P.L Grants: Certifications, Funds Management & 2-Year Expenditure Deadline. U.S. Department of Housing and Urban Development
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1 P.L Grants: Certifications, Funds Management & 2-Year Expenditure Deadline U.S. Department of Housing and Urban Development
2 I. Certification of Proficient Controls, Processes & Procedures II. III. IV. Overview of Financial Management & Reporting Requirements PL Funding Process & Expenditure Deadline Process for Requesting Deadline Extensions V. Updating Projections VI. Q & A
3 I. Certifications
4 Public Law The Disaster Relief Appropriations Act, 2013 The Appropriations Act required the Secretary to certify, in advance of signing a grant agreement, that the grantee had met certain requirements.
5 March 5, 2013 Federal Register Notice Certification of Proficient Controls, Processes and Procedures: Section III. Timely Expenditure of Funds and Prevention of Waste Fraud, Abuse and Duplication of Benefits (Page 14330) Section VI. Paragraph A.1.i (Page 14436)
6 Certifications Proficient financial controls and procurement processes Prevent duplication of benefits Ensure timely expenditure of funds Maintain a comprehensive website Procedures to detect and prevent waste, fraud, and abuse of funds
7 Certification Checklist
8 Nov. 18, 2013 Federal Register Notice *Action Plan Amendment* Grantees are required to provide updates to HUD on changes to its processes or procedures that would impact its certifications (Page 69109). Monitoring Subject to ongoing monitoring by HUD and the Office of Inspector General.
9 Resources HUD Representative CDBG-DR Regulations, Law and Requirements
10 II. Overview of Financial Management & Reporting Requirements
11 Overview of P.L Grants Financial Management Additional Reporting Requirements (FFATA/FSRS) Appropriation Specific Deadlines/Timelines Partial Obligations Achieving 2 yr Expenditures timelines through: Drawdowns Budget Adjustments Extensions
12 FFATA / FSRS Reporting Federal Funding Accountability and Transparency Act (PL ) Applies to federally funded grants/contracts awarded on or after Oct. 1, 2010 for $25,000 or more Two-tier Reporting (reported through USASpending.gov) Prime Award Data reported by Federal Agency (HUD) Sub-Award Data - reported by Grantee Applies to sub-grants/contracts $25,000 Reporting due by the end of the month following the month in which sub-award or contract was executed (additional information)
13 III. P.L Funding Process & Expenditure Deadline
14 P.L Funding Challenges LOTS OF MONEY - Appropriation Amount: approx. $15.2 billion LIMITED TIME - Obligation Deadline: Sept. 30, 2017 Expenditure Deadline: 2 yr from date of HUD obligation What to do What to do???? Partial Obligations!
15 Partial Obligation Process Documents Developed Grantee coordinates with HUD CPD Rep HUD-7082 Grant Agreement/Grant Conditions Grant Agreement Executed Signed by Grantee and HUD HUD signature = Obligation Date (beginning of 2 yr Exp. Period) HUD 7082 Processed by HUD Accounting Grantee Line of Credit/LOCCS Authorized Amt in DRGR DRSI Staff reduces Restricted Balance in DRGR
16 Establishing CDBG Funding Rounds in DRGR Grantee establishes Projects/Activities in DRGR Projects must be a reflection of budget table within grant agreement (Amount & Category) Project/Activity Names or Numbers must indicate Round (R#) HUD/DRSI Staff will assign Project/Activity Block Dates (2 yr after obligation date)
17 Managing 2 yr Expenditure Deadline Draw the Funds within 2 yr deadline Adjust the Funds Budget Revision NOTE: Budget Revisions may trigger Substantial Amendment if certain criteria are met. Extend the Funds Request HUD to extend the Exp. deadline/drgr Block Date
18 Adjusting the Funds - Budget Revisions by type/level
19 Adjusting the Funds - Budget Revisions by type/level Activity Level (not impacting Project Budget) - Does not require any formal action - Changes will be noted/reviewed by CPD Rep during quarterly Action Plan/QPR review process Project Level (Grant Agreement Budget Revision) - Changes will impact Project Level funding - Changes stay within amounts allocated to programs/projects in approved Action Plan - Requires issuance of revised Grant Conditions Grant Level (Substantial Amendment) - Changes do not stay within approved Action Plan allocation amounts
20 Project Level Budget Revisions If certain activities progress more quickly than others, funds can be reallocated Among Projects within the same round Across rounds of funding Provided: Total amount of Grant Agreement/Round does not change, and Proposed changes are in line with approved hard copy Action Plan.
21 Reallocating Funds Among Rounds Approved Published Plans / DRGR Action Plans Amendment to Reallocate Among Rounds Infrastructure is moving faster than Econ Dev.
22 Reallocating Funds Among Rounds Approved Published Plans / DRGR Action Plans Amendment to Reallocate Among Rounds Econ Dev is not progressing quickly enough
23 Reallocating Funds Among Rounds Approved Published Plans / DRGR Action Plans Amendment to Reallocate Among Rounds Grantee wants to add MF Housing
24 Project Level Budget Revisions Project Level Budget Revisions = Changes to Grant Agreement Must be Approved by HUD Must be documented with new Grant Conditions
25 Project Level Budget Revision Process Informal Process: Grantee coordinates with CPD Rep Via /letter Defines scope of budget revisions HUD CPD Rep reviews Request Determines changes are acceptable HUD CPD Documents Budget Revision Send approval letter and revised grant conditions (new budget table)
26 IV. Process for Requesting Deadline Extensions
27 Extension Requests The grantee has demonstrated that it has evaluated all reasonable alternatives prior to determining that an extension is the only remaining viable alternative. (80 FR 26942)
28 Extension Requests OMB authorized HUD to provide expenditure deadline extensions HUD has authority up to approx. $7 billion (50% of Appropriations) FR Notice published on May 11, 2015 outlines process for these requests Must be submitted at least 120 days before deadline (60 for funds expiring in 2015)
29 Extension Requests Activities that are inherently long-term Limited to certain types of eligible activity categories: Public facilities & improvements Housing Economic revitalization Grant administration Different requirements process for RBD & NDRC
30 Extension Requests Extension request must be program/projectspecific Expenditure Deadline Extension Request Template Criteria for approval HUD approves through letter; FR Notice later published for public record
31 V. Updating Projections
32 Updating Projections Projections of expenditures and outcomes Based on each quarter s expected performance Beginning first quarter that funds available and until all funds expended Action Plans must be amended to reflect subsequent changes, updates, revisions of projections Non-substantial amendment Template and guidance are posted on HUD Exchange
33 Updating Projections (Expenditures) Expenditure projections for three major activity categories Housing Non-Housing Planning & Administration Total Expenditures table rolls these up to arrive at the projection for the entire grant
34 Updating Projections (Accomplishments) Accomplishment projections for each of the grantee s activity types (as selected using DRGR).
35 Contact Information: Questions? Ebony Madyun & Phyllis Foulds & Bennett Hilley.Bennett. R. &
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