Massachusetts Management Accounting Reporting System

(MMARS)

Establishing a Federal Grant

in MMARS

Training Unit

Table of Contents Federal Grant Flow Chart .............................................................................................................. 1 State Laws and Regulations ............................................................................................................. 3

Request to Establish a Federal Grant Appropriation ................................................................... 6 Reporting to the Legislature ......................................................................................................... 7 Reading the Award Letter .......................................................................................................... 12 Check List of Federal Grant Information from the Award .......................................................... 13 Sample Federal Grant Award Documentation for a New Grant ................................................ 14 Sample of Notice of Federal Grant Award for a New Grant ...................................................... 25 Sample of Notice of Federal Grant Award for a Continuing Grant ............................................ 32 BGRG – Grant Reimbursable Document ................................................................................... 36 ACD Federal Payment Systems ................................................................................................ 37 Overview of How to Establish a Federally Funded ISA in MMARS ........................................... 39

Establishing a Grant Referencing an Interdepartmental Service Agreement (ISA) in MMARS .....40 Policy Review for ISAs ............................................................................................................... 42 Document Numbering Requirement for the ISA Form ............................................................... 43 How to Complete the Request for Setting Up FG (ISA) Form ................................................... 43 Documents to Complete to Establish the Seller/Child Account in MMARS ............................... 44 Interdepartmental Service Agreement (ISA) Documentation .................................................... 45

Federal Grant Relevant Tables ......................................................................................................80 Appropriation Table, (APPR) ..................................................................................................... 81 Valid Program/Appropriation Table, (VPA) ................................................................................ 82 Central Expense Level 2, (BQ89LV2) ........................................................................................ 83 Linked Revenues ....................................................................................................................... 86 Revenue Source Code, (RSRC) ................................................................................................ 87 Revenue Budget, (BQ82LV3) .................................................................................................... 88 Reimbursable Grant Budget, (BQ88LV2) .................................................................................. 90 Major Program, (MJPRG) .......................................................................................................... 92 Program Setup, (PROG) ............................................................................................................ 93 Funding Profile Select, (FPRFLST) ........................................................................................... 95

View Funding Profile Link ....................................................................................................... 95 Grant Funding Profile Inference, (GFPI) .................................................................................... 98

Appendix .......................................................................................................................................100 Key Federal Grant Links .......................................................................................................... 101 Department of Homeland Security Amplified Banking Set-Up Instructions ............................. 101 Drug-Free Workplace Act ........................................................................................................ 106 SPENDING PLANS ................................................................................................................. 107 Budget Screens used to Monitor Federal Grants .................................................................... 108

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Federal Grant Flow Chart

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This chart depicts a global view of establishing a Federal Grant in MMARS. The process varies, depending on whether the department is setting up a Non-ISA grant, (both a new and continuing grant), or establishing a federally funded Interdepartmental Service Agreement, (ISA) in MMARS. These cases will be covered in detail later in this material. The Federal Grant process begins with the Department applying for a specific Federal Grant. Once an application to a federal agency is submitted, the department has 30 days to notify the Federal Grants Management Office (FGMO), within the Executive Office of Administration and Finance (ANF), and the Office of the Comptroller (CTR), using the NOTICE OF APPLICATION FOR A FEDERAL GRANT form. The department submits the form once to CTR and it is shared with ANF. The notification process applies to new federal grants only. A request for an appropriation can be done before, or immediately after receiving official notification of an award from the federal agency. An appropriation number is a required piece of information on the Notice of Federal Grant Award form. ANF evaluates the appropriation request and ensures the number requested is available. The appropriation number will be confirmed with agencies. ANF will include those appropriations in the Governor’s budget recommendation for the ensuing fiscal year. If the department is successful in obtaining the grant, a Federal Grant Award Letter is received. The department will complete the Notice of Federal Grant Award form. The award form, along with the award letter is sent electronically (via e-mail) to CTR, (Office of the Comptroller). CTR sets up the necessary MMARS tables allowing the department to use the grant money. Next CTR establishes a Revenue Budget, (BQ82), for the grant using the BGRN transaction. CTR adds the Revenue Source Code to the grant information package. The BGRG, (Reimbursable Grant, BQ88), transaction is processed to a Final status by CTR. This establishes the dollar value of the lifetime of the grant. CTR forwards the grant package to ANF. Next, ANF sets up the Central Expense information, (BQ89), using the BGCN transaction. This establishes the dollar value of the current state fiscal year spending estimate. It also establishes linking from the appropriation account to the revenue account. Once this step is completed, ANF notifies the department. The department must verify the information in MMARS, including the table information and the financial information, on both the lifetime of the grant and for this state fiscal year.

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State Laws and Regulations The Federal Grant process is governed by Mass General Law Chapter 29:6B, (https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIII/Chapter29/Section6b) and Federal Grant Administrative Bulletin, ANF-3.. A revised version of Mass General Law Chapter 20:6B went into effect on January 1, 2013. In M.G.L. Chapter 29:6B, ANF and the Comptroller’s Office are directed to create the procedures to ensure that the intent of the law is followed by state agencies. Federal Grant Administration (ANF-3) is a result of ANF and the Comptroller’s office creating the procedures. Basically, Mass General Law Chapter 20:6B tells agencies what has to happen, and ANF-3 explains how to achieve compliance. The following are some of the key questions with their answers: Who does the agency submit documentation to? The law requires notification be made to the Federal Grants Management Office, (FGMO), located within the Executive Office of Administration and Finance (ANF) and The Office of the State Comptroller, (CTR). However, to avoid duplication, the form is submitted once to CTR and it will then be shared with ANF. The Notice of Application for a Federal Grant form is used. It is submitted electronically in Microsoft Word format, to the following email address: fedgrantapplication@state.ma.us. A sample of a completed form can be found in this document. What are the time reporting requirements? “The department must notify FMGO &CTR no later than 30 day after submitting the application to the appropriate federal agency”. This requirement is found in ANF-3 under Compliance Activities – Notification of Application for a Federal Grant. The instructions are to complete the reporting requirements within 30 days, using the Notice of Application for a Federal Grant form. Since federal application information is needed to complete the state reporting requirement, is would suggest that they should be completed very close to each other.

What are the materials to be submitted for review? Required information can be found in the Notice of Application for a Federal Grant form. (Notice of Application for a Federal Grant ) The Notice of Application for a Federal Grant form specifically states that “All grant program descriptions should be derived from the original grant application. In order to comply with this request, a copy of the original grant application must be available to the person filling out the Notice of Application for a Federal Grant form. It is up to the department to have a procedure in place to share this information and documented in the departments policies and procedures.

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The information needed on the Notice of Application for a Federal Grant form should be taken from the original grant application are from two sections. From the Grant Program and Service Information section:

• Program Description or Purpose • Expected Goals and Outcomes of Program • Describe how the grant fit within the agency’s scope and mission

From the Federal Funding Source Information section:

• Federal Grant name • Federal Funding Agency • CFDA number • Federal Funding Identifier

Exemptions from the review process specifically mentioned in the legislation include:

• Research Grants < $50,000 • New Grants < $5000 • Grants for Damage Costs • Higher Education • American Recovery Reinvestment Act (ARRA) Grants

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NOTICE OF APPLICATION FOR A FEDERAL GRANT The instructions at the top of the form direct users to submit the Notice of Application for a Federal Grant to CTR concurrently with entity’s submission of application to federal funding agency but no later than 30 days after submission. With this goal in mind, the concurrent steps involved in completing this process are: Department submits an application for a federal grant to a federal funding agency

Department completes Notice of Application for a Federal Grant

Department updates the Federal Grants Status spreadsheet by listing the

potential grant as Pending Following these three steps, results in all reporting responsibilities for the potential grant to be completed in a timely and efficient manner. Information entered on the application for a federal grant may be duplicate information requested on the Notice of Application for a Federal Grant. Combining these two steps will make the paperwork process easier. The Request to Establish a Federal Appropriation will allow the department to obtain an appropriation number, which is needed on the Federal Grants Status form. This form should be kept updated so that the department’s CFO can easily upload an up to date quarterly status report to PartnerNet. Department submits a Request to Establish a Federal Appropriation

The Request to Establish a Federal Appropriation may be completed either after the department applies to the Federal Government for a new grant, or after the department received an award. The appropriation number will be needed to complete the Notice of Federal Grant Award form.

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NOTICE OF APPLICATION FOR A FEDERAL GRANT Application is to be submitted to the Officer of the Comptroller concurrently with entity’s submission of application to federal funding agency but no later than 30 days after submission. Submit This Form To: fedgrantapplication@state.ma.us

Request to Establish a Federal Grant Appropriation Federal Grant Administration (ANF-3) covers this topic under the Compliance Activities. It is broken into two parts: Department responsibilities and ANF responsibilities. The following is a breakdown of the responsibilities outlined: Department Responsibilities:

• No state department may expend federal grant funds without an appropriation • Department must request federal grant appropriation account number from ANF for each grant

via email to the ANF Operations Analyst in the ANF Operations Department • Request for Appropriation should be made concurrently with Notice of Application of a Federal

Grant • Requests are required for all federal grants

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ANF responsibilities:

• ANF evaluates Request for Appropriation submissions and ensures number requested is available

• Appropriation number to be used will be confirmed with agencies • ANF will include those appropriations in the Governor’s budget recommendation • If grant is received after publication of the Governor’s budget, agencies still need to request an

appropriation so that ANF and the legislature can also include the new grant account in the General Appropriations Act (GAA)

Reporting to the Legislature Reporting responsibilities are outlined in Comptroller Memo FY#2013-28.

New Legislative Reporting Requirements for Federal Grants

The following is a brief outline of the responsibilities outlined in the memo: Office of the Comptroller Responsibilities:

• CTR is required to report quarterly to the House and Senate Committees on Ways and Means On status of federal funds applied for, received and expended

• CTR will gather information from departments and compile quarterly expenditure reports via

data from MMARS regarding funds received and expended

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Establishing a New or Continuing Federal Grant (Non-ISA)

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MMARS – New or Continuing Grant Process – (Non ISA) This chart illustrates the steps needed to establish a new or continuing grant in MMARS. The department’s responsibilities are outlined under Step 1 of the flow chart. a. Once the award is received from the federal government, the department must immediately fill out the Notice of Federal Grant Award form (this is also referred to as the Setup form) which is available on the Comptroller’s website. Step 2: b. This form requires the appropriation number. If this number was not requested before the grant was awarded, it must be requested now and placed on the Notice of Federal Grant Award form. The department works with ANF to create an appropriation number for the grant. A continuing grant will enter the same appropriation number used on the original grant. c The department prepares the BGRG, (Grant Reimbursable), document. Continuing grants must use a different document identification number on the BGRG, than the original document. However, since the grant already exists, it is a modification of the original BGRG. . The amount for the BGRG for a continuing grant, is for the increase or decrease amount of the award; not the entire grant award amount. d. The department also must prepare a BGCN document which ANF will use to establish the Budgetary Estimated Receipts. If this is not processed, there will be no increased spending limints on the BQ89. The document identifier of the BGCN is listed on the Notice of Award. e. The department submits the electronic federal grant package to CTR. This includes the Federal Grant Award sent by the awarding agency, and the Notice of Federal Grant Award( also known as the setup form). This paperwork is submitted once to CTR and then it shared with ANF. The Notice of Federal Grant Award form is submitted electronically in Microsoft Word format to the following email address: CTRFedGrantAward@MassMail.State.MA.US. All attachments, including the award letter, should be submitted electronically in PDF format. The electronic package is received by CTR. CTR uses the information from Section 1 of the Notice of Federal Grant Award form, and the information contained in the award letter to complete their Set-Up in MMARS, including: Step 3: If this is a new grant, CTR establishes the Revenue Source Code (RSC) and creates the BQ82 budget. Step 4: The appropriate tables are Set-Up or updated in MMARS, including: The Major Program is entered for a new grant. There should be ONLY one Major Program assigned to an appropriation. There will be no change to the Major Program on a continuing grant.

