1 / 62

Tiffany R. Winters, Esq. Brustein & Manasevit, PLLC twinters@bruman.com @ TRWinters www.bruman.com

How the Proposed OMB Super-Circular Will Change the Administration of Federal Education Grants. Tiffany R. Winters, Esq. Brustein & Manasevit, PLLC twinters@bruman.com @ TRWinters www.bruman.com. Roadmap to the Future of Federal Grants Management: The “SuperCircular”.

biana
Download Presentation

Tiffany R. Winters, Esq. Brustein & Manasevit, PLLC twinters@bruman.com @ TRWinters www.bruman.com

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. How the Proposed OMB Super-Circular Will Change the Administration of Federal Education Grants Tiffany R. Winters, Esq. Brustein & Manasevit, PLLC twinters@bruman.com @TRWinters www.bruman.com

  2. Roadmap to the Future of Federal Grants Management: The “SuperCircular”

  3. Why “Supercircular”??? • Greater simplicity • Greater consistency • Obama Executive Order on Regulatory Review – 2011 • Increase efficiency • Strengthen oversight

  4. Greater “simplicity” means elimination of several compliance elements in the Compliance Supplement, including: • Equipment Management • MOE/Ear-Marking • Procurement • Program Income

  5. What is covered? • Administrative Requirements (A-102, A-110) • Cost Principles (A-87, A-21, A-122) • Audit Requirements (A-133, A-50)

  6. Who is covered? • All non-federal entities expending federal awards

  7. When is it effective? • Notice of guidelines released on • Proposed guidelines were released on 2/1/13 • Comment period closed on 06/02/13 • Over 300 comments were submitted (some over 100 pages long) • Analysis of public comments • Final guidelines released? • OMB hopes this December • Final regulation? • Not likely before 1/1/14 (includes any other EDGAR revisions) • No splitting FY

  8. Can a revised EDGAR be inconsistent with Supercircular? • Yes, but federal agencies applying more restrictive requirements need OMB approval Section _.108

  9. If program statute differs from Supercircular, statute governs Section _.106

  10. So what is new? …50 Shades of Change

  11. Federal agencies must evaluate risks to the program posed by each applicant • Financial stability • Management system • History of performance • Generally available information • Single audits • Capacity to implement programs Section _.205

  12. Agencies may impose conditions on grantee based on risk assessed Section _.205

  13. Performance Expectations • Award includes: timing and scope of expected performance – as related to intended outcomes Section _.404

  14. Subawarding Scope of Work • Eligible recipients may perform orsubawardthe performance of all or a portion of the work Section _.501(a)

  15. Pass Through Entity: case by case determination whether pass-through funds are grant or contract Section _.501(b)

  16. Pass Through Agency should consider imposing risk conditions on subrecipients in noncompliance Section _.501(c)(2)

  17. Pass Through Agency may impose “supplemental requirements” Section _.501(c)(4)

  18. Pass Through monitoring shall include: • Analyzing financial and programmatic reports • Ensure subrecipients take timely and appropriate corrective action • Issue management decision on A-133 finding at subgrantee level • Other – as necessary Section _.501(c)(5)

  19. Monitoring Tools of Pass Through • On-site reviews • Provide training and technical assistance • Arrange for “Agreed Upon Procedures” Section _.501(c)(5)

  20. Risk Factors for Pass Through Monitoring • Previous audits • New subrecipients • New personnel or substantially changed system • Extent of federal monitoring Section _.501(c)(6)

  21. Pass Through must conform timing of federal award cash to awards to subgrantees Federal award year July 1 to September 30 (next year) Section _.501(e)(2)

  22. Financial Management Systems • Section 502 essentially same as 80.20(b) • Accurate reporting • Records identifying source and use of funds • Effective internal controls to safeguard assets • Comparison of outlays and budgets • Cash management • Written procedures for allowability, allocability and reasonableness • Source documentation Section _.502

  23. Cash Management • Recipients shall maintain advances of federal funds in interest bearing accounts unless… • Recipient receives less than $120,000 in federal $ per year • Interest will not exceed $500 • Bank requires minimum balance Section _.502(e)(3)(k)

  24. Cash Management • Unrecovered indirect costs may be included as match only with approval of federal agency Section _.502(f)(2)

