Transcript NEW!
What are the Changes in the Uniform Administrative, Cost Principles and Audit Requirements and How Might This Impact Your Organization ?
Deirdre M. Joseph City of Tampa
If you don’t like something change it; if you can’t change it, change the way you think about it.~ Mary Engelbreit
Who, What, When,
Why
?
2009 – Executive Order to Reduce Improper Payments 2011 Presidential Memo on Administrative Flexibility, Lower Costs 2011 COFAR established to coordinate improvements
Reduce Paperwork Standardization Reduce Waste, Fraud, Abuse Flexibility
A21
Who,
What
,
When, Why?
A50 A87 A122 A133 A110 A89 A102
• •
Who
, What, When, Why?
Federal Agencies Recipient and Sub-Recipient Non-Federal Agencies
* States, Local Governments, Indian Tribes
• •
Institutions of Higher Learning Auditors
Who, What,
When
, Why?
December 26, 2014
Where Do I Find It?
• • • • • • Subpart A: Acronyms and Definitions Subpart B (100): General C (200): Pre-Award D (300): Post-Award E (400): Cost Principles F (500): Audit Appendices
Crosswalk
Categorize, Cross-Reference & Consult Procurement ~ Documentation ~ Inventory ~ Allowability Category
Procurement
OMB Requirement
200.113 - Mandatory Disclosure:
Requires disclosure, in writing, of
City of Tampa Compliance
The City of Tampa's procurement policy requires review vendors the City is unable to conduct business; grant requires review any violations of Federal criminal law involving fraud, of Excluded Party List bribery, or gratuity violations affecting the Federal award.
Notes
*Consider adding review of the State's convicted vendor list to Purchasing manual *Formal bid language may be expanded *Agreements may be impacted.
Legal ~ Human Resources ~ Internal Audit ~ Purchasing ~ Finance
Focus Now
•
Performance over Compliance
– Pre-Award Review – Clear milestones identified in agreements •
Strengthened Accountability
– Earlier communication of audit findings
Terminology Must
-vs-
Should
(Required) (Best Practice)
Audit Threshold
•
NEW!
Single Audit Threshold = $750,000
Old = $500,000 New = $750,000
Get All Departments Engaged
200. 447 Insurance & Indemnification
“ Deletes policy requirement that Federal government will participate in actual losses of a self-insurance fund that are in excess of reserves.”
Suggestion:
Involve Legal, Risk Management and Purchasing
200.206: Collection of Standardized Information on Applications
Grant Intake Information Form Grant Title:____ Granting Agency:____ Description_________ Contract#: _____ CFDA#:_______ Pass Through Entity:______ Federal Funding: $________ Period of Performance: State Funding: $________ Start Date:_____ End Date:______ Local Match: $________ Grant Type:
City’s Match: $________ Financial Reporting Schedule: _______ Progress Reporting ______
• •
200.203 Notice of Funding Opportunities
(A)
Notices must remain open for at least 30 days!
(B)
Standardizes information to be provided in Summary
• • • • • Federal Awarding Agency Name/Funding Opportunity Title/ Announcement Type (initial or modification) Funding Opportunity Number Catalog of Federal Financial Assistance (CFDA) Numbers Key Dates (due dates for applications or submissions and intent) • (C)
Full Text of Funding Summary
– Summary Information
200.207: Specific Conditions
• • Applicants or Recipients who have a history of ‘failure to comply” with general or specific terms and conditions or failure to meet expect performance goals
Result
– Awarding agency may impose additional specific award conditions
Example: Requiring payments as reimbursements rather than advance payments
Fixed Amount Awards
• • • 200.201
NEW!
Allow for ‘Fixed Amount’ awards
Awards rely more on Performance than Compliance • Payments are based on specific requirements such as performance, milestone and results
Grant Agreements
• •
New!
Subpart D- Post Federal Award Requirements
Requires
inclusion of performance goals in award’s terms and conditions, as a programmatic requirements.
•
200.301 Performance Measurement
Federal Agencies
MUST
include performance goals aligned with program goals in notice • Entities
Must
relate financial data to performance accomplishment
Goal = Response $100K purchase of Interoperable Communications 1 st quarter + 30% of our State can now Respond
• •
Cost Sharing or Match
200.306
CLARIFICATION!
Voluntary committed cost sharing is
not
expected and
cannot be used as a factor
during the merit review of applications or proposals.
• • • • •
CONSIDER Criteria for Cost Share/Match: Verifiable in records Not included in any other Federal award Necessary and reasonable to accomplish program Not paid by Federal Government Allowable in Subpart E
Procurement
• • 200.317
States may use their own written procurement policies and procedures
• Open Competition • • Ensure Most Economical Purchase Conflict of Interest • • Mandatory Disclosures Must perform cost analysis on all non competitive contracts • All contracts must include required clauses
Review of Risk of Applicants
• • 200.205
An evaluation framework must be in place (e.g. Do Not Pay) • Where necessary, specific conditions must be imposed to mitigate potential risk
200.333 Record Retention
•
Clarification
– Files must be maintained for 3 years from the date of FINAL Expenditure Report
Family Friendly Policies Encouraged NEW!
