Performance and Certification Standards:

Statewide Policy Implications

November 7, 2002

Dick Hall – Capital Area Asset Building

Corporation (CAAB)

Jan Huneke – Corporation for Enterprise

Development (CFED)

Voluntary Certification Standards

For Individual Development Account Programs

Seven Basic Principles

1. IDA Programs should be accountable to accountholders and all stakeholders

2. The certification system should help the field by fostering high quality and attracting funding and other partners without suppressing innovation

3. The system should be flexible to allow change and refinement and to recognize diversity in the field – encourage learning and change in the field and not locking in current practice

Seven Basic Principles

4. The field is young and much is unknown about best practice and as a result the standards should not be narrowly prescriptive

5. The system will work best if it is voluntary

6. The system should be affordable

7. The system should facilitate the start of an IDA program by allowing commitment to the principles of good practice as a basis of provisional certification

History Undertaken to strengthen field and foster growth

Initial draft presented at 2000 IDA Conference 600+ attendees’ feedback solicited

Diverse national task force assembled Conference feedback examined and incorporated into 2nd draft

2nd Draft widely shared with comments solicited Posted on IDANetwork; 3,000 people notified via Assets Newsletter; direct mailing to 1,250

stakeholders

Task force processed additional feedback, issued subsequent drafts – current Spring 2002

Purposes: Protect the promisePromote qualityIdentify quality programs Encourage innovationIncrease investment

Level: Basic - Not best practiceTypes - Provisional 0 - 12 months and

Operating 12 months +Duration - 3 years Measurement - 6 areas of operation

Quality Standards

Full Disclosure Agreement - states all program conditions expectations, roles and responsibilities of program and participant

Uses: FlexibleMatch Adequacy: Sufficient to leverage purchase

Cost of assetRealistic saving goals

Match Approval: Written approvalTimely manner

Security: IRA eligible, insuredStatements: Quarterly - savings, interest, match

Accounts

Match Funds: Equal to 80% maximum contingent liability

Room for attrition and unmet goals

Program Funds: One year banked or committed and a fundraising plans for

future and lost funding

Funding

1. Adequate Staff

Recommended:

1 Staff per 50 accounts

2 Staff per 100 accounts

Additional FTE per each additional 100 accounts

Required:

Staffing plan that reflects staff coverage for all phases of program implementation

Collaboratives, partnerships, or multi-site roles of organizations included

Staffing

2. Experience/Training

Either one year of prior experience in IDA program management or training and/or formal TA

3. Networking/ Learning

Learning Conference

Learning Network (www.idanetwork.org)

Other conferences, meetings, listserves

Staffing

Organizational Stability

1. Organizational Experience

Experience serving similar populations

Fiscal Agent unqualified audit by CPA

Less than 2 years old without audit, should contract for fiscal agent services

2. Partnership/Collaborative Agreement

Written agreement with goals, roles and responsibilities

3. Written IDA Program Plan

Written program plan updated annually

Should address all program issues

Should be accessible to all stakeholders

4. Written Policies and Procedures

Day to day operations, ie. income guidelines, enrollment, handling of missed deposits, etc.

Must be provided to all staff

Organizational Stability

1. Basic Personal Financial Management Training

Training that covers all aspects of financial literacy as specified

2. Asset Specific Training

Training on homeownership, business start- up or post-secondary education/training

Asset Training

1. MIS RequiredMonitor and report on demographics,

savings, asset purchases and financial and operational aspects of the Program. (MIS IDA or equivalent)

2. Annual ReportingWritten annual reports to public and Certification Review Board on

number of accounts open, total and average monthly savings, etc. using standard format

Management Information System and Reporting

Certification

Certification Website

“Yellow Book” Auditor

Audit Module

Back-Up Documentation

Certification Review Board

Process

Re-Certification

Annual Reports using Audit forms demonstrating consistent maintenance of quality standards

Filed with Certification Review Board

De-Certification

Annual Report suggests decline in standards

Corrective Action Plan should accompany the filing of a new annual report within 60 days

Process

Documentation and Files

Full Disclosure Agreement

Partnership/ Collaborative Agreement

Policy and Procedure Manual

Staffing Plan

Participant Handbook

Comprehensive Proposal/ Business Plan

Program Budget

Bank Agreement

Audit Process

Application Form and Fee ($200.00 )

The Auditor

“Yellow Book” Auditor - Grant Thornton

Review documentation, files, and staff interviews

Auditor Feedback

Objective observation of program

Audit Module reflecting evaluation of each standard

Audit Memos

Management Letter

Audit Process

Certification Review Board

Submission of Management Letter to an objective body made up of key stakeholders

Independent decision making body

Corrective Action Plan

If management letter reflects deficiencies, program can decide not to submit to the Board

Develop a Corrective Action Plan addressing deficiencies

Auditor may review changes when implemented and issue a memo on the Corrective Action Plan indicating compliance with standards

Resubmission to Certification Review Board

Audit Process

Certification Award

Issued by Certification Review Board

Good for three years supported by positive annual reports

Certified programs will be published with list of endorsements on-line and in Asset Newsletter

May be displayed at Program site

Audit Process

Next Steps

1. Pilot Program - Closely monitored pilot with 25 sites

2. Modify and Improve - Standards and Process

3. Develop list of endorsements

4. Develop Certification Website

5. Hire staff to manage ongoing implementation and improvement process

6. Full Scale Launch to the Field

Statewide Policy Implications

Benefits and Challenges of Performance/Certification Standards

What Standards are Currently Being Used?

How are They Being Used?

What’s Working/What’s Not?

How do Changes in Delivery Models and Products Impact the Use of Standards?