Session Two: Navigating Your Office for Victims of Crime Grant With Confidence

Hello everyone, Welcome to Session Two of the Journey in Grants Financial Management Essentials Training.

0:06

This session is a collaborative effort developed on behalf of the Office for Victims of Crime Financial Management Resource Center or OVC FMRC.

0:15

And we're glad you can join us today. My name is Jameel Evans and I'll be supporting today's presentation.

0:21

Before we start, let's review our webinar platform and how to address any technical issues if they arise.

0:32

Next slide please.

0:38

I am having some problems. One second. Alright, no problem. There you go.

0:43

So please take a moment to locate the Zoom toolbar located on the bottom of your screen. We'll be using the chat feature to share resources and answer any questions you

0:52

may have. We'll share several chat- We have several chat monitors available to help you answer any questions you may

0:59

have in real time. If you see a heart icon appear next to your question, that indicates that someone is working to provide you an answer.

1:07

We'll be using the hand raise function today. So to raise your hand, select the reactions button,

1:12

then select Raise hand. So can you all just raise your hands just to show that you found it?

1:19

And I see the hands are going up. Great, great.

1:25

Click to view subtitles or real time transcripts of this session.

1:31

You can open the transcript by clicking the CC button in your toolbar.

1:36

As with all technology, we make experience a momentary lapse in the webinar session. If that does happen, just be patient.

1:42

The webinar should resume automatically. If you require Technical Support during today's webinar,

1:50

please type a message in the chat window or e-mail askfmrc@usdoj.

1:55

gov. And I will now post the meeting ID and passcode in our chat just so you all have

2:02

it, and as well as our dial-in number.

2:07

Next slide please.

2:14

As far as resources for today's session, we prepared a Session 2 packet filled with practical tools for you to use.

2:21

We encourage you to share this with others in your entity. A link to the resource packet was included in the confirmation

2:28

e-mail and is being shared in the chat window as well. We encourage you to keep the resource packet open throughout this session so

2:37

you can follow along as we reference the different pages. So let's begin by locating page 4, which is the Key Terms to Know worksheet.

2:47

So we'll give you a couple seconds here. And the terms we are focusing on in this

2:56

session are current terminology as referenced in the latest version of 2-CFR 200. Terms

3:03

appear in alphabetical order in your handout. A purple call out box will appear on the bottom right hand corner of the slide

3:11

when we introduce a new term. When you see a key term symbol, feel free to record the definition in

3:19

your workbook. So now I'll turn things over to our Project Director, Tara Ballesteros.

3:26

Hi everyone, My name is Tara. On behalf of my colleagues, thank you for participating.

3:31

And for those of you that joined us last session, we really appreciate it as well.

3:37

For a long time, we've wanted to create a training to support those new to federal award management or for those who simply desire

3:43

a little more information. With today's training, we are continuing to work in partnership

3:49

with you, OVC and OCFO, the Office of the Chief Financial Officer, to enhance your understanding of grants financial management.

3:57

This is your training, so please ask questions. Participants will receive the slide deck, the resources, and recording link once

4:05

it's posted. You'll get lots of resources along the way, but don't feel like you have to save them.

4:11

You will get an e-mail that has all of them in one place after the session,

4:16

and you'll have lots of great information to refer back to when needed.

4:22

I'd also like to extend a warm welcome to representatives from OVC and OCFO who are

4:28

also joining us today. Quickly, I want to tell you a little bit about the

4:36

FMRC. Next slide. There we go. Thank you, Eboni. FMRC's grants financial management services include

4:44

different levels of support for grantees at no cost. We have a virtual support center to assist with general inquiries,

4:52

to direct you to resources, and to provide guidance on specific topics and access to relevant materials.

4:58

We also have tailored services, such as this training, and we also have

5:04

open office hours, learning circles, peer-to-peer learning opportunities to enhance knowledge and skills.

5:11

And we also have customized services. Some of you may already participate in those,

5:17

but we do work individually with grantees to develop and implement tailored support.

5:23

So however we can support you on your journey, let us know.

5:29

You may know my colleagues, Tara Kay and Kyle Wade. I'm going to turn it over to them.

5:35

They're our session facilitators today. Over to you, Tara Kay.

5:42

Thanks, Tara. Good afternoon, everyone. My name is Tara Kay. Yes, there are two Taras on this project.

5:50

I'm a financial specialist with the OVC Financial Management Resource Center and my background is in direct services to victims,

5:58

national training and technical assistance, statewide grant making, public policy advocacy, and nonprofit financial management.

6:06

I've worked in the anti-violence field for 25 years, with hands-on experience of OJP funding for the past 12 years, at both a state pass through entity and nonprofit

6:16

direct grant recipient. Now I'm coming to you from Lawrence, KS.

6:22

Hi everybody, my name is Kyle Wade. I'm also a financial specialist with the OVC Financial Management Resource Center.

6:28

I've worked on OJP grants and financial management compliance for almost a decade now. I was previously with a state administering agency focusing on formula

6:36

and discretionary funding. I'm coming to you from Lexington, KY.

6:41

Thanks again for taking the time to be here with us. We hope the session will give you additional tools as you manage your OVC

6:49

awards and help to demystify grants financial management. We want to hear from you, so please feel free to ask questions as

6:57

we go. Kyle and I are going to turn off our cameras for this next section of the

7:02

training so you all can focus on the slides and the resources in the chat, but we'll come on again at the end.

