1 / 53

OMEGA Review for Federal Program Coordinators

OMEGA Review for Federal Program Coordinators . Patrice Cosely and Brenda May Virginia Department of Education 2013. WHY NOW?.

feo
Download Presentation

OMEGA Review for Federal Program Coordinators

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. OMEGA Review for Federal Program Coordinators Patrice Cosely and Brenda May Virginia Department of Education 2013

  2. WHY NOW? • Both the Federal Funding Accountability and Transparency Act (FFATA) and the American Recovery and Reinvestment Act (ARRA) have lead to additional compliance requirements for recipients of federal grants. • Government demands for accountability and transparency have made systems and controls more important than ever before in managing federal grant programs. • In the coming years, these demands will likely continue to increase because of the competition for resources and the need to demonstrate effectiveness.

  3. WHY NOW? • The federal regulation at 34 Code of Federal Regulations (C.F.R.) part 80.40(a) (Revised as of July 1, 2010) addresses the State Educational Agency role in monitoring subrecipients: • Grantees are responsible for managing the day-to-day operations of grant and subgrant supported activities. • Grantees must monitor grant and subgrant supported activities to assure compliance with applicable federal requirements and that performance goals are being achieved. • Grantee monitoring must cover each program, function or activity.

  4. THE NEW WHY NOW • IRS $4.1 million training conference ‘Star Trek’ • Employees accepting free food (thousands of dollars) • Using federal credit card to pay for entertainment and other inappropriate expenses. • The top officials stayed in a room that normally goes for $3,500 a night and another official stayed in a room that goes for $1,499 a night. • Federal employees got bonuses for planning this conference.

  5. THE NEW WHY NOW • Department of Veterans Affairs employees accepted gifts including massages. • The General Service Administration hired a mind reader, clown, and a building exercise bike . ….So we now know the kind of scrutiny for the next federal monitoring.

  6. THE NEW WHY NOW • Two documents that the federal government has posted (see handouts). • Document the details: • Is it in the approved application? • Is it reasonable and necessary to achieve the goals and objectives of the grant? • Attach a copy of the handouts, agenda, how many people attended, and why it was necessary to provide a meal.

  7. TRAVEL • Cost incurred by employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, shall be considered reasonable and allowable only to the extent such costs do not exceed charges normally allowed by the governmental unit in its regular operations as the result of the governmental unit’s written travel policy or the Commonwealth’s travel policy, whichever is less.

  8. Travel • Capped at state travel regulations • Travel days are reduced to 75 percent • Meals included at the conference need to be reduced from the per diem • Rental vehicle and conference hotel • Staying additional nights

  9. FRAUD AND FALSIFICATION • Falsification of records that constitutes fraud brings the harshest punishment. • Falsification of county, state and or federal records is a crime; but when it is done for personal gain, it becomes fraud. • Falsifying records not only applies to paper records, but computer records and other electronic media.

  10. FRAUD AND FALSIFICATION • Some items found in the past year: • Smoking in hotel room and claiming it on the lodging rate • Taking an additional person and claiming the cost on your travel reimbursement • Staying at the conference hotel and renting a vehicle (Escalade) and claiming it was to go to and from restaurants

  11. FRAUD AND FALSIFICATION • Charging for meals that were provided in the conference price. • Recording the hotel at a different location so that the lodging rate could be a higher rate.

  12. ALLOWABLE-REASONABLE-ALLOCABLE • ALLOWABLE- To be allowable under federal awards, cost must meet the following general criteria: • Be necessary and reasonable • Be allocable to federal awards • Be authorized or not prohibited under state or local laws or regulations • Conform to any limitations or exclusion set forth in these principles

  13. ALLOWABLE-REASONABLE-ALLOCABLE • REASONABLE - A cost is reasonable: - If, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. - If the cost is of a type generally recognized as ordinary and necessary for the operation of the governmental unit or the performance of the federal award.

