Financial Management Program
Top Ten Things to Know About
New Federal Grant Compliance
Presented by:
Tracy Arner, CPA
[email protected]
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Learning Outcome
At the end of this session, the participant will be able to discuss:
1. New name for uniform grant guidance
2. Where to find guidance
3. Effective dates
4. Single audit threshold
5. UGG Sections
6. Significant definitions
7. Select compliance responsibilities
8. Tracking your award
9. Internal control guidelines
10. Purchasing guidelines
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1. New Name
Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards 2 CFR 200
2. Where to Find New Guidance
www.gpo.gov/fdsys
– Free online access to official information from
all three branches of federal government
– U.S. Government Publishing Office, Federal
Digital System
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2. Where to Find New Guidance
• Daily Federal Register – publishes amendments to federal
agency rules or regulations www.gpo.gov/fdsys
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2. Where to Find New Guidance
Online version of CFR
– www.ecfr.gov
– Updated daily for changes published in the Federal Register
– Can search online by title and part
– Only the printed version is official
– When researching a section of the e-CFR, verify results
against official version at www.fdsys.gov as well as Federal
Register amendments
– Administrative Committee of the Federal Register (ACFR) is
working to grant the e-CFR official status
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3. Effective Dates
AUDIT
• Fiscal years beginning after 12/26/2014
§ 200.110(b)
Early Implementation NOT allowed
• FY 2015 Audits possibly test grants
– Subject to both old & new requirements
3. Effective Dates
ADMINISTRATIVE REQUIREMENTS
Effective for awards after 12/26/14 § 200.110
(Previously- A-102 and A-110)
– Those matters common to grants in general, such
as financial management, kinds and frequency of
reports, and retention of records.
– Distinguished from programmatic requirements,
which concern matters that can be treated only
on a program-by-program or grant-by-grant basis,
such as kinds of activities that can be supported
by grants under a particular program
4. Single Audit Threshold
§ 200.501(a)
Increased from
$500,000
to
$750,000
5. UGG Sections
5. UGG Sections
6. Definitions
Subpart C
Federal agency or Pass-Through Entity
(PTE) must decide on the appropriate
instrument for the Federal award
§ 200.201
– Grant agreement
– Contract
– Cooperative agreement
– Fixed amount award
6. Definitions - Subpart A
Form of agreements
Grant Agreement § 200.51(a)
• To enter a relationship
• To transfer anything of value to the nonFederal entity
• To carry out a public purpose
• Not to acquire property or services for the
Federal awarding agency or pass-through
entity's direct benefit or use
6. Definitions – Subpart A
Form of agreements
Contract § 200.22
• Legal instrument by which a non-federal
entity purchases property or services needed
to carry out a project or program under a
federal award
Cooperative agreement § 200.24(b)
– Provides for substantial involvement between the
Federal awarding agency or pass-through entity
and the non-Federal entity in carrying out the
activity contemplated by the Federal award
6. Definitions – Subpart A
Form of agreements
Fixed Amount Award § 200.45
• Type of grant agreement under which a
federal awarding agency or pass-through
entity provides a specific level of support
without regard to actual costs incurred
under the federal award
• Accountability is based on performance
and results
6. Definitions – Subpart A
Form of agreements
Subaward § 200.92
An award provided by a pass-through
entity to a subrecipient for the subrecipient
to carry out part of a Federal award
received by the pass-through entity
Does not include payments to a contract or
beneficiary of a federal program
6. Definitions Subpart A
Entity
Contractor § 200.23
• Entity that receives a contract as defined
in § 200.22 replaces term vendor
Non-Federal Entity § 200.69
• State, local government, Indian tribe,
institution of higher education, or non-profit
organization that carries out a federal
award as a recipient or subrecipient
6. Definitions Subpart A
Entity
Pass-through entity § 200.74
• Non-federal entity that provides a
subaward to a subrecipient to carry out
part of a Federal program
6. Definitions Subpart A
Entity
Subrecipient § 200.93
• Non-federal entity that receives a
subaward from a pass-through entity to
carry out part of a federal program but
does not include an individual that is a
beneficiary of the program
7. Your Compliance
Responsibilities
§ 200.101(b)(1)
Terms and conditions flow down to
subawards to sub-recipients
– Unless specified otherwise
– Federal agencies prohibited from imposing
additional or inconsistent requirements (with
some limited exceptions outlined in §
200.102 & 200.210)
• When approved by OMB
• Required by Federal statutes, regulations, or Exec
order
7. Your Compliance
Responsibilities
• Review form of your agreement for
the following requirements
– Reporting
– Compliance
– Eligibility
7. Your Compliance
Responsibilities
Payment – §200.305(b)
Largely the same as previously in A-102 Grants
and Cooperative Agreements with State and
Local Governments
• Payment method must minimize time between
receipt of federal funds and their disbursement
• NFE payment must be in advance provided NFE
maintains written procedures that minimize time