7:10

All right, let's get started.

7:17

All right, in our training today, we are going to work on identifying common grants financial management challenges,

7:24

accurately and timely filing of a federal financial report, managing excess cash, and performing successful ASAP drawdowns.

7:33

First, let's begin with a quick poll so we can find out a little bit more about today's audience. Please make a selection as the question appears on your screen.

7:41

A question is: Did you attend the Essential Session One: Charting your pathway to success? Either

7:46

Yes, no but I viewed the session one webinar recording, or no.

7:52

Let's see, did y'all get a chance to check into that or not? We've got- trending toward no.

7:58

It's kind of neck and neck with yes. So about half of you did half of you didn't,

8:03

but if you fell into the "no" category, we welcome you to go to our website to view the session recording.

8:09

There were a lot of great tips and valuable resources shared that are a benefit to new and experienced grantees.

8:15

We'll share the link to our webinar recording in the chat below.

8:22

It is my pleasure to introduce a message from one of our subject matter experts, Lalania Walker.

8:29

Lalania has extensive experience in financial management and grant administration, has served as a Chief Financial Officer

8:36

at a tribal entity, and manages numerous federal grants and contracts. We will hear about her journey managing grants at her entity and the impact of

8:46

her work.

8:59

My name is Lalania Walker and I'm the coordinator of the White Earth Tribal Child Advocacy Center at the Minnesota Chippewa Tribe White Earth Band.

9:08

Our tribal finance has an effective setup which is complementary to our federal grant guidelines.

9:13

We work synchronously with each other. For example, every quarter I review the general Ledger

9:18

that finance has, to make sure it matches with my records before our finance office submits our FFRs.

9:24

Victim service admin is responsible for PMTs, while our financial department is responsible for the FFRs.

9:32

Collaboration within our entity is critical to successful grant management. And one thing I recommend is don't be afraid to reach out to establish these

9:40

relationships within your entity, and to ask questions. There's been a lot of people who've been working here within your tribe

9:48

longer than you, and they have a lot of experience and a lot of knowledge that I'm sure they would love to pass down to you.

9:56

We all are here to serve our people and serve our communities, and especially as victim service providers,

10:02

we need to not only take care of ourselves, but also create a protocol within our entity that ensures effective

10:07

collaboration. And that goes for our financial management,

10:13

but also the services that we provide. Tribal victim services are essential to our tribal communities.

10:19

Simply by showing up, collaborating with our partners and providing services to victims of crime, we're creating a safer community through

10:26

building trust with our community members. For example, these funds can allow us to help families

10:34

start over after intra-familial child sex abuse. They can help child victims receive mental health help,

10:40

help navigating the criminal justice system, help victims connect with cultural support or peer support.

10:45

What we can do for victims with these funds are life-changing, and I'm looking forward to seeing what other entities do for Indian Country.

10:52

"Miigwech", Thank you.

11:07

Well, Lalania's story highlights the importance of collaboration and working together. She does a great job of bringing to life what partnership between program team and

11:16

finance team can look like, and how the impact for our communities can be significant.

11:21

The example she highlighted of how the team collaborated to develop the FFRs is a great segue into our topics for today.

11:28

Lalania mentioned that she works closely with the finance office to submit her entity's FFRs, for example, reviewing the General Ledger each quarter

11:37

to make sure it matches with her records before the finance team submits the FFR.

11:42

You'll find examples of collaboration like this throughout our learning journey today.

11:49

Achieving accuracy in federal financial reporting is crucial for transparency and accountability.

11:55

We want to share a proactive approach to overcoming challenges in financial reporting. The FMRC reinforces our commitment to providing comprehensive guidance that

12:04

aligns with federal OJP standards.

12:09

Before we dive into the content, we would like to know if you are directly involved in preparing the FFR for your grant.

12:16

Here are some options: Yes, I am solely responsible for FFR submission at my entity.

12:22

Yes, I assist with review or in a supporting role along with other team members. Or no, I do not directly support the FFR

12:29

submission. So let's see some answers, a few notes. Most people are saying that they assist.

12:38

A few people are solely responsible. But yeah, it appears that most people are in a

12:43

supporting role. Thanks for your participation. This will help us better understand our audience attending this session.

12:54

Recipients of federal funds are required to submit a quarterly Federal

13:00

Financial Report or FFR. FFRs are submitted by your entity's designated financial

13:05

manager in JustGrants. These reports may be submitted ten calendar

13:11

days or less from a reporting period end date until the due date. It's crucial to follow FFR reporting due dates to ensure that your grant funds are

13:20

not frozen. Missing these deadlines will result in the suspension of your funds,

13:26

which can disrupt your project's progress and financial stability.

13:32

Let's talk about the basics of the FFR. Our report with a purpose.

13:38

The FFR does 5 things. One, reconciles to your entity's accounting records.

13:45

Two, shows total federal funds authorized, cumulative expenditures,

13:51

and unliquidated balance. Three, Reports actual expenditures and pending payments.

13:58

This includes an entity's subrecipients, if any. Four,

14:03

Includes cost sharing contributions, program income, and the most recent quarter's indirect costs.

14:12

Five, Helps grantees stay within financial guidelines.

14:17

Now you must file an FFR every quarter, even if no funds were expended.

