HICAP & Title V Fiscal Connections

• Budgets/Closeouts• Reconciliations• Expenditures• Advances

• What’s New• Laws, Regs, Policy

Presenter:Vern Foster, Aging Programs Analyst IICalifornia Department of AgingVern.Foster @ aging.ca.gov(916) 928-2746

1

This Session Will Take You on a Scenic Ride Down the Fiscal Highway…

Our adventure includes stops at… The Fiscal Compliance Café (Ooooooooh…)

Budgets/Closeouts Reconciliations

Monthly Expenditures Advances

The Newsroom (Aaaaaaaah…)

What’s new at CDA

The Fiscal Library (Very Interesting…)

Applicable Laws, Regs, Policies for CDA’s programs

Our Road Map

Older Americans Act -2006 (OAA) – Title VOlder Californians Act (OCA) – HICAPCode of Federal Regulations (CFR) – Title VCDA Standard Agreement

Contract Terms and Conditions DPA Rules for Personnel and Travel

Program Memos (Policy)

More later…

Applicable Laws, Regs, Policy

BudgetIt’s Not Just a Budget… Identifies how all contract funds will be used Identifies all other local funds used Covers Compliance Checks (Laws, Regs, Policy)

5% Mental Health Duals Final Budget – Due April 30

Closeout Due August 15 Compliance Checks

5% Mental Health Duals Monitored Statewide

Show State Funds expended first (Use or lose) Reallocate Unspent Federal Allocations as OTO (Bud Rev 1)

HICAP Budget and Closeout Reporting

BudgetsAgain, It’s Not Just a Budget… Identifies All Funding Compliance Checks

Maximum AAA Admin – 8% of Total Federal Minimum PWFB – 79% Match – currently 11.82 of federal (10% plus 1.82% to cover State portion)

State Funds were removed from the Governor’s Budget Final Budget – Due April 30

Last opportunity to adjust budget Closeouts - Due July 30

Compliance Checks Same as the budget

Match Monitored statewide

Unspent Allocations returned to DOL

Title V Budget and Closeout Reporting

HICAP (CDA 245) Due the 30th of each month, submitted via email

Request For Funds (RFF) for future month (30 days ahead)

Expenditure Report for prior month (30 days prior) July Expenditures due August 30 October RFF due August 30

Title V (CDA 29) Due the 15th of each month, submitted via email

Request For Funds (RFF) for future month (15 days ahead)

Expenditure Report for prior month (15 days prior) Aug Expenditures due Sept 15 October RFF due Sept 15

Input expenditures before requesting funds (RFF)

Monthly Fiscal Reporting - Due Dates

Monthly Expenditure Reporting Report Actuals

County/City costs reported monthly Report all activities Report all funding used

Program Income Other Funds Match (Title V)

Report Timely Reconcile monthly

Adjust AAA records to reflect CDA adjustments Expenditure Reconciliations sheets (mailed monthly)

Compare Budget to Y-T-D Actuals before reporting

Monthly Fiscal Reporting

HICAP

HICAP Summary of ExpendituresFY: 2011/12

PSA 34

 

HICAP Reimb HICAP HICAP Fund HICAP HICAP Federal HICAP  

CDA 245 HICAP Reimb HICAP   Fund HICAP Federal CDA 245

Month Reimb Admin Total Fund Admin Total Federal Admin Total Total

July 12,167 559 12,726 8,480 550 9,030 0 0 0 21,756

August 11,513 1,209 12,722 8,500 1,000 9,500 0 0 0 22,222

September 12,522 623 13,145 8,500 500 9,000 0 0 0 22,145

October 12,692 596 13,288 7,500 500 8,000 0 0 0 21,288

November 12,760 513 13,273 6,000 539 6,539 0 0 0 19,812

December 5,187 1,096 6,283 15,883 0 15,883 0 0 0 22,166

January 12,188 1,141 13,329 0 0 0 6,818 0 6,818 20,147

February 19,394 442 19,836 0 0 0 0 655 655 20,491

March 11,262 0 11,262 0 0 0 8,694 1,146 9,840 21,102

April 0 0 0 0 0 0 21,856 1,131 22,987 22,987

May 0 0 0 0 0 0 22,176 1,117 23,293 23,293

June 0 0 0 0 0 0 32,097 1,203 33,300 33,300

Total Expended 109,685 6,179 115,864 54,863 3,089 57,952 91,641 5,252 96,893 270,709

