Federal Emergency Shelter Grant Federal Emergency Shelter Grant (FESG) (FESG)

Grant Management Training Grant Management Training

20082008

HCD ContactsHCD Contacts

Department of Housing & Community Development Department of Housing & Community Development

FESG ProgramFESG Program

Dan ApodacaDan Apodaca, Homeless Operations Manager, Homeless Operations Manager

Angie OgazAngie Ogaz, HCD Rep II, HCD Rep II Justin JeremiahJustin Jeremiah, HCD Rep II, HCD Rep II Helene HiromotoHelene Hiromoto, HCD Rep II, HCD Rep II Heidi LovittHeidi Lovitt, HCD Rep I/Fiscal Officer, HCD Rep I/Fiscal Officer

Major Items to be CoveredMajor Items to be Covered

Federal Fiscal Year (FFY) & TimelinesFederal Fiscal Year (FFY) & Timelines The Standard Agreement (Std. 213)The Standard Agreement (Std. 213) Financial Management Financial Management Reporting RequirementsReporting Requirements MonitoringMonitoring Impact of Grant ManagementImpact of Grant Management ProcurementProcurement Website AvailabilityWebsite Availability

Federal Fiscal Year (FFY) & Timelines Federal Fiscal Year (FFY) & Timelines (October 1 through September 30)(October 1 through September 30)

NOFA released – February/MarchNOFA released – February/March FESG NOFA workshop – March/AprilFESG NOFA workshop – March/April Grant Application due 6-8 weeks later – April/MayGrant Application due 6-8 weeks later – April/May Review, rating and ranking of applications – Review, rating and ranking of applications –

May/JulyMay/July Announcement of Awards – AugustAnnouncement of Awards – August Agreement mail outs – SeptemberAgreement mail outs – September Agreement Start Date – October 1 (Beginning of FFY)Agreement Start Date – October 1 (Beginning of FFY) Web-Based Grant Management Workshop – OctoberWeb-Based Grant Management Workshop – October Site Monitoring – December through SeptemberSite Monitoring – December through September

The Standard Agreement (Std. 213)The Standard Agreement (Std. 213)

Face Sheet - Term Dates, Exhibits, SignaturesFace Sheet - Term Dates, Exhibits, Signatures• Exhibit A - Authority, Purpose and Scope of WorkExhibit A - Authority, Purpose and Scope of Work• Exhibit B - Budget Detail and Payment ProvisionsExhibit B - Budget Detail and Payment Provisions• Exhibit C - HCD General Terms and ConditionsExhibit C - HCD General Terms and Conditions• Exhibit D - State of CA General Terms and Exhibit D - State of CA General Terms and

ConditionsConditions• Exhibit E - Special Terms and ConditionsExhibit E - Special Terms and Conditions

Note: Grant Application is part of the AgreementNote: Grant Application is part of the Agreement

Agreement Clauses Agreement Clauses

Standard Non-Discrimination Clause.Standard Non-Discrimination Clause.

Efforts to hire small, minority and Efforts to hire small, minority and women’s business enterprise; and labor women’s business enterprise; and labor surplus area firms.surplus area firms.

Efforts to provide employment to lower Efforts to provide employment to lower income residents. (HUD Section 3)income residents. (HUD Section 3)

ConditionsConditions

Prior to charging expenses to the FESG Prior to charging expenses to the FESG Grant:Grant:

Standard Agreement must be executed and Standard Agreement must be executed and approved by the State.approved by the State. All special conditions and certifications must be All special conditions and certifications must be met.met.

Contractors must start expending funds on the Contractors must start expending funds on the approved project within 180 days from date of approved project within 180 days from date of Award notification.Award notification. One Advance (30 day advance or $5,000 whichever One Advance (30 day advance or $5,000 whichever

is greater) within 60 days of commencement date.is greater) within 60 days of commencement date.