14:24

If receiving multiple grants from one or more awarding agencies, you will submit a separate FFR for each grant.

14:32

Now, while you don't need to submit backup documents with the FFR, you must have a system to organize and

14:38

store them. And always keep a copy of each quarter's submitted FFR.

14:44

If you need additional support with FFRs, be sure to check out the JustGrants video from our Pre-learning resources, as well as this FFR guide sheet.

14:58

In this session's journey, we focus on Rose, a dedicated grant administrator at Wind Haven Center.

15:04

Her proactive approach is crucial, especially as the deadline for the federal financial report submission approaches.

15:10

Timely submissions ensure compliance and build trust with stakeholders to demonstrate that the entity maintains its credibility with fiscal management.

15:19

Rose's role is pivotal in rallying her team to stay ahead of deadlines. By teaming with Taylor the Financial Lead, they work to ensure that the detailed

15:28

plan they create aligns with Wind Haven Center's documented policy and procedures. By working together, they collaboratively navigate the

15:35

complexities of grant administration more effectively.

15:42

Rose reminds the finance team about the upcoming FFR submission. Taylor the Financial Lead gathers the quarterly financial statements with the

15:50

team's help. By the 25th, Taylor has a summary of grant expenditures, indirect costs, and remaining balances,

15:57

including cost sharing details. The team verifies all expenses and personnel charges against the budget

16:03

using an FFR checklist to ensure accuracy. Taylor drafts the FFR and shares it with the Director for review and approval.

16:11

By the 30th, Taylor submits the FFR and saves a printed copy in the grant management file.

16:17

Rose sets calendar reminder for any necessary edits within 30 days. Clear processes and early planning to help the team avoid last minute stress

16:26

and ensure smooth, accurate submissions each quarter.

16:31

One of the tools Rose and her team used was an FFR checklist. Today, we're introducing our version, designed to

16:38

help you proactively gather the documentation needed for your FFR submission.

16:43

Using this checklist will streamline your preparation and keep your team organized and efficient.

16:49

You'll find it starting on page 8 of your resource packet. Staying aware of reporting due dates is critical.

16:56

Calendar reminders can help you stay on track. The FFR checklist is a key tool for grantees.

17:02

It helps avoid last-minute stress by encouraging early collection of required documents.

17:07

It also supports team coordination by setting clear deadlines and promoting accountability.

17:15

Did you know that the designated Financial manager in JustGrants will get a notification that the FFR is due?

17:22

This will come well before the due date. You can see an example of what this e-mail looks like on the slide.

17:32

At Windhaven Center, Taylor created a general Ledger format that makes it easy to track spending by

17:37

project and budget category. It sorts financial data into categories such as assets, liabilities, equity,

17:44

revenues, and expenses. It also provides detailed information such as dates, amounts,

17:50

and descriptions of transactions. This organization makes it easy to locate individual accounts and track the

17:56

financial status of the entity. Remember, you must be able to explain how your accounts map to approved OJP budget categories such as travel, personnel,

18:05

and fringe benefits. You can see a sample of a GL template here.

18:10

Windhaven Center used this template as their starting basis to make sure everything lined up with their approved budget.

18:17

We've also provided you with guidance in your resource packet on page 13, which you can use to develop your own GL.

18:27

Let's take a moment to preview Wind Haven Center's general Ledger. Please note that each grant should have its own dedicated GL.

18:34

The Grant's GL is not necessarily the same as the Entity's GL. The federal grants should always be tracked and reported separately.

18:42

Your GL may look different based on accounting software and other factors related to your budget.

18:48

Some important things to note about your GL are the chart of accounts are numbers that you assign to the categories associated with your cost centers.

18:56

An entity starts with a basic list and adds as many sub-accounts as needed.

19:02

Having a well-maintained and accurate GL will assist your entity with FFR accuracy and a system of accountability for tracking funds.

19:10

This example highlights how the GL is not just a list of totals. It shows debits and credits for each transaction for the entity. And for the

19:19

FFR, You only need to report 1 total expenditure amount, and that number should come from your GL.

19:24

The amount is based on actual expenses, not just approved budget.

19:32

Before you start preparing your federal financial report, it's important to confirm how your entity tracks and reports spending.

19:39

This is referred to as the accounting method. The two methods are cash basis, you report expenses when the money is

19:46

actually paid out, or accrual basis, you report expenses when they are incurred, even if the payment hasn't been made yet.

19:55

Both methods are allowed, but accrual basis is usually preferred by federal awarding agencies because it gives a more complete picture of your

20:03

financial responsibilities. Once you choose a method, you need to stick with it.

20:08

This is part of a rule called the consistency principle, which means you should use the same method every time. When your agency

20:16

develops its policies and procedures for FFRs, determine which accounting method, cash or accrual,

20:23

your entity uses, and report the same way every quarter.

20:30

Let's revisit Wind Haven Center. This is the first time completing the FFR for two members of the finance team.

20:37

Taylor feels a bit of apprehension about something accidentally being missed.

20:42

He has asked OVC Financial Management Resource Center to step in and help his team review the form to ensure that everything is correct.

20:51

Having a second layer of review for the FFR is a best practice that we recommend.

20:57

On the screen in Page 10 of the resource packet, you will find line-by-line guidance of how to complete Section 10 of the FFR.

