Housing Opportunities for Persons with AIDS (HOPWA) Financial Management Training for HOPWA Grantees

paltryclewΔιαχείριση

9 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

510 εμφανίσεις




Housing Opportunities for
Persons with AIDS (HOPWA)
Financial Management Training
for HOPWA Grantees
March 2013
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Regulatory Standards................................................................................................................7
Purpose of Internal Controls...................................................................................................... 7
Basic Elements of an Internal Control System..........................................................................7
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Regulatory Standards................................................................................................................8
Purpose of Budget Controls ...................................................................................................... 8
Basic Elements of Budget Controls...........................................................................................9
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Regulatory Standards................................................................................................................9
Basic Elements of Accounting Records .................................................................................... 9
Basic Elements of Source Documentation..............................................................................10
Accounting Tools.....................................................................................................................11
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Allocating Direct Costs ............................................................................................................16
Allocating Indirect Costs..........................................................................................................17
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Create a Realistic Budget........................................................................................................29
Compare with Award Amount..................................................................................................31
Track the Budget.....................................................................................................................32
Covering Other Costs..............................................................................................................33
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Lease.......................................................................................................................................40
Utility Information.....................................................................................................................41
Rent Standard .........................................................................................................................42
Rent Reasonableness.............................................................................................................43
HOPWA Habitability Standards...............................................................................................43
Other Unit File Documents......................................................................................................44
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Annual Income.........................................................................................................................45
Documenting Income...............................................................................................................46
Income Inclusions and Exclusions ..........................................................................................46
Adjusted Income......................................................................................................................47
Resident Rent Contribution .....................................................................................................48
HOPWA Rental Subsidy Amount ............................................................................................50
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Attachment 6-1: Sample Utility Allowance Schedule ..............................................................55
Attachment 6-2a: Sample Authorization for the Release of Information/Privacy Act Notice...57
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Attachment 6-2b: Sample Document Package for Applicant's/Tenant's Consent to the 
Release Of Information............................................................................................................60
Attachment 6-3: Sample Income Limits Schedule
Attachment 6-6: Disallowance of Increase in Annual Income 
..................................................................67
Attachment 6-4: Sample Income and Resident Rent Calculation Worksheet.........................69
Attachment 6-5: Sample Zero Income Certification Form.......................................................77
(Earned Income Disregard).....................................................................................................79
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Attachment 7-2: HOPWA Financial Reporting Data Elements for
Attachment 7-3: HOPWA Financial Reporting Data Elements for
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Tenant Based Rental Assistance (TBRA)...............................................................................88
Facility-Based Housing............................................................................................................88
Short-Term Rent, Mortgage and Utility (STRMU) Assistance.................................................90
Permanent Housing Placement...............................................................................................91
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Supportive Services.................................................................................................................92
Housing Information Services .................................................................................................93
Resource Identification............................................................................................................93
Technical Assistance...............................................................................................................94
Administration..........................................................................................................................95
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Attachment 7-1: HOPWA Financial Reporting Data Elements................................................98
Supportive Services...............................................................................................................100
Leveraging and Program Income..........................................................................................101
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Project Sponsor Selection.....................................................................................................107
Post Award Orientation and Training ....................................................................................109
Submission of Financial Policies and Procedures ................................................................110
Sponsor Agreements as a Financial Management Compliance Tool...................................110
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Developing a Monitoring Plan ...............................................................................................112
Operational Plans: Risk Analysis ..........................................................................................112
Remote Monitoring................................................................................................................113
On-Site Monitoring.................................................................................................................114
Grant-based Tracking............................................................................................................116
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Module 1: Introduction

Module 2: Financial Management Standards
This module describes the financial management standards under 24 CFR Parts 85 and 84
pertaining to governments and nonprofits, respectively. These requirements address internal,
budget, and accounting controls. Collectively, these controls are established through policies
and procedures pertaining to staff with financial responsibilities; procedures for tracking,
reporting on, and obtaining revisions for the budget; and requirements for accounting records
and source documentation. This module also discusses procurement requirements

Module 3: Cost Principles
This module focuses on OMB requirements and industry standards related to costs — how
they are classified, what is required to be reimbursable, and how they are allocated. The
discussion on allocation addresses direct and indirect costs and provides essential
information for the discussion of allocating personnel and non-personnel costs in Modules 4
and 5.

