compliance in chaos final (2) (2)
TRANSCRIPT
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Compliance in the Midst of Chaos:
Managing your federal award when everything is URGEN
T
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Learning ObjectivesManaging your federal award when everything is urgent:
Introduce management tools for determining true “urgency” in project management “Triage” of requests System Implementation
Review regulatory options and supplements that streamline project management 2 CFR 200’s Fixed Amount Award (FAA) 10% “de minimus” for indirect cost
Discuss “rescue” techniques for overburdened projects experiencing ongoing chaos Vin Diesel model Angelina Jolie model Liam Neeson model 007 model
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Determining “Urgency”
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“Triage”
Commonly used medial term with grant-management (or project management) applicability
─ Ignores non-critical “deadlines”
─ Considers core issue and ability to resolve
─ Question to ponder when all things equal: “what is the consequence of inaction”
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Triage in Grant Management
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Creating Systems/Processes
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“Systems/Processes”Development of a consistent, documented and repeated method for responding to events or implementing activities:
─ Systems should eventually become invisible, it just becomes “the way we do things”
─ True systems are taught and re-taught so that everyone understands what happens and when
─ Systems do not have to be complicated, they can be as simple as a checklist, template or chain of communication
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“Systems/Processes”
Regulatory connection to the establishment of “systems” is “internal controls”
Your internal controls should check whether or not your “systems” are consistently applied
Examples of systems: files for your grant records; methodology for monitoring sub-grantees; procurement process
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____ Current mission / vision / values statements
____ Board member recruitment system
____ Board member orientation system
____ Board development and training strategies
____ Attendance policies
____ Membership and term limitation policies
____ Organizational chart
____ Chair and officer job descriptions
____ Committee charters
____ Board operations and policy manual
____ Chief executive performance review process
____ Board self-evaluation process
____ Board calendar with meetings, events, activities and updates
____ (Other items:)
BOARD OF DIRECTORS
Recommended “Systems” Check:
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Recommended “Systems” Check:
____ Current strategic plan
____ Diversity plan (for Board and staff)
____ Marketing plan
____ Fundraising / Development plan
____ Board and committee work plans (with objectives and timelines)
____ Yearly operations plan, including staff work plans
____ (Other items:)
PLANNING
____ Valid methods to assess client needs (focus groups, surveys, etc.)
____ Established service outcomes to match client needs
____ Established target indicators for each outcome
____ Data collection methods for each target indicator
____ (Other items:)
PROGRAM AND OUTCOMES EVALUATION
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____ Client program records
____ Volunteer records
____ Personnel records
____ Financial records
____ Donor and contributor contract records
____ Mailing lists
____ Work flow descriptions for each major operational activity
____ Operations manual containing work flow descriptions
____ Inventory of computer hardware, software, peripherals, etc.
____ Procedures for each major function to maintain computer systems
____ Regular backups of computer disks (one copy stored offsite)
____ Disaster recovery plan (one copy stored offsite)
____ (Other items:)
Recommended “Systems” Check:INFORMATION MANAGEMENT
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____ Board-adopted fiscal policies
____ Board-approved fiscal year budget
____ Financial procedures / internal controls manual
____ Inventory system
____ Depreciation schedules
____ Cash flow analysis system
____ Partial or full accrual accounting system
____ Monthly financial statements with balance sheet
____ Yearly audit or outside review
____ Program analysis system
____ Tax and other reporting schedules
____ Payroll record system
____ (Other items:)
FINANCESRecommended “Systems” Check:
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Systems/Processes
“Grant managers, stay in your lane!”
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Systems/Processes Grant management is directly connected (but not
always engaged in) organizational systems
2 CFR 200.303 (a) Internal controls require that your organization “establish and maintain effective internal controls over the Federal award that provide reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.”