Cost of identifying locally available child care resource is allowable.
NEW!
Allows temporary dependent care cost that meet specified standards for travel
NEW!
Allows family leave as a fringe benefit
TIP: Review existing policies with Human Resources
Pass Through Entity Requirements
• • • • • 200.331
Sub Awards must be clearly identified Risk Evaluation of sub-recipient’s Verify compliance to audit requirements May impose specific sub-award conditions – – – –
Withhold cash Disallow cost Terminate (or temporary suspend) award Suspension and Debarment
Indirect Cost Rates
• • Must accept approved negotiated rate Pass-through entities must provide an indirect cost rate for sub-awards • If no Negotiated Rate; then 10% rate in effect
Merit Review Proposal
•
200.204 –
New!
•
Must have a merit review process
Equipment
• • 200.313
The State can follow their own equipment standards •
NEW!
Computing Devices with a value of $5,000 or less will be considered supplies
Equipment
• • 200.313 (continued) CLARIFICATION on SHARED USE. Allowed if such use will not ‘interfere” 1 st – Projects supported by federal agency 2 nd – Projects funded by other federal agencies 3 rd - Use for non-federally funded programs
Methods of Collection Transmission & Storage of Information
• • 200.335
Clarification!
Electronic, open, machine readable information is preferable to paper
(with appropriate internal controls to safeguard alteration of records)
• Can substitute electronic versions for original paper provided certain conditions
Required Certifications
• 200.415
NEW!
•
Must certify on annual and fiscal reports or vouchers requesting payment:
“By signing this report, I certify to the best of my knowledge and belief that the report is true, complete and accurate and expenditures, disbursements and cash receipts are for the purpose and objectives set forth in the terms and conditions of the federal award. I am aware that any false, fictitious or fraudulent information or the omission of any material fact, may subject me to criminal civil or administrative penalties for fraud, false statements, false claims or otherwise”
Payments
• • 200.305
Interest Earned on Federal Funds paid annually (rather than promptly) • Interest Bearing account increased to $500 for administrative purposes
• 200.339
Termination
•
Can Terminate Award
– Non compliance – For Cause – With Consent
Direct Cost
• • 200.413
Clarifies the circumstances where Administrative Support cost may be treated as direct cost
Compensation & Payroll
•
200.430
•
High standards of internal control over salaries and wages
Allowable -vs- Non-Allowable Cost
•
NEW
: 200.421 Advertising and Public Relations are allowable exceptions to the otherwise unallowable cost • 200.460 Proposal Cost are allowable
SUGGESTION
:
Develop a checklist of Allowable and Unallowable Cost for each grant file
Internal Controls
• • 200.303
Must safeguard and protect personally identifiable or sensitive information
Source Documents for Best Practices:
1. The Green Book 2. “Internal Control Framework” by COSO 3. Appendix XI, Compliance Supplement
Mandatory Disclosure
• 200.112: Awarding Agency
MUST
establish Conflict of Interest policy and Non Federal entity
MUST
disclose any potential Conflicts of Interest • 200.113:
MUST
disclose in a timely manner and in writing
ALL
violations of criminal law involving fraud, bribery or gratuity violations
Appendix II: Contract Provisions
•
NEW!
All contracts must contain provision covering the guidance, statues and regulations provided in this appendix
(11 areas) * Legal remedies when contractors violate or breach * Termination for cause or convenience * EEO * Rights to Inventors Made under Contract * Byrd Anti-Lobbying Amendment
Contract Administration
• • 200.318
Must
maintain oversight to ensure contractors perform in accordance with terms, conditions and specifications of the contract
Prior Approval
• • 200.407
Required
for the following circumstances: Change in principal investigator, project leader, partner or scope of effort Unrecovered indirect cost Additions to program income or use of program income to meet cost sharing or match Changes in project scope/objective, key person specified in award (non-construction award) Transfer of participant support cost to other expense categories Transfer or subcontract of work under the award
Auditor Selection
•
Peer Review is now a factor in selecting an auditor
• •
Suggestion:
Add requirement to upcoming RFPs Request periodic Peer Review results
Single Audit
• 200.512:
MUST
publish Single Audit Reports online at the Federal Audit Clearinghouse • •
Suggestion(s): Establish procedures/metrics Timely Single Audit submission Coordinated Audit Follow-Up
(e.g. using SF SAC categories to track findings)
Single Audit Report
• • 200.512
Auditor and auditees
MUST
ensure report do not include any Protected Personally Identifiable Information (PPII) •
MUST
sign statement that reports don’t include PPII and authorization to make reports publically available on a website.
Audit Resolution
• • 200.513
3 months to resolve findings • Federal Agency will appoint a Senior Accountable Official for oversight of Single Audit
Audit Findings
• • 200.516
MUST
identify audit findings as repeat (from prior audit) with reference to the audit finding number
Suggestion: Internally track audit findings
Close Out
• • 200.343
Clarification:
Final reports due 90 days from end of period of performance • Close Out period extended to one year
(813) 276-3388 If nothing ever changes, there’d be no butterflies ~ Author Unknown