Module 4: Financial Management of Personnel Costs
Personnel costs comprise primarily salaries and benefits. Reimbursement is based on time
spent working with HOPWA-eligible clients and engaged in HOPWA-eligible activities. This
module focuses on how to allocate personnel costs, particularly when staff works on activities
funded by different sources, and what documentation to retain in the files. The latter half of
this module has a section on budgeting personnel costs.

Module 5: Financial Management of Non-personnel Costs
As in Module 4, this module focuses on whether and how to allocate non-personnel costs to
the HOPWA grant, particularly when costs are shared across various funding sources. It also
provides guidance on considering whether to seek reimbursements under the HOPWA grant
for indirect costs.

Module 6: HOPWA Rental Assistance
This module discusses the financial management requirements related to HOPWA rental
subsidy payments. Throughout the module, a scenario about one 2-bedroom unit with a
three-person household is used to illustrate the components of this financial transaction and
highlight the documentation required to substantiate reimbursements.

Module 7: HOPWA Financial Reporting
All grantees are required annually to submit performance reports to HUD. Formula grantees
submit the Consolidated Annual Performance and Evaluation Report (CAPER); competitive
grantees submit the Annual Progress Report (APR). This module identifies the financial data
elements related to housing activities and other typical HOPWA activities.

Module 8: Auditing
An agency or organization will periodically undergo an audit of its financial systems and
controls. This module briefly describes basic information about what an audit is, typical audit
findings, and the clearance of findings.

Module 9: Training and Oversight of Project Sponsors
This module looks at the two sides of oversight — the training done by the grantee to aid
project sponsors prior to the start of activities and the subsequent monitoring of activities.
While remote and onsite monitoring is familiar to most grantees, less familiar perhaps is the
collaborative approach that grantees can take with project sponsors in developing financial
policies and procedures that will make it easier for them to achieve compliance.
Resource: In conjunction with this Financial Management training manual, another useful resource for
HOPWA grantees is the HOPWA Grantee Oversight Resource Guide. It provides grantees and project
sponsors with an understanding of the various Federal laws and regulations that govern the use of
HOPWA resources, while providing guidance and tools to conduct compliance reviews and identify
corrective actions, as needed. This resource is located in the OneCPD Resource Exchange Resource
Library at https://www.onecpd.info/
.
Financial Management Training Manual
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Module 2: Financial Management Standards
Having accurate and comprehensive documentation of expenditures is a regulatory requirement, but it
also a necessary part of an agency’s or organization’s operation. Modules 4, 5, and 6 further discuss
documentation as a necessary part of tracking personnel and non-personnel costs and calculating rental
assistance payments.
Accounting Tools
Fund accounting and cost accounting are essential tools for implementing appropriate accounting
controls.

Fund accounting is a method of recording financial information that groups resources into
funds based on their source and the use of those resources.

There are project sponsors that concurrently receive both HOPWA formula funds as well as
funds from a HOPWA competitive grant. The costs incurred by such an organization must be
properly allocated to each HOPWA grant. Any organization that operates programs that
receive multiple HOPWA grants or relies on a single HOPWA grant along with other distinct
funding sources (e.g. other public or private grant awards) needs to use fund accounting to
meet financial management requirements.
In fund accounting, each grant (fund source) is unique, has its own fund, its own chart of
accounts, and its own specific list of eligible activities. Incurred costs are only eligible for
Federal reimbursement when those costs are allocated to the specific grant based on proper
supporting documentation.
Fund accounting enables grantees to do the following:

Track sources and uses of each funding source, whether or not they are provided by
HUD

Analyze revenues and expenses associated with a specific funding source

Make a proper drawdown of funds by ensuring that the necessary information is readily
accessible
More information on fund accounting can be found in the Fund Accounting Clinic manual in
the OneCPD Resource Exchange Resource Library at https://www.onecpd.info/
. The Fund
Accounting Clinic manual was written for use with HUD Homeless programs. While the
specifics in this manual relate to the Supportive Housing Program, the basic fund accounting
principles in that document apply to the HOPWA program as well.

