1. The New EDGAR 13th Annual Title Programs Conference June 17-18, 2015
Atlanta Airport Marriott Gateway
2020 Convention Center Concourse, Atlanta, GA 30337
11/18/2018

2. Presenters Jennifer L. Davenport, Ed.D.
Title I, Part A Program Manager
Georgia Department of Education
(404)
Margo K. DeLaune
Title Programs Director
(404)
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3. The New EDGAR
SCHOOL IMPROVEMENT & DISTRICT EFFECTIVENESS
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4. Government Regulations Applicable to Grants
34 C.F.R. Part 75 (Direct Grant Program)
34 C.F.R. Part 76 (State-Administered Programs)
34 C.F.R. Part 77 (Definitions that Apply to Department Regulations)
34 C.F.R. Part 79 (Intergovernmental Review of Department of Education Programs and Activities)
34 C.F.R. Part 81 (General Education Provisions Act – Enforcement)
34 C.F.R. Part 82 (New Restrictions on Lobbying)
34 C.F.R. Part 84 (Governmentwide Requirements for Drug- Free Workplace (Financial Assistance))
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5. Government Regulations Applicable to Grants
34 C.F.R. Part 86 (Drug and Alcohol Abuse Prevention)
34 C.F.R. Part 97 (Protection of Human Subjects)
34 C.F.R. Part 98 (Student Rights in Research, Experimental Programs, and Testing)
34 C.F.R. Part 99 (Family Educational Rights and Privacy)
2 C.F.R. Part 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)), as adopted at 2 C.F.R. Part 3485
2 C.F.R. Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), as adopted at 2 C.F.R. Part 3474
11/18/2018

