AMERICORPS 101

The CNCS

• The Corporation for National and Community Service (NCS), a federal agency, was established in 1993 to engage Americans of all ages and backgrounds in results-driven community-based service

• The CNCS oversees AmeriCorps, Learn & Serve, and Senior Corps

AmeriCorps

• AmeriCorps, “the domestic Peace Corps”, is a CNCS program that engages Americans or all ages and backgrounds in team-based, results-driven service in the priority areas of: education, public safety, environment, homeland security, or other human needs.

• AmeriCorps programs provide full- and part-time opportunities for participants, called members, to provide service to their communities through community organizations and agencies.

AmeriCorps

• AmeriCorps members receive a living allowance and an education award for post-secondary education expenses

• AmeriCorps is one of the most complex federal programs!

MCSC

• The Missouri Community Service Commission (MCSC) was created by the Missouri Legislature in 1994 in response to the National and Community Service Act passed by Congress the previous year.

• The MCSC serves as the administrator for AmeriCorps*State funding in Missouri by awarding monetary grants and providing technical assistance and support

AmeriCorps Responsibilities

• Plan and implement an effective program• Develop an effective budget and manage

expenditures according to the budget• Understand and follow all of the federal grant

requirements• Track accomplishments and expenditures and

report on them on time

CNCS Federal Grant Requirements

• OMB Circulars• Code of Federal Regulations• AmeriCorps Provisions• Grant Agreement• Grant application

OMB

• The Office of Management and Budget (OMB) oversees and coordinates the Federal government’s administration procurement, financial management information, and regulatory policies.

• Cost Principles: Applicable Code of Federal Regulations (CFR) and OMB Circulars can be found at:

• http:///www.whitehouse/gov.omb/circulars/index.html

Cost Principles

• General Rules are that costs are allowable if they are:– Necessary and reasonable for the

completion of the project,– Verifiable through records,– Not counted as match on other federal

programs,– Allocable to the grant,

Cost Principles

– Not paid by other federal funds (unless approved by the statute),

– Provided for in the approved budget, and – Conform to other provisions of the financial

management circulars

AmeriCorps Match Requirements

Years 1-3: 24%Year 4: 26%Year 5: 30%Year 6: 34%Year 7: 38%Year 8: 42%Year 9: 46%Year 10: 50%

Financial Reporting

• MCSC requires two types of Financial Reporting– 1. Monthly = PER– 2. Quarterly = AFR

Monthly Reporting

• Periodic Expense Report (PER) tracks all AmeriCorps related expenditures by budget category– Federal Funding– Match Funding

• PER Essentials– Due to MCSC by 15th of each month– If 15th is on a weekend = due the Monday after the 15th

– Report on cash basis – not accrual– Submit in OnCorps

Quarterly Reporting

• AFR tracks all AmeriCorps related in summary totals– Federal Funding– Match Funding

• AFR Essentials– Due to MCSC by end of month after quarter ends– Submit in OnCorps

AFR and OnCorps

• How are AFRs in OnCorps created?– PERs must be created before the

quarterly AFR reports can be generated

– AFRs in OnCorps automatically add up all the data in the PERs for that quarter

Section 1. Program Costs

• A. Personnel Costs– Salary

• Signed timesheets with supervisory approval

• Payroll register

Staff Activity Reporting Summary

• ALL salaries and wages charged to AmeriCorps grants must be supported by signed Time & Attendance records except for:– State, Local and Indian Tribal governments

must comply with OMB A-87– Educational Institutions must comply with

OMB A-21

I. B. Personal Fringe Benefits

• Benefits- For budget there is an estimate calculated, however, you must have supporting documentation for amounts charged to grants– Insurance receipts– Cost allocation plan– Paid invoices

1. C.1 Staff Travel or C.2. Member Travel

• Travel– Travel authorization– Paid travel-related receipts/invoices– Mileage calculation– Travel reimbursement requests

D. Equipment

• Not applicable

E. Supplies

• Paid invoices/receipts that clearly shows amounts

F. Contractual and Consulting

• Payments to consultants services under this grant may not exceed $540 per day (exclusive of indirect expenses, travel and supplies)

• Program should retain consulting contract and invoices that support work provided

G.1. Staff or G.2 Member Training

• Training documentation– Training agenda– Course description and cost– Sign in-sheet– Consultant/Trainer agreement– Paid invoices

H. Evaluation

• Consultant agreement• Paid invoices• Evaluation results• Other relevant documentation

Section II. Member Costs

• A. Living Allowance• B. Benefits

Eligible Member

• U.S. Citizen• U.S. national or lawful permanent resident alien of the

United States• At least 17 years of age at commencement of service

– Unless the member is enrolled in a full-time youth corps or summer corps program – or-

– Has a high school diploma or an equivalency certificate or agrees to obtain one prior to using the education award

Living Allowance

• To the extent that living allowances constitute “compensation for services,” they are taxable under the Internal Revenue Code and are subject to withholding just as if they were wages paid to employees. Living allowances are a form of income and thus are subject to federal income tax. The definition of “wages” used is broad enough to include “living allowance.”