21:05

Section 10 asks questions about expenses. To summarize, federal fund expenditures, cost share, and program income must be

21:16

reported as cumulative amounts from the inception of the grant to the end of the

21:22

reporting period. Your grant general Ledger is the source for these numbers.

21:30

For the FFR, you only need to report totals, not a breakdown by budget category or line item.

21:38

If there's no cost sharing or program income required, those fields should be left blank.

21:44

And please note that Section 11 asks details about indirect costs, and we'll talk about that in a minute.

21:54

In Section 10, you'll see something called Recipient Share. This refers to the cost sharing requirement of your grant.

22:01

Cost sharing or match means the non- federal contribution towards the total project cost.

22:06

Cost sharing is usually shown as a percentage of the total project cost. For example, if the federal portion of your award is

22:15

$75,000, and you have a 25% cost share requirement, your recipient share is $25,000,

22:22

making the total adjusted project cost $100,000.

22:27

On the FFR, line J is recipient share of expenditure. This is the amount of the cost share that you have actually applied towards the

22:35

project so far. Line K is remaining recipient share to be provided.

22:41

This is how much cost sharing you still need to contribute to meet your total requirement. We go over how to calculate cost share requirements and acceptable sources in

22:50

Session 1 of Essentials. If you need a refresher, check out the recording. Cost sharing calculations are covered around the 34 minute mark of Session One:

22:58

Charting Your Pathway to Success. Once you know how to calculate cost sharing,

23:03

it's important to track and report it accurately. Cost sharing contributions don't need to be applied at the same time or in

23:12

proportion to federal funds, but the full cost share amount must be committed by the end of the award period.

23:18

Here are four key reminders: One, start tracking cost sharing from the beginning of the grant, and continue through each reporting period.

23:27

Two, cost sharing funds must follow the same rules as federal funds. If it's not allowed under the federal award, it's not allowed as cost sharing.

23:37

Three, use only the approved type, source, and amount of cost sharing listed in your budget.

23:43

And four, your records must show the source, amount and timing of all cost sharing contributions.

23:54

Coming back to the FFR, the next section we highlight is indirect costs.

24:00

Let's quickly make a distinction between direct cost and indirect cost. Now,

24:05

Direct costs are items or activities that can be clearly linked to a specific

24:10

program or project. Indirect costs are items or activities that support the organization as a whole.

24:17

And even though indirect items or activities don't directly support the program or project, the federal government will allow

24:25

entities to collect grant funds to cover these costs. Once an entity has their cost categorized as either direct or indirect and

24:35

documented in their cost allocation plan, the entity can allocate indirect costs

24:41

using an indirect cost rate. This rate is either a negotiated rate with a federal agency or a de

24:48

minimis rate. Your chosen method, either a negotiated rate or a de minimis

24:54

rate, must be applied consistently across all federal funding sources.

25:00

Also, costs must be consistently categorized as either direct or indirect, and may not be inconsistently charged, or double charged

25:10

as both. On the screen is Section 11 of the FFR, called Indirect Expense.

25:18

Recall the cumulative costs expended to the grant were reported in section 10.

25:24

That cumulative amount includes all indirect recovered to date. However, on each FFR, you need to provide details

25:32

on the indirect you recovered during that particular reporting period.

25:39

Many recipients use the de minimis method. This is shown in 11A.

25:44

The rate is 15%. This is shown in 11B. The 15% is applied to a base amount.

25:52

The base amount is the amount of qualifying direct costs for the quarter.

25:58

You'll see that in 11D. The time frame is referred to as period from and period to.

26:05

Take a look at 11C. This period Should align with the quarterly FFR date range.

26:12

Once you've entered the type, rate, Period, and base, the FFR automatically calculates the

26:19

amount of indirect eligible to be charged to the grant this period.

26:25

That information populates in 11E. Be sure to confirm the amount of indirect

26:30

you've collected from the grant by manually entering the amount in 11F,

26:36

federal share. Aside from section 12, which is for notes, this is the last area of data entry for

26:44

the FFR.

26:49

The FFR is completed once the submitter for the entity certifies that the information is accurate and complete.

26:55

This screenshot is an example of what this section of the form looks like. Upon successful submission of the FFR,

27:03

it's important to note that there won't be a notification that the FFR has been accepted.

27:10

Grantees can check the status of the federal financial report through the JustGrants system. On the slide, we have two examples shown.

27:18

The top screenshot shows a successful completion of the FFR that was submitted on time, and the bottom example shows a delinquent status.

27:27

Whoever is the financial manager in JustGrants will receive a notice that the FFR due date is approaching.

27:33

If it is late, they will receive a notice that the FFR is late, and the grant funds have been frozen until it is completed.

27:41

The financial manager can find the current reporting period's open FFR on their home screen under Tasks-Assignments.

27:51

We covered this in the beginning, but it's worth reiterating: It's crucial to follow federal financial reporting due dates to ensure that your grant funds are

28:00

not frozen. Missing these deadlines results in the suspension of your funds, which can disrupt your project's progress and financial stability.

28:09

To avoid this, make sure to submit your FFRs on time. One effective way to stay on track is to set calendar reminders.

28:17

You can do this by marking the due dates on your calendar, and setting up alerts a few days before the deadline.

