§ 304-81 — Grant Projects and Programs

304-81. Grant Projects and Programs.

1. DEFINITIONS. In this section: a. "Capital grant" means a grant whose funds are restricted by the grantor for the planning, acquisition or construction of fixed (capital) assets. b. "City share" means the difference between total grant costs and grantor eligible costs. "City share" may be required or non-required match. A required match is project costs incurred but not eligible for reimbursement and required by grantor agreement for matching purposes. c. "Costs" means costs as defined in Title 2 U.S. Code of Federal Regulations, Part 200 (Uniform Guidance) or its successor, or cost principles applicable to federal awards. These costs are further defined in the city's object code for expenditures maintained by the city comptroller. d. "Eligible costs" means total costs in which the grantor and grantee agree to participate. e. "Grant" means a contribution or gift of cash or other assets from any entity (governmental, profit or nonprofit) to be used or expended for a specified purpose, activity or facility excluding developer out-of-program agreements. f. "Grantor eligible costs" means all costs (both direct and indirect) which are eligible and approved by the grantor for reimbursement or match under grant agreement, regulations and guidelines. g. "In-kind match" means that portion of the city share of a grant which consists of city expenditures related to the attainment of the grant objectives which are typically budgeted with existing departmental operating funds whether or not a grant is involved and which are of a continuing nature, having existed prior to the grant and expected to continue after the grant is completed. An "in-kind" match may also include a contribution to a grant from a non-city source. h. "Operating grant" means a non-capital grant whose funds are restricted for a specified purpose or program. i. "Out of pocket match" means additional nondepartmentally budgeted funds (cash or borrowed funds) and includes funds provided by the city for major street and bridge improvements. j. "Program income" means income as defined in the Uniform Guidance or its successor or as specified by the grantor agency. k. "Total costs" means all costs (both direct and indirect) to be incurred during the grant project period, regardless of eligibility for grant reimbursement. 2. ANNUAL CITY BUDGET. a. Central Grant Parent Accounts. a-1. The annual budget is to be prepared in accordance with procedures as prescribed by the department of administration. City-wide grant parent accounts shall be included in the grant fund and capital improvement fund. The following parent accounts will be created for each fund as follows: a-1-a. Grant fund parent account (operating grants): Grantor share; City share out-of-pocket. a-1-b. Capital improvement fund parent account (capital grants): Grantor share; City share required or nonrequired match borrowing/cash. a-2. No appropriation transfers shall be made from these parent accounts unless the creation of a grant account is first approved by common council resolution and the city receives a grant award. a-3. The central grant parent accounts shall include the funding (expenditure authorization) for the total cost of the grant to be implemented by the city during the calendar year and a sum for unanticipated grants. a-4. The appropriation for the central grant parent accounts shall not be itemized on a project by project basis for the coming budget year. The budget document will provide summary parent account totals. Details of the prior year's expenditures for grants are shown in the single audit act supplemental financial report. b. Budget Submittal and Review. b-1. Operating Grants. b-1-a. Each city department shall submit to the department of administration on form BMD-28 or its successor its requests for operating grant projects to be funded during the next budget year. These requests shall be analyzed by the department of administration and shall be aggregated into the total budget request for operating grant projects. b-1-b. Each city department shall notify the department of administration of any potential grants which are not budgeted but may occur during the next budget year. This information will be used to insure that the amount budgeted in the grant parent accounts is sufficient for all grants received during the year. b-1-c. The operating budget form BMD-2 or its successor shall be prepared and reviewed by the department of administration according to budget procedures. b-1-d. The city comptroller shall review the BMD-28 forms or their successors for reasonableness and submit a communication to the department of administration, indicating concurrence or disagreement with the requests, including necessary revenue estimates. b-2. Capital Grants. Each city department shall submit to the department of administration capital request form BMD-100 or its successor its program or project requests for capital grants, to be funded during the next budget year. These requests will be analyzed by the department of administration, and shall be aggregated into the total grant budget request for capital grants. b-3. Time Table. The budget submittal and review shall be performed within the budget timetable as published by the department of administration. c. Departmental Operating Budgets. c-1. Positions authority shall be included with funds, on a line by line basis, for grant-related positions other than "in-kind", which are required by existing grant agreements or contracts. An amount equal to the sum of the salaries for all grant positions included in each organization shall be entered as an offsetting deduction on the line "grants and