Advancing Accountability

Transcription

1 Advancing Accountability BEST PRACTICES IN CONTRACT AND GRANT MANAGEMENT FLORIDA DEPARTMENT OF FINANCIAL SERVICES 1 Intro & Housekeeping Introduction of instructors Housekeeping Class history Class material Icebreaker 2 1

2 Agenda Overview Agreement Manager Duties Planning Procurement Cost Analysis Transparency Initiative Agreements Setting Performance Expectation Monitoring Payments Closeouts 3 What to Expect End by 4:30pm Assessment (25 questions) Evaluations Class breaks 4 2

3 Overview 5 Objectives Identify powers and responsibilities of the CFO Identify the mission of the Bureau of Auditing Identify audits the Bureau of Auditing performs 6 3

4 Scope of CFO Authority Settle all claims against the state Examine disbursements made out of the state treasury F.S. 7 Scope of CFO Authority & F.S. Comptrollers Memo #8 ( ) 8 4

5 Delegation of Duties CFO Division of Accounting and Auditing Bureau of Auditing 9 BOA Mission Provide reasonable assurance to the taxpayers of Florida that funds disbursed from the state treasury are valid obligations of the State and are in general compliance with state statutes and rules. 10 5

6 Bureau Functions Bureau of Auditing Payment Processing Management Review Training Other Post Audits 11 Type of Audits Contract Reviews Expanded Audits of Payment Contract Management Reviews Pre Audits 12 6

7 Applicability of Information Information applies to all agreement types all disbursements from the state treasury regardless of funding source The more restrictive guidance generally applies when discrepancies exist. 13 Definitions 14 7

8 Authorizing Documents 15 State Financial Assistance State resources, not including federal financial assistance and state matching on federal programs, provided to a non state entity to carry out a state project F.S. 16 8

9 Each Grant is Unique Go to funding source for specific information F.S. 17 Inclusive Term Agreement Contracts Grants 18 9

10 Vendor or Recipient 19 You May Have a Recipient If Provider is making programmatic decisions is receiving federal or state financial assistance has a match requirement See instructors about signing up for Florida Single Audit Act training 20 10

11 Inclusive Term Provider Vendor Recipient 21 Agreement Manager Duties 22 11

12 Objectives Identify legally required duties of contract and grant managers 23 Agreement Manager Duties & F.S. CFO memo #

13 Additional Grant Manager Duties F.S. Verify all funds received against funds expended Recuperate unexpended/unobligated funds Recover un allowed expenditures Produce final reconciliation report 25 Training Requirements 26 13

14 Planning 27 Objectives Name the five steps of planning 28 14

15 Planning Considerations Business need/public purpose Agency/program authority Budget Time available for procurement Projected value of needed services Type of procurement needed 29 Planning 5 Steps 1. Define goals and objectives 2. Review prior information 3. Specify tasks 4. Identify funding source 5. Determine payment method 30 15

16 1. Define Goals & Objectives Consider Agency mission Program goals Current and long term needs Review Prior Information Sources Similar contract for similar services Another agency s contract for similar services Prior contracts with same vendor Information to review Quality of services received Provider performance Cost of services Schedule of milestones 32 16

17 3. Specify Tasks Identify the specific tasks to be achieved Posted on solicitations Foundation of developing scope of work and performance standards for the contract Identify Funding Source Questions to answer Is there an appropriation for the purchase? What restrictions are tied to the use of the funds? Are the funds state financial assistance? What are allowable and unallowable activities? Will the provider be considered a vendor or recipient? 34 17

18 Florida GAA 365 SPECIAL CATEGORIES GRANTS AND AIDS CONTRACTED SERVICES FROM GENERAL REVENUE FUND ,176,801 FROM FEDERAL GRANTS TRUST FUND ,708,995 FROM WELFARE TRANSITION TRUST FUND ,494 From the funds in Specific Appropriation 365, the nonrecurring sum of $100,000 from the General Revenue Fund is provided to the Comprehensive Emergency Services Center in Tallahassee for direct and preventative services to the homeless, or to those at risk of becoming homeless Determine Payment Methods Fixed Price Single amount paid upon completion of specified tasks Fixed Rate Cost per unit of commodity or service Cost Reimbursement Reimburse for undetermined final cost *Not to exceed limit applies A combination of multiple payment methods can be used when appropriate 36 18

19 Procurement 37 Objectives Identify the types of purchases Describe the three methods of competitive procurement Define the difference between competitive and non competitive awards 38 19

