Post on 22-Jan-2016
description
transcript
July 30, 2003 1
SWCAP Recoveries
July 30, 2003 2
SWCAP Recoveries
• Recoveries mean the recovery of indirect costs from the federal government.
• Indirect cost includes both the State departments indirect cost and the statewide indirect costs, SWCAP.
July 30, 2003 3
SWCAP Recoveries - continued
• Only the SWCAP is transferred to the General Fund.
• Process of transferring SWCAP to the General Fund is shown on the flow chart on the next slide.
July 30, 2003 4
SWCAP Recoveries - continued
Billfederal fund
for direct plus indirect costs
Receipt infederal
fund
TransferSWCAP to
General Fund
July 30, 2003 5
SWCAP Recoveries - continued
• Federal government reimburses a State department for indirect costs, a portion of the recoveries is attributed to SWCAP.
• Portion representing SWCAP recoveries must be transferred to the General Fund.
July 30, 2003 6
SWCAP Recoveries - continued
• Government Code sections
13332.0113332.02
Authority to recover SWCAP and transfer to the unappropriated surplus of the General Fund are specified in these sections.
July 30, 2003 7
SWCAP Recoveries - continued
• State Administrative Manual Section 8755.1 et. al specifies the State policy on SWCAP recoveries and transfers.
July 30, 2003 8
SWCAP Recoveries - continued
• SWCAP is recovered through an Indirect Cost Rate Proposal (ICRP) or a Cost Allocation Plan (CAP) from CALSTARS or non CALSTARS departments.
July 30, 2003 9
SWCAP Recoveries - continued
• State departments must recover full costs associated with its programs and/or activities.
• View the presentation, Full Cost Recovery for additional information.
July 30, 2003 10
SWCAP Recoveries - continued
• Many components are included in an indirect cost rate proposal (ICRP).
• Attend an ICRP training class for additional information.
• Following are some of the federal regulations and guidelines.
July 30, 2003 11
SWCAP Recoveries - continued
• Federal regulations provide guidance for ICRPs and recoveries of indirect costs:• Federal Circular A-87 httpwww.whitehouse.gov
/OMB/circulars/index.html
July 30, 2003 12
SWCAP Recoveries - continued
• Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Agreements with the Federal Government (ASMB C-10).
http://www.os.dhhs.gov/progorg/grantsnet/index.html
July 30, 2003 13
SWCAP Recoveries - continued
• State departments will document any non-recovery of SWCAP budgeted amounts and send documentation to the SWCAP analyst:
• Grant Application
• Legislation
• Other relevant information
July 30, 2003 14
SWCAP Recoveries - continued
• SWCAP recoveries must be transferred to the General Fund within 30 days after the end of each quarter.
• No automatic transfer by the SCO.
• Federally funded State departments initiate the transfer process via a transfer letter.
July 30, 2003 15
SWCAP Recoveries - continued
• State departments prepare a “Transfer Letter.” (See SAM Section 8755.2 for example.)
• State Controller’s Transaction Request, form CA 504.
• Include specific information in the “Transfer Letter.” See next slide.
July 30, 2003 16
SWCAP Recoveries - continued
• Specific information includes:
• SWCAP transfer amount.
• Time period the recovery spans.
• General Ledger account.
• Current fiscal year:
• Budgeted SWCAP recoveries.
• Total SWCAP recoveries transferred.
. . . And . . .
July 30, 2003 17
SWCAP Recoveries - continued
• Prior fiscal year total SWCAP recoveries transferred.
• Person to contact for questions. Include:
• Name
• Telephone number
• Transfer letter signed by the chief of the accounting office.
July 30, 2003 18
SWCAP Recoveries - continued
• Send transfer letter and one copy to your Department of Finance (Finance) budget analyst.
• Finance budget analyst will review, contact you with any questions, sign both copies, forward the original to the State Controller’s Office, and send copy to the SWCAP analyst.
July 30, 2003 19
SWCAP Recoveries - continued
• State Controller’s Office (SCO) will transfer the funds.
• Finance SWCAP analyst will:
• Reconcile transfer letter with SCO records.
• Monitor recoveries.
• Contact State department on their recoveries or lack of recoveries.
July 30, 2003 20
SWCAP Recoveries - continued
• Yearly, Finance SWCAP analyst will contact State departments to review their SWCAP recoveries or lack of recoveries.
• Yearly, Bureau of State Audits will review State departments federal funds, budgeted SWCAP amount and recoveries, Finance recoveries reconciliations, and responses from State departments on recoveries or lack of recoveries.
July 30, 2003 21
• Amount of SWCAP budgeted and recovered is shown at this link: Link to SWCAP Historical Data
SWCAP Historical Data
July 30, 2003 22
We hoped this helped. Please view our other presentations.