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AdvancingAccountabilityFor Recipients and Sub-RecipientsBEST PRACTICES IN CONTRACT AND GRANTMANAGEMENTFLORIDA DEPARTMENT OF FINANCIAL SERVICES1
Overview2
Scope of CFO Authority Settle all claims against the state Examine disbursements made out of the state treasury§ 17.03 F.S.3
Scope of CFO Authority§ 17.03 & 215.42 ault.htm4
Shared ResponsibilitiesCFODivision ofAccountingand AuditingBureau ofAuditing5
BOA MissionProvide reasonable assurance to the taxpayersof Florida that funds disbursed from the statetreasury are valid obligations of the State andare in general compliance with state statutesand rules.6
Type of ndedAudits ofPaymentPre-Audits7
Key Elements of Accountability Knowing and understanding theresponsibilities/obligations that exist Fiscal Programmatic Accepting the Responsibilities Demonstrating performance8
Definitions9
Authorizing Documents10
State Financial AssistanceState resources, not including federal financialassistance and state matching on federal programs,provided to a non-state entity to carry out a stateproject.§ 215.97 F.S.11
Inclusive TermContractsAgreementGrants12
Vendor or Recipient13
Inclusive TermVendorProviderRecipient14
Planning15
Objectives Name the five steps of planning16
Planning- Considerations Business need/public purposeAgency/program authorityBudgetTime available for procurementProjected value of needed servicesType of procurement needed17
Planning- 5 Steps1.2.3.4.5.Define goals and objectivesReview prior informationSpecify tasksIdentify funding sourceDetermine payment method18
1. Define Goals & ObjectivesConsider Agency mission Program goals Current and long term needs19
2. Review Prior InformationSources Similar contract for similar services Another agency’s contract for similar services Prior contracts with same vendorInformation to review Quality of services received Provider performance Cost of services Schedule of milestones20
3. Specify TasksIdentify the specific tasks to be achieved Posted on solicitations Foundation of developing scope of work andperformance standards for the contract21
4. Identify Funding SourceQuestions to answer Is there an appropriation for the purchase? What restrictions are tied to the use of thefunds? Are the funds state financial assistance? What are allowable and unallowable activities? Will the provider be considered a vendor or recipient?22
Florida GAA365SPECIAL CATEGORIESGRANTS AND AIDS - CONTRACTED SERVICESFROM GENERAL REVENUE FUND . . . . . 1,176,801FROM FEDERAL GRANTS TRUST FUND . . . . .11,708,995FROM WELFARE TRANSITION TRUST FUND . . . . . 166,494From the funds in Specific Appropriation 365, the nonrecurring sum of 100,000 from the General Revenue Fund is provided to theComprehensive Emergency Services Center in Tallahassee for direct andpreventative services to the homeless, or to those at-risk of becominghomeless.23
5. Determine Payment MethodsFixed PriceFixed RateSingle amountpaid uponcompletion ofspecified tasksCost per unit ofcommodity orserviceCostReimbursementReimburse forundeterminedfinal cost*Not-to-exceed limitappliesA combination of multiple payment methods can be used when appropriate24
Procurement25
Objectives Describe the three methods of competitiveprocurement Define the difference between competitive andnon-competitive awards26
Procurement Recognizes that fair and open competition is abasic tenet of public procurement. Legal compliance Ethical Approach Paying fair market rateSection 287.001, Florida Statutes27
Invitation to Bid (ITB)PriceRequest for Proposal(RFP)Price &QualityInvitation to Negotiate(ITN)Competitive ProcurementsBestValue§ 287.057 F.S.28
Noncompetitive Awards Sole source Line item appropriation Exempt services* Grants not awarded via section 287.057, F.S. ITB, RFP, ITN with only one responsive vendor*§ 287.057 F.S.29
Cost Analysis30
Objectives Recognize when to perform a cost analysis Identify the criteria for conducting a cost analysis Discuss the factors to consider when performing acost analysis31
Cost AnalysisReview detailed budgetMake e§ 216.3475, F.S.Maintain record of decisionsand supporting documentation32
Cost AnalysisPerformed beforecontract executionSupportingdocumentation,signed and filedPerformed by thestate agencyCompleted onapproved form33
Cost Analysis TriggersLEGALLY REQUIREDNon-competitive awarding offunds Sole source Exempt Line item appropriations Single response to acompetitive procurementBEST PRACTICECompetitively procuredagreements that are with recipients reimburse costs§ 216.3475, ault.htm34
Cost Analysis bleAllocation35
Cost Analysis FactorsNecessaryAllowableAuthorized by state orfederal laws and ed or Implied Statutory AuthorityAttorney General Opinion 78-10136
Legal AuthorityState Level Florida Statutes Florida AdministrativeCode Reference Guide forState Expenditures Catalog of StateFinancial AssistanceFederal Level Catalog of FederalDomestic Assistance 2 CFR part 20037
Cost Analysis factorsAllowableNecessaryRequired for program successEvaluationCriteriaReasonableAllocation38
Cost Analysis FactorsAllowableNecessaryEvaluationCriteriaWhat a prudentbusiness would payReasonableAllocation39
Cost Analysis bleObligation is proportionateto benefitAllocation40
Supporting DocumentationExamples W2 forms Payroll forms Leasing agreements Cost allocation plan41
Cost Analysis TriggersLEGALLY REQUIREDNon-competitive awarding offunds Sole source Exempt Line item appropriations Single response to acompetitive procurementBEST PRACTICECompetitively procuredagreements that are with recipients reimburse costs§ 216.3475, ault.htm42
