Transcript A Dozen Tips to Successfully Administering U.S

THE NEED FOR
BUSINESS MANAGEMENT SYSTEMS
THE BIG 5
NATIONAL GRANTS MANAGEMENT ASSOCIATION (NGMA)
Luncheon Series – Washington, D.C.
March 21, 2012
Richard Solloway
Solloway & Associates
301-320-5611
[email protected]
sollowayassociates.com
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THE BIG 5 – OPERATING SYSTEMS
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FINANCIAL
TRAVEL
PROPERTY MANAGEMENT
PERSONNEL
PROCUREMENT
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KEY CHARACTERISTICS
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ESTABLISHED WRITTEN POLICIES
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ADHERE TO FEDERAL STANDARDS
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POLICIES CONSISTENTLY APPLIED
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REASONABLENESS OF POLICIES
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FEDERAL REFERENCES
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NONPROFITS
2 CFR PART 230 – COST PRINCIPLES
 2 CFR PART 215 – ADMINISTRATIVE REQUIREMENTS
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UNIVERSITIES
2 CFR PART 220 – COST PRINCIPLES
 2 CFR PART 215 – ADMINISTRATIVE REQUIREMENTS
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STATE, LOCAL & INDIAN TRIBAL GOV’TS
2 CFR PART 225 – COST PRINCIPLES
 OMB CIRCULAR A-102 and COMMON RULE –
ADMINISTRATIVE REQUIREMENTS
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COST
PRINCIPLES
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Appendix A to 2 CFR Part 230--General Principles
Factors affecting allowability of costs. To be allowable under an
award, costs must meet the following general criteria:
a. Be reasonable for the performance of the award and be allocable
thereto under these principles.
c. Be consistent with policies and procedures that apply uniformly
to both federally-financed and other activities of the organization.
d. Be accorded consistent treatment.
g. Be adequately documented.
Appendix A to 2 CFR Part 225—General Principles for
Determining Allowable Costs
C. Basic Guidelines
Factors affecting allowability of costs. To be allowable under
Federal awards, costs must meet the following general criteria:
a. Be necessary and reasonable for proper and efficient
performance and administration of Federal awards.
c. Be authorized or not prohibited under State or local laws or
regulations.
e. Be consistent with policies, regulations, and procedures that
apply uniformly to both Federal awards and other activities of the
governmental unit.
f. Be accorded consistent treatment.
j. Be adequately documented.
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FINANCIAL
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STANDARDS FOR FINANCIAL
MANAGEMENT SYSTEMS
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NONPROFITS and UNIVERSITIES
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CFR Part 215.21
STATE, LOCAL & INDIAN TRIBAL GOV’TS
 OMB
Circular A-102 and Common Rule §_.20
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KEY FINANCIAL STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.21
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(b) Recipients' financial management systems shall provide for the following.
(1) Accurate, current and complete disclosure of the financial results of
each federally-sponsored project or program in accordance with the reporting
requirements set forth in §215.52. If a Federal awarding agency requires
reporting on an accrual basis from a recipient that maintains its records on other
than an accrual basis, the recipient shall not be required to establish an
accrual accounting system. These recipients may develop such accrual data
for its reports on the basis of an analysis of the documentation on hand.
(2) Records that identify adequately the source and application of funds for
federally-sponsored activities. These records shall contain information pertaining
to Federal awards, authorizations, obligations, unobligated balances, assets,
outlays, income and interest.
(3) Effective control over and accountability for all funds, property and other
assets. Recipients shall adequately safeguard all such assets and assure they
are used solely for authorized purposes.
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KEY FINANCIAL STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.21
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(4) Comparison of outlays with budget amounts for each award.
Whenever appropriate, financial information should be related to
performance and unit cost data.
(5) Written procedures to minimize the time elapsing between the
transfer of funds to the recipient from the U.S. Treasury and the issuance
or redemption of checks, warrants or payments by other means for
program purposes by the recipient. ….
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs in accordance with the provisions
of the applicable Federal cost principles and the terms and conditions of
the award.
(7) Accounting records including cost accounting records that are
supported by source documentation.