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Program Name: Enter the 10 (or fewer) characters. All Federal Program codes must begin with the letter F. This is the second level of the cost accounting hierarchy. Programs cover a range of award years within a Major Program. If the department receives an additional award notice extending the life of the grant beyond the original “Award Years”, with or without an increase in funds, a new program code is needed. All documents (contracts, encumbrances, payments) will reference this code. If a subaccount changes, this code must change. The Program Short Name must reference the appropriation account. The subaccount must be the subaccount in the award letter or the draw on the federal grant will fail. Enter your department’s DUNS number. An entry in the MJPRG table is established for the Major Program. The program period is listed and it is checked off as Active and Budgeting. The Reimbursement Status will be listed as Allowed for Reimbursement. The Funding Profile table and the Funding Line will identify the federal payment system to be used. If the wrong system is entered, the draw will fail. The Grant Funding Profile Inference Table, (GFPI), is updated to include a new record whenever a new Program is created for a federal grant. The GFPI links together the Major Program, Program and Funding Profile for the grant, to allow for inferences throughout MMARS. Step 5: Once CTR has completed the tables Set-Up, the BGRG can be submitted to Final by CTR. This completes the CTR set-up from Section 1 of the Notice of Federal Grant Award form. If the department included a BGCN document id on the form, the electronic grant package is forwarded to ANF. Step 6: ANF receives the electronic grant package and begins to process Section II for the Notice of Federal Grant Award form. First the Appropriation, (APPR), table is established for the grant. Next, ANF reviews and submits a BGCN, (Central Expense), document for the grant. This loads the current fiscal year portion of the grant onto the BQ89 table. Linking is established between BQ88/89/82. Step 7: The department reviews the table information and the budget structures on the BQ88, BQ89, and BQ82 tables to verify its accuracy. If the information is correct, the department may begin to use the grant.

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ESTABLISHING A NEW GRANT IN MMARS

Comptroller’s Documentation

There is mandatory documentation that must reach the Federal Grants Unit of the Comptroller’s Office. The department is required to:

Prepare the Notice of Federal Grant Award form

Attaching:

• Federal Grant Award Letter • Federal Grant Award Notice Form • *Federal Grant ACH Form

*Note: If the department has never received a federal grant from the specific awarding agency, then an additional requirement will be to complete the ACH form, which would also be a part of the grant package sent to the department by the federal agency. The following sections detail the process of completing the required paperwork.

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Reading the Award Letter Departments receiving funds DIRECTLY from a federal agency will be notified via an Award Letter. There is no standard Award Letter form. There are as many different formats as there are federal agencies. Critical information may be found in the following locations:

• The Award Letter • Additional correspondence from the federal agency • Through your federal contact with the grant

Federal Agencies are required to provide a CFDA#. If you have difficulty obtaining that number, visit https://www.cfda.gov The chart lists the information that will be needed to Set-Up the grant and also displays where in MMARS the information will be used. It may be used as a checklist to determine if all the necessary grant information has been listed. Identifying Key Pieces of Information Located on the Federal Grant Award and Award Letter Prior to completing the Federal Grant (Non-ISA) Set-Up Form, specific information is needed from the federal agency that awarded the grant to the department. Each Federal agency has its own individual federal award form. Award forms differ greatly from one federal agency to another. Key pieces of information may be called by other names on the federal award form, and in many cases the information is not on the form at all. There is a table, listing information needed from the federal agency, to successfully complete the Federal Grant Set-Up Form. Departments should review both the federal award form and the federal award letter in an attempt to find these key pieces of information. If the department is unable to find or identify the information, one phone call can be made to the federal contact requesting the information. Departments should use this table to establish a list of the key pieces of information prior to completing the Federal Grant Set-Up Form.

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Check List of Federal Grant Information from the Award

Information Supplied by the Federal Government

MMARS Table Name MMARS Field Name

Title of the Program Major Program (MJPRG) Name

CFDA# (The Catalog of Federal Domestic Assistance)

Funding Profile Select Table (FPRFLST): Funding Line Funding Identification

Federal Catalog Agency : Federal Catalog Suffix :

Life of the Award Program (PROG) Effective From : Effective To :

Federal Payment System from which funds should be requested

Funding Profile Select Table (FPRFLST): Funding Line Reimbursement Options (1) and Funding Identification (2)

(1) Customer Name : (2) Payment System :

Federal Award Identification Number (FAIN)

Program General Information Sub Account :

Letter of Credit # Funding Profile Select Table (FPRFLST): Funding Line Funding Identification

Letter of Credit No.:

Award Amount BQ88LV2 Budgetary Amounts Awarded

DUNS Number (supplied by the dept.)

Program (PROG) Parcel Number

Special Terms & Conditions Pay attention to these as failure to adhere to special Terms & Conditions may cause draw requests to Reject.

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Sample Federal Grant Award Documentation for a New Grant

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How to Complete the Federal Grant (Non-ISA) Set-Up Form

Background Information: Prior to completion of the Federal Grant (Non-ISA) Set-Up Form, (Notice of Federal Grant Award form), departments must have:

• Received an award package from the federal government

• Completed the Notice of Application for a Federal Grant form and sent to fedgrantapplication@state.ma.us

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Sample of Notice of Federal Grant Award for a New Grant

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Office of the Comptroller Commonwealth of Massachusetts

Federal Grant (Non-ISA) Set Up Form Notice of Federal Grant Award

DATE: 10/28/2013 SUBMIT FORM TO:

Federal Grants and Cost Allocation Office of the Comptroller

Email address: fedgrantaward@state.ma.us BUDGET FISCAL YEAR: 2014

SECTION I. Is this a: × New Grant or Continuing Grant If continuing, is this a: grant award increase or � grant award extension If this is a New Grant, does your department have an established Indirect Cost Rate? × Yes � No DEPARTMENT NAME: Department of Public Health Revenue Source F795 CTR will assign (NEW GRANTS) Central Budget Structure (BGCN - BQ89) COMPLETED BY DEPARTMENT Appropriation Number: 4510-0617 Payroll Indicator Yes × No � Budgetary Estimated Receipts $ BGCN Document Identification No. Cost Accounting Structure (BGRG- BQ88) COMPLETED BY DEPARTMENT Federal Grant Award Amount $413,925. BGRG Document Identification No. BGRGDPH4510061710283 Major Program Table Set-Up COMPLETED BY DEPARTMENT Major Program (6 chars. or less): BHQM23 Major Program Name: The Drug Control Program within the MDPH Major Program Short Name (same as Appropriation number): 4510-0617 Program Table Set-Up COMPLETED BY DEPARTMENT Program Code (10 char or less, 1st character F if Federal): F45100617 Program Name: The Drug Control Program within the MDPH Program Short Name: 4510-0617 Program Start Date: 09/30/2013 Program End Date: 12/29/2015

MMARS extended 90 days to include Accounts Payable Period Sub Account:13TI25421A DUNS Number: 878298900 Funding Profile - Funding Line COMPLETED BY DEPARTMENT Draw Name Customer ID Payment System Code – Check one box EDCAPS VC7000000001 D � ECHO VC7000000002 E � OJP & Homeland Security VC7000000003 L � SMARTLINK VC7000000004 S × ASAP- OTHER VC7000000005 Y � ASAP VC7000000006 Z � GRANT- NON DRAW VC7000000007 No Code � Funding Identification COMPLETED BY DEPARTMENT CFDA# (5 digit code): 93.243 Letter of Credit No.: 4796P Mandatory Requirements - Attachments Federal Grant Award Letter (New & Continuing Grant) Yes X Federal Grant Award Form (New Grant) Yes ×

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COMMENTS: NEW GRANT

SECTION II. Additional Award Information (For Use by the Executive Office for Administration and Finance) COMPLETED BY DEPARTMENT

Federal Award Identification Number (FAIN): 1H79TI025421-01 State Appropriation Name: The Drug Control Program within the MDPH Award Start Date: 09/30/2013 Award End Date: 09/29/2015 Are there any FTEs that are required under this grant? No, there are no required FTE’s. What is the receiving agency’s plan to ensure that affected FTEs or contractors (if any) will not be shifted to operating budgets once the grant ends? While there are some FTE’s with cost sharing, these FTE’s can be 100% supported under a State appropriation if necessary. Projected fringe and indirect cost: Fringe Benefits of $14,352 Indirect Costs of $7,176

Are cost included in grant budget?: Yes X No �

If fringe and indirect costs are not included in grant budget, please outline the plan to pay for the fringe and indirect costs:

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Instruction for Completion of Federal Grant Setup Form (Non-ISA) DATE: Enter the Date the form submitted to the Office of the Comptroller BUDGET FISCAL YEAR

Enter the Budget Fiscal Year

SUBMIT FORM TO: All Grant Forms must be forwarded to the Office of the Comptroller Federal Grants and Cost Allocation Bureau for processing, at the email address provided CTRFedGrantAward@MassMail.State.MA.US Forms addressed to other Bureaus could affect processing time.

DEPARTMENT NAME:

Enter the name of the department submitting the form

Central Budget Structure

Enter the Appropriation Number assigned by ANF, a Payroll indicator of Yes or No, the amount of the Estimated Budgetary Receipts,(the amount of estimated cash flow from the grant during this state fiscal year including accounts payable) and the MMARS Document Identification Number for the Central Expense Document (BGCN)

Cost Accounting Structure

Enter the dollar amount of the entire Federal Grant Award. Note: If the entire award is modified (increased or decreased) enter the amount, the MMARS Document Identification Number for the Reimbursable Grant Budget Document (BGRG)

Major Program Table Set-Up

This sets up the cost accounting hierarchy with groups of activities (programs) all part of one structure. For example – a major program could be wastewater management – WASTE. All documents (contracts, encumbrances, payments will reference this code.) Enter the 6 (or fewer) character Major Program Code assigned by the department, the full Major Program Name, the Major Program Short Name must be the Appropriation number.

Program Table Set-Up

The Program is Set-Up on a new grant. Enter the 10 (or fewer) characters. All Federal Program codes must begin with the letter F. This is the second level of the cost accounting hierarchy. For new grants, create one program code per “award year”. Please note that an award year is the length of the grant. For example, if the award letter has an effective date of 10/1/14-9/30/17 only one program code is created. If a department receives additional funds under this grant for the same time period, the same program code is used. If the department receives an additional award notice extending the life of the grant beyond the original “Award Years”, with or without an increase in funds, a new program code is needed. If a subaccount changes, this code must change. The subaccount must be the subaccount in the award letter or the draw on the federal grant will fail. Enter your department’s DUNS number.

Program Period Program Start & End Date

Enter the Program Start & Program End Dates. Please note that end dates are “hard edited” by the system, thus please take into account the accounts payable period for grants when establishing this date. Multiple periods allow for easy periodic reporting aligned to federal reporting dates.

Funding Profile - Funding Line

This must be filled out properly – indicating the federal payment system to be used. If the wrong payment system is indicated, the draw on the federal grant will fail. Enter a check in or opposite the box appropriate for the Payment System Code

Funding Identification

Enter the 2 digit Federal Catalog Agency code and the 3 digit Federal Catalog Suffix code from your award letter or contact the appropriate agency. This must align to the grant award. The proper grant identification information is a federal reporting requirement.

Mandatory Requirements - Attachments

The Office of the Comptroller requires that the documents listed as Mandatory Requirements –Attachments be provided for approval to occur.

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Federal Award Identification Number (FAIN)

This identification number is provided by the federal funding agency who provided the grant. This information may be found on the grant award notice the federal funding agency provides your agency. In the past, has also been called the Federal Award Number.

Award Start Date This is the beginning date for the grant award and is found on the grant award notice sent from the federal funding agency.

Award End Date This is the end date for the grant award and is found on the grant award notice sent from the federal funding agency.

Federal Grant Name The federal grant name as identified by the federal funding agency as posted in the official grant opportunity announcement.

State Appropriation Name

The appropriation account name that appears in the MMARS.

FTEs required under this grant

If applicable, list the number of full-time employee that the federal funding agency requires for this grant as outlined in the either the grant opportunity notice itself or in the actual award contract. This should not be the number of FTEs the agency determines they need to hire. A number should only be entered if outlined in official documentation from the federal funding agency as a stipulation/requirement for receiving this grant funding.

Protected Fringe or Indirect Costs

This amount should be calculated based on the most current rates set by the comptroller.

