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The New EDGAR

Join us at The New EDGAR 13th Annual Title Programs Conference to learn about the government regulations applicable to grants, including 34 C.F.R. Part 75, 76, 77, and more. Explore the distinction between a grant and a contract, the consequences of non-compliance, and the historical timeline of rules and circulars. Don't miss this opportunity to gain a comprehensive understanding of federal requirements for title programs.

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The New EDGAR

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  1. The New EDGAR 13thAnnual Title Programs Conference June 17-18, 2015 Atlanta Airport Marriott Gateway 2020 Convention Center Concourse, Atlanta, GA 30337

  2. Presenters Jennifer L. Davenport, Ed.D. Title I, Part A Program Manager Georgia Department of Education jedavenp@doe.k12.ga.us (404) 463-1955 Margo K. DeLaune Title Programs Director Georgia Department of Education mdelaune@doe.k12.ga.us (404) 657-1796 2

  3. The New EDGAR SCHOOL IMPROVEMENT & DISTRICT EFFECTIVENESS

  4. Government RegulationsApplicable to Grants • 34 C.F.R. Part 75 (Direct Grant Program) • 34 C.F.R. Part 76 (State-Administered Programs) • 34 C.F.R. Part 77 (Definitions that Apply to Department Regulations) • 34 C.F.R. Part 79 (Intergovernmental Review of Department of Education Programs and Activities) • 34 C.F.R. Part 81 (General Education Provisions Act – Enforcement) • 34 C.F.R. Part 82 (New Restrictions on Lobbying) • 34 C.F.R. Part 84 (Governmentwide Requirements for Drug-Free Workplace (Financial Assistance))

  5. Government RegulationsApplicable to Grants • 34 C.F.R. Part 86 (Drug and Alcohol Abuse Prevention) • 34 C.F.R. Part 97 (Protection of Human Subjects) • 34 C.F.R. Part 98 (Student Rights in Research, Experimental Programs, and Testing) • 34 C.F.R. Part 99 (Family Educational Rights and Privacy) • 2 C.F.R. Part 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)), as adopted at 2 C.F.R. Part 3485 • 2 C.F.R. Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), as adopted at 2 C.F.R. Part 3474

  6. Grant Agreement A grant agreement (legal instrument of financial assistance) to enter into a relationship the principal purpose of which is to transfer anything of value from the federal awarding agency to the non-federal entity to carry out a publicpurpose authorized by law. 2 C.F.R. § 200.51

  7. Grant vs. Contract • The distinction between a grant and a contract is found in 2 C.F.R. § 200.330 • Grants are subject to applicable federal requirements. • Contracts are not subject to federal compliance.

  8. Grantee Failure to Comply with Applicable Federal Requirements • Congress may fix the terms on which it disburses grants. • A federal grant is much in the nature of a contract, in return for the federal funds the grantee agrees to comply with the federally imposed conditions. Pennhurst vs. Halderman, 451 U.S. 1 (1981) • But New Jersey and Pennsylvania argued to the Supreme Court that US ED cannot recover misspent grant funds Bell v. New Jersey and Pennsylvania, 461 U.S. 773 (1983)

  9. Grantee Failure to Comply with ApplicableFederal Requirements • Federal auditors determined both states misspent Title I funds. • Supreme Court held that grantees misusing federal funds incur a debt to the Federal Government (citing Section 415 of GEPA)which states that grants must be adjusted on account of overpayments

  10. Grantee Failure to Comply with Applicable Federal Requirements • Citing Pennhurst: the grantee chose to participate in the program, and as a condition of receiving the grant, gave an assurance that it would abide by the conditions of the grant.

  11. Conditions of the Grant • Many of the conditions of the grant are included in GEPA and EDGAR.

  12. Conditions of the Grant • Many of the conditions of the grant are included in GEPA and EDGAR.

  13. Historical Timeline Rules • Prior to 1970 (HEW) (USOE)--Administrative, Cost and Audit rules were included as part of program regulations. • The Education Amendments of 1970 (Pub Law 91-230) (Section 401) brought general provisions of prior laws into single title: “The General Education Provisions Act (GEPA)”. • Between 1965 and 1972 USOE very broadly interpreted federal statues. Congress questioned legal authority of some of the federal regulations • Education Amendments of 1972 – “Section 503 Study”

  14. Historical Timeline Rules • Lead to the “General Provisions for Office of Education Programs” November 6, 1973, 45 C.F.R. Part 100 • This lead to the first EDGAR • EDGAR incorporated by reference “OMB Circulars”

  15. Historical TimelineCirculars • Circular A-1 (August 7, 1952), Bureau of the Budget • Describes the Bureau's system of Circulars and Bulletins which are employed to communicate various instructions and information to the executive departments and establishments. The Circular series is used when the nature of the subject matter is of continuing effect.

  16. Historical TimelineCirculars • Circular A-87 – Cost Principles • First issued in 1968 • Revised in 1995 • Repealed in 2014 • Now in 2 C.F.R. Part 200, Subpart E

  17. Historical TimelineCirculars • Circular A-1 (August 7, 1952), Bureau of the Budget • Describes the Bureau's system of Circulars and Bulletins which are employed to communicate various instructions and information to the executive departments and establishments. The Circular series is used when the nature of the subject matter is of continuing effect. • The Bureau of Budget • Established by President Warren G. Harding in 1921 • Became the Office of Management and Budget (OMB) in 1970

  18. Historical TimelineAudit Principles • 1978 - Congress enacts Inspector General Act • Prior to 1979, each federal agency developed own audit rules and policies • In 1979, OMB issued Attachment P to OMB CircularA-102 (Administrative Rules) • Program statutes often imposed federal audit requirements (e.g. The VEA Amendments of 1976). • 1979 – Congress enacts Department of Education Organization Act • 1980 – US ED opened for business

  19. Historical TimelineUS Department of Education • 1979 – Congress enacts Department of Education Organization Act • 1980 – US ED opened for business

  20. Historical TimelineAudit Principles • 1980 EDGAR Parts 74, 75, 76, 80 moved to Title 34 of the C.F.R. • 1984 – Single Audit Act • OMB issues Circular A-133 to cover state/local grantees expending over $25,000 • 1996 – Single Audit Amendment to cover IHEs, Non-profits • Audit threshold increased to $300,0000 • 1996 – First OMB Compliance Supplement Issued

  21. The New EDGAR • Repeals OMB Circulars A-133, A-21, A-87, A-102, A-110, and A-122

  22. 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

  23. Effective Dates for 2 C.F.R. Part 200 • December 26, 2014 – Direct Grants from ED • July 1, 2015 – State Administered Programs • July 1, 2016 – Procurement Rules – One Year Grace Period • Indirect Cost Rates When Due For Renegotiation

  24. Effective Dates for 2 C.F.R. Part 200 • December 26, 2014 – Direct Grants from ED • July 1, 2015 – State Administered Programs • July 1, 2016 – Procurement Rules – One Year Grace Period • Indirect Cost Rates When Due For Renegotiation

  25. US ED Adopts OMB Guidance US ED Adopts OMB Guidance in 2 C.F.R. Part 200 except for: • 2 C.F.R. § 200.102(a) • Authority for granting exceptions to regulations vested in OMB. • But Department of Education Organization Act 20 U.S.C. § 3472 does not permit Secretary to delegate exceptions to OMB. • Secretary will consult within OMB. • 2 C.F.R. § 200.207(a) • The Secretary retains the authority under sections 74.14 and 80.12 to impose high risk conditions on individual grants and individual grantees at time award is made or after an award is made.

