Monitoring Subaward

Download Report

Transcript Monitoring Subaward

Subaward Hot Topics
NCURA Region IV Spring Meeting
April 29, 2014
Tyra Darville-Layne, Senior Grant & Contract Officer
Northwestern University
[email protected]
Andrea Marshall, Principal Grant Administrator
University of Minnesota
[email protected]
Learning Objectives
 Review the OmniCircular guidance for subawards, and provide
strategies to implement the new requirements into the
subaward process flow
 Address the NIH Subaccount impact on subawards and
provide institutional implementation strategies
 Review the HHS Pilot on Whistleblower Protections flow down
requirements for subawards
2 CFR 200
Subpart A – Acronyms and Definitions
Subpart B – General Provisions
OmniGuidance is a
combined, “simplified”
version of 8 previous circulars
Subpart C - Pre-award Requirements &
Contents of Federal Awards
Subpart D – Post Federal Award
Subpart E – Cost Principles
Subpart F – Audit Requirements
OmniGuidance Implementation Plan
(all but audit)
Agency plans
due to OMB
Audit provisions go
into effect for UMN
Plan (OmniGuidance)
Understand (Agency)
Plan (Agency)
2 CFR 200.330 Subrecipient &
Contractor Determinations
 Pass-through entity must determine whether funding should
be issued as a subaward or vendor agreement.
 Regardless of what agreement is called, the nature of the
work will be used to dictate whether 200.93 (subaward) or
200.22 (contract)
 Possible concerns:
 Each agency may require entities to comply with additional
guidance to support their classifications
 Possible solution:
 COGR to proposal standard way to document this
determination to Federal Government
200.331 Requirements for pass-through
F&A Requirements
 Sponsors (both Prime and Pass-Through) obligated to honor
subrecipients negotiated F&A rate
 Subrecipients without a negotiated rate may charge 10%
MTDC or may negotiate rate with Pass-Through entity
200.331 Requirements for pass-through
Required Data Elements that must be in Subaward
1. Subrecipient Name (must match registered name in DUNS)
2. Subrecipient DUNS Number
3. Federal Award Identification Number (FAIN)
4. Federal Award Date (date award was signed by the authorized
official of prime sponsor)
5. Subaward Period of Performance
6. Amount of Federal Funds Obligated by this action
7. Total Amount of Federal Funds Obligated to the subrecipient
200.331 Requirements for Pass-Through
Required Data Elements that must be in Subaward
8. Total Amount of Federal Award
9. Federal award project description, as required to be
responsive to FFATA
10. Name of Federal awarding agency, pass-through entity and
contact information for awarding official
11. CFDA Number and Name; the pass-through entity must
identify the dollar amount made available under each Federal
award and the CFDA number at the time of disbursement
12. Identification of whether the award is R&D
13. Indirect cost rate for the Federal award (including if the de
minimis rate of 10% MTDC is charged)
200.331 Requirements for Pass-Through
Requirements of Subaward Document
 Subaward must list all requirements imposed by pass-through
entity so that award is used in accordance with Federal
statutes, regulations and the terms & conditions of Federal
 Any additional requirements that pass-through entity imposes
to subrecipient
- Must specifically list any financial and performance reports
that are required
 Requirement that subrecipient permit pass-through entity and
auditors to have access to subrecipient’s records & financial
statements as necessary
 Terms and conditions for subaward closeout
200.331 (b) Requirements for Pass-Through
Risk Assessment
 Each Pass-Through entity required to use Federal Audit
Clearinghouse to verify audit reports
* Items to consider when assessing risk:
The subrecipient’s prior experience with the same or similar
The results of previous audits (including whether subject to Single
Audit Requirements) Threshold changed from $500K to $750K
Whether the subrecipient has new personnel or new or
substantially changed systems
The extent and results of Federal award agency monitoring (see
 Pass-Through entity must document acceptance of management
200.331 (c) Requirements for Pass-Through
Subaward Terms and Conditions
Include additional terms and conditions and/or
impose specific conditions in response to audit
200.331 (d) Requirements for Pass-Through
Monitoring Subaward
Pass-through entities are required to:
 Review financial and programmatic reports required in
 Follow-up and ensure that subrecipient takes timely and
appropriate action on all deficiencies pertaining to the
Prime Federal award detected through audits, on-site
reviews, and other means.