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Sample of Notice of Federal Grant Award for a Continuing Grant

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From: Connolly, Scott (MRC) [mailto:scott.connolly@massmail.state.ma.us] Sent: Friday, October 25, 2013 11:58 AM To: Fedgrantaward (OSC) Cc: Perry, Robert M (MRC) Subject: Continuing Grant Set Up Form MRC F13DDS0511 Attached, please find the grant set up form increasing the award for MRC program code F13DDS0511 from $44,048,348 to $44,412,263.00, an increase of $363,915.00. A BGRG has been entered for $363,915.00 and the MMARS Doc ID is MRCF13DDS05110000016. Here is a breakdown of all of the obligation authorizations that we have received from SSA. This authorization has been in process by SSA but due to the federal shutdown was not received until today. All of the services these funds are for occurred prior to 9/30/2013.

FFY 2013 DDS Authorizations - 1304MADI00

BGCN/BGRG Revision # Funds Approved for

Fiscal Year Change (+/-) Dates Covered by Funding MRCF13DDS05110000001 $3,775,608.00 $0.00 10/1/2012 10/31/2012

MRCF13DDS05110000002 1 $12,124,976.00 $8,349,368.00 10/1/2012 12/31/2012

MRCF13DDS05110000003 2 $15,738,950.00 $3,613,974.00 10/1/2012 1/31/2013

MRCF13DDS05110000004 3 $18,720,100.00 $2,981,150.00 10/1/2012 2/28/2013

MRCF13DDS05110000005 4 $20,443,851.00 $1,723,751.00 10/1/2012 3/15/2013

MRCF13DDS05110000006 5 $22,382,511.00 $1,938,660.00 10/1/2012 3/27/2013

MRCF13DDS05110000007 6 $26,093,490.00 $3,710,979.00 10/1/2012 4/30/2013

MRCF13DDS05110000008 7 $25,681,565.00 ($411,925.00) 10/1/2012 4/24/2013

MRCF13DDS05110000009 8 $33,559,378.00 $7,877,813.00 10/1/2012 6/30/2013

MRCF13DDS05110000010 9 $37,922,346.00 $4,362,968.00 10/1/2012 7/31/2013

MRCF13DDS05110000011 10 $40,925,524.00 $3,003,178.00 10/1/2012 8/31/2013

MRCF13DDS05110000012 11 $43,733,244.00 $2,807,720.00 10/1/2012 9/30/2013

MRCF13DDS05110000013 12 $43,983,098.00 $249,854.00 10/1/2012 9/30/2013

MRCF13DDS05110000014 13 $43,998,348.00 $15,250.00 10/1/2012 9/30/2013

MRCF13DDS05110000015 14 $44,048,348.00 $50,000.00 10/1/2012 9/30/2013

MRCF13DDS05110000016 15 $44,412,263.00 $363,915.00 10/1/2012 9/30/2013

AGO CDI Unit ISA $178,000.00 ISAMRC13DDS511AGO13A

AGO Bader Investigation ISA $10,000.00 ISAMRCBADERMRCAGO13A

MRC Obligation Ceiling $44,224,263.00

If you have any questions please feel to contact me. Thanks, Scott Scott Connolly Director of Accounting Massachusetts Rehabilitation Commission 600 Washington Street Boston, MA 02111 617.204.3792 scott.connolly@state.ma.us

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BGRG – Grant Reimbursable Document

The information from the BGRG document is listed on the New Grant (Non ISA) Set-Up Form. It is recommended that the setup form be completed prior to entering the BGRG. The following job aid for the BGRG document is available at the Comptroller’s Intranet or by clicking this link Grants- Enter a Grants Budget Structure (BGRG) BGRG documents will reject until CTR sets up the required tables .

Grants - Enter a Grants Budget Structure (BGRG) – Sample for New Grant

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ACD Federal Payment Systems

Federal Payment Systems

• GRPR/PAPRS (L), U.S. Dept. of Justice

• OJP Homeland Security (Office of Justice Program)

. • SMARTLINK (S): Dept. of Health and Human Services

• ECHO (E): US Dept. of Transportation

• ASAP (Z): AGR and Other Small Federal Agencies

• G-5 (D): US Dept. of Education

This chart identifies the six federal payment systems used to draw money from the federal government and their associated federal departments. The initial in parenthesis represents what code the payment system is known as in MMARS (for example in the CMIATRK table) . The federal payment system for a new grant is identified when the grant is awarded. If the department has never received a federal grant from the awarding federal agency, it will be necessary to fill out the ACH, (Automated Clearing House), form for the specific new draw system the federal agency uses. The department should also let the Federal Grants Unit at CTR know this is being done for the first time with the federal agency. The form comes in as a part of the grant package from the federal agency. The following are the required steps to complete the form:

• The department will fill out the top portion of the form. Copy the form for your records. • Then the form is sent to the State Treasury. • TRE will send the form to the bank for signature. • The bank will sign the form and do one of two actions depending on federal agency

requirements: o The bank returns the form to TRE

TRE sends the form back to the department. The Department makes a copy of the form for their records, and then sends the

original to wherever it tells them to on the form. It will be the location of the federal agency they are doing business with.

o The bank sends the form directly to the federal agency The form is sent to the federal agency issuing the grant and the department will

not see it again.

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The federal agency links the account to the main Treasury account. No notice will be sent back to the department telling them that they are all set. The department will have to ask their federal contact. It takes approximately two weeks for the federal agency to set-up the banking information in their system. Although more than one agency may use the same form, each agency may have its own requirements pertaining to what you must send in with the form. Any questions regarding these forms should be directed to the federal contact. All federal grants deposits must be made to the main State TRE bank account, not a local sweep account. This information is taken from the ACH form. IT IS IMPERATIVE THAT BANKING INFORMATION IS ACCURATE OR THE GRANT WILL NOT BE REIMBURSED. IF THERE IS A CHANGE IN THE TRE BANK ACCOUNT, DEPARTMENTS MUST REACH OUT TO THE AWARDING AGENCY AND THE PAYMENT SYSTEMS TO GET THE APPROPRIATE FORMS TO FILL OUT. ONCE FORMS ARE RECEIVED, DEPARTMENTS MUST WORK WITH TRE TO COORDINATE THE BANKING CHANGE.

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Overview of How to Establish a Federally Funded ISA in MMARS It is common for departments to work together to provide services that are funded by a federal grant. The two departments enter into what is called an Interdepartmental Service Agreement, (ISA). The Buyer department, (also known as the Parent department), takes some of the money awarded in the grant and gives it to the Seller department, (also known as the Child department), to fund them for the service required. The paperwork is the responsibility of the Buyer/Parent department. The Interdepartmental Service Agreement is initiated by the Buyer/Parent, but also signed by the Seller/Child department. A second set of paperwork to establish the tables for the Seller/Child account is needed. It is the Buyer/Parent’s responsibility to complete the documents necessary to Set-Up the Seller/Child’s account. The appropriation number for the Seller/Child account is the same as for the Buyer/Parent. An ISA may run for only one fiscal year for multiple fiscal years. It is implemented in MMARS based on the state fiscal year. An ISA that is established for a single fiscal year will have any money remaining in the Seller/Child account at the end of the state fiscal year, returned back to the Buyer/Parent department. If the single fiscal year federally funded ISA grant has an opportunity to extend to another year, the ISA must be renegotiated for the new state fiscal year. This would apply to a single fiscal year federally funded ISA grant where the ISA was not initially written for multiple fiscal years. A Federally funded ISA commonly runs for multiple fiscal years. The ISA may be negotiated to be a multiple fiscal year contract. However, how it is implemented in MMARS is based on the state fiscal year. As a result, the funding transactions (BGCN or BGCS) can only be processed for the current state fiscal portion/amount of the ISA. These transactions would have to be processed annually to support each state fiscal year of the ISA. More detail will be supplied on this subject when the documents are covered later in this document.

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Establishing a Grant Referencing an Interdepartmental Service Agreement (ISA) in MMARS

MMARS Federally Funded ISA Process

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Explanation of Federally Funded ISA Flow Chart The Interdepartmental Service Agreement (ISA) process begins with the department establishing a Grant structure in MMARS for itself. The Buyer/Parent and Seller/Child departments reach an agreement of the business relationship between them. The Buyer/Parent is ready to establish the structure for the Seller/Child grant in MMARS. Step 1 the Buyer/Parent department prepares the Interdepartmental Service Agreement, (ISA) form and the Seller/Child department sign off on it. The Buyer/Parent completes the BGCN document for the Seller/Child department, establishing the Central Budget Structure. The Buyer/Parent completes the BGRG document to establish the Cost Accounting Structure for the Seller/Child department. At this point the Comptroller has not yet updated any of the required tables in MMARS. Both the BGCN and the BGRG documents will go to a Reject status and enter Workflow. The Buyer/Parent department forwards a hardcopy ISA Grant package to the Procurement Unit of the CTR. This package will include the ISA Grant Set-Up Form and the ISA Award Form. Step 2 The Procurement Unit reviews the contract and forwards a copy to the CTR Budgetary Unit including the Request for Setting Up a Federal Grant (ISA) form (Attachment C). The Budgetary Unit updates the Revenue Source Table and enters a BGRN document to link the BGCN document. The grant related tables are updated in MMARS for the Seller/Child and then the BGRG is processed to Final status. Step 3 The Procurement Unit processes the BGCN to final status. This completes the linking to the proper Revenue Source Code. CTR notifies the Buyer/Parent department that the table set-up is complete. Step 4 The Buyer/Parent department verifies that the table information is correct. Please note that at this time the Seller/Child department does not know the Revenue source code and cannot access the financial tables for the grant to view their budget without it. Step 5 The Buyer/Parent department notifies the Seller/Child department that the Central Budget Structure is established for them and reports all appropriate codes to the Seller/Child department. The Seller/Child department can view the Central Budget Structure and see the money in the Estimated Budgetary Receipts.

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Policy Review for ISAs MMARS Policy: Procurement/Contracts is Governed by 815 CMR 6.00 Purpose of 815 CMR 6.00. The purpose of 815 CMR 6.00 is to provide all State Departments with rules and procedures for conducting Interdepartmental Fiscal Business, including Interdepartmental Service Agreements (ISAs) and Interdepartmental Chargebacks which require a transfer of funds between two Departments. A copy of 815 CMR 6.00 can be found at: http://www.macomptroller.info/comptroller/docs/ctrinfo/comptroller-regulations/815/815-6-isas.doc ISA Form is the “Contract” that documents the voluntary business agreement between the Buyer and Seller and defines the ISA relationship between Buyer and Seller. It is between two or more state departments recognized in MMARS. The Buyer/Parent transfers funds to Child/Seller. The Child/Seller provides services, goods or programs requested by Buyer. It exists in cases where another state agency provides “better value” than outside vendor.

815 CMR 6.00 states that a “Seller dept. may not begin performance, or incur obligation prior to the execution of an ISA AND until ISA funding is in place”. A Seller who begins performance prior to funding, assumes the risk for all obligations. The effective date of an ISA shall be the latest of the following three dates:

(a) The date the Interdepartmental Service Agreement Form has been executed by an authorized signatory of the Buyer Department. (b) The date the Interdepartmental Service Agreement Form has been executed by an authorized signatory of the Seller Department. (c) A later effective date specified in the Interdepartmental Service Agreement

form. ISAs are executed for a duration that makes sense from a business perspective. Depts. must execute the ISA prior to start of performance. The Buyer must enter the termination date of ISA. Amendments to extend the date must be made prior to the termination date. The CFO for Buyer and Seller Depts. are responsible for oversight & management of ISAs, including monitoring & reconciling the federal grants. ISA Managers listed on an ISA must be authorized Department Head signatories with the appropriate MMARS Authorized Signatory Security role. Federally Funded ISAs Indirect Costs must be negotiated as part of ISA budget. Seller budget lines, that include compensation to regular employees, must plan for fringe benefit costs. Records Management of ISAs Buyer Dept. retains the “Record Copy” (originals) of ISA, amendments and transactions. Copies of ISAs, amendments and transactions are submitted to CTR for review and processing. The Buyer is responsible for archiving in 7 Years. The Seller dept. is required to maintain copies of ISA’s, amendments and transactions for the same 7 years period.

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Document Numbering Requirement for the ISA Form

A standard numbering convention has been put in place for establishing the document numbering for all documents pertaining to interdepartmental service agreements.