6. Grant Agreement
A grant agreement (legal instrument of financial assistance) to enter into a relationship the principal purpose of which is to transfer anything of value from the federal awarding agency to the non-federal entity to carry out a public purpose authorized by law.
2 C.F.R. §
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7. Grant vs. Contract
The distinction between a grant and a contract is found in 2 C.F.R. §
Grants are subject to applicable federal requirements.
Contracts are not subject to federal compliance.
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8. Grantee Failure to Comply with Applicable Federal Requirements
Congress may fix the terms on which it disburses grants.
A federal grant is much in the nature of a contract, in return for the federal funds the grantee agrees to comply with the federally imposed conditions.
Pennhurst vs. Halderman, 451 U.S. 1 (1981)
But New Jersey and Pennsylvania argued to the Supreme Court that US ED cannot recover misspent grant funds
Bell v. New Jersey and Pennsylvania, 461 U.S. 773 (1983)
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9. Grantee Failure to Comply with Applicable Federal Requirements
Federal auditors determined both states misspent Title I funds.
Supreme Court held that grantees misusing federal funds incur a debt to the Federal Government (citing Section 415 of GEPA)which states that grants must be adjusted on account of overpayments
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10. Grantee Failure to Comply with Applicable Federal Requirements
Citing Pennhurst: the grantee chose to participate in the program, and as a condition of receiving the grant, gave an assurance that it would abide by the conditions of the grant.
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11. Conditions of the Grant
Many of the conditions of the grant are included in GEPA and EDGAR.
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12. Conditions of the Grant
Many of the conditions of the grant are included in GEPA and EDGAR.
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13. Historical Timeline Rules
Prior to 1970 (HEW) (USOE)--Administrative, Cost and Audit rules were included as part of program regulations.
The Education Amendments of 1970 (Pub Law ) (Section 401) brought general provisions of prior laws into single title: “The General Education Provisions Act (GEPA)”.
Between 1965 and 1972 USOE very broadly interpreted federal statues. Congress questioned legal authority of some of the federal regulations
Education Amendments of 1972 – “Section 503 Study”
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14. Historical Timeline Rules
Lead to the “General Provisions for Office of Education Programs” November 6, 1973, 45 C.F.R. Part 100
This lead to the first EDGAR
EDGAR incorporated by reference “OMB Circulars”
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15. Historical Timeline Circulars
Circular A-1 (August 7, 1952), Bureau of the Budget
Describes the Bureau's system of Circulars and Bulletins which are employed to communicate various instructions and information to the executive departments and establishments. The Circular series is used when the nature of the subject matter is of continuing effect.
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16. Historical Timeline Circulars
Circular A-87 – Cost Principles
First issued in 1968
Revised in 1995
Repealed in 2014
Now in 2 C.F.R. Part 200, Subpart E
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17. Historical Timeline Circulars
Circular A-1 (August 7, 1952), Bureau of the Budget
Describes the Bureau's system of Circulars and Bulletins which are employed to communicate various instructions and information to the executive departments and establishments. The Circular series is used when the nature of the subject matter is of continuing effect.
The Bureau of Budget
Established by President Warren G. Harding in 1921
Became the Office of Management and Budget (OMB) in 1970
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18. Historical Timeline Audit Principles
Congress enacts Inspector General Act
Prior to 1979, each federal agency developed own audit rules and policies
In 1979, OMB issued Attachment P to OMB Circular A-102 (Administrative Rules)
Program statutes often imposed federal audit requirements (e.g. The VEA Amendments of 1976).
1979 – Congress enacts Department of Education Organization Act
1980 – US ED opened for business
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19. Historical Timeline US Department of Education
1979 – Congress enacts Department of Education Organization Act
1980 – US ED opened for business
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20. Historical Timeline Audit Principles
1980 EDGAR Parts 74, 75, 76, 80 moved to Title 34 of the C.F.R.
1984 – Single Audit Act
OMB issues Circular A-133 to cover state/local grantees expending over $25,000
1996 – Single Audit Amendment to cover IHEs, Non- profits
Audit threshold increased to $300,0000
1996 – First OMB Compliance Supplement Issued
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21. The New EDGAR
Repeals OMB Circulars A-133, A-21, A-87, A-102, A-110, and A-122
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22. Key Parts of the New EDGAR
Title 34
Part 75 – Direct Grant Programs
Part 76 – State-Administered Programs
Part 77 – Definitions
Part 81 – Enforcement
Title 2
Part 200 – Cost/Administrative/Audit Rules
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23. Effective Dates for 2 C.F.R. Part 200
December 26, 2014 – Direct Grants from ED
July 1, 2015 – State Administered Programs
July 1, 2016 – Procurement Rules – One Year Grace Period
Indirect Cost Rates When Due For Renegotiation
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24. Effective Dates for 2 C.F.R. Part 200
December 26, 2014 – Direct Grants from ED
July 1, 2015 – State Administered Programs
July 1, 2016 – Procurement Rules – One Year Grace Period
Indirect Cost Rates When Due For Renegotiation
11/18/2018

25. US ED Adopts OMB Guidance
US ED Adopts OMB Guidance in 2 C.F.R. Part 200 except for:
2 C.F.R. § (a)
Authority for granting exceptions to regulations vested in OMB.
But Department of Education Organization Act 20 U.S.C. § does not permit Secretary to delegate exceptions to OMB.
Secretary will consult within OMB.
2 C.F.R. § (a)
The Secretary retains the authority under sections and to impose high risk conditions on individual grants and individual grantees at time award is made or after an award is made.
11/18/2018

