csbg

OMB Circulars Governing UPO CSBG Delegate Grant Awards : 

OMB Circular A-110 - Uniform Administrative Requirements for Awards and Subawards to Institutions of Higher Education, Hospitals, Other Nonprofit Organizations, and Commercial Organizations (2 CFR 215) OMB Circular a-122- cost principles for non-profit organizations (2 CFR 230) OMB Circular A-133 – Audits of States, Local Governments. And Non-Profit Organizations OMB Circulars Governing UPO CSBG Delegate Grant Awards

OMB REQUIREMENTS : 

OMB REQUIREMENTS Important for UPO Delegate Agency board members, executives and financial staff to read the circulars and understand the requirements. Submit annual audits to UPO upon completion of audit Single audits for Delegates receiving a cumulative total of $500,000 or more in Federal dollars from all funding sources Ensure that cost are reasonable 2

What are CSBG Delegates responsible for … : 

What are CSBG Delegates responsible for … Safeguarding all assets Spending funds in accordance with the authorized purpose Developing and implementing systems to ensure proper stewardship of funds Financial management systems Procurement systems Time and effort reporting Monitoring activities Adherence to terms and conditions of award 3

Federal Compliance Requirements : 

Federal Compliance Requirements Code of Federal Regulations (CFR) 42 CFR Parts 74 Public Welfare, Administrative Requirements 2 CFR 215 2 CFR 230 4

Federal Compliance Requirements : 

Federal Compliance Requirements OMB CIRCULAR A-110 Uniform Administrative Requirements for Grants and Agreements awarded to Universities, Hospitals, and Other Non-Profit Organizations (These include pre-award and post-award requirements, budget standards, procurement, financial & programmatic reporting) 5

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS SUBPART A: GENERAL Sec. 215.1 Purpose a. Uniformity b. Federal agencies shall not impose additional or inconsistent requirements (except statute, approved deviation, or special award condition) c. Delegates that implement federal programs for states are also subject to state requirements Sec. 215. 2 Definitions (41) a. Accrued expenditures – “received” “performed” b. Award – “support or stimulation to accomplish a public purpose” c. Obligation – orders placed, contracts awarded, services received that “require payment…during the same or a future period” 6

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS d. Project costs – “accomplishing the objectives of the award during the contract period” Sec. 215.3 Effect on other issuances- superseded except required by statute or authorized deviation Sec. 215.4 Deviations a. OMB for classes of grants or recipients, only in unusual circumstances b. Federal awarding agencies may apply more restrictive requirements to a class of recipients when approved by OMB c. Exceptions on a case-by-case basis may also be made by federal awarding agencies Sec. 215.5 Subawards – shall be applied by recipients to subrecipients 7

OMB ADMINSTRATIVE REQUIREMENTS : 

OMB ADMINSTRATIVE REQUIREMENTS SUBPART B: PRE-AWARD REQUIREMENTS Sec. 215.10 Purpose Sec. 215.11 Preaward policies Sec. 215.12 Forms for applying for Federal assistance Sec. 215.13 Debarment and Suspension “a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal Department or Agency; 8

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS b. have not within a 3-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. are not presently indicted or otherwise criminally 9

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and d. Have not within a 3-year period preceding this application/proposal had one or more public transactions (Federal, state, or local) terminated for cause of default. Should the applicant not be able to provide this certification, an explanation as to why should be placed after the assurances page in the application package.” 10

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Sec. 215.14 Special award conditions a. History of poor performance b. Not financially stable c. Management system does not meet standards d. Not conformed to terms and conditions of a previous award e. Not otherwise responsible f. May impose additional requirements In writing, reason why, nature of corrective action needed, time allowed for completing corrective action, 11

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Method for requesting reconsideration, any special condition shall be promptly removed once corrected Sec. 215.15 Metric system of measurement Sec. 215.16 Resource Conservation and Recovery Act-“preference to purchase of products containing recycled materials” Sec. 215.17 Certifications and Representations – submitted annually and signed by a responsible official 12

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS SUBPART C: POST-AWARD REQUIREMENTS Financial and Program Management Sec. 215.20 Purpose of financial and program management – prescribe standards for financial management systems etc. Sec. 215.21 Standard for financial management systems a. Relate financial data to performance data and develop unit cost information whenever practical b. Accurate, current and complete disclosure of financial results 13

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS c. Records that identify source and application of funds d. Effective control over and accountability for all funds, property, and other assets e. Comparison of outlays with budget f. Written procedures to minimize time between transfer and disbursement of funds g. Written procedures for determining reasonableness, allocability and allowability of costs in accordance with cost principles h. Accounting records, including cost accounting records that are supported by source documentation 14

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Sec. 215.22 Payment a. Minimize time between transfer and disbursement b. Payment in advance c. Reimbursement d. Working capital advances e. Use Federal funds last (repayments , interest earned) f. Withholding of payments g. Use of banks and other institutions as depositories Not require separate accounts, insured accounts, 15