Contract and Budget ChangesContract and Budget Changes

MAJOR BUDGET ACTIVITIES ARE: MAJOR BUDGET ACTIVITIES ARE:

Rehabilitation/Renovation (RR)Rehabilitation/Renovation (RR)

Operations (OP)Operations (OP)

Essential Services (ES)Essential Services (ES)

Homeless Prevention (HP)Homeless Prevention (HP)

Supervisory Shelter Administration (SSA)Supervisory Shelter Administration (SSA)

Grant Administration (GA)Grant Administration (GA)

Your Approved Budget SheetsYour Approved Budget Sheets

Before submitting your first PAR you Before submitting your first PAR you should have received a set of should have received a set of Approved Approved Budget Sheets Budget Sheets from your HCD from your HCD representative.representative.

These are the only These are the only Budget SheetsBudget Sheets that that should be used.should be used.

If you have not received the If you have not received the Approved Approved Budget SheetsBudget Sheets, please contact your HCD , please contact your HCD representative.representative.

BUDGET REVISION REQUEST FORM BUDGET REVISION REQUEST FORM (REQUIRED FOR THE FOLLOWING TRANSACTIONS)(REQUIRED FOR THE FOLLOWING TRANSACTIONS)

Contract/Budget AmendmentContract/Budget Amendment Change the ScopeChange the Scope Make cumulative transfers between Major Budget Make cumulative transfers between Major Budget

Activities exceeding 10% of the total grant amount.Activities exceeding 10% of the total grant amount.

Budget Revision Budget Revision Cumulative transfers between Major Budget Cumulative transfers between Major Budget

Activities of 10% or less of the total grant amount.Activities of 10% or less of the total grant amount.

Line Item Revision Line Item Revision Transfer between budget line items under the same Transfer between budget line items under the same

Major Budget Activity.Major Budget Activity.

Contract And Budget ChangesContract And Budget Changes

Financial ManagementFinancial Management

Grantee must maintain a financial accounting system that provides accurate, current, and complete disclosure of financial status of each grant support activity.

Fiscal contact is responsible for Fiscal contact is responsible for maintaining and submitting all FESG maintaining and submitting all FESG forms.forms.

If there are any changes to the fiscal If there are any changes to the fiscal contact, please notify your HCD contact, please notify your HCD representative.representative.

Please inform your HCD Please inform your HCD representative if there are any representative if there are any management changes.management changes.

Financial ManagementFinancial Management

Fiscal FilesFiscal Files

Files should provide all documentation Files should provide all documentation that supports expenses that are that supports expenses that are reimbursed.reimbursed.

Files should beFiles should be:: CurrentCurrent In chronological order/PAR #In chronological order/PAR # Orderly and transferableOrderly and transferable

Advance of FundsAdvance of Funds

ADVANCE REQUEST DUE ADVANCE REQUEST DUE WITHINWITHIN 60 DAYS OF 60 DAYS OF

THE COMMENCEMENT DATETHE COMMENCEMENT DATE

For amount of 30 days cash needs or $5,000 For amount of 30 days cash needs or $5,000 whichever is greater. Submit advance request whichever is greater. Submit advance request by completing a PAR form. (PAR Advance #1) by completing a PAR form. (PAR Advance #1)

““FESG Expenditure Detail” for Advance is due FESG Expenditure Detail” for Advance is due 30 days from the advance period. Example: 30 days from the advance period. Example: Advance for October 1-31, 2008 - Expenditure Advance for October 1-31, 2008 - Expenditure detail on the use of the advance is due detail on the use of the advance is due November 30, 2008November 30, 2008

Program Activity ReportsProgram Activity Reports (PARs)(PARs)

Submit PARs no less than quarterlySubmit PARs no less than quarterly Submit the FESG Expenditure Detail Submit the FESG Expenditure Detail

form with each PARform with each PAR Costs must agree with your Costs must agree with your

approved budget sheets including approved budget sheets including staff/non-staff cost sheetsstaff/non-staff cost sheets

Allow 6-8 weeks for processing from Allow 6-8 weeks for processing from the time HCD receives the PAR.the time HCD receives the PAR.