28:22

This way, you'll have enough time to gather all the necessary documents, and complete the submission process without any

28:29

last-minute rush. We've created a resource with some of the most common challenges and possible

28:36

solutions that grantees face with FFR reporting. You can find this resource on Page Six of the packet.

28:43

For example, it's crucial that grantees report actual expenditures rather than draw down amounts.

28:51

Additionally, the table underscores the importance of cumulative expenditures, cost sharing, and program income reporting,

28:58

and maintaining complete documentation. It also addresses the need for updated policies and procedures, to navigate

29:05

challenges like staff turnover and unexpected emergencies. By implementing these solutions, your entity can enhance its financial

29:13

management practices and ensure compliance with reporting requirements. Feel free to share this with your colleagues.

29:23

At the end of each content section, we will pause to review by taking a journey along our board game together.

29:29

You will be presented with two review questions that focus on key takeaways to reinforce learning.

29:35

Now let's take a look at the game board. We'll start with question one on the trail.

29:41

Each step we take will bring us closer to mastering the essentials so that each of you can navigate your OJP grant with confidence.

29:49

We'll work together as a group, and we'll begin at scenario spot number one on the trail. Each stop reveals a question tied to today's training takeaways.

29:58

You can put your answers in the chat, or you can come off mute to answer. Correct answers move us forward and uncover 1 of 6 hidden letters.

30:06

Collect all 6 letters to unscramble a grant-related mystery word to be revealed at the end.

30:12

Now let's begin by moving our game piece to the first scenario spot located in the FFR forest on the map.

30:21

Question number one, category: FFR accuracy. Taylor is preparing the federal financial report for the quarter.

30:29

He looks at his records and sees that Wind Haven Center has drawn down $50,000 in federal funds from the grant so far.

30:37

He plans to use that number on the FFR to report cumulative expenses. Is this correct?

30:45

Feel free to start posting answers in the chat or raise your hand to come off mute.

30:51

So Taylor is looking at what he's drawn down and he's going to use that number on

30:59

the FFR to say that's his cumulative spend. Seeing a mixture of yeses, noes,

31:06

correct, incorrect.

31:12

Ok, For the folks that are saying no that's not correct, you're right, it's not correct.

31:20

The FFR should reflect the actual funds expended by the entity, not the amount drawn down from the federal government.

31:28

The draw down amounts and expenditures won't match due to timing differences and

31:34

other factors. This is because the FFR is a point in time historical report and the federal

31:40

fund draw downs are up-to-date amounts needed for immediate cash flow.

31:46

We will share a helpful reference in the chat that contains FFR tips.

31:52

All right, great job with this first question. Let's head back to our game board.

32:00

It looks like we have uncovered our first mystery letter on the game board. We invite you to find a place to jot down the letter C.

32:09

As we move throughout the remaining scenario spots, we will see new letters appear, which we can unscramble to figure out the secret

32:17

mystery word. Let's go to question 2.

32:23

Question 2 for FFR accuracy. If you notice your entity has made a mistake with their FFR,

32:30

is there a way to correct the inaccuracy? If so, how many days do you have to make an edit?

32:37

What does everybody think? What if you made a mistake, you just submitted it, and you're not sure? Oops.

32:44

Does anybody know if you can fix it or if you're just stuck with it? Yes, we've got a yes and a 30. All right.

32:50

Yes, you have 30 days to make an edit. Anybody else? We've got some good, good comments.

32:56

People are on it.

33:05

All right, everybody's smart to this one. This must have been a give me. The answer is yes, you can make edits within 30 days.

33:14

If there's an inaccuracy reported, you can correct it by reopening and resubmitting the most recent quarterly FFR.

33:20

If you still, if you're within that time frame, yes, Jacqueline Brown, or you're within the 30 days, or you can make the correction on the next one.

33:29

And then if you do make a correction on the next FFR, you can make a note in section 12 of the form explaining what happened.

33:44

Back to the game board. We've revealed the next letter A in our mystery word.

33:55

All right, in the next part of our training, we'll share guidance on navigating through common challenges related to

34:01

federal fund draw downs. We have many practical tips to make your grant management experience efficient and

34:08

stress-free. If you need more information about the actual step-by-step process to draw down

34:13

grant funds, or would like to attend upcoming free trainings on the ASAP system, we're dropping a link to the ASAP training page in the chat window.

34:24

For OVC awards, the entire award amount will not be paid out in a lump sum, but rather over time as project costs are

34:32

incurred. Recipients should request funds based on reimbursement requirements.

34:38

Draw down requests should be timed to ensure that federal cash on hand is the minimum needed for disbursements to be made immediately or within 10 days.

34:48

If not spent or dispersed within 10 days, funds must be returned to the awarding

34:54

agency. Your entity's written policy and procedure for cash management should

35:00

ensure that federal cash on hand is kept at or near 0. For initial enrollment,

35:06

Your entity's electronic business point of contact in SAM.gov is considered your ASAP point of contact.

35:15

They will receive an e-mail with ASAP enrollment and login instructions.

35:20

The ASAP Enrollment Checklist and the DOJ User Training ASAP provide more information on how to enroll.

35:31

There are two request types. One is reimbursement, which is a payment after funds are spent

35:37

based on actual expenditures, including indirect. The other is advance payment before spending, based on immediate cash needs.

35:46

This can be based on anticipated cost for obligations not yet recorded.

