Agricultural Products Utilization Commission Fiscal Agent Certification &

Grant Recipient Post Award Training

May 9, 2017

5/8/2017

APUC creates new wealth and employment opportunities through the development of new and expanded uses of

North Dakota agricultural products.

Updates & What to Expect Updated Grant Guidelines

New Application Process

Continued Project Monitoring

Evaluation of Economic Impact

Program Information• Mission:

APUC creates new wealth and employment opportunities through the development of new and expanded uses of North Dakota agricultural products.

• State funded program established in 1979• Funding sources:

- General Funds- Special Funds (ND Mill & Elevator)- Carry-Over Authority

• Branch of Economic Development and Finance with the Department of Commerce• Commission of 9 voting members who evaluate eligible grant applications and decide which proposals are

funded.• Quarterly Commission meetings held around the state• 15-17 Biennium funded 42 grants for $2.6 million • 13-15 Biennium funded 61 grants for $3 million

Types of Grant Opportunities

• Administer 6 Grants:- Basic and Applied Research- Farm Diversification- Nature Based Agri-Tourism- Marketing and Utilization- Technical Assistance- Prototype Development and Technology

How Does APUC Contribute to ND?

• Development of marketable products• Implement marketing plan• Conduct feasibility study• Expand advertising efforts• Technical assistance• Diversify/Expand farm and agri-tourism operations• Conduct new and innovative research related to ND ag products

What are Some Ways Funds can be Utilized?

• Support and develop new businesses = NEW WEALTH and JOB CREATION• Expand current business operations = INCREASED PRODUCTION and PROFITS

Application Process

• Eligible grant applicants:- Groups and individuals who add value to a ND ag product or byproduct - Companies registered with ND Secretary of State

• Thoroughly review guidelines and contact APUC staff to see if project qualifies • Secure a fiscal agent and is encouraged to work with a project advisor

- Local economic developers - County agents- Regional councils - Agricultural loan officers- Accountants - Personal banker/loan officer

• Submit application and required supplemental attachments before due date- New application and updated guidelines are located on website.

• Initial review of application to move forward for consideration of funding will be conducted.• Proposals considered for funding will present project to commissioners

- 30 minutes and PowerPoint presentation

Release of Grant Funds

• Funded proposals - Contract- Business Incentive Agreement- W-9 IRS Tax Form (completed by fiscal agent company)- Royalties Agreement (if applicable)

• 50% of grant award released to fiscal agent once required paperwork signed and returned to APUC- Funds held in an account with fiscal agent company- Proof of payment and itemized invoices submitted to fiscal agent- Funds disbursed to grantee on reimbursable basis as an equivalent amount is expensed- Proof of matching funds committed to support incurred expenses

• Remaining 50% of grant award released to fiscal agent upon completion and approval of final report

• Effective 8/1/2016 - No funding caps when applying• APUC pays fiscal agent administrative fee

- Increased to 5% not to exceed $5,000 of amount requested from APUC.• Allowable and unallowable costs are outlined in Project Budget Instructions of application. • Claimable spending may date back to application due date through end date stipulated in contract.• Funds must be utilized for costs associated to scope of approved application.• Prior approval for change in scope and budget amendment• If proposal is funded less than amount requested, it will be approved contingent the applicant:

- Submit revised scope of work and budget- Proof project is still feasible and can be completed within stipulated period of performance

• Grant award may be subject to reduction if all grant funds are not utilized or respectively matched.

APUC Funds

MATCHING FUNDS

• Cash match and in-kind contributions- Effective 8/1/2016 - Minimum dollar investment of 25% of the total amount requested from APUC,

exclusive of fiscal agent fee. - In-kind support may not exceed 50% of total match.- Must provide detailed cost justification for any in-kind support.

• Claimable spending may date back to application due date through end date as stated in contract.• Must be utilized for costs associated to scope in approved application• Prior approval needed for change in scope & budget amendment• Match commitment may be subject to reduction if proposal is partially funded or all grant funds are not

utilized.

Travel Expenses• Mileage is reimbursable

- 2017 rate 53.5¢ per mile - 2016 rate = 54¢ per mile - 2015 rate = 57.5¢ per mile- Rate per mile is to a geographic point 300 miles from the borders of the state and 18¢ per mile for the

remaining distance.- Required backup must include purpose and destinations for travel.

• Effective 8/1/2016 associated costs incurred for meals are an unallowable expense and cannot be reimbursed by APUC.

• Grant projects approved prior to this date will adhere to guidelines in place at that time. - ND Daily Meal Per Diem - $35 per individual traveling (varies state-to-state)

Meal Allowances Per DiemBreakfast – 1st qtr., 6 a.m. to 12 noon $7.00Lunch – 2nd qtr., 12 noon to 6 p.m. $10.50Dinner – 3rd qtr., 6 p.m. to 12 midnight $17.504th qtr., 12 midnight to 6 a.m.

- Must be in travel one hour prior to start time of quarter, extend one hour past the start time of quarter and include an overnight stay or be away from the normal place of employment for 4 hours or more.

- First and last day of travel only allows 75% of total daily per diem rate.- NO alcohol or tobacco (APUC & Match)- Required backup must include purpose, itemized invoices and proofs of payment

o Grantee Final Report Travel Reimbursement Claim – OPTIONALo Rates and per diems must reflect the reimbursable rate in place at the time travel occurred.

Lodging

• Actual lodging expense is reimbursable • Required backup must include purpose, itemized invoices and proofs of payment

- Grantee Final Report Travel Reimbursement Claim – OPTIONAL• Unallowable:

- Entertainment (e.g. movies)- Laundry services (unless extended stay, need prior approval)- Late check out fees- Room service in excess of allowable meal per diem for that quarter

o Need itemized receipto Applies to projects allowed to have meal per diems, approved prior to new guidelines effective

8/1/2016

Marketing & Advertising Costs

• Consultant fees• Trade shows• Seminars and conferences• Website development• TV, radio, newspaper and magazine ads• Billboards and custom business signs• Social media• Catering for approved marketing event

- Must have prior approval- Justify cost for each participant by using meal

per diem for that quarter

Not Funded By APUC

• Operating and indirect costs- Production costs and other costs not directly

related to the scope of the project• Any expenses not associated to approved budget• Salaries/fringe benefits

- Only allows graduate and undergraduate students of higher educational agencies who are assisting with a Basic and Applied Research Grant project.

• Meal per diems associated with approved travel- Only pertains to proposals approved after 8/1/2016- Proposals approved prior to 7/31/2016 follow guidelines

in place at that time (IRS per diems)

Grantee Responsibilities• Participate in APUC training• Implement scope of work• Track progress and retain supporting documentation• Evaluation of Economic Impact

- Provide information, as requested, on progress made for duration of projecto Periodic updates of new construction, infrastructure and expansiono Acquisition of capitalized equipment o What financial impact did that grant project have on the region and economy of ND?o How many jobs were created?o Participate in NDSU’s economic analysis of how APUC grant funds have benefited businesses

and impacted economy o Submit extension request if needed (up to 6 months)

• Participate in random on-site monitoring visits with APUC staff • Final Report

- Executive summaryo What happened during the course of the projecto Obstacleso What recommendations would be suggested for alternative resultso Results (good or bad)o How APUC & matching funds were spento Photos related to project o Will the project be moving forward and how?

Fiscal Agent Responsibilities

• Receive grant funds to be held in an account for grant recipient to spend down• Track and ensure funds are spent according to approved budget

- Matching funds are committed per approved application • Request copies of itemized invoices and proofs of payment (APUC and Match)

from grantee• Release funds to grantee on a reimbursable basis as an equivalent amount is

expensed on project• Submit budget amendment requests• Participate in on-site monitoring visits with APUC staff • Final Report

- Create financial worksheet (spend down budget) of itemized expenses- Compile and submit supporting financial documents and grantee’s final

report

• Completed by fiscal agent- Accounting of all APUC and matching funds- Incurred expenses must be relative to scope of project and approved budget- Line by line categorical account for all expenses - Include copies of itemized receipts/invoices and proofs of payment- Remove unallowable charges and applicable tax - Convert foreign currency to USD

o Use currency rate in place at the time travel occurredo Grantee Final Report Travel Reimbursement Claim – OPTIONAL

- Reconciliation of funds requested to actual expenditures and final payment request

Financial Worksheet

Support for APUC’s Fiscal Agents

• Fiscal Agent Certification Trainings• Welcome to attend quarterly commission meetings• Sign up to receive newsletters

- Success stories of grant projects- Updated program and funding information

• Community visits with APUC and ED&F staff• Partners in Marketing Grant Program

https://www.commerce.nd.gov/services/GrantPrograms/PartnersinMarketing/

How can Fiscal Agents Support APUC?• Provide information about APUC as potential business ventures are introduced• Direct individuals and businesses to the Dept. of Commerce website

http://www.business.nd.gov• Open discussion on their needs and concerns• Discuss benefits and incentives Commerce offers which may meet their needs

Helpful Resources

• APUC Website(Shared information, applications, forms, deadlines and news releases)http://www.business.nd.gov/apuc

• APUC Facebook Pagehttps://www.facebook.com/NDAPUC

• Per Diem Rates http://www.gsa.gov

• ND Secretary of State (Business Search)https://apps.nd.gov/sc/busnsrch/busnSearch.htm

• Business Incentive Agreementshttp://www.commerce.nd.gov/services/BusinessIncentiveAccountability/

Contact us

John F Schneider(701) 328-5350

jfschneider@nd.gov

LaTosha Pierce(701) 328-5318lpierce@nd.gov

A Program of the North Dakota

Department of Commerce____________________

Ag Products Utilization Commission

1600 E Century Ave., Ste. 2

PO Box 2057Bismarck, ND 58502

Visit us on the web at: www.NDAPUC.com

Check our Facebook page:

www.Facebook.com/NDAPUC

Thank you for your assistance in working with APUC to improve the quality of life for ND citizens by leading efforts to attract,

retain and expand wealth.