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HomeMy WebLinkAboutMINUTES - 10131987 - 1.59 To BOARD OF SUPERVISORS FROIN: Cohtra IDA DANIEL BERK, DIRECTOR, COMMUNITY SERVICES DEPARTMENT Costa DATE; Co "J October 8, 1987 SUBJECT: AUTHORIZATION FOR COUNTY AUDITOR-CONTROLLER TO ADVANCE PROGRAM FUNDS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION APPROVE and AUTHORIZE Auditor-Controller to advance funds for the Program Operations of the County Head Start Program pending receipt of Letter of Credit from funding source. . II. FINANCIAL IMPACT Critical. Funds for this program are accessible only through a Letter of Credit system with the Federal Government, which at present is not functional, due to an error in the Federal computerized payment processing system. , III. CONSEQUENCES OF NEGATIVE ACTION Failure to authorize this request will result in the probable termination by the County of Head Start contracts with delegate agencies. This action . will result in the disruption of Head Start contract services to approximately 650 program enrolled children, and the layoff of approximately 115 Head Start program staff. The lack of advance funds will also make it impossible for the Auditor-Controller' s office to reimburse contractors for legitimate program expenses up to the point of contract termination. IV. REASONS FOR RECOMMENDED ACTION On October 7, 1987, the department was notified by the County Auditor-Controller' s Office of an error in the October Letter of Credit from the Federal Government for the County' s Head Start Program. As a result, no funds would be available for the operation of the County' s Head Start program until this error was corrected. Staff investigated the matter and were informed by the Administration for Children, Youth and Families (ACYF) that the problem was created by a computer error in their Washington, D.C. , . office, and that a total of five Region IX Grantees were affected. ACYF has stated that it will take at least five working days, or until Wednesday, October 14, 1987, until the error can be corrected and funds are once again available to the County. _ CONTINUED ON ATTACHMENT: X- YES SIGNATURE: /! 1 ljt� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE I S): ACTION OF BOARD ON MT 1 3 1987 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT _ ^Z^� AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES. AND ENTERED ON THE MINUTES OF -THE BOARD ABSENT: _ ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED Off Auditor-Controller — -- - " -- -- PHIL BATCHELOR, CLERK OF THE BOARD OF Community Services SUPERVISQRS AND COUNTY ADMINISTRATOR M382/7-83 BY DEPUTY October 8, 1987 Page 2 Staff of the Auditor-Controller' s Office have indicated that. they can hold non-emergency contractor payments until Thursday, October 15, 1987, without any serious problems, but will require access to program funds after that date. Operational funds for the Head Start program for the month of October are estimated at $225,000.00 The department is requesting Board authorization to advance funds for the Head Start program as a precautionary measure only in the event that the error has not been corrected by the 14th of October. This Board action would permit -contractors to be paid for service ' rendered, and would prevent disruption of Head Start services to approximately 650 children being served by this program, until the error is corrected and advances restored. Under Section D (7) of OMB Circular A-87 dated January 28, 1981, the County is prohibited from charging any fees or interest on funds loaned or advanced by the County to the program. A copy of this circular is attached for reference. REFERENCE: OMB CIRCULAR A-B7 - Jan. 28, 1981 "COST PRINCIPLES FOR STATE AND LOCAL GOVERNMENTS" ATTACHMENT B - STANDARDS FOR SELECTED ITEMS OF COSTS. SECTION D.7: INTEREST AND OTHER FINANCIAL COSTS. " Interest on borrowings (however represented) , bend discounts, cost of financing and re-financing operations, and legal and professional fees paid in connection therewith , are unallowable except when authorized by Federal legislation and except as provided for in paragraph C.Z.a of this attachment . "