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ARRA MEETING_10_28_09

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					American Recovery and
  Reinvestment Act

    State Fiscal Stabilization Fund
       Reimbursement Process



1
                              Terms
   State Fiscal Stabilization Fund program (SFSF)
    one-time appropriation of approximately $48.6 billion that the U.S.
    Department of Education will award to Governors to help stabilize State
    and local budgets in order to minimize and avoid reductions in
    education and other essential services, in exchange for a State’s
    commitment to advance essential education reform. Two components
    of this program are:

          • Education Stabilization Funds (ESF) – commonly
            known as the “recovery” or “loss” funding. These funds are to
            be used to restore state support.

          • Government Services (GSF) – commonly known as
            “capital” funding. These funds are to be used for
            modernization, renovation or repair of institutions of higher
            education (IHE) facilities.



2
                Terms Continued
   Prime Recipient – in the case of SFSF funds, the State of
    Arkansas is the prime recipient because the funds were granted
    directly to the State.
        The prime recipient is responsible for reporting all job creation and
         retention estimates on federalreporting.gov.
        This reporting information will come from the monthly reports
         submitted by the IHEs.

   Subrecipient – the IHEs are the subrecipients because the
    funds were granted to the State and will be distributed to the
    institutions.
        The subrecipients are responsible for providing job
         creation/retention estimates and narratives describing the types of
         jobs (job titles) to the prime recipient.
        Subrecipients are responsible for collecting job estimates from any
         vendor with employees directly charged to projects or activities
         funded by Recovery funds.


3
Education Stabilization Funds

   Prohibited uses of the funds:
        Reoccurring operating expenses
        Increase endowments
        Maintenance of systems, equipment, or facilities
        Modernization, renovation, or repair of stadiums or other facilities
         primarily used for athletic contests or exhibitions or other events for
         which admission is charged to the general public;
        Modernization, renovation, or repair of facilities used for sectarian
         instruction or religious worship or in which a substantial portion of
         the functions of the facilities are subsumed in a religious mission.
        New construction
        Restoring or supplementing a “rainy day” fund
        Financial Assistance (Governor’s Restriction)
        Private Institutions are not eligible for these funds.




4
Education Stabilization Funds

   Allowable uses of the funds:
       Modernization, renovation, or repairs of facilities that
        are primarily used for instruction, research, or student
        housing, including modernization, renovation, and
        repairs that are consistent with a recognized green-
        building rating system.
       Pay down existing debt – principal only
       Equipment acquisitions
       Salary Bonuses
       Vehicle acquisitions
       Any other expenses that are not strictly prohibited

5
Education Stabilization Funds

   The lHE’s share of these funds was calculated to be
    $27.3 million. Half of this will be available in FY10 with
    the remaining funds available in FY11.

   The funds available for FY10 must be spent by June 30,
    2010. (State requirement)

   A list of the institutions and allocations can be found in
    section 1 of the ADHE ARRA Grants Policy and
    Procedures Manual.




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Government Services Funds

   Prohibited uses of the funds:
      Maintenance of systems, equipment, or facilities
        Modernization, renovation, or repair of stadiums or other
         facilities primarily used for athletic contests or exhibitions or
         other events for which admission is charged to the general
         public;
        Modernization, renovation, or repair of facilities used for
         sectarian instruction or religious worship or in which a
         substantial portion of the functions of the facilities are
         subsumed in a religious mission.
        Paying down debt
        Restoring or supplementing a “rainy day” fund
        New Construction (Governor’s Restriction)
        Expenses relating to casinos and other gaming
         establishments, aquariums, zoos, golf courses, or
         swimming pools

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Government Services Funds

   Allowable uses of the funds:
       Modernization, renovation, or repair of facilities that are
        used primarily for instruction, research, or student housing
       Modernization, renovation, and repairs that are consistent
        with a recognized green-building rating system, subject to
        the requirements in the ARRA.
          • Examples of allowable expenses include but are not
            limited to:
              •   Electrical systems
              •   Plumbing systems or sewage systems
              •   Heating, ventilation or air conditioning systems
              •   Installation of energy- efficient windows
              •   Repair or replacement of roofs
              •   Asbestos abatement or removal
              •   Fire and safety code compliance
              •   Making facilities accessible


8
Government Services Funds

   The Governor recommended projects based on the
    requests that were submitted in the spring.
   The total recommended for IHE projects is $42.8 million.
   Four private institutions will receive these funds.
   A list of the approved projects and allocations can be
    found in Section 2 of the ADHE ARRA Grants Policy and
    Procedures Manual.
   Funds are available for obligation through September 30,
    2011. See regulation EDGAR 34 C.F.R. 76.707 on when
    an obligation occurs for various activities.
   Requests to revise projects should be sent to DFA-IGS to
    review. The Arkansas Recovery and Reinvestment
    Office (ARRO) will make the final determination regarding
    the revisions to the project.


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         Institutional Identifiers
    WBS Elements – each institution receiving ESF funds
     has a unique WBS element. Also each capital project
     funded with GSF has been assigned a WBS element.
     These identifiers must be used when submitting
     reimbursement forms. This information can be found on
     ADHE’s website.

    Vendor Number – each institution receiving either ESF
     or GSF has a new vendor number created in AASIS.
     There is only one (1) number per institution. ADHE will
     use this number to send reimbursements via ACH
     payment. This information can also be found on ADHE’s
     website.


