Tips and Tricks for Funding Reimbursement and Compliance

APPLICABILITY Once funding for an infrastructure project is secured, navigating the rules and regulations associated with the award can be confusing and overwhelming. With the overarching federal funding guidelines of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200), Generally Accepted Accounting Principles (GAAP), and state and programmatic funding agency requirements, recipients wrestle with the details of documentation, invoice review, and good faith efforts of compliance. Entities have reservations about pursuing funding due to the work involved in managing a potential award. Concerns include penalties for non-compliance, disallowance of items included in invoices, impacts on project construction schedules and cashflows, lack of compliance knowledge, navigation of reimbursement and reporting portals, and development of working relationships with funding agencies. While these concerns are valid, the tips and tricks presented in this abstract will help set up entities with confidence to manage their post award processes successfully. DEMONSTRATED RESULTS AND OUTCOMES Methodology There are many ways an entity could organize invoices, pay apps, payroll, and documentation for compliance with the requirements of a funding award, and using the entity's existing accounting operational guidelines is a good place to start. With these guidelines in place to organize all project details, entities will remain compliant without having to reinvent the wheel. The Secondary Treatment Upgrades Project in Palo Alto CA is a perfect example of working within the existing system to provide a seamless review process for quick turnaround in receiving state level reimbursement. Grants and loans require project and financial reports to be submitted to the funding agency. This reporting can be challenging and different across every program, with reporting periods ranging from semi-annual to quarterly to monthly. When dealing with a funding award it is important to clearly understand reporting requirements and their implications. A major impact of a semi-annual reporting requirement is the learning curve remains steep for every iteration of programmatic and financial reports. The Santa Fe Reuse Pipeline project is a great example of managing a semi-annual reporting requirement, demonstrating how open and effective communication between various city employees (accounting, grant management, water department staff), the funding agency, and the staff supporting the effort at Carollo complete reports effectively. Over many years and experiences with managing post-award requirements, lessons have been learned, and can be summarized as follows: Tips: 1. Assistance from the funding agencies is always available, from phone calls to individual or group/project specific training and discussions 2. Experts in post award management are available and ready to help. There are also specific tricks that can guide entities in effectively navigating the post award landscape, to have fully funded reimbursement requests, complete files for compliance, and audit ready documentation: 1.Reach out to grant and loan program contacts early, via calls and email, to establish strong working relationships. 2.Review the contract to identify important dates, deliverables, and other information. 3.Prepare for the reimbursement process to effectively meet program deadlines in a timely manner, by establishing a document review process and setting up templates for upcoming data entry. 4.Set up project team collaboration with all the stakeholders internal to the project – project managers, construction managers, engineers, procurement, and financial staff. 5.Set expectations for the first few cycles of the reimbursement process. 6.Organize records and files in step with each request, to keep documentation audit ready. Result Waiting until the deadline is looming for reporting or an influx of cash is needed for ongoing construction are not the most productive times to learn about what the compliance and funding requirements are for a project. Proactively preparing and following the tips and tricks will set entities up for success, and for compliance with their award requirements. Clarity in terms of reimbursement of expenses, compliance, and continued preparation for potential audit will keep the project funding running smoothly. Conclusions/Outcomes Using the tips and tricks can assist an entity hesitating to apply for different types of funding due to concerns about reporting or compliance. As they implement these suggestions, the reporting process becomes smoother, and compliance knowledge increases. Each funded reimbursement request builds trust in the cash flow, and the project will remain ready for any potential audit. RELEVANCE TO AUDIENCE Entities may be overwhelmed at the idea of accepting a state or federal grant or loan award due to the overarching federal grant guidelines of 2 CFR 200, GAAP principles, and other state and programmatic funding agency requirements. Through this abstract, entities will learn relevant tips and trick for the overall funding post-award management. The abstract will also instill confidence and inform potential award recipients that while the details of documentation, invoice review, and the good faith efforts of compliance exist, these do not need be factors that keep an entity from utilizing state and federal funding.