2 CFR 200- aka Uniform Guidance

1. 2 CFR 200- aka Uniform Guidance

2. What is the Uniform Guidance? The Office of Management and Budget (OMB) has combined 8 federal circulars into a single document known as Uniform Guidance. The Council on Financial Assistance Reform (COFAR) was delegated the responsibility of developing the Uniform Guidance, with the goal of reducing administrative burden while improving oversight and accountability. • Addresses the administration’s goal of a government that is more efficient, effective and transparent. • Strengthens requirements for INTERNAL CONTROLS while providing administrative FLEXIBILITY for non-Federal entities. • The Uniform Guidance applies to new awards and incremental funding to existing awards made on or after 12/26/14.

3. Administrative Requirements What changed? Uniform Grant Guidance: Title 2 of CFR, Subtitle A, Chapter II, Part 200

4. Administrative Requirements • Combined all related OMB guidance into one location (2 CFR 200) • Administrative requirements (A-102, A-110) • Federal cost principles (A-21, A-87, A-122) • Single audit (A-133, A-89, parts of A-50) • According to COFAR, this eliminated about 80 pages “of overlapping, duplicative, and conflicting provisions”

5. “Eliminating” 80 Pages

6. Structure of Uniform Guidance • Located at 2 CFR 200 • Contents • Subpart A – Acronyms and Definitions • Subpart B – General Provisions (200.1xx) • Subpart C – Pre-Award Requirements (200.2xx) • Subpart D – Post-Award Requirements (200.3xx) • Subpart E – Cost Principles (200.4xx) • Subpart F – Audit Requirements (200.5xx) • Appendices I - IX

7. Significant Changes • Changes in organization/terminology • Internal control requirements • New procurement standards • Subrecipient monitoring/management • Minor changes to cost principles • Numerous changes to single audit requirements

8. 2 CFR 200.458Pre-Award Cost Uniform Guidance: Pre-award costs are those incurred prior to the effective date of the Federal award in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. US FWS – Sport Fish Restoration Grant Program CFDA Number: 15.605 NOFO F16AS00048: Estimated costs to attain the objectives – The various activities or components of each project should be broken down by cost and by cooperator; Texas’ US FWS Region – Originally required that exact cost for pre-agreement cost be submitted with the application. After discussions, they have accepted estimated cost.

9. INTERNAL CONTROLSSection 200.303 Recipients of federal funding must: • Establish and maintain effective internal controls that provide reasonable assurance that you are managing awards in compliance with Federal statutes, regulations and the terms and conditions of the award. • Evaluate and monitor compliance and take prompt action when instances of non-compliance are identified • Take reasonable measures to safeguard protected personally identifiable information

10. 200.306   Cost Sharing or Matching (Equipment Rates) • (h) The method used for determining cost sharing or matching for third-party-donated equipment, buildings and land may differ according to the purpose of the Federal award. Federal Agencies have latitude for interpretation: • USFWS interprets this to mean rates of depreciation or regional USACE rates can be used by sub-recipients VS. • FHWA interprets this to mean that easy to use FEMA rates can be used by all • Recommend that NPS allow utilization of FEMA rates by Pass-through entities and Sub-Recipients.

11. REVISION OF BUDGET & PROGRAM PLANSSection 200.308 The following budget or program deviations require prior approval from the federal agency: • Change in scope or the objective of the program • Change in a key person specified in the application • Inclusion of costs that require prior approval • Transfer of funds budgeted for participant support costs • Sub awarding or contracting work out unless described in the application

12. PROCUREMENTSections 200.317 through 326 The UG provides detailed methods to procure goods and services when funded by a federal award which includes stricter requirements for sole-source purchases. The UG emphasizes the documentation requirements and internal written procedures for procurement.

13. 2 CFR 200.328Monitoring and Reporting Program Performance • You are responsible for oversight of the operations of the Federal award supported activities. You must monitor its activities to assure compliance with Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity. • Construction performance reports. Onsite technical inspections and certified percentage of completion data are relied on heavily by Federal awarding agencies to monitor progress under Federal awards and subawards for construction. The Federal awarding agency may require additional performance reports when considered necessary. • Texas’ USFWS Region : • No specific form or format required to complete the Interim Performance Report or the Final Performance Report. • No guidelines on certified percentage of completion data. • Each state within the Region has their own form and provides its percentages based on their processes.

14. REQUIREMENTS FOR PASS-THROUGH ENTITIES Section 200.331 • Includes a standard list of information that must be included in all sub awards (longer more detailed grant agreements) • Requires us to perform a risk assessment of subrecipients prior to issuing subagreements to determine the appropriate level of monitoring. The UG provides the critieria for determining risk, which includes prior experience and audit results

15. TPWD Risk Assessment Guidance

16. TPWD Risk Assessment Guidance

17. TPWD Risk Assessment Guidance

18. TPWD Risk Assessment Guidance

19. TPWD Risk Assessment Guidance

20. TPWD– Sample Risk Assessment

21. TPWD– Sample Risk Assessment

22. TPWD– Sample Risk Assessment

23. TPWD– Sample Risk Assessment

24. TPWD– Sample Risk Assessment

25. TPWD– Sample Risk Assessment

26. TPWD– SampleRisk Assessment

27. TPWD– Sample Risk Assessment

28. TPWD– Sample Risk Assessment External sources referenced: • SAM (System of Award Management) results • FAPIIS (Federal Awardee Performance & Integrity Info System) results • Federal Audit Clearinghouse SF-Single Audit Report

29. Increased Administrative Burden • 2 CFR 200 was intended to streamline regulations… • In reality it has dramatically increased Administrative Burden on our staff • Each federal agency may implement a slightly different version of the UG

30. Challenges with implementing the Uniform Guidance • Language in the Uniform Guidance is open ended • Focus on effectiveness of internal controls • Non-Federal Entities required to maintain written policies • Policies surrounding cash management and subrecipient risk assessments • Challenges in evaluating controls & processes to determine adequacy • Need to develop new forms and procedures at state level • Time to understand and negotiate administrative requirements with federal partners

31. Challenges with implementing the Uniform Guidance Pushing down new requirements to sub awardees Varying levels of expertise and sophistication of sub awardees Impact of changes on your internal agency structure More time and resources needed to meet inspection requirements Lack of administrative funding from feds to meet new requirements Need for additional FTE and other operating resources??