How Will Federal Grant Reform Impact the Grant Professional - DATA Act

Reform of Federal Policies Related to Grants & Cooperative Agreements

June 14, 2013 Presented to:

Minnesota Northstar Grant Professionals Association

By Jo Miller, GPC

J. Miller & Associates, Inc. Jmiller@JMGrants.com

Jo Miller, GPC Jmiller@JMGrants.com 1

1999 - Public Law 106 – 107

• Effectiveness & Performance • Simplify applications &

reporting • Improve delivery of services • Facilitate greater

coordination

Federal Financial Assistance Management Improvement Act

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2009 - Executive Order 13520

• Transparency & Public Participation

• Accountability & Coordination

• Focus on Contractors & working with

State and Local Stakeholders

• Policy Proposals

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2010- Government Accountability & Transparency Board

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2011 Digital Government

• Enable access to high-quality digital

government information and services any

time anywhere on any device.

• Government adjusts to digital world

• Unlock the power of government data to spur

innovation and improve quality of services

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Technology Makes a Difference

• Speed of Digital Information

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2012 - 21st - Century Government

• Efficient • Transparent • Creative

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System for Award Management

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2012 Advance Notice of Proposed Guidance

$600 Billion in Grants & Cooperative Agreements Annually

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2013 - Proposed Rule

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Reform of Federal Policies Relating to Grants and Cooperative

Agreements; Cost Principles and Administrative Requirements

(Including Single Audit Act)

Federal Reform for Grants

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Strong Controls, Better Outcomes

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Guidance Targets Risk & Minimizes Burden

• Overlapping Complex Guidance

• Inefficient Use of Oversight Resources

Revised Guidance in OMB Circulars

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Combine 8 into 1

• Administrative Requirements – A-102, Grants and Cooperative Agreements with State and Local Governments – A-110, Uniform Administrative Requirements for Grants and Other Agreements

with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations

– A-89, Catalog of Federal Domestic Assistance

• Cost Principles – A-21, Cost Principles for Educational Institutions – A-87, Cost Principles for State, Local and Indian Tribal Governments – A-122, Cost Principles for Non-Profit Organizations

• Audit Requirements – A-133, Audits of States, Local Governments and Non-Profit Organizations – A-50, Audit Follow-up

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Revised Guidance on OMB Circulars Return on Investment

• Reduced burden through clear guidance

• Reallocated Audit Resources

• Robust comprehensive guidance for grants community

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Universally Standardized Grants Business Process

Data Collections Streamlined

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Universally Standardized Grants Business Process

• June 2013 ~ standardized award notice, closeout data and certifications

• December 2013~ revised standardized post award data

• June 2014~ standardized pre award data • December 2015 ~ any non-standard form approvals

will expire

Data Collections Streamlined Timeline

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Validated Public Financial Data

• Lack of control totals to verify accuracy of spending data and financial data and accountability to stakeholders

• Lack of high quality information on which to base program management decisions

• Inability to adequately satisfy requests for information

Public Spending Data Aligned to Core Financial Data

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Highly Qualified Personnel

• Lack of consistent standards for qualifying people to perform the grants management function

• No government-wide core training required of people performing the grants management function

Grants Professionals Are Trained and Certified

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Highly Qualified Personnel

• Reduce financial risk of grants through staff competency

• Consistency across government

• Leverages work done by Leading EDGE group

• Standard set of competencies and core training for grants managers

Grants Professionals Are Trained & Certified ROI

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Strong Program Oversight

• Many major Federal programs receive repeated “unclean” audit opinions from the same grantees

• Lack of prompt follow-up actions lead to unresolved audit findings

• Unresolved audit findings increase the risks to program integrity

Reduce Unclean Audit Opinions

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Strong Program Oversight

• Stronger Oversight & Reduced Risks

• Reduce potential for Improper Payments

Reduce Unclean Audit Opinions ROI

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Indicators of Successful Management of Grant Dollars

Fewer Unclean

Audit Options

Timely Grant

Closeout

Fully Certified

Professional Workforce

Validated Public

Financial Data

Recipients Report

Reduced Burden

Measurably Improved Outcomes

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Resources

• Executive Order 13576 • Executive Order 13520 • GATB • US CFO Council – Reform of Federal Grants Policy • Advanced Notice of Proposed Guidance in Federal Grants • Digital Government • SAM • Grants Management Training

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Questions

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Jo Miller, GPC JMiller@JMGrants.com

@JM_Grants