The Interdepartmental Service Agreement form and instructions for completion are displayed next. The Document ID Number instructions were changed beginning in Fiscal Year 2006. The following are the instructions for developing the 20-character Document ID Number for the ISA:

First 3 Characters = ISA Second 3 Characters = Buyer/Parent Department Alpha code Next 8 Characters = Buyer/Parent defined (Can be numeric, alpha or mixed) Next 3 Characters = Seller/Child Department Alpha code Next 2 Characters = Fiscal Year Last Character = A (for initial document or FY06 renewal), B (for next amendment) etc.

How to Complete the Request for Setting Up FG (ISA) Form

The form can be found on here:

http://www.macomptroller.info/comptroller/docs/forms/contracts/isaform05.doc

This is the form that must be submitted with the Grant Package.

The bulk of the information on the Request for Setting Up Federal Grants (ISA) Form will match the information on the original Buyer/Parent New Grant form. An amplified version of the Continuing Grant Set-Up Form is included as an aid in completing the form. The amplified version should not be sent in with the Grant Package. Information may also be taken from the completed BGRG document.

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Documents to Complete to Establish the Seller/Child Account in MMARS

Once the Buyer/Parent department and the Seller/Child department have reached an agreement regarding the service to be performed by the Seller/Child, (through the completion of the Interdepartmental Service Agreement form, it is time for the Buyer/Parent to establish the Seller/Child account in MMARS. This begins with completing MMARS documents. BGCN, Central Budget Structure – ANF entered the BGCN document for the Buyer/Parent department when the New Grant was established. The Buyer/Parent department will enter the BGCN for the Seller/Child. This Job Aid can be located in the Comptroller’s Intranet web site under this link: Processing an ISA for a Federal Grant (BGCN) BGRG - Grant Reimbursable Document (Cost Accounting Structure) – The Buyer/Parent department will enter the BGRG for the Seller/Child.This Job Aid can be located in the Comptroller’s web site under the following link: Enter A Grants Budget Structure for a Child Department (BGRG)

BGCN – Central Budget Structure Document - The BGCN Document establishes the budget for the Seller/Child department for this fiscal year of the Grant. Each New Grant has the BGCN entered by ANF. A Continuing Grant has a BGCN entered by the Department. A Seller/Child account in a Grant is entered by the Buyer/Parent department. A job Aid for the BGCN document is available at the Comptroller’s Home Page under the following link: Processing an ISA for a Federal Grant (BGCN)

Completing this form requires the department to enter table information onto the form that has not yet been established in MMARS. The document will go into a Pend status and enter Workflow. BGCN for Multi-Year ISAs BGCN documents can only be processed for the current Fiscal Year portion or amount of the ISA and then annually to support each state fiscal year of the ISA. Typically if the ISA crosses into the next fiscal year, the parent department is responsible for doing two things: • Entering a BGCN and submitting to CTR Procurement Unit for an amount that represents this

year’s portion of the supporting ISA • At the end of state accounts payable, enter another BGCN to carry into the new fiscal year of any

remaining (if any) uncommitted estimated receipts that is still in the seller/child budget from the previous fiscal year

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Interdepartmental Service Agreement (ISA) Documentation The next section is a copy of the ISA package, which includes the ISA form and all attachments.

INTRUCTIONS AND MMARS DOCUMENT ID: __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __

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COMMONWEALTH OF MASSACHUSETTS

INTERDEPARTMENTAL SERVICE AGREEMENT (ISA) FORM This Form is issued and published by the Office of the Comptroller (CTR) pursuant to 815 CMR 6.00 for use by all Commonwealth Departments. Departments may add non-conflicting additional terms, but changes to the official printed language of this Form shall be void. BUDGET FISCAL YEAR: RFR REFERENCE NUMBER ENTER RFR NUMBER: OR N/A.

MMARS ALPHA BUYER/PARENT DEPARTMENT CODE: MMARS ALPHA SELLER/CHILD DEPARTMENT CODE:

BUSINESS MAILING ADDRESS:

BUSINESS MAILING ADDRESS:

ISA MANAGER: ISA MANAGER: PHONE: FAX: PHONE: FAX: E-MAIL ADDRESS: E-MAIL ADDRESS:

Purpose of ISA: (Check one option only and complete applicable information) (Attachment A required for New ISAs and all ISA Amendments.) New ISA. Current Maximum Obligation for total duration of ISA $ (Use “N/A” for Non-Financial ISA.) (Complete

Attachment B) Amendment to Existing ISA. What is being amended? (Attachment C required for all Federal and Bond Account Amendments) ____ Amend Budget/Accounts. Change Maximum Obligation from: $ to New Maximum Obligation $

(Attachment B) ____ Amend Budget/Accounts. No Change in Maximum Obligation (Attachment B)

Amend Dates of Performance. New Dates of Service: Start Date: End Date: (Subject to execution dates below.) Amend Scope of Services/Performance

BRIEF DESCRIPTION OF PERFORMANCE GOALS TO BE ACCOMPLISHED BY ISA, OR IF AMENDMENT, IDENTIFY WHAT IS BEING AMENDED: WILL SELLER/CHILD DEPARTMENT STATE EMPLOYEES (AA OBJECT CLASS) BE FULLY OR PARTIALLY FUNDED UNDER THIS ISA? NO YES. IF YES, SELLER/CHILD CERTIFIES THAT THE ISA IS NOT BEING USED AS AN ALTERNATIVE FUNDING MECHANISM FOR STATE EMPLOYEES, THAT THE IDENTIFIED PERSONNEL IN ATTACHMENT A ARE NECESSARY FOR COMPLETION OF THE ISA DUE TO PARTICULAR EXPERTISE OR OTHER FACTORS THAT CAN NOT BE OBTAINED THROUGH THE USE OF CONTRACTORS, AND THAT IF FEDERAL FUNDS ARE BEING USED, FUNDS SHALL NOT BE USED TO SUPPLEMENT THE REGULAR SALARY OR COMPENSATION OF ANY OFFICER OR EMPLOYEE OF THE COMMONWEALTH FOR SERVICES PERFORMED DURING THEIR REGULAR WORKING HOURS. M.G.L. C. 29, § 6B. ACCOUNT INFORMATION. Complete for all new ISAs and Amendments (even if account information is not changing) Check one option, indicate “add”, “delete” or “no change” and enter account, fund, major program code and program code. BGCN – non-subsidiarized (federal, capital, trust). Attachment C required for any new ISA or ISA Amendment involving federal funds. BGCS – subsidiarized (budgetary) Other (CT, RPO as authorized by CTR): . Non-Financial ISA (no funds are transferred from Buyer/Parent to Seller/Child), however, resources are committed to ISA. Amendment with no Accounting Changes to Budget/Accounts or to Attachments B or C. (Indicate no change below and complete account information.) ADD DELETE NO CHANGE

Account: Fund: Major Program Code: Program Code:

ADD DELETE NO CHANGE

Account: Fund: Major Program Code: Program Code:

ADD DELETE NO CHANGE

Account: Fund: Major Program Code: Program Code:

ADD DELETE NO CHANGE

Account: Fund: Major Program Code: Program Code:

INTRUCTIONS AND MMARS DOCUMENT ID: __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __

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isa anticipated start date: , provided that the Seller/Child certifies that it will not incur any obligations related to this ISA prior to the date that this ISA is executed, NOR prior to the date that sufficient funding for the obligations for this ISA is available in the Seller/Child account for expenditure. termination date of this isa: This ISA shall terminate on unless terminated or properly amended in writing by the parties prior to this date. Buyer/Parent and Seller/Child department certifications. in witness wherof, by executing this ISA below, the Buyer/Parent and Seller/Child certify, under the pains and penalties of perjury, that Buyer/Parent and Seller/Child understand and agree that any Buyer/Parent or Seller/Child officer or employee who knowingly violates, authorizes or directs another officer or employee to violate any provision of state finance law relating to the incurring of liability or expenditure of public funds, includng this ISA, may be considered to be in violation of M.G.L. c. 29, § 66, and therefore the Buyer/Parent and the Seller/Child agree to ensure that this ISA complies with, and that all staff or contractors involved with ISA performance are provided with sufficient training and oversight to ensure compliance with 815 CMR 6.00, CTR applicable policies and the ISA Terms and Conditions which are incorporated by reference into this ISA, in addition to the performance requirements identified in Attachnent A of this ISA, and that all terms governing performance of this ISA are attached to this ISA or incorporated by reference herein, and the Buyer/Parent and Seller/Child agree to maintain the necessary level of communication (including immediate notification of any amendments to accounting information, program codes or performance needs), coordination, access to reports and other ISA information, and cooperation to ensure the timely execution and successful completion of the ISA, amendments, and state finance law compliance; and that the Buyer/Parent certifies it will ensure that sufficient funds are timely made available in the Seller/Child account(s), with the proper accounting codes, prior to the Seller/Child’s need to begin initial or amended performance; and that the Seller/Child will not allow initial or amended performance to begin until the ISA is executed AND the ISA Seller/Child account is sufficiently funded to support encumbrances and payments for performance (including payroll), and the Seller/Child will make encumbrances and payments (including payroll) only from the authorized ISA Seller/Child account(s) and shall not be entitled to transfer charges made from any other account not approved in writing by CTR in advance of expenditures by the Seller/Child. BUYER/PARENT DEPARTMENT’S AUTHORIZED SIGNATURE: DATE:

SELLER/CHILD DEPARTMENT’S AUTHORIZED SIGNATURE: DATE:

(Date must be handwritten by signatory at time of signature)

(Date must be handwritten by signatory at time of signature)

PRINT NAME: PRINT NAME: PRINT TITLE: PRINT TITLE:

INTERDEPARTMENTAL SERVICE AGREEMENT (ISA) FORM TERMS AND CONDITIONS

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The following terms and conditions are incorporated by reference into any ISA.

Role of the Office of the Comptroller. All ISA fiscal transactions shall be made through the state accounting system as prescribed by the Office of the Comptroller (CTR). CTR will interpret 815 CMR 6.00 and applicable policies and take any fiscal or other actions necessary to ensure ISA compliance with state finance law, including but not limited to correcting accounting transactions, resolving ISA disputes and identifying corrective action by the Buyer/Parent or Seller/Child Departments. Seller/Child Department Certifications. By executing an ISA the Seller/Child certifies that it is statutorily authorized to provide the type of performance sought by the Buyer/Parent, and shall at all times remain qualified to perform the ISA, that performance shall be timely and meet or exceed ISA standards, that the Seller/Child will not allow initial or amended performance to begin, may not authorize personnel or contractors to work, nor incur any obligation to be funded under an ISA prior to the execution of an ISA AND the availability of ISA funding in the Seller/Child account to support encumbrances and payments for performance. The Seller/Child will make encumbrances and payments (incuding payroll) only from the authorized ISA Seller/Child account(s) and shall not be entitled to transfer charges made from any other account not approved in writing in advance by CTR. The Seller/Child must immediately notify CTR whenever a delay in funding is anticipated for which performance is expected. The Seller/Child is authorized to use ISA funding only for the actual costs of ISA performance and may not use ISA funds to supplement non-ISA related personnel or expenditures. Buyer/Parent Department Certifications. Signature by the Buyer/Parent certifies that it is statutorily authorized or required to procure the type of performance required under this ISA, that the Buyer/Parent certifies it will ensure that sufficient funds are timely made available in the Seller/Child Seller/Child account(s), with the proper accounting codes, prior to the Seller/Child’s need to begin intial or amended performance; that the Buyer/Parent will monitor and reconcile ISA performance in compliance with state appropriation language or federal grant requirements, communicate all fiscal information necessary for the Set-Up of the Seller/Child account(s) including budget information, and if the ISA is funded with federal funds provide accurate accounting information in Attachment C, and immediately notify the Seller/Child of any changes in Attachment C (such as program codes) to ensure the ISA and Seller/Child account can be timely updated to avoid lapses in funding or the inability of the Seller/Child to make timely payroll and other expenditures from the Seller/Child account. Chief Fiscal Officer. The Chief Fiscal Officer (CFO) for the Buyer/Parent and Seller/Child will be responsible for the fiscal management of ISAs within their Departments in accordance with these ISA Terms and Conditions, 815 CMR 6.00 and policies and procedures published by CTR. ISA Manager. Both the Buyer/Parent and Seller/Childs are responsible for ensuring that the ISA Manager listed on the ISA, or ISA Amendment, is current and that the ISA Manager is an authorized signatory for the Department supported by the appropriate Security Profile. If the listed ISA Manager changes, the CFO shall be the ISA Manager until a replacement is identified in the same manner as other Written Notice. Record-keeping and Retention, Inspection of Records. The Buyer/Parent and Seller/Child shall maintain all ISA records in such detail as necessary to support claims for payment, including reimbursement or federal financial participation (FFP), for at least seven (7) years from the last payment under an ISA Seller/Child account, or such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit or other inquiry involving an ISA. In addition to any specific progress, programmatic or expenditure reports specified in Attachment A, the Seller/Child is required to provide the Buyer/Parent (and to CTR, the State Auditor and the House and Senate Ways and Means Committees upon request) with full cooperation and access to all ISA information. Payments and Compensation. The Seller/Child may accept compensation only for performance delivered and accepted by the Buyer/Parent in accordance with the specific terms and conditions of the ISA. All ISA payments are subject to appropriation pursuant to M.G.L. C. 29, or the availability of sufficient non-appropriated funds for the purposes of an ISA. Overpayments or disallowed expenditures shall be reimbursed by the Seller/Child or may be offset from future ISA payments in accordance with state finance law and instructions from CTR. ISA Termination or Suspension. An ISA shall terminate on the date specified, unless this date is properly amended prior to this date, or unless terminated or suspended under this Section upon prior written notice to the Seller/Child. The Buyer/Parent may terminate an ISA without cause and without penalty with at least thirty days prior written notice, or may terminate or suspend an ISA with reasonable notice if the Seller/Child breaches any material term or condition or fails to perform or fulfill any material obligation required by an ISA, or in the event of an elimination of an appropriation or availability of sufficient funds for the purposes of an ISA, or in the event of an unforeseen public emergency mandating immediate Buyer/Parent action. Upon immediate notification to the other party, neither the Buyer/Parent nor the Seller/Child shall be deemed to be in breach for failure or delay in performance due to Acts of God or other causes factually beyond their control and without their fault or negligence. Contractor failure to perform or price increases due to market fluctuations or product availability will not be deemed factually beyond the Seller/Child's control. Written Notice. Any notice shall be deemed delivered and received when submitted in writing in person or when delivered by any other appropriate method evidencing actual

