Transcript Reimbursement Manual for Pass Through Grants

1
REIMBURSEMENT MANUAL
FOR PASS THROUGH GRANTS
DNR Office of Management and Budget Services
Content
2
Section 1: System Requirements (Q & A)
Section 2: Project Reimbursement (Q & A)
Section 3: New Payment Monitoring Plan (Q & A)
Section 4: Vendors and Subcontractors
Section 5: Materials and Services (Q & A)
Section 6: Accounting, Documentation, and Record Reconciliation
Section 7: Contact Information (Q & A)
Overview
3


The reimbursement manual was developed to help
grantees administer the Pass-Through Appropriation
and to provide instructions on how to obtain
reimbursements for eligible project expenses
The manual is based on federal and state laws, and
policies and procedures of the Office of Grants
Management and the Minnesota Department of Natural
Resources’ Office of Management and Budget
Services.
System Requirements
4

Electronic Funds Transfer

SWIFT e-Supplier Portal
Electronic Funds Transfer
5

The preferred and most efficient method of payment is an
electronic funds transfer (EFT) directly into the grantee’s
designated bank account. Once a payment is made to the grantee,
it generally takes 2-3 business days for the funds to appear in the
grantee’s account.

To set up the EFT payment process, contact the
Minnesota Management and Budget EFT Hotline at
651-201-8106
SWIFT Supplier Portal
6

Every company and organization doing business with the state
is considered a vendor.



In order to receive or view payments or invoices, every vendor,
whether current, new or prospective, will need to register online
with Minnesota Management & Budget
To use the Supplier portal every vendor needs a vendor ID
number
To register, go to the Supplier portal and click on “Vendor
Registration Link”
http://supplier.swift.state.mn.us
SWIFT e-Supplier Portal
7
Vendor Resources are available at
http://www.mmb.state.mn.us/vendorresources
Minnesota Management and Budget (MMB)
helpline (651) 201-8106 or
[email protected]
SWIFT e-Supplier Portal Q & A
8
Questions
9
Project Reimbursement

Project Reimbursement Definition

Reimbursement Request

Reimbursement Documentation

Reimbursement Monitoring Plan
Project Reimbursement
10

Reimbursements are made by the State upon receiving:
1)
Demonstration that deliverables in the approved Work Plan
have been achieved
2)
Documentation of eligible expenses
3)
Proof of payment (when applicable)
Note:
Any expenditure submitted for reimbursement must be direct and
necessary for the project and have been incurred during the grant
period.
Project Reimbursement
11



Grantee pays for expenses prior to seeking
reimbursement
Total $ reimbursed cannot exceed the total
award $
Advance payment with prior (board) approval
only
Reimbursement Request
12

The Reimbursement request is comprised of three
sections
Section 1: Project Reimbursement Payment Request Form
Section 2: Reimbursement Spreadsheet
Section 3: Expenditure Descriptions by Activity/Outcome

These documents are provided with the Reimbursement
Manual
Reimbursement Payment Request Form.
13
Section 1:

Required for all payment
requests including acquisition
Note:
The period for which funds are
being requested can be the
earliest and latest dates that
costs were incurred or the time
period this request covers
Reimbursement Spreadsheet
14
Section 2:


Provides a snapshot of the grant status including the starting budget,
current requested reimbursement amount, and the remaining balance
Note: The starting budget reflected in the latest revision of the approved Work
Plan. Only approved budget items are eligible for reimbursement.
Expenditure Descriptions
15
Section 3:

Describes the activities
performed during the
reimbursement request
period. This document is
used to help further verify
eligibility of expenditures
Note:
Activities should relate to the
Activities and/or Outcomes in
the Work Plan
Reimbursement Request Examples
16
1. Reimbursement Payment Request Form
2. ENRTF Spreadsheet #1
3. ENRTF Spreadsheet #2
4. OHF Spreadsheet
5. Expenditure Description Form
Reimbursement Spreadsheet
17
Common Mistakes
 The spreadsheet $ fields are not formatted to include
cents (e.g. $1,029 vs. $1,029.13) This throws off the
totals.

The beginning balance is not the ending balance from the
previous reimbursement request.