Common Problems Causing Processing Delays of Common Problems Causing Processing Delays of Program Activity Reports (PARs)Program Activity Reports (PARs)

Ineligible costs requestedIneligible costs requested PARs are submitted latePARs are submitted late PARs not completed correctly (i.e., PARs not completed correctly (i.e.,

expense details are vague, description and expense details are vague, description and dates are missing, job classification not dates are missing, job classification not noted, or new job classification is used noted, or new job classification is used that does not match the Approved Budget)that does not match the Approved Budget)

Costs charged to incorrect budget activityCosts charged to incorrect budget activity Not rounding to nearest dollar; totals not Not rounding to nearest dollar; totals not

correctcorrect

Program Activity ReportsProgram Activity Reports (PARs)(PARs)

Eligible and ineligible costsEligible and ineligible costs Relate expenses to major budget Relate expenses to major budget

activities in your approved budgetactivities in your approved budget PERSONNEL - Detailed Breakdown of PERSONNEL - Detailed Breakdown of

Individual Staff Costs should reflect Individual Staff Costs should reflect Personnel costPersonnel cost

SERVICES AND PURCHASES – SERVICES AND PURCHASES – Summary of Non-Staff Project Costs Summary of Non-Staff Project Costs should reflect services and purchasesshould reflect services and purchases

Performance Reporting RequirementsPerformance Reporting Requirements

Quarterly ReportsQuarterly Reports AuditsAudits Close-OutClose-Out Annual Performance ReportAnnual Performance Report Section 3 ReportSection 3 Report

Quarterly ReportingQuarterly Reporting

Due 30 days after the end of the quarterDue 30 days after the end of the quarter Quarters are:Quarters are:

Oct 1,Oct 1, 20082008 -- Dec 31,Dec 31, 2008:2008: Due Due 1-30-091-30-09

Jan 1,Jan 1, 20092009 -- Mar 31,Mar 31, 2009:2009: Due Due 4-30-094-30-09

Apr 1,Apr 1, 20092009 -- Jun 30, Jun 30, 2009:2009: Due Due 7-30-097-30-09

Jul 1,Jul 1, 20092009 -- Sept 30,Sept 30, 2009:2009:Due Due 10-30-0910-30-09

Note: Missed or late reports affect scoring for future funding.Note: Missed or late reports affect scoring for future funding.

Quarterly Report ExampleQuarterly Report Example

AuditsAudits

Refer to the Grant Management ManualRefer to the Grant Management Manual Guidelines for grantee responsibilities including Guidelines for grantee responsibilities including

frequency, selecting an auditor, types of audits, frequency, selecting an auditor, types of audits, and how to prepare for an audit.and how to prepare for an audit.

Noncompliance with audit requirements will Noncompliance with audit requirements will jeopardize future FESG funding.jeopardize future FESG funding.

Federal Requirements:Federal Requirements: Required if grantee receives $500,000 or more in Required if grantee receives $500,000 or more in

federal assistance during FYfederal assistance during FY Performed annuallyPerformed annually Must be completed by an independent auditorMust be completed by an independent auditor

AuditsAudits

AUTHORITIES:AUTHORITIES:

Audit requirements are outlined in OMB Audit requirements are outlined in OMB Circular A-133. Circular A-133.

Can access OMB Circulars at Can access OMB Circulars at http://www.whitehouse.gov/omb/circulars/index.hhttp://www.whitehouse.gov/omb/circulars/index.htmltml

State Standard AgreementState Standard Agreement Can obtain further information in the FESG Can obtain further information in the FESG

2008 Grants Management Manual2008 Grants Management Manual

Close-Out (Due by October 30Close-Out (Due by October 30thth)) Certificate of CompletionCertificate of Completion Final PAR submitted within 30 days Final PAR submitted within 30 days

after the contract termination dateafter the contract termination date Final Quarterly ReportFinal Quarterly Report Any Outstanding ReportsAny Outstanding Reports

Note: Late submittal will affect future scoringNote: Late submittal will affect future scoring

Other Reporting RequirementsOther Reporting Requirements

Annual Performance Report-Annual Performance Report- reports reports FESG accomplishments on an annual FESG accomplishments on an annual basis for each FESG contract. basis for each FESG contract.