aids" deduction. Such positions shall be identified in the budget under an appropriate caption identifying the grant project. Definite termination date notations for each position, to coincide with or approximate the period of the grant, shall also be included in the budget and companion positions ordinance. This subdivision applies to those grant-related positions which were not in existence prior to the receipt of the original grant nor are expected to continue after the grant project is completed. c-2. In-kind match positions will be shown in the normal manner with positions authority and funding. No deductions will be made from the departmental budget for in-kind match positions. Other in-kind match expenditures (supplies, materials and services) will also be budgeted in the normal manner and no deductions will be made from the departmental budget for these anticipated expenditures. Such in-kind match expenditures are to be budgeted for the calendar year rather than for the period of the grant. c-3. Departmental expenditures involving the out-of-pocket match or the grantor eligible costs shall be incurred through direct charge specified in sub. 6-b. c-4. Equipment purchase authorization by grants shall not be included in departmental operating budgets unless it is an in-kind contribution. c-5. Pension and other fringe benefit costs related to grants, whether they are to be financed by the city or by the granting agency, shall be included in the normal account used for funding each centrally budgeted fringe benefit. That portion of such costs that is to be financed by the granting agency shall also be included in the respective grant parent account and be offset in the city's general revenues by inclusion of appropriate revenue items by the city comptroller to avoid a tax levy impact. 3. INDIVIDUAL GRANT BUDGET. a. Classification. The classification of a grant as either capital or operating shall be the determination of the city comptroller in accordance with generally accepted accounting principles (GAAP). This determination is to be prior to common council approval of a grant. b. Operating Grants. b-1. Budgets shall be itemized into the following cost categories in accordance with the city expenditure accounts: b-1-a. Personnel-direct labor (0060XXXX) and labor related (0060XXXX). b-1-b. Fringe benefits (00618XXX). b-1-c. Operating expenditures(0063XXXX). b-1-d. Equipment (00680XXX). b-1-e. Indirect costs on applicable direct costs as defined by the city comptroller. b-2. The budget costs listed under subd. 1 shall also be categorized by source of funding as follows: b-2-a. Grantor eligible costs. b-2-b. City share - out-of-pocket. b-2-c. City share - in-kind. c. Capital Grants. Individual grant budgets for capital grants shall be submitted with the authorizing resolution and approved therein. c-1. Budgets shall be itemized into the following costs: c-1-a. Administrative expenses, including indirect costs. c-1-b. Acquisition costs. c-1-c. Relocation expenses. c-1-d. Demolition expenses. c-1-e. Public improvement costs. c-1-f. Equipment costs. c-1-g. Disposition costs. c-1-h. Environmental study and clean-up costs. c-1-i. Miscellaneous (contingencies). c-2. Costs listed under subd. 1 shall also be categorized by source of funding as follows: c-2-a. Grantor eligible costs. c-2-b. City share - out-of-pocket (borrowing/cash). c-2-c. City share - in-kind. d. Instructions. The city comptroller, in cooperation with the department of administration, shall prepare procedural instructions for the preparation of individual grant budgets. These instructions shall include as a minimum definitions of detail costs and standardized budget forms. 4. FUNDING INDIVIDUAL GRANTS. All grants except those involving amounts not exceeding $20,000 and which do not require city share out-of-pocket matches shall comply with the following procedures: a. All resolutions relating to operating and capital grants shall be introduced by the administering department to the common council for approval. b. No department may apply for grant funds without prior approval by the mayor. Common council resolutions for grants shall be required prior to acceptance of funding. No department may accept grant funds without the prior approval of the appropriate resolution by the common council. c. Departments shall prepare and submit a grant analysis form to the department of administration for review prior to submitting the material listed in par. d. The grant analysis form is required for all new and continuing operating grants. Departments seeking approval of capital grants that have not been included in the current budget are also required to provide this information. d. The following documents shall be submitted to the city clerk's office by the published deadline prior to introduction at a meeting of the common council: d-1. Resolution. d-3. Grant budget form, except for major street and bridge improvements. d-4. Grant analysis form, if applicable. e. Departments shall be responsible for submitting a letter to the department of employee relations relative to the level or rate of pay for new positions. f. The department of administration shall be responsible for development of a standard common council resolution format for grants which complies with the format requirements of the city clerk's office. This format shall include, but not be limited to, source of grant funds, grant purpose, funding, travel authority, equipment authorization, initial positions authorization including expiration dates and private automobile reimbursement eligibility. The city comptroller shall review and approve the standardized format and any variances from the standardized format before the resolution is heard by the appropriate committee of the common council. g. The department of public works shall be responsible for the development of a standard common council resolution for major street and bridge improvements. The department of administration and the city comptroller shall review and approve the standardized format and any variances from the standardized format. h. The department of administration shall on a monthly basis provide to the city clerk a list of grants for which departments have been approved by the mayor to apply. 