Transcript ECRT - UTHSCSA - Office of the Vice President for Research

OMB Uniform Guidance
Faculty Presentation
Chris G. Green, CPA
Director, Sponsored Programs
Topics
• When and why the new OMB Uniform
Guidance?
• What is the new OMB Uniform Guidance
(UG)?
• What does the UG apply to?
• How does the UG affect HSC investigators’
proposals and post-award responsibilities?
When and Why the Change?
• Developed in response to the Executive Order 13520
(2009) on Reducing Improper Payments
• Presidential Memorandum detailed Administrative
Flexibility, Lower Costs, and Better Results for State,
Local, and Tribal Governments
• President Obama directed Office of Management &
Budget (OMB) to implement
Note: It is simply the single largest regulatory change
in the last 50 years of research administration.
What is the Uniform Guidance?
Replaces eight (8) OMB circulars. As with the old federal
circulars, the Uniform Guidance provides:
• Maximum requirements that the federal agencies can impose
• Minimum standards for awardees
• Goal was to reduce fraud, waste and abuse with streamlining
policies
The Uniform Guidance currently has many names:
• Uniform Administrative Requirements (UAR)
• Super Circular
• 2 CFR Part 200 (Federal regulations)
What is the Uniform Guidance?
Uniform Guidance (UG):
a combined, “simplified”
version of 8 circulars
A-21
A110
A-87
2 CFR
200
A122
A-50
A133
A-89
A102
A-21 Cost Principles for IHE
A-110 Financial Mgt Standards for IHE
A-133 Single Audit Requirements
A-89 Catalog of Federal Domestic
Assistance (CFDA’s) now FAIN
A-102 Grants with State & Local Gov.
A-50 Audit Follow-up & Resolution
A-122 Cost Principles for Non-Profits
A-87 Cost Principles for State, Local …
Note: HSC is an IHE
(IHE – Institution of Higher Education)
What does it apply to?
• Applies to Federal Policies related to Grants
and Cooperative Agreements
• Cost and audit principles are also applicable to
Federal Contracts
• Each Federal Agency will have its own
implementation plans and can request
deviations upon OMB approval
• Effective December 26, 2014
Uniform Guidance
How does the UG affect HSC investigators?
What Has Changed?
“The Good”
Funding Opportunity Announcements (FOA)
Standard 60-day lead time
– Minimum number: 30 days, unless a different period is required by statute
or exigent circumstances as dictated by the agency head
• Announcement will be in a standardized
format & posted
– Specified summary data
– Specified full text announcement data
• Proposal application forms pre-approved by OMB
CFR 200.203
What Has Changed?
“The Good”
Cost-Sharing
• Voluntary committed cost-sharing is not expected
in research proposals
• Cost-sharing obligations must be included in FOA
• Cost-sharing may not be used as a factor in the
review of applications
CFR 200.306
What Has Changed?
“The Good”
Award Notices
• Federal Award Identification Number (FAIN)
• Terms and conditions must be spelled out
– Including deliverables (reports or other) and any milestones
– Think Subawards and the reports schedule
CFR 200.210
What Has Changed?
“The Good”
Clerical & Administrative Salaries
Direct charging of these costs may be appropriate only if all of the following
conditions are met:
1. Administrative or clerical services are integral to a project or
activity;
2. Individuals involved can be specifically identified with the project
or activity;
3. Such costs are explicitly included in the budget or have the prior
written approval of the Federal awarding agency; and
• Removal of “major project” requirement
• Yes – you can now start including them in proposals, but be cautious!
CFR 200.413
What Has Changed?
“The Good”
Changes in Direct Costing Rules
• Publication Costs (Page Charges)
– Page charges are still allowable costs after award end date but
before closeout (in essence, adoption of the NSF model)
• Computing Devices
– Devices under $5,000 may be direct charged (allocable portion
only) if essential to the performance of the Federal award. It is
now considered a supply.
– Does not have to be solely dedicated to the project
CFR 200.461, 200.453
What Has Changed?
“The Good”
Changes in Direct Costing Rules (cont’d.)
• Visa Costs as part of Recruiting
– Short-term, travel visas (as opposed to longer-term,
immigration visas) are allowable costs
– Short-term visas are issued for a specific period and
purpose and should be clearly identified as directly
connected to work performed on the award
CFR 200.463
What Has Changed?
“The Good”
Procurement
• Software now included in definition of equipment
• Rental costs, not just rental of facilities, excluded
from F&A
CFR 200.12; 200.68
What Has Changed?
“The Good”
F&A on Subawards
F&A improvements – 10% MTDC de minimis
• Subrecipients (e.g., foreign, small businesses, school
districts, etc.) without a negotiated rate can get an
automatic 10% MTDC F&A rate
• There will not be additional funding to cover existing
awards
• If necessary, the HSC can still negotiate a higher rate
with subrecipient
CFR 200.331
What Has Changed?
“The Bad”
Technical Performance Measures
• Increased focus on relationship between
technical performance and expenditures
• Streams from ARRA funding
• Agencies to provide clear performance goals,
indicators and milestones
• Impact has yet to be determined
CFR 200.210
What Has Changed?
“The Bad”
Changes in Direct Costing Rules
• Entertainment costs are still unallowable
unless it has a specific programmatic purpose
and is approved in the budget or by federal
agency written approval
CFR 200.438; 200.456
What Has Changed?
“The Bad”
Procurement
• Purchases over $3K will require competitive bidding
- Due to the significant increase in volume, turn
around on orders may be slowed
- $3K includes purchase of single or multiple items
(it is the total amount of the PO that applies)
Note: Based on pushback, OMB is providing a grace
period. Becomes effective for the HSC on 09/01/16.
CFR 200.320 & 318, OMB FAQ dated 08/29/14
What Has Changed?
“The Bad”
Changes in Effort Certification
• Standards for documentation and examples have
been removed; however…
• Will not change current effort certification model
• Burden still on investigators to certify their effort
CFR 200.430
What Has Changed?
“and the Ugly”
Award Closeout
• Must submit, no later than 90 calendar days, all financial,
performance, and other reports
• Anticipated agency implementation will limit cash draws at
day 91 unless an extension is approved. NIH and NSF will be
requesting an OMB exception to 120 days
CFR 200.343
What Has Changed?
“and the Ugly”
Fixed Amount Subawards
(ideal for very small, international and clinical trials)
• Requires agency prior approval
• Limited to < $150K
CFR 200.332
What Has Changed?
“and the Ugly”
Subrecipient Monitoring
• Increased burdens for subaward issuance
– Performance reporting must be explicitly delineated in the subaward
(Significant Principal Investigator participation will be required)
– Explicit lists of mandatory and optional factors to be included in
subrecipient monitoring
– New obligation for investigator to prove that he/she has
received/reviewed the subrecipient’s performance and financial
reports
• Subaward invoices must be paid within thirty (30) calendar
days after receipt of invoice
CFR 200.331
What Has Changed?
“and the Ugly”
Internal Controls and Compliance
• Uniform Guidance uses the phrase “Internal Controls” 103 times!
This implies an environment of increased scrutiny
• Here is the new financial certification:
“I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the
expenditures, disbursements and cash receipts are for the purposes 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.”
(U.S. Code Title 18, Section 1001 and Title 31, Sections 3729–3730 and 3801–3812)
CFR 200.415
Disclaimer
Please understand that the Uniform Guidance can, and
will, be subject to “technical corrections” and
UTHSCSA’s interpretation of the language may change
throughout the implementation process.
Rules, Polices?
Questions about the UG
Contact
Chris Green
Office of Sponsored Programs
Direct: 210-567-4938
Email: [email protected]