20 Type of Purchases Emergency Exceptional Competitive F.S. 39 Competitive Procurements Invitation to Bid (ITB) Price Request for Proposal (RFP) Price & Quality Invitation to Negotiate (ITN) Best Value F.S

21 Noncompetitive Awards Sole source Line item appropriation Exempt services* Grants not awarded via section , F.S. ITB, RFP, ITN with only one responsive vendor * F.S. 41 Cost Analysis 42 21

22 Objectives Recognize when to perform a cost analysis Identify the criteria for conducting a cost analysis Discuss the factors to consider when performing a cost analysis 43 Cost Analysis Review detailed budget Make determinations Allowable Reasonable Necessary Allocable , F.S. CFO Memo # Maintain record of decisions and supporting documentation 44 22

23 Cost Analysis Performed before contract execution Performed by the state agency Supporting documentation, signed and filed Completed on approved form 45 Cost Analysis Triggers LEGALLY REQUIRED Non competitive awarding of funds Sole source Exempt Line item appropriations Single response to a competitive procurement BEST PRACTICE Competitively procured agreements that are with recipients reimburse costs , F.S. CFO Memo #

24 Cost Analysis Factors Allowable Necessary Evaluation Criteria Reasonable Allocation 47 Cost Analysis Factors Allowable Authorized by state or federal laws and rules Reasonable Evaluation Criteria Necessary Allocation Expressed or Implied Statutory Authority Attorney General Opinion

25 Legal Authority State Level Florida Statutes Florida Administrative Code Reference Guide for State Expenditures Catalog of State Financial Assistance Federal Level Catalog of Federal Domestic Assistance 2 CFR part Cost Analysis factors Allowable Evaluation Criteria Necessary Required for program success Reasonable Allocation 50 25

26 Cost Analysis Factors Allowable What a prudent business would pay Reasonable Evaluation Criteria Necessary Allocation 51 Cost Analysis Factors Allowable Reasonable Evaluation Criteria Necessary Obligation is proportionate to benefit Allocation 52 26

27 Supporting Documentation Examples W2 forms Payroll forms Leasing agreements Cost allocation plan 53 Cost Analysis Activity 54 27

28 Scenario 55 Cost Analysis Triggers LEGALLY REQUIRED Non competitive awarding of funds Sole source Exempt Line item appropriations Single response to a competitive procurement BEST PRACTICE Competitively procured agreements that are with recipients reimburse costs , F.S. CFO Memo #

29 Transparency Initiative 57 Objectives Identify legal requirements for using the FACTS system 58 29

30 Purpose Fulfills legislative mandate Track state contracts/grants Public access (14) F.S. 59 Each state agency* All Agreements Original and amendments AA Memo No *Unless exempted (14)(i), F.S. Scope 60 30

31 Requirements 30 days to upload Most up to date and accurate information Redact confidential or exempt information 61 Tour of Transparency Florida 62 31

32 Agreements 63 Objectives Identify required elements in a contract and/or grant Identify requirements of contract amendments 64 32

33 Agreement Purpose Establish relationship Legal basis Set performance expectation 65 Required Elements Scope of Work All tasks and services to be completed by the provider Deliverables Quantifiable, verifiable & measurable units of work completion required to trigger payment Financial Consequences A reduction of payment for nonperformance or noncompliance & , F.S

34 Other Legal Requirements CONTRACTS Sufficient information to audit bills and fees Travel to be in accordance with Unilateral cancellation for refusal to allow public access to records A specified final date for completion of services Renewal language 3 years or original agreement term The addressing of property rights Any obligation to pay is contingent upon appropriation , F.S. 67 Other Legal Requirements GRANTS Any balance of unobligated funds must be refunded to the state Any funds paid in excess of amount entitled to recipient must be refunded Inclusion of standard audit language , F.S

35 Changes to Agreement Change Deliverables Funding Changes Service Location Change Contract Amendment 69 Changes to Agreement No retroactive changes All parties must approve in writing Cannot change the scope of work 70 35

36 Changes to Agreement Renewals Extension Longer of 3 years or original term Prohibited on single source and emergency Up to 6 months Additional only if beyond provider s control Assignment Only with prior agency approval 71 Compensation Changes More tasks More clients More labor/ materials Fewer tasks Fewer clients Fewer labor/materials 72 36

37 Payment Terms Identify the specific information to be included on each invoice. Identify the documentation required to accompany each invoice and the format in which it is to be submitted. Identify timelines for invoice submission and approval and deadline for final payment. Identify advanced payment guidelines. Rule 69I , F.A.C. 73 Reporting Establish frequency requirements Include content requirements in the agreement Provide a format Require documentation to support information 74 37