5. GRANT ACCEPTANCE AND ESTABLISHMENT OF GRANT ACCOUNTS. All grants including those involving amounts not exceeding $20,000 and which do not require city share out-of-pocket matches shall comply with the following procedures: a. Upon award and acceptance of a grant, a copy of the grant agreement and grantor approved budget shall be sent to the city comptroller. b. The administering department shall designate a coordinator for each grant project or program and notify the city comptroller. The city comptroller shall notify the administering department of the staff person in the comptroller's office responsible for each grant. c. The administering city department shall prepare amendments to the original resolution prior to the execution of the grant award if: c-1. The purpose of the grant is significantly changed. c-2. The amount of city share - out-of-pocket changes from that specified in the original resolution. c-3. The amount of city share increases by more than 10% of the total cost or $5,000, whichever is greater. c-4. The total grant exceeds that originally specified by more than 10%. c-5. The ratio of out-of-pocket match to grant increases from that specified in the original resolution. c-6. Position authority is changed from that originally approved. d. Individual grant accounts shall be established by the city comptroller with the concurrence of the administering department to provide for accounting of grant costs consistent with the grant budget and city accounting policies. The city comptroller shall be responsible for the accounting system to be used for a grant project. e. Prior to the start of the grant period, the department of employee relations shall notify the city comptroller that grant funded positions as proposed and authorized in the grant resolution have been reviewed and that the rates of pay are consistent with other city positions performing similar duties or are reasonable for the responsibilities and duties proposed. 6. EXPENDITURE OF GRANT FUNDS AND GRANT FINANCIAL REPORTING. a. Expenditure of grant funds shall be in accordance with the grant agreement, grantor approved budgets and city policies. b. Expenditures shall be charged directly to the grant accounts and shall be coded to the city's expenditure code for expenditures as maintained by the city comptroller. The accounts established by the city comptroller shall be the official financial records for grants. The city comptroller shall review and approve specialized transaction coding to meet individual grant accounting and reporting requirements. Any variance from these procedures shall be approved by the city comptroller. c. City share - in-kind match costs (exclusive of indirect costs) shall be charged to the grant in-kind account as established by the city comptroller. d. The acquisition of materials, supplies, equipment and contracts shall be in accordance with procedures established by the department of administration-business operations division or its successor and grant procurement standards outlined in the Uniform Guidance. e. Expenditure of grant funds for travel shall be limited to 110% of the amount specified in the grant budget submitted with the authorizing resolution if approved by the grantor. All travel expenditures shall be in accordance with city travel policies. f. Grant Activity Reports. The administering city department shall be responsible for the preparation of grant activity reports, if required, relating to the meeting of goals and objectives of the grant. Copies of the final reports, if required by the grantor agency, are to be sent to the city comptroller, the department of administration and the legislative reference bureau. Grant activity reports shall be prepared for all grants administered by the health department and shall: f-1. Be presented to the appropriate common council committee in the first 6 months of each calendar year. f-2. Include a description of metrics for measuring the success of the grant operation in relation to the grant’s goals and objectives in addressing health-related issues. f-3. Include a measurement of all grant operations to date in relation to the metrics identified in subd. 2 in addressing the health-related issues. f-4. Include an analysis of the statistically quantifiable impact the actions of the health department have had on the grant’s goals and objectives, including a discussion of how specific health department actions contributed to measurable changes in the health-related issues intended to be addressed through the operation of the grant. g. Financial reports for grants shall be prepared and submitted by the administering department in accordance with the grant agreement and regulations after review by the city comptroller. The city comptroller shall establish a grant billing cycle based upon the city's accounting periods which is to be used in meeting grant fiscal reporting requirements. All fiscal reports shall agree with the grant accounts as maintained by the city comptroller. Reconciliation shall be provided to the city comptroller for reports not agreeing with the official grant accounts. Copies of all financial reports shall be sent to the city