  14. ALLOWABLE-REASONALBLE-ALLOCABLE • Market prices for comparable good or services • The requirements impose by such factors as: sound business practices; arms length bargaining • Significant deviations from the established practices of the governmental unit which may unjustifiably increase the federal award’s cost. • Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the governmental unit, its employees, the public at large, and the federal government.

  15. ALLOWABLE-REASONABLE-ALLOCABLE • ALLOCABLE –A cost is allocable to a particular cost objective: • If the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefit received. • If all activities which benefit from the governmental units indirect cost, including unallowable activities and services donated to the governmental unit by third parties.

  16. ALLOWABLE-REASONABLE-ALLOCABLE - If any cost allocable to a particular federal award or cost objective under the principles provided for in this Circular may not be charged to other federal awards to overcome fund deficiencies, to avoid restrictions imposed by law or terms of the federal awards, or for other reasons. .

  17. INDIRECT COST • Indirect cost rates are updated July 1 of each year. • DOE requests that the indirect cost listed in the OMEGA expenditure description column provide: • indirect cost recovery rate; • the dates of expenditures charged for indirect cost recovery; • the total expenditure charged for indirect cost recovery; and • the reimbursement request number related to the charge, unless it is only the current request that includes indirect cost.

  18. INDIRECT COST • In addition to restrictions contained in this Circular, there may be laws that further limit the amount of administrative or indirect cost allowed. (e.g., Title III, Part A, has a 2 percent administrative cap on indirect cost.) • Amounts not recoverable as indirect cost or administrative costs under one federal award may not be shifted to another federal award, unless specifically authorized by federal legislation or regulation. • Indirect cost can be charged only on the first $25,000 of an individual contract. • Indirect cost cannot be charged on 8000 items.

  19. TIME AND REPORTING REQUIREMENTS • Works on single indirect cost activity • Time and attendance report that shows employee was on the job or absent. • Semi-annual certifications signed by employee and supervisor. • Ensure that class schedules match.

  20. TIME AND REPORTING REQUIREMENTS • Works on more than one indirect cost activity • Personnel Activity Report (PAR) required • PAR required if more than one federal award: federal award and a non-federal award. • PAR requirements • After-the-fact record must reflect an after the fact distribution of actual activities. • Total activity must account for the total activity for which the employee is compensated.

  21. TIME AND REPORTING REQUIREMENTS • Must prepare at least monthly and must coincide with one or more pay periods. • Must be signed and dated by the employee. • A signature of the supervisor alone is not sufficient. • OMB A-87 Attachment B (8) (h) • (3) requires periodic, at least semi-annual, self-certification of time and effort by employees who work solely on a single federal grant. • (4) requires employees that work on multiple activities or cost objectives to support the distribution of their salaries or wages by personnel activity report or equivalent documentation.

  22. RECORD RETENTION • The retention period is three years after the state submits the last expense reimbursement to the federal government. • It does not matter when the grant was awarded; it is based on when the grant was closed at the state level.

  23. RECORD RETENTION • If litigation, claim negotiation, audit or other action involving the records has been started before the expiration of the three-year period, the following applies: • retained until completion of the action and resolution of all issues which arise from it. • If records are disposed of before the retention period, most likely it will be written up for an unallowable cost.

  24. CARRYOVER • Under section 421 (b) of the General Education Provisions Act (GEPA), school divisions and state education agencies must obligate funds during the 27 months extending from July 1 of the fiscal year for which the funds were appropriated through September 30 of the second succeeding fiscal year.

  25. CARRYOVER • This maximum period includes a 15-month period of initial availability plus a 12-month period for carryover. • Exception: Section 1127(a) of Title I of the ESEA limits the amount of Title I, Part A, funds a school division may carry over from one fiscal year’s allocation to not more than 15 percent of the total Title I, Part A, funds allocated to the school division for that fiscal year.