OMB ADMINSTRATIVE REQUIREMENTS : 

OMB ADMINSTRATIVE REQUIREMENTS Encourage use of minority-owned and women-owned banks (i.e. 50% ownership), interest bearing accounts unless Delegate receives less than $120,000 award per yr., the best not expected to earn interest in excess of $250 per yr., or depository requires a high average or minimum balance not feasible within the expected Federal and non-federal cash resources, and keep $250 per yr. and remit annually to PMS Sec. 215.23 Cost sharing or matching a. Criteria- verifiable from Delegates records, not included as contributions to another Federally-assisted 16

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS project or program, necessary and reasonable for accomplishment of project or program objectives, allowable under cost principles, not paid by Federal Government under another award , except where authorized by Federal statute, in approved budget when required, conform to other provisions in the circular b. Unrecovered indirect costs may be included with prior approval of Federal awarding agency c. Values for contributions of services and property in accordance with cost principles d. Volunteer services- integral and necessary, rates for 17

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similar work in the organization or labor market, fringe benefits may be included that are reasonable, allowable and allocable, employer provided services (rate of pay plus paid fringe benefits), donated supplies (reasonable, fair market value, equipment and buildings (independent appraiser, fair market value, fair rental value, ) Sec. 215.24 Program income a. Retained by Delegate – added to funds committed (required approval), finance the non-federal share (requires approval), deducted from project costs (automatic) 18

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS b. No obligation to federal government for program income earned after end of project period c. Costs incident to generation of program income may be deducted from gross income to determine program income unless charged to award Sec. 215.25 Revision of budget and program plans(financial expression of project or program as approved during the award process) a. Prior approval required for- change in scope or objective (significant rebudgeting $100,000 Federal share exceed 25% of the total approved budget for budget 19

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS period or $250,000, whichever is less and purchase of a unit of equipment exceeding $25,000), change key person specified in award, 3 month absence or 25% reduction in time of approved project director, additonal Federal funding, items in cost principles requiring prior approval, transfer of funds allotted for training allowances, and subcontracting out of any work under an award, unless described in application b. Special waiver rules- incur pre-award costs 90 days prior to award with prior approval of Federal awarding agency, one time extension from expiration date up to 12 20

OMB ANDMINISTRATIVE REQUIREMENTS : 

OMB ANDMINISTRATIVE REQUIREMENTS months, unless award prohibits, requires additional funds, involves any change in objectives or scope of project, carry forward unobligated balances to subsequent funding periods c. Notify federal government when funds expected to exceed needs by $5,000 or 5% of federal award d. Federal agency respond in 30 days or notify when to expect decision Sec. 215.26 Non-Federal audits a. Single Audit Act of 1996 b. A- 133 – States, Local Governments and Non-profits 21

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Sec. 215.27 Allowable costs – A-122 Non-profits Sec. 215.28 Period of availability of funds- allowable costs from obligation incurred during the funding period and any authorized pre-award costs Sec. 215.29 Conditional exemptions – from OMB administrative requirements and cost principles circulars, Federal non entitlement programs, prerequisite State adopt written fiscal and administrative requirements for expending and accounting for all funds 22

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Property Standards Sec. 215.30 Purpose of property standards. – uniform standards governing management and disposition of property Sec.215.31 Insurance- same as for property owned by Delegate Sec. 215.32 Real Property a. Title vests in Delegate b. Not encumber without prior approval of Federal awarding agency 23

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS c. Prior approval to use in other Federal projects/programs d. Delegate request disposition instructions – retain title, directed to sell and pay percentage to Federal Government, directed to transfer title Disposition requirements Sec. 215.33 Federally-owned and exempt property a. Title vests in Federal Government b. Submit annual inventory c. Report to Federal Government when no longer needed 24

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS d. Declared excess and reported to GAO, unless statutory authority to dispose by alternative methods e. Exempt property option to vest title in Delegate Sec. 215.34 Equipment a. Title vests in Delegate b. Not use for services for a fee if less than equivalent, unless authorized by Federal Statute c. Use in program as long as needed d. Use in other Federal programs e. Available on other programs if not interfere; user 25

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS charges as program income f. Trade in or sell and apply to replacement equipment with prior approval g. Property management standards- equipment records; physical inventory reconciled with equipment records once every 2 yrs., verify existence, utilization, need; control system to prevent loss, damage or theft; adequate maintenance procedures; and proper sales procedures h. Disposition- fair market value over $5,000; compensate Federal Government and use in other programs; sell with approval (120 days, reimburse Feds, 26

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS keep $500 or 10%) Sec.215.35 Supplies and other expendable property a. Title vest in delegate b. Residual inventory at termination of $5,000 or more- reimburse Federal Government Sec.215.36 Intangible property a. May copyright (i.e. include acknowledgement, disclaimer and press release) b. Federal Government may reproduce, publish or use, and authorize others c. Applicable patent and invention regulations 27

