The Changing World of Grants Management

1. The Changing World of Grants Management Office of Federal Financial Management Presentation to the National Grants Management Association November 16, 2011

2. In the Beginning..... Land Grant Act was signed by President Abraham Lincoln in 1862 Justin Smith Morrill, Senator from Vermont President Abraham Lincoln Each state received a total of 30,000 acres of federal land for each member of congress the state had as of the census of 1860.

3. Federal Grants 1950 In 1950, Federal grants to states totaled $2.5 billion

4. Steep Rise in Federal Grants In Billions of $ $600B $200B $91B $24B $7B CFDA lists more than 2,000 Federal grant programs

5. Distribution of Federal Grants

6. Patty, Will you marry me?

7. Patty, Will you marry me? And pay my mortgage My student loan My child support “Grants can’t be taken for granted”

8. The Pyramid of Grant Requirements Authorization & Appropriations Program Statutes Appropriations Statutes OMB Circulars Government-Wide Suspension Debarment Regulations Government-Wide Davis Bacon Act Lobbying Act Drug Free Workplace Regulations Agency & Program Specific Program Regulations Guidance Policy Manuals Terms and Conditions • Grant Agreements, Terms and Conditions

9. OMB Grants Management Circulars • Cost Principles • A-21- Colleges & Universities • A-87- Governments • A-122- Non-Profits • Administrative Requirements • A-102- Governments • A-110- Everyone Else • A-89- Catalog of Federal Domestic Assistance • Audit Requirements • A-133- Everyone • Compliance Supplement • A-50 Audit Resolution $600 B What’s the LAW ?

10. Vision From the Federal Grants Community Strategy: We envision a future where applicants and grantees will interact with a single face of the federal government with easy access to information and a consistent process for searching, applying, and reporting on a grant. The process for applications will be clearly stated, simple, fair, and comprehensive. This will allow grantees to focus on mission fulfillment rather than complex or duplicative grants management requirements.

11. Improving Performance and Targeting Waste Fraud and Abuse

12. Improving Performance and Targeting Waste Fraud and Abuse • On February 28, 2011, President Obama issued a memorandum directing OMB to work with stakeholders to improve Federal grants management - specifically to target achieving outcomes and reducing administrative burden. • On June 13, 2011 the Administration unveiled the Campaign to Cut Waste; an Executive Order, titled, “Delivering an Efficient, Effective, and Accountable Government” (EO), was part of a broader set of announcements and activities. • Over the summer, OMB convened two intergovernmental work groups comprised of Federal agencies, state governments, and external stakeholders to develop recommendations to reform grants management.

13. Improving Performance and Targeting Waste Fraud and Abuse Renewed focus on four key areas for reform: • Establish Fair and Transparent Award Selection Procedures • Streamline Government-wide Reporting Requirements to Emphasize Results and Allow for Blending of Funds Across Programs • Improve Consistent Treatment of Direct and Indirect Costs • Focus Audits on Risk and Target Waste, Fraud, and Abuse

14. Council on Financial Assistance Reform This mission will be led by a Council on Financial Assistance (COFAR), a unified voice for policy change in the grants community. • Chaired by Controller • Senior Policy Officials (e.g., Asst. Secretary level) • Eight largest agencies delivering financial assistance (USDA, ED, DOE, HHS, DHS, HUD, DOL, DOT) • One rotating member for all other agencies (NSF)

15. Relationship of the COFAR to Other Governance Structures The Government Accountability & Transparency Board (GATB) will recommend a strategic vision for enhancing Federal spending transparency & reducing fraud, waste, and abuse to the White House/OMB for approval. The COFAR will incorporate that vision into its efforts to improve program delivery and performance outcomes. COFAR collaborative relationships with other councils: • The Chief Financial Officers Council (CFOC) • The Chief Acquisition Officers Council (CAOC) • The Performance Improvement Council (PIC) • OMB’s improper payments initiative Presidential Council on Integrity and Efficiency (IG Community) • Recovery Accountability and Transparency Board (RATB)

16. The Future of Grants Management What was accomplished? How was the money spent?

17. Pre and Post Award Requirements • Catalog of Federal Domestic Assistance & Advance Notice of Funding Priorities • Agency pre-award consideration of specific criteria for award • Standard forms for applications and reports • Standardized terms and conditions

18. Cost Allocation • Effort Reporting • F&A Rate Setting Practices • Federal Audit Coordination • Subrecipient Monitoring • Utility Cost Adjustment • Cost Sharing Policy • Incentives for cloud-based shared services • Direct vs Indirect Charging • Pooling of funds across programs

19. Single Audit and Audit Resolution • Audit threshold • Types of audit compliance requirements in A-133 & compliance supplement • Metrics to track audit resolution effectiveness • Cooperative audit resolution practices

20. Thank you Visit OMB’s Website: http://www.whitehouse.gov/ombContact OMB’s Office of Federal Financial Management: 202-395-3993