elapsing between transfer of funds and
disbursement
7. Your Compliance
Responsibilities
Payment – §200.305
• §200.305(b)(3)Reimbursement is preferred
method if requirement for advances cannot be
met (there are some exceptions (see (b)(4))
• Minimum amount needed for actual cash
disbursements
• NFE must make timely payment to contractors
7. Your Compliance
Responsibilities
Compliance Supplement (CS)
Appendix XI to Title 2 CFR Part 200
https://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2015
7. Your Compliance
Responsibilities
7. Your Compliance
Responsibilities
• Audit for federal grants >=$750,000
• Qualified auditor
• Single Audit Report
– Compliance
– Internal Control
– Schedule of Expenditures of Federal Awards
(SEFA)
– File at Federal Audit Clearinghouse
http://harvester.census.gov/sac/
8. Properly Tracking Your Award
Financial Management System – § 200.302(b)
1. Identification
in its accounts of all federal
awards received and expended
–
–
–
–
Federal program name
Federal agency
CFDA number and title
Federal award identification number and award
year
– Name of the federal agency
– Pass-through entity, if any (PTE)
8. Properly Tracking Your Award
Financial Management System – § 200.302(b)
2. Accurate, current, and complete disclosure
of
– Financial results of each federal award or
program
3. Identify the source and application of funds
– Supported by adequate documentation
4. Effective control over and accountability for
– All funds, property, and other assets
8. Properly Tracking Your Award
Financial Management System – § 200.302(b)
5. Comparison of expenditures to budget for
each award
6. Written procedures to implement the
requirements for
– Cash management
– Determining allowability of costs in
accordance with cost principles
8. Properly Tracking Your Award
§ 200.313(d)
Property records must be maintained
that include
• Description
• Serial number or other identification number
• Source of funding
– Including Federal Award Identification Number
(FAIN)
• Who holds title
8. Properly Tracking Your Award
§ 200.313(d)
Property records must be maintained
that include
•
•
•
•
•
Acquisition date
Cost of the property
% of federal participation in project costs
Location, use, and condition
Disposition data including
– Date of disposal
– Sales price
8. Properly Tracking Your Award
Equipment – § 200.313(d)(2)
– Physical inventory at least every 2 years
– Controls to prevent loss, damage, or theft
– Adequate maintenance
– Sale for highest return
9. Implementing Internal Controls
§ 200.303
• NFE must establish and maintain effective
internal control over federal award
– Provides reasonable assurance that NFE is
managing the award in compliance with
federal statutes, regulations, and terms and
conditions
– Internal controls should (recommended
practice) be in compliance with guidance in
either Green Book or COSO
http://www.gao.gov/greenbook/overview
10. Follow Purchasing Guidelines
Subpart D – Post Federal Award Requirements
• Micro-purchases < $3,000 – § 200.320(a) - NEW
– No need for quotations
– Equitable distribution among qualified vendors
• Small purchases >$3,000 and < $150,000 – § 200.320(b) –
Had been $100,000 – Circular A-102-36(d)(1)
– $150,000 is current Simplified Acquisition Threshold. Will be
indexed for inflation – UGG Subpart A – Definitions § 200.88
– Simple & informal methods
– Quotations must be obtained from adequate number of
qualified sources
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10. Follow Purchasing Guidelines
Subpart D – Post Federal Award Requirements
• Sealed bids (formal advertising) > $150,000 –
§200.320(c)
– Preferred for construction projects
– Must be advertised
– A firm, fixed price contract is awarded to lowest responsible
bidder and can be made principally on basis of price
– May reject all bids for valid reason
Continued on next slide
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10. Follow Purchasing Guidelines
Subpart D – Post Federal Award Requirements
• Sealed bids (formal advertising) > $150,000
§200.320(c)
– Watch for CONFLICT with state law effective 7/1/2014
• OCGA 32-4-63 for Counties & 32-4-113 for municipalities
• Increased threshold before which road contracts must have
bids
• From $20,000 to $200,000
• Which is higher than Federal requirement. If federal funds
are involved, Federal requirement overrules State
requirement
• Watch for contracts between $150,000 & $200,000 with no
bids
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10. Follow Purchasing Guidelines
Subpart D – Post Federal Award Requirements
• Competitive proposals > $150,000 – § 200.320(d)
– When conditions are not appropriate for the use of sealed
bids
– More than one source available
– Usually used for fixed fee or cost reimbursement
– Must be advertised
– Need a written method of evaluation and selection
– Go to an adequate number of vendors
– Award must go to “most advantageous” proposal
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10. Follow Purchasing Guidelines
Subpart D – Post Federal Award Requirements
• Noncompetitive purchases – § 200.320(f)
• May be used when one or more of the following
circumstances apply
–
–
–
–
Sole source
Emergency
Written request made AND approved by federal entity
Competition is determined to be inadequate
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Other Training
• http://www.cviog.uga.edu/localfinance
• Federal Grants Compliance Update
– March 8, 2016, Lawrenceville, GA
– $179
www.vinsoninstitute.org
©2016 The Carl Vinson Institute of Government. All rights reserved.