TransparencyInitiative43
Objectives Identify legal requirements for using the FACTS system44
PurposeAll Original Agreements/Amendments30 days to uploadPosted PaymentsPublic accessUnless exempted § 215.985(14)(i), F.S.45
Agreements46
Objectives Identify required elements in a contract and/or grant Identify requirements of contract amendments47
Agreement Purpose Establish relationship Legal basis Set performance expectation48
Required ElementsScope of WorkDeliverables All tasks andservices to becompleted by theprovider Quantifiable,verifiable &measurable unitsof workcompletionrequired totrigger paymentFinancialConsequences A reduction ofpayment fornonperformanceornoncompliance§ 287.058 & 215.971, F.S.49
Other Legal RequirementsCONTRACTS Sufficient information to audit bills and fees Travel to be in accordance with 112.061 Unilateral cancellation for refusal to allow public access torecords 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§ 287.058, F.S.50
Other Legal RequirementsGRANTS Any balance of unobligated funds must berefunded to the state Any funds paid in excess of amount entitled torecipient must be refunded Inclusion of standard audit language§ 215.971, F.S.51
Changes to DeliverablesContractAmendment52
Changes to Agreement No retroactive changes All parties must approve in writing/signatures Cannot change the scope of work53
Changes to AgreementRenewals Longer of 3 years or original term Prohibited on single source andemergencyExtension Up to 6 months Additional only if beyond provider’scontrolAssignment Only with prior agency approval54
Compensation ChangesMoreclientsMoretasksMore terials55
Payment Terms Identify the specific information to be included oneach invoice. Identify the documentation required to accompanyeach invoice and the format in which it is to besubmitted. Identify timelines for invoice submission andapproval and deadline for final payment. Identify advanced payment guidelines.Rule 69I-40.002, F.A.C.56
Reporting Establish frequency requirements Include content requirements in the agreement Provide a format Require documentation to support information57
Agreement Files Maintained for each agreement Neat, complete, and organized Records must be retained forat least five years from lastactivity. Format established by agency58
SettingPerformanceExpectationsTHE BIG THREE59
Objectives Identify the elements of an effective scope of work Identify the elements of a good deliverable Identify difference between a deliverable anddocumentation Identify elements of financial consequences60
The Big ThreeFinancialConsequencesDeliverablesScope of Work61
Scope of Work Answers WhatSpecifictasks/servicesneed to becompletedDocumentationis required to bemaintained62
Scope of WorkClearSpecificCompleteEffectiveLanguage63
Scope of Work Answers WhoHow Who is going to provide/receiveservices? Identifies staffing levels,qualifications, responsibilities,and documentationrequirements. The manner in which activitieswill be performed Any applicable standards,procedures, laws and rulesQualitative standards64
Scope of Work Answers WhenWhere When will services take place? Identifies agreement period. Identifies due dates. Where will the services beperformed?Qualitative standards65
Quantitative StandardsHowmuch/many?How often? How many people/clients need tobe served? How much service is each client toreceive? How frequently will services beprovided?Quantitative standards are not always applicable66
DocumentationSpecify documentation to be maintained To evidence work completed To accompany deliverables For audits and monitoring67
Slippery ScopesCausesAmbiguous languagePassive languageLack of detailEffectsInability to enforce complianceIneffective monitoring68
Deliverables Are quantifiable, measurable & verifiable Trigger payment Measure performance Track progress69
Measurable Units of lyQuarterlyYearlyMilestonesPhasesAs NeededHourlyClient70
Deliverable Attributes Related to Scope of Work Identifies tasks, services and/or milestones performance criteria records to be used for verification due date for completion payment amount71
Submission RequirementsDelivery addressInvoice requirementsRule 69I-40.002, F.A.C.Submission deadline72
Detonating Deliverables Performance requirements thatdo not coincide with paymentperiod Quantitative minimums beyondprovider’s control Progress reports as deliverables73
Financial Consequences 50 2574
Financial Consequences Allows state to pay for partially completed services Applicable for non-performance/compliance Not a termination clause75
Documentation76
Objectives Identify State Agency Responsibilities Identify programmatic and fiscal Documentation Identify monitoring activities77
State Agency Responsibilities Enforce the performance of thecontract/agreement’s terms and conditions Monitor and document providers performance Review and document all deliverables for whichpayment is requested by providers Provide written certification of the agency’sreceipt of goods and services.Section 287.057 (14) and 215.971 (2), F.S.78
DocumentationWhy is it essential? To demonstrate successful performance To verify your work and accomplishments To demonstrate compliance with the agreement To evidence your fiscal accountability To avoid payment delays79
DocumentationDoes it meet these criteria? Sufficient (enough) Reliable (dependable and trustworthy) Relevant (related to the agreement)80