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Systems/Processes
Grant managers help the entire organization apply the regulations and Standards for Internal Control in the Federal Government is a part of that
Grant managers have a perspective that differs from, but compliments leadership and program management
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Useful tools for “systems” check:• http://
managementhelp.org/organizationalperformance/nonprofits/systems-checklist.htm
• http://www.gao.gov/assets/670/665712.pdf
• https://www.mango.org.uk/guide/healthcheck
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Regulatory Tools to help with managing
“chaos”
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OMB “Super Circular”
• Developed by the COFAR- Council on Financial Assistance Reform beginning in 2011
• COFAR established by Obama Administration with intention of enhancing transparency of Federal spending and advancing efforts to detect and remediate fraud, waste and abuse in Federal programs
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Super Circular…
• Incorporates OMB Circulars A-21, A-87, A-110, A-122, A-89, A-102, A-133 and A-50
• For states, tribes, colleges & universities, hospitals and non-profit organizations
• Applicable to Federal agencies 12/26/13; non-Federal entities 12/26/14
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“Super "Circular does/states…
The intent of the new guidelines is to do the following:
• consolidate existing regulations,
• streamline processes,
• harmonize rules and regulations that seemed contradictory; and,
• simplify.
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2 CFR 200
Two “new” regulations for easier grant-management:
1. Fixed Amount Award
2. Ten percent (10%) de minimus cost for indirect expenses
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2 CFR 200.201:
• Introduces the “new” awarding instrument: Fixed Amount Award(FAA)
• FAA require no governmental review of actual costs incurred before completion of the award
• FAA may be used if the project scope is specific and if adequate cost, historical, or unit pricing data is available to establish a fixed amount award with assurance that there will be no increment above actual cost
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• Introduces an option for applying a standard 10% of modified total direct costs to new awards to cover indirect expenses
• If used, it must be applied to all federal awards until the organization pursues a Negotiated Indirect Cost Rate Agreement (NICRA)
• Helpful for smaller organization with no NICRA and multiple awards
2 CFR 200.414:
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Regulatory tools to help manage chaosGrant management tools can drive solutions to chaos when used as a part of overall project management:
Regulations are sometimes the only solution
COFAR considered “real life” experiences of grant management professionals when drafting 2 CFR 200, so regulations may capture an organizational problem others have already conquered
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The union of Grant Management & Project
Management:
Action Hero Inspired “Solutions”
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Angelina Jolie Model: Be Adaptable
Address problems by:
Changing to meet the needs of the individual and circumstances
Remaining nimble in decision-making with limited inherit bureaucracy
Requires autonomy
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Vin Diesel Model: Strategy & Team Work
Address problems by:
Playing to the strengths of your team
Engaging multiple “voices” in decision making
Gathering facts and creating a plan before taking any action
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007 Model: Classic & Decisive
Address a problem by:
Making a decision and taking action. Period.
Requires unilateral authority
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Liam Neeson Model: “I have a particular set of skills”
Addresses a problem by:
Cultivating a level of expertise in one field
Creating a model based on acquired expertise
Consistently applying the model
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Which “action hero” could best resolve the “chaos” using which grant management tool?
Scenario 1:
For your small nonprofit organization, your newly hired program director has been asked to wear many hats. In addition to his/her project management duties, they also serve as a compliance officer, grants manager and H.R. director. After all, there are only five people on staff.
While reviewing your largest project’s financial records, the new program director notices that several payments have been directed to a member of your board of directors for sole source consulting services. There are no invoices, consulting contracts or even a statement of work to support the payment. How would you address this problem?
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“Action Hero” inspired solutions:
A. Be Adaptable
B. Apply Strategy & Teamwork
C. Be Classic & Decisive
D. Apply a particular set of skills
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Scenario 2:
One of your project managers has sent 15 emails in the past 24 hours because he/she is concerned about having enough money available for payroll. It seems that one of his/her funders did not send additional funds for completed program activities on a grant with established milestones. He/she is frantic and does not understand why the funder has not sent money for the completed activities. Now, he/she will need an advance to cover expenses for an upcoming training conference in addition to the money needed to cover payroll.
You pull the grant and financial records for the project. After reviewing everything, you note that the project never requested an additional obligation of funds including a request for an advance as permitted in the grant agreement. A programmatic report was submitted to the funder. But, a financial report showing that the first milestone was met, and requesting the tranche of funds for meeting the milestone, was not submitted. The grant agreement requires both for payment. How would you address this problem?
Which “action hero” could best resolve the “chaos” using which grant management tool?
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“Action Hero” inspired solutions:
A. Be Adaptable
B. Apply Strategy & Teamwork
C. Be Classic & Decisive
D. Apply a particular set of skills
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Need more information?
Feel free to email or Skype me:
• Skype: Atoundra
• Email: [email protected]
Thank you