Uniform Grant Guidance/Green Book

1. Uniform Grant Guidance/Green Book Changes and Implementation June, 2015

2. Purpose of Training • Discuss the major changes resulting from the Uniform Guidance. • Identify changes that have been made to the Green Book. • Inform all participants of how DOE is implementing these changes • Solicit feedback.

3. What is this New Guidance? The Office of Management and Budget (OMB) released its final guidance on “Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards”. This new guidance, the Uniform Grant Guidance or UGG, is a reform of previous OMB guidance and serves as a one-stop shop for federal assistance and provides a government-wide framework for grants management. (Previously known as Omni or Super Circular)

4. Goals of the Uniform Grant Guidance • Streamline guidance on federal awards; • Reduce administrative burden for the government; • Strengthen federal oversight of funding to reduce potential for waste, fraud and/or abuse; • Set standard requirements for financial award management uniformly across all federal agencies; • Consolidate eight OMB Circulars into Title 2 of the CFR; • Increase efficiency and effectiveness of Federal award-making.

5. From Circulars to the Uniform Guidance

6. EDGAR – Old Friend, New Look

7. Key Parts of the NEW EDGAR • Title 34 • Part 75 – Direct Grant Programs • Part 76 – State-Administered Programs • Part 77 – Definitions • Part 81 – Enforcement • Title 2 • Part 200 – Cost/Administrative/Audit Rules

8. Prior Rules (Incorporated Into the NEW EDGAR) • A-21 – Cost Rules – Rules – IHEs • A-87 – Cost Rules – State / Local Gov’t • A-122 – Cost Rules – Nonprofit • A-102 – Administrative Rules State / Local Gov’t • A-110 – Administrative Rules IHEs • A-133 – Audit Rules

9. Relationship of UGG to Green Book • Project Application and Amendment Procedures for Federal and State Programs (Green Book) provides guidance to internal staff, recipients and subrecipients for management of state and federal projects. • Includes both federal and state requirements. • To the extent appropriate, UGG changes have been incorporated into this revision of the Green Book. • There are elements of the Uniform Guidance that may have impact that may not be reflected in the Green Book so participants should continue to familiar themselves with UGG.

10. Applicability • Who does UGG apply to? All non-Federal entities receiving federal funds as a recipient or subrecipient. • What is a non-Federal entity? Any entity not part of the federal government that receives federal funds as a recipient or subrecipient.

11. Grant vs. Project/Subgrant • Be cautious of references to the term “Grant.” • When used in UGG, the term “Grant” refers to the award of funds from the federal government to DOE (or direct funding from the federal government to any eligible entity). • In order to distinguish between the award of funds to DOE, we use the term “Project” or “Subgrant” to refer to DOE award of funds to other entities.

12. Training Overview • Cost Principles • Indirect Costs Pre-Award Post-Award Procurement

14. Pre-Award

15. UGG’s Impact on Green Book Many of the Green Book’s standard forms have been amended as a result of the recent UGG: • DOE FORMS 100 A/B – Project Application Forms • DOE FORM 150 – Project Amendment Form • DOE FORM 200 – Project Award Form • DOE FORM 900s – RFA/RFP Templates • DOE FORM 610 & 620 – Risk Analyses

16. New Certification Statement • Updated required certification statement for the project application, amendments, fiscal reporting and General Assurances. • Required on all annual and final fiscal reports for payments. Note: the language of the certification has been modified for the application and amendment forms.

17. Certification Language I, ______________________________________________, (Please Type Name)as the official who is authorized to legally bind the agency/organization, do hereby certify to the best of my knowledge and belief that all the information and attachments submitted in this application are true, complete and accurate, for the purposes, and objectives, set forth in the RFA or RFP and are consistent with the statement of general assurances and specific programmatic assurances for this project. I am aware that any false, fictitious or fraudulent information or the omission of any material fact may subject me to criminal, or administrative penalties for the false statement, false claims or otherwise. Furthermore, all applicable statutes, regulations, and procedures; administrative and programmatic requirements; and procedures for fiscal control and maintenance of records will be implemented to ensure proper accountability for the expenditure of funds on this project. All records necessary to substantiate these requirements will be available for review by appropriate state and federal staff. I further certify that all expenditures will be obligated on or after the effective date and prior to the termination date of the project. Disbursements will be reported only as appropriate to this project, and will not be used for matching funds on this or any special project, where prohibited. Further, I understand that it is the responsibility of the agency head to obtain from its governing body the authorization for the submission of this application.

