SBDC PROGRAM OVERSIGHT PROCESS

Office of Small Business Development Centers(OSBDC)

2015 Fall ConferenceSan Francisco, CA

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OSBDC Organizational ChartScott Henry

Acting AA/OSBDC

J. Chancy LyfordDAA/OSBDC

Vicky MundtSupervisory Financial

Analyst

Program Management

Brian McDonaldProgram Manager

Dave JacksonProgram Manager

Nancy GilbertProgram Manager

Erika FischerProgram Manager

Rachel KartonProgram Manager

Grants Management Operations

Doris YoungGrants Mgt Specialist

Aaron ArnwineGrants Mgt Specialist

Edna GreeneGrants Mgt Specialist

Alanna FalconeProgram Analyst

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Monika NixonProgram Specialist

Brian McDonald• CA (Los Angeles), ID, KY,

NC, ND, OH, OR, RI, VA, WA, WY, FL, OK

Erika Fischer• AL, AR, CA (Santa Ana),

DC, DE, GA, MO, NM, PR, TN, UT, NY

Rachel Karton• HI, IA, IN, KS, MA, ME, MI,

NE, NH, NJ, VT, WV, TX (San Antonio), TX (Dallas)

David Jackson• AK, AS, AZ, CO, GU, IL,

MD, MS, NV, PA, WI, TX (Houston), TX (Lubbock)

Nancy Gilbert• CA (Fresno, Sacramento,

San Diego, San Francisco), CT, LA, MN, MT, SC, SD, VI

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Carryover Request

Closeout Reports

Finish Start Program Announcement

Issued

GoalsNegotiated

w SBA

PO ReviewsProposal

DD IssuesConcurrence

SubmitProposal to

OSBDC

Proposal Reviewed by

OSBDCNotice of

AwardIssued

SBDC ProgramActivities Begin

PO Begins Lead

Center & SvcCenter

Reviews

Semi Annual Report

Financial/ProgramReview

(biennial)

BudgetModificationRequest (ifNeeded)

Notice of Intent to Renew

SBDC Annual

Program Cycle

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Key Guidance for SBDC Program

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Authorizing LegislationSmall Business Act, Section 21

15 USC Section 648

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SBDC Program Regulations13 CFR 130

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OMB Omni Circular2 CFR 200

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Notice of Award Cooperative Agreement

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2016 Program Announcement

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2016 Program AnnouncementKey Updates

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Section Update

1.6 SBA Involvement and Oversight

Clarifies roles of OSBDC staff, Project Officer and District Director

4.1.2.3 Budget Justification Details

Clarifies when to use “contractual” vs. “consultant” cost categories

4.1.6 Funding Restrictions

Updates on payment of dues, costs for logo items, advisory board compensation

4.1.7 Carryover Requests

Clarified that request must include narrative justification

5.2.2 Priorities for 2016 Inclusive entrepreneurship, export, other

2016 Program AnnouncementKey Updates

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Section Update

6.3.1 PIMS Maintenance Clarified duties of PIMS designee **OSBDC will provide further Guidance**

6.3.2.3 Performance Reporting

Page limit increased. Use new reporting categories

6.3.3 Reporting Categories

Re-ordered/re-numbered. New Categories added. Clarified desired content

6.4.2 Transactions with Suspended/Debarred

New section. SBDCs are responsible to avoid transactions w/ such entities

2016 Program AnnouncementKey Updates (cont.)

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Section Update

8.1.8.8 Online Counseling

Clarifies policy on accepting electronic signature for Form 641

8.1.28 SBDC Satellite Locations

Clarified definition. Do not request PIMS id for satellites.

8.1.39 SBDC Lead Center

Clarified to list unique responsibility of Lead Center (from 13 CFR 130.330(b))

8.3.4 Legal Services8.3.5 COI Policy8.3.6 Disaster Op Plan

Added back to Program Announcement (had been omitted from 2015 in error).