Budget: Rev 1 109,740 6,179 115,919 54,863 3,089 57,952 100,298 9,094 109,392 283,263

Total Expended 109,685 6,179 115,864 54,863 3,089 57,952 91,641 5,252 96,893 270,709

Bal to be Expended 55 0 55 0 0 0 8,657 3,842 12,499 12,554

Percent Expended 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 91.4% 57.8% 88.6% 95.6%

Budget/12     9,660     4,829     9,116 23,605

Notice HICAP Reimb. & HICAP FundState funds spent 1st

HICAP Fed. last to be spent

1st three months – up to 1/12th per month for each funding source• Based on need• Recommend spending down State (Reimbursement and HICAP

Fund) before spending Federal (SHIP) dollars Beginning with the October Advance, RFF’s are

approved based on the Reconciliation process, which calculates both:Balance Available and Maximum Approvable The lesser of these amounts will be the maximum

that can be approved• The maximum approvable amount may be overridden with

appropriate justification

HICAP Request for Funds (RFF)

SUMMARY OF HICAP ADVANCES  HICAP     HICAP     HICAP Total

Month Reimb     Fund     Federal AdvancesUnearned Funds               0

July 9,659     4,829     0 14,488 August 9,659     4,829     0 14,488

September 9,659     4,829     0 14,488 October 15,268     12,750     0 28,018

November 13,350     14,850     0 28,200 December 13,900     15,865     0 29,765

January 14,424     0     0 14,424 February 17,500     0     0 17,500

March 12,500     0     0 12,500 April 0     0     3,000 3,000 May 0     0     7,742 7,742 June 0     0     48,500 48,500

June Suppl               0 Total Advanced 115,919     57,952     59,242 233,113

Advance 1/12   9,660     4,829     9,116  

HICAP Advance Requests

Notice that Advance pattern follows expenditure pattern

Federal expenses not reported until State is expended

Let’s look at the calculation!

Advance to Expenditure Reconciliation

HICAP Request for Fund/Expenditure Reconciliation with InstructionsMaximum Approvable Calculation

Example: RFF Month: APRIL (Due February 28)

FEDERAL FUNDS

AMOUNT REQUESTED 37,500

APPROVED REQUEST 35,053

CASH ON HAND CALCULATION

Description

Approved Thru Prior Month RFF YTD ADVANCES THRU MONTH OF MARCH 352,916 YTD Advances

As Reported by AAA YTD EXPEND THRU JANUARY ( - ) 258,646 less: YTD Expend

Advances - Expenditures CASH ON HAND   = 94,270 Actual AAA Cash on Hand

Average Monthly (from below) x 2 PROJECTED EXPEND MONTHS (2) FEBRUARY, MARCH ( - ) 73,899

less: Proj 2 months Expend

 

Actual Cash on Hand - Proj Expend ESTIMATED CASH BAL ON HAND ( = ) 20,371Projected AAA Cash on Hand

         

Available for April Expenses

MAXIMUM APPROVABLE ADVANCE CALCULATION

YTD Exp / months reported CALCULATED AVG MONTHLY EXP 258,646 divided by 7 36,949

Average monthly expenses

Calculate Max Cash Allowable 150% OF AVG MONTHLY EXP 36949 x 1.5 = 55,424

Max Cash on Hand Allowable

Less: Estimated Cash Bal on Hand EST CASH ON HAND   ( - ) 20,371 less: AAA Cash Balance 

Max Cash on Hand Allowable MAX APPROVABLE REQUEST* ( = ) 35,053 Maximum Cash AdvanceAfter Contract Balance Review * Subject to funding available

1st two months – up to 1/12th per month• Based on need

Beginning with the September Advance, RFF’s are approved based on the Reconciliation process, which calculates both:Balance Available and Maximum Approvable

The lesser of these amounts will be the maximum that can be approved• The maximum approvable amount may be overridden with

appropriate justification

Title V Request for Funds (RFF)

See next slide

Title V Reconciliation

Differs from HICAP and Area Plan – Only 1 month of projected expenses

Why?

