EDGAR 201 Steven A. Spillan, Esq. sspillan@bruman.com Brustein & Manasevit, PLLC www.bruman.com Brustein & Manasevit, PLLC © 2018. All rights reserved.

Agenda Introductions Examples of Questioned Costs Administrative Rules Financial Management Brustein & Manasevit, PLLC © 2018. All rights reserved.

EDGAR Table of Contents Part 75 Part 76 Part 81 2 CFR Part 200 Subpart D – Administrative Requirements Subpart E – Cost Principles Subpart F – Audit Requirements Guidance Brustein & Manasevit, PLLC © 2018. All rights reserved.

EDGAR Regulations - Authority General Education Provisions Act General authority of the Secretary, 20 USC 1221e-3 Authority of Secretary to adopt regulations, 20 USC 3474 Brustein & Manasevit, PLLC © 2018. All rights reserved.

ESSA v. EDGAR – who wins? Every Student Succeed Act Title Programs Program Regulations Education Department General Administrative Regulations General Education Provisions Act Uniform Grant Guidance What about state law? Brustein & Manasevit, PLLC © 2018. All rights reserved.

Questioned Costs Brustein & Manasevit, PLLC © 2018. All rights reserved.

1. Advertisement Are costs associated with advertising in media such as newspapers, radio and television, direct mail, or email allowable? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

2. Food May a 21st CCLC program use federal funds to purchase light snacks and water for a parent meeting? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

3. Food (Again) What about for a staff meeting? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

4. Food (YET Again) May a 21st CCLC program use federal funds to purchase light snacks and water for a staff meeting if the meeting is all day, in the middle of the woods and its 100 degrees outside with killer mosquitoes? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

5. Clerical Staff Yes No It Depends Can 21st CCLC funds be used to pay for salaries of clerical support staff? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

6. INCENTIVES To increase their assessment scores, a 21st CCLC program wants to give students an incentive so if a student attends after school tutoring for the year, the student will receive a gift certificate for a pizza. Is this allowable? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

7. Computer Networks Are the costs associated with an LEA’s district wide networks allowable under 21st CCLC? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

8. School Counseling Can a 21st CCLC program use federal funds to pay for a school counselor to provide counseling to all students? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

9. Security Measures to Protect Equipment Carter High School wants to purchase cameras and other related security devices to protect assistive technology and other equipment purchased with federal funds. Is this allowable? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

10. Field Trips Can a school use 21st CCLC funds for field trips? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

11. Private Schools Can a district reimburse a private school the costs of their teachers attending an academic conference related to improving student achievement? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

12. Gifts Can a district employee accept a gift from a contractor as long as it is below the micro-gratuity threshold? Yes No It Depends Brustein & Manasevit, PLLC © 2018. All rights reserved.

Administrative requirements Financial Management Brustein & Manasevit, PLLC © 2018. All rights reserved.

Financial Management Financial management system. 200.302 Payment. 200.305 Cost sharing or matching. 200.306 Program income. 200.307 Defined term: 200.80 Revision of budget and program. 200.308 Period of performance. 200.309 Record retention. 200.333 Methods for collection, transmission and storage of records. 200.335 Brustein & Manasevit, PLLC © 2018. All rights reserved.

Internal Controls. 200.303 “Must” vs. “Should” Must have controls to manage the award in compliance with federal statute, regs, and terms of the award Should have controls as established in US Comptroller’s General Standards for Internal Controls and/or Internal Control Integrated Framework (COSO) Brustein & Manasevit, PLLC © 2018. All rights reserved.

Internal Controls. 200.303 (cont.) Also “must”: Comply with requirements Evaluate and monitor compliance Take prompt action to correct noncompliance Safeguard personally identifiable information (PII) Compliance? Performance? Brustein & Manasevit, PLLC © 2018. All rights reserved.

Self Assessment. 200.328 Compliance and Performance Brustein & Manasevit, PLLC © 2018. All rights reserved.

Written Procedures = Internal Controls Compliance Supplement, Internal Controls: “Control activities are the policies and procedures that help ensure the management’s directives are carried out.” Clearly written Clearly communicated Brustein & Manasevit, PLLC © 2018. All rights reserved.

Written Procedures: Must or Should? Cash Management Procedure - 200.302(b)(6) & 200.305 Allowability Procedures - 200.302(b)(7) Managing Equipment – 200.313(d) Conflicts of Interest Policy - 200.318(c) Procurement Procedures - 200.319(c) Method for Conducting Technical Evaluations of Proposals and Selecting Recipients - 200.320(d)(3) Travel Policy - 200.474(b) Time and Effort Procedures - “essential” ED, Cost Allocation Guide Subrecipient Monitoring Procedures – required by Compliance Supplement Grant Application Procedures Record Retention Procedures Audit Resolution Procedures Program-specific Procedures ESSA, Title I Written Methodology for distributing nonfederal funds Brustein & Manasevit, PLLC © 2018. All rights reserved.

Brustein & Manasevit, PLLC © 2018. All rights reserved.

Legal Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice or a legal service.  This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct.  Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney-client relationship with Brustein & Manasevit, PLLC.  You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. Brustein & Manasevit, PLLC © 2018. All rights reserved.