Section 3 Report-Section 3 Report- reports the reports the “Economic Opportunities for Low and “Economic Opportunities for Low and Very Low-Income Persons referred to Very Low-Income Persons referred to as Section 3 residents. as Section 3 residents.

MonitoringMonitoring

What FESG monitor reviewsWhat FESG monitor reviews Financial records (PARs)Financial records (PARs) Audit reportsAudit reports Supporting program documentationSupporting program documentation

Site Monitoring includesSite Monitoring includes Personnel and client filesPersonnel and client files Physical site for health & safetyPhysical site for health & safety

Corrective Action ProcessCorrective Action Process

Meets with program representative to Meets with program representative to discuss findingsdiscuss findings

Sends a letter outlining the findings and Sends a letter outlining the findings and if non-compliant, will ask for verification if non-compliant, will ask for verification of corrective actionof corrective action

Consequences of non-compliance can Consequences of non-compliance can be no payment of funds, return of be no payment of funds, return of funds, denial of future grant, possible funds, denial of future grant, possible closureclosure

Desk Monitoring ProcessDesk Monitoring Process

Program selected based on Risk Assessment Program selected based on Risk Assessment evaluation conducted by FESG. evaluation conducted by FESG.

Information requested is based on the risk Information requested is based on the risk assessment.assessment.

After review, HCD provides a letter outlining After review, HCD provides a letter outlining findings with request for verification of corrective findings with request for verification of corrective action, if needed.action, if needed.

Grantee responds to HCD’s requests promptly Grantee responds to HCD’s requests promptly with written notification of corrective actions with written notification of corrective actions taken.taken.

Note: Consequences of non-compliance may include: no Note: Consequences of non-compliance may include: no payment of funds, return of funds, denial of future grantpayment of funds, return of funds, denial of future grant

Employment PracticesEmployment Practices

May not May not discriminate discriminate regarding regarding employment. employment.

Provide Provide opportunities for opportunities for training and training and employment to employment to lower-income lower-income persons (Section 3)persons (Section 3)

Formal policy Formal policy regarding regarding discriminationdiscrimination

Keep records for 6 Keep records for 6 years.years.

Impact of Grant ManagementImpact of Grant Management

Program compliance may impact Program compliance may impact future Rating and Rankingfuture Rating and Ranking

Timely submittal of PAR, quarterly, and Timely submittal of PAR, quarterly, and annual reportsannual reports

Collecting statistical information Collecting statistical information and and documents supporting outcomesdocuments supporting outcomes

Timely Obligation of funds and Timely Obligation of funds and expendituresexpenditures

Consistency in fiscal managementConsistency in fiscal management

ProcurementProcurement

The Grant Management Manual has The Grant Management Manual has guidelines when purchasing and guidelines when purchasing and contracting for supplies, equipment, contracting for supplies, equipment, services acquired in whole or in part services acquired in whole or in part with FESG funds.with FESG funds.

The intent of procurement guidelines The intent of procurement guidelines is to assure an open and competitive is to assure an open and competitive process in meeting federal goals.process in meeting federal goals.

Grantee Responsibilities:Grantee Responsibilities: Establish a code of standards or ethicsEstablish a code of standards or ethics Competitive bidding Competitive bidding No duplicate or ineligible purchasesNo duplicate or ineligible purchases Efforts to attract small and minority-Efforts to attract small and minority-

owned businessesowned businesses Procedures to ensure requirements are Procedures to ensure requirements are

metmet Must maintain complete files to document Must maintain complete files to document

compliance with these requirementscompliance with these requirements Compliance with State Standard Compliance with State Standard

AgreementAgreement

ProcurementProcurement

ProcurementProcurement

Grantee must submit a detailed justification of Grantee must submit a detailed justification of the need for equipment/fixtures when:the need for equipment/fixtures when:

