Transcript Nevada AEFLA Directors A Discussion of Federal Issues

NEVADA AEFLA DIRECTORS
A DISCUSSION OF
FEDERAL ISSUES
NOVEMBER 28, 2012
HYATT PLACE
LAS VEGAS, NV
PRESENTED BY MICHAEL BRUSTEIN, ESQ.
WWW.BRUMAN.COM
[email protected]
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AGENDA
1. Funding
2. Sequestration
3. Ryan Budget
4. Cash Management Issues
5. OMB Super Circular
6. Time and Effort
7. Reauthorization
8. Questions
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FUNDING - AEFLA
FY 11
FY 12
National
$521,270,370 $520,284,799
Nevada
$4,829,004
$4,943,602
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EL CIVICS
FY 11
FY 12
National
$74,850,000
$74,708,534
Nevada
$776,346
$768,631
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FY 13 – 7/1/13
6/30/14
• Continuing Resolution (CR) but only through
March 2013 increase of .612 of 1%
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SEQUESTRATION
• Budget Control Act, August 2011
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SEQUESTRATION
• Supercommittee tasked with cutting $1.5 trillion in
spending over next decade by Thanksgiving 2011
• Total failure to come to an agreement means
automatic cuts triggered
• Only intended as a threat – never meant to happen
• Cuts take effect January 2, 2013
• Automatic, across-the-board cuts
• Little discretion for appropriators, agencies
• Apply to FY 2013 federal spending numbers
• Could exacerbate effect of any cuts made in FY 2013
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WHEN WILL SEQUESTRATION HAPPEN?
• President Obama must issue a sequestration order
no later than January 2, 2012
• Funds received by States July 2012 and earlier are
NOT subject to sequestration
• Advance funding received in October of 2012 will
not be subject to sequestration when allocated
• BUT cuts will be calculated and applied to July 2013 funds
• Funding received in July of 2013 will be subject to
cuts
• After July 2013, cuts will be incorporated into
annual appropriations
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RYAN BUDGET
• Passed House
• 5% cut on 7/1/13
• 15% cut on 7/1/14
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CASH MANAGEMENT ISSUES
• Minimize time elapsing between
transfer from ED to SEA, and from SEA
to AEFLA provider for actual
expenditure
– 72 hours –
34 CFR 80.20(b)(7)
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• Interest accrued over $100 must
be remitted 34 CFR 80.21(i)
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PERIOD OF AVAILABILITY
• AEFLA requires multiyear funding
• Each AEFLA $ subject to
• 27 month availability
• 90 day liquidation
• 34 CFR 80.23
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• AEFLA Providers Cannot
Obligate Funds until Local Plan
Approved
34 CFR 76.708(c)
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• Obligations in carryover period
subject to current statute and
applications
34 CFR 76.710
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•Administrative Costs =
Indirect Costs
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OMB SUPER CIRCULAR
ADVANCE NOTICE
NPRM
FINAL RULE
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EXPECT REVISIONS TO:
1) Cost Principles
• A-21
• A-87
• A-122
2) Administrative Principles
• A-110
• A-102
3) Federal Agency Audit Resolution
• A-50
4) Single Audit
• A-133
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SUPER CIRCULAR
• Increase consistency
• Decrease complexity
But allows for disparate treatment
depending on type of entity
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• Will the shifting of Audit Thresholds
reduce burden on SEAs?
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SINGLE AUDIT THRESHOLD
a) Under $1 million in total federal
expenditures:
• No single audit
• Augmented pass-through role
b) Between $1 million and $3 million
• More “focused” single audit
c) Over $3 million
• Full single audit
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“FOCUSED SINGLE AUDIT”
($1 TO $3 MILLION)
• Single auditors to review
• 2 Compliance Requirements
1) Allowable/Unallowable
2) Federal agency determines –
but priority on risk of improper
payments, or fraud, waste,
abuse
(look to Compliance
Supplement)
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• Can SEA impose additional
compliance requirements??
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“FULL SINGLE AUDIT” OVER $3 MILLION
“UNIVERSAL COMPLIANCE REQUIREMENTS”
1.
2.
3.
4.
5.
6.
Allowable Costs
Eligibility
Reporting
Subrecipient Monitoring
Period of Availability of Federal Funds
Procurement Practices Comply with
Suspension/Debarment
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TIME AND EFFORT
•A-87 Requirements
•New Flexibility on Cost
Objectives
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REAUTHORIZATION
1. Current law authorized through 2003
2. Congress may consider WIA
Reauthorization next year
3. AEFLA is relatively non controversial
4. EL Civics likely to be folded into Basic
Grant
5. DOL Administration?
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QUESTIONS
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general information and does not constitute legal
advice or a legal service. This presentation does not
create a client-lawyer relationship with Brustein &
Manasevit, PLLC and, therefore, carries none of the
protections under the D.C. Rules of Professional
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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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