Financial Solutions

Our team reviews, develops, implements, and negotiates plans on behalf of tribal nations, non-profits, municipalities, and state agencies, including statewide indirect cost allocation plans (SWCAP) and public assistance cost allocation plans (PACAPs). Our team has extensive experience across a wide array of different types of agencies in all areas of the country. No other firm prepares as many cost allocation plans annually as MGT.

We are experts in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and how to comply with it and programmatic requirements. We understand the implications of plan results and the impact on operations and revenue recovery. To us, they are not a commodity.

Our proprietary software, MGTCAP, has helped clients recover hundreds of thousands to millions of dollars from federal and state programs.

Our Indirect Cost Rate Proposals (ICRPs) calculate department or divisional overhead costs incurred by state, county, city, tribal, and non-profit organizations. We use expenditure data, federal cost principles, staff input, and department organization charts to develop a percentage rate of salaries, benefits, and other allowable costs over direct costs to calculate a rate. This rate (when applied to direct costs) ensures full cost recovery for fees, billing rates, grants, and mandated cost claims. We also assist organizations to determine if they will benefit more from an indirect rate or a cost allocation plan and transition from a rate to a plan if appropriate.

Our financial models assist our consultants to comprehensively analyze the cost of government and non-government services to help determine fair and defensible user fees. Our studies review subsidy levels and forecast the revenue impacts of fee changes. We identify creative user fee revenue streams from commonly provided services, including building department inspections and reviews. We have also developed user fee analyses in new markets including cannabis for states with legal and medical marijuana programs.

We can also combine user fee studies with our other services and conduct organization wide revenue assessments to help agencies analyze revenue recovery from multiple angles.

Our performance audits are independent examinations of an organization’s programs, functions, operations, or management systems to assess if the entity is achieving economy, efficiency, and effectiveness with limited resources. Our conclusions assist leaders with improving operations, reducing costs, facilitating corrective action, and contributing to public accountability.

2022 GAGAS Peer Review

We also help oversight agencies (and subrecipients) ensure they comply with 2 CFR Part 200 requirements and programmatic regulations related to subrecipient monitoring. This effort can include reviewing and developing procedures, assisting with development of interagency agreements, and conducting desk reviews and/or training.

In California, local agencies and school districts can seek reimbursement for select state-mandated costs. We assist local agencies to identify mandated activities, cost these services, and fill out the required state reimbursement forms. We also provide technical assistance related to this ever-changing program.

Our team provides financial plans for Title IV-D child support agencies to assist them in effectively leveraging federal funds. We will prepare applications and oversee monthly claiming and automated time accounting. We also help with audit defense and compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), which is also codified under 45 CFR Part 75 for public assistance programs. Because every organization is unique, we will customize your system to meet your organization’s needs.

The main goal of a public assistance cost allocation plan, after allocating indirect costs, is to identify administrative expenditures that may be claimed to various entitlement programs and other funding sources. These include administrative expenditures in support of the Medicaid program and claimed on the CMS-64 and expenditures claimed in support of the Title IV-E program and claimed on the CB-496 form. Understanding what qualifies as an administrative cost, how they are different than indirect and service costs, and ensuring that they do not overlap with other funding sources takes years of practical experience. Regulations are not always clear. To claim, a cost must be necessary for the proper and efficient administration of the state plan for public assistance and meet other criteria and approval requirements. MGT staff assist agencies to identify and ensure that appropriate processes are in place to support claiming programs.

The situation resulting from the COVID-19 virus has created national, state, and local emergencies, and caused disruption to our every day lives. New funds are available, but they must be understood to be accessed appropriately. Meanwhile, processes and procedures need to be updated to ensure business continuity. MGT is committed to helping agencies meet their missions through this challenging time.

FEMA funds are available to assist communities and agencies with COVID response efforts. To access these funds, the costs of allowable activities must be documented. We can assist you to identify, document, and request funds.

Meanwhile, we can also assist you to understand what is allowable under the CARES Act and other sources as they become available, including overlap amongst these sources, FEMA, and others. To maximize recoveries and minimize future audit exposure it is critical to understand what is allowable under each source.

Our goals with this effort are to:

• Allow you to quickly realize funding
• Ensure that you appropriately use funds
• Help you to avoid future audit risk

 

MGT is dedicating staff to understanding constantly changing guidance from federal and state governments and the ever changing COVID landscape. We can also help with FEMA public assistance and mandatory report filing, updating cost allocation plans that likely have to be amended or changed as a result or organizational shifts and new funding sources, and documenting or creating business plans and procedures.

MGT recognizes that agency staff need assistance with various tasks to ensure maximum funding and business continuity.

Agencies have varying processes for managing centralized resources and while costs may be allocated via the SWCAP, assets themselves may be decentralized. The Uniform Guidance (2 CFR Part 200) has strict requirements for allowable costs and not properly tracking assets leads to waste and audit risk. Our team will conduct an inventory, compile an asset list, review areas of waste, and present recommendations for consolidation, discontinuation, and other changes. We will also identify areas for cost savings and identify an ongoing inventory schedule.

Every state has laboratory rate fee schedules that are used for various contracts, many with the federal government. Rates must be calculated in compliance with the uniform administrative requirements, cost principles, and audit requirements for Federal awards (2 CFR Part 200). In our experience, rates may not be updated on a regular basis. Some agencies may not have updated their rates in conjunction with the implementation of the Uniform Guidance (2 CFR Part 200) in 2014, replacing OMB Circular A-87. Even if recently updated, a review will ensure your costs are captured and accurately reflecting how an organization conducts business.