Section 1512 Reporting

1. The American Recovery & Reinvestment Act Section 1512 Reporting

2. Why Are We Here POLICY • Who reports • What to report to Feds • What to report to OFM • OFM Lead: Julie Murray Julie.Murray@ofm.wa.gov 360-902-0647 TECHNOLOGY • How to register • How to submit to OFM • OFM Lead: Muoi Nguy Muoi.Nguy@ofm.wa.gov 360-664-7699

3. Section 1512 Report Basics • Section 1512 is contained in the Recovery Act itself and requires additional reporting to inform the public on how funds are expended at the local level. • Who is receiving Recovery Act dollars and what amounts? • What projects and activities are being funded? • What is project completion status and impact on job creation/retention?

4. Section 1512 Report Basics • Section 1512 is a report that is IN ADDITION to any other grant or award requirement. • Section 1512 terms/requirements may differ from what is required under grant programs – both new grants and existing programs supplemented with Recovery Act funds. • Non-compliance with Section 1512 reports is a violation of the award or grant and could lead to repayment of those amounts.

5. Section 1512 Report Basics • Report due by the 10th day after the end of the calendar quarter. • October 10, 2009 • January 10, 2010 • April 10, 2010, and so on. • Report is due by 11:59 pm EASTERN TIME, so that is 8:59 pm PACIFIC TIME. Website is open on weekends. • Reports are CUMULATIVE. • First report covers period of the inception of the Recovery Act through September 30, 2009.

6. Washington’s Approach • Agencies report directly to FederalReporting.gov • Agencies will supply OFM with a copy of FederalReporting.gov submission. • Agencies will supply OFM will additional information to supplement Section 1512 Report

7. Governor Expectations • All state agencies will report: • TIMELY • COMPLETELY • ACCURATELY • No material omissions or significant reporting errors • Washington receives an A+

8. Guidance on Reporting

9. Guidance on Reporting • OFM expects that agencies will FOLLOW YOUR FEDERAL AWARDING AGENCY’S GUIDANCE. • Federal agencies will review your reports to determine compliance. • OMB is deferring to federal agencies and allowing federal agencies to deviate from OMB guidance and instruction. • Follow your federal awarding agency’s guidance FIRST! • OMB and OFM guidance are SECONDARY source. • Use FederalReporting.gov help-desk as LAST resort. • OFM needs to know when our advice differs from what your agency tells you. Email it to Julie.Murray@ofm.wa.gov

10. Guidance on Reporting FOLLOW YOUR FEDERAL AWARDING AGENCY GUIDANCE

11. Guidance on Reporting • Many federal agencies are providing their own supplemental guidance and tip sheets on information required for prime recipients. • Check your federal awarding agency directly. • Also check: http://www.recovery.gov/?q=content/agency-guidance-reporting. • If you get additional guidance, tip sheets, emails, etc. on how to report, please provide a copy to Julie.Murray@ofm.wa.gov. We can post the information on RecoveryShare.

12. What Programs Subject to Section 1512? Division A Programs - YES Division B Programs - NO Entitlement Programs – FMAP, DSH, etc. Extended unemployment benefits Tax Provisions Bond and loan programs • State Fiscal Stabilization Funds • Competitive grant programs • Infrastructure programs Most of the Recovery Act is contained in Division A

13. What Programs Subject to Section 1512? WHO REPORTS IS A MOVING TARGET • Some Division B programs are being required to report. • Check: • http://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-21-supp1.pdf • Talk to your federal awarding agency.

14. Who Reports? YOU DO! Most state agencies are either a: • Prime Recipient • Sub-recipient • Vendor • Any combination of above

15. What am I? • PRIME RECIPIENT is a non-Federal entity that receives Recovery Act funding as Federal awards in the form of grants, loans, or cooperative agreements directly from the Federal government • SUB-RECIPIENT is a non-Federal entity that expends Federal awards received from another entity to carry out a Federal program but does not include an individual who is a beneficiary of such a program.

