Uniform Grants Guidance. Colorado Charter School Institute Cassie Walgren, Controller

Transcription

1 Uniform Grants Guidance Colorado Charter School Institute Cassie Walgren, Controller 1

2 Agenda 1. Introduction 2. EDGAR and C.F.R. 3. Financial Management Rules 4. Cost Principles 5. Procurement 6. Time and Effort 7. Required Registrations 8. Additional Resources 9. Q & A 2

3 Introduction Purpose of today: Provide information so that you can incorporate updated uniform grants guidance into your school s financial policies and procedures. Federal grant requirements Does not apply to state and local funding sources All federal grant spending is first subject to specific grant requirements and budget approval Non-Federal entity = school 3

4 Education Department General Administrative Regulations (EDGAR) EDGAR - A resource for regulations that are used by Education Department (ED) for the governance of federal grants and contracts 4

5 Code of Federal Regulations (C.F.R.) C.F.R. - The codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government produced by the Office of the Federal Register (OFR) and the Government Publishing Office. Contained within EDGAR Title 2 and Title 34 pertain to the governance of grants issued by ED Effective Date for New Regulations: July 1,

6 Financial Management Rules 1. Performance Metrics (NEW) 2. Accounting Records (Source Documents) 3. Collection, Transmission and Storage of Information 4. Internal Controls 5. Required Certification 6. Budget Controls 7. Written Cash Management Procedures (NEW) 8. Written Allowability Procedures (NEW) C.F.R (b) 6

7 Financial Management: Performance Metrics NEW: Non-Federal entity must submit performance reports at intervals required by Federal agency or pass-through. Annual performance reports are due 90 days after reporting period; quarterly performance reports are due 30 days after reporting period. NEW: Performance Metrics a. Compare actual accomplishments to objective b. Reasons goals were not met c. Additional pertinent information C.F.R

8 Financial Management: Accounting Records Source documentation must be kept on: a. Federal awards b. Authorizations c. Obligations d. Unobligated balances e. Assets f. Expenditures g. Income C.F.R (b)(3) 8

9 Financial Management: Collection, Transmission and Storage of Information NEW: When original records are electronic records that cannot be altered no need to create and retain paper copies When original records are paper, electronic may be substituted (photocopy, scan or other electronic media) provided they: a. Are subject to periodic quality control reviews; b. Provide reasonable safeguards against alteration; and c. Remain readable Keep records for current year plus prior 6 years. C.F.R

10 Financial Management: Internal Controls Non-Federal entities must establish and maintain effective internal controls that: a. Comply with Federal statutes, regulations and terms and conditions of the Federal awards b. Evaluate and monitor compliance c. Take prompt actions when instances of noncompliance are identified d. Take reasonable measures to safeguard protected personally identifiable information C.F.R

11 Financial Management: Internal Controls (cont d) Internal controls: a process, implemented by a non-federal entity, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: a. Effectiveness and efficiency of operations; b. Reliability of reporting for internal and external use; and c. Compliance with applicable laws and regulations. Effective control over and accountability for a. All funds b. Property c. Other assets Must adequately safeguard all assets ( small and attractive ) Use assets solely for authorized purpose C.F.R and

12 Financial Management: Internal Controls (cont d) Examples of Common Internal Control Activities: 1. Physical control over vulnerable assets 2. Segregation of duties 3. Proper execution of transactions and events 4. Accurate and timely recording of transactions and events 5. Access restrictions to and accountability for resources and records 6. Appropriate documentation of transactions and internal control 12

13 Financial Management Rules: Internal Controls (cont d) NEW: Internal controls should be in compliance with US Comptroller General s Standard for Internal controls in the Federal Government 5 Standards for Internal Control: 1. Control Environment 2. Risk Assessment 3. Control Activities 4. Information and Communications 5. Monitoring Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) OR C.F.R

14 Financial Management: Required Certification NEW: An official authorized to legally bind the non-federal entity must certify on annual final fiscal reports or vouchers requesting payment (RFFs): By signing this report, 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. C.F.R

15 Financial Management: Budget Controls The financial management system of each non-federal entity must provide comparison of expenditures with budget amounts for each Federal award. C.F.R (b)(5) 15

16 Financial Management: Written Cash Management Procedures NEW: Written procedures outlining the schools process for requesting and receiving Federal fund reimbursements are required. C.F.R (6) 16

17 Financial Management: Written Allowability Procedures NEW: Written procedures for determining allowability of costs in accordance with Subpart E Cost Principles a. Procedures cannot simply restate the Uniform Guidance Subpart E b. Should explain the process used throughout the grant development and budget process c. Used as a training tool and guide for employees C.F.R (b)(7) 17

18 Cost Principles To be allowable, all Costs must be: 1. Necessary, Reasonable and Allocable 2. Conform with Federal law and grant terms 3. Consistent with state and local policies 4. Consistently treated 5. In accordance with GAAP 6. Not included as match 7. Net of applicable credits 8. Adequately documented 18

19 Cost Principals: Reasonable What does reasonable mean? a. Do I really need this? b. Is the expense targeted to valid programmatic/ administrative need? c. Is this the minimum I need to spend to meet my need? d. Do I have capacity to use what I am purchasing? e. Did I pay a fair rate? f. If I were asked to defend this purchase, would I be able to? g. Is it generally recognized as ordinary and necessary for the operation of the non-federal entity or the proper and efficient performance of the Federal award? C.F.R

20 Cost Principals: Allocable What does allocable mean? A cost is allocable to a Federal award or cost objective if the goods or services involved are chargeable or assignable in accordance with relative benefits received. Can only charge in proportion to the value received by the program C.F.R Cost Objective - A program, function, activity for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, etc. C.F.R

21 Cost Principals: Applicable Credits What are applicable credits? Those receipts or reduction-of-expenditure type transaction that offset or reduce expense items must be credited to the Federal award as either cost reduction or cash refund, as appropriate. Examples include purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, adjustments of overpayments. C.F.R

22 Cost Principals: Collection of Unallowable Costs NEW: Payments made for costs determined to be unallowable by either the Federal awarding agency or pass-through must be refunded (including interest) to the Federal government in accordance with instructions from the Federal agency that determined the costs are unallowable. C.F.R

23 Procurement All non-federal entities must have documented procurement procedures which reflect applicable Federal, State and local laws and regulations. 1. Contract Administration 2. Conflict of Interest 3. Competition 4. Procurement Methods 5. Travel and Entertainment 6. Supplies 7. Equipment 8. Suspension and Debarment C.F.R (a) 23

24 Procurement: Contract Administration Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions and specifications of the contract. Recommend that schools document services performed Sample of Proof of Delivery form on CSI Website: (Checklists and Templates ->Proof of Delivery Contracted Services) C.F.R (b) 24

25 Procurement: Conflict of Interest NEW: Must maintain written standard of conduct, including conflict of interest policy. NEW: If the non-federal entity has a parent, affiliate, or subsidiary organization that is not a state or local government the entity must also maintain written standards of conduct covering organization conflicts of interest (c)(2) NEW: All non-federal entities must establish conflict of interest policies, and disclose in writing any potential conflict to Federal awarding agency or pass-through entity in accordance with applicable Federal awarding agency policy. C.F.R and (c)(1) 25

26 Procurement: Conflict of Interest (cont d) A conflict of interest arises when any of the following has a financial or other interest in the firm selected for award: a. Employee, officer or agent b. Any member of that person s immediate family c. That person s partner d. An organization which employs, or is about to employ, any of the above or has a financial interest in the firm selected for award NEW: Must disclose to CSI in writing in a timely manner: a. All violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. b. Failure to make disclosures can result in remedies including ineligibility for Federal funds. C.F.R

27 Procurement: Competition All procurement transactions must be conducted with full and open competition. Must have protest procedures to handle disputes To eliminate unfair advantage, contractors that develop or draft specifications, requirements, statement of work, and invitations for bids or RFPs must be excluded from competing for such procurements. C.F.R (a) 27

28 Procurement: Methods NEW: Micro-Purchase a. Supplies and services $3,000 or less b. May be awarded without soliciting competitive quotations if non- Federal entity considers the cost reasonable c. To the extent practicable must distribute micro-purchases equitably among qualified suppliers Small Purchase Procedures a. Goods or services that cost $150,000 or less i. NEW: Simplified Acquisition Threshold was raised ii. Organization may set lower threshold b. Must obtain price or rate quotes from adequate number of qualified sources c. Relatively simple and informal If the non-federal entity has more restrictive procurement method policies or procedures in place, the entity must use the more restrictive procurement methods rather than those described above. C.F.R

