2006 Financial Management Training

Warren J. McKeon

SWAM

• Equal Opportunity in Procurement (EOP)

• Small, Woman Owned And Minority

Why SWAM?

• Disparity study• Maryland spent 17% with Minority and Woman Owned

Businesses in 2001

• Texas spent 13%

• Florida spent 11.8%

• _______________________________

• And Virginia spent 1.27%of which .44% was minority

Virginia Today

• Statewide minority business spending for the quarter ended 12/31/2005 increased to 2.58%

• Statewide woman business spending increased to 2.23%

• The total is 4.81% compared to 1.27% in 2001.

VDA

• Minority business spending for the quarter ended 12/31/05 was 6.03%.

• Woman business spending was 3.61%

• This total is 9.64% vs. the statewide total of 4.81%

Additional DMBE Initiatives

• Streamlining the certification process

• CALCULATING AND COMPILING SUBCONTRACTING SPENDING

• Set asides• Unbundling large contracts• Establish a Hampton Roads Bureau• Collaboration

Subcontracting Spending

• DMBE now requires the Fed ID of of each

SWAM (EOP) vendor reported.

• VDA revised the form to include this information on March 10th.

• Only 18 Agencies submitted EOP reports and 4 used the old form, which did not include the Fed ID field

Action Requested

• Use the current form & include fed ID #.

• File by the 10th of the month following the end of a quarter.

• Encourage SWAM vendors to apply for DMBE certification.

• Assist SWAM vendors with the application process, if feasible.

Title V

• 2006 Closeout reports will be due on or before August 1st.

• Your Title V budget is comprised of enrollee wages & fringe, other enrollee costs, and administration.

• Administration may be used to fund either enrollee wages or other enrollee costs. Other enrollee costs may be used to fund enrollee wages.

Title V continued

• Match is required at a minimum of 10%.

• Please ensure sufficient match is reported on your closeout report.

Title V Accrued Costs

• Accrued costs should be reported on the Title V expense report.

• How is it reported on the request page?

• Case study

Incorrect AAA

• Cash disbursed year to date on the request worksheet does not agree with expenditure worksheet

Correct AAA

• Expenditures agree

National Contractors

• DOL is putting out for bid “again” the National contracts.

• VDA is a sub-recipient of a grant from the National Council On Aging.

• Directly affects AASC, LOA, Alexandria, Arlington, Fairfax, Prince William, Senior Services of Southeastern Virginia.

National Contractors

• Indirectly may affect all Title V recipients.

DOL

• Plans to extend current national sponsor contracts one month.

• It will execute two month grants for August and September.

Thirteen Month (Final) Report

• An audit report shall be submitted to VDA by December 15th.

• A 30 day extension may be requested.

Thirteen Month (Final) Report

• Audit Confirmation– Suggest the auditor confirm the revenues

received, CFDA #s, etc.

Thirteen Month (Final) Report

• “The independent accountant shall render an opinion on three accompanying schedules: Status of Funds, Costs by Program Activity, and Status of Inventories.”---22VAC5-20-480 scope of audit report, effective May 10,1989.

Thirteen Month Report

• Insure the auditor is using the current version of Schedules A, B & C.

Opinion

• Make sure the accountant renders an opinion on the schedules: Status of Funds, Costs by Program Activity, and Status of Inventories.

• We have had some instances where the accounting firms are not including an opinion on these schedules.

Thirteen Month Report

• Monitoring grantee’s expenditures

• Calculate amount of grant eligible to be carried forward to a subsequent year

• Gather data for federal reporting

Thirteen Month Report

• Schedule A Status of Funds• Used to monitor expenditures and calculate amount

of grant eligible to be carried forward.

• Make sure that the expenditures shown on the report do not exceed the amount of the grant awarded.

Thirteen Month Report

• Schedule B Costs By Program Activity• Use data for federal reporting

In-kind

Federal & nonfederal prep & adm. Fees

Contributions

LT Ombudsman from Part B

Status of Inventories

• What equipment inventory needs to be returned or liquidated and refunded to the federal government in the event the program (grant) is terminated.

• Market value of $5,000 per item.

Contract Review Summaries

• Performance Monitoring– Reviewed by Finance and Program Staff

Monthly– Compares year to date expense and statistical

data obtained from AMR to Area Plan– Program staff or finance staff may follow up

with large variances

Virginia Results

• www.dpb.virginia.gov/VAResults

• Select Agency Planning and Performance

• Select Virginia Department for the Aging

• 14 Measures upon which VDA is evaluated

• VDA is dependent on AAAs & OCs

Virginia Excels

• www.vaexcels.governor.virginia.gov

• Select Agency Performance Information

• Select Management Scorecard

• One of the criteria is performance management

Transportation

• Transportation Services For the Elderly and Disabled Contract– Final Reports for the contracts ending on either

March 31 or April 30th are due June 30th.– Select Final report from the month dropdown

menu on the payment worksheet.– All obligations need to be liquidated.

State Fiscal Year End

• All grants funded by state general funds must be drawn by June 30th.

• If we are unable to process payment by June 30th, the funds are lost.

• Include the unpaid balance of of the grant on your June Aging Monthly Report, which is due on June 12th.

State Fiscal Year End

• Even if funds are drawn by June 30th, they must also be obligated by June 30th.

• Purchase order issued.

• Salary and tax expense incurred, but not paid as of June 30th.

State Fiscal Year End

• If funds are obligated by June 30th and drawn by June 30th, the Agency has until September 30th to liquidate the obligation.

State Fiscal Year End

• Federal Funds– Even though we have Federal grants awarded,

VDA cannot make a payment unless the money is appropriated.

– Funds are appropriated through the budget process. If the budget bill is not passed and signed by July 1st, VDA does not have any appropriation (authority) to spend Federal dollars on July 1st.

Financial Hardship

• Tim has indicated that Agencies can submit their July request (June AMR due to be submitted on July 12th ) on June 20th and we will make payment by June 30th.

• If the budget bill passes and is signed, there will not be a need to do this.

Ethics2006

Your License Depends On It