SPEARWORKSHOP

PRESENTED BY:ANGIE ROWE & CATHI BASS

UNIFORM GUIDANCE: ADMINISTRATIVE REQUIREMENTS,

COST PRINCIPLES AND AUDIT REQUIREMENTS

Topics

Definition of Uniform Guidance Basic Layout Provide new and/or updated information for

Administrative Requirements (formerly A-110) Cost Principles (formerly A-21) Audit Requirements (formerly A-133)

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What is the Uniform Guidance?

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - 2 CFR 200

It is the Office of Management and Budget’s (OMB) consolidation of their circulars for costing, administration and audit of Federal awards It replaces 8 circulars and applies to universities, state

and local governments, nonprofits, native tribes It was issued on December 26, 2013 It was effective on December 26, 2014

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2 CFR 200 – Basic Layout

6 Subparts A through FSubpart A, 200.XX – Acronyms & DefinitionsSubpart B, 200.1XX – GeneralSubpart C, 200.2XX – Pre Award - FederalSubpart D, 200.3XX – Post Award – RecipientsSubpart E, 200.4XX – Cost Principles Subpart F, 200.5XX – Audit 11 Appendices - I through XI

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Subpart A – Acronyms & Definitions §200.00 - 200.99

§200.00 - Acronyms§200.10 - 200.99 - DefinitionsUse of “should” and “must”

Should = best practices/recommended Must = required

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§200.68 Modified Total Direct Cost

Modified Total Direct Cost (MTDC) means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and subawards up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award).

MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

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§200.74   Pass-through entity

Pass-through entity means a non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program.

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§200.75 Participant support costs

Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects.

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Subpart B – General Provisions §200. 100-113

§200.100 PurposeThis part establishes uniform administrative

requirements, cost principles, and audit requirements for Federal awards to non-Federal entities

Federal awarding agencies must not impose additional or inconsistent requirements

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§200.101 Applicability

NEW table for applicability by types of award T&C flow down to subrecipients Subparts C-D are not applicable to

Cost-reimbursement contracts and subcontracts awarded under the Federal Acquisition Regulations (FAR)

Fixed price contracts and subcontracts awarded under the FAR whenever cost analysis is performed

The FAR serves as the administrative requirements

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§200.110 Effective Date

Agency implementation effective 12/26/14 Applies to awards issued after 12/26/14

COFAR FAQs .110-7 and .110-12 specify that funding increments on existing awards, issued post 12/26/14, may be subject to the UG at the agency’s discretion; if the amendment is subject to the UG, it will be issued with modified terms and conditions

Applies to audits for FY beginning after 12/26/14

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§200.112 Conflict of interest

NEW! Applies to procurement activities Federal agencies must establish COI policies NSF and NIH already meet the new standard;

no changes EPA’s COI is problematic for IHEs Grantees must disclose in writing any potential

COI according to the agency’s requirements

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Subpart C – Pre-Federal Award Requirements §200.200 – 200.213

§200.201, Grant agreements Fixed amount awards are allowed -NEW

§200.202/203, Notice of funding opportunities –NEW Provides standards for information needed in

each funding opportunity Agencies must generally post opportunities at

least 60 calendar days prior to due date, but… No less than 30 calendar days

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§200.205 Agency review of risk posed by applicants

Must have framework for evaluating risks Review may include:

financial stability; quality of management systems and ability to meet the

management standards prescribed; performance history; audit findings and reports; and/or ability to implement statutory, regulatory, or other

requirements

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§200.210 Information contained in a Federal award

General Federal Award Information No more DUNS # - replaced by Unique Entity Identifier Unique Federal Award Identification Number (FAIN) Indication if award is R&D Indirect cost rate

General Terms & Conditions May be incorporated by reference

Specific Terms & Conditions, if applicable Federal Award Performance Goals Any other information required by the Federal

agency

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Subpart D – Post Federal Award Requirements §200.300-345

Grantee Requirements – (former A-110 requirements) Ensure FSU’s compliance at award level Ensure SRA procedures incorporate rules regarding

Rebudgeting Prior approvals

Ensure compliance in areas outside of SRA Financial reporting Purchasing – Procurement

standards (delayed implementation until fiscal year ending in 2017 )

Controller’s Office – Financial and Property standards

Human Resources – Personnel standards

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Post Federal Award Requirements

§200.301, Performance Management – Use standard forms (e.g., RPPR for research awards) Must relate financial data to performance Feds are to provide clear performance goals,

indicators and milestones §200.303, Internal Controls

Should follow GAO’s Green Book and COSO standards

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§ 200.308 Revision of budget and program plans

Agency approval is required for the following: Change in the scope or objectives of project Change in a key person specified in application Disengagement of Project Director or PI from the project

for more than 3 months or a 25% reduction in time devoted to project

Transfer of funds budgeted for Participant Support costs to other categories of expense

Transferring out of any work under a federal award (unless specified in application)

Changes in the approved cost-sharing

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§ 200.308 Revision of budget and program plans

The federal agency may waive approvals for the following:

Incur 90 days pre-award costs Initiate a one-time extension of the period of

performance by up to 12 months (some conditions apply)

Carry forward unobligated balances to subsequent periods of performance

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§ 200.308 Revision of budget and program plans

(4) For Federal awards that support research, unless the Federal awarding agency provides otherwise in the Federal award or in the Federal awarding agency’s regulations, the prior approval requirements described in paragraph (d) are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (d)(2) applies:

(i) The terms and conditions of the Federal award prohibit the extension.