8.4 Checklist Handy reference to required forms and worksheets

SBA Notices

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MAKING CHANGES AFTER THE AWARD IS

ISSUED

What needs prior approval and how to obtain it

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Program Announcement (PA) 2016•Section 5.1.8, page 33

Notice of Award, •Section III. A. 12

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Guidance or References

OMB regulations

Omni-circular•2 CFR 200.407

SBA Policy Notices

http://www.sba.gov/content/sbdc-forms-and-worksheets

Purchasing or disposing of a piece of equipment with an acquisition cost of $5,000 or more •See NOA, Section III,A, 12, page 13

Changes in Scope of Work or Goals •See NOA, Section III,A, 12, page 13

Changes in Budget Allocation •See NOA, Section III,A, 12, page 13•Approval needed if budget modification is more than 10% of total program funds

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Changes Requiring Prior Approval by the Program Manager

Changes in Key Personnel •See NOA, Section III,A, 12, page 13

Changes Requiring Prior Approval by the Program Manager

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Improvement in SBDC facilities (minor construction) •See PA Section 5.1.8.2, page 33 for funding restrictions•See also NOA, Section III, A, 12, page 13

Use of carryover funds •See PA Section 5.1.8.3, page 33 and page 22 for fund restrictions

Recruitment of a new State Director •See PA Section 5.1.8.4, page 61 for definitions, and SBA Policy Notice•District Office must approve of recruitment plan as well as the PM

Authorization for Unplanned Out-of-State/Country Travel

Out-of-State Out-of-Country • Submit Out-of-State/Country

Travel Request to the District Office with at least 20 days notice

• PO/DD will approve and email to PM and SBDC

• Keep a copy in your grant file• See PA Section 4.1.6.2, p18 and

Section 8.3.2, p66• See NOA, Section III, A, 12, p13

• Submit Out-of-State/Country Travel Request to the District Office with at least 30 days notice

• PO/DD will approve and email to PM

• PM will obtain AA or DAA/OSBDC approval

• PM will email form back to PO and SBDC

• Keep a copy in your grant file• See PA Section 5.1.8.1, p33• See NOA, Section III, A, 12, p13

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Actions Requiring Prior Approval

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Applying for other federal initiatives/grants • See PA Section 4.1.1.1, page 11• AA/OSBDC approval

Entering into contracts over $25,000 (including sub-recipient contracts)

• See NOA Section 3.A.12, page 12 • PM approval

How to Request Prior Approval• PM Approval

• Submit request by email, with forms or other documentation attached to PM

• Wait for approval before making any changes or purchases

• AA/OSBDC or Designee Approval • Submit request by email, with forms and other documentation to

the PM • PM will obtain approval from AA/OSBDC and notify you• Wait for approval before making any changes or purchases

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PROGRESS REPORTING

OSBDC expectations & good examples

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Good Reporting is Important

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Litmus Test:If your narrative progress report, which is a public document,

was placed on SBA’s web site, would your funders, (the American tax payer), understand and appreciate your SBDC

Network’s performance? Would the report accurately and succinctly reflect your efforts and accomplishments?

Due Dates – 2015 & 2016

•Fiscal Year SBDCs (October 1 through September 30)• December 30, 2015 – 2015 Fiscal Year-End Reports are due.

Encompasses the entire year. (Must not exceed 50 pages, if possible)

• April 30, 2016 – 2016 Semi-annual Reports are due. (Must not exceed 25 pages, if possible.)

• December 30, 2016 – 2016 Fiscal Year-End Reports are due

•Calendar Year SBDCs (January 1 through December 31)• March 30, 2016 – 2015 Year-End Reports are due. Encompasses

the entire year (Must not exceed 50 pages, if possible)

• July 30, 2016 – 2016 Semi-annual Report is due. (Must not exceed 25 pages, if possible.)

• March 30, 2017 – 2016 Year-End Reports are due.

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New Awardees and Awards with Special Conditions

New SBDCs must report quarterly for the first three years

NOA may contain special reporting instructions• More frequent• Specific purpose/topics

The new Omni also gives agencies authority to require recipients to report more frequently for effective monitoring or if outcomes may be affected. (2 CFR Sections 200.327 and 200.328)

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Performance Reports Organize narrative by reporting categories shown in

Program Announcement • 0100 Capital Formation; 0200 Innovation, Technology Transfer, etc.

Try not to exceed 25 pages for Semi-Annual Reports and 50 pages for Annual Reports.

Narrative represents the Lead Center’s assessment of the Network’s YTD accomplishments and challenges – not simply a listing of activities completed to date

Send electronic versions in Word format to your Project Officer and Program Manager.

If files are larger than 5 MB, call your Program Manager before sending your report, or ask for confirmation.