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KEY FINANCIAL STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.20
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a) A State must expand and account for grant funds in accordance with State laws and
procedures for expending and accounting for its own funds. Fiscal control and accounting
procedures of the State, as well as its subgrantees and cost-type contractors, must:
(1) Permit preparation of reports required by this part and the statutes authorizing the grant,
(2) Permit the tracing of funds to a level of expenditures adequate to establish that such
funds have not been used in violation of the restrictions and prohibitions of applicable
statutes.
(b) The financial management systems of other grantees and subgrantees must meet the
following standards:
(1) Financial reporting. Accurate, current, and complete disclosure of the financial results
of financially assisted activities must be made in accordance with the financial reporting
requirements of the grant or subgrant.
(2) Accounting records. Grantees and subgrantees must maintain records which adequately
identify the source and application of funds provided for financially-assisted activities.
These records must contain information pertaining to grant or subgrant awards and
authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures,
and income.
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KEY FINANCIAL STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.20
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(3) Internal control. Effective control and accountability must be
maintained for all grant and subgrant cash, real and personal property,
and other assets. Grantees and subgrantees must adequately safeguard
all such property and must assure that it is used solely for authorized
purposes.
(4) Budget control. Actual expenditures or outlays must be
compared with budgeted amounts for each grant or subgrant.
Financial information must be related to performance or productivity data,
including the development of unit cost information whenever appropriate
or specifically required in the grant or subgrant agreement. If unit cost
data are required, estimates based on available documentation will be
accepted whenever possible.
(5) Allowable cost. Applicable OMB cost principles, agency program
regulations, and the terms of grant and subgrant agreements will be
followed in determining the reasonableness, allowability, and
allocability of costs.
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KEY FINANCIAL STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.20
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(6) Source documentation. Accounting records must be supported by
such source documentation as cancelled checks, paid bills, payrolls, time
and attendance records, contract and subgrant award documents, etc.
(7) Cash management. Procedures for minimizing the time elapsing
between the transfer of funds from the U.S. Treasury and
disbursement by grantees and subgrantees must be followed whenever
advance payment procedures are used. Grantees must establish
reasonable procedures to ensure the receipt of reports on subgrantees'
cash balances and cash disbursements in sufficient time to enable them
to prepare complete and accurate cash transactions reports to the
awarding agency. When advances are made by letter-of-credit or
electronic transfer of funds methods, the grantee must make drawdowns
as close as possible to the time of making disbursements. Grantees must
monitor cash drawdowns by their subgrantees to assure that they
conform substantially to the same standards of timing and amount as
apply to advances to the grantees.
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STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102
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2. Post-Award Policies. j. Conditional exemptions. (1).
OMB authorizes conditional exemption from OMB
administrative requirements and cost principles for certain
Federal programs. … A Federal agency shall consult with
OMB during its consideration of whether to grant such an
exemption. (2). To promote efficiency in State and local
program administration, …. where most of the State
agency's resources come from non-Federal sources, Federal
agencies may exempt these covered State-administered,
non-entitlement grant programs from certain OMB grants
management requirements. (3). When a Federal agency
provides this flexibility, as a prerequisite to a State's
exercising this option, a State must adopt its own written
fiscal and administrative requirements for expending
and accounting for all funds, which are consistent with the
provisions of 2 CFR part 225 (OMB Circular A-87), …
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Sample Elements of a Financial Manual
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Overview
Chart of Accounts
Bank Account Management
Audit
Fixed Assets
Payroll
Field Offices
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TRAVEL
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TRAVEL REGULATIONS
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2CFRPart220.53. Travel costs.
 b. Lodging and subsistence. Costs incurred by employees and officers for travel,
including costs of lodging, other subsistence, and incidental expenses, shall be
considered reasonable and allowable only to the extent such costs do not exceed
charges normally allowed by the institution in its regular operations as the result of the
institution's written travel policy.
2CFRPart225.43. Travel costs.
 b. Lodging and subsistence. Costs incurred by employees and officers for travel,
including costs of lodging, other subsistence, and incidental expenses, shall be
considered reasonable and allowable only to the extent such costs do not exceed
charges normally allowed by the governmental unit in its regular operations as the result
of the governmental unit's written travel policy.
 e. Foreign travel. Direct charges for foreign travel costs are allowable only when the
travel has received prior approval of the awarding agency.
