1. Engaging CDSS for Clarification: KFA will formally engage the California Department of Social Services (CDSS) to clarify the applicability of federal guidelines for fee-for-service foster care providers. This includes obtaining specific guidance on financial reporting structure and reconciliation requirements.
2. Enhancing Financial Management Systems: KFA is implementing a financial management system capable of tracking costs by funding source, program, and passthrough entity. This system will facilitate accurate allocation of both direct and indirect costs and ensure compliance with federal guidelines.
3. Developing Comprehensive Cost Allocation Methodology: A consistent and documented cost allocation methodology is being developed, which includes time certifications for staff whose work spans multiple programs. This methodology will be reviewed annually to ensure continued compliance with applicable regulations.
4. Strengthening FC32 Reporting: Processes are being established to reconcile FC32 reports with functional expense statements. Allocations for executive salaries to the federal program will adhere to the federal executive level 2 salary limitation as required.
5. Training and Documentation: Financial and administrative staff are receiving training on cost allocation principles, federal salary limitations, and FC32 reporting requirements. Comprehensive documentation of all methodologies and calculations will be maintained for transparency and audit readiness.
6. Monthly Reconciliations: A monthly reconciliation process is being implemented to ensure expenditures and revenues align with the terms and conditions of the foster care program.