26. Programs to Which Part 76 Applies
Parts 76.1; 76.50; 76.51
Program statute authorizes fund allocation to States by formulas
State allocates funds by formula (Title I, IDEA-B, Perkins) or Competitively (AEFLA, 21st Century)
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27. Part 76 The General State Application The LEA Local Application
76.101
Meets requirements of Section 441 of GEPA.
The LEA Local Application
76.301
Meets requirements of Section 442 of GEPA.
Disapproval of an Application
76.401
Due Process and State Agency Hearing
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28. Part 76 Allowable Costs Indirect Cost Rates
76.530
The general principles to be used in determining costs applicable to grants is in 2 C.F.R. Part 200, Subpart E.
Indirect Cost Rates
through
Incorporates language from 2 C.F.R. Part 200, 79 FR 76094
General Administrative Responsibilities
through
Incorporates 2 C.F.R. Part 200, Subpart D.
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29. Part 76 Obligation of Funds When Obligations are Made 76.703 76.707
If plan submitted in “Substantially Approvable Form” funds available for obligation on date funds available to Secretary for obligation.
When Obligations are Made
76.707
Note differences on obligation dates
Adds new category: pre-agreement costs approved by Secretary are obligated on 1st day of grant performance period.
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30. Part 76 Obligation Period Reports and Records
through76.710
708(c) references 2 C.F.R. Part 200 on Pre-Agreement Costs.
Reports and Records
through
References new reporting requirements on financial management in 2 C.F.R. § (performance reporting)
Funds under More than One Program to Assist a Single Activity
76.760
Must comply with req. of each program
Proper accounting
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31. Part 76 Procedures to Ensure Compliance
through
Goes beyond requirements of 2 C.F.R. Part 200, Subpart D
Federal Procedures to Assure Compliance
76.900
No waivers, unless specifically authorized
76.901
OALJ
76.902
Judicial Review
76.910
Cooperation with Audits
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32. The New 2 C.F.R. Part 200 Stronger emphasis on internal controls
Enhanced monitoring/performance metrics
Monitoring (d)
States must monitor its subrecipients to assure compliance and performance goals are achieved
Monitoring must include: Review of financial and programmatic reports; Ensuring corrective action; Issue a “management decision” on audit findings
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33. The New 2 C.F.R. Part 200 Performance Metrics--200.328(b)(2)
The performance reports must include: Comparing actual accomplishments to the objectives established by the federal award; Where the accomplishments of the federal award can be quantified, a computation of the cost (for example, related to units of accomplishment) may be required if that information will be useful; If performance trend data is useful, federal awarding agency should include this as a performance reporting requirement.
The reasons why established goals were not met, if appropriate.
Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
Significant developments, problems, delays, adverse conditions.
Favorable developments.
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34. The New 2 C.F.R. Part 200 Subpart A – Definitions
Subpart B – General Provisions
Subpart C – Pre Award Requirements
Subpart D – Post Award Requirements
Subpart E – Cost Principles
Subpart F – Audit Requirements
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35. Written Policies and Procedures Required under 2 C.F.R. Part 200
Written policies and procedures are required!
Written Cash Management Procedure - § (b)(6) & §
Written Allowability Procedures - § (b)(7)
Written Conflicts of Interest Policy - § (c)
Written Procurement Procedures - § (c)
Written Method for Conducting Technical Evaluations of Proposals and Selecting Recipients - § (d)(3)
Written Travel Policy - § (b)
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36. Required Certification under 2 C.F.R. Part 200.415
To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets, the annual and final fiscal reports or vouchers requesting payment under the agreements must include a certification, signed by an official who is authorized to legally bind the non-federal entity, which reads as follows:
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37. Required Certification under 2 C.F.R. Part 200.415
“By signing this report, 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 and ).”
11/18/2018

38. Questions??
Brustein & Manasevit, PLLC

39. Title I Education Program Specialists Contact Information
Area
Name
Phone Number 1
Robyn Planchard
(404) 2
Randy Phillips
(770) 3
Anthony Threat
(706) 4
Evelyn Maddox
(404) 5
Judy Alger
(229) 6
Grace McElveen
(912) 7
Jimmy Everson
(229) 8
Marijo Pitts-Sheffield
(912) 9
Kathy Pruett
(706) 10
Elaine Dawsey
(478) 11
Olufunke Osunkoya
(678) 12
Bobby Trawick
(229) 13
Ken Banter
(478) 14
Tammy Wilkes
(478)

40. Presenters Jennifer L. Davenport, Ed.D.
Title I, Part A Program Manager
Georgia Department of Education
(404)
Margo K. DeLaune
Title Programs Director
(404)
11/18/2018 40