  26. Carryover Example 2011 Grant Year

  27. ENCUMBRANCE OR OBLIGATIONS • Acquisition of real or personal property • Encumbered on date on which a binding written commitment to acquire the property is made. • Personal services by an agency employee • Encumbered when the services are performed. • Personal services by a contractor not employee • Encumbered on date on which the agency makes a binding written commitment to obtain the work.

  28. ENCUMBRANCE OR OBLIGATIONS • Performance of work other than personal services • Encumbrance is made on date the agency makes a binding or written commitment to obtain the work. • Public utility services • Encumbrance is made when agency receives the services.

  29. ENCUMBRANCE OR OBLIGATIONS • Travel • Encumbrance is made when the travel is taken. • Rental of real or personal property • Encumbrance is made when the agency uses the property.

  30. OBJECT CODES • 1000 - PERSONAL SERVICES • All compensation for the direct labor of persons in the employment of the local government. • Salaries and wages paid to employees for full and part-time work, including overtime, shift differential and similar compensation. • Also includes payment for time not worked, including sick leave, vacation, holidays and other paid absences (jury duty, military pay, etc.) which are earned during the reporting period.

  31. OBJECT CODES • 2000 - EMPLOYEE BENEFITS • Job related benefit provided employees are part of their total compensation. • Fringe benefits include the employer’s portion of FICA, pension, insurance (life, health, disability income, etc.) and employee allowances.

  32. OBJECT CODES • 3000 - PURCHASED/CONTRACTUAL SERVICES • Services acquired from outside sources. • Allowable payments would be to individual or firms that are independent contractors and not employees of the grantee or subgrantee organization. • Purchase of the service is on a fee basis or fixed time contract basis. • Payment for rentals and utilities are not included in this account description. (One can only charge indirect on the first $25,000 of a contract). • The word “honorarium” is sometimes used to characterize such payment, however it can be problematic when included in a grant because it can be seen as gratuity. • The term “fee” is commonly used and will raise fewer questions.

  33. OBJECT CODES • 4000 - INTERNAL SERVICES • Charges from an internal service fund to other functions/activities/elements of the local government for the use of intergovernmental services such as data processing, automotive/motor pool, central purchasing/central stores, print shop, and risk management. • These services are provided by internal services within the school division and possibly the county, but not a vendor.

  34. OBJECT CODES • 5000 - OTHER CHARGES • Includes expenditures that support the program, including utilities (maintenance and operation of plant), staff/administrative/consultant travel, travel (staff/administration), office phone charges, training, leases/rental, indirect cost and other.

  35. OBJECT CODES • 6000 - MATERIALS AND SUPPLIES • Includes articles and commodities that are consumed or materially altered when used and minor equipment that is not capitalized. • This includes any equipment purchased under $5,000 unless the school division has set a lower capitalization threshold. • Computer equipment under $5,000 would be reported in “materials and supplies.” • Food purchases for the program “like preschool children” would fall under code 6000.

  36. OBJECT CODES • 8000 - CAPITAL OUTLAY • Outlays that result in the acquisition of or additions to capitalized assets. • Capital Outlay does not include the purchase of equipment costing less than $5,000 unless the school division has set a lower capitalization threshold. • No indirect cost calculation is allowable on object code 8000.

  37. DIRECT COST • DIRECT COST • Costs can be identified specifically with a particular final cost objective. • Typically direct cost chargeable to federal awards are: • Compensation of employees for the time devoted and identified specifically to the performance of those awards. • Cost of material and supplies acquired, consumed, or expended specifically for the purpose of those awards. • Equipment and other approved capital expenditures. • Travel expenses incurred specifically to carry out that award.

  38. INDIRECT COST • INDIRECT COSTS • General Indirect costs are those: • (a) incurred for a common or joint purpose benefiting more than one cost objective, and • (b) not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. • The term “indirect cost,” applies to costs of this type originating in the grantee department, as well as those incurred by other departments in supplying goods, services and facilities.