35:51

Some examples of a reimbursement request is an entity can keep a grant ledger summarizing award expenditures for each federal award.

35:59

This Ledger shows the total expense in each budget category including indirect. The actual total spent is the amount to be requested for reimbursement. Or, an

36:10

advance request, An entity can request funds and an advanced draw down to cover payroll that

36:15

is scheduled within 10 days. We recommend a reimbursement request to minimize errors and decrease the chance

36:22

of having to return federal funds that weren't dispersed immediately.

36:28

Let's see how Wind Haven Center approaches drawdowns. Rose noticed that the next draw down date was coming up.

36:35

Since drawdowns need to be done on time, she wanted to make sure everything was ready. She reached out to Taylor, the financial lead, to coordinate.

36:43

Taylor pulled up their documented procedures for draw downs, and together they reviewed it to ensure they were following the correct steps.

36:50

Let's walk through their process. They started by identifying the draw down date early, and building a clear,

36:56

actionable plan around it. Next, Rose collaborated with Taylor to align on

37:01

next steps and confirm required documentation. They then assigned responsibilities and set deadlines to keep the team on track

37:09

and accountable. To support the team, they shared key resources like the DOJ

37:15

Financial Guide and the ASAP Drawdown checklist. Finally, they held their regular check-ins

37:21

to track progress, resolve issues, and adjust plans as needed. Despite following their detailed process, Rose and Taylor encountered an unexpected

37:30

system change. Let's take a look at what they saw.

37:38

Here's an example of the screen that Taylor sees when he logs into ASAP to initiate the draw down request.

37:44

Take note of the field called Payment Justification.

37:52

Taylor's attempting to make a draw down as scheduled, but he keeps receiving an ASAP error message.

37:58

The errors- The message says, Error 9096. Payment Justification is required for payment requests.

38:06

He checked the entity's policies and procedures and followed each step. Taylor's at a loss and cannot figure out what this means.

38:14

Rose works with Taylor to contact OVC Financial Management Resource Center. Through their financial specialists, they learned that this is a new

38:21

requirement for draw downs. Let's take a minute to discuss the issue that Rose and Taylor encountered when

38:27

attempting to complete a draw down. Starting May 19th, 2025, all payment requests submitted through

38:34

ASAP will require a brief written justification. It's crucial to enter this justification during the initial step of the payment

38:43

request. For summary payments, that is, multiple payment requests from different

38:48

ASAP accounts for one bank deposit, You'll need a justification for each request.

38:55

See the link in the chat for further guidance.

39:01

When they noticed a change in federal requirements for ASAP draw downs, Taylor immediately worked with his entity's management to update this change

39:09

in their internal policies and procedures. Entity management holds ultimate responsibility for establishing,

39:15

maintaining, and monitoring internal accounts. Policies and procedures are the backbone of your grant financial management system.

39:23

They define how your organization plans, tracks and reports on every dollar, ensuring compliance, clarity, and confidence from start to

39:31

finish. When it comes to draw downs, it is important to have written policies

39:36

and procedures developed and implemented, to ensure that draw downs are one- the minimum needed for disbursement to be made immediately or within 10 days.

39:45

Two- based on actual cost incurred when making a reimbursement request.

39:51

Three- reviewed and approved by management. Four- Supported by documentation which is maintained for future auditing purposes.

40:03

There are a number of things you can do to ensure the effective management of draw downs. Plan ahead.

40:09

Schedule drawdowns to ensure funds are available when needed. Choose clear start and end dates for your drawdown period to avoid last-minute

40:17

issues. Avoid excess cash. Only draw down what's needed for immediate expenses to stay compliant.

40:26

Maintain records. Keep detailed records of each drawdown, including justification for the request,

40:32

who approved and performed it, and the date of the draw down. Keep source documentation. Maintain backup copies of all financial

40:42

documents, and use your ASAP resources. Refer to the ASAP enrollment checklist, FAQs, and DOJ training materials.

40:52

Sign up for updates at the website we put in the chat.

41:01

Next, we're going to talk about award conditions and drawdowns. Award conditions directly impact your ability to access funds.

41:09

These conditions are listed in your award package. For example, when you first receive an award,

41:16

you might only be allowed to draw down 10% of the amount until your budget is cleared.

41:22

Your ASAP balance shows how much grant funding is available to request. You can view it in JustGrants under the Funding Balance and Availability tab.

41:32

Statuses like "Award on Hold" or "Restricted" usually mean a condition hasn't been met,

41:38

such as submitting a report or completing a training. Once conditions are met, full drawdown access is restored.

41:47

Let's look at the example on the screen. Circle one at the top shows a pink banner.

41:52

ASAP account is in suspended status. Drawdown not available. Circle 2 shows where to click for the funding Balance and availability details.

42:02

Circle three shows the ASAP account status. In this case, it's suspended.

42:08

Circle four shows the ASAP balance, and Circle five shows the total hold amount.

42:15

This amount is unavailable until the award condition is met.

42:23

Grants financial management can be overwhelming, especially with all the acronyms and systems involved.

42:29

For Rose and her team, one major challenge was figuring out which government system to use and when.

42:36

This slide compares JustGrants and ASAP. JustGrants is for managing grants: applying, tracking, reporting,

42:44

and viewing award conditions. ASAP handles payments: requesting, receiving, and returning funds.