Budget amounts do not match latest approved Work Plan

Overspending in budget item
Reimbursement Documentation (Expenses)
18

Project expenses for reimbursement must be
documented with:
1)
2)
3)
4)
Receipts
Invoices
Time (payroll) records
Proof of purchase or payment
This information is required to determine the eligibility of the
expenses and to ensure expenses were made within the
project period.
Reimbursement Documentation (Expenses)
19

The following information must be added to (or written on) the
copies of receipts, invoices, time records or other
documentation:
1)
Activity # the expense is being posted to (Environment and
Natural Resource Trust Fund only)
2)
Budget item such as personnel, equipment, travel, etc.
3)
If the documentation has expenses for more than one activity
and/or budget item, mark which elements of the documentation
are posted to each activity and budget item
Reimbursement Documentation (Expenses)
20
4)
If the documentation has non-project expenses on it, be
sure to circle the expenses being posted to the project
along with the activity and budget item
5)
Check number or payment number used to pay for receipt,
invoice, or payroll. Number should match with bank
statement or other proof of payment
6)
All invoices must explicitly state the date(s) that the
services were performed and that date must fall within
the project period in order to be eligible for
reimbursement.
Reimbursement Documentation
(Proof of Payment)
21
Proof of payment documentation is required to ensure
that funds are being provided on a reimbursement basis
Examples of payment documentation include:
1) Electronic bank statement
2)
Copy of canceled checks
3)
A copy of bank statement with photocopies of
cleared checks
4)
Certified financial records
Reimbursement Documentation - Overview
22
Send one copy of the Reimbursement Request
by mail, fax, or email to your assigned DNR Grant
Specialist…
1.
Reimbursement Payment Request Form
2.
Spreadsheet
3.
Expenditure Description
…along with the supporting documentation
(receipts, invoices etc.)
Reimbursement Documentation - Overview
23
Remember:
Expenses submitted for reimbursement must
be eligible expenses per the current approved
work plan and grant agreement.
For questions regarding the eligibility of
certain expenses, please contact your Grant
Specialist.
Project Reimbursement
24
Questions
25
New Payment Monitoring Plan
Reimbursement –
New Payment Monitoring Plan
26


The State has implemented a new proof of
payment monitoring plan.
For new grants, full proof of payment
documentation will be required with the 1st
reimbursement request.
 The
documentation provided will be reviewed by
the State for compliance and a determination will
be made as to whether the grantee may be
offered the option to maintain proof of payment
documentation on-file for future reimbursement
requests.
Reimbursement –
New Payment Monitoring Plan
27

For current grants, grantees must maintain
proof of payment documentation on-file for
future reimbursement requests unless
notified to the contrary by the State.
Note:
The new proof of payment monitoring does not apply
to land or conservation easement acquisitions.
Reimbursement –
New Payment Monitoring Plan
28


However, the State reserves the right to monitor
grantee’s proof of payment documentation at any
time throughout the course of the grant agreement.
When a grantee is selected for proof of payment
monitoring, the grantee will be asked to provide full
proof of payment documentation upon receipt of
their next reimbursement request.
Reimbursement –
New Payment Monitoring Plan
29


Once notified, the grantee will have 45 business days to
submit proof of payment documentation for the
monitored reimbursement request.
Payment of the monitored payment request will not be
delayed if all the other required documentation is in
order such as invoices and timesheets.

However, no subsequent reimbursement payment requests
will be paid until the requested proof of payment
documentation is provided and approved by the State.
Reports and Work Plans
30



Progress Reports are due to the LCCMR and
LSOHC boards on a semi-annual basis. Due dates
are specific in each Accomplishment/Work Plan.
The State may withhold payments for projects with
past due Work Plans or Progress Reports.
The final reimbursement request payments will be
paid when the Final Report has been submitted and
approved.
New Payment Monitoring Plan Q & A
31
Questions
Vendors and Subcontractors
32


Vendors and Subcontractors
Solicitation and Selection
Vendors and Subcontractors
33


Subcontractors include other organizations and/or businesses that
perform portions of the work program/accomplishment plan
Vendors provide supplies or materials to the project

Both must be selected based on contracting/purchasing procedures
outlined in the current reimbursement manual

Grantees may submit a copy of their contracting policies for review to the
State as an alternative or follow DNR’s contracting policies/procedures

Transparency, fiscal control and accountability are key reasons why the
State requires grantees to be thorough in the solicitation and selection of
subcontractors and vendors
Solicitation and Selection
34
The following guidelines should be used:
1)
2)
3)
4)
Services/Subcontracts less than $2,500 require two or more
verbal quotes
Services/Subcontracts more than $2,500 but less than $10,000
require two or more written quotes
If the subcontract exceeds $10,000, it must be awarded through
a process of competitive bidding unless the subcontractor is
listed in session law
Grantees may use a RFP/RFQ process to select professional
and technical services
Solicitation and Selection
35
5)
6)
7)
The advertisement for bid processes must allow for
fair competition among potential qualified bidders.
Grantee shall submit copies of the executed
subcontract agreements and a copy of the bid
tabulation (when applicable), along with written
documentation that describes the rationale for
selection of the subcontractor to the State.
Grantee should verify the vendor/subcontractor is not on
the State’s debarment list:
http://www.mmd.admin.state.mn.us/debarredreport.asp.
Solicitation and Selection
36
8)
Single/sole source contracts: It is the policy of the
State of Minnesota (Policy 08-07: Single and Sole
Source Grants) that grants are to be competitively
awarded as much as possible.

