1. What are the Changes in the Uniform Administrative, Cost Principles and Audit Requirements and How Might This Impact Your Organization ? Deirdre M. Joseph City of Tampa If you don’t like something change it; if you can’t change it, change the way you think about it.~ Mary Engelbreit

2. Who, What, When, Why? Reduce Paperwork Reduce Waste, Fraud, Abuse Standardization 2009 – Executive Order to Reduce Improper Payments 2011 Presidential Memo on Administrative Flexibility, Lower Costs 2011 COFAR established to coordinate improvements Flexibility

3. Who, What, When, Why? A21 A50 A87 A122 A133 A110 A89 A102

4. Who, What, When, Why? Federal Agencies Recipient and Sub-Recipient Non-Federal Agencies * States, Local Governments, Indian Tribes Institutions of Higher Learning Auditors

5. Who, What, When, Why? December 26, 2014

6. Subpart A: Acronyms and Definitions Subpart B (100): General C (200): Pre-Award D (300): Post-Award E (400): Cost Principles F (500): Audit Appendices Where Do I Find It?

7. Crosswalk

8. Categorize, Cross-Reference & Consult Procurement ~ Documentation ~ Inventory ~ Allowability Legal ~ Human Resources ~ Internal Audit ~ Purchasing ~ Finance

9. Focus Now Performance over Compliance – Pre-Award Review – Clear milestones identified in agreements Strengthened Accountability – Earlier communication of audit findings

10. Terminology Must -vs- Should (Required) (Best Practice)

11. Audit Threshold NEW! Single Audit Threshold = $750,000 Old = $500,000 New = $750,000

12. Get All Departments Engaged 200. 447 Insurance & Indemnification “ Deletes policy requirement that Federal government will participate in actual losses of a self-insurance fund that are in excess of reserves.” Suggestion: Involve Legal, Risk Management and Purchasing

13. 200.206: Collection of Standardized Information on Applications Grant Intake Information Form Grant Title:____ Granting Agency:____ Description_________ Contract#: _____ CFDA#:_______ Pass Through Entity:______ Federal Funding: $________ Period of Performance: State Funding: $________ Start Date:_____ End Date:______ Local Match: $________ Grant Type:  Cost Reimbursement City’s Match: $________  Fixed Fee Total Funding: $________  Unit of Service  Advance Financial Reporting Schedule: _______ Progress Reporting ______ Requires Trust Fund/Interest Bearing Account?  Yes  No Indirect Cost:  Yes  No. If Yes, document rate used__________.

14. 200.203 Notice of Funding Opportunities (A) Notices must remain open for at least 30 days! (B) Standardizes information to be provided in Summary Federal Awarding Agency Name/Funding Opportunity Title/ Announcement Type (initial or modification) Funding Opportunity Number Catalog of Federal Financial Assistance (CFDA) Numbers Key Dates (due dates for applications or submissions and intent) (C) Full Text of Funding Summary – Summary Information

15. 200.207: Specific Conditions Applicants or Recipients who have a history of ‘failure to comply” with general or specific terms and conditions or failure to meet expect performance goals Result – Awarding agency may impose additional specific award conditions Example: Requiring payments as reimbursements rather than advance payments

16. Fixed Amount Awards 200.201 NEW! Allow for ‘Fixed Amount’ awards Awards rely more on Performance than Compliance Payments are based on specific requirements such as performance, milestone and results

17. Grant Agreements New! Subpart D- Post Federal Award Requirements Requires inclusion of performance goals in award’s terms and conditions, as a programmatic requirements.

18. 200.301 Performance Measurement Federal Agencies MUST include performance goals aligned with program goals in notice Entities Must relate financial data to performance accomplishment Goal = Response $100K purchase of Interoperable Communications 1 st quarter 30% of our State can now Respond +

19. Cost Sharing or Match 200.306 CLARIFICATION! Voluntary committed cost sharing is not expected and cannot be used as a factor during the merit review of applications or proposals. CONSIDER Criteria for Cost Share/Match: Verifiable in records Not included in any other Federal award Necessary and reasonable to accomplish program Not paid by Federal Government Allowable in Subpart E

20. Procurement 200.317 States may use their own written procurement policies and procedures Open Competition Ensure Most Economical Purchase Conflict of Interest Mandatory Disclosures Must perform cost analysis on all non- competitive contracts All contracts must include required clauses

21. Review of Risk of Applicants 200.205 An evaluation framework must be in place (e.g. Do Not Pay) Where necessary, specific conditions must be imposed to mitigate potential risk

22. 200.333 Record Retention Clarification – Files must be maintained for 3 years from the date of FINAL Expenditure Report