16. What Distinguishes a Vendor from a Sub-Recipient? • VENDOR is a dealer, distributor, merchant, or other seller providing goods and services that are required for the conduct of a federal program. • INDIVIDUAL is generally defined as a sole proprietorship and not beneficiaries of a program.

17. What Distinguishes a Vendor from a Sub-Recipient? Vendor Sub-Recipient Determines who is eligible to receive what federal financial assistance; Has its performance measured against whether the objectives of the Federal program are met; Has responsibility for programmatic decision making; Has responsibility for adherence to applicable federal program compliance requirements (the terms and conditions of the federal award are carried forward to the sub-recipient) Uses the federal funds to carry out a program of the organization as compared to providing goods or services for a program of the prime recipient. • Provides the goods and services within normal business operations; • Provides similar goods or services to many different purchasers; • Operates in a competitive environment; • Provides goods or services that are ancillary to the operation of the Federal program; and • Is not subject to compliance requirements of the Federal program.

18. The “Prime Recipient” • June 22th OMB Guidance - • A sub-recipient is a non-Federal entity that expends Federal awards received from another entity to carry out a Federal program but does not include an individual who is a beneficiary of such a program. • Supplemental OMB Guidance to NASBO – • All state agencies are prime recipients. State agencies cannot be sub-recipients. All funds between state agencies must be aggregated. • Department of Education – State Fiscal Stabilization Funds – • All state agencies receiving funds through their Governor’s Office are to be reported as sub-recipients.

19. The “Prime Recipient” – OMB Guidance

20. Prime Recipient – Washington Approach

21. Prime Recipient - Washington Approach AGENCY THAT RECEIVED FEDERAL AWARD IS PRIME RECIPIENT • Unless otherwise directed by your federal awarding agency, another state agency should be reported as a sub-recipient. • If we are to err, it will be on the side of more disclosure and transparency. • If you are directed otherwise, let us know. Email Julie.Murray@ofm.wa.gov

22. Prime Recipient Reporting Duties WARNING • Current guidance CONFLICTS: • The Recovery Act • Federal Regulations • OMB June 22nd Guidance & Clarification • Webinars • Data Dictionary

23. Prime Recipient Reporting Duties • This presentation follows the published Data Dictionary. • Follow your federal awarding agency guidance. • OFM is providing you guidance to follow in the absence of more concrete information from your federal awarding agency. • What you need to report: • Copy of your federal award • External communications and GMAP materials • Information collected from sub-recipients and vendors

24. Award Description • Data Dictionary - Title and general description with purpose of each funding action if any. Should capture overall purpose of award. • Can be found on Federal Award Notice • OFM Guidance - Add whether the funds are: • Formula funds • Competitive grant • Cooperative agreement • Block grant

25. Award Description Examples • Competitive grant for approved AmeriCorps programs. • Formula funds to capitalize on the state’s Drinking Water State Revolving Fund. • State Fiscal Stabilization Fund (formula funds) - Education Fund- for the support of public elementary, secondary, and postsecondary education and, as, applicable, early childhood education programs and services. • Formula grant program funds for crime victim assistance.

26. Project/Program Name/Title • Data Dictionary – Enter Project Name or Project/Program Title as it EXACTLY appears on Federal Award Notice • OFM Guidance - None

27. Project/Program Name/Title Examples • ARRA AmeriCorps competitive grant • WA State Funds for the DWSFR program - ARRA • State Fiscal Stabilization Fund – Education Grants • Recovery Act – OVC FY 09 VOCA Victim Compensation Formula Grant Program.

28. Quarterly Activities or Project Description • Data Dictionary - Description of the overall purpose and expected outputs and outcomes or results of the award and first-tier sub-award(s). For an award that funds multiple projects such as a formula block grant, the purpose and outcomes or results may be stated in broad terms. • OFM Guidance: Use information already contained in: • Grant application • Status reports to your federal awarding agency • External communications and website • GMAP • Field most likely used by Governor to describe the program.