Living Allowance

• Unless the program has obtained a special AmeriCorps exemption from FICA requirements, it will be responsible for collecting and/or withholding both employer and employee portions of FICA from the living allowance of its members.

Living Allowance

• Maximum living allowance to be paid with all sources is $23,600 for full-time members

• The minimum living allowance for the 2010-2011 program year is $11,800

• No living allowance is required for part-time members, however, if one is provided, it should be based on the full-time rate and pro-rated

• A living allowance IS NOT a wage!

Living Allowance

• Living allowances MUST be paid in equal installments during the term of service

• Living allowance MUST NOT be based on hours served

• Living allowances ARE subject to local, state and federal income tax requirements

Living Allowances

• If a member serves all required hours and is permitted to conclude his/her term of service before the originally agreed upon end of term, the grantee MAY NOT provide a lump sum payment to the member

• If a member is selected after the program’s start date, the grantee must provide regular living allowance payments from the member’s start date and MAY NOT increase the member’s living allowance incremental payment or provide a lump sum to make up any missed payments!

Living Allowance (Taxes & Insurance

• 45 CFR 2522.240 & 2522.250• Programs must follow these procedures:

– Liability Insurance Coverage• Programs are responsible for ensuring adequate general

liability coverage for the organization, employees, and members, including coverage of members engaged in on- and off-site project activities

– FICA (Social Security and Medicare Taxes)• Unless the program obtains a ruling from the Social Security

Administration or from the IRS that specifically exempts its AmeriCorps members from FICA requirements, the program must pay FICA for any member receiving a living allowance

•

Living Allowance (Taxes and Insurance)

• Income Taxes• The program must withhold Federal

Personal Income Taxes from a member’s living allowance and must require each member to complete a W-4 form at the beginning of the term of service and provide a W-2 form to the member at the end of the year. The program must comply with any applicable state or local tax requirements.

Living Allowance (Worker’s Compensation)

• Programs must pay if it is required by state law

• If not required, programs must obtain occupational, accident, death and dismemberment coverage

• Programs should also review liability coverage to determine if additional coverage is needed based on operation of an AmeriCorps program

Health Care for Full-Time Members

• All full-time AmeriCorps Members must be enrolled in an acceptable health insurance plan

• Grant funds may be used to pay health insurance

• You cannot deduct the cost of health insurance from the member’s living allowance.

Health Care for Full-Time Members

• A waiver must be signed by the member if they choose not to carry the insurance and be maintained in the member file.

• If a member is covered under an existing plan and therefore ineligible, a signed waiver must be maintained in the member’s file.

Child Care

• Child care must be made available to any full-time member who is eligible and in need of child care– Need defined:

• Total family income less than 75% of State Median Income – or – as defined by the State under CCDBG guidelines

• Member must reside with the state• Child must be under the age of 13 years old

Education Awards

• Members must complete hours to earn the award

• Pro-rated awards are only allowed under compelling personal circumstances – taking a job or returning to school are NOT compelling personal circumstances

Education Awards

• Have written documentation in the Member’s file why the Member was exited for compelling personal circumstances (request from Member & Dr.’s letter)

• If an audit finding, CNCS will stop the Education Award. If the award has already been used, CNCS will find the program liable for the amount

Education Awards

• Hours do not count towards service until Member contract is signed

Section III. Administrative Costs

• Option A – Organization using the Corporation Fixed Percentage Method– Indirect costs that can be recovered from

CNCS can be up to 5% of total Corporation share, and match in grantee share cannot exceed 10% of total direct costs

– These rates can be used without supporting documentation

Administrative Costs

• General expenses related to the overall administration of an organization that receives CNCS funds. Includes:– Accounting, financial, auditing, contracting

or general legal services– Internal evaluations (except for programs)– General liability insurance that protect the

organization (Not solely related to a program)