2CFRPart230. 51. Travel costs.
 b. Lodging and subsistence. Costs incurred by employees and officers for travel,
including costs of lodging, other subsistence, and incidental expenses, shall be
considered reasonable and allowable only to the extent such costs do not exceed
charges normally allowed by the non-profit organization in its regular operations as the
result of the non-profit organization's written travel policy.
 e. Foreign travel. Direct charges for foreign travel costs are allowable only when the
travel has received prior approval of the awarding agency.
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Sample Sections of a Travel Manual
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General Policy
Travel Procedures
Travel Expense Policies
Travel Advances
Reporting Requirements
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TRAVEL
REPORT
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Name Traveller: Date:
Trip Dates:
Activity/Project Number:
Place/Site Visited:
I. Trip Purpose
II. Individuals Contacted
III. Observations/Findings
IV. Conclusions and
Recommendations
V. Proposed Follow-up Action(s)
VI. Other Comments
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PROPERTY MANAGEMENT
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DEFINITIONS
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Equipment means tangible nonexpendable
personal property including exempt property
charged directly to the award having a useful life of
more than one year and an acquisition cost of
$5,000 or more per unit. However, consistent with
recipient policy, lower limits may be established.
2 CFR Part 215.2(l) Definitions
Supplies means all personal property excluding
equipment, intangible property, and debt
instruments as defined in this section, …
2 CFR Part 215.2(hh) Definitions
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KEY PROPERTY STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.30 - .37
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Purpose of property standards. Set forth uniform standards governing management
and disposition of property furnished by the Federal Government whose cost was charged
to a Federal award. The recipient may use its own property management standards and
procedures provided it observes the provisions of §215.31 through §215.37.§_.30
Insurance coverage. Recipients shall, at a minimum, provide the equivalent insurance
coverage for real property and equipment acquired with Federal funds. §_.31
Real property. Each Federal awarding agency shall prescribe requirements for recipients
concerning the use and disposition of real property acquired in whole or in part under
awards. §_.32
Federally-owned and exempt property. Title to federally-owned property remains
vested in the Federal Government. Recipients shall submit annually an inventory listing of
federally-owned property in their custody to the Federal awarding agency §_.33(a)(1)
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KEY PROPERTY STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.30 - .37
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Equipment. Title to equipment acquired by a recipient with Federal funds
shall vest in the recipient, subject to conditions of this section. §_.34(a)
The recipient's property management standards for equipment acquired with
Federal funds and federally-owned equipment shall include all of the following
…..§_.34(f)
Equipment records shall be maintained accurately and shall include the
following information. …..§_.34(f)(1)
Recipients shall, at a minimum, provide the equivalent insurance coverage for
real property and equipment acquired with Federal funds. §_.34(f)(2)
A physical inventory of equipment shall be taken and the results reconciled
with the equipment records at least once every two years. §_.34(f)(3)
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KEY PROPERTY STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.30 - .37
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A control system shall be in effect to insure adequate safeguards to
prevent loss, damage, or theft of the equipment. §_.34(f)(4)
Adequate maintenance procedures shall be implemented to keep the
equipment in good condition. §_.34(f)(5)
Where the recipient is authorized or required to sell the equipment,
proper sales procedures shall be established which provide for
competition to the extent practicable and result in the highest possible
return. §_.34(f)(6)
Supplies and other expendable property. Title to supplies and other
expendable property shall vest in the recipient upon acquisition. §_.35(a)
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KEY PROPERTY STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.32
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Equipment. Title. Subject to the obligations and conditions set forth in this
section, title to equipment acquired under a grant or subgrant will vest upon
acquisition in the grantee or subgrantee respectively. §_.32(a)
States. A State will use, manage, and dispose of equipment acquired under a
grant by the State in accordance with State laws and procedures. §_.32(b)
d) Management requirements. Procedures for managing equipment, whether
acquired in whole or in part with grant funds, until disposition takes place will, as
a minimum, meet the following requirements: §_.32(d)
Property records must be maintained that: include a description of the
property, a serial number or other identification number, the source of property,
who holds title, the acquisition date, and cost of the property, percentage of
Federal participation in the cost of the property, the location, use and condition
of the property, and any ultimate disposition data including the date of disposal
and sale price of the property. §_.32(d)(1)
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KEY PROPERTY STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.32
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A physical inventory of the property must be taken and the
results reconciled with the property records at least once
every two years. §_.32(d)(2)
A control system must be developed to ensure adequate
safeguards to prevent loss, damage, or theft of the property.
