First 5 LAInvoicing & Budget Modification

Workshop

FY 2010-2011

2

Financial Overview

• Invoice Reporting

• Informal Budget Modification/Budget Changes

• Formal Budget Modification Process

• Financial Compliance Site Visit

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Invoice Reporting

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Invoice Reporting (Cont.)

• Contact Name & Phone # line, please provide the name and phone # of the individual who is familiar with the expenses reported on the invoice form

• Must be based on actual expenses

• Must be according to the approved budget line items

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Invoice Reporting (Cont.)

• Once an invoice has been paid, Grantee CANNOT make adjustments to prior month’s expenses. Prior months’ adjustments can be made only on the current month being invoiced (with justification). • Justification of previous months’ adjustments should be enumerated

• If budget changes have been made, please make sure to revise the “Approved Budget Total” column on the invoice form

• First 5 LA will place a HOLD on invoices, if grantee is not in compliance with the Grants Management Dept. (i.e., missing reports, proof of insurance, etc.) and/or Finance Dept. (i.e., error in calculations, unallowable %, etc.)

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Invoice Reporting (Cont.)

• Invoices are to be submitted on a monthly basis• due the 20th business day of each month for the previous month

• Must be signed by the agency authorized representative (listed on the Signature Authorization Form)

• Payments are processed within 20 workings days of the receipt of the grantee’s invoice, if invoice is properly completed

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Personnel Cost Allocation

Position Employee Name

Approved Budget Gross

Monthly Salary

Approved Budget % Time on

F5LA Project

Budget F5LA

Allocation Amount

ActualGross

Monthly Salary

% of Actual Salary chargeto F5LA

Charge toF5LA

MatchingFunds

(if applicable)FICA

00.00 %SUI

00.00%Health00.00%

WorkersComp.00.00%

Other Benefits 00.00%

Staff BenefitAmount

TotalCharge to

F5LA- - - - - - - - - - - - - - - - - - - - - - - - -

Total For the Pay Period (Jan-xx-2009 - xx-xx-2009) - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total For the Pay Period (Jan-xx-2009 - xx-xx-2009) - - - - - - - - - -

Total Personnel Cost for the Month of January 2009 - - - -

NOTE: *** This template is for supporting documentation use only. You may use this template if your agency don't have any existing Personnel cost allocation system in place.

*** Please submit the filled Salary & Benefits worksheet or your Agency's internal Personnel Cost Allocation worksheet together with your invoice to support Personnel Cost.

*** Please fill in each column appropriately per approved contract/agreement.

*** This template should only include Personnel Cost line items (from your approved budget). DO NOT INCLUDE CONTRACTED SERVICES.

SALARY & BENEFITS BILLED TO FIRST 5 LA

J effrey Samson:This is the amount to be billed to First 5 LA for Personnel Cost for the month.

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Invoice Reporting (Cont.)

• All invoices must be mailed to:First 5 LA c/o Finance Dept.750 N Alameda St., Suite 300Los Angeles, CA 90012

• Invoice forms can be downloaded from our website: www.first5la.org

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Rule 1: 10%Changes for line item budget of $5,000 or more:

You may increase/decrease the amount of the original budget line item by no more than 10% without submitting a formal budget modification

Informal Budget Modification

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Informal Budget Modification (Cont.)

Rule 2: $5,000 or lessChanges for line item budget of less than $5,000:

You may increase/decrease any amount of the original budget line item up to the original amount

When making a budget change, a memorandum explaining the changes must be submitted with the invoice

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Rule 1: 10% Example:

Budget Line Item Amount Change1. Personnel $250,000 + $25,0002. Contracted Services 75,000 + 7,5003. Space 20,000 + 2,000

Rule 2: $5,000 or less:

Budget Line Item Amount Change1. Supplies $4,000 + $4,0002. Telephone 1,500 + 1,500

Informal Budget Modification (Cont.)

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• Only two (2) Informal Budget Modifications/Budget Changes will be accepted per contract year

When making a budget change, a memorandum explaining the changes must be submitted with the invoice

• If Grantee exceeds two (2) budget changes, a Formal Budget Modification will be required

Informal Budget Modification (Cont.)

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Formal Budget Modification Process

Grantee must submit the following:

• Budget Modification Form • Justification letter• Revised Statement/Scope of Work (if

modification impacts program activities)

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SAMPLE

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SAMPLE

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Formal Budget Modification Process (Cont.)

• Formal Budget Modification due by the 1st of the month – to be effective the 1st of the following month, if approved

• First 5 LA will not process e-mailed or faxed budget modifications

• Formal Budget Modifications will not be processed during the first two months and the last 3 months of the contract year

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Formal Budget Modifications are not retroactive

Formal Budget Modification Process (Cont.)

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• Plan the Formal Budget Modification with the understanding that the requested changes will be effective one month after submission, if approved.

Example: Your agency plans to hire a Case Manager position with savings from the Equipment line item and the Formal Budget Modification is submitted to First 5 LA November 1st. The Formal Budget Modification will be effective, if approved, December 1st. Therefore, the Case Manager position should be budgeted for only 7 months (December – June).

Formal Budget Modification Process (Cont.)

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Financial Compliance Site Visit

• Agencies must demonstrate internal accounting controls and practice standard accounting principles

• First 5 LA will select budget line items to be reviewed • Grantees will provide documentation to support expenses

• To be scheduled after completion of first year

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Financial Compliance Site Visit (Cont.)

• Personnel Line Item will be selected (this line item will always be reviewed)

• Total Personnel expenses billed to First 5 LA will be verified against:

1. General Ledger2. Payroll Records (ADP, Paychex, and other)

• Personnel files will be checked against the approved budget (personnel titles, salaries, and dates employees were assigned to First 5 LA program, timesheets, etc.)

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• Other forms required for the financial compliance site visit:

1. Personnel position assigned to First 5 LA2. Payroll reconciliation worksheet3. Record of Financial Compliance form

Financial Compliance Site Visit (Cont.)

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Finance Department

Kristina DixonSRI Staff Accountant

(213) 482-7549kdixon@first5la.org

Camille DonnellMAA Staff Accountant

(213) 482-7513cdonnell@first5la.org

Tamika AustinHSR – HK – COF – FFN – BIH – OHCD

Staff Accountant II(213) 482-7532

taustin@first5la.org

Jeffrey SamsonPFF - FamLit – ARRA - 211

Staff Accountant II(213) 482-9399

jsamson@first5la.org