 32,331
Average monthly expenses
Calculate Max Cash Allowable 150% OF AVG MONTHLY EXP 32,331 x 1.5 = 48,497Max Cash on Hand Allowable
Less: Estimated Cash Bal on Hand EST CASH ON HAND ( - ) 61,939
less: AAA Projected Cash Balance
Max Cash on Hand Allowable MAX APPROVABLE REQUEST* ( = ) -13,442 Maximum Cash AdvanceAfter Contract Balance Review * Subject to funding available
Only 1 Month Projected
We’re on the Home Stretch!
Stretch…….
Next Stop… What’s New with Fiscal?
Tightening of Expenditure/Contract spending More Federal scrutiny of all of our fiscal
processes, particularly Expenditure and Advance processes Over-Advancing (in excess of actual need) Underspending (Grants not fully expended)
More Fiscal Accountability◦ Fiscal Team will be returning questionable expenditure
postings and advance requests Under/Over budgeted amounts Under/Over advance
Tightening of Monthly reporting Timely reporting - monthly No more submitting 2-3 months at a time Late and sporadic AAA monthly reporting causes
inaccurate projections at the Statewide level
What’s New with Fiscal?
Total HICAP Contract
Monthly Closeout
Disbursed Add. Owed Owed to Grant Percent
PSA # thru June to AAA CDA Owed to AAA
1 259,488 259,488 0 11,367 0.00%
2 277,210 274,904 2,306 0 0.83%
3 283,263 233,113 35,180 0 12.42%
4 682,047 682,047 0 7,329 0.00%
6 378,065 187,749 185,075 0 48.95%
7 389,192 245,786 98,414 0 25.29%
8 315,735 269,035 12,230 0 3.87%
9 411,360 351,382 59,978 0 14.58%
10 568,562 391,191 66,586 0 11.71%
12 263,623 262,254 0 8,584 0.00%
13 264,876 239,859 25,017 0 9.44%
14 315,851 315,851 0 2,429 0.00%
15 279,324 221,939 44,706 0 16.01%
17 338,172 338,172 0 24,336 0.00%
18 303,247 251,536 30,005 1,061 9.89%
19 1,070,395 711,835 306,120 0 28.60%
20 409,520 272,436 131,239 0 32.05%
21 481,737 391,783 86,493 0 17.95%
22 628,603 628,603 0 37 0.00%
23 714,120 644,791 41,300 0 5.78%
25 753,671 653,095 23,050 0 3.06%
27 479,565 452,362 0 637 0.00%
30 281,312 281,312 0 0 0.00%
31 302,182 150,147 121,727 0 40.28%
32 279,531 258,452 21,079 0 7.54%
33 295,875 235,685 47,301 0 15.99%
Five AAA’s received between 25% and 50% of their HICAP grant funds after the contract period closed.
Contract Under-performinga AAA Fiscal Responsibility
FISCAL OFFICER will: Ensure contract funds are fully expended
Work with Administration and Program staff monthly Monitor AAA Direct and Provider Contract
Expect closer monitoring by CDA Program and Fiscal staff AAA’s will notice an increase in calls from CDA staff AAA’s that appear behind in their spending will be asked
to provide a plan for expending all funds
What’s New with Fiscal? Continued…
Total HICAP Unspent Percent
PSA Grant Funds 2011-12 Funds Unexpended
1 259,488 11,367 4.4%
2 277,210 0 0.0%
3 283,263 14,970 5.3%
4 682,047 7,329 1.1%
6 378,065 5,241 1.4%
7 389,192 44,992 11.6%
8 315,735 34,470 10.9%
9 411,360 0 0.0%
10 568,562 110,785 19.5%
12 263,623 9,953 3.8%
13 264,876 0 0.0%
14 315,851 2,429 0.8%
15 279,324 12,679 4.5%
17 338,172 24,336 7.2%
18 303,247 22,767 7.5%
19 1,070,395 52,440 4.9%
20 409,520 5,845 1.4%
21 481,737 3,461 0.7%
22 628,603 37 0.0%
23 714,120 28,029 3.9%
25 753,671 77,526 10.3%
27 479,565 27,840 5.8%
30 281,312 0 0.0%
31 302,182 30,308 10.0%
32 279,531 0 0.0%
33 295,875 12,889 4.4%
TOTAL 11,026,526
539,693 4.9%
AAA’s that have an unspent balance of HICAP Funds in excess of 5%
In the current fiscal climate: Funding is tight! Every government entity is under
increased scrutiny and accountability for funds. Federal Audit findings related to late pay out of funds State Controller is scrutinizing payment processes Unreconciled Advance Requests - Inability to make accurate
Expenditure and Cash projections Every year we have unspent funds we are showing
that we don’t have a need for the funding, therefore we increase the risk of losing Federal Funds
Potential loss of federal baseline dollars Potential loss of OTO Cannot justify asking for more HICAP dollars
Why?