23. Family Friendly Policies Encouraged NEW! Cost of identifying locally available child care resource is allowable. NEW! Allows temporary dependent care cost that meet specified standards for travel NEW! Allows family leave as a fringe benefit TIP: Review existing policies with Human Resources

24. Pass Through Entity Requirements 200.331 Sub Awards must be clearly identified Risk Evaluation of sub-recipient’s Verify compliance to audit requirements May impose specific sub-award conditions – Withhold cash – Disallow cost – Terminate (or temporary suspend) award – Suspension and Debarment

25. Indirect Cost Rates Must accept approved negotiated rate Pass-through entities must provide an indirect cost rate for sub-awards If no Negotiated Rate; then 10% rate in effect

26. Merit Review Proposal 200.204 – New! Must have a merit review process

27. Equipment 200.313 The State can follow their own equipment standards NEW! Computing Devices with a value of $5,000 or less will be considered supplies

28. 200.313 (continued) CLARIFICATION on SHARED USE. Allowed if such use will not ‘interfere” 1 st – Projects supported by federal agency 2 nd – Projects funded by other federal agencies 3 rd - Use for non-federally funded programs Equipment

29. Methods of Collection Transmission & Storage of Information 200.335 Clarification! Electronic, open, machine readable information is preferable to paper (with appropriate internal controls to safeguard alteration of records) Can substitute electronic versions for original paper provided certain conditions

30. Required Certifications 200.415 NEW! Must certify on annual and fiscal reports or vouchers requesting payment: “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete and accurate and expenditures, disbursements and cash receipts are for the purpose 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”

31. Payments 200.305 Interest Earned on Federal Funds paid annually (rather than promptly) Interest Bearing account increased to $500 for administrative purposes

32. Termination 200.339 Can Terminate Award – Non compliance – For Cause – With Consent

33. Direct Cost 200.413 Clarifies the circumstances where Administrative Support cost may be treated as direct cost

34. Compensation & Payroll 200.430 High standards of internal control over salaries and wages

35. Allowable -vs- Non-Allowable Cost NEW: 200.421 Advertising and Public Relations are allowable exceptions to the otherwise unallowable cost 200.460 Proposal Cost are allowable SUGGESTION: Develop a checklist of Allowable and Unallowable Cost for each grant file

36. Internal Controls 200.303 Must safeguard and protect personally identifiable or sensitive information Source Documents for Best Practices: 1. The Green Book 2. “Internal Control Framework” by COSO 3. Appendix XI, Compliance Supplement

37. Mandatory Disclosure 200.112: Awarding Agency MUST establish Conflict of Interest policy and Non- Federal entity MUST disclose any potential Conflicts of Interest 200.113: MUST disclose in a timely manner and in writing ALL violations of criminal law involving fraud, bribery or gratuity violations

38. Appendix II: Contract Provisions NEW! All contracts must contain provision covering the guidance, statues and regulations provided in this appendix (11 areas) * Legal remedies when contractors violate or breach * Termination for cause or convenience * EEO * Rights to Inventors Made under Contract * Byrd Anti-Lobbying Amendment

39. Contract Administration 200.318 Must maintain oversight to ensure contractors perform in accordance with terms, conditions and specifications of the contract

40. Prior Approval 200.407 Required for the following circumstances: Change in principal investigator, project leader, partner or scope of effort Unrecovered indirect cost Additions to program income or use of program income to meet cost sharing or match Changes in project scope/objective, key person specified in award (non-construction award) Transfer of participant support cost to other expense categories Transfer or subcontract of work under the award

41. Auditor Selection Peer Review is now a factor in selecting an auditor Suggestion: Add requirement to upcoming RFPs Request periodic Peer Review results

42. Single Audit 200.512: MUST publish Single Audit Reports online at the Federal Audit Clearinghouse Suggestion(s): Establish procedures/metrics Timely Single Audit submission Coordinated Audit Follow-Up (e.g. using SF- SAC categories to track findings)

43. Single Audit Report 200.512 Auditor and auditees MUST ensure report do not include any Protected Personally Identifiable Information (PPII) MUST sign statement that reports don’t include PPII and authorization to make reports publically available on a website.

44. Audit Resolution 200.513 3 months to resolve findings Federal Agency will appoint a Senior Accountable Official for oversight of Single Audit

45. Audit Findings 200.516 MUST identify audit findings as repeat (from prior audit) with reference to the audit finding number Suggestion: Internally track audit findings

46. Close Out 200.343 Clarification: Final reports due 90 days from end of period of performance Close Out period extended to one year

47. If nothing ever changes, there’d be no butterflies ~ Author Unknown deirdre.joseph@tampagov.net (813) 276-3388