Single and sole source grants are to be used when only one entity
is reasonably able to meet a grant’s intended purpose and
objectives, due to their geographic location, specialized knowledge,
relationships or specialized equipment.

The following template may be modified to reflect appropriate
organization information/titles: Grant Single Source Justification
Form.

The Grantee should keep the original document on file and send a
copy to the State.
Materials and Services
37
Materials and services purchased by the grantee to achieve
outcomes/activities stated in the work plan are eligible project
expenditures
1)
2)
Typical examples of material/service purchases include
hardware, paint, lumber, sand/gravel, concrete, landscape
materials, signs, design/engineering services and subcontractor
services.
Professional service rates require written documentation to
justify the reason for the rate, how it was calculated, and the
services included in the rate.
Materials and Services
38
3)
4)
An invoice must be obtained from the vendor to provide
evidence of the sale, whenever the grantee purchases
materials or services.
The invoice and the copy sent in with the reimbursement
request must be legible and include the following items:
 Name
and address of the vendor
 Date the item or service was purchased
 Quantity of item(s) purchased
 Description of item(s) or services purchased
 Unit price
 Total amount of each line item
Vendors, Materials, & Services Q & A
39
Questions
Record Keeping -
Accounting, Documentation
and Record Reconciliation
40
The grantee is responsible for maintaining fiscal controls and fund
accounting procedures that are based on generally accepted
accounting standards and principles. Grantees must:
1)
2)
Retain original supporting documents for each project including all
expenditures, receipts, and signed employee time records
Itemize all supporting records of project expenditures in sufficient
detail to show the exact nature of each expenditure

Please be sure that invoices and receipts contain the name or type of
the item or service that was purchased in sufficient detail, so project
eligibility can easily be determined
Record Keeping -
Accounting, Documentation
and Record Reconciliation
41
3)
Maintain signed ongoing payroll vouchers for
salaries and wages if employee staff time is being
charged to the project

All employees working on a project must fill out daily
time sheets.

The original time records must be available for review
and copies are to be submitted with each
reimbursement request
Record Keeping -
Accounting, Documentation
and Record Reconciliation
42
4)
Records for grantee-owned equipment used on a
project must include the time actually used for
the project and the computation used to arrive
at the charged use rate.
 Use
5)
rates are subject to review by DNR
When a project expenditure payment is by
check, the check must be properly identified
with the project item and invoice number written
on the check, submitted along with proof of
payment.
Record Keeping -
Accounting, Documentation
and Record Reconciliation
43
6)
Project records are required for audit purposes
and must be readily available for review.
Note:
All records related to the project must be retained
for a minimum of six (6) years following the project
completion and final payment.
In Conclusion - Points to Remember
44

Reimbursement Requests should be submitted every three
(3) months.

Spreadsheet - Beginning balances must equal ending
balances from previous Reimbursement Payment Request.

Budget – Must match amounts in latest, approved
Work/Accomplishment Plan.

Expenses – Submitted for reimbursement must be eligible
expenses in latest, approved Work/Accomplishment Plan.
In Conclusion - Points to Remember
45

Project expenses for reimbursement must be documented
with:
1)
2)
3)
4)
Receipts
Invoices
Time (payroll) records
Proof of purchase or payment

The Date Range on the Reimbursement Payment Request
Form represents the first and last date of costs incurred.

All costs must be incurred prior to the grant end date.
In Conclusion - Points to Remember
46

Proof of Payment - For new grants, full proof of payment
documentation will be required with the 1st reimbursement
request.

The final reimbursement payment request will be paid when
the Final Report has been submitted and approved by either
board.
For questions regarding the eligibility of certain
expenses, please contact your Grant Specialist.
Contacts
47
Amanda Graeber - Grants Manager
651-259-5533
[email protected]
*
Patrick Donnell - Grants Specialist Sr.
651-259-5543
[email protected]
*
Jason Tidemann - Grants Specialist Sr.
651-259-5534
[email protected]
Documentation Reconciliation Q & A
48
Questions