42:52

Knowing the difference helps users stay compliant and manage their grants effectively.

43:00

We have two resources we would like to highlight to help support you with the ASAP system.

43:05

The first resource is an ASAP Drawdown guide sheet which our team has curated to summarize some key takeaways to guide grantees.

43:13

It includes ASAP drawdown tips. The requesting payments on ASAP

43:19

and DOJ user training ASAP provide step-by-step guidance on how to initiate, submit, modify,

43:25

and inquire about the status of payment requests. They also clarify the roles and responsibilities of users,

43:33

ensuring everyone understands their specific duties. And finally, the Department of the Treasury offers

43:39

regular trainings and webinars on ASAP. Be sure to bookmark their website. We'll drop the links to these resources in the chat.

43:51

And now we'll head back to our board game. We're next headed into the ASAP Arroyo.

43:56

Let's check out question #3. Question 3 under Category ASAP.

44:03

What are some of the benefits of scheduling regular federal fund draw downs? I invite you to raise your hand or if you would like to come off mute and help

44:11

answer, you may also enter responses in the chat window. What does anybody have to say about the importance of regular ASAP draw downs?

44:25

Cash flow, good one, yes. Anybody else?

44:31

Yep, good answers. Yes.

44:39

Do those go in line with what we had to say? Some of ours are: Regular draw downs ensure timely access to funds,

44:45

supporting the smooth execution of grant activities. Cash flow. They help maintain cash flow, allowing grantees to meet project

44:53

deadlines and avoid delays in spending funds. And additionally, regular draw downs can streamline the

44:59

process for entering and reviewing financial data, reducing errors and improving accuracy.

45:05

And remember, your entity should have a policy and procedure in place for ASAP, including the timing and frequency for

45:11

draw downs. By maintaining detailed records of all draw downs, including backup documentation, grantees can support internal reviewing

45:19

and auditing processes. All right, great job answering that last question.

45:26

We've uncovered the letter P for our mystery word. Let's move on to question 4.

45:39

Question #4, category: ASAP. You're the financial manager at your organization.

45:45

It's time to request your next draw down in ASAP. But you're missing internal documentation needed to justify the amount.

45:53

What could be missing? Feel free to raise your hand if you'd like to come off mute, or put some answers

46:01

in the chat. Again, you're getting ready to make a draw down

46:08

in ASAP, but there's some internal information you need, but it's missing.

46:13

What could that be for you? What would you be looking for?

46:25

Expenditure totals, financial information, time sheets, source documents, yes, yes.

46:34

Some previously filed FFRs. OK, good, good.

46:40

Some historical documents, yes, absolutely. So we're looking for things like the grant general ledger,

46:48

supporting documentation like receipts. How about internal management review and approval for that draw down?

46:57

What about the payment justification wording? So all your answers in the chat are great and keep in mind a couple thoughts on

47:06

best practices. One is to clarify your own internal requirements.

47:12

ASAP itself doesn't require documentation, but your entity may have internal

47:17

policies that say you do. And the other one is know the system limits.

47:23

For example, ASAP is closed the last three days of the month, so you won't be able to make a draw down

47:29

during this time. You'll want to plan accordingly.

47:36

All right, great job helping us navigate through the ASAP Arroyo. Our 4th Mystery Letter I has been revealed.

47:49

As we move into the final section of our training, we will focus on charting your course for handling excess cash.

47:55

In this section, we will provide you with valuable tips, resources, and guidance to develop a clear and

48:01

effective pathway for managing excess funds. In the context of OJP grants financial management,

48:09

excess cash refers to funds that have been drawn down from the grant but are not immediately needed for expenses.

48:16

This situation can occur when an entity withdraws more money than required for its immediate needs, leading to unspent balances.

48:25

Some key points to remember are: timely use. Excess cash should be avoided by drawing down funds only as needed to cover

48:32

immediate expenses. Compliance. Holding excess cash can lead to compliance issues, as grant guidelines

48:39

typically require funds to be used promptly for their intended purposes.

48:44

Financial Management. Effective cash management practices help ensure that funds are available when needed without accumulating excess balances,

48:52

managing drawdowns, and carefully helps maintain financial integrity and ensures compliance with grant requirements.

49:00

The DOJ Grants Financial Guide references this topic on page 17. And keep an eye out for our website for the upcoming Excess Cash Guide sheet.

49:13

Let's see if Wind Haven Center has any experience with excess cash. Well, as it turns out, during a routine reconciliation,

49:21

Rose identified an unexpected surplus of cash, highlighting the effectiveness of internal controls her team developed.

49:29

To address the potential risks associated with excess cash, Rose and her team devised a comprehensive plan to ensure proper handling and

49:38

accountability. Understanding the significance of the issue, Rose took the initiative to engage with Taylor,

49:44

scheduling a meeting to discuss the findings and determine the best course of action.

49:53

Rose emphasized the importance of communication and regular check ins, to help the finance team monitor their progress.

49:59

By working closely together, Rose, Taylor, and the team were able to navigate the complexities of addressing excess cash and maintain the financial integrity of

50:09

their grant. Thanks to Wind Haven Center's excess cash procedures, they were able to identify excess cash before receiving a letter from the

50:18

Department of Justice OCFO. In this instance it was a simple mistake:

50:23

Taylor accidentally transposed numbers when entering the drawdown amount in ASAP,

50:28

resulting in too much money. To remedy the situation, Wind Haven Center simply returned

50:34

the difference between what Taylor intended to draw down and what he actually drew down.