Local government Local government Purchase of $5,000 or more with a useful life of more Purchase of $5,000 or more with a useful life of more

than one yearthan one year Nonprofit organizationsNonprofit organizations

Purchase of $500 or more with a useful life of more than Purchase of $500 or more with a useful life of more than one yearone year

Note: HCD must pre-approve the procurement 30 Note: HCD must pre-approve the procurement 30 days prior to the purchasedays prior to the purchase

Procurement MethodsProcurement Methods

Small PurchasesSmall Purchases Competitive BidsCompetitive Bids Competitive NegotiationCompetitive Negotiation Noncompetitive NegotiationNoncompetitive Negotiation

FESG Checklist of Do’s and Don’tsFESG Checklist of Do’s and Don’ts

Do’s-Do’s- Carry over current balance (column 4) from Carry over current balance (column 4) from

previous PAR to your next PAR (column 2) previous PAR to your next PAR (column 2) Submit PAR request 30 days from the close Submit PAR request 30 days from the close

of the reporting period. (Remember due to of the reporting period. (Remember due to the State of California budget, the months the State of California budget, the months of June and July your reimbursement of June and July your reimbursement request may be delayed if you do not get request may be delayed if you do not get your PAR request in on time.)your PAR request in on time.)

Communicate with your FESG Communicate with your FESG Representative.Representative.

FESG Checklist of Do’s and Don’tsFESG Checklist of Do’s and Don’ts

More Do’sMore Do’s Use the approved budget sheets as your Use the approved budget sheets as your

reference for completing the PARreference for completing the PAR Ensure the heading at the top of each PAR is Ensure the heading at the top of each PAR is

complete with the current Contact Person Name, complete with the current Contact Person Name, Title, E-Mail Address, Phone Number, and Fax Title, E-Mail Address, Phone Number, and Fax Number, etc.Number, etc.

Use the correct staff titles and names on the Use the correct staff titles and names on the detail expenditure sheetdetail expenditure sheet

Show payroll dates for staff on the Detailed Show payroll dates for staff on the Detailed Expenditure SheetExpenditure Sheet

Use subtotals on each page of the FESG Use subtotals on each page of the FESG Expenditure Detail SheetExpenditure Detail Sheet

Round cents to the nearest dollarRound cents to the nearest dollar

FESG Checklist of Do’s and Don’tsFESG Checklist of Do’s and Don’ts

More Do’sMore Do’s Type or write page numbers on the FESG Type or write page numbers on the FESG

Expenditure Detail Sheets if multiple pages are Expenditure Detail Sheets if multiple pages are usedused

Submit the FESG Expenditure Detail Sheets in Submit the FESG Expenditure Detail Sheets in the following sequence:the following sequence:

MAJOR REHAB/CONVERSION (If applicable)MAJOR REHAB/CONVERSION (If applicable) RENOVATION (If applicable)RENOVATION (If applicable) OPERATIONS (1. Staff Costs, then 2. Non-Staff Costs);OPERATIONS (1. Staff Costs, then 2. Non-Staff Costs); ESSENTIAL SERVICES (1. Staff Costs, then 2. Non-Staff ESSENTIAL SERVICES (1. Staff Costs, then 2. Non-Staff

Costs)Costs) SUPERVISORY SHELTER ADMINISTRATIONSUPERVISORY SHELTER ADMINISTRATION HOMELESS PREVENTION (If applicable)HOMELESS PREVENTION (If applicable) GRANT ADMINISTRATIONGRANT ADMINISTRATION

Submit the PAR with the original signature by Submit the PAR with the original signature by the Authorized Representative, Title, and Datethe Authorized Representative, Title, and Date

FESG Checklist of Do’s and Don’tsFESG Checklist of Do’s and Don’ts

Don'tsDon'ts Submit a PAR request for items not in Submit a PAR request for items not in

your approved budget. your approved budget. Submit a PAR request with ineligible Submit a PAR request with ineligible

costs.costs. Submit a PAR request for expenses that Submit a PAR request for expenses that

your organization has not incurred. your organization has not incurred. Request a budget revision or contract Request a budget revision or contract

amendment after August 1st.amendment after August 1st.

