Financial ManagementHomeland Security Grant Program
Michigan State PoliceEmergency Management and Homeland Security Division
Ms. Penny Burger, Financial ManagerMs. June Martin, AnalystMs. Carla Richardson, Analyst
http://www.michigan.gov/emhsd 2
• Grant Agreements• Reimbursements• Advances• Year-End Processes• Questions
Overview
http://www.michigan.gov/emhsd 4
Grant Agreements
• Grant agreements are legally-binding contracts between EMHSD, as the State Administrative Agency of the grant, and the subgrantee/subrecipients of the grant.
• Grant agreements contain guidance details such as grant award amount and grant restrictions, roles and responsibilities, and payment and reimbursement procedures. (list not inclusive)
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• Grant agreement packets are mailed out by EMHSD
• Subgrantee returns one complete grant agreement packet (including attachments) to EMHSD Planning and Program Development
• Grant agreements returned to EMHSD must have original signatures since it is a legal document
• Must be returned to EMHSD within 30 days
Grant Agreements (cont.)
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• Forms are available on the EMHSD website: www.michigan.gov/emhsd○ Click on “Homeland Security Grants” which
appears about half way down the page on the left hand side
○ Select “Michigan Homeland Security Grant Forms”
• Make sure to use the most current forms to expedite processing
Homeland Security Grant Program Reimbursements
http://www.michigan.gov/emhsd 9
• Reimbursement Forms○ Reimbursement Coversheet (EMD-054)○ Payroll Reimbursement Detail (EMD-055)○ Supplies and Other Items Reimbursement Detail
(EMD-056)○ Travel Reimbursement Detail (EMD-057)
• Submit reimbursement requests at least quarterly
• Make sure all forms are completed and all required documentation is attached to expedite processing
Reimbursement Process
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• Reimbursement Coversheet (EMD-054) must be included with every reimbursement request○ Complete all information required in top portion of
the form○ Designate type of activity or event○ Designate solution area○ Designate allocation type○ Must be signed by authorized financial
representative (original signature)
Reimbursement Forms
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Reimbursement Forms (cont.)
• Payroll Reimbursement Detail (EMD-055)○ Submit with corresponding Reimbursement
Coversheet○ Complete form for each employee○ Record dates and hours worked (regular and
overtime)• Can list by “Pay Period Ending” dates• Cannot list by month or year
○ If fringe benefits are billed, complete reverse side of form detailing fringe benefit percentage
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Reimbursement Forms (cont.)• Supplies and Other Reimbursement Detail
(EMD-056)○ Submit with corresponding Reimbursement
Coversheet○ Fill in top portion of form
• Type of Activity or Event (i.e. full scale exercise, conference, etc.)
• Date of activity or event○ Record supplies, invoices, receipts, contractors,
course fees, site rentals, etc.○ Must submit supporting documentation to show
proof of payment such as receipts, invoices, or check copies
• Purchase Orders ARE NOT proof of payment and are not acceptable
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Reimbursement Forms (cont.)
• Travel Reimbursement Detail (EMD-057)○ Submit with corresponding Reimbursement
Coversheet ○ Reimbursement for mileage, lodging, and meals
cannot exceed allowable sub-grantee rate or state rate – whichever is less
• State of Michigan rates can be located at: http://www.michigan.gov/documents/dmb
○ Other expenses• Parking, tolls, and fees are actual amount
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• Submission of receipts○ Submission of receipts is not necessary, except for
lodging○ Subgrantees must keep all receipts on file for audit
purposes
Reimbursement Forms (cont.)
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• Equipment• Exercise• Planning• Training• Management and Administrative (M&A)
Solution Areas
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• Reimbursement Request includes:○ Reimbursement Coversheet (EMD-054) ○ Proof of Payment
• Includes receipts, check copies, or copy of invoice• Purchase orders and/or quotes are not acceptable• Copies of credit card statements or internal
financial/accounting records are not acceptable
○ Approved Allowable Cost Justification (ACJ) forms
Equipment Solution Area
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• Reimbursement Request includes:○ Reimbursement Coversheet (EMD-054)
• Each exercise or drill must be listed on a separate Reimbursement Coversheet
○ Proof of Payment• Includes receipts, check copies, or copy of invoice• Purchase orders and/or quotes are not acceptable• Copies of credit card statements or internal
financial/accounting records are not acceptable
○ Approved Allowable Cost Justification (ACJ) forms○ After Action Report must be submitted before
reimbursement can be processed
Exercise Solution Area
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• Reimbursement Request includes:○ Reimbursement Coversheet (EMD-054) ○ Proof of Payment
• Includes receipts, check copies, or copy of invoice• Purchase orders and/or quotes are not acceptable• Copies of credit card statements or internal
financial/accounting records are not acceptable
○ Approved Allowable Cost Justification (ACJ) forms○ Attach activity detail for Planners
Planning Solution Area
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Planning Solution Area (cont.)