Any loss, damage, or theft shall be investigated. _.32(d)(3)
Adequate maintenance procedures must be developed to
keep the property in good condition. §_.32(d)(4)
If the grantee or subgrantee is authorized or required to sell
the property, proper sales procedures must be established
to ensure the highest possible return. §_.32(d)(5)
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KEY PROPERTY STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.32
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Federal equipment. In the event a grantee or subgrantee
is provided federally-owned equipment: Title will remain
vested in the Federal Government. §_.32(f)(1)
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Title will remain vested in the Federal Government.
§_.32(f)(1)
Supplies. Title. Title to supplies acquired under a grant or
subgrant will vest, upon acquisition, in the grantee or
subgrantee respectively. §_.33(a)
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Sample Elements of a
Property Management Manual
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INTRODUCTION
DEFINITIONS OF PROPERTY
PROPERTY MANAGEMENT and RECORDKEEPING
PROPERTY PURCHASED WITH DONOR
FUNDS
OTHER POLICIES and PROCEDURES
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PERSONNEL
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PERSONNEL
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2 CFR Part 230 – COST PRINCIPLES FOR
NONPROFITS
2 CFR Part 225 - COST PRINCIPLES FOR
STATE, LOCAL & TRIBAL GOV’TS
2 CFR Part 220 - COST PRINCIPLES FOR
UNIVERSITIES
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PERSONNEL – COST PRINCIPLES
NONPROFITS 2 CFR Part 230
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Compensation for personal services. Allowability. Except as otherwise specifically
provided in this paragraph, the costs of such compensation are allowable to the extent
that: (1) Total compensation to individual employees is reasonable for the services
rendered and conforms to the established policy of the organization consistently applied to
both Federal and non-Federal activities (2CFR Part 230. 8.b.(2))
Compensation for personal services. Fringe benefits. Fringe benefits in the form of
employer contributions or expenses for social security, employee insurance, workmen's
compensation insurance, pension plan costs (see subparagraph 8.h of this appendix), and
the like, are allowable, provided such benefits are granted in accordance with established
written organizational policies. (2CFR Part 230. 8.g.(2))
Pension plan costs. Costs of the organization's pension plan which are incurred in
accordance with the established policies of the organization are allowable, provided: (a)
Such policies meet the test of reasonableness; (b) The methods of cost allocation are
not discriminatory; (2CFR Part 230. 8.i.(1))
Severance pay. Severance pay, also commonly referred to as dismissal wages, is a
payment in addition to regular salaries and wages, by organizations to workers whose
employment is being terminated. Costs of severance pay are allowable only to the extent
that in each case, it is required by:(a) Law (b) Employer-employee agreement (c)
Established policy that constitutes, in effect, an implied agreement on the organization's
part, or (d) Circumstances of the particular employment. (2CFR Part 230. 8.k.(1))
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PERSONNEL – 2 CFR Part 230
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Employee morale, health, and welfare costs. The costs of employee …
services, and any other expenses incurred in accordance with the non-profit
organization's established practice or custom for the improvement of working
conditions, employer-employee relations, employee morale, and employee
performance are allowable. (2CFR Part 230. 13.a.)
Housing and personal living expenses. These costs are allowable as direct
costs to sponsored award when necessary for the performance of the sponsored
award and approved by awarding agencies. (2CFR Part 230. 20.a.)