CDA Contract Funded Property Reporting◦ $500 Limit has been established
PM forthcoming… AAA’s must track equipment with a cost of $500 or
more New CDA 32 (Property Form) New CDA 248 (Request to Dispose Form)
New CDA 248 Process to involve CDA Program and Fiscal staff
And More…What’s New with Fiscal? Continued…
Audit Findings – Provider Match
CDA Audits has found that many AAA’s have not been testing Provider Match
Provider Match must be tested by AAA. Immediately begin testing provider match
Can lead to disallowed costs if match is not verified Use risk-based approach to determine amount of
testing samples If audit of Match has never been performed – test
100% to establish risk CDA Audits will begin verifying and disallowing costs
associated with untested provider match• Contact CDA Audits for more information
And Finally… What’s New with Audits?
How are we doing?
How’s our Time? Do we have time for Laws, Regs, Policy?
Or are we ready for a Q & A period?
Older Americans Act - 2006 (OAA) Title V – Community Service Senior Opportunities Act
Section 502 – Admin Allocations , Non-Federal Share, PWFBAdministration Allocation - Not more than 13.5% of
federal allotment CDA 5.5% AAA Maximum - 8%
Overall Match =10% The Governors Budget removed all Title V funding AAA’s have agreed to pay the 10%, plus CDA’s Admin Match
share Current Match = 11.82
PWFB = 75 % Since CDA keeps 5.5% to Administer Title V, AAA’s PWFB
minimum increases to 79% AAA PWFB = 79%
Fiscal Library - What Requirements Drive What We Do?
Older Californians Act (OCA) – Enacted 1997◦ Established CBSP Programs
State funding removed from Governor’s Budget - 2009 CBSP Program funding eliminated Health Insurance Counseling and Advocacy Program (HICAP)
funding remains
What Requirements Drive What We Do? Continued…
Code of Federal Regulations (CFR) Title V Administrative Requirements
20CFR641 - Also Refers to: 45CFR74 – Non-Profits, Hospitals, Institutions of Higher
Education 45CFR92 – State and Local Governments
Primary areas covered
Standards for financial management systems Period of availability of funds Cost Classifications Match Allowable Costs Program Income Audit Requirements Programmatic Requirements
What Requirements Drive What We Do? Continued…
Cost Principles – Allowable Costs 20CFR641 – Title V Administration
Requirements Also Refers to:
2CFR220 - Institutions of Higher Education (OMB A-21) 2CFR225 - State and Local Governments (OMB A-87) 2CFR230 - Non-Profits (OMB A-122)
Primary areas covered Appendix A – General Principles
Allowability Reasonableness Allocating Costs
Appendix B - Selected Items of Cost (Costs Listing)
Code of Federal Regulations (CFR) Continued…
CDA Standard Agreement◦ Contract Terms and Conditions
DPA Rules - Personnel and Travel
Departmental Program Memos (Policy)◦ New Departmental Policies
What Requirements Drive What We Do? Continued…
Fiscal Compliance? Closeouts Budgets
Reconciliations?
Expenditures Advances
What’s New at CDA?
Laws, Regs, Policy?
Have we hit our target???
Thank You All For Coming!