FESG Checklist of Do’s and Don’tsFESG Checklist of Do’s and Don’ts

More Don'tsMore Don'ts

Send Timesheets, invoices, receipts, Send Timesheets, invoices, receipts, etc., unless specifically requested by etc., unless specifically requested by your Representativeyour Representative

Leave page numbers off the FESG Leave page numbers off the FESG Expenditure Detail Sheets if multiple Expenditure Detail Sheets if multiple sheets are usedsheets are used

Report cents on PARsReport cents on PARs

Key DocumentsKey Documents

Standard AgreementStandard Agreement FESG Application submittedFESG Application submitted HCD Approved Budget including HCD Approved Budget including

Detailed Breakdown of Individual Detailed Breakdown of Individual Staff Costs and Summary of Non-Staff Costs and Summary of Non-Staff Project CostsStaff Project Costs

Current FESG Forms on HCD Current FESG Forms on HCD websitewebsite

STD 204STD 204

Grant Management Training QuestionsGrant Management Training Questions((Please answer on Answer sheet included in email)

1.1. How many days after the contract terminates How many days after the contract terminates should the Final PAR be submitted?should the Final PAR be submitted?

2.2. Can your last reimbursement be held by the Can your last reimbursement be held by the State until all reports/forms are submitted and State until all reports/forms are submitted and approved by the State?approved by the State?

3.3. How many days after the month ends is the How many days after the month ends is the Program Activity Report and expenditure Program Activity Report and expenditure detail due?detail due?

4.4. Regarding the issue of Procurement, please Regarding the issue of Procurement, please list 3 grantee responsibilities: list 3 grantee responsibilities:

5.5. What is the maximum percentage of the total What is the maximum percentage of the total grant amount that can be moved between grant amount that can be moved between Major Budget Activities for a FESG contract Major Budget Activities for a FESG contract without having to amend the contract?without having to amend the contract?

Grant Management Training QuestionsGrant Management Training Questions

6.6. How many years should you keep an accurate How many years should you keep an accurate and complete set of accounting records?and complete set of accounting records?

7.7. When purchasing equipment or fixtures as a When purchasing equipment or fixtures as a Nonprofit organization a detailed justification is Nonprofit organization a detailed justification is needed for a purchase greater than $____ needed for a purchase greater than $____ dollars?dollars?

8.8. If a grantee receives more than $____ in a federal If a grantee receives more than $____ in a federal year an audit must performed and submitted.year an audit must performed and submitted.

9.9. Besides your HCD Representative, what else can Besides your HCD Representative, what else can you use as a source to determine if an expense you use as a source to determine if an expense might be eligible?might be eligible?

10.10. What are the three items that must be submitted What are the three items that must be submitted in order to closeout the contract?in order to closeout the contract?

Grant Management Training QuestionsGrant Management Training Questions

11.11. What are the three most important key What are the three most important key documents?documents?

12.12. What should be done if the fiscal What should be done if the fiscal representative of your organization changes?representative of your organization changes?

13.13. Should you include dates for staff on the detail Should you include dates for staff on the detail expenditure sheet? expenditure sheet?

14.14. When completing a PAR, who should sign the When completing a PAR, who should sign the PAR before submission?PAR before submission?

15.15. How much time should be allowed to process How much time should be allowed to process the PAR once HCD receives it?the PAR once HCD receives it?

Grant Management Training CertificationGrant Management Training Certification20082008

I hereby attest that I have I hereby attest that I have completed the 2008 FESG Web-completed the 2008 FESG Web-Based Training and have answered Based Training and have answered and submitted the questions to HCD and submitted the questions to HCD to be placed in our fiscal file.to be placed in our fiscal file.

______________________ _____________________________ _______ SignatureSignature Date Date