The impact of omb circulars super or otherwise on federal programs
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The Impact of OMB Circulars (Super or Otherwise) on Federal Programs. Michael Brustein, Esq. [email protected] Brustein & Manasevit, PLLC Fall Forum 2012. What are “circulars”? Do they matter? Where do they stand in the legal hierarchy?. Administrative Principles.

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The impact of omb circulars super or otherwise on federal programs

The Impact of OMB Circulars (Super or Otherwise) on Federal Programs

Michael Brustein, Esq.

[email protected]

Brustein & Manasevit, PLLC

Fall Forum 2012



Administrative principles
Administrative Principles Programs

  • A-102 – State/Locals 34 CFR Part 80

  • A-110 Postsecondary and Nonprofits 34 CFR Part 74


Cost principles
Cost Principles Programs

  • A-87 State/Locals – 2 CFR Part 225

  • A-21 Postsecondary - 2 CFR Part 220

  • A-122 Nonprofits


Audit principles
Audit Principles Programs

  • A-133 State/Locals/Postsecondary/

    Nonprofits



Obama executive order 13563
Obama Executive Order 13563 Programs

“Regulatory Review”


Omb advance notice of proposed rulemaking february 12
OMB ProgramsAdvanceNotice of Proposed Rulemaking – February 12

What will be the effective date of changes?


Council on financial assistance reform cofar
Council on Financial Assistance Reform (COFAR) Programs

  • 10 members from largest grant making agencies: HHS, AG, ED, Energy, DHS, HUD, DOL, DOT


Expect revisions to
Expect Revisions to: Programs

  • Cost Principles

    • A-21

    • A-87

    • A-122

  • Administrative Principles

    • A-110

    • A-102

  • Federal Agency Audit Resolution

    • A-50

  • Single Audit

    • A-133


  • Super circular
    Super Circular Programs

    • Increase consistency

    • Decrease complexity

      But allows for disparate treatment depending on type of entity


    Single audit threshold
    Single Audit Threshold Programs

    • Under $1 million in total federal expenditures:

      • No single audit

      • Augmented pass-through role

  • Between $1 million and $3 million

    • More “focused” single audit

  • Over $3 million

    • Full single audit


  • Focused single audit 1 to 3 million
    “Focused Single Audit” Programs($1 to $3 Million)

    • Single auditors to review

      • 2 Compliance Requirements

        • Allowable/Unallowable

        • Federal agency determines – but priority on risk of improper payments, or fraud, waste, and abuse

          (look to Compliance Supplement)



    Full single audit over 3 million universal compliance requirements
    “Full Single Audit” Over $3 Million Programs“Universal Compliance Requirements”

    • Allowable Costs

    • Eligibility

    • Reporting

    • Subrecipient Monitoring

    • Period of Availability of Federal Funds

    • Procurement Practices Comply with Suspension/Debarment


    Federal agencies to identify non universal elements with focus on preventing fraud waste and abuse
    Federal Agencies to identify “non-universal” elements, with focus on preventing fraud, waste, and abuse


    Pass through agencies
    Pass-Through Agencies with focus on preventing fraud, waste, and abuse

    • Attempt to reduce burden on pass-through (SEA)

    • Federal Agencies to better coordinate review of subrecipient internal controls when 2 or more federal agencies funding



    Increasing threshold would increase burden on SEA for monitoring and Limited Scope Audits

    ???


    How do your programs measure up against circulars
    How do your programs measure up against Circulars? monitoring and Limited Scope Audits


    Phil maestri aeffa 10 3 12
    Phil Maestri – AEFFA – 10/3/12 monitoring and Limited Scope Audits

    • OIG “Perfect Lens”

    • Program Officials “Reality”

    • OGC ???


    Filter out noise on success vs compliance
    Filter out “noise” on monitoring and Limited Scope Audits“Success” vs. “Compliance”



    Oig final audit report ed oig a19k0009
    OIG Final Audit Report monitoring and Limited Scope AuditsED-OIG/A19K0009

    • “The Department’s External Audit Resolution Process”

      • July 3, 2012



    Audit is recommendation to program operating component poc
    Audit is recommendation to Program Operating Component (POC):

    • Sustain Findings

    • Not Sustain Findings

    • Sustain in Part


    Poc issues program determination letter pdl
    POC Issues Program Determination Letter (PDL) (POC):

    • Closes Matter

    • Recovery of Funds (Audit, Monitoring Report) 34 CFR 81.30

    • Corrective Action



    Oig report on external audit resolution process
    OIG Report on External Audit Resolution Process after issuance of final audit report

    • 90% of audits between 2007-2010 not resolved within 6 months




    Why days and included questioned costs totaling $568 million


    • Lack of staff days and included questioned costs totaling $568 million

    • Lack of knowledge among staff

    • Lack of organizational priority on audit activities

    • Overall lack of accountability


    Ogc position
    OGC Position days and included questioned costs totaling $568 million

    • Burden of establishing prima facie case

    • Determination of harm to federal interest

      (See Appendix to 34 CFR Part 81)




    Questions
    Questions lack merit


    Disclaimer lack merit

    This presentation is intended solely to provide general information and does not constitute legal advice.  Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC.  You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.


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