Labor relations costs. Costs incurred in maintaining satisfactory relations
between the organization and its employees are allowable. (2CFR Part 230. 24)
Relocation costs. Relocation costs are allowable, subject to the limitation
described in subparagraphs 42.b, c, and d of this appendix, provided that: (1)
The move is for the benefit of the employer. (2) Reimbursement to the employee
is in accordance with an established written policy consistently followed by the
employer. (2CFR Part 230. 42.a.(1),(2))
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PERSONNEL – 2 CFR Part 225
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Basic Guidelines. Factors affecting allowability of costs. Be consistent with policies,
regulations, and procedures that apply uniformly to both Federal awards and other activities
of the governmental unit. (2CFR Part 225. C.1.e.)
Compensation for Personal Services. Is reasonable for the services rendered and
conforms to the established policy of the governmental unit consistently applied to both
Federal and non-Federal activities; (2CFR Part 225. 8.a.(1))
Fringe Benefits. The cost of fringe benefits in the form of regular compensation paid to
employees during periods of authorized absences from the job, such as for annual leave,
sick leave, holidays, court leave, military leave, and other similar benefits, are allowable if:
They are provided under established written leave policies; (2CFR Part 225. 8.d.(2))
Pension plan costs. Pension plan costs may be computed using a pay-as-you-go method or
an acceptable actuarial cost method in accordance with established written policies of the
governmental unit. (2CFR Part 225. 8.e.)
Post-retirement health benefits. PRHB costs may be computed using a pay-as-you-go
method or an acceptable actuarial cost method in accordance with established written
polices of the governmental unit. (2CFR Part 225. 8.f.)
Severance pay. Payments in addition to regular salaries and wages made to workers whose
employment is being terminated are allowable to the extent that, in each case, they are
required by law, employer-employee agreement, or established written policy. (2CFR Part
225. 8.g.(1))
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PERSONNEL – 2 CFR Part 225
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Basic Guidelines. Factors affecting allowability of costs. Be consistent with policies,
regulations, and procedures that apply uniformly to both Federal awards and other activities
of the governmental unit. (2CFR Part 225. C.1.e.)
Compensation for Personal Services. Is reasonable for the services rendered and
conforms to the established policy of the governmental unit consistently applied to both
Federal and non-Federal activities; (2CFR Part 225. 8.a.(1))
Fringe Benefits. The cost of fringe benefits in the form of regular compensation paid to
employees during periods of authorized absences from the job, such as for annual leave,
sick leave, holidays, court leave, military leave, and other similar benefits, are allowable if:
They are provided under established written leave policies; (2CFR Part 225. 8.d.(2))
Pension plan costs. Pension plan costs may be computed using a pay-as-you-go method or
an acceptable actuarial cost method in accordance with established written policies of the
governmental unit. (2CFR Part 225. 8.e.)
Post-retirement health benefits. PRHB costs may be computed using a pay-as-you-go
method or an acceptable actuarial cost method in accordance with established written
polices of the governmental unit. (2CFR Part 225. 8.f.)
Severance pay. Payments in addition to regular salaries and wages made to workers whose
employment is being terminated are allowable to the extent that, in each case, they are
required by law, employer-employee agreement, or established written policy. (2CFR Part
225. 8.g.(1))
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PERSONNEL – 2 CFR Part 220
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Basic Considerations. Reasonable costs. A cost may be considered reasonable if … the extent to which
the actions taken with respect to the incurrence of the cost are consistent with established institutional policies
and practices applicable to the work of the institution generally, including sponsored agreements. (2CFR Part
220. C.3.)
Compensation for personal services. Are allowable to the extent that the total compensation to individual
employees conforms to the established policies of the institution, consistently applied .. (2CFR220.
10.a.)
Noninstitutional professional activities. Unless an arrangement is specifically authorized by a Federal
sponsoring agency, an institution must follow its institution-wide policies and practices concerning the
permissible extent of professional services that can be provided outside the institution for noninstitutional
compensation. (2CFR Part 220. 10.e.)