38 Setting Performance Expectation THE BIG THREE 75 Objectives Identify the elements of an effective scope of work Amend a scope of work task with qualitative and quantitative standards Identify the elements of a good deliverable Identify difference between a deliverable and documentation 76 38

39 The Big Three Financial Consequences Deliverables Scope of Work 77 Scope of Work Answers What Specific tasks/services need to be completed Documentation is required to be maintained 78 39

40 Scope of Work Clear Specific Complete Effective Language 79 Vague Scope Career counseling will be provided

41 Scope of Work Answers Who Who is going to provide/receive services? Identifies staffing levels, qualifications, responsibilities, and documentation requirements. How The manner in which activities will be performed Any applicable standards, procedures, laws and rules Qualitative standards Scope of Work Answers When When will services take place? Identifies agreement period. Identifies due dates. Where Where will the services be performed? Qualitative standards 41

42 Quantitative Standards How much/many? How many people/clients need to be served? How much service is each client to receive? How often? How frequently will services be provided? Quantitative standards are not always applicable 83 Documentation Specify documentation to be maintained to evidence work completed to accompany deliverables for audits and monitoring 84 42

43 Your Turn Career counseling will be provided. 85 This slide intentionally left blank 86 43

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46 This slide intentionally left blank 91 Slippery Scopes Causes Ambiguous language Passive language Lack of detail Effects Inability to enforce compliance Ineffective monitoring 92 46

47 Deliverables Are quantifiable, measurable & verifiable Trigger payment Measure performance Track progress 93 Measurable Units of Service Tasks Recurring Projects As Needed Each Bundle Weekly Monthly Quarterly Yearly Milestones Phases Hourly Client 94 47

48 Deliverable Attributes Related to Scope of Work Identifies o tasks, services and/or milestones o performance criteria o records to be used for verification o due date for completion o payment amount 95 Submission Requirements Delivery address Invoice requirements Rule 69I , F.A.C. Submission deadline 96 48

49 Deliverables vs. Documentation DELIVERABLE May be intangible What we re paying for DOCUMENTATION Tangible Evidences what we re paying for 97 Detonating Deliverables Performance requirements that do not coincide with payment period Quantitative minimums beyond provider s control Progress reports as deliverables 98 49

50 Deliverable Example Measurable unit Required tasks Performance criteria Documentation Completion due date Payment amount Submission requirements Each session A counseling session provided to an eligible XYZ High School senior in accordance with Scope of Work 45 minute minimum One on one ratio Eligible XYZ High School senior Certified counselor Career counseling in accordance with Attachment A Sign in sheets Last day of grading period $300 each session Send to agency by 15 th of the month following completion. Invoice must meet requirements of 69I , F.A.C. 99 How Much Do We Pay? State asked for State received Task 3 Task 3 State pays? Task 1 Task 2 Task 2 Task 3 Task 1 Task 1 Task 2 Task 2 Task 3 Task

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52 How Much Do We Pay? State asked for State received State pays? 103 This slide intentionally left blank

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54 Financial Consequences $50 $ Financial Consequences Allows state to pay for partially completed services Applicable for non performance/compliance Not a termination clause

55 Financial Consequence Example Payment will be reduced by $100 for each session less than 45 minutes in length. Payment will be reduced by $200 for each session less than 30 minutes in length. Payment will be reduced by $300 for each session lasting less than 15 minutes in length. There will be no payment for any session that doesn t provide the career counseling outlined in Attachment A 109 Monitoring

56 Objectives Define programmatic and fiscal monitoring Name monitoring activities Identify elements of a monitoring plan Name possible risk assessment factors 111 Ensure provider performance Enforce terms and conditions

57 Who s Responsible? 113 Where Can You Monitor?

58 Monitoring Fiscal Programmatic 115 Programmatic Monitoring Compliance with all terms and conditions of the agreement, laws, and rules Completion of all services identified in the scope of work Achievement of deliverables Achievement of program goals Sufficient documentation of work completion

59 Fiscal Monitoring Proper accounting of funds documentation of expenditures Allowable expenditures and use of funds Compliance with budget Compliance with match/cost sharing requirements Cash management of advanced payment 117 Monitoring Activities Provider Reports Audit Reports Invoice Reviews Desk and/or Onsite File Reviews Client Surveys Use source documentation for adequate verification

