Uniform Guidance April 21, 2014 Sara Bible Office of the Vice Provost and Dean of Research

Uniform Guidance 2 CFR 200 A-21 A- 110 A- 133 A-89 A- 102 A-50 A- 122 A-87 2

Uniform Guidance: Subparts Subpart A – Acronyms and Definitions Subpart B – General Provisions Subpart C - Pre-award Requirements & Contents of Federal Awards Subpart D – Post Federal Award Requirements Subpart E – Cost Principles Subpart F – Audit Requirements Appendices 3

Uniform Guidance: Implementation Effective/applicability date – Uniform implementation date of 12/26/14 for all Subparts, except Subpart F, which will be effective the first FY beginning after 12/26/14 – Applicable for new awards and for incremental funding awarded on or after 12/26/14 4

Issues with Implementation Federal agencies issue draft Implementing Regulations to OMB by June 26, 2014 – OMB reviews – 60 day public comment – may apply – Agencies review comments and may make changes Requests for Cost Accounting “changes” due six months prior to intended use – Negotiate “accounting changes” with Office of Naval Research (ONR) Revise policies, procedures and training Plan and implement system modifications, change in Chart of Accounts (new expenditure types, flags, etc.) 5

2014 Q32014 Q42015 Q12015 Q22015 Q32015 Q42013 Q Q12014 Q2 Uniform Guidance: Implementation Federal agencies must implement the policies and procedures applicable to Federal awards by promulgating a regulation to be effective by 12/26/14. Audit Requirements will be effective for fiscal years beginning on or after 12/26/14. Federal agencies must submit draft implementing regulations to OMB by 6/26/14. Uniform Guidance Issued by OMB on 12/26/13. Federal agencies draft implementing regulations Federal agencies coordinate under OMB's guidance to issue regulations or OMB-reviewed guidance in unison IHEs must comply with the UG for all awards and ammendments received on or after 12/26/14. Federal agencies issue regulations in unison sometime before 12/26/14 Proposals submitted by IHEs to Federal agencies with start dates after 12/26/14 to include applicable UG requirements. IHEs review, draft and implement policies and procedures to comply with UG

Funding Opportunity Announcements (FOA) Standard minimum 60 day lead time – Minimum number of days will be 30 unless a different period is required by statute or exigent circumstances as dictated by the agency head Announcement will be in a standard format & posted – Specified summary data – Specified full text announcement data Proposal application forms pre-approved by OMB Create a unique, government-wide identifier number – “FAIN” for Federal Award Identification Number (e.g., for NIH, R01-GM123456) Terms and conditions are spelled out – Including deliverables (reports or other) and any milestones Award Notices 7

Cost Sharing Voluntary committed cost sharing is not expected in research proposals Cost sharing obligations must be included in Funding Opportunities Announcements Cost sharing may not be used as a factor in the review of applications. OMB clarification on voluntary uncommitted cost sharing (VUCS) still in effect. – Do not need to track or record VUCS Stronger certification language reminds signatories of statutory penalties for false certifications Increased focus on obligation to relate progress/ performance to per-unit cost where possible – Seeking OMB FAQ to confirm that the Research Performance Progress Report (RPPR) will meet this requirement Performance Measurement (Financial and Performance Reporting) 8

Compensation – Personal Services Changes are promising but not yet entirely clear – Eliminated the term “certification” – Eliminated the A-21 specific examples of methods acceptable for effort validation – Continues the flexibility that allows short term (1-2 months) fluctuations in workload without need to repeatedly adjust payroll allocations – Requires strong structure of internal controls – Requires after-the-fact validation that the estimates are accurate if estimates are used up front – Charges must still be based on percentage distribution of total institutional base salary activities – OMB confirmed that memo clarifying Voluntary Uncommitted Cost Sharing (VUCS) is still in effect VUCS does not need to be tracked for Payroll Distribution Certification Effort on sponsored project can exceed charge to sponsor Charge to sponsor cannot exceed effort on sponsored project 9

Conflict of Interest Requirements New obligation for every federal agency to have COI regulations in place and require reporting for “potential” conflicts – Unclear how significant an impact this will have – Federal agencies will have their own implementation – may or may not require all potential conflicts to be reported Recipients may receive fixed price awards only if they will “realize no increment above actual cost” – Unclear if this is intended to include minor residual balances on fixed price awards Restriction on Profit 10

Subawards & Subrecipient Monitoring F&A improvements – Sponsors (agency and pass-through) obligated to honor our negotiated F&A rate – Subrecipients (e.g., foreign, small businesses, school districts, etc.) without a negotiated rate can get an automatic 10% MTDC F&A rate Increased burden for vendor vs. subrecipient classification – New option for each federal agency to require us to document how we decided each transaction is a subaward versus a vendor agreement Increased burdens for subaward issuance – New obligation to obtain federal agency prior approval before using a fixed price subawards (common for foreign subs, clinical trials, and small entities) – New limit on size of fixed price subawards ($150K) – New mandatory list of data elements that have to be included in each subaward – Clarification that if you want reports from your subrecipient, you must include the requirement in your subaward – Increase in number of subrecipients without audit reports (threshold raised from $500K per year in federal expenditures to $750K) 11

Subawards & Subrecipient Monitoring (Con’t) Increase/decrease in burden in subaward risk assessment – Pass-through entities authorized to use Federal Audit Clearinghouse to verify audit reports for single audit entities (instead of separately collecting reports or certifications) – Explicit obligation to assess risk of each potential subrecipient, with list of factors to consider Increased subrecipient monitoring burdens – Explicit lists of mandatory and optional factors to be included in subrecipient monitoring – New obligation to be able to prove that you received/reviewed your subrecipient’s performance and financial reports 12

Changes in Direct Costing Rules Administrative and Clerical Salaries – Can be direct charged under certain circumstances (services provided are integral to the award, specifically identified with the activity, explicitly included in the budget or have prior written approval of the Federal agency). Protocol-Related and Data-Related Costs – Can be direct charged for developing and maintaining protocols (human, animals, etc.) managing substances, managing and securing project specific data, and coordinating research subjects Dependent Care During Conferences Beyond the Non-Federal Entity – Can be direct charged if the entity has a consistent policy paying these costs (across all fund sources). Stanford may not have a policy. Entertainment Costs – Still unallowable unless it has a specific programmatic purpose and is approved in the budget or by federal agency written approval 13

Changes in Direct Costing Rules 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. Participant Support Costs – For all agencies; not just NSF – Require prior agency approval 14

Purchasing Language that implies that purchases over $3K require competitive bidding (potential major impact on P-cards) Confusion not resolved about F&A on vendor purchases over $25K New data elements to track in property system – Stanford’s system may already include elements Records must contain “use” of the equipment Equipment 15

Sara Bible More to come: Draft policies Forums for discussion Training When to start including UG changes in proposals for sponsored projects