receipt by the Buyer/Parent or the Seller/Child. Unless otherwise specified in the ISA, legal notice sent or received by the Buyer/Parent’s ISA Manager or the CFO (with confirmation of actual receipt) through the listed fax number(s) or E-Mail address for the ISA Manager will satisfy written notice under the ISA. Any written notice of termination or suspension delivered to the Seller/Child shall state the effective date and period of the notice, the reasons for the termination or suspension, if applicable, any alleged breach or failure to perform, a reasonable period to cure any alleged breach or failure to perform, if applicable, and any instructions or restrictions concerning allowable activities, costs or expenditures by the Seller/Child during the notice period. Confidentiality. The Seller/Child shall comply with M.G.L. C. 66A if the Seller/Child becomes a "holder" of "personal data". The Seller/Child shall also protect the physical security and restrict any access to personal or other Buyer/Parent data in the Seller/Child's possession, or used by the Seller/Child in the performance of an ISA, which shall include, but is not limited to the Buyer/Parent's public records, documents, files, software, equipment or systems. If the Seller/Child is provided access with any other data or information that triggers confidentiality requirements under FIPA, HIPPA or other federal or state laws, the Seller/Child shall be responsible for protection of this data as instructed by the Buyer/Parent. Assignment. The Seller/Child may not assign, delegate or transfer in whole or in part any ISA, or any liability, responsibility, obligation, duty or interest under an ISA, to another Department or an outside contractor. Assumption of an ISA by a successor Department due to a legislative change in the Seller/Child or Buyer/Parent’s department status shall be accomplished through the execution of a new ISA. Subcontracting By Seller/Child. Since it is presumed that contracting through the Seller/Child is more cost effective and a better value than the Buyer/Parent directly contracting with an outside contractor(s), any subcontract entered into by the Seller/Child for the purposes of fulfilling the obligations under an ISA must be approved by the Buyer/Parent in advance of the ISA and justified as part of the ISA Attachment A. The Seller/Child is responsible for full state finance law and procurement compliance for all subcontracts, and shall supply a copy of any subcontract to the Buyer/Parent upon request. Affirmative Action, Non-Discrimination in Hiring and Employment. In performing this ISA, the Seller/Child shall comply with all federal and state laws, rules, regulations and applicable internal state policies and agreements promoting fair employment practices or prohibiting employment discrimination and unfair labor practices and shall not discriminate in the hiring of any applicant for employment nor shall any qualified employee be demoted, discharged or otherwise subject to discrimination in the tenure, position, promotional opportunities, wages, benefits or terms and conditions of their employment because of race, color, national origin, ancestry, age, sex, religion, disability, handicap, sexual orientation or for exercising any rights afforded by law. The Seller/Child commits to, when possible, to purchasing supplies and services from certified minority or women-owned businesses, small businesses or businesses owned by socially or economically disadvantaged persons or persons with disabilities in accordance with the Commonwealth’s Affirmative Market Program. Waivers. Forbearance, indulgence or acceptance by the Seller/Child or Buyer/Parent of any breach or default in any form shall not be construed as a waiver and shall not limit enforcement remedies or allow a waiver of any subsequent default or breach. Risk of Loss. The Seller/Child shall bear the risk of loss for any materials, deliverables, personal or other data that is in the possession of the Seller/Child or used by the Seller/Child in the performance of an ISA until is accepted by the Buyer/Parent. Disputes. The Buyer/Parent and Seller/Child agree to take all necessary actions to resolve any dispute arising under the ISA within 30 calendar days including department head and secretariat involvement, but in no event shall a dispute remain unresolved beyond May 30th in any fiscal year, nor may the Buyer/Parent or Seller/Child allow a dispute to create a state finance law or other violation of ISA terms (such as a delay in funding, failure to timely communicate funding or program code changes, or failure to timely process ISA paperwork). Seller/Child and Buyer/Parent must immediately notify CTR to assist in resolution of the dispute and shall implement any actions required by CTR to resolve the dispute, which shall be considered final. Interpretation, Severability, Conflicts with Law, Integration. Any amendment or attachment to any ISA that contains conflicting language or has the affect of deleting, replacing or modifying any printed language of the ISA shall be interpreted as superseded by the ISA Form as published. If any ISA provision is superseded by state or federal law or regulation, in whole or in part, then both parties shall be relieved of all obligations under that provision to the extent necessary to comply with the superseding law, provided however, that the remaining provisions of the ISA, or portions thereof, shall be enforced to the fullest extent permitted by law. The terms of this ISA shall survive its termination for the purpose of resolving any claim, dispute or other action, or for effectuating any negotiated representations and warranties.

.

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ATTACHMENT A – TERMS OF PERFORMANCE AND JUSTIFICATIONS: This Attachment Form must be used. Insert (type or copy and paste) all relevant information using as many pages as necessary. Attach any additional supporting documentation as appropriate. If Amending the ISA, completion of Sections 1, 2 and 3 identifying what is being amended and the reasons for the amendments is required. For sections 4-9 enter only the amended language in the sections being amended.

1. [REQUIRED] Purpose and other performance goals of ISA, or as amended:

2. [REQUIRED] Identify in detail, the responsibilities of the parties, the scope of services and terms of performance under the ISA, or as amended:

3. [REQUIRED] Identify schedule of performance or completion dates or other benchmarks for performance, or as amended:

4. [REQUIRED] Justification that use of ISA is best value vs. contract with outside vendor:

5. Will Seller/Child department state employees (AA Object Class) be fully or partially funded under this ISA? No Yes. If Yes, justify necessity to use state employees for the ISA vs. use of contractors (contract employees or outside vendors).

6. Subcontractors. Since it is presumed that contracting through the Seller/Child is more cost effective and a better value than the Buyer/Parent directly contracting with an outside contractor(s), any subcontract entered into by the Seller/Child for the purposes of fulfilling the obligations under an ISA must be approved by the Buyer/Parent in advance of the ISA and justified as part of the ISA Attachment A, as follows: (enter “N/A” if subcontractors will not be funded with ISA funds)

7. Identify any equipment that will be leased or purchased by the Seller/Child using ISA funds: (The Buyer/Parent shall determine ownership of equipment purchased by the Seller/Child with ISA funds. Enter “N/A” if equipment not included in ISA.)

8. [REQUIRED] Identify the format and timing of ISA reports to the Buyer/Parent Department. Include the type of reports (e.g., progress or status, data, etc.), timing of reports (e.g., weekly, monthly, final) and the medium for submission of reports (e.g., e-mail, Excel spreadsheet, paper, telephone):

9. Additional ISA Terms: [Insert Terms here. Do not refer to separate attachment(s)]

INTERDEPARTMENTAL SERVICE AGREEMENT (ISA) FORM

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ATTACHMENT B - BUDGET

Check one: Initial ISA Budget ISA Budget/Account Amendment. Maximum Obligation of ISA before this Amendment: $ . PRIOR MMARS DOCUMENT ID: (for reference - if applicable) CURRENT DOC ID: ISA .

[See Instructions for Additional Guidance on completion. Insert as many additional lines as necessary.] A B C D E F G H I Budget Fiscal Year

Seller/Child Account

Object Class

Description Initial ISA Amount / or Amount Prior to Amendment

Indicate Add or Reduce +/-

Amendment Amount

Enter “YES” if Amount is a prior FY budget reduction or a current FY “Carry-in” authorization for Federal ISA Funds

New Amount After Amendment

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

FISCAL YEAR SUBTOTALS AND TOTAL MAXIMUM OBLIGATION FOR DURATION OF ISA FISCAL YEAR: ___________ SUBTOTAL (or New Subtotal if Fiscal Year Subtotal being amended $

FISCAL YEAR: ___________ SUBTOTAL (or New Subtotal if Fiscal Year Subtotal being amended $

FISCAL YEAR: ___________ SUBTOTAL (or New Subtotal if Fiscal Year Subtotal being amended $

FISCAL YEAR: ___________ SUBTOTAL (or New Subtotal if Fiscal Year Subtotal being amended $

TOTAL MAXIMUM OBGLIGATON FOR DURATION OF ISA (or New Total Maximum Obligation if amended) $

INTERDEPARTMENTAL SERVICE AGREEMENT (ISA) FORM

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Additional Budget Specifications:

ATTACHMENT C – FEDERAL GRANT SELLER/CHILD ACCOUNT [Complete ONLY if Buyer/Parent Account is a Federal Grant Account. Seller/Child Department must signoff in order to process document.]

New ISA ISA AMENDMENT BUDGET FISCAL YEAR: BUYER/PARENT DEPARTMENT: SELLER/CHILD DEPARTMENT:

CTR ONLY - Revenue Bureau will Assign

Revenue Budget Revenue Source BUYER/PARENT DEPARTMENT MUST COMPLETE ALL ITEMS BELOW

Central Budget Structure (BGCN - BQ89) Appropriation Number: Payroll Indicator : Yes No Budgetary Estimated Receipts $ BGCN Document Identification No.:

Cost Accounting Structure (BGRG- BQ88) Total Maximum Obligation of ISA: $ BGRG Document Identification No.:

Major Program Table Set-Up Major Program (6 chars. or less): Major Program Short Name (same as appropriation number): Major Program Name:

Program Period Table Set-Up OR Extended Program Period Effective From Date: Effective To Date: Program Period: Program Period Name: Program Period Short Name:

Program Table Set-Up Effective From Date: Effective To Date: Program Name: Program Short Name: Program Code: (MUST START WITH “F” followed by up to 9 characters) F Sub Account:

Funding Profile - Funding Line Draw Name: Customer ID Payment System Code – Check one option only EDCAPS: VC7000000001 D ECHO: VC7000000002 E LOCES: VC7000000003 L SMARTLINK: VC7000000004 S ASAP- OTHER: VC7000000005 Y ASAP: VC7000000006 Z GRANT- NON DRAW: VC7000000007 No Code

Funding Identification Federal Catalog Agency: (2 digit code) Federal Catalog Suffix: (3 digit code) Letter of Credit No.:

Authorized Signatory Seller/Child Department: Date: Name

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The Interdepartmental Service Agreement (ISA) Form is issued by the Office of the Comptroller (CTR) pursuant to 815 CMR 6.00 for use by all Commonwealth Departments. The ISA Instructions are provided to assist both Buyer/Parent and Seller/Child Commonwealth Departments with the interpretation and completion of the ISA Form and are incorporated by reference into the ISA. The ISA Form is the “Contract” that documents the business agreement (joint venture) between two Commonwealth departments within the Executive, Judicial and Legislative Branches of government. A Department must be recognized as a Department in the State Accounting System (hereinafter referred to as “MMARS”) in order to transfer or receive funding under an ISA. The ISA must comply with funding language in any appropriation act funding the ISA, as well as all applicable general and special state or federal laws, regulations. The Buyer/Parent and Seller/Child are responsible for reviewing and complying with the applicable CTR policies (including but not limited to the ISA, electronic signature and state finance law policies) located at the CTR website under Procurement and Contracts and also at the CTR Website at: Comptroller Policies. While reasonable efforts have been made to assure the accuracy of the legal requirements for ISAs, Departments should consult with their legal counsel to ensure compliance with all legal requirements related to their performance under an ISA. PLEASE NOTE THAT NOT ALL APPLICABLE LAWS HAVE BEEN CITED IN THIS DOCUMENT. INSTRUCTIONS AND HYPERLINKS MAY BE ADDED OR CHANGED WITHOUT NOTICE, SO CHECK THIS DOCUMENT PERIODICALLY FOR UPDATES.