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Performance Reports

Required content:•Summarize efforts in delivering core services. Include managerial analysis.•Highlight accomplishments & impacts, not a recitation of activities and events•Summarize specific achievements by reporting categories in Section 6.3.3•Include a comparison (preferably a table with % achieved) showing annual network goals from NOA (LTC, NBS, CI) and YTD progress

• Discuss achievement or challenges in meeting planned goals • If milestones were not met, reasons for slippage and plan of action to overcome it

•Explain cost overruns or other issues reflected in the financial reports•Changes in Key Personnel, Service Centers or Sub-recipients•Description of new resources developed by the SBDC•Success Stories

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Notable Changes (for 2016)

Categories are re-ordered & list all required info

Clearer guidance on what to report1700 – Resource Development1800 – Collaboration & Leveraging 2300 – Economic Impact

Some Content Separated and assigned its own category0500 Manufacturing0700 Minority Entrepreneurs 0800 Women Owned Businesses0900 Veterans 1000 Rural

All content numbered for complete, consistent reporting2000 Key Personnel2200 Budget to Actual Comparison

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Good Examples: Milestones (table format is preferred)

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MILESTONES Goal Completed % CompleteI. PROGRAM PERFORMANCE:      · Total Advising Hours 23,000 23,797 103.5%

· Long Term Clients 1,140 1,128 99%

· Capitalization (In $ Millions) 40 40,952,849 102.4%

· Number of Business Start-ups 120 136 113%

· Total Clients Advised: 2,350 2,732 116%

       II. SPECIAL PROGRAM DELIVERABLES:      · Small Business of-the-Year 13    · Collaborating with SCORE (referrals) 44 120  · International Trade (Advising Cases) 160 186  · HubZone Facilitation (As Needed)    · Success Stories (5 each Quarter) 20    · Veteran Long-Term Advising Clients 50 115 230%

· Veteran’s Event (As Needed)           III. COMMUNICATION & REPORTING:      · SBDC Site Visits 12 11 92%· SBA/SBDC Meetings 4 4 100%· SBDC Semi-Annual Meeting 2 2 100%· CBA Statistical Reports 2 2 100%· Modules & Milestones Report 2 2 100%· Semi-Annual Report (CY Basis) 1 1 100%

Section II Milestones Progress toward Cooperative Agreement Milestones

Good Examples: Reporting Categories

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0200 CAPITAL FORMATION Again our established staff within our centers preserves strong alliances with the lending community across our state. Staff are often asked to present to staff and board meetings to provide updates on the local economy. Additionally three of our centers are contracted to sub-recipients that also have revolving loan funds and/or are Certified Development Companies for the SBA 504 program. And one of our USD centers is co-located with their local CDC so access is readily available through these established relationships. Our SBDC also works closely with Native American CDFI’s across South Dakota’s nine Indian reservations to meet the needs of the emerging Indian entrepreneur. Through a partnership with the Citibank Foundation we are able to deliver more intensive services to this population who generally carry less financial expertise and more barriers to entrepreneurship than the traditional small business. Finally, one of our sub-recipients, Enterprise Institute, also develops and manages regional angel capital funds throughout the state and currently have active funds in Brookings, Watertown, Sioux Falls, Yankton and Rapid City. Management Comments The depth, longevity and strategic alignment of our network staff well equips us to source funding for our clients. We also utilize proprietary financial projection software (developed by our Associate State Director) that is standardized across all of our centers. We brand our projections and are careful to keep all live copies in house in order to maintain the integrity of our projections. As a result, lenders have come to trust and look for our business plans and financial forecasts and as a result, financial institutions are continually one of our primary referral sources.

Good Examples: Reporting Categories

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0300 INNOVATIVE AND TECHNOLOGY TRANSFER & TECHNOLOGY ASSISTANCE The SD Governor's Office of Economic Development funds a full time SBIR Director within the SBDC. In addition to being a part of the SBDC results, this program carries the following goals for SBIR proposals and awards.

SBIR 2015

Proposal Submissions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Annual Total

Total Submissions (Goal) 10 10 10 10 40

Phase I Submissions 2 6 8

Phase II Submissions 0 2 2

Phase I Award % - Goal 20%

Phase I Awards 1 5 75%

Phase II Award % - Goal 50%

Phase II Awards 0 4 200%

Total Capital 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Annual Total

Milestone (Total Capital) $687,500 $687,500 $687,500 $687,500 $3,199,790

SBIR Grants $100,000 $3,099,790 $759,849

Other Capital $127,500 0 0

Total Capital $227,500 $3,099,790 $3,327,290

Management Comments Our SBIR Director is well networked within our State’s Universities, especially the two engineering schools, South Dakota State University and the South Dakota School of Mines & Technology. Our Director currently serves on the Research Committee for Dakota State University, The University of South Dakota IP & Conflict of Interest Committees, and the South Dakota EPSCoR Reach committee. South Dakota’s attention and investment into commercializing our science is in its infancy and was begun about 14 years ago with our previous governor. Our flagship Universities are not in the major population area which presents unique logistical and political challenges