• Complete appropriate detail sheets• Payroll detail sheets must list each employee (non-
contractual) attending training (regular, overtime, backfill) and list by date
• Supplies detail sheets can be used for contractual employees, with proper proof of payment documentation attached
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• Reimbursement Request includes:○ Reimbursement Coversheet (EMD-054) ○ Proof of Payment
• Includes receipts, check copies, or copy of invoice• Purchase orders and/or quotes are not acceptable• Copies of credit card statements or internal
financial/accounting records are not acceptable
○ Approved Allowable Cost Justification (ACJ) forms○ Completed appropriate detail sheets
• Payroll detail sheets must list each employee (non-contractual) attending training (regular, overtime, backfill) and list by date
Training Solution Area
http://www.michigan.gov/emhsd 21
• Reimbursement Request includes:○ Reimbursement Coversheet (EMD-054) ○ Proof of Payment
• Includes receipts, check copies, or copy of invoice• Purchase orders and/or quotes are not acceptable• Copies of credit card statements or internal
financial/accounting records are not acceptable
○ Approved Allowable Cost Justification (ACJ) forms
M&A Solution Area
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• SHSP – State Homeland Security Program• LETPA – Law Enforcement Terrorism
Prevention Activities • UASI – Urban Areas Security Initiative• CCP – Citizen Corps Program• MMRS – Metropolitan Medical Response
System• OPSG – Operation Stonegarden
Allocation Types
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• Every attempt is made to expedite reimbursement payments in a timely manner
• If all necessary information is submitted properly, subgrantees should receive reimbursement within 30 days from the time reimbursement requests are received by EMHSD
• Year end (Sept. 30) processing could take longer than 30 days
Grant Reimbursement Timetable
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• Subgrantee may request an advance for $25,000 or more
• Subgrantee must submit letter, approved purchase orders, and approved ACJ form
• Subgrantee must place advanced funds in an interest-bearing account
• Subgrantee may keep interest up to $100 per year for administrative expenses for all federal grant funds combined
Advances
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Advances (cont.)
• Subgrantee must notify EMHSD quarterly, in writing, of any interest earned over $100
• Subgrantee must send EMHSD a check payable to the State of Michigan for any interest earned over $100
• Interest received by EMHSD is returned to the federal government
• Advances cannot be outstanding for more than 120 days
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Advances (cont.)
• All invoices and proof of payment must be dated within 120 days of the advanced payment issue date
• When advance purchases are completed, subgrantee must submit:○ Reimbursement Coversheet (EMD-054)○ Supporting invoice copies○ Cancelled checks (copy)○ Detail forms (if necessary)○ ACJ form(s)○ A check for unused portion of advance made payable to the
State of Michigan
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Accounts Payable
• Transaction that takes place at the end of a fiscal year. State of Michigan’s fiscal year is October 1 through September 30.
• Ensures that money spent in one fiscal year for goods and/or services is reimbursed with funds for that same fiscal year. (Required in accordance with Generally Accepted Accounting Principles (GAAP).)
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• If goods/services were received on or before September 30, but the invoice was not received, an accounts payable must be established.
• If the invoice for the goods/services was received but a reimbursement request cannot be completed and submitted before the requested deadline, an accounts payable must be established.
• If goods/services were received and paid for on or before September 30, this is not an accounts payable. Submit reimbursement request by deadline.
Accounts Payable (cont.)
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Payable or Not?
• Previously ordered equipment arrives on September 30, but no invoice has been received yet.
• The contractor performed services during the month of September, but won’t send a bill until the middle of October.
• Invoices were paid on September 30, but a reimbursement request cannot be completed, approved, and submitted before the year-end deadline.
• Supplies were ordered, received, and paid for prior to September 30.
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Establishing Accounts Payable
• Complete Payables Estimate form sent by EMHSD Financial○ Complete separate Payable Estimate forms
for each grant○ Attach documentation that supports the
estimated payable, such as invoice copy, shipping receiver, or billing estimate
○ Fax or mail completed package to EMHSD Financial Section on or before deadline
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If Payables Are Not Established
• By not establishing a payable, subgrantees are spending old year money that another jurisdiction has held for their costs.
• In order to make payments greater than $10,000 for old fiscal years without a payable, EMHSD is required to obtain special permission from the State Budget Office. This delays processing.
• Continued requests of the State Budget Office creates an audit flag indicating EMHSD is not following Generally Accepted Accounting Principles.
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• Reimbursement Requests for a payable must be completed separately. Do not complete one reimbursement packet for both payable and new year expenditures on the same form, even if they are the same grant. ○ Payable – expenses incurred through September
30 that have been established at EMHSD○ Current year – expenses incurred beginning
October 1• Submit reimbursement requests for payables
as soon as possible after the fiscal year end closes.
Reimbursing a Payable
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Contact Information
Ms. June Martin, Analyst Phone: (517) 333-5040Email: [email protected]
Ms. Carla Richardson, AnalystPhone: (517) 335-6461 Email: [email protected]
Ms. Penny Burger, Financial ManagerPhone: (517) 333-5046Email: [email protected]
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