18. DOE 100 A – Project Application • New category added to capture the Data Universal Numbering System (DUNS) # & Employer Identification Number (EIN) # • Applicants must now include their DUNS # (Unique Entity Identifier) used for the System for Award Management (SAM) registration. The name used on the actual Award must match the name attached to these documents. • EIN, according to IRS can be Taxpayer Identification Number (TIN); Social Security Number (SSN) and Individual Taxpayer Identification Number (ITIN) • New Certification Statement required.

19. DOE 150 – Project Amendment Form • Restructured to align with changes to Form 100A • Certification statement required

20. DOE 200 – Project Award Form • Adds details to satisfy Federal requirements • Federal award indicated – Title & Number • DUNS number indicated (Unique Entity Identifier) • FEID/FEIN number indicated • RFA/RFP incorporated into the terms and conditions

21. DOE 900s Forms – Application Templates • Application templates have been updated • Revised General Assurances • New Uniform Guidance references • Revised Risk Analysis requirements • Revised guidance on equipment purchases

22. UGG Requires a Risk Analysis Components of Risk Analysis Subrecipient’s prior experience with the same or similar subawards; Audit results; New staff and/or changed systems; Results of any direct Federal monitoring • Section A of DOE’s Green Book amended to require risk analysis for ALL subrecipients.

23. Organizational charts and agency’s Board approved policies and procedures. Changes in senior management and/or changed internal systems Results of any direct Federal monitoring Written policies and procedures must be submitted. Single audit results School Districts, State Colleges, State Universities, and Florida State Agencies Risk Analysis Tool – DOE Form 610 (new)

24. Organizational charts and list of agency’s Board of Directors procedures. Subrecipient’s prior experience with subaward(s). Written policies and procedures must be submitted. Results of any monitoring or program reviews. Single audit results must be submitted with application packet. Financial stability will be determined. Governmental and Non-Governmental Agencies (except Florida State Agencies) Risk Analysis Tool – DOE Form 620

25. Review of Risk Posed by Applicants • The pass-through entity (FDOE) must have a framework for evaluating risks before any applicant receives funding. The framework should evaluate: • Financial Stability • Quality of Management System • History of Performance • Audit Reports • Applicant’s Ability to Effectively Implement Program

26. Special Conditions Results of the Risk Assessment may be cause for Special Conditions to be placed upon an award to include, but not limited to the following: • Require reimbursement; • Withhold funds until evidence of acceptable performance; • More detailed reporting; • Additional monitoring; • Require subgrantee/subrecipient to obtain technical or management assistance; or • Establish additional prior approvals.

27. Financial Management System • New: Identification of Federal Awards • Financial Reporting • Accounting Records • Internal Controls • Budget Controls • New: Written Procedures to Implement CMIA* • New: Written Procedures to Determine Allowability *CMIA = Cash Management Improvement Act

28. Financial Management System Management requirements - Written procedures for determining the allowability of costs in accordance with Subpart E—Cost Principles and the terms and conditions of the Federal program.

29. Internal Controls (Must Be Formalized in Writing) The non-Federal entity must: • Establish and maintain effective control over the federal award. • Evaluate and monitor the non-Federal entity’s compliance statutes, regulations, and terms of the federal award. • Take prompt action when instances of noncompliance are identified, including noncompliance identified in audit findings. • Take reasonable measures to safeguard protected personally identifiable information as defined under 2 CFR §200.79

30. Equipment Management Requirements. Managing procedures for equipment acquired in whole or in part under a Federal award shall, at a minimum, require: • Description of the property • Source of funding • Acquisition date and cost • Percentage of Federal participation • Location • Use and condition of the property • Disposition data

31. Equipment (cont.) • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. However, the state requirement is that inventory be reconciled annually. • A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. • Adequate maintenance procedures must be developed to keep the property in good condition. • If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return.