MMARS DOCUMENT ID: Enter the state accounting system (MMARS) BGCN or BGCS or other authorized MMARS document number associated with this ISA. ISA related DOC ID Numbering must be done as described below. The Doc ID must be the Doc ID entered into MMARS and reflected on the supporting ISA paperwork. All ISA Doc IDs MUST START WITH “ISA”, as follows:

EXAMPLE DOC ID Number: ISAEPS12345678SDF06A

First 3 Characters

Second 3 Characters

Next 8 Characters Next 3 Characters Next 2 Characters*

Last Character

ISA Buyer/Parent Department Alpha

Buyer/Parent defined. May be numeric, alpha or combination

Seller/Child Department Alpha

Fiscal Year A (initial document ) B (1st Amendment) C (2nd Amendment)

ISA EPS 12345678 SDF 06 A

BUDGET FISCAL YEAR. Enter the Budget Fiscal Year of the ISA or ISA Amendment, as appropriate. REQUEST FOR RESPONSE REFERENCE NUMBER. If the Seller/Child responded to an RFR that was posted on Comm-PASS, enter the RFR

Reference Number as posted. If an RFR was not used, indicate "N/A". Seller/Child Departments may respond to a Request for Response (RFR) or other solicitation of a Buyer/Parent Department. If the Seller/Child Department is selected as a contractor, the ISA Form must be used as the “contract” (instead of the applicable Commonwealth Terms and Conditions and Standard Contract Form and Instructions).

BUYER/PARENT/SELLER/CHILD DEPARTMENT NAME: Enter the 3 Alpha MMARS Department Code. For Example “CTR” for the Office of the Comptroller.

BUSINESS MAILING ADDRESS: Enter the address where all correspondence to the ISA Manager must be sent. Unless otherwise specified in the ISA, legal notice sent or received by the Department’s ISA Manager (with confirmation of actual receipt) through the listed fax number(s) or electronic mail address for the ISA Manager will meet any requirements for written notice under the ISA.

ISA MANAGER: Identify the authorized ISA Manager who will be responsible for managing the ISA. ISA Managers must be Department Head Authorized Signatories in order to execute the ISA and otherwise obligate the Department with the appropriate MMARS Security to support Department Head Signature Authorization.

PHONE/FAX/E-MAIL ADDRESS: Identify the phone, fax number(s) and electronic mail (e-mail) address of the ISA Manager. PURPOSE OF ISA. Check off whether this is a new ISA or an ISA Amendment. For New ISAs, enter the total Maximum obligation for the

duration of the ISA. If an ISA Amendment, check off any of the Amendments that are being made and complete any information in the blanks provided and the Attachments that are identified.

BRIEF DESCRIPTION OF PERFORMANCE GOALS TO BE ACCOMPLISHED BY THIS ISA, OR IF AMENDMENT, IDENTIFY WHAT IS BEING AMENDED: Identify a brief description of the ISA, ISA name and performance to be accomplished under the ISA. If an ISA Amendment, identify what is being amended. Merely stating “see attached” or referencing attachments without a narrative description of performance is insufficient and will result in ISA or Amendment being returned to MMARS Liaison of Buyer/Parent Department. The description is used to specifically identify the ISA performance, match the ISA with attachments and determine if the appropriate process has been selected.

INDICATE WHETHER SELLER/CHILD DEPARTMENT STATE EMPLOYEES (AA OBJECT CLASS) WILL BE FULLY OR PARTIALLY FUNDED UNDER THIS ISA. Justification for use of state employees and details of who will be working and work that will be performed must be included as part of ATTACHMENT A.

ACCOUNT INFORMATION. Check the correct option for either a BGCN – non-subsidiarized (federal, capital, trust); BGCS – subsidiarized (budgetary); Other

(CT, RPO or other document authorized by CTR); Non-Financial ISA (no funds are transferred from Buyer/Parent to Seller/Child with resources committed to ISA; or Amendment without Budget changes to ISA (used only for an Amendment if there are no changes to the budget and no changes to Attachments B and C (if applicable).

Identify for each account under the ISA whether the account is “added”, “deleted or “no change”. THIS SECTION MUST BE COMPLETED FOR AMENDMENTS EVEN IF THE ACCOUNT INFORMATION HAS NOT CHANGED. Enter each ISA account, fund, major program code and program code for all funding under the ISA. Attachment B must be completed for all financial ISAs and ISA Amendments (with Budgetary or Account amendments). Attachment C must be completed for any financial ISAs or ISA Amendments with Budgetary or Account amendments involving federal or capital funds).

ISA ANTICIPATED START DATE. Enter the anticipated start date, provided that the Seller/Child certifies that it will not incur any obligations related to this ISA prior to the date that this ISA is executed, NOR prior to the date that sufficient funding for the obligations under this ISA available in the Seller/Child account for expenditure.

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Note - ISA Duration. ISAs can be executed for the duration that makes sense from a business perspective. Multi-Year ISAs are encouraged if it best supports the Buyer/Parent and Seller/Child business processes. Similar to other types of contracts, all ISAs are subject to appropriation or other available funding. Therefore, Departments can enter into a Multi-year ISA even if funding transactions have to be processed annually to support each fiscal year of the ISA. Buyer/Parent and Seller/Child Departments are responsible for ensuring that the funding is in place in the authorized Seller/Child account(s) to ensure that the Seller/Child Department can timely encumber funds and pay employees, contractors, grantees, etc. from the authorized ISA Seller/Child account(s) in accordance with the ISA Terms and Conditions. TERMINATION DATE OF THIS ISA: The Buyer/Parent Department must enter the date the ISA will terminate. An ISA must be signed for the

full duration and amount in accordance with what is negotiated between the Buyer/Parent and Seller/Child Department. Amendments to extend the termination date, such as renewals, must be made using the ISA Form and must be signed by authorized Department Head signatories (with appropriate MMARS Authorized Signatory Security roles) of both the Buyer/Parent and the Seller/Child Department contemporaneously with the need for the amendment but no later than the termination date (or as previously amended) in accordance with 815 CMR 6.00.

AUTHORIZING SIGNATURE FOR BUYER/PARENT DEPARTMENT/DATE: The Authorized Buyer/Parent Department Signatory must, in their own handwriting, and in ink, sign AND enter the date the ISA is signed. THE DATE IS AN INEXTRICABLE PART OF THE SIGNATURE AND MUST BE COMPLETED BY THE SIGNATORY AND MAY NOT BE PRE-FILLED OR ENTERED AFTER THE SIGNATURE BY ANOTHER PERSON. Rubber stamps, typed or other images are not acceptable. See CTR policies on Electronic Signature and Department Head Signature Authorization for Department Head and Authorized Signatory certifications and responsibilities.

NAME /TITLE: The Buyer/Parent and Seller/Child Department Authorized Signatory’s name and title must appear legibly.

NOTE: SECRETARIAT SIGNOFF IS NOT REQUIRED IN ORDER FOR CTR TO PROCESS AN ISA. HOWEVER, SELLER/CHILD AND BUYER/PARENT DEPARTMENTS ARE REQUIRED TO FOLLOW ANY INTERNAL SECRETARIAT PROCEDURES WHEN OBTAINING AUTHORIZATION FOR AN ISA (OR FOR CERTAIN ISA TRANSACTIONS SUCH AS AN INTER-SUBSIDIARY TRANSFER “TS”) PRIOR TO SUBMISSION TO CTR. ALL ISAS ARE PERIODICALLY REVIEWED BY CTR TO VERIFY THAT THE SIGNATORIES ARE AUTHORIZED BY THEIR DEPARTMENT HEAD TO EXECUTE CONTRACTS. DEPARTMENTS ARE RESPONSIBLE FOR TIMELY PROCESSING THROUGH SECRETARIATS TO ENSURE TIMELY FUNDING AS REQUIRED UNDER THE DEPARTMENT HEAD CERTIFICATIONS.

ATTACHMENT A – TERMS OF PERFORMANCE AND JUSTIFICATIONS. Attachment A is required for all new ISAs and for all ISA Amendments. Departments must use this attachment and insert (type, or copy and paste) the required information in addition to other terms of performance negotiated by the parties under Section 9. Sections 1-8 are mandatory and must be answered in detail or the ISA will be returned to the Buyer/Parent Department MMARS Liaison. All information must be inserted into Attachment A using as many pages as necessary. If Amending the ISA, completion of Sections 1, 2 and 3 identifying what is being amended and the reasons for the amendments is required. For sections 4-9 enter only the amended language in the sections being amended.

ATTACHMENT B - ANTICIPATED BUDGET. Attachment B is required for all New ISAs and for all ISA Amendments with budget and accounting transactions. Departments must use this form. Insert all required information and use as many additional lines and pages as necessary. This attachment must breakdown the specifics of the ISA funding, by fiscal year, Seller/Child account, object class, description and amount. For multi-year ISAs the Attachment must provide a subtotal each fiscal year of the ISA (which equals each fiscal year’s anticipated maximum obligation). All ISAs must provide a total maximum obligation for the total duration of the ISA (which must equal the total of all fiscal year subtotals) and must match the “Total Maximum Obligation for Duration of ISA” on the executed ISA. Check “Initial ISA Budget” , or “ISA Amendment” Identify the MMARS Doc ID if the ISA is being amended. Complete Columns A-E For New ISAs. Complete Columns A-I for Amendments.

Column “A” (Budget Fiscal Year). Enter the fiscal year of the funding, or amendment. For Multi year ISAs Column A must list planned expenditures by each fiscal year of the ISA.

Column “B” (Seller/Child Account). Enter the number of each Seller/Child account listed on the ISA Form. For ISAs using multiple Seller/Child Accounts, Column B must list planned expenditures for each Seller/Child account.

Column “C” (Object Class). Enter the Object Class (subsidiary) as outlined in the CTR Expenditure Classification Handbook (for example, “AA” for Employee compensation, “EE” for Administrative Expenses, “HH” for Consultant Contracts, etc.). IF the line item is authorized for multiple fiscal years, enter a separate line-item for each fiscal year of the ISA in which the line-item is authorized, specifying the estimated amount of the authorized expenditure. Line-items break downs of estimated expenditures by Object Class are required even if the Buyer/Parent account is non-subsidiarized, since the Budget acts as the authorization for the ISA expenditures. For subsequent fiscal years, entering “Balance Forward Amount” for federal, bond and trust accounts is insufficient, since good project management practices presume that departments will be managing estimated expenditures over the life of a project with planned fiscal year obligations, rather than managing projects solely based upon remaining uncommitted estimated receipts or uncommitted balances.

Column “D” (Description). Enter a brief description of the type of authorized budget expenditure or category, (e.g., “Conference Materials”, “Program Manager”, “Health Evaluations” etc.)

Column “E” (Initial ISA Amount/or Amount Prior to Amendment). Enter the amount for the budget item authorized under the ISA for each fiscal year. If the ISA is being amended, enter the current amount for this line-item, prior to the amendment. The Amendment amount will be entered in Column G and the new total will be entered in Column I.

Column “F” (+/-) is only used if the ISA is being amended to add or reduce a budget line item. Enter “+” for budget addition or “-” for a budget reduction.