  25. Cash Management • Calculation of match based on A-110, not A-102 • Clear rules on fair market value, etc. Section _.502(f)

  26. Cash Management • General rule on program income “program income shall be deducted from total allowable costs” unless federal agency allows addition Section _.502(g)

  27. Cash Management • Changes to Budget – • Scope, Objective • Key person changes • Absence of manager Section _.502(h)

  28. Inventory Management 2 year inventory requirement remains • Equipment • Definition same • Acquisition cost of $5,000 • Useful life greater than one year Section _.503(d)

  29. Inventory Management • Use/Management/Disposition • Same as EDGAR 80.32 Section _.503(d)

  30. “Costs of Computing Devices” = “Supplies” But • When no longer needed for any other federally sponsored project, recipient may • Retain them • Sell them • But compensate federal government if per unit value exceeds $5000 But • Conflicts with C-31(6) “total aggregate value” of $5000 Section _.503(e) and Section _ .620

  31. Procurement Management • States must follow same procurement rules it uses for procurements from nonfederal funds • All others must follow Section 504 Section _.504

  32. Procurement Management • Section 504 Procurement Standards derived from A-110, EDGAR Part 74 and A-102, EDGAR Part 80 Section _.504(d)(4)

  33. Record Retention Management • Same as EDGAR: 3 years from date of submission of final expenditure report but – 5 year S/L Section _.506

  34. Cost Principles – Basic Considerations • Similar to A-87 but restructured to look more like A-21 and A-122 Section _.605

  35. Cost Shifting • Grantee cannot shift cost from one award to another to overcome shortfall, unless costs are allowable under both awards Section _.607(c)

  36. Cost Allocation • If a cost benefits two or more projects in a proportion easily determined, cost allocated on proportional benefit Section _.607(d)

  37. Cost Allocation • If proportion cannot be easily determined, allocate on any reasonable documented basis Section _.607(d)

  38. Set-Asides • If program statute contains reserves, limitations, amount not used cannot be charged to other federal awards Section _.611

  39. Administrative Costs • Salaries of administrative and clerical staff should be treated as indirect, unless • Services are integral to project, and • Individuals can be specifically identified, and • Costs are explicitly set out in budget, and • Costs not recovered as indirect Section _.615(d)

  40. Indirect Costs • A federally approved negotiated rate shall be accepted by all federal agencies • Exception: If required by law/regulation (restricted rate) Section _.616(c)(1)

  41. Indirect Costs • Pass through entities must abide by the federally recognized indirect cost rate negotiated between the federal agency and subrecipient Section _.501(c)(1)(D)

  42. Indirect Costs • But if no such rate exists, the pass through must negotiate the rate, or a de minimis indirect cost rate equal to 10% of total modified direct costs (But what about restricted rates? Most LEAs have restricted rates in single digits.) Section _.616(e)

  43. Time and Effort Management Major Overhaul • Eliminate reference to PARs • Now “Certified Reports” • Reports may be electronic • Semi-Annual for single cost objective - same Section _.621 C-10(9)

  44. Time and Effort Management • Certified Reports on 2 or more cost objectives certified by employee or individual responsible for verification Section _.621 C-10(9)

  45. Time and Effort Management All others: • After the fact, unless mutually satisfactory alternative approved by awarding agency • Certification periods cannot exceed 12 months: • Activities may be expressed as percentages Section _.621 C-10(9)

  46. Time and Effort Management • At postsecondary level, “reliance may be placed on estimates in which a degree of tolerance is appropriate” Section _.621 C-10(9)

  47. Time and Effort Management • No additional support other than certification is necessary Section _.621 C-10(9)

  48. Time and Effort Management • Substitute systems may be used if approved by cognizant agency • Federal agencies are encouraged to approve alternative proposals based on outcomes Section _.621 C-10(9)(F)

  49. Time and Effort Management • Awarding agencies may approve “blended funding” where multiple programs involved, and “performance -oriented metrics” are used Section _.621 C-10(9)(F)

  50. Cost Principles Changes • Costs for services of counsel (in-house or Bruman) for administrative proceedings (OALJ) may be charged unless the ALJ imposes a “monetary penalty.” Legal expenses are allowable if the proceeding is resolved by consent or compromise. Section _.621 C-14(2)

More Related