 Issue a management decision for audit findings pertaining
to the Federal award provided to subrecipient from PassThrough entity
200.331 (d) Requirements for Pass-Through
Monitoring Subaward
 Review and decision on management decision must occur
within six months after audit is available in Federal Audit
 Institutions may decide to accept corrective action plan
documented by subrecipient, may modify existing
subaward(s), or may choose to write additional requirements
into future subawards.
 Whatever option institution chooses, documentation of
decision must be maintained.
200.331 (e) Requirements for Pass-Through
Monitoring Tools
 Depending upon the risk assessment, recommended
monitoring tools:
 Providing subrecipients with training and technical
assistance on program-related matters
 Performing on-site reviews of the subrecipient’s
program operations
200.332 Fixed Amount Subawards
Issuance of fixed amount subaward requires Federal award
agency prior approval
Must not exceed the Simplified Acquisition Threshold
Subaward must meet the requirements for fixed
amount awards outlined in 200.201 Use of grant
agreements (including fixed amount awards), cooperative
agreements, and contracts
* Relies more on performance than compliance for
 Possible concerns: Delay of subaward issuance while approval
is pending and increases administrative burden for all parties.
Implementation Strategies
 Risk Assessment tools
* Modify subrecipient questionnaires and
checklists to incorporate additional risk elements
 Subaward templates and issuance
* Watch for FDP subaward template revisions
 Monitoring: determine who will conduct site visits and
who will provide resources
NIH Transition to PMS Subaccounts
NIH Notice Number: NOT-OD-13-112 and NOT-OD-13-120
 New DHHS Requirement: segregate letter of credit draws on
an award-by-award basis
 Removes ability to “pool” expenses and perform drawdown
for all awards at once
 Enables the government to do award-by-award burn rate
calculations (enhance ability to detect fraud, waste and
NIH Transition to PMS Subaccounts
Federal FY14
 NIH issues competitive awards in “P” accounts
 Each NIH competitive awards (new or renewal) will be set up
as new in financial system
Federal FY15
 NIH non-competing awards (except those in their final year)
will be divided by NIH into two “mini” competitive segments
 (1) Start of original competitive segment – end of budget
period awarded in FY14
 (2) “Type 4” = balance of original competitive segment
 Type 4s will be set up as “new” in the financial system
Institutional Implementation
 Assess the potential impact
(human resources, loss of revenue)
 Consider existing enterprise system tools
 Identify additional report needs to assist
Research Office, Grant Accounting, and Units
 Communication Strategy
Institutional Implementation
Strategies: Competitive awards
 Renewals are set up as brand new awards in
financial system
 Establish new Subaward under each Renewal
 Establish new PO # (subaward ID #), and start
new cumulative amount for FFATA reporting
Institutional Implementation
Strategies: Non-competing
 Non-competing awards will be set up as New award in
financial system
 New Subaward will be issued (even though it’s mid-Project
- Since new subaward is issued: start new cumulative amount
for FFATA Reporting
- FCOI information will be transferred from old award to new
award (Investigator training and disclosure information)
- Awards that have automatic carry forward: funding will be
added to award once NIH transfers balance to new DOC ID;
amendment to subaward will be issued authorizing the
carry forward
HHS Whistleblower Protections
Congress has enacted many whistleblower protection
statutes to encourage employees to report fraud, waste,
and abuse. You should be aware that the latest
whistleblower protection statutes went into effect on July 1,
2013. The statute, 41 U.S.C. 4712, applies to all employees
working for contractors, grantees, subcontractors and
subgrantees on federal grants and contracts. The National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013
(Pub. L. 112-239, enacted January 2, 2013) mandates a pilot
program entitled "Pilot Program for Enhancement of
Contractor Employee Whistleblower Protections".
HHS Whistleblower Protections
This program requires all grantees, their subgrantees and
subcontractors to:
1. Inform their employees working on any Federal award they are
subject to the whistleblower rights and remedies of the pilot
2. Inform their employees in writing of employee whistleblower
protections under 41 U.S.C. 4712 in the predominant native
language of the workforce; and,
3. Contractors and grantees will include such requirements in any
agreement made with a subcontractor or subgrantee.