Good Examples: Success Stories

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Business Description: Auto, truck and heavy equipment repair and sales. Problem Identification: The client requested assistance from the SBDC to assist with the completion of his business plan. He was applying for funding from the Orleans County IDA. They needed to purchase parts inventory, and needed working capital as the business was just getting started. Assistance Provided: The SBDC provided the initial training for this client through the Microenterprise Assistance Program sponsored by Orleans County. The advisor then assisted them with the completion of the business plan including all the financials, and the application for funding from the county. Results Achieved: The client was successful in obtaining a low interest loan from Orleans County in the amount of $30000.00. The client also received additional lender financing in the amount of $100,000.00, and invested personal funds in the amount of $274,500.00 for a total investment of $404,500.00. The business also created two full time jobs. [Brockport Client # 2232037]

Final Report: Economic Impact Required

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2300 ECONOMIC IMPACT** 

Provide a table showing comparison of negotiated performance goals for Long Term Clients, New Business Starts and Capital Infusion to actual accomplishments achieved during the reporting period, and include a management analysis of results.  SBDC Annual Report must also include in this section the most recent economic impact survey data generated from the assistance you have given your clients using the following format.  # of New Businesses Created: _____________ Loans: SBA # _______ $ _________ Non-SBA # _______ $ _________ Equity Capital $ _________ Jobs: Created _______

Retained _______ Customer Satisfaction: _____________% Growth in Sales: $ _________New Tax Revenue: State $ _________

Federal $ _________

Good Example: Annual Report: Economic Impact Category

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SBA MONITORING

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Authority for SBDC Oversight

• SBA shall monitor and oversee the Cooperative Agreement and ongoing operations of the SBDC network to ensure the effective and efficient use of Federal funds for the benefit of the small business community.

Sec 130.810SBA review authority.

• (a) Site visits. The AA/SBDC’s, or a representative, on notice to the SBDC Director, is authorized to make programmatic and financial review visits to SBDC service providers to inspect records and client files, and to analyze and assess SBDC activities.

• (b) SBA examinations. SBA examiners shall perform a biennial programmatic and financial examination of each SBDC.

Sec. 130.800Oversight of the SBDC program.

Code of Federal Regulations (13 CFR Ch. 1)

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Resources & Methods for Program Oversight

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2015 Project Officer’s Handbook Revised for 2015 with process & procedure clarifications

User friendly format• Links to template/forms provided for convenience

OSBDC Project

Officer’s Handbook

Roles & Responsibilities

Pre Award

Post Award

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Project Officer On-Site Reviews

Project Officer on-site monitoring includes: •Lead Center – reviewed each year

•Service Centers – reviewed every other year** **exception for larger networks (more than 20 centers) or for special cases such as with center performance issues or closures

• Project Officers will coordinate the review schedule with the Lead Center• Lead Center to provide POs with all requested client data & center level

performance results before their visit

PO issues report to Program Manager after each visit•PO report to follow standard template format•Includes review of prior year and YTD performance

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OSBDC BIENNIAL PROGRAMMATIC REVIEWS

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What to Expect: SBA Program Reviews

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Project Officer Reviews and Reports

Semi & Annual Progress Reports

EDMIS data

SBDC Proposals

SBDC Strategic Plans

Accreditation Reports & Self Studies

Observations from meetings and/or on-site visits

Program Manager Analysis

Program Reviews incorporate the following:

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Content: OSBDC Program Reviews

4 Standard Sections:

May also include:

Recommendations & Observations

• At the end of each section, if applicable

Required Actions• If needed• SBDC has 45 days to

respond to OSBDC

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Programmatic Review Report - Routing

OSBDC Reports are issued to State Director, Host, SBA District and Regional Offices

(If there are required actions) the SBDC Responds to the PM/OSBDC • cc Deputy AA/OSBDC on response

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Other Funding for SBDCs

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Portable Assistance ProgramBackground

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Portable Assistance Program Proposals for 2016

Program Announcement

Anticipate a May 2016 issue date

Eligible Applicants

Accredited SBDC recipients

Evaluations & GoalsEvaluations & Goals

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Portable Assistance Program Recent Experience

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