60 Monitoring procedures Agency may conduct periodic monitoring due to large volume of agreements must document their procedure in writing activities must provide reasonable assurance that deliverables have been met CFO Memo No Risk Assessment Evaluate agreements to determine risk Potential Factors Dollar amount Complexity of services Length of contract Funding source Provider experience Past performance

61 Risk Assessment Contract #1 Contract #2 $10,000, $10, years 1 year Federally funded Medical services to seniors General revenue Moving furniture for the state 30 years experience 1 st year provider 121 Monitoring Plan Type of monitoring (programmatic/fiscal) Monitoring activities Sampling procedures Required documentation How and to whom results will be communicated

62 Monitoring Plan Low Risk Medium Risk High Risk Annual desk monitoring Review monthly invoice processing with budget quarterly reports, and audit report Quarterly desk monitoring Selective deliverable review (with documentation to evidence work completed) audit report review Annual on site review Selective deliverable review (with documentation to evidence work completed), Audit report review Monthly expenditures review 123 Monitoring Tool Formally documents the monitoring activity. Identifies the criteria used to assess the provider s performance and compliance. Should include requirements that are critical to your project s success. Is customized based on the agreement requirements

63 Criteria Criteria Met? Comments Provider licensed yes / no Performance bond current and on file yes / no Annual inventory of equipment complete Provider meets minimal educational requirements Background checks of staff complete Provider holds general staff meetings biweekly Annual CPA audit complete and submitted to Department yes / no yes / no yes / no yes / no yes / no 125 Documentation For adequate verification review source documentation that is Sufficient Reliable Relevant

64 Record Results Record communication with provider Keep record of s and all reports File monitoring tool and supporting documentation 127 Other Monitoring Considerations Sampling Reporting results Corrective action plan

65 Contract File 129 Contract File Original signed contract Renewals Extensions Amendments Bonds Insurance * For example purpose only

66 Contract File Budget authorization Invoices Invoice tracking sheets Contract Summary Form Copies of receipts Verification documents * For example purpose only 131 Contract File Risk assessment Monitoring tool Supporting documentation Corrective action plan Provider reports * For example purpose only

67 Contract File s Letters Meeting minutes Summary of phone conversations * For example purpose only 133 Payments

68 Objectives Identify invoice requirements 135 Payment Process Agency and provider enter into an executed agreement Provider completes the work required in the deliverable Provider submits invoice and supporting documentation Agency receives, inspects and approves. Submits to CFO DFS performs pre audits

69 Systems 137 Payment Requirements Authorizing document in FACTS Written certification Supporting documentation Accurate and complete invoice Contract Summary Form Advanced payment approval (if applicable) Rule 69I , F.A.C

70 Invoice Requirement Dates Invoice date Service dates Service description Vendor name and address Agency name and address Unit quantity and rate Total amount Signature Rule 69I , F.A.C. 139 Payment Verification Review invoices for accuracy and completeness Verify that any required supporting documentation has been submitted Review documentation to gain reasonable assurance that services have been satisfactorily provided Approve invoice after all other steps have been satisfactorily completed

71 Compare invoice with agreement Verify obilling unit, rate and price align with the agreement oservice description supports contracted activities oexpenditures are allowable by the agreement 141 Review Invoice

72 Reason for Return of Payment FY Other supporting documentation/justification needed Payment not in accordance with agreement/contract Summary Form Incorrect object code Invoice not submitted Agreement record missing/incomplete in FACTS Agreement/Contract Summary Form not submitted 143 Reason for Return of Payment FY Services acknowledgement not documented Travel not in accordance with , F.S. Unit and/or unit price not shown Advance payment authority not cited/submitted

73 Payment Verification Returned Payments FY Total dollar amount of return payments: Fiscal Year $924,270, Closeouts

74 Objectives Identify close out activities 147 Closeouts Ensure all requirements have been met Account for all funds Information for future agreements Expiration of contract Depletion of funding Termination of agreement

75 Closeouts PROGRAMMATIC Compliance requirements Reports Receipt of deliverables Un assessed financial consequences Documentation FISCAL Cost reconciliation Match requirements Disposition of property Paid to date Stayed within budget 149 Resources Division of Accounting & Auditing website Audit Reports Reference Guide for State Expenditures Chief Financial Officer Memoranda Agency Addressed Memoranda Facts User Manual

76 Other Classes Contract and Grant Monitoring Florida Single Audit Act Advancing Accountability for Providers Florida Certified Contract Manager 151 Assessment & Evaluation

77 Thank You! Please contact our training team if you have any questions. (850)