Column “G” Amendment Amount is only used if the ISA is being amended to add or reduce a budget line item. Enter the amount of the budget line being increased or decreased.

Column “H” (Carry-In) is only used if the ISA is being amended to reduce a prior year federal grants fund line item with uncommitted estimated receipts that are being re-authorized in the current or a future fiscal year. Enter “YES” in this column for each line item being amended (by object class and description) to reflect a reduction in the budget in a prior fiscal year line item, and for each line item being added (by object class and description) to reflect a reauthorization of the funds in the current or a future fiscal year.

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Column “I” New Amount After Amendment is only used if the ISA is being amended to add or reduce a budget line item. Enter new ISA Amount after the adding or reduction of the line-item amount referenced in Column G.

FISCAL YEAR SUBTOTALS AND TOTAL MAXIMUM OBLIGATION. • Fiscal Year Subtotals. For single fiscal year ISAs enter the fiscal year (e.g., “Fiscal Year 2007”) and enter the subtotal of

all “Current Amounts” (Column E) for that fiscal year. For Multi-year ISAs, enter each fiscal year of the ISA as a separate subtotal and enter the subtotal of all “Current Amounts” for each fiscal year.

• Total Maximum Obligation for Duration of ISA. Enter the Total Maximum Obligation for the Duration ISA for all fiscal years (as identified on the executed ISA Form). For single fiscal year ISAs, this amount should be the same as the Fiscal Year Subtotal. For Multi-fiscal year ISAs, this amount should equal the total of all the listed fiscal year subtotals.

ATTACHMENT C – FEDERAL GRANT SELLER/CHILD ACCOUNT (complete only if Buyer/Parent Account is a Federal Account). Please enter the following information on this form. Enter whether this is a “New” ISA or an ISA Amendment and enter the Budget fiscal year. Enter the Buyer/Parent and Seller/Child Departments, which must match the ISA. Skip the Revenue Budget and Revenue Source which will be completed by CTR. CENTRAL BUDGET STRUCTURE:

Appropriation Number. Enter the Appropriation Number assigned by ANF. Payroll Indicator. Enter a Payroll indicator of Yes or No. Estimated Budgetary Receipts. Enter the amount of the Estimated Budgetary Receipts (the amount estimated in the ISA or

Amendment for the current state fiscal year). BGCN Document Identification No. Enter the MMARS Document Identification Number for the Central Expense Document

(BGCN). The BGCN must be entered and submitted to PEND in MMARS. Providing a screen print of the BGCN aids CTR in the processing of the ISA and Set-Up of the accounts or account changes.

COST ACCOUNTING STRUCTURE. Total Maximum Obligation of ISA or ISA Amendment Amount. For New ISAs, enter the Total Maximum Obligation of the ISA

for the full duration of the ISA. For ISA Amendments, enter the amount of the modification. BGRG Document Identification No. Enter the MMARS Document Identification Number for the Reimbursable Grant Budget

Document (BGRG). The BGRG must be entered and submitted to PEND in MMARS. Providing a screen print of the BGRG aids CTR in the processing of the ISA and Set-Up of the accounts or account changes.

MAJOR PROGRAM TABLE SET-UP. This sets up the cost accounting hierarchy with groups of activities (programs) all part of one structure. For example – a major program could be wastewater management – WASTE. All documents (contracts, encumbrances, payments will reference this code.) All documents (contracts, encumbrances, payments will reference this code.) Major Program. Enter the 6 (or fewer) character Major Program Code assigned by the department. Major Program Name. Enter the full Major Program Name. Major Program Short Name. Enter the Major Program Short Name.

PROGRAM PERIOD TABLE SET-UP OR EXTENDED PROGRAM PERIOD (EPP). Enter the Program Period or Extended Program Period (EPP) information. This establishes the effective period of the grant. Please note that end dates are “hard edited” by the system, thus please take into account the accounts payable period for grants when establishing this date. Multiple periods allow for easy periodic reporting aligned to federal reporting dates. However, a Buyer/Parent department may choose to use 1 reporting period – EPP – that encompasses all dates. The downside of this method is that specific periodic federal reporting by the system is not achieved. Enter the Program Effective From Date and Effective to Date. Enter the Program Period or Extended Program Period (EPP) information. Enter the Program Period Name, and Program Period Short Name.

PROGRAM TABLE SET-UP. Enter Program Name. Enter Program Short Name: Program Code. Enter the 10 (or fewer) characters. All Federal Program codes must begin with the letter F. This is the second

level of the cost accounting hierarchy. A Program covers a range of years within a Major Program. If the department receives an additional award notice extending the life of the grant beyond the original “Award Years”, with or without an increase in funds, a new program code is needed. All documents (contracts, encumbrances, payments) will reference this code. If a subaccount changes, this code must change. The Program Short Name must reference the appropriation account. The subaccount must be the subaccount in the award letter or the draw on the federal grant will fail. Enter your department’s DUNS number.

The sub account must be the sub account in the award letter or the draw on the federal grant will fail. If a sub-account changes, this code must change.

FUNDING PROFILE - Funding Line. This must be filled out properly – indicating the federal payment system to be used. If the wrong payment system is indicated, the draws on the federal grant will fail. Enter a check next to appropriate Payment System Code.

FUNDING IDENTIFICATION. Federal Catalog Agency Code. Enter the 2 digit Federal Catalog Agency code. Federal Catalog Suffix. Enter the 3 digit Federal Catalog Suffix code from your award letter or contact the appropriate agency.

This must align to the grant award. The proper grant identification information is a federal reporting requirement. Letter of Credit No. Enter the Letter of Credit No. for this grant award.

COMPLETED ISAS SHOULD BE SUBMITTED FOR PROCESSING TO: Office of the Comptroller, One Ashburton Place – 9th Floor, Attention: Accounts Payable Bureau, Contracts, Boston, MA 02108 CTR Helpline: 617-973-2468

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Federal Grant Relevant Tables

• Appropriation (APPR) • Valid Program/Appropriation (VPA) • Central Expense (BQ89) • Revenue Source Code (RSRC) • Revenue Budget (BQ82) • Reimbursable Grant Budget (BQ88) • Major Program (MJPRG) • Program (PROG) • Funding Profile/Funding Line (FPRFLST) • Grant Funding Profile Inference (GFPI) • CMIA Tracking Table (CMIATRK)

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Appropriation Table, (APPR)

The Appropriation table is established by ANF. The budget analysts at ANF work with departments to come up with an appropriation number for a new federal grant. For Federal Grants, the Major Program is equivalent to the appropriation Set-Up by ANF to represent this grant. The Major Program number will be different. Appropriation Unit (Appr Unit): Appropriation Unit is the 8 digit Appropriation number. The Appropriation Account Number is assigned by budget analysts at ANF. Name: This is the appropriation name. The Major Program Name will be the same as the Appropriation Name and a search can be conducted by Name. Appropriation Type (Appr Type): All Federal Grants are Appropriation Type 4FN. Appropriation Group (Appr Group): In this scenario, Appropriation Group displays “ACD”. ACD is the acronym for Automated Central Draw. The alternative would be NCD for Non Central Draw. If the field is empty, you should contact your budget analyst at ANF to have it populated. Active: A valid appropriation must be active. The Active check box should contain a check mark. Budgeting: A valid appropriation should have a check mark in the Budgeting field. Payroll: If payroll expenses are to be charged to this federal grant (appropriation), the Payroll box must be checked. If payroll needs to be charged but you do not see a checkmark in the payroll box, contact ANF to make the change.

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Valid Program/Appropriation Table, (VPA)

Valid Program/Appropriation Table links together the program and appropriation for each document code. This prevents documents from being submitted without a valid combination.

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Central Expense Level 2, (BQ89LV2)

The Central Expense (BQ89LV2) Table tracks central expense activity for a specific fiscal year. The BGCN, for a new grant, is created by ANF. This establishes BQ89 for the current fiscal year. Departments enter the BGCN for a continuing grant. The Procurement Unit at OSC enters the BGCN for ISA grants. Obligation Ceiling and Expenditure Ceiling: increase as the federal funds drawn are received and posted from a successful draw. Obligation ceiling and the expenditure ceiling figures will always contain a matching figure. It equals (Collected Earned Linked Revenue + Beginning Balance - Balance Forward). Beginning Balance: represents the Balance Forward documents processed by CTR. A drill down feature from the Beginning Balance field displays the individual BF documents. Uncommitted and Unexpended: fields are often in the negative until the draw occurs. Ideally, at year end these fields should be zero.

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Uncommitted Estimated Receipts: represents the difference between the Budgetary Estimated Receipts and the total of the Pre-Encumbered, Encumbered and Total Expenses amounts. Since the Cost Allocation documents, (CAs), are not encumbered, the amount will not accurately reflect the total dollars needed to cover those expenses. Budgetary Estimated Receipts: based on the department’s spending plan, or the amount in the GAA. It is not affected by encumbrance/expenditure activity, or the draw. Budgetary Estimated receipts do NOT update any ceiling. This figure is made up of the BGCN documents for the current fiscal year amount listed in the GAA, plus any grants given since. A drill down feature displays a list of each BGCN document. Tip: Conducting a Search in BQ89, by Appropriation only, with no department listed, will display all departments using the appropriation. If a parent/child relationship exists, all child departments under the appropriation selected will display. To find the Parent, use the appropriation in the Appropriation Table, (APPR). Only the parent department will be displayed.

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Central Expense Level 2, (BQ89LV2), Cont’d.

Linked Collected Earned Revenue: collected earned revenue should equal the obligation and expenditure ceilings at the end of the grant period or fiscal year. When the Federal Grants Unit at the Comptroller’s Office created the BGRN document, the Collected Earned Revenue figure was entered on the BQ82 table to establish the revenue budget. The BGRN also established the Revenue Source Code, which was entered on both the BQ82 table and on the Revenue Source Code table, (RSRC). The Revenue Source Code table created a link between the Central Expense Table, (BQ89), and the Revenue Budget Table, (BQ82). Click on the Linked Revenue link to locate the key to the Revenue Budget.

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Linked Revenues

Revenue Budget Key 2012/0100/0000/EEC/1921 FY/Fund/Sub Fund/Dept/Revenue Source Code This is the current FY link from Central Expense (BQ89) to Revenue Budget (BQ82)

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Revenue Source Code, (RSRC)

This table shows us that for Fiscal Year 2012, Revenue Source code 1921 is Active and Budgeting. Notice the External Reporting Number field. This is the CFDA number.

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Revenue Budget, (BQ82LV3)

The BGRN entered by the Federal Grant Unit establishes BQ82 (Revenue Budget) and Revenue Source Code. RSRC table is also updated. The Central Revenue (BQ82LV3) Table contains Billed Earned and Collected Earned Revenue information and is searched by entering BFY, Fund, Department, and Revenue Source Code. Revenue Source Code appears on BQ82, RSRC and also on the Funding Line of the Funding Profile table. It is displayed on the Linked Revenue – Expense Budget Key. Both the Billed Earned Revenue and Collected Earned Revenue fields are populated from documents processed in MMARS. The Billed Earned Revenue amount for Automated Central Draw, is calculated by the net value of Receivables, (REs). It is the amount to be drawn.

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The amount in the Collected Earned Revenue field, which is the sum of the Cash Receipts, (CRs), is the amount that updates the Obligation Ceiling and Expenditure Ceiling fields in the Central Expense Budget inquiry tables (BQ89). It is the amount that has been drawn. The Total Revenue field is the sum of Billed Earned Revenue and Collected Earned Revenue.

Collected Earned Revenue Drill Down Result from BQ82

The previous screen shot displayed the BQ82LV3 for EEC with revenue source code 1921, which is the program for Child Abuse Prevention. From that screen, you can reach this information by utilizing the drill down functionality on the Collected Earned Revenue field. The first line represents the funds drawn based on Expenditures for the week ending 9/013/2013. The date is displayed in the Document Id.

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Reimbursable Grant Budget, (BQ88LV2)

BGRG, entered by departments, establishes BQ88, Program Budget. BQ88LV2 tracks all Grant activity for the LIFE of the grant. Note that there is no fiscal year or budget fiscal year on this table. The Expense Actuals sub-section stores current running balance information including:

Accrued Expenses: Expended funds that have not yet been warranted. Cash Expenses: Expended funds that have been disbursed. Total Expenses: The sum of Advances, Accrued and Cash Expenses.