50:40

Catching it early allowed Taylor the financial lead to move forward with accurate financial statements.

50:51

Common reasons excess cash occurs are that funds are drawn down before expenses

50:56

are ready to be paid, program or procurement delays cause spending to be postponed, forecasting errors leads to requesting

51:04

more funds than needed, or internal procedures breakdown, resulting in untimely or undocumented draw downs.

51:12

Some best practices are to follow your internal policies and procedures that align with the DOJ Grants Financial Guide, use checkpoints to confirm timing and

51:22

amounts before requesting funds, and keep clear records of all draw downs, disbursements, and justifications.

51:33

A common challenge is to proactively determine if there's excess cash.

51:38

Checking the ASAP balance alone may not provide a true picture of any excess cash.

51:44

Grantees can identify excess cash by comparing the ASAP balance to actual

51:50

expenditures. We've prepared an excess cash calculation exercise.

51:56

Please locate this practice worksheet on page 11 of your resource packet.

52:01

Using the table, we can calculate whether an entity has excess cash. In line 1, federal cash receipts,

52:10

Let's say that's 150,000. Line 2, federal cash disbursements.

52:17

Let's say that's 132,500. Line 3,

52:23

Federal cash on hand, is line 1 minus line 2, which is 17,500 in the positive.

52:32

So based on this exercise, the entity does in fact have excess cash. They need to return $17,500.

52:47

Let's think back to Wind Haven Center. Rose discovered that their entity had excess cash.

52:53

Taylor would need to return the funds through ASAP. Returning funds in ASAP is a four-step process.

53:00

Here's the step-by-step overview: One, log into ASAP. There's a specific section for returning funds.

53:08

Two, follow the return ACH payment process starting by selecting the award.

53:14

Three, retrieve the payment information. Four, enter the return details including amount to return,

53:22

confirm the return, and then take a screenshot. This is optional but helpful.

53:28

Document everything by keeping records of the amount, why the funds are being returned, confirmation from your bank, and any

53:36

communication with the awarding agency.

53:50

Our last section of the game board is the excess cash estuary. Let's move to question #5. Question #5 for excess cash is, what is the appropriate

53:59

action to take if you find that your government grant has excess cash at the

54:05

end of the funding period? A, return the excess cash to the granting agency,

54:11

B, use the excess cash for unrelated expenses, C, transfer the excess cash to another project or D, keep the excess cash for the

54:22

next funding period. Let's see. Everybody is going to A. A, A, A, without variation.

54:31

Good job. The correct answer is A. You do want to return that excess cash to the granting agency.

54:36

No ifs, ands or buts. Now we're getting close to revealing the final letter

54:42

as we embark on the last scenario spot. Let's move to question 6.

54:48

Question number six, category: excess cash. What is one thing you would take away from Rose and Taylor's experience?

54:58

And as a reminder, Rose discovered a mistake that led to excess cash which had to be returned.

55:05

It was Taylor transposed a number when making a draw down. So is there anything you learned from that problem or their solution?

55:16

Feel free to share any lessons learned, key takeaways, something you intend to share with colleagues. I'm seeing in the chat,

55:27

Controls are very important. Making sure you have a reviewer, establishing regular procedures.

55:34

Yes, trying to identify excess cash early or prevent it to begin with.

55:39

More on internal controls. Yep, internal audits or checks.

55:44

All those are great examples of key takeaways around this excess cash

55:51

scenario. Thanks everyone.

55:56

We have made it through the estuary and our final letter is M.

56:02

If you unscramble the letters, what mystery word do you get?

56:07

Please post your guesses in the chat.

56:17

All the letters are on the screen. If anyone is good at word games... Ah, somebody got it right as the slide was

56:27

switching. Thank you. Yes, impact. Our mystery word is impact, and the reason the word was chosen is because you all

56:35

are here to help make a difference. The work that you do is needed and necessary to help victims of crime and

56:42

support your mission and vision. On behalf of OVC Financial Management Resource Center,

56:48

thank you for the hard work you do every day. We hope we were able to answer your questions as we went along.

56:55

If you have any additional questions, feel free to contact us at askfmrc@usdoj.

57:04

gov. And if you're staying for the Knowledge Cafes, you'll have time to ask questions during our breakout rooms.

57:16

Now let's recap the other resources that help support our content for this session. They're featured on this slide.

57:22

You will also receive an e-mail communication from us after this session that will include a recording along with these resource links.

57:34

Today we covered topics related to navigating your OJP grant with confidence. We hope that you can join us for the launch of Session 3 of this four-part

57:43

journey through our Grants Financial Management series. Session 3 will cover topics related to grant budgets.

57:51

Information about specific session dates and times will be coming soon through our

57:56

OVC Financial Management Resource Center's newsletter and e-mail, so stay tuned.

58:03

Before we say goodbye, we'd love to hear from you on how to improve our trainings and to hear what future session topics you would like to

58:10

request. So please scan the QR code on the screen, click on the link in the chat,

58:15

or fill out the form that launches after exiting the session. Remember, the OVC Financial Management Resource

58:23

team is here to support you, so please reach out if you need help managing the financial aspects of your OVC grant.

58:30

Again, if you-