29. Quarterly Activities or Project Description Examples • Allow the state of Washington to capitalize its revolving loan fund for the financing for the construction of drinking water facilities, green infrastructure, program administration and drinking water related activities. Primary purposes are to preserve and create jobs and promote economic recovery through the investment of infrastructure projects. We anticipate XX projects benefiting XX household and business being funded.

30. Project Status Guidance • Data Dictionary – Evaluation of completion status of the project, activity or federally awarded contract. Evaluation should be based on performance progress reports and other relevant non-financial information. Chose: • Not started; • Less than 50% completed; • Completed 50% or more; • Fully Completed. • With awards that have multiple projects, report what is closest to the average rate of performance.

31. Project Status Guidance • OFM Guidance - Performance differs from expenditures. A contract or program may be 75% complete yet no Recovery Act funds have been expended through a draw-down, reimbursement or invoice. An agency would report “completed: 50% or more”. • Caveat: Some federal awarding agencies are saying to use expenditures to complete this data element.

32. Activity Code Guidance • Data Dictionary – Use North American Industry Classification System (NAICS) or National Center for Charitable Statistics (NTEE-NPC) • Searchable databases can be found at: • NAICS: http://www.census.gov/naics/ • NTEE-NPC: http://nccsdataweb.urban.org/PubApps/nteeSearch.php?gQry=all-core&codeType=NPC. • You are allowed up to 10 activity codes to use.

33. Activity Code Guidance • OFM Guidance - Be as specific as possible. • In the case you cannot fit all the detailed codes within the given constraints, choose the 10 codes that represent the majority of the activities. • Infrastructure programs must use NAICS Codes.

34. Job Guidance • Data Dictionary - Single piece of data. NOT being asked to measure job created separately from jobs retained. • In reporting number of jobs, EXCLUDE: • Employment impact on materials suppliers and central service providers (so-called “indirect” jobs) • Employment impact on the local community (“induced” jobs). • Jobs outside the United States • Uncompensated jobs (unpaid internships, volunteers, etc.) • Employment that is not directly charged to Recovery Act supported projects/activities.

35. Job Guidance • Convert jobs “full-time equivalent” (FTE) jobs. In order to perform the calculation, a recipient will need: • Total number of hours worked that are charged to Recovery Act funding. • Include all forms of compensation. • Number of hours in a full-time schedule for a quarter. In general, a full-time schedule should be expressed for the quarter as 520 hours. Cumulative Recovery Act Funded Hours Worked= FTE Cumulative Hours in a Full-Time Schedule

36. Job Guidance • You MUST capture jobs from: • You, as prime recipient • Any of your first-tier vendors • Your sub-recipients • Your sub-recipients’ first tier vendor • A first-tier vendor is anyone that you or your sub-recipients have a contractual relationship with for the procurement of goods or services.

37. Job Guidance • Analyze FTEs to show to show ONLY the Recovery Act portion of the project or program. • Example: Five projects 80% funded by state or federal dollars and 20% of it is funded by Recovery Act dollars. This person is entirely devoted to managing these projects. • Person is keeping timesheets for work spent on ONLY Recovery Act projects or activities. If 8 hours of time is spent 100% on Recovery Act activities, then 8 hours out of a 40 hour workweek, gets you a 0.2 FTE. •  If the person isn’t keeping timesheets, another option is to prorate the workweek. In this case, Recovery Act is 20% of the funds. Report 20% of 1 FTE, which is 0.2 FTE.

38. Which Jobs Counts?

39. ALL OF THEM

40. Second-Tier Jobs • First-tier contractors and vendors are the minimum amount of information to collect. • Federal awarding agencies are more likely to expect second-tier vendor information on infrastructure projects. • OFM Guidance - We would like second-tier vendor (vendors of your vendors) job information. However, consider: • Size of purchase. The more minor the purchase, the less need to collect the information. • Quality of the data. Does including subcontractors materially reduce the accuracy of your numbers. • Ability to distinguish between indirect and induced jobs.