29 Procurement: Travel and Entertainment Travel costs may be charged on actual, per diem, or mileage basis a. Travel charges must be consistent with entity s written travel reimbursement policies b. NEW: Allows costs for above and beyond regular dependent care c. NEW: Grantee must retain documentation that participation of individual in conference is necessary for the project d. Travel costs must be reasonable and consistent with written travel policy or follow GSA 48 CFR (a) Costs of entertainment are unallowable C.F.R and

30 Procurement: Supplies Supplies - All tangible personal property other than equipment NEW: Computing devices a. Machines used to acquire, store, analyze, process public data and other information electronically b. Includes accessories for printing, transmitting and receiving or storing electronic information c. Supplies if less then $5,000 C.F.R and

31 Procurement: Equipment Capital expenditures for general purpose equipment are unallowable, except with the prior written approval of the Federal awarding agency or pass-through entity Cost > $5,000 To be used by the non-federal entity in the program or project for which it was acquired NEW: Cannot encumber the property without approval of Federal agency or pass-through agency NEW: When acquiring replacement equipment, may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property. C.F.R and

32 Procurement: Equipment (cont d) Property Records must be maintained that include: a. Description of the property b. Serial number of other identification number c. Source of funding for property (including the FAIN) d. Who holds title e. Acquisition date f. Cost A physical inventory must be taken and the results reconciled with the property records at least once every two years Use of control system to safeguard and prevent loss of assets Use of adequate maintenance procedures to keep the property in good condition C.F.R (d) 32

33 Procurement: Equipment (cont d) When property is no longer needed in any current or previously Federally-funded supported activity, must follow disposition rules: NEW: Non-Federal entity must request disposition instructions from CSI In general equipment may be retained, sold or otherwise disposed as follows depending on per unit FMV (fair market value): Over $5,000: a. If equipment is sold: Federal awarding agency may permit non-federal entity to deduct and retain $500 or 10% of the proceeds, whichever is less, for selling and handling expenses. b. May transfer title to another non-federal entity awarded same grant Under $5,000 no accountability (still must formally dispose) C.F.R (e) 33

34 Procurement: Suspension and Debarment Restrict contracts with certain parties that are debarred, suspended of otherwise excluded from or ineligible for participation in Federal Assistance programs or activities. System for Award Management (SAM) A system that combines Federal procurement systems and the Catalogue of Federal Domestic Assistance Federal Government only does business with responsible contractors (FAR 9.402(a)) Excluded contractors are listed on SAM ( C.F.R

35 Time and Effort NEW: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed The focus is now on accountability to protect against waste, fraud and abuse, however until a precedence has been set, CDE recommends that we continue with prior required methods (see following slide). C.F.R (a) and

36 Time and Effort (cont d) Semi-annual Certifications Single Cost Objective After the fact Account for the total activity Signed by employee or supervisor Every six months (at least twice a year) Personnel Activity Report (PAR) Multiple Cost Objectives After the fact Account for total activity Signed by employee Prepared at least monthly and coincide with one or more pay periods Sample certification form on CSI Website: (Checklists and Templates -> Sample Federal Program Certification Form Single Cost Objective) 36

37 Time and Effort (cont d) NEW: Time and effort records MUST: a. Be supported by a system of internal controls which provides reasonable assurance charges are accurate, allowable and properly allocated b. Be incorporated into official records c. Reasonable reflect total activity for which employee is compensated (not to exceed 100%) d. Encompass all activities (Federal and non-federal) e. Comply with established accounting policies and practices f. Support distribution among specific activities or cost objectives C.F.R (i) 37

38 Required Registrations: DUNS Number Issued by Dun and Bradstreet This can be obtained at It takes no more than 1-2 business days to obtain a DUNS # Required for SAM.gov registration as the unique identifier 38

39 Required Registrations: SAM.gov All applicants for Federal Grants must: a. Be registered in the SAM (System for Award Management prior to submitting an application or plan b. Maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by an agency; and c. Provide its unique entity identifier in each application or plan it submits to the agency. (CFR (b)1-3) Instructions for registering for sam.gov can be obtained at It can take 7-10 days for registration to become active in sam.gov once the form is completed. Registrations must be renewed yearly. Award documents will use the business name shown in sam.gov (2 CFR (a)1) 39

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41 Additional Resources EDGAR Education Department General Administrative Regulations Code of Federal Regulations Title 2 Grants and Agreements Title02/2tab_02.tpl Title 34 - Education Title34/34tab_02.tpl Technical Assistance for ED Grantees 41

42 Q & A 42