1. Managing Federal grants
Developing Policies and Procedures for Institutions of Higher education
Managing Federal grants
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Brette Kaplan, Esq. Erin Auerbach, Esq. Brustein & Manasevit, PLLC Spring Forum 2013

2. Why? A-133 Audits Auditors must ask about policies and procedures
Some tests specifically require written policies and procedures
Compliance Supplement, Part 6: Internal Controls
“The A-102 Common Rule and OMB Circular A-110 (2 CFR part 215) require that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements.”
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3. Why?
Monitoring
Policies and procedures are evidence of compliance under all program monitoring tools
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4. Why? Changes and Transitions of Staff Training tool
Maintain consistency
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5. Why? Compliant policies and procedures lead to:
Administering compliant programs and complying with grants management requirements
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6. Logistics Where to start? Who should be involved? What is the process?
How long does it take?
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7. Rules and regulations
Education Department General Administrative Regulations (EDGAR)
OMB Circular A-110
Office of Management and Budget (OMB) Circulars
State/Institutional Policies and Procedures
Authorizing Statute
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8. Types of grants State Administered Grants Direct Grants
Any grant that is distributed by formula to eligible states. EDGAR § 76.1
Ex: Perkins
Direct Grants
Any grant other than those that are distributed by formula to eligible states. EDGAR § 75.1
Ex: GEAR UP
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9. Building Blocks 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
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10. Organization Structure and Function
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11. Organization Structure and Function
Organization Chart
Job Descriptions
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12. Organization Structure and Function
Do you have an organizational chart?
What are the offices, sections, divisions or employees that have responsibility for grant administration?
What are their responsibilities?
Are there any entities outside of the agency that have grant administration responsibilities?
What are those responsibilities?
How is the relationship created? What are the terms?
MOU/MOA?
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13. Grant Application Process
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14. Grant Application Process
Applying for grants:
A grant application should be written so that it can be managed within the regulations that apply
Review every grant application with a grants management eye before submitting it
Read and understand the Grant Award Notification (GAN)
Direct Grants:
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. Things may have changed between submission and notice of award – internally and externally.
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15. Grant Application Process
How does the agency determine what grants to apply for?
What is the process?
Who reviews and signs off on a grant application?
What happens after a grant is awarded?
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16. Financial Management system
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17. Financial Management System
Allowable Costs - OMB Circular A-21
Specific items of cost
Timely obligation of funds
Period of availability – EDGAR § 74.28
Obligations – EDGAR § or §
Carryover
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18. Financial Management System
EDGAR § 74.21
Accounting System
Budget
Budget Revisions
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19. Financial Management System
What accounting systems are used?
What function does each system perform?
Who is responsible for managing budgets and accounts payable?
How are budgets loaded and tracked on the system? Timeline?
How do you ensure that expenditures are properly recorded in the system?
Is there a process for comparing budgets to expenditures?
How do you ensure that all expenditures are allowable?
Travel
What is the process for requesting budget revisions?
How do you ensure that all expenditures are made within the period of availability?
What happens to unobligated funds?
Does the system interface with the procurement and inventory system?
How are vendors paid? What is this process?
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20. Procurement
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21. Procurement EDGAR § 74.40-70.47 Conflict of Interest Open Competition
Solicitations
Vendor Selection
Contract Administration
Super Circular proposes significant changes to procurement standards for IHEs
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22. Procurement What is your conflict of interest policy?
State and/or agency-specific requirements that must be followed?
Approval for contracts?
Service contracts vs. contracts for goods?
Contract thresholds and process for entering into contracts within each threshold amount?
Small purchase, etc.
What clauses and/or certifications must be in each contract?
How do you ensure that the terms of the contract are met?
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23. Inventory
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24. Inventory EDGAR § 74.34 Property classifications Inventory procedure
Computing Devices
Inventory procedure
Lost or stolen items
Disposition
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25. Inventory How do you classify and define property?
Equipment, supplies, non-consumables
What items must be inventoried and tagged?
Detailed inventory records
What is the inventory process?
How frequently is a physical inventory conducted?
What is the policy regarding lost or stolen items?
Are there procedures to transfer equipment between programs?
What are the disposition procedures?
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26. Time and Effort
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27. Time and effort OMB Circular A-21
Type of documentation based on type of employee NOT cost objective
Super Circular proposes significant changes for IHEs
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28. Time and effort How do you document time and effort?
Who must sign the forms?
Where are the forms turned in?
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29. Record Keeping
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30. Record Keeping EDGAR § 74.53 Statute of Limitations – EDGAR § 81.31
Grants under the HEA have no SOL
State/Agency Policy
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31. Record Keeping How long must records be maintained?
How are records maintained?
Electronic, hard copy, etc.
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32. Monitoring
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33. Monitoring Risk-based Desk reviews Onsite reviews Follow-up
Risk factors
Desk reviews
Onsite reviews
Follow-up
Monitoring by grantor agency
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34. Monitoring Monitoring of agency vs. monitoring of subrecipients?
Who is responsible for monitoring?
Fiscal? Programmatic?
What gets monitored?
How do you determine which subrecipients will be monitored?
How often does monitoring occur?
Site visits, desk reviews, self-assessments
What is the process – from notification to issuing report?
Timeline?
How do you ensure that findings are resolved?
Corrective action plan
Closeout letter resolving finding
Future monitoring
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35. Audit Resolution
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36. Audit Resolution Single Audit OMB Circular A-133
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37. Audit Resolution
Who is responsible for overseeing OMB A-133 audit compliance and resolution?
What is the audit process?
How are findings resolved?
Review of subrecipients’ A-133 audits?
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38. Programmatic Fiscal Requirements
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39. Programmatic Fiscal Requirements
Supplement not supplant
Maintenance of effort
Matching
Hold harmless
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40. Programmatic Fiscal Requirements
How do you ensure compliance with programmatic fiscal requirements?
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41. Programmatic Requirements
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42. Programmatic Requirements
Programmatic compliance
Allocations to subrecipients
Allowable costs under grant program
Application process
Other
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43. Programmatic Requirements
How does your agency ensure compliance with the specific requirements of the grant program?
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44. Now what? Training Review and revise
Where are policies and procedures located?
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46. 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.
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