OMB Uniform Guidance Faculty Presentation Chris G. Green, CPA Director, 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 (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)

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 Guidance How 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

What Has Changed? “The Good” 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

What Has Changed? “The Good” 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

What Has Changed? “The Good” 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

What Has Changed? “The Good” 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 ,

What Has Changed? “The Good” 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

What Has Changed? “The Good” Software now included in definition of equipment Rental costs, not just rental of facilities, excluded from F&A Procurement CFR ;

What Has Changed? “The Good” 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

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

What Has Changed? “The Bad” 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 ;

What Has Changed? “The Bad” 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 & 318, OMB FAQ dated 08/29/14

What Has Changed? “The Bad” 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

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

What Has Changed? “and the Ugly” Fixed Amount Subawards (ideal for very small, international and clinical trials) Requires agency prior approval Limited to < $150K CFR

What Has Changed? “and the Ugly” 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

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) What Has Changed? “and the Ugly” CFR

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: