the federal perspective
DESCRIPTION
National Association for State Community Services Programs 2011 Mid-Winter Training Conference. The Federal Perspective. FINANCIAL SYSTEM. Cash Management System. Procurement System. Budget System. Human Resources/ Payroll System. CORE FINANCIAL Cost Accounting Reporting. - PowerPoint PPT PresentationTRANSCRIPT
National Association for State Community Services Programs2011 Mid-Winter Training Conference
The Federal Perspective
National Association for State Community Services Programs 2011 Mid-Winter
Training Conference
National Association for State Community Services Programs2011 Mid-Winter Training Conference
FINANCIAL SYSTEM
2
Budget System
Cash Management
System
Procurement System
Human Resources/Payroll System
Travel System
Inventory Management
System
Contract Management
System
Property Management
System
CORE FINANCIAL- Cost Accounting- Reporting
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Budget System• Subgrantees Not Submitting an Annual Budget
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Cash Management System• Subgrantees given advances that exceeded
the cash needs of the program• Advances not put in interest bearing accounts• Subgrantees not provided cash advances
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Procurement System• Competitive process not used for procurement of
contractors• Cost analysis not done in the selection of the contractor• Bid/Proposal specifications inadequate or not written at
all• Cumbersome procurement procedures• Incomplete documentation of procurement activities• Lease/purchase analysis for equipment not performed
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Human Resources/Payroll System• Payroll information did not support that
employees were providing services to the program
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Travel System
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Inventory Management System• Inventory records do not track the point of
purchase to the installation of materials on the house
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Grant/Contract Management System• Contractors billed for labor charges that had not
been performed and materials that had not been installed
• Inadequate oversight of contractors• Inadequate documentation for contractor billing• Subgrantees not monitored to ensure compliance
with financial regulations• Evaluation of contractors not documented
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Property Management System• Subgrantees not performing a physical
reconciliation of equipment• Subgrantees not requesting permission to
purchase equipment prior to purchase• Equipment records do not include required
information
National Association for State Community Services Programs2011 Mid-Winter Training Conference
FOR PROFIT WEATHERIZATION SERVICESAgency Self Assessment• Does the organization have the skills needed to run a
for profit project?• Has the organization identified what help they will
need and where to get the help?• Do the staff have the time required to learn the things
that they need to know?• Does the organization have the money to hire the staff
and/or consultants needed?
National Association for State Community Services Programs2011 Mid-Winter Training Conference
FOR PROFIT WEATHERIZATION SERVICESAgency Self Assessment (cont.)• Is the organization interested in the proposed for profit
project?• Is the organization committed to the success of the for profit
project?• Is the organization willing to devote the time needed to
develop a successful for profit project?• Will the project fill an unmet need in the community or can
you do it better that the current businesses providing the goods/services?
National Association for State Community Services Programs2011 Mid-Winter Training Conference
FOR PROFIT WEATHERIZATION SERVICESAgency Self Assessment (cont.)
• Is there sufficient customer demand for the goods/services offered by the project?
• Will the organization be able to compete competitively?• Does the Board of Directors and Administration
understand financial statements such as cash flow, profit and loss, and balance sheets?
• Has the organization developed a comprehensive business plan?
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Business PlanningThe steps involved in developing a business plan include:STEP 1: Determine what is wanted from the venture,
recognizing the time and investment involved.
STEP 2: Survey the target-population you plan to serve to determine if the necessary volume required to produce the desired income is attainable
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Business Planning The steps involved in developing a business plan include: (cont)
STEP 3: Prepare a statement of assets to be used in the venture
STEP 4: Analyze estimated expenses in terms of fixed or variable nature and determine the break point
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Business Planning The steps involved in developing a business plan include: (cont)
STEP 5: Review the risks to which the organization is subject and methods with which these risks are going to be minimized
STEP 6: Establish an adequate system of accounting records
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Federal Regulations10 CFR 600.134 - Equipment“The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute, for as long as the Federal Government retains an interest in the equipment.” “User charges shall be treated as program income.”
National Association for State Community Services Programs2011 Mid-Winter Training Conference
Federal Regulations (cont.)
10 CFR 600.135 – Supplies and other expendible property“The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute, for as long as the Federal Government retains an interest in the supplies.” “User charges shall be treated as program income.”