  39. SELECTED ITEMS OF COST • ADVERTISING AND PUBLIC RELATIONS COST • The cost of advertising media and corollary administrative costs. • Advertising media include magazines, newspapers, radio and television programs, direct mail, exhibits. • Advertising costs are allowable only when incurred for the recruitment of personnel, the procurement of goods and services, the disposal of surplus materials, and any other specific purposes necessary to meet the requirements of the federal award.

  40. ADVERTISING AND PUBLIC RELATIONS COST • Advertising costs associated with the disposal of surplus materials are not allowable where all disposal cost are reimbursed based on a standard rate as specified in the grants management common rule. • The term “public relations” includes community relations and means those activities dedicated to maintaining the image of the governmental unit or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public.

  41. ADVERTISING AND PUBLIC RELATIONS COST • Public relations costs are allowable only when costs are specifically required by the federal award. Examples: • Costs of communicating with the public and press pertaining to specific activities or accomplishments which result from performance of federal awards; • Costs of conducting general liaison with news media and government necessary to keep the public informed on matters of public concern; • Costs of demonstrations and exhibits; and • Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events.

  42. ADVERTISING AND PUBLIC RELATIONS COST • Public relations costs are unallowable for salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings. These include: • Cost of promotional items and memorabilia, including models, gifts and souvenirs; • Cost of advertising and public relations designed solely to promote the governmental unit; • Costs of displays, demonstrations, and exhibits; and • Costs of meeting rooms and other special events. Question: Allow hospitality suites and other special facilities used in conjunction with shows?

  43. ALCOHOL – AUDIT COST – COMMUNICATIONS • ALCOHOLIC BEVERAGES - Costs of alcoholic beverages are unallowable. • AUDIT SERVICES - The cost of audits are allowable provided that the audits were performed in accordance with the Single Audit Act, as implemented by Circular A-128, “Audits of State and Local Governments.” • COMMUNICATIONS - Cost of telephone, mail, messenger and similar communication services are allowable.

  44. COMPENSATION • Compensation for Personnel Services • Compensation for personnel services includes all remuneration, paid currently or accrued, for services rendered during the period of performance under federal awards, including but not necessarily limited to wages, salaries and fringe benefits. • The cost of such compensation are allowable to the extent that they satisfy the specific requirements of A-87 Circular, and that the total compensation for individual employees is reasonable for the services rendered and conforms to the established policies.

  45. CONTRIBUTIONS AND DONATIONS • Contributions and Donations • Contributions and donations, including cash, property, and services, by governmental units to others, regardless of the recipient, are unallowable.

  46. ENTERTAINMENT • Entertainment • Costs of entertainment, including amusement, diversions, social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation and gratuities) are unallowable.

  47. EQUIPMENT AND OTHER CAPITAL EXPENDITURES • “Capital Expenditures” means expenditures for the acquisition cost of capital assets (equipment, buildings, land), or expenditures to make improvements to capital assets that materially increase their value or useful life. • Capital expenditures are allowable as direct costs, provided that items with a unit cost of $5000 or more have prior approval of DOE office administering program.

  48. EQUIPMENT AND OTHER CAPITAL EXPENDITURES • “Equipment” means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the governmental unit for financial statement purposes, OR $5000. • When replacing equipment purchased in whole or in part with federal funds, the governmental unit may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property.

  49. MATERIALS AND SUPPLIES • Materials and Supplies • The cost of materials and supplies is allowable. • Purchases should be charged at their actual prices after deducting all cash discounts, trade discounts, rebates, and allowances received. • Withdrawals from general stores or stockrooms should be charged at cost under any recognized method of pricing, consistently applied. • Incoming transportation charges are a proper part of materials and supply costs

  50. MEMBERSHIPS, SUBSCRIPTIONS AND PROFESSIONAL ACTIVITIES • Memberships, Subscriptions, and Professional Activities • Costs of the governmental unit’s membership and subscription in business, technical, and professional organizations are allowable. • Single memberships are not allowable with federal funds.

More Related