Implementing OMB Guidance

Transcription

1 Implementing Guidance Developed by Nonprofit Association of Oregon & Washington Nonprofits (503) (855) NAO and WN are the nonprofit state associations for Oregon and Washington. They are members of the National Council of Nonprofits. 1

2 Since 2015, nonprofits have faced new rules from the federal Office of Management and Budget. The Updated Guidance applies to Federal awards to states, local governments, Indian tribes, institutions of higher education and non-profit organizations. Types of funding covered by these new rules include direct Federal grants and cooperative agreements, passthrough grants to sub-recipients, and procurement contracts under grants. If your organization receives Federal funding, even if it is received indirectly through the State or another organization, this guidance likely applies to you. The main categories of information that nonprofits need to know are: Federal cost principles (direct vs indirect) Time and effort repor<ng Internal controls Single audit requirement Procurement Financial management system In addition, entities contracting with nonprofits need to know a few things related to monitoring and risk assessment of their subrecipients. Even if your organization does not receive federal funds in any form, some elements of the guidance will help you strengthen your organization. Every organization should have a conflict of interest policy, follow appropriate internal controls, and know their costs. 2

3 WAYS TO APPROACH LEARNING There is a lot of information available to nonprofits online. Larger nonprofits can access CPA firms for back up support; smaller nonprofits often turn to their contractor or their local state association for help. Here is one way to go about self-directed learning. KNOW YOUR SITUATION 1. Look at your funding sources and know where the money is coming from. You may be receiving funding from a city that originally comes from the federal government, for example. UNDERSTANDING THE BIG PICTURE 2. Read an article that reviews why the requirements changed and what is involved. We suggest these two: q Top 10 Changes by Deby MacLeod of Clark Nuber: changes/ q CAPLAW s Overview: /CAPLAW_NavigatingtheSuperCircularChanges_SpecialEdition2014.pdf 3. Print out the Overview Worksheet (Appendix A). Use this as your guide as you learn about each topic. Based on your knowledge know, star the topics you are most concerned about. 4. Watch one overview video to understand all of the elements of the requirements. We suggest one of these: q (57 minutes) q (90 minutes) q (44 minutes) HONE IN ON SPECIFIC TOPICS 5. Decide what you want to start focus on first. Watch a short video about that topics, using the resources found on page Return the worksheet. Document what you are doing now and what you need to be doing based on what you learned. GET HELP 7. You may come across topics that need some extra help. Your nonprofit state association may be able to help. See the cover of this packet for their contact information. 3

4 ARTICLES ABOUT Partner organizations Title Source Link Uniform Guidance Implementation Top 10 Changes Deby MacLeod, Clark Nuber Navigating the Uniform Guidance for Federal Awards Navigating the Super Circular Changes Nonprofits and the new Uniform Guidance: Know Your Rights Moss Adams Community Action Programs LAW National Council of Nonprofits Government agencies Title Source Link Uniform Admin Requirements, Cost Principles, and Audit Requirements Grants.gov Guide for Indirect Cost Rate Determination US Department of Labor ments/updatenewsletter/2014/caplaw_navigatingt hesupercircularchanges_specialedition2014.pdf grants/grant-policies/omb-uniform-guidance html Policy statements Uniform Guidance Crosswalk from Final to Existing Guidance /fedreg/2013/uniform-guidance-crosswalk-topredominate-source-existing-guidance.pdf Cost principles comparison chart Audit requirements comparison chart Definitions comparison chart Administrative requirements chart /financial/grant_reform/cost-principles-textcomparison.pdf /financial/grant_reform/audit-requirements-textcomparison.pdf /financial/grant_reform/definitions-textcomparison.pdf /financial/grant_reform/administrative- 4

5 requirements-text-comparison.pdf Other resources COFAR Frequently Asked Questions COFAR content/uploads/2015/09/ frequently-asked- Questions.pdf ARTICLES ABOUT OVERHEAD AND COST ANALYSIS Together Investing for Impact: Indirect costs are essential for success A Board Member s Guide to Nonprofit Overhead A Funder s Message to Other Funders About Overhead Changing the Conversation about Overhead National Council of Nonprofits Blue Avocado Blue Avocado Nonprofit Council of Nonprofits Title Source Link Raising the issue with funders CalNonprofits olkit/raising-the-issue True Program Costs: Program Budget and Allocation Tempate Nonprofit Assistance Fund /true-program-costs-program-budget-allocationtemplate-resource and Resource Overhead cost definitions NAF /overhead-cost-definitions Program-based Budget Builder The Wallace Foundation center/resources-for-financial- Management/Pages/Program-Based-Budget- Template.aspx Full cost analysis Bridgespan fit-management-tools-and-trends/full-cost-analysis Nonprofit cost analysis toolkit Bridgespan Reporting Nonprofit Operating Expenses NOLO Tackling Overhead SSIR ether _final/16 5

6 VIDEOS ABOUT FROM NATIONAL SOURCES Title Source Link Uniform Guidance Fundamentals Overview What s new Procurement Pass-through Cost principles Audit requirements Victoria Collins (EOP/), Hosted by LA, with ecivis videos.html?submissionguid=78f451af-2afc- 4fea-9a15-fb244919d148 Training webcast for Uniform Guidance Admin requirements Cost principles Audit requirements Uniform Guidance: Promising Practices in Implementation Risk assessment Contract vs subaward Sub-recipient monitoring Personnel services Indirect cost rate Single audit Hitchhiker s Guide to the Uniform Guidance YouTube channel of videos US Chief Financial Officers Association US Chief Financial Officers Association Jennifer Shambrook, U Central Florida National Council of University Research Administrat ors training-webcast-for-uniform-guidance/ uniform-guidance-promising-practices-inimplementation/ -w4 search?query=omb 6

7 VIDEOS ABOUT FROM LOCAL STATE ASSOCIATIONS Nonprofit Association of Oregon Presentations feature Kay Sohl, Kay Sohl Consulting Title Date Link Super Circular Gets Clearer & Closer: Clarifies New Requirements for Managing Federal Funds Will the 10% de Minimus Indirect Cost Rate Work for Your Nonprofit? Calculating Your Rate Using the Modified Total Direct Cost Method Applying for a Federal Indirect Cost Rate Procurement: Understanding Federal Requirements for Purchasing Goods and Services Staff Time and Effort What Difference Does the Super Circular Make? Uniform Guidance New Opportunities to Cover Your Full Costs Recording: PowerPoint: Handout: Recording: PowerPoint: Handout: Recording: PowerPoint: Handout: Recording: PowerPoint: Handout: Recording: PowerPoint: Handout: Recording: PowerPoint: Handout: Washington Nonprofits Presentation features Deby MacLeod, Clark Nuber & Lillian McDonell, Watson McDonell Title Date Link Managing Federal Funds: What Nonprofits Need to Know About the Updated Guidance

8 APPENDIX A: OVERVIEW PLANNING WORKSHEET Topic Current status What we need in place Action (who/by when) Federal cost principles Indirect costs Internal controls Procurement Financial management system Single audit Time and effort reporting Subrecipient monitoring & risk assessment (contractor)