comptroller. h. All draw requests or requests for reimbursement shall name the treasurer, city of Milwaukee, as payee. The grantor shall be instructed to send all checks or wire funds to the city treasurer. The city comptroller and city treasurer shall develop procedures for the recording of the receipt of grant funds. i. If the grantor authorizes the use of program income earned during the grant period, the city comptroller is authorized to transfer additional appropriations and estimated revenues for the amount of program income consistent with the grant award up to 10% of the original award. If program income is not required to be used for the grant, or returned to the grantor, it shall be transferred to general city revenue at the city's fiscal year-end. 7. BUDGET MODIFICATIONS AND COST OVERRUNS AND DISALLOWED COSTS. a. The administering department shall be responsible for obtaining grantor approval of line budget modifications when required and transmit the amended budget and approval to the city comptroller. b. The administering department shall notify the grantor and the city comptroller if the grant cannot be completed within the original budgeted amount or time period. A request shall be made to the grantor for participation in the estimated cost overrun and time extensions prior to the request for additional city funding. The department shall not incur costs in excess of the amount authorized unless approved by the grantor and the common council. c. The administering city department shall be responsible for obtaining the appropriate funding for estimated project overruns and costs disallowed by the grantor agency. d. To permit a reasonable flexibility in variances between actual costs and estimates: d-1. Expenditure charges to a grant for out-of-pocket match shall be permitted to exceed the original appropriation for these costs by not more than $1,000 providing sufficient funds are available in the grant parent account and a transfer has been approved in accordance with s. 18-10, city charter. d-2. If expenditures charged to a major street and bridge improvement grant exceed the amount authorized for city share by 10% of the total cost or $5,000, whichever is greater, but not to exceed $150,000, the administering city department shall request additional authorization from the budget and management division in accordance with s. 18-10-6, city charter. The city comptroller is authorized and directed to make the approved transfers. d-3. If an increase in a major street and bridge improvement grant’s cost is within the 10% or maximum $150,000 limit, a transfer of funds request shall be sent to the comptroller’s office. d-4. If an increase in a major street and bridge improvement grant’s cost is greater than the 10% or maximum $150,000 limit, a shortfall resolution shall be submitted to the common council to authorize the increase in the project’s cost. d-5. The provisions of par. d shall also apply to all previously approved grants. 8. ANNUAL APPROPRIATION CARRYOVERS AND GRANT CLOSEOUTS. a. For each grant that has not been completed, the year-end balance in the grant appropriated to a department shall carry forward to the next budget year. The carrying over of unexpended funds shall be limited to the authorized grant period in the common council resolution including authorized extensions approved by the grantor agency. An operating grant exceeding this term shall be refunded through a separate resolution. b. The administering city department shall obtain formal grant extensions from granting agencies. Copies of these extensions shall be forwarded to the city comptroller upon receipt. Grants without formal extensions shall be closed out in accordance with the grant expiration date per the grant agreement. c. A grant account shall be considered complete when the term of the grant has expired and a 120-day closeout period has elapsed. All grants shall be closed out in accordance with grantor regulations. The closeout period shall not exceed 120 days from the date final grant revenues have been received and reported in the city’s comprehensive annual financial report. d. The grant parent accounts shall be carried forward to subsequent years without common council action. 9. GENERAL POLICY STATEMENTS. a. Indirect costs shall be included as a grantor participating cost when permissible under the grant regulations. The decision to exclude indirect costs from grant or participating costs shall rest with the common council. b. The community development grants administration was authorized and directed to coordinate the implementation of activities conducted as a part of the city of Milwaukee's community development plan by resolution file number 74-92-e, adopted on October 8, 1974. In conjunction with these responsibilities, the community development grants administration developed procedural guidelines for the community development block grant program which were adopted by common council resolution 74-92-5v on April 10, 1979. These guidelines shall remain in effect with the exception of the line in section V(A) referring to capital improvements guidelines. The department of administration or its successor shall continue to provide guidelines for the community development block grant program provided that any changes to the guidelines are approved by the city comptroller and any other interested city department prior to their submission to the common council. This is to insure that the provisions of this section are followed as much as practicable. c. The city comptroller in cooperation with the department of administration shall develop procedural instructions after consultation with affected city departments to implement the provisions of this section.