  26. Programs to Which Part 76 Applies • Parts 76.1; 76.50; 76.51 • Program statute authorizes fund allocation to States by formulas • State allocates funds by formula (Title I, IDEA-B, Perkins) or Competitively (AEFLA, 21st Century)

  27. Part 76 The General State Application • 76.101 • Meets requirements of Section 441 of GEPA. The LEA Local Application • 76.301 • Meets requirements of Section 442 of GEPA. Disapproval of an Application • 76.401 • Due Process and State Agency Hearing

  28. Part 76 Allowable Costs • 76.530 • The general principles to be used in determining costs applicable to grants is in 2 C.F.R. Part 200, Subpart E. Indirect Cost Rates • 76.560 through 76.569 • Incorporates language from 2 C.F.R. Part 200, 79 FR 76094 General Administrative Responsibilities • 76.700 through 76.702 • Incorporates 2 C.F.R. Part 200, Subpart D.

  29. Part 76 Obligation of Funds • 76.703 • If plan submitted in “Substantially Approvable Form” funds available for obligation on date funds available to Secretary for obligation. When Obligations are Made • 76.707 • Note differences on obligation dates • Adds new category: pre-agreement costs approved by Secretary are obligated on 1st day of grant performance period.

  30. Part 76 Obligation Period • 76.708 through76.710 • 708(c) references 2 C.F.R. Part 200 on Pre-Agreement Costs. Reports and Records • 76.720 through 76.731 • References new reporting requirements on financial management in 2 C.F.R. § 200.302 (performance reporting) Funds under More than One Program to Assist a Single Activity • 76.760 • Must comply with req. of each program • Proper accounting

  31. Part 76 Procedures to Ensure Compliance • 76.770 through 76.783 • Goes beyond requirements of 2 C.F.R. Part 200, Subpart D Federal Procedures to Assure Compliance • 76.900 • No waivers, unless specifically authorized • 76.901 • OALJ • 76.902 • Judicial Review • 76.910 • Cooperation with Audits

  32. The New 2 C.F.R. Part 200 • Stronger emphasis on internal controls • Enhanced monitoring/performance metrics • Monitoring--200.331(d) • States must monitor its subrecipients to assure compliance and performance goals are achieved • Monitoring must include: Review of financial and programmatic reports; Ensuring corrective action; Issue a “management decision” on audit findings

  33. The New 2 C.F.R. Part 200 • Performance Metrics--200.328(b)(2) • The performance reports must include: Comparing actual accomplishments to the objectives established by the federal award; Where the accomplishments of the federal award can be quantified, a computation of the cost (for example, related to units of accomplishment) may be required if that information will be useful; If performance trend data is useful, federal awarding agency should include this as a performance reporting requirement. • The reasons why established goals were not met, if appropriate. • Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. • Significant developments, problems, delays, adverse conditions. • Favorable developments.

  34. The New 2 C.F.R. Part 200 • Subpart A – Definitions • Subpart B – General Provisions • Subpart C – Pre Award Requirements • Subpart D – Post Award Requirements • Subpart E – Cost Principles • Subpart F – Audit Requirements

  35. Written Policies and Procedures Required under 2 C.F.R. Part 200 • Written policies and procedures are required! • Written Cash Management Procedure - § 200.302(b)(6) & § 200.305 • Written Allowability Procedures - § 200.302(b)(7) • Written Conflicts of Interest Policy - § 200.318(c) • Written Procurement Procedures - § 200.319(c) • Written Method for Conducting Technical Evaluations of Proposals and Selecting Recipients - § 200.320(d)(3) • Written Travel Policy - § 200.474(b)

  36. Required Certification under 2 C.F.R. Part 200.415 To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets, the annual and final fiscal reports or vouchers requesting payment under the agreements must include a certification, signed by an official who is authorized to legally bind the non-federal entity, which reads as follows:

  37. Required Certification under 2 C.F.R. Part 200.415 “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. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”

  38. Questions?? Brustein & Manasevit, PLLC

  39. Title I Education Program Specialists Contact Information

  40. Presenters Jennifer L. Davenport, Ed.D. Title I, Part A Program Manager Georgia Department of Education jedavenp@doe.k12.ga.us (404) 463-1955 Margo K. DeLaune Title Programs Director Georgia Department of Education mdelaune@doe.k12.ga.us (404) 657-1796 40

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