41. Job Guidance Who Reports Reports what? You, as prime recipient Any of your first-tier vendors Your sub-recipients Your sub-recipients’ first-tier vendor • Prime Recipient must report all job information. • Cannot be delegated to anyone else. • Duty to collect, report and ensure accuracy. • Includes maintaining records of sub-recipients and vendors to verify jobs data

42. Do You Have a Process to Collect Jobs Data?

43. Job Description Guidance • Data Dictionary – Narrative description of the employment impact of the Recovery Act funded work. Description may rely on job titles, broader labor categories, or the recipients existing practice so long as terms are widely understood. • OFM Guidance - Describe how you collected job information and use North American Industry Classification System (NAICS) for descriptions • Minimum obligation to report at 2-digit level and include both digit and the written description. • NAICS: http://www.census.gov/naics/

44. Job Description Example • Collected specific data from sub-recipients and vendors to determine FTE attributable to Recovery Act funding. FTEs are providing educational services in elementary and secondary schools (NAICs 6111) and institutions of higher education (NAIC 6113) • Funds being used to support 220 FTEs correctional officers (NAIC 92214) based on statewide accounting/payroll information.

45. Total Amount of Recovery Act Expenditures Guidance • Data Dictionary - Amount of recovery funds received that were expended to projects or activities (‘‘Federal Share of Expenditures’’). • OFM Guidance – Cut-Off Date • Report expenditure data posted in the official accounting system (AFRS) as of the last calendar day (the Friday before, if the last calendar day falls on a Saturday or Sunday) of the last month of the quarter. Financial data related to expenditures in that calendar quarter, but posted after the last calendar day of the month, should not be included in the Section 1512 report. • This cut-off date flows through the entire report. Use whenever financial data is requested.

46. Total Amount of Recovery Act Expenditures Guidance • OFM Guidance continued… • Include all expenditure data, both cash and accruals, posted as of the cutoff date. Do not include estimated expenditures for the period, such as cost allocation, labor distribution or payroll costs, posted after the cutoff date. • DO NOT use the Section 1512 report adjustment period (Day 11 through Day 29) to update expenditure data to reflect data posted after the cutoff date. • If there is some reason that you cannot follow this guidance, contact Julie.Murray@ofm.wa.gov to discuss.

47. Infrastructure – What is it? • Check with your federal awarding agency. Common themes are: • Any project that is subject to Chapter 39.04 RCW (Public Work), such as the construction, alteration, or repair of public buildings or public works. Excludes minor repairs and decoration; however, many federal awarding agencies are considering this infrastructure. • Any project that the Recovery Act or federal award defines or describes as an “infrastructure” project. • Any project requiring a Governor’s certification.

48. Infrastructure Guidance • Total Recovery Act Infrastructure Expenditure • Data Dictionary – Total amount of Recovery Act funds expended on infrastructure • OFM Guidance – This amount should be equal to or less than total Recovery Act expenditures. Use same cut-off date. • Infrastructure Rationale • Data Dictionary – Chose one or more of five purposes to chose from. • OFM Guidance – Include information on how your agency prioritized projects.

49. Infrastructure Rationale Examples To preserve and create jobs and promote economic recovery, as well as invest in environmental protection infrastructure that will provide long-term benefits, Washington State distributed Recovery Act transportation funds by 1) advancing projects and jobs that would have otherwise been delayed due to funding shortfalls, 2) advancing projects and jobs that would address high priority highway preservation needs, 3) selecting projects that assist communities most impacted by the recession.

50. Place of Performance Guidance • Primary Place of Performance • Data Dictionary – No guidance • OMB FAQ - List the municipality impacted by the largest portion of the Recovery Act award. In the event that it is not possible to determine a single place that is receiving more award funds than others, the State should list the state capitol as the primary place of performance