(ii) The extension requires additional Federal funds.

(iii) The extension involves any change in the approved objectives or scope of the project.20

Post Federal Award Requirements

§200.313 Equipment Property standards (States versus other grantees) §200.314 Supplies Computing devices (<$5K) are included as “supplies”-

NEW §200.320 Procurement Standards –NEW for

universities and Non Profits (delayed implementation until fiscal year ending in 2017) Modeled after A-102: State uses own policies Others uses procurement standards in sections §200.317 -

326

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Subrecipient Monitoring & Management

More prescriptive requirements Perform a risk assessment of the subrecipient List of required elements in the subaward terms Establish a monitoring plan for the subrecipient

Financial review Programmatic review

Must use subrecipient’s negotiated F&A rate, negotiate with subrecipient, or provide a 10% “de minimis” rate

Possibility of delays in issuing subawards

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§200.330   Subrecipient and contractor determinations

The pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor.

The agency may supply and require recipients to comply with additional guidance to support these determinations

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Subrecipients

A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient.

Characteristics of a subrecipient:

(1) Determines who is eligible to receive what Federal assistance;

(2) Has its performance measured in relation to whether objectives of a Federal program were met;

(3) Has responsibility for programmatic decision making;

(4) Is responsible for adherence to applicable Federal program requirements specified in the Federal award; and

(5) In accordance with its agreement, uses the Federal funds to carry out a program for a public purpose specified in authorizing statute.

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Contractors

A contract is for the purpose of obtaining goods and services for the non-Federal entity's own use and creates a procurement relationship with the contractor.

Characteristics of a contractor:

(1) Provides the goods and services within normal business operations;

(2) Provides similar goods or services to many different purchasers;

(3) Normally operates in a competitive environment;

(4) Provides goods or services that are ancillary to the operation of the Federal program; and

(5) Is not subject to compliance requirements of the Federal program as a result of the agreement, though similar requirements may apply for other reasons.

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§200.331 Requirements for pass-through entities

Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring, looking at:

The subrecipient’s prior experience with the same or similar subawards

The results of previous auditsWhether the subrecipient has new personnel or

new/changed systemsThe extent and results of Federal awarding agency

monitoring

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§200.331 Requirements for pass-through entities

Monitor the activities of the subrecipient to ensure that the subaward is used for authorized purposes, and that subaward performance goals are achieved.

Monitoring must include:

1) Reviewing financial and performance reports

2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies detected through audits, on-site reviews, and other means

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Subrecipient Monitoring

Depending upon the assessed risk posed by the subrecipient, the following monitoring tools may be used to ensure proper accountability and compliance:

1) Providing subrecipients with training and technical assistance on program-related matters; and

2) Performing on-site reviews of the subrecipient's program operations

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§200.343 Closeout

No stated change for recipient All reports due “no later than 90 calendar days after

the end date of the period of performance” New emphasis on progress reports

New circumstances NSF and NIH have issued in their policy and procedures that

grantees must submit final financial disbursements no later than 120 days after the grant ends. FSU will still require the reporting to be done within 90 days.

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Overview of Cost Principles: Subpart E §200.4XX

For any cost to be allowable under a federal award, it must:1) Be necessary and reasonable for the performance of

the award and allocable thereto;2) Conform to any limitations or exclusions set forth in

applicable regulations or in the award itself; 3) Be consistent with policies and procedures that

apply uniformly to both federally-financed and other FSU activities; and

4) Be accorded consistent treatment.

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§200.413 Direct and Indirect Costs

200.413, Direct Costs - Direct costs are those costs that can be identified specifically with a particular Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

The salaries of administrative & clerical staff should normally be treated as indirect costs. 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 projects or activity

3) Such cost are explicitly included in the budget or have the prior written approval of the Federal awarding agency

*Integral is defined as essential to the project’s goals and objectives, rather than necessary for the overall operation of the institution.