Fringe benefits. Fringe benefits in the form of employer contributions or expenses for social security,
employee insurance, workmen's compensation insurance, tuition or remission of tuition for individual
employees are allowable, provided such benefits are granted in accordance with established educational
institutional policies … (2CFR Part 220. 10.f.(2))
Rules for pension plan costs are as follows: Costs of the institution's pension plan which are incurred in
accordance with the established policies of the institution are allowable, provided such policies meet the
test of reasonableness … (2CFR Part 220. 10.f.(3)(a))
Rules for sabbatical leave are as follows: Costs of leave of absence by employees for performance of
graduate work or sabbatical study, travel, or research are allowable provided the institution has a uniform
policy … (2CFR Part 220. 10.f.(4)(a))
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PERSONNEL – 2 CFR Part 220
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Severance pay. Severance pay is compensation in addition to regular salary and wages which
is paid by an institution to employees whose services are being terminated. Costs of severance
pay are allowable only to the extent that such payments are required by law, by employeremployee agreement, by established policy that constitutes in effect an implied agreement on
the institution's part, or by circumstances of the particular employment. … (2CFR Part 220.
10.h.(1))
Employee morale, health, and welfare costs and costs. The costs of employee
expenses incurred in accordance with the institution's established practice or custom
for the improvement of working conditions, employer-employee relations, employee
morale, and employee performance are allowable. (2CFR220. 16.)
Labor relations costs. Costs incurred in maintaining satisfactory relations between the
institution and its employees are allowable.(2CFR Part 220. 27.)
Recruiting costs. Subject to subsections J.42.b, c, and d of this Appendix … costs are
allowable to the extent that such costs are incurred pursuant to a well-managed recruitment
program. … (2CFR Part 220. 42.a.)
Recruiting costs. Costs … incurred to attract professional personnel from other institutions
that do not meet the test of reasonableness or do not conform with the established practices of
the institution, are unallowable. (2CFR Part 220. 42.c.)
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Sample Sections of a Personnel Manual
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ABOUT (YOUR ORGANIZATION’S NAME)
INTRODUCTION
GENERAL EMPLOYMENT INFORMATION
COMPENSATION
BENEFITS
EMPLOYEE RESPONSIBILITIES
STANDARDS of CONDUCT
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PROCUREMENT
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PROCUREMENT STANDARDS

NONPROFITS and UNIVERSITIES
2
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CFR Part 215.40 - .48
STATE, LOCAL & INDIAN TRIBAL GOV’TS
 OMB
Circular A-102 and Common Rule §_.36
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KEY PROCUREMENT STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.40 - .48
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Standards are furnished to ensure materials and services are obtained in an
effective manner and in compliance with the provisions of applicable Federal
statutes and executive orders. No additional procurement standards or
requirements shall be imposed by the Federal awarding agencies upon
recipients, unless specifically required by Federal statute or executive order or
approved by OMB. §_.40
The standards contained in this section do not relieve the recipient of the
contractual responsibilities arising under its contract(s). §_.41
The recipient shall maintain written standards of conduct governing the
performance of its employees engaged in the award and administration of
contracts. §_.42
All procurement transactions shall be conducted in a manner to provide, to the
maximum extent practical, open and free competition. §_.43
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KEY PROCUREMENT STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.40 - .48
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All recipients shall establish written procurement procedures. §_.44(a)
Where appropriate, an analysis is made of lease and purchase alternatives
to determine which would be the most economical and practical procurement for
the Federal Government. §_.44(a)(2)
Positive efforts shall be made by recipients to utilize small businesses,
minority-owned firms, and women's business enterprises, whenever possible.