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Sec. 215.37 property trust relationship a. Held in trust b. Shall not be encumbered without prior approval c. Require Delegate to record liens on real property Procurement Standards Sec.215.40 Purpose a. Supplies and other expendable property b. Equipment c. Real property d. Other services 28

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Sec.215.41 Recipient responsibilities a. Do not relieve of contractual responsibilities b. No recourse to Federal Government Sec.215.42 Codes of Conduct a. Written standards (applicable to officers, employees, consultants, governing board members) b. Conflict of interest c. Disciplinary actions Sec.215.43 Competition 29

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS a. Maximum extent practicable, open and free competition b. Organizational conflict of interest c. Restriction against developers of specifications, requirements, etc. d. “Most advantageous to the Delegate, price, quality and other factors considered” Sec.215.44 Procurement procedures a. Written – avoid purchasing unnecessary items, lease purchase analysis, solicitations provide for- clear and accurate description, requirements to fulfill and factors 30

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS to be evaluated, description of technical requirements, specific features if “brand name or equal” are used, acceptance, if feasible, of metric, preference, if feasible, of recycled b. Small business, minority-owned firms, women’s businesses – c. Type of procuring instruments (fixed price contract, cost reimbursable contracts, purchase orders and incentive contracts) for the best interest of the program d. Responsible contractors with potential to perform –integrity, record of performance, financial & technical 31

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS accessibility to other necessary resources e. Documents for Federal review, when: procedures or operation fail to comply; exceed small purchase ($100,000) without competition or one bid/proposal; exceed small purchase ($100,000) specifies a “brand name” product; exceed small purchase ($100,000) and award to other than low bidder under a sealed bid; and contract modifications changes scope or increase contract amount more than small purchase ($100,000) threshold Sec.215.45 Cost and price analysis 32

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS a. Every procurement – made and document b. Price analysis – comparison of prices c. Cost analysis – review and evaluation of elements Sec.215.46 Procurement records a. Excess of small purchase ($100,000) threshold Basis of selection Justification if lack of competition Basis for award cost or price Sec.215.47 Contract administration 33

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS a. System shall be maintained Contractor conformance Adequate and timely follow-up Evaluate contractor performance Sec.215.48 Contract provisions a. Provisions to define a sound and complete agreement b. Excess of small purchase threshold Remedies Termination 34

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Construction bid guarantees Access to records c. All contracts – contract provisions in Appendix A Reports and Records Sec.215.50 Purpose of reports and records – procedures for monitoring and reporting on the Delegate’s financial and program performance and necessary reporting forms a. Delegate responsible for managing and monitoring b. Delegate monitor to ensure audit requirements met c. Performance reports 35

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS d. Federal government may make site visits Sec.215.52 Financial reporting a. Financial Status (SF 269) b. Report of Federal Cash Transactions (SF 272) Sec.215 Retention and access requirements for records a. 3 yrs. from final expenditure report (or annual report for renewal awards) b. Litigation, claim or audit – retain unit resolved and final action taken after 3 yrs c. Real property and equipment – 3 yrs after final disposition 36

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS d. Transfer of records to Federal Government e. Copies OK is Feds authorize f. Access to records and personnel for interview and discussion as long as records retained g. Federal government not restrict public access, unless required by statute h. Indirect cost rate proposals, cost allocation plans, etc. – 3 yrs. from date of submission or 3 yrs. from end of period if not submitted 37

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS Termination and Enforcement Sec.215.60 Purpose of termination and enforcement – set uniform suspension, termination and enforcement procedures Sec. 215.61 Termination a. By Feds – materially fails to comply b. By Feds with consent c. By Delegate with written notification Sec.215.62 Enforcement 38

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS a. Remedies – withhold cash payments, disallow costs, wholly or partly suspend or terminate, withhold future awards, other legal remedies b. Hearings and appeals c. Effects of suspension and termination (costs) d. Relationship to debarment and suspension After the Award Sec.215.70 Purpose – closeout procedures and other procedures for subsequent disallowances and adjustments Sec.215.71 Closeout Procedures 39

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS a. Final report submitted in writing within 90 days, unless extended b. Liquidate all obligations under the award not later than 90 days after funding period or date of completion as specified Sec.215.72 Subsequent adjustments and continuing responsibilities a. Closeout doesn’t affect right to disallow and recover costs b. Obligation to return funds c. Audit requirements in Sec. 215.26 40

OMB ADMINISTRATIVE REQUIREMENTS : 

OMB ADMINISTRATIVE REQUIREMENTS d. Property management in Sec.215.31 – Sec.215.37 e. Record retention in Sec.215.53 Sec.215.73 Collection of amounts due a. Repay within a reasonable period b. Administrative offset against other requests for reimbursements c. Withholding advance payments d. Other action as permitted by statute e. Federal Government shall charge interest 41