OMB Uniform Guidance Faculty Presentation Chris G. Green, CPA Director, Sponsored Programs

OMB Uniform Guidance Faculty Presentation

Chris G. Green, CPADirector, Sponsored Programs

Topics

• When and why the new OMB Uniform Guidance?

• What is the new OMB Uniform Guidance (UG)?

• What does the UG apply to? • How does the UG affect HSC investigators’

proposals and post-award responsibilities?

When and Why the Change?

• Developed in response to the Executive Order 13520 (2009) on Reducing Improper Payments

• Presidential Memorandum detailed Administrative Flexibility, Lower Costs, and Better Results for State, Local, and Tribal Governments

• President Obama directed Office of Management & Budget (OMB) to implement

Note: It is simply the single largest regulatory change in the last 50 years of research administration.

What is the Uniform Guidance?

Replaces eight (8) OMB circulars. As with the old federal circulars, the Uniform Guidance provides:• Maximum requirements that the federal agencies can impose• Minimum standards for awardees• Goal was to reduce fraud, waste and abuse with streamlining

policies

The Uniform Guidance currently has many names:• Uniform Administrative Requirements (UAR)• Super Circular• 2 CFR Part 200 (Federal regulations)

A-21 Cost Principles for IHE A-110 Financial Mgt Standards for IHEA-133 Single Audit RequirementsA-89 Catalog of Federal Domestic Assistance (CFDA’s) now FAINA-102 Grants with State & Local Gov.A-50 Audit Follow-up & ResolutionA-122 Cost Principles for Non-ProfitsA-87 Cost Principles for State, Local …Note: HSC is an IHE (IHE – Institution of Higher Education)

2 CFR 200

A-21

A-110

A-133

A-89

A-102

A-50

A-122

A-87

Uniform Guidance (UG): a combined, “simplified”

version of 8 circulars

What is the Uniform Guidance?

What does it apply to?

• Applies to Federal Policies related to Grants and Cooperative Agreements

• Cost and audit principles are also applicable to Federal Contracts

• Each Federal Agency will have its own implementation plans and can request deviations upon OMB approval

• Effective December 26, 2014

Uniform GuidanceHow does the UG affect HSC investigators?

What Has Changed?“The Good”

Standard 60-day lead time – Minimum number: 30 days, unless a different period is required by statute

or exigent circumstances as dictated by the agency head

• Announcement will be in a standardized format & posted – Specified summary data – Specified full text announcement data

• Proposal application forms pre-approved by OMB

Funding Opportunity Announcements (FOA)

CFR 200.203


• Voluntary committed cost-sharing is not expected in research proposals

• Cost-sharing obligations must be included in FOA• Cost-sharing may not be used as a factor in the

review of applications

Cost-Sharing

CFR 200.306


• Federal Award Identification Number (FAIN)• Terms and conditions must be spelled out

– Including deliverables (reports or other) and any milestones– Think Subawards and the reports schedule

Award Notices

CFR 200.210


Direct charging of these costs may be appropriate only if all of the following conditions are met:

1. Administrative or clerical services are integral to a project or activity;

2. Individuals involved can be specifically identified with the project or activity;

3. Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and

• Removal of “major project” requirement• Yes – you can now start including them in proposals, but be cautious!

Clerical & Administrative Salaries

CFR 200.413


• Publication Costs (Page Charges) – Page charges are still allowable costs after award end date but

before closeout (in essence, adoption of the NSF model)• Computing Devices

– Devices under $5,000 may be direct charged (allocable portion only) if essential to the performance of the Federal award. It is now considered a supply.

– Does not have to be solely dedicated to the project

Changes in Direct Costing Rules

CFR 200.461, 200.453


• Visa Costs as part of Recruiting – Short-term, travel visas (as opposed to longer-term,

immigration visas) are allowable costs – Short-term visas are issued for a specific period and

purpose and should be clearly identified as directly connected to work performed on the award

Changes in Direct Costing Rules (cont’d.)

CFR 200.463


• Software now included in definition of equipment• Rental costs, not just rental of facilities, excluded

from F&A

Procurement

CFR 200.12; 200.68


F&A improvements – 10% MTDC de minimis• Subrecipients (e.g., foreign, small businesses, school

districts, etc.) without a negotiated rate can get an automatic 10% MTDC F&A rate

• There will not be additional funding to cover existing awards

• If necessary, the HSC can still negotiate a higher rate with subrecipient

F&A on Subawards

CFR 200.331

What Has Changed?“The Bad”

• Increased focus on relationship between technical performance and expenditures

• Streams from ARRA funding • Agencies to provide clear performance goals,

indicators and milestones• Impact has yet to be determined

Technical Performance Measures

CFR 200.210


• Entertainment costs are still unallowable unless it has a specific programmatic purpose and is approved in the budget or by federal agency written approval

Changes in Direct Costing Rules

CFR 200.438; 200.456


• Purchases over $3K will require competitive bidding - Due to the significant increase in volume, turn

around on orders may be slowed- $3K includes purchase of single or multiple items (it is the total amount of the PO that applies)

Note: Based on pushback, OMB is providing a grace period. Becomes effective for the HSC on 09/01/16.

Procurement

CFR 200.320 & 318, OMB FAQ dated 08/29/14


• Standards for documentation and examples have been removed; however…

• Will not change current effort certification model• Burden still on investigators to certify their effort

Changes in Effort Certification

CFR 200.430

What Has Changed?“and the Ugly”

• Must submit, no later than 90 calendar days, all financial, performance, and other reports

• Anticipated agency implementation will limit cash draws at day 91 unless an extension is approved. NIH and NSF will be requesting an OMB exception to 120 days

Award Closeout

CFR 200.343


Fixed Amount Subawards (ideal for very small, international and clinical trials)

• Requires agency prior approval• Limited to < $150K

CFR 200.332


• Increased burdens for subaward issuance – Performance reporting must be explicitly delineated in the subaward

(Significant Principal Investigator participation will be required)– Explicit lists of mandatory and optional factors to be included in

subrecipient monitoring– New obligation for investigator to prove that he/she has

received/reviewed the subrecipient’s performance and financial reports

• Subaward invoices must be paid within thirty (30) calendar days after receipt of invoice

Subrecipient Monitoring

CFR 200.331

Internal Controls and Compliance

• Uniform Guidance uses the phrase “Internal Controls” 103 times! This implies an environment of increased scrutiny

• Here is the new financial certification:

“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)


CFR 200.415

Disclaimer

Please understand that the Uniform Guidance can, and will, be subject to “technical corrections” and UTHSCSA’s interpretation of the language may change throughout the implementation process.

Rules, Polices?

Questions about the UG

Contact

Chris Green Office of Sponsored Programs

Direct: 210-567-4938 Email: [email protected]

Documents

OMB Uniform Guidance Faculty Presentation Chris G. Green, CPA Director, Sponsored Programs