HHS Whistleblower Protections
The statute (41 U.S.C. 4712) states that an "employees of a contractor,
subcontractor, grantee [or subgrantee] may not be discharged,
demoted, or otherwise discriminated against as a reprisal for
"whistleblowing". In addition, whistleblower protections cannot be
waived by any agreement, policy, form or condition of employment.
Whistleblowing is defined as making a disclosure "that the employee
reasonably believes is evidence of any of the following:
* Gross mismanagement of a Federal contract or grant;
* A gross waste of Federal funds;
* An abuse of authority relating to a Federal contract or grant;
* A substantial and specific danger to public health or safety; or,
* A violation of law, rule, or regulation related to a Federal contract or
grant (including the competition for, or negotiation of, a contract or
HHS Whistleblower Protections
To qualify under the statute, the employee's disclosure must be made
* A Member of Congress, or a representative of a Congressional
* An Inspector General ;
* The Government Accountability Office;
* A federal employee responsible for contract or grant oversight or
management at the relevant agency;
* An official from the Department of Justice, or other law enforcement
* A court or grand jury; or,
* A management official or other employee of the contractor,
subcontractor, grantee, or subgrantee who has the responsibility to
investigate, discover or address misconduct.
HHS Whistleblower Protections
The requirement to comply with, and inform all
employees of, the "Pilot Program for Enhancement
of Contractor Employee Whistleblower
Protections" is in effect for all grants, contracts,
subgrants and subcontracts issued beginning July 1,
2013 through January 1, 2017.
Equal Opportunity: Final Rule
11. Does the Final Rule still permit my company to incorporate the
Equal Opportunity (EO) Clause into subcontracts by reference?
Yes. The Final Rule permits contractors to incorporate the EO Clause
into subcontracts by reference, but only by citing to the EO Clause in
the regulations AND including the following sentences in bold text:
"This contractor and subcontractor shall abide by the requirements of
41 CFR 60-741.5(a). This regulation prohibits discrimination against
qualified individuals on the basis of disability, and requires affirmative
action by covered prime contractors and subcontractors to employ and
advance in employment qualified individuals with disabilities."
Equal Opportunity: Final Rule
§ 60-741.1 Purpose, applicability, and construction.
(a) Purpose. The purpose of this part is to set forth the standards
for compliance with section 503 of the Rehabilitation Act of 1973,
as amended (29 U.S.C. 793), which prohibits discrimination
against individuals with disabilities and requires Government
contractors and subcontractors to take affirmative action to
employ and advance in employment qualified individuals with
Equal Opportunity: Final Rule
(b) Applicability. This part applies to all Government contracts
and subcontracts in excess of $10,000 for the purchase, sale or
use of personal property or non-personal services (including
construction): Provided, That subpart C of this part applies only
as described in § 60-741.40(a). Compliance by the contractor
with the provisions of this part will not necessarily determine its
compliance with other statutes, and compliance with other
statutes will not necessarily determine its compliance with this
part: Provided, That compliance shall also satisfy the employment
provisions of the Department of Labor's regulations
implementing section 504 of the Rehabilitation Act of 1973 (see
29 CFR 32.2(b)) when the contractor is also subject to those
Equal Opportunity: Final Rule
(c) Construction—(1) In general. Except as otherwise provided in
this part, this part does not apply a lesser standard than the
standards applied under title I of the Americans with Disabilities
Act (ADA) of 1990, as amended, (42 U.S.C. 12101 et seq.) or the
regulations issued by the Equal Employment Opportunity
Commission pursuant to that title (29 CFR part 1630). The
Interpretive Guidance on Title I of the Americans with Disabilities
Act set out as an appendix to 29 CFR part 1630 issued pursuant
to that title may be relied upon for guidance in interpreting the
parallel non-discrimination provisions of this part.
For more information…
1. Final Guidance (OMNI)
2. NIH Notice NOT-OD-13-120
3. NIH FAQ’s
4. The Federal Demonstration Partnership (FDP)
5. HHS Whistleblowers Protections Pilot – AHRQ implementation
6. Section 503 Crosswalk: Existing Rule vs. Final Rule [Dept. of Labor]
How can you help…
Collaborate with your institution’s Pre- and Post-Award offices
Attend and participate in meetings, webinars, etc.
Remember to submit your questions to the appropriate forums
Engage, embrace and empower your research community