32. Procurement • The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: • Clear and accurate description of the technical requirements for the material, product, or service to be procured. • Description must not, in competitive procurements, contain features which unduly restrict competition. • The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards. • Avoid detailed product specifications. • When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement.

33. Conflict of Interest • Must maintain written standard of conduct, including conflict of interest policy. • A conflict of interest arises when any of the following has a financial or other interest in the firm selected for award: • Employee, officer or agent • Any member of that person’s immediate family • That person’s partner • An organization which employs, or is about to employ, any of the above or has a financial interest in the firm selected for award

34. Conflict of Interest 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 .

35. Florida Guidelines Procurement for school districts is governed by Rule 6A-1.012, FAC, Purchasing Policies. This rule requires that each district school board shall establish purchasing rules which must include but not be limited to the provisions contained in the Rule. https://www.flrules.org/gateway/RuleNo.asp?title=FINANCE AND ADMINISTRATION&ID=6A-1.012 Procurement for state agencies is governed by Chapter 287, Laws of Florida.

36. Florida Guidelines All other entities must adhere to procedures specified in UGG. OMB is allowing other entities an additional year to come into compliance with the revisions to the procurement requirements; however the basic principles have not changed. Carefully review the requirements in UGG and develop written procedures accordingly.

37. Cash Management The non-Federal entity must have written procedures for cash management activities. These procedures must ensure that the following phases are addressed: • Payment Process • Obligation • Liquidation • Drawdown • Cash Management Improvement Act (CMIA) requires no more than 72 Hours between draw down of monies and payment of those monies, otherwise interest begins to accrue.

38. Post Award

39. Award Letter Received, Now What?

40. Uniform Guidance & Performance Uniform Guidance stresses utilizing performance requirements • Program goals • Expected outcomes • Milestones (lessons learned, use of promising practices) • Continue using FL guidance

41. Performance - Financial Reporting Performance Metrics • Compare actual accomplishments to objectives. (quantify to extent possible) • Reasons goals were not met if appropriate • Additional pertinent information (e.g. analysis and explanation of cost overruns, high unit costs) • Significant developments • Problems, delays. Adverse conditions that would impair ability to meet objective of the award • Favorable developments. Finishing sooner or at less cost

42. Performance Expectations and Results/Deliverables • Program Goals • Scope of Work • Tasks

43. Performance Expectations and Results – Performance Measures Expectations • Specific Quantities • Milestones or Frequency • Level of Completion • Materials Provided

44. Financial Consequences Monetary adjustments for non-performance

45. Timeline for Effects of Changes • US Department of Education has indicated that changes in performance expectations will be handled on a program by program basis. It may be some time before the full effects of the changes are felt. • Expect to see more rigorous performance requirements to be implemented with programmatic reauthorization, and updated regulations and/or non-regulatory guidance.

46. Final Expenditure Reports: DOE 399, 499, and 599 New certification statement replaces previous certification statement on these reporting forms. 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.

47. Key Changes in Audit Requirements • Single Audit Threshold has increased to $750,000. • Questioned costs <$25,000 are no longer required to be reported. • Fewer audits and findings have monitoring implications. • Audits must be submitted electronically to the Federal Audit Clearinghouse and made available to all funding agencies. • States will continue to resolve sub-recipient audits.

48. Cost Principles

49. Cost Principles Notable changes: • Certification required for fiscal reports, payment vouchers, and indirect cost proposals. • Adds guidance about dependent care costs related to conferences. • Discusses direct charging of materials and supplies (Computer equipment <$5,000 treated as a supply). Florida requirements will not change. State law prescribes a threshold of <$1,000. • Small attractive items with a purchase value less than $1,000, whether classified as equipment, technological item, or supplies must be safeguarded and there must be a written policy on tracking.

50. Cost Principles (cont.) State restrictions may further limit expenditures of federal awards. See “Reference Guide for State Expenditures.”