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Direct and Indirect Costs

200.414, Indirect Costs – are also known as Facilities and Administration (F&A) costs

FSU indirect cost rate is varied On campus – 52% Off campus – 26% Mag Lab – 70%

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§200.420-475 General Provisions for Selected Items of Cost

Considerations for selected items of cost200.421 Advertising and public relations –

Recruitment of Personnel allowable200.422 Advisory Councils – unallowable200.423 Alcoholic Beverages - unallowable200.424 Alumni activities – unallowable200.429 Commencement and convocation costs - unallowable

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§200.420-475 General Provisions for Selected Items of Cost

200.430, Compensation –personal services Internal controls are KEY

200.430(i) –9 standards for documenting personnelSalaries and wages must be based on records that accurately

reflect the work performedRecords must be supported by a system of internal controlsUG has strengthened the documentation requirement

for institutional policy. They should/must be: Available and easily accessible Be up to date and consistent Document internal controls and roles/responsibilities for all parties Address specific payroll/compensation issues Be supported by monitoring to confirm compliance

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§200.420-475 General Provisions for Selected Items of Cost

200.431, Compensation –Fringe Benefits 200.432, Conferences

Allowable Costs are: rental of facilities, speakers’ fees, costs of meals and refreshments (specifically approved in award budget), local transportation

200.438 Entertainment Costs – unallowable 200.439 Equipment and other capital

expenditures – special purpose equipment are allowable as direct cost

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§200.453 Materials & Supplies; Computing Devices

Computing devices costing less than $5,000 that are essential and allocable may be direct charged

They may be charged 100% (in rare circumstances) to an award or may be allocated to several awards

While no prior agency approval is required, computing devices should be itemized in the proposal budget

If the computing device is not in the budget, an IT Approval Form will have to be submitted (DSR form 20)

In addition, the project must not have reasonable access to other devices or equipment that can achieve the same purpose

Devices may not be purchased for reasons of convenience or preference

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§200.75 / 200.456 Participant Support Costs

Participant support costs are direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to, or on behalf of, participants or trainees (but not employees) in connection with conferences or training projects. These costs must now be accepted by agencies as

allowable costs, but still require prior agency approval. These costs are excluded when calculating the Modified

Total Direct Costs (MTDC) to determine the overall project’s F&A costs.

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§200.461 Publication & Printing Costs

Publication costs for electronic and print media, including distribution, promotion, and general handling are allowable

Costs of publication or sharing of research results that are incurred outside the period of award performance are allowable and may be charged before project closeout, even if the project has ended

These costs should be included in the budget

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§200.463 Visas, Short-term

Short-term visas (as opposed to longer-term immigration visas) are issued for a specific period and purpose, and therefore can be clearly identified as directly connected to recruitment of personnel for a federal award

These costs may be directly charged to a federal award, if they are critical and necessary for the completion of the project

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General Provisions for Selected Items of Cost

200.469 - Student Activity costs – Unallowable 200.472 - Training and education costs –

Allowable 200.473 - Transportation costs – Allowable 200.474 - Travel costs – Allowable

Temporary dependent care costs above and beyond regular dependent care that directly results form travel to conferences is allowable provided that: The costs are consistent with the non-federal entity's

documented travel policy for all entity travel. FSU’s travel policy doesn’t include dependent care therefore

it is unallowable on Federal grants.

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Subpart F - Audit Requirements§200.5XX

Strengthens oversight and focuses audits on areas of greatest risk of waste, fraud, and abuse of taxpayer dollars

It improves transparency and accountability by making audit reports available to the public online, and

Encourages Federal agencies to take a more cooperative approach to audit resolution

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Subpart F - Audit Requirements§200.5XX

Basic Structure of Single Audit Process Unchanged Audit threshold (200.501) Subrecipient vs. Contractor (200.501(f) & 200.330) Biennial (200.504) & Program-specific (200.507) audits. Non-Federal entity selects auditor (200.509) Auditee prepares financial statements & SEFA(200.510) Audit follow-up & corrective action(200.511 & 200.521) 9 month due date (set in law) (200.512(a)) Reporting to Federal Audit Clearinghouse (200.512) Major programs determined based on risk (200.518) Compliance Supplement overall format (Appendix XI)

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Recent Federal Audit –National Science Foundation

Audit occurred Sep 2014 – Sep 2015 $166 million costs were audited during the audit period of

April 1, 2010 through March 31, 2013 $568,130 in questioned costs (.3% of total audited)

$444,966 - personnel charges$96,702 – equipment, material and maintenance charges$14,090 – computer and parking charges$8,862 – travel and supplies$3,510 – expenditures near award expiration date

FSU is currently in the audit resolution phase with NSF

NSF Audit Questions

Please explain why this purchase was necessary for and how it benefited the award.

Why was this transfer necessary and how did it benefit the award?

Please provide the reason for the transfer and why it was necessary so late in the award.

What was the budget amount and the remaining balance at the time of the transfer? Was there a cost overrun on the award transferred to or from?

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NSF Audit Questions

Please explain why this equipment was not included in the NSF proposal budget.

How did this equipment purchase benefit the award?

Was this equipment used exclusively on this NSF award?

If allocated, please provide the allocation methodology and a list of the other projects in the allocation?

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NSF Audit Questions

Please explain why this travel was not included in the NSF proposal budget.

Why was this travel necessary for the award? If allocated, please provide the allocation

methodology and a list of the other projects in the allocation?

How did this travel benefit the award given the limited time remaining on the award?

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QUESTIONS

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