Title V Request for Fund/Expenditure Reconciliation with InstructionsMaximum Approvable Calculation

Example: RFF Month: APRIL (Due March 15th)

AMOUNT REQUESTED 37,500

APPROVED REQUEST 0

CASH ON HAND CALCULATION

Description

Approved Thru Prior Month RFF YTD ADVANCES THRU MONTH OF MARCH 352,916 YTD Advances

As Reported by AAA YTD EXPEND THRU FEBRUARY ( - ) 258,646 less: YTD Expend

Advances - Expenditures CASH ON HAND   = 94,270 Actual AAA Cash on Hand

Average Monthly (from below) x 1 PROJECTED EXPEND MONTH MARCH ( - ) 32,331 less: Proj 1 month Expend 

Actual Cash on Hand - Proj Expend ESTIMATED CASH BAL ON HAND ( = ) 61,939

Projected AAA Cash on HandAvailable for April Expenses

         

MAXIMUM APPROVABLE ADVANCE CALCULATION

YTD Exp / months reported CALCULATED AVG MONTHLY EXP 258,646 divided by 8 32,331

Average monthly expenses

Calculate Max Cash Allowable 150% OF AVG MONTHLY EXP 32,331 x 1.5 = 48,497Max Cash on Hand Allowable

Less: Estimated Cash Bal on Hand EST CASH ON HAND   ( - ) 61,939

less: AAA Projected Cash Balance

 

Max Cash on Hand Allowable MAX APPROVABLE REQUEST* ( = ) -13,442 Maximum Cash AdvanceAfter Contract Balance Review * Subject to funding available

Only 1 Month Projected

We’re on the Home Stretch!

Stretch…….

Next Stop… What’s New with Fiscal?

Tightening of Expenditure/Contract spending More Federal scrutiny of all of our fiscal

processes, particularly Expenditure and Advance processes Over-Advancing (in excess of actual need) Underspending (Grants not fully expended)

More Fiscal Accountability◦ Fiscal Team will be returning questionable expenditure

postings and advance requests Under/Over budgeted amounts Under/Over advance

Tightening of Monthly reporting Timely reporting - monthly No more submitting 2-3 months at a time Late and sporadic AAA monthly reporting causes

inaccurate projections at the Statewide level

What’s New with Fiscal?

Total HICAP Contract

Monthly Closeout

Disbursed Add. Owed Owed to Grant Percent

PSA # thru June to AAA CDA Owed to AAA

1 259,488 259,488 0 11,367 0.00%

2 277,210 274,904 2,306 0 0.83%

3 283,263 233,113 35,180 0 12.42%

4 682,047 682,047 0 7,329 0.00%

6 378,065 187,749 185,075 0 48.95%

7 389,192 245,786 98,414 0 25.29%

8 315,735 269,035 12,230 0 3.87%

9 411,360 351,382 59,978 0 14.58%

10 568,562 391,191 66,586 0 11.71%

12 263,623 262,254 0 8,584 0.00%

13 264,876 239,859 25,017 0 9.44%

14 315,851 315,851 0 2,429 0.00%

15 279,324 221,939 44,706 0 16.01%

17 338,172 338,172 0 24,336 0.00%

18 303,247 251,536 30,005 1,061 9.89%

19 1,070,395 711,835 306,120 0 28.60%

20 409,520 272,436 131,239 0 32.05%

21 481,737 391,783 86,493 0 17.95%

22 628,603 628,603 0 37 0.00%

23 714,120 644,791 41,300 0 5.78%

25 753,671 653,095 23,050 0 3.06%

27 479,565 452,362 0 637 0.00%

30 281,312 281,312 0 0 0.00%

31 302,182 150,147 121,727 0 40.28%

32 279,531 258,452 21,079 0 7.54%

33 295,875 235,685 47,301 0 15.99%

Five AAA’s received between 25% and 50% of their HICAP grant funds after the contract period closed.

Contract Under-performinga AAA Fiscal Responsibility

FISCAL OFFICER will: Ensure contract funds are fully expended

Work with Administration and Program staff monthly Monitor AAA Direct and Provider Contract

Expect closer monitoring by CDA Program and Fiscal staff AAA’s will notice an increase in calls from CDA staff AAA’s that appear behind in their spending will be asked

to provide a plan for expending all funds

What’s New with Fiscal? Continued…

Total HICAP Unspent Percent

PSA Grant Funds 2011-12 Funds Unexpended

1 259,488 11,367 4.4%

2 277,210 0 0.0%

3 283,263 14,970 5.3%

4 682,047 7,329 1.1%

6 378,065 5,241 1.4%

7 389,192 44,992 11.6%

8 315,735 34,470 10.9%

9 411,360 0 0.0%

10 568,562 110,785 19.5%

12 263,623 9,953 3.8%

13 264,876 0 0.0%

14 315,851 2,429 0.8%

15 279,324 12,679 4.5%

17 338,172 24,336 7.2%

18 303,247 22,767 7.5%

19 1,070,395 52,440 4.9%

20 409,520 5,845 1.4%

21 481,737 3,461 0.7%

22 628,603 37 0.0%

23 714,120 28,029 3.9%

25 753,671 77,526 10.3%

27 479,565 27,840 5.8%

30 281,312 0 0.0%

31 302,182 30,308 10.0%

32 279,531 0 0.0%

33 295,875 12,889 4.4%

TOTAL 11,026,526

539,693 4.9%

AAA’s that have an unspent balance of HICAP Funds in excess of 5%

In the current fiscal climate: Funding is tight! Every government entity is under

increased scrutiny and accountability for funds. Federal Audit findings related to late pay out of funds State Controller is scrutinizing payment processes Unreconciled Advance Requests - Inability to make accurate

Expenditure and Cash projections Every year we have unspent funds we are showing

that we don’t have a need for the funding, therefore we increase the risk of losing Federal Funds

Potential loss of federal baseline dollars Potential loss of OTO Cannot justify asking for more HICAP dollars

Why?

CDA Contract Funded Property Reporting◦ $500 Limit has been established

PM forthcoming… AAA’s must track equipment with a cost of $500 or

more New CDA 32 (Property Form) New CDA 248 (Request to Dispose Form)

New CDA 248 Process to involve CDA Program and Fiscal staff

And More…What’s New with Fiscal? Continued…

Audit Findings – Provider Match

CDA Audits has found that many AAA’s have not been testing Provider Match

Provider Match must be tested by AAA. Immediately begin testing provider match

Can lead to disallowed costs if match is not verified Use risk-based approach to determine amount of

testing samples If audit of Match has never been performed – test

100% to establish risk CDA Audits will begin verifying and disallowing costs

associated with untested provider match• Contact CDA Audits for more information

And Finally… What’s New with Audits?

How are we doing?

How’s our Time? Do we have time for Laws, Regs, Policy?

Or are we ready for a Q & A period?

Older Americans Act - 2006 (OAA) Title V – Community Service Senior Opportunities Act

Section 502 – Admin Allocations , Non-Federal Share, PWFBAdministration Allocation - Not more than 13.5% of

federal allotment CDA 5.5% AAA Maximum - 8%

Overall Match =10% The Governors Budget removed all Title V funding AAA’s have agreed to pay the 10%, plus CDA’s Admin Match

share Current Match = 11.82

PWFB = 75 % Since CDA keeps 5.5% to Administer Title V, AAA’s PWFB

minimum increases to 79% AAA PWFB = 79%

Fiscal Library - What Requirements Drive What We Do?

Older Californians Act (OCA) – Enacted 1997◦ Established CBSP Programs

State funding removed from Governor’s Budget - 2009 CBSP Program funding eliminated Health Insurance Counseling and Advocacy Program (HICAP)

funding remains

What Requirements Drive What We Do? Continued…

Code of Federal Regulations (CFR) Title V Administrative Requirements

20CFR641 - Also Refers to: 45CFR74 – Non-Profits, Hospitals, Institutions of Higher

Education 45CFR92 – State and Local Governments

Primary areas covered

Standards for financial management systems Period of availability of funds Cost Classifications Match Allowable Costs Program Income Audit Requirements Programmatic Requirements

What Requirements Drive What We Do? Continued…

Cost Principles – Allowable Costs 20CFR641 – Title V Administration

Requirements Also Refers to:

2CFR220 - Institutions of Higher Education (OMB A-21) 2CFR225 - State and Local Governments (OMB A-87) 2CFR230 - Non-Profits (OMB A-122)

Primary areas covered Appendix A – General Principles

Allowability Reasonableness Allocating Costs

Appendix B - Selected Items of Cost (Costs Listing)

Code of Federal Regulations (CFR) Continued…

CDA Standard Agreement◦ Contract Terms and Conditions

DPA Rules - Personnel and Travel

Departmental Program Memos (Policy)◦ New Departmental Policies

What Requirements Drive What We Do? Continued…

Fiscal Compliance? Closeouts Budgets

Reconciliations?

Expenditures Advances

What’s New at CDA?

Laws, Regs, Policy?

Have we hit our target???

Thank You All For Coming!