Documentation Programmatic – demonstrates compliance withterms/conditions, and service delivery relatedrequirements. Fiscal – evidences that funds have been accountedfor and used appropriately (Cost reimbursementand/or recipient/sub-recipient agreements.)81
Programmatic Documentation Business Qualifications/Requirements Staff Qualifications Client Eligibility Activities Allowable (per funding source) Licensure82
Programmatic Documentation Scope of work Number of clients Hours worked/services provided Activities satisfactorily completed Deliverables Milestones (phases, level of completions) Achievements (completion of a bundle of services)83
Programmatic Documentation Issues Insufficient documentation Clients ineligible for program Performance/Deliverable Based Agreements – Notdocumenting the effort provided to achievedeliverables84
Fiscal Documentation Account for all funds received Account for all expenditures Account for any interest earned Revenue and expenditures must be identified for eachproject and funding source. Do not commingle funds. Account for expenditures made by all sub-recipients. Match requirements are being met, if applicable.85
Fiscal Documentation Read the agreement thoroughly. Carefully read all laws/rules referenced in agreement. Identify the funding source (state or federal). Generally the more restrictive of federal or state ruleslaws will apply to federal funds disbursed from StateTreasury.Consult with the funding state agency for clarification,when necessary. Request clarification in writing.86
87Fiscal Documentation Paid detailed invoices – Statements not adequate Subgrants, subcontracts, purchase orders Cancelled checks Bank Statements Payroll registers Signed Employee project time sheets101
88Common Expenditure Issues Expenditures not relevant to agreement Consultant agreements Transactions such as leases, consultants, sub-contracts andsub-grants with related parties. Requires extensivejustification and/or documentation. Expenditures prior to execution of agreement Fundraising expenditures103
89Documentation for Subs A written contract or grant agreement is requiredfor services provided by a consultant or sub. An appropriate procurement method and/orprice/cost analysis for the sub agreement should bedocumented to justify the rate paid. The same type of programmatic and fiscaldocumentation required of the provider will also bemaintained by the sub.104
Ensure provider performance Enforce terms and conditions90
MonitoringFiscalProgrammatic91
Programmatic Monitoring Compliance with all terms and conditions of theagreement, laws, and rules Completion of all services identified in the scope of work Achievement of deliverables Achievement of program goals Sufficient documentation of work completion92
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 payment93
Monitoring ActivitiesInvoiceReviewsClientSurveysOn s/AuditReportsUse source documentation for adequate verification94
DocumentationFor adequate verification review sourcedocumentation that is Sufficient Reliable Relevant95
Corrective Action Non-compliance issues should bedocumented and addressed in a timelymanner. Appropriate corrective action, (e.g.,financial consequences, additional timefor compliance, termination ofagreement) should be taken anddocumented.96
Payments97
Objectives Identify invoice requirements98
Payment ProcessAgency and provider enter into anexecuted agreementProvider completes the workrequired in the deliverableProvider submits invoice andsupporting documentationAgency receives, inspects andapproves. Submits to CFODFS performs pre-audits99
Payment Requirements Authorizing document in FACTS Written certification Supporting documentation Accurate and complete invoice Contract Summary Form Advanced payment approval (if applicable)Rule 69I-40.002, F.A.C.100
Invoice Requirement Dates Invoice date Service dates Service description Vendor name and address Agency name and address Unit quantity and rate Total amountRule 69I-40.002, F.A.C.101
Payment Verification Review invoices for accuracy and completeness Verify that any required supporting documentation hasbeen submitted Review documentation to gain reasonable assurance thatservices have been satisfactorily provided Apply financial consequences if the minimum level ofservice was not performed in accordance with theagreement Approve invoice after all other steps have beensatisfactorily completed102
Compare invoice withagreementVerify Billing unit, rate and price align with theagreement Service description supports contracted activities Expenditures are allowable by the agreement103
Closeouts104
Objectives Identify close out activities105
CloseoutsEnsure all requirements have been metAccount for all fundsInformation for future agreementsExpiration of contractDepletion of fundingTermination of agreement106
CloseoutsPROGRAMMATICFISCAL Compliance requirements Cost reconciliation Reports Match requirements Receipt of deliverables Disposition of property Un-assessed financialconsequences Paid to date Documentation Stayed within budget107
Thank You!Please contact our training teamif you have any questions.Accountability@myfloridacfo.com(850) 413-3060108
Identify the funding source (state or federal). Generally the more restrictive of federal or state rules laws will apply to federal funds disbursed from State Treasury. Consult with the funding state agency for clarification, when necessary. Request clarification in writing.