Obligation Ceiling and the Expenditure Ceiling: Represents the total award amount for the life of the grant, not just a single fiscal year. The figures will match in these two fields. This amount is updated by the Award. Uncommitted: Balance of funds not yet encumbered. Budget constraints prevent spending in excess of remaining available funds. Unexpended: Balance of funds that have not yet been spent. The amounts in these fields will decrease over the life of the grant. Revenue Actuals: provides information on the billed and collected revenue associated with the Grant. Billed Earned Revenue: contains the net of the Receivable (RE) Documents, which represents draws in process but not yet received. Collected Earned Revenue: sum of all Cash Receipt (CR) Documents, the amount that has been drawn and received.

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Total Revenue: sum of billed earned revenue and collected earned Revenue. Total Expenditures on level 1 should equal total expenditures on level 2 line from the corresponding BQ89 Billed Earned Revenue and Collected Earned Revenue on BQ88 should reflect the same amounts on BQ82 Total Revenue Collected should be equal to Cash Expenditures.

Reimbursable Grant Budget, (BQ88LV2), Cont’d.

Awarded: total amount of award/grant listed on award letter and entered on the BGRG. It updates both the obligation and expenditure ceilings in BQ88. The Major Program, Program, and Parent Department, when appropriate, are displayed in the General Information sub-section. Also displayed are the Start and End dates of the grant. In the event that a grant is extended beyond the original “Award Years”, with or without an increase in funds, a new Program Code is established within the Major Progam.

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Major Program, (MJPRG)

If you didn’t know the major program name, you would do a wild card search in the Name field using appropriation name. Major Program: Major Program is the highest level of the Federal Grants hierarchy. The Major Program Code defines the grant at the department level. It is the code by which you must search to find your Grant Budget, Program Code, Program Period and Funding Line. Name: name or official “Title” of the grant from the award letter. Short Name: usually the 8-digit appropriation for the Short Name. Active and Budgeting: These boxes should always be checked. Internal Vendor: is populated with the VC number of the federal grant awarding agency for American Recovery & Reinvestment Act (ARRA) grants only.

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Program Setup, (PROG)

Program: an important data point as it is a required field in the Detail Accounting section of any payment document or payroll expense referencing a federal grant. Other Federal Grant elements, such as Major Program and Program Period, are inferred from the Program Code. The Program Code MUST begin with the letter “F” (to designate “Federal”). The Program Code can be any combination of characters that make sense to you. The maximum number of characters cannot exceed ten. Sub Account: is listed on the award Letter and is only displayed on the Program table. The subaccount may change if the grant award is amended or renewed. The draw will reject if the sub account is invalid, inactive, or not listed on PROG. Since the sub-account is directly linked to the program, the program code must be changed when the sub account changes. Effective From and Effective To: The beginning and ending dates of the Program. These dates represent the life of the program. Active, Budgeting, and Reimb Eligible Flags: The active and budgeting boxes should always be checked. The Reimbursement Eligible box, when checked, represents programs that are eligible for Central Draw.

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Program Setup, (PROG) Cont’d.

The Highway Project sub-section of the Program table is not a section that departments need to utilize. However, you will occasionally see information in this sub-section and it will have nothing to do with Highway Projects. Some fields on this table were used by the Federal Grant Unit at the Comptroller’s office to track ARRA information. Station: federal grant award number or other identifying number assigned by the awarding federal agency. Parcel Number: DUNS number.

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Funding Profile Select, (FPRFLST)

The Funding Profile Select Table (Page Code FPRFLST) allows you to search by Department, Major Program, Revenue Source and CFDA number. FEDGRT is the Funding Profile used for all Grants participating in the ACD (Automated Central Draw). Clicking on the “View Funding Profile” link will display the Funding Profile Table.

View Funding Profile Link

It displays information that is obtained from the Award Letter and/ or the Award Form. In order to see this information you must click on the “Funding Line” link in the secondary navigation panel.

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Funding Profile Funding Line Link Funding Line Summary

After clicking on Funding Line Link, on the Funding Profile table, the Funding Line Summary page appears. The Customer Name, which is inferred by the Vendor/Customer Code, represents the Federal Payment System used for reimbursement of grant expenditures.

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Funding Line, Cont’d.

After scrolling, the following key pieces of information can be seen: Revenue: The Revenue Source Code is used to query the Central Revenue (BQ82LV3) Table and is linked to the Central Expense Budget. This field on the funding line is used to create the RE and CD documents associated with the central draw. Federal Catalog Agency and Federal Catalog Suffix: These two fields comprise the CFDA (The Catalog of Federal Domestic Assistance) number. In this scenario the CFDA number is 93.590, represented in these two fields within MMARS. The CFDA number also is displayed on the Revenue Source (RSRC) table. Letter of Credit No: This number is critical to the Draw process. Just like the subaccount, the draw will reject if the letter of credit is not listed or not correct. Payment System: The payment system field is populated by a single letter. In this scenario, the letter “S” represents the payment system “SMARTLINK” which can be seen on the previous slide. Much of this information is provided on your award letter.

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Grant Funding Profile Inference, (GFPI)

Since the Short Name for Major Program and Program is inferred on GFPI, it is required that the Appropriation be used as the short name. There can be more than one Program within a Major Program. It is the responsibility of the direct recipient to ensure that the correct Program Code and Major Program are being referenced. In a parent/child relationship, it is the responsibility of the parent to provide the child with the correct Program Code and Major Program. When entering data into any MMARS payment documents that reference federal grants, Program Code is a required field. It will infer the Major Program. With the exception of the Program Table, Major Program is used as the primary search key for other federal grant related tables. Whenever a new Program is created for a Federal Grant, a new record is also placed on the Grant Funding Profile Inference (GFPI) Table. The GFPI table links together the Major Program, Program, appropriation, and Funding Profile for the Grant to allow for inferences throughout MMARS.

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Ensure Revenue Accurately Posted to BQ82, BQ88 and BQ89

The following chart represents a major program, (appropriation), which is in balance in the BQ89, BQ88, and BQ82 tables in MMARS. It is easiest to follow during the first year of the grant because only one fiscal year would be contained in BQ89 and BQ82. In the example shown below, there are two fiscal years making up the totals.

In Balance 45120186

All years of bq89 – expenses and revenue All bq88 Programs that belong to the appropriations

Expenses Revenue Expenses Revenue 2011 $271,309.56 $271,309.56 F451201862 $150,405.00 $134,508.97 2012 $553,162.78 $531,099.75 F45120186A $6,167.00 $0 F45120186B $0 $0 Total $824,472.34 $802,409.31 FR45120186 $667,900.34 $667,900.34

Total $824,472.34 $802,409.31

All years of bq82 – revenue

2011 $271,309.35 2012 $531,099.75

Total $802,409.31

Remember that the appropriation represents a single Major Program. This shows that the BQ89, BQ88 & BQ82 need to be in balance. This example is looking at one specific appropriation. The BQ89 box to the left represents Expenses and Revenue by fiscal year. In order to compare the two top boxes (BQ89 to BQ88), add up all the years of the appropriation and total them on BQ89. The BQ88 box on the right represents Expenses and Revenue for the life of the grant by the sum off all the programs. Remember, there is no fiscal year in the BQ88 table. Now it is clear that the expenses for the total years of the grant, equals the expenses for all the programs for the lifetime of the grant. Therefore, the expenses are balanced. In the same way, the chart illustrates that the revenue information also matches. The bottom BQ82 box represents the link by Revenue Source Code, between the revenue in both the BQ89 and the BQ88 tables. This is what allows those tables to communicate with each other. If the link is Set-Up successfully, the Revenue figures should match on all three tables.

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Appendix

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Key Federal Grant Links Mass General Law, Chapter 29:6B https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIII/Chapter29/Section6b Cash Management Improvement Act (CMIA) Cash Management Improvement Act (CMIA) CFDA Web Site https://www.cfda.gov Notice of Application for a Federal Grant Notice of Application for a Federal Grant Notice of Federal Grant Application should be sent electronically in Microsoft Word format to the following email address: fedgrantapplication@state.ma.us Notice of Federal Grant Award (Set-Up form) Federal Grant (Non-ISA) Set-Up Form Notice of Federal Grant Award should be submitted electronically in Microsoft Word format to the following email address: CTRFedGrantAward@MassMail.State.MA.US MMARS ISA Policy Location http://www.macomptroller.info/comptroller/docs/policies-procedures/contracts/po-procon-interdept-service-agreements.pdf

Department of Homeland Security Amplified Banking Set-Up Instructions

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From: Grants Management Division - Operations [mailto:ASK-GMD@fema.dhs.gov] Sent: Wednesday, July 18, 2012 8:20 AM To: Bennett, Lillian (OSC); ask-gmd@dhs.gov Subject: RE: Online System Question _ banking form request Good morning: In order to receive direct deposit, please fill out and have your bank complete and sign the attached SF1199A form. The SF1199A should be sent directly from the financial institution to the FEMA Finance Center, via fax or mail to the Vendor Maintenance (see address below). The 1199A form will not be accepted unless it is received directly from the financial institution. Please pay careful attention to the instructions on the form. Attached, please find a sample SF1199A to help you complete the form. A PARS Vendor ID Request Form (attached) is also required. The form is to be forwarded by the requestor, separately, via e-mail to the FFC, Attn: Vendor Maintenance at FEMA-finance@fema.gov. Please indicate on the PARS Vendor ID Request Form the name of the banking institution that will be forwarding the 1199A. Additionally, before sending your SF1199A, please verify that your financial information in the Central Contractor Registration, or CCR (www.bpn.gov), is up to date. FEMA Finance will only process an SF1199A if the information matches what is in the CCR. Mailing Address FEMA Finance Center Attn: Vendor Maintenance P.O. Box 9001 Winchester, VA 22604 Fax Number: (540) 504-1857 Please let us know if you have any additional questions about the forms or the process. Regards, Maliek van Laar, CTR Ask-GMD Control Desk Grant Operations, Dept. of Homeland Security/FEMA 866-927-5646 (Option 3) ask-gmd@dhs.gov

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Drug-Free Workplace Act

Annual Certification for Departments Receiving Federal Grants The Drug-Free Workplace Act of 1988 (41 USC 702) requires all recipients of federal grants to provide annual certification that the grant recipient will take certain steps to ensure a drug free workplace. 45 CFR 76.630(c) allows a state to file one certification to cover all grants to all state agencies from any federal agency. Enclosed is a signed copy of the “Certification Regarding Drug-Free Workplace Requirements” for the federal fiscal year (October 1, 2013 - September 30, 2014). It is each department head’s responsibility to ensure compliance with certification requirements. Departments should take steps to ensure that their employees are notified of the Drug Free Workplace Act by including information in employee handbooks, posting this certification on bulletin boards in the agency, issuing memos to employees supporting these principles, etc. This form should be maintained in your department files and a copy can be forwarded to any federal granting agency, upon request. Drug Free Certificate

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SPENDING PLANS Per Chapter 29 of the General Laws, ANF requests spending plans for all budgetary, trust and federal accounts each year. Departments complete a spending plan for each of their accounts, including federal grants. The spending plans anticipate agencies entering estimated federal grant spending for the current state fiscal year and the next state fiscal year. A department can revise the original submission as needed, or simply indicate that the original estimates are correct. Any new grants that may have been received or that are anticipated can be added. ANF budget analysts review the projected spending, and it is added to the Governor's budget submission, also known as House 1. The House and Senate both include federal grant sections in their budgets, as does the final conference budget. The accounts and dollar values in these budgets is typically very close to the original House 1 submission. The final conference grant numbers are entered into MMARS as Estimated Receipts on the Central Expense Budget Structure, and allow agencies to encumber in their grants. Since the final budget often closely resembles House 1, it is in a department's best interest to ensure that an account is included in the Governor's budget submission, as it will save a department from having to process a BGCN to establish the Estimated Receipts.

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Budget Screens used to Monitor Federal Grants

Budget Screen

Name of Table

Coverage Key MMARS Document

that creates it

BQ89LV2 Central Expense

Given FY Appropriation BGCN

BQ88LV2 Reimbursable Grants

Life of Grant

Program BGRG

BQ82LV3 Central Revenue

Given FY Revenue Source Key

BGRN