10
              Method of Finance

    A new or revised MOF must be submitted for all GSF
     projects and ESF projects that are construction related.
     Private institutions are exempt.
    The MOF number corresponding to the project should be
     listed on all invoices.
    These must be reviewed by the Review Committee if the
     $250,000 threshold is reached.
    It is possible to combine projects by type on 1 form
    New form can be found at
          http://www.state.ar.us/dfa/accounting/guide/appendic
          es/p1_19_4_524_mof_request.xls




11
                            Forms
    All forms are designed to be used for both ESF and GSF
     reimbursements
    Required forms for reimbursement include:
            • Certification Workbook – 1 for ESF and 1 for each
               GSF project
            • Certification Form – 1 for ESF and 1 for each GSF
               project
            • Supporting documentation – 2 copies of all invoices and
               checks
    Public institutions will send documentation to ADHE; Private
     institutions will send documentation to DFA-IGS
    All forms are due the 15th of each month
    Funds will be received by the institutions by the 30th of each
     month via an ACH payment
    Forms and instructions can be found at
        http://www.adhe.edu/divisions/institutionalfinance/Pag
        es/recoveryReinvestment.aspx
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            Certification Workbook

   An Excel file containing the following information:
        Instructions
        Definitions and calculation examples
        “Expenses” form
        “Reporting Information” form




    13
         Certification Workbook
    Expenses to be reimbursed must not be dated
     before October 1, 2009.

    Expense Categories:
        Buildings/Additions to Buildings - new construction either of
         a complete building or an addition to an existing building
         that adds additional footprint or footage. Additional square
         footage must be added to include in this line item
        Major Renovations - no additional square footage to existing
         building. This would be major work to an existing structure
         such that it changed the use of the building or significantly
         increased the useful life of the building for its current
         purpose.
        Equipment - tangible and intangible items with a useful life
         of more than one year. Examples: Generators,
         Commercial Freezers, Air Conditioning units, etc.
        Vehicles

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         Certification Workbook
    Expense Categories continued:
        Technology Hardware & Software - computers, software,
         servers, printers, etc.
        Infrastructure - assets that are usually part of a larger
         system of assets, such as roads, bridges, tunnels, water
         and sewer systems.
        Salary Bonuses - funds may be used for bonuses but
         cannot be used to pay other salary expenses or give raises.
        Debt Service - payments toward the principal portion of debt
         service may only be made from Education Stabilization
         Funds. Government Services Funds may not be used to
         pay down debt.
        Other - expenses that would not fit in the categories listed
         above or expenses less than $2,500 per unit. Please
         provide a footnote explaining the expenses that are
         categorized here.

15
         Certification Workbook
    Reporting Requirements:
        Job creation and retention
          • Institutions are responsible for collecting job
            estimates from any vendor with employees directly
            charged to projects or activities funded by
            Recovery funds.
          • Jobs do not need to be directly paid for by
            Recovery Act funds to be reported. For example,
            Recovery Act funds could be used to pay a bill,
            freeing up funds that could be used to pay
            salaries.
          • The number of jobs shall be expressed as “Full-
            time equivalent” (FTE), calculated cumulatively as
            all hours worked divided by the total number of
            hours in a full-time schedule.

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         Certification Workbook
    Other Reporting Requirements:
        Types of Jobs Created/Retained - description of the
         types of jobs created or retained. Job titles, broader
         labor categories, or institutional method for describing
         jobs is allowed as long as the terms used are widely
         understood and describe the general nature of the
         work.
        Completion Percentage – percentage of the work
         that has been completed to date not just with this
         submission of invoices. This evaluation should be
         based on performance progress reports and other
         relevant non-financial performance information.
        Status Description - description of the work that has
         been complete (only GSF projects)
        Supplemental funding - this section should only be
         completed if other funds were used to supplement the
         payment of the current month’s invoices.
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         Certification Workbook

    Miscellaneous Reporting information:
        Institutions must complete the Reporting form each
         time a reimbursement is requested.

        Reporting information will be sent to DFA-IGS each
         month who will upload the information into the
         Statewide Reporting Tool and also the Federal
         Reporting Tool.

        Consistency is best policy for calculating job creation
         and retention.


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      Certification Workbook

    This Workbook must be sent electronically

    Saving Methodology – these files should be saved
     as “institution name, funding source, project name
     (only if GSF) and date”
          • Examples:
               • ASUJ ESF 11_01_09.xls
               • ASUJ GSF engineering lab 11_01_09.xls

 o These files should be sent to ADHE/DFA-IGS using
   this methodology
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              Certification Form
    This document should be completed after the
     Certification Workbook is finalized
    A separate form is required for ESF projects and for each
     GSF project
    The President/Chancellor, CFO and Internal Auditor are
     required to sign this form. Institutions that do not have an
     Internal Auditor on staff will leave the space provided
     blank.
    Instructions for completing this form can be found at
     http://www.adhe.edu/divisions/institutionalfinance/Pages/rec
     overyReinvestment.aspx
    This form must be sent through the postal service along
     with 2 copies of the invoices and checks that correspond
     to the reimbursement request.


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Miscellaneous Information
    ARRA expenses should not be requested for reimbursement
     through General Revenues or the Higher Education Bonds.
    It is recommended that special cost centers or account numbers be
     set up in your institution’s financial system to segregate these
     expenses.
    Send the Certification Workbook electronically and the Certification
     Form and 2 packets of the supporting information via the postal
     service by the 15th of the month.
    Audit requirements – public institutions have existing processes in
     place to comply with these requirements. The audit must be sent
     to DFA-IGS no later than 9 months after the close of each fiscal
     year during the term of the award.
    Audit compliance for Private institutions?
    ADHE ARRA Grants Policy and Procedures Manual can be found
     at
      http://www.adhe.edu/divisions/institutionalfinance/Pages/recoveryReiv
          vestment.aspx


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     QUESTIONS????




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