AREERA Moving Forward Western Region CSREES Administrative

AREERA – Moving Forward Western Region CSREES Administrative Officer’s Meeting Monterey, California October 4 – 6, 2005 Janet Downey, Staff Accountant OEP, POFMB, Oversight Section

AREERA Primary Audit Findings • Established target percentages too low • Funding released for only conditionally approved Plan of Work • CSREES not ensuring target spending met • 1890’s spending below match • Governor’s Report not required

Pending Changes • Review of previously submitted CSREES-REPT • Review of SF-269’s for FY 2000 -2003 • Revised Administrative Guidance on targets previously set • Governor’s Report • Revised Administrative Guidance on the Plan of Work

Re-evaluate Targets • Construct listing of projects • Determine nature of activities • Associate draw-downs and expenditures with projects • Documented “good faith” estimate • Re-submit CSREES-TARG

Points to investigate • CRIS • Internal accounting documents: – Time and effort reporting – Documents/payment vouchers containing accounting codes related to multistate and integrated activities

Points to investigate • • Governor’s Report Program/activity files Interviews with staff Smith-Lever Budget for 1997

Revised Targets • • Effective beginning FY 2007 Not retroactive Targets not previously met Post-Waiver requests for failure to meet previous targets • Funding recovery

Revised CSREES-REPT • One form covering all categories • Carryover • Do not submit a Final Report until all requirements for that year are met • Certification statement • Auditable

Record keeping • Retain 1997 records until revised target accepted • Track AREERA expendituresmanually if necessary

Auditable Documents • Plan of Work* • Annual Report of Accomplishments and Results* • SF-269, Financial Status Report • SF-272, Federal Transactions Report • CSREES-REPT* • Certification of Offset • Certification Regarding Lobbying *only as it pertains to Section 105 and 204 requirements of AREERA

Time Table • January 2006 – Revised Administrative Guidance for comment • March 1, 2006 - Final revised Administrative Guidance • March 31, 2006 – OGC clearance • April 15, 2006 - Publication date

Time Table (continued) • June 15, 2006 - LGIs submit Revised Targets • July 15, 2006 – CSREES sends approval letters • October 1, 2006 – Revised Targets take effect

Questions? ?

Improper Payments Information Act of 2002

Law requires Federal Agencies to: • Review every Federal program, activity, and dollar to assess risk of significant improper payments • Develop a statistically valid estimate to measure extent of improper payments in risk susceptible programs • Initiate process and control improvements to enhance accuracy and integrity • Report and assess on an annual basis

Required reporting: • Agency annual risk assessment on programs above the $10 million threshold • Plan of action including testing • Report to OCFO annually for inclusion in USDA’s Performance and Accountability Report after 2004

Audit Findings • CSREES misinterpreted what was required and was not performing required risk assessment

OIG Recommended • Identify risk factors unique to the programs • Document internal controls designed to mitigate risk factors • Test transactions to determine error rates • Report annually to USDA OCFO

Results • CSREES participates in the IPIA Workgroup • Testing • Corrective Actions

Release of Formula Funds • Requirements – – – – Approved POW/Program of Research CSREES-REPT Certification of Offset Certification Regarding Lobbying SF-269, Financial Status Report CSREES-2008 for Extension Budget for Extension • Formula Funds Reporting web page • Manual tracking system • Automated system

Formula Funds Reporting Page • Table of Contents: Fund types grouped by recipient type • Fund type pages – Forms required – Due date – How to submit if not online: • . pdf files in email recommended • Fax • Regular or Overnight mail

Primary Contact Person • All personnel who need to know • Submit prior to start of fiscal year

Questions? ?

Chapter III – Administrative Manual for Cooperative Extension

Outline • • • Scope Purpose Authority/Responsibility Eligibility Definitions Purpose of Funding

Outline • Extension Cycle – – Plan of Work Estimated Certification of Offset Certification Regarding Lobbying Primary Contact Person

Outline • Budget – Allowable and Unallowable Costs – Time and effort reporting – Construction – Vehicles – Travel – Contracts – Indirect Costs

Outline • SF-272, Financial Transactions Report • SF-269, Financial Status Report • Final Certification of Offset • Annual Report of Accomplishments & Results • CSREES-REPT • Performance Rating Assessment Tool (PART)

Outline • Accountability Issues – – – – Carryover Matching & Cost Sharing Program Income User Fees Intellectual Property Conflict of interest Subcontracts

Outline • Accounting Operations – – Internal Controls Audits Risk Assessment Contingency Plan-continuity of operations

Outline • Formula Calculation for all Extension formula • Payment to the States

Questions/Suggestions

Contact • Janet Downey, Staff Accountant Oversight Section, POFMB USDA, CSREES 800 9 th St, SW Washington, DC 20027 202 -205 -0453 (voice) 202 -401 -7752 (fax) jdowney@csrees. usda. gov