§_.44(b)
The type of procuring instruments used ( e.g., fixed price contracts, cost
reimbursable contracts, purchase orders, and incentive contracts) shall be
determined by the recipient. The “cost-plus-a-percentage-of-cost” or
“percentage
… of construction cost” methods of contracting shall not be used. . §_.44(c)
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KEY PROCUREMENT STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.40 - .48
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Contracts shall be made only with responsible contractors who possess the
potential ability to perform successfully under the terms and conditions of the
proposed procurement. §_.44(d)
Recipients shall, on request, make available for the Federal awarding agency,
pre-award review and procurement documents. §_.44(e)
Some form of cost or price analysis shall be made and documented in the
procurement files in connection with every procurement action. §_.45
Procurement records and files for purchases in excess of the small purchase
threshold shall include the following at a minimum: (a) Basis for contractor
selection; (b) Justification for lack of competition when competitive bids or offers
are not obtained; and (c) Basis for award cost or price. §_.46
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KEY PROCUREMENT STANDARDS
NONPROFITS and UNIVERSITIES
2 CFR Part 215.40 - .48
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A system for contract administration shall be maintained. … to
ensure contractor conformance with the terms, conditions and
specifications of the contract and to ensure adequate and timely follow
up of all purchases. Recipients shall evaluate contractor performance
and document it. §_.47
The recipient shall include certain provisions in all contracts. §_.48
All contracts, including small purchases, awarded by recipients and
their contractors shall contain the procurement provisions of
appendix A to this part, as applicable. §_.48 (e)
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KEY PROCUREMENT STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.36
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States. When procuring property and services under a grant, a State will follow the same
policies and procedures it uses for procurements from its non-Federal funds. The State will
ensure that every purchase order or other contract includes any clauses required by
Federal statutes and executive orders and their implementing regulations. § 135.36(a)
Procurement standards. Grantees and subgrantees will use their own procurement
procedures which reflect applicable State and local laws and regulations, provided that the
procurements conform to applicable Federal law and the standards identified in this
section. §_.36(b)(1)
Grantees and subgrantees will maintain a written code of standards of conduct
governing the performance of their employees engaged in the award and administration of
contracts. The recipient shall include certain provisions in all contracts. §_.36(b)(3)
Grantee and subgrantee procedures will provide for a review of proposed procurements to
avoid purchase of unnecessary or duplicative items. §_.36(b)(4)
Grantees and subgrantees will maintain records sufficient to detail the significant
history of a procurement. §_.36(b)(9)
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KEY PROCUREMENT STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.36
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Grantees and subgrantees will have protest procedures to handle and resolve
disputes relating to their procurements and shall in all instances disclose
information regarding the protest to the awarding agency. §_.36(b)(12)
Competition. All procurement transactions will be conducted in a manner
providing full and open competition consistent with the standards of §_.36.
§_.36(c)(1)
Grantees will have written selection procedures for procurement transactions.
§_.36(c)(3)
Methods of procurement to be followed—
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Procurement by small purchase procedures. §_.36(d)(1)
Procurement by sealed bids. §_.36(d)(2)
Procurement by competitive proposals. §_.36(d)(3)
Procurement by noncompetitive proposals. §_.36(d)(4)
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KEY PROCUREMENT STANDARDS
STATE, LOCAL & INDIAN TRIBAL GOV’TS
OMB Circular A-102 and Common Rule §_.36
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Contracting with small and minority firms, women's business enterprise and labor
surplus area firms. The grantee and subgrantee will take all necessary affirmative steps
to assure that minority firms, women's business enterprises, and labor surplus area firms
are used when possible.§_.36(e)(1)
Contract cost and price. Grantees and subgrantees must perform a cost or price
analysis in connection with every procurement action including contract modifications.
§_.36(f)(1)
Awarding agency review. Grantees and subgrantees must make available, upon request
of the awarding agency, technical specifications on proposed procurements where the
awarding agency believes such review is needed to ensure that the item and/or service
specified is the one being proposed for purchase. §_.36(g)(1)
Bonding requirements. For construction or facility improvement contracts or subcontracts
… §_.36(h)
Contract provisions. A grantee's and subgrantee's contracts must contain provisions in
paragraph (i) of this section. .§_.36(i)
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Sample Sections of a
Procurement Manual
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INTRODUCTION
GENERAL PROCUREMENT POLICIES
PROCUREMENT POLICIES
FILES AND RECORDS
PROCUREMENT CYCLE and PROCEDURES
PROCUREMENT INSTRUMENTS
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SOME THOUGHTS TO KEEP
IN MIND
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Issue Manuals, Don’t Keep Them in Draft
Remember, Manuals Can Always Be Updated
Each Manual Should Be Issued Separately
Keep Them Simple, So They’ll Be Read
Train Staff on Your Manuals/Operations
Be Sure to Follow Your Policies
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Thank You and Questions?
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