New Office of Management and Budget guidelines will impact every organization that receives U.S. federal grant funds. This presentation by Bob Lloyd of Robert Lloyd Consulting Services during the 2015 NADO Annual Training Conference walks through the major components of the guidelines to explain the changes that will affect your regional development organization

1. A Primer on OMB’s “Uniform
Guidance” for Federal Awards
Presented by
Bob Lloyd
October 27, 2015
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2. OMB’s “Uniform Guidance”
• Official title: Uniform Administrative
Requirements, Cost Principles, and Audit
Requirements for Federal Awards
• Nicknames: “Super Circular”; “Omni-Circular”
• Citation: 2 CFR 200
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3. The OMB Grant Reform Process
• “Trial Balloons” 2/28/12
• Draft Guidance 2/1/13
• Final Guidance 12/26/13
• Agency Draft Rules to OMB 6/26/14
• COFAR FAQ’s (Periodically in 2014)
• Revised Guidance and Agency Implementation
(12/19/14)
• Effective Date of Uniform Guidance (12/26/14)
• Single Audit Requirements Transition (NFE FY’s
Beginning After 12/26/14
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4. Transition to New Policies
• Applicable to New Awards and New Obligations
Issued After 12/26/14
• Variations Among Federal Agencies for Awards
Issued Prior to 12/26/14
• Supersession of Previous Grants Management
Regulations 12/26/14
• Subaward Considerations
• Audit Considerations
• When in Doubt….
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5. The “Big Deals”– Significant Policy
Changes
• Pre-award Risk Assessment
• Internal Controls
--- Documentation of Personnel Expenses (PKA
Effort Reporting)
• Cost Principles
--- Indirect Cost Recognition
• Procurement of Goods and Services
• Subrecipient Management and Monitoring
• Reporting
• Audit
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6. Pre-award Risk Assessment
• By Federal Agencies (2 CFR 200.205)
--- Financial stability
--- Management systems and personnel
--- Performance history
--- Audit history
--- Federal data bases (e.g., EPLS)
• By Pass-through Entities (2 CFR 200.331(b))
--- All that…plus extent of other oversight
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7. Internal Controls
• “Establish and maintain effective internal control that
provides reasonable assurance” of compliance with
laws, regulations and award terms
• Sources of internal control guidance
--- GAO “Green Book”—Standards for Internal Control in
the Federal Government
--- COSO—Internal Control—Integrated Framework
AND
--- OMB—Part 6, Compliance Supplement for Single
Audits
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8. Internal Control Specifics
• Compliance
• Self monitoring and evaluation
• Corrective action
• Protection of personally identifiable
information
• Bonding
• System standards
• Documentation of personnel expenses
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9. Documentation of Personnel Expenses
• “Time and effort reporting”
• Key features
--- After the fact determination
--- Full disclosure of all effort
• Internal control design features
--- Timely completion
--- Credible signatures
• Substitute systems permitted
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10. Cost Principles
• 2 CFR 200, Subpart E (200.400-475)
• Basic policies
• General tests of allowability (200.403)
• Indirect cost recovery basics and “cross-walks”
to the Appendices
• “Selected” items of cost
• ‘Failure to mention…”
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11. Indirect Cost Recognition
• By federal agencies (2 CFR 200.414(c))
--- Limited exceptions
• By pass-through entities (2 CFR 200.331(a)(4))
--- Accept federally negotiated NICRA
--- Negotiate a rate with subrecipient
----- Likely limited applicability
--- Allow de minimis rate (10% of MTDC)
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12. Key Changes—Selected Items of Cost
• Effort reporting
• Conferences
• Depreciation
• Equipment vs. materials and supplies
• Proposal costs
• Rental costs
• Training and education
• Travel
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13. Subaward vs. Contract
• Distinction reaffirmed (2 CFR 200.330)
--- The term “vendor” is gone
--- Guidance from Circular A-133, __.210 has
migrated to 2 CFR 200.330
--- Key concept: assistance vs. procurement
--- Case-by-case determination must be made by
pass-through entity
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14. Procurement of Goods and Services
• Policies for States
• Policies for Everyone Else
--- 1 Year Grace Period for IHE’s and NPO’s
• Required Features
--- Standards of Conduct
--- Acquisition Planning
--- Recipient Responsibility
--- Competition
--- Solicitation
--- Acceptable Methods
--- Cost or Price Analysis
--- Source Evaluation and Selection
--- Contract Award and Clauses (2 CFR 200 Appendix II)
--- Contract Administration
--- Procurement Records
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15. Subrecipient Management and
Monitoring
• Case-by-Case Determination (2 CFR 200.330)
• Risk Assessment (2 CFR 200. 331(b))
• Subaward Agreement (Data Elements and
Features—2 CFR 200.331(a)
• Subrecipient Monitoring (2 C FR 200.331(d)
--- Mandatory Steps
--- Discretionary Steps
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16. Reporting
• Mandatory disclosures (2 CFR 200.112-113)
• Financial reporting (2 CFR 200.327)
--- SF 425
--- Other OIRA sanctioned reporting
• FFATA subaward reporting (2 CFR 170)
• Performance reporting (2 CFR 200.328)
--- Extraordinary events
• Close-out reporting (2 CFR 200.343)
• Reporting on real property (2 CFR 200.329)
• Audit reporting package (2 CFR 200.512)
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17. Audit
• Say a long good-bye to OMB Circular A-133
• Say hello to Subpart F of 2 CFR 200
• Key changes
--- Dollar expenditure trigger
--- Audit procurement
--- Determination of major programs
--- Reporting of audit findings
----- Attributes
----- Nomenclature
--- Criteria for low-risk auditee
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18. Getting with the Program
• Train up employees
• Review and revise, as necessary, policies and procedures
--- Financial management
--- Procurement
--- Property management
--- Subaward management
--- Records retention and access
--- Reporting
--- Human resources
• Recognize that regulatory changes create audit vulnerabilities
• Be prepared for funding agencies and auditors who don’t yet know
the new rules
• Use the “lingo” in the new rules in your policies and conversations
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19. Presenter Contact Information
Bob Lloyd
Consultant on Public Management and
Government Relations
Telephone: (864) 235-8680
Fax: (864) 235-1465
E-mail: consultlloyd@aol.com
On the web: www.federalfundmanagement.com
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