DEVELOPING POLICIES AND PROCEDURES Brette Kaplan, Esq. Erin Auerbach, Esq. Brustein & Manasevit, PLLC Fall Forum 2013

Why? Brustein & Manasevit, PLLC 2 A-133 Audits Monitoring Changes and Transition of Staff Compliant policies and procedures lead to:  Administering compliant programs and complying with grants management requirements

Hungry for Compliance? Brustein & Manasevit, PLLC 3

The Recipe Brustein & Manasevit, PLLC 4

5 Where to start? Who should be involved? What is the process? How long does it take?

The Utensils Brustein & Manasevit, PLLC 6

Rules and Regulations Brustein & Manasevit, PLLC 7 Education Department General Administrative Regulations (EDGAR)  OMB Circular A-102 Office of Management and Budget Circulars State/Agency Policies and Procedures Authorizing Statute

Types of Grants Brustein & Manasevit, PLLC 8 State Administered Grants  Any grant that is distributed by formula to eligible States. EDGAR § 76.1 Direct Grants  Any grant other than those that are distributed by formula to eligible States. EDGAR § 75.1

The Ingredients Brustein & Manasevit, PLLC 9

10 Organization, Structure and Function Grant Application Process Financial Management System Procurement Inventory/Property Management Time and Effort Record Keeping Monitoring Audit Resolution Programmatic Fiscal Requirements Programmatic Requirements

Organization Structure and Function Brustein & Manasevit, PLLC 11

Organization Structure and Function Brustein & Manasevit, PLLC 12 Organization Chart  Offices  Sections  Divisions Job Descriptions & Responsibilities Outside entities with grant administration responsibilities  MOU/MOA

Grant Application Process Brustein & Manasevit, PLLC 13

Grant Application Process Brustein & Manasevit, PLLC 14 Direct Grant vs. State Administered Grant Decisions regarding what grants to apply for Determining organizational capacity to run a compliant program Approvals/Authorizations After the Grant is Awarded Best Practice:  Whether or not formal acceptance is required, meet with appropriate parties to be certain you want to accept the grant.  Make acceptance a conscious act. Situations may have changed between submission and notice of award – internally and externally.

Financial Management System Brustein & Manasevit, PLLC 15

Financial Management System Brustein & Manasevit, PLLC 16 EDGAR §§ 80.20/ Accounting System Budget Budget Revisions Allowable Costs Cash Management Timely Obligation of Funds

Procurement Brustein & Manasevit, PLLC 17

Procurement Brustein & Manasevit, PLLC 18 EDGAR §§ 80.36/ State procurement requirements Open Competition Conflict of Interest Solicitations Vendor Selection Contract Administration

Inventory Brustein & Manasevit, PLLC 19

Inventory Brustein & Manasevit, PLLC 20 EDGAR §§ 80.32/ Property classifications  Equipment, supplies, “highly walkables” Inventory procedure Lost or stolen items Disposition

Time and Effort Brustein & Manasevit, PLLC 21

Time and effort Brustein & Manasevit, PLLC 22 OMB Circular A-87  Semiannual Certification  PARs OMB Circular A-21  Professional/professorial  Other Staff Cost Objective Reconciliations

Record Keeping Brustein & Manasevit, PLLC 23

Record Keeping Brustein & Manasevit, PLLC 24 EDGAR §§ 80.42/ Statute of Limitations State Policy Agency Policy

Monitoring Brustein & Manasevit, PLLC 25

Monitoring Brustein & Manasevit, PLLC 26 Monitoring of agency Monitoring of subrecipients Risk-based factors Desk reviews Onsite reviews Follow-up

Audit Resolution Brustein & Manasevit, PLLC 27

Audit Resolution Brustein & Manasevit, PLLC 28 Single Audit/OMB Circular A-133 Resolution of findings Review of subrecipients’ A-133 audits

Programmatic Fiscal Requirements Brustein & Manasevit, PLLC 29

Programmatic Fiscal Requirements Brustein & Manasevit, PLLC 30 Supplement not supplant Maintenance of effort Matching Hold harmless

Programmatic Requirements Brustein & Manasevit, PLLC 31

Programmatic Requirements Brustein & Manasevit, PLLC 32 Programmatic compliance  Allocations to subrecipients  Allowable costs under grant program  Application process  Other

Eat and Enjoy Brustein & Manasevit, PLLC 33

Brustein & Manasevit, PLLC 34 Training Review and revise Where are policies and procedures located?

Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials 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 35