Cost Accounting is the process of tracking, recording, and analyzing individual costs
associated with an organization’s activities. Cost accounting is a critical tool that allows an
organization to determine the full cost of each of its activities by identifying each element of
cost contributing to the activity.
Cost accounting allows organizations to turn financial data into knowledge that is useful for
the following:

Understanding what it actually costs to deliver an activity

Tracking the adherence of the activity to its budgeted cost

Setting clear fundraising goals needed to ensure continuation of the activity

Evaluating the cost effectiveness of existing activities

Evaluating the cost of expanding a program or savings that come with reducing an
activity
Financial Management Training Manual
11
Module 2: Financial Management Standards
More information on cost accounting can be found in the OneCPD Resource Exchange
Resource Library at https://www.onecpd.info/
.

Case Management Activities and Cost Accounting
For example, the full cost of providing case management services to a
HOPWA client would include a number of cost categories in addition to the
case manager’s salary. Among the others costs are additional elements of
compensation (fringe benefits, retirement contributions, and other
authorized personnel costs); related costs of space, support staff, and
supervision; and organizational costs such as accounting and human
resources.

PROCUREMENT
HUD standards for procurements can be found in 24 CFR 85.36, which applies to government entities,
and in 24 CFR 84.40-84.48, which applies to nonprofits. Procurement requirements fall essentially into
two categories — “small purchases” and substantial goods, services, and property.
Most project sponsors use grant funds to procure “small purchases,” such as office equipment or janitorial
services, which do not exceed the small purchase acquisition threshold of $100,000 (41 U.S.C. 403(11)).
(Be aware that there may be a lower threshold for small purchases under the provisions of applicable
State or local law or as a contractual provision.) These purchases require fairly simple procurement
procedures and documentation. The organization needs to obtain and compare price or rate quotations
from more than one qualified source, such as a service provider or supply catalog. It is important to refer
to 24 CFR 85.36 to discern when a sealed bid competition is required and when a non-competitive
procurement is acceptable.
For more substantial contracts for services or goods, procurement procedures must follow more rigorous
standards. For example, grantees (and sponsors) need to adhere to requirements for procurement
methods such as competitive and non-competitive bids. They need to include various contract provisions
such as compliance with equal employment opportunity requirements, termination for cause, reporting
requirements, etc. They also need to determine whether bidders are on the Federal list of parties that are
barred from receiving Federal funds, and they are not allowed to enter into contract agreements that are
considered “cost plus” contracts.

State and Local Procurement Requirements
HUD grantees may use their own procurement procedures that reflect
applicable State and local laws and regulations, provided the procurements
meet at least the Federal threshold. In these cases, it is important to
remember that States and localities often have adopted procurement
procedures that are stricter than those outlined in Part 85. The guiding
principle is that the strictest rule applies.
For example, if your jurisdiction has adopted a policy to require formal
procurement for goods and services over $20,000, even though Part 85
only requires formal bidding for goods and services over $100,000, your
jurisdiction must comply with the $20,000 threshold.

For either small purchases or more substantial procurements, sponsors and grantees must have written
policies and procedures that describe how their organizations (or agencies) will procure goods and
12
Financial Management Training Manual

 

    

    
   
   
     

 

 

   
 
  
  



 

 
 


 
      
 
 
  
  
    
  

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Module 2: Financial Management Standards
Federal Funding Accountability and Transparency Act (FFATA)
The Federal Funding Accountability and Transparency Act (FFATA), as
amended, requires the Office of Management and Budget (OMB) to
maintain a single, searchable website that contains information on all
Federal spending awards.
Federal awards include grants, subgrants, loans, awards, cooperative
agreements and other forms of financial assistance as well as contracts,
subcontracts, purchase orders, task orders, and delivery orders.
The FFATA requires grantees to report information on first-tier subawards
that obligate $25,000 or more in Federal funds; the information will include
executive compensation under only those awards.
For more information see:

The Federal Register notice on the Requirements for Federal
Funding Accountability and Transparency Act Implementation by
OMB on September 14, 2010:
http://www.federalregister.gov/articles/2010/09/14/2010-
22705/requirements-for-federal-funding-accountability-and-
transparency-act-implementation#h-25


The FFATA Portal: http://www.ffata.org/ffata/ffataportal.html

FFATA Sub-award Reporting System: https://www.fsrs.gov/


Federal Spending Transparency: http://www.usaspending.gov/


14
Financial Management Training Manual
 

 
  








  
  
     



    
 

  
 

   
 
    
   
  
      


      

 



 
 
 
 
 



 

   




 
  
  
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