1. SILC-NET, a project of ILRU – Independent Living Research Utilization 0 0 SILC-NET at ILRU Presents… Playing by the Rules: A SILC Fiscal Guide to Spending Federal Money Part III Part III – EDGAR & OMB April 28, 2011 Presented by: Tim and Melissa Glisson

2. SILC-NET, a project of ILRU – Independent Living Research Utilization 1 1 SILC-NET at ILRU Presents… Playing by the Rules: A SILC Fiscal Guide to Spending Federal Money Part III Part III – EDGAR & OMB April 28, 2011 Presented by: Tim and Melissa Glisson

3. SILC-NET, a project of ILRU – Independent Living Research Utilization 2 Session Objective Identify important fiscal regulations affecting the SILCs, including EDGAR 74-76, and OMB Circulars A-110, & A-122.

4. SILC-NET, a project of ILRU – Independent Living Research Utilization 3 Regulatory Agencies “CAN WE DO THAT ? ” Where Do We Look? & Why or Why Not?

5. SILC-NET, a project of ILRU – Independent Living Research Utilization 4 EDGAR 34 CFR OMB Circulars 364 - 366 FASB & GAAP 74, 75, 77, 82 A-110, A-122 & A-133 The Act Regulatory Agencies Pyramid

6. SILC-NET, a project of ILRU – Independent Living Research Utilization 5 EDGAR 34 CFR OMB Circulars 364 - 366 FASB & GAAP 74, 75, 77, 82 A-110, A-122 & A-133 The Act State Law Regulatory Agencies, cont’d.

7. SILC-NET, a project of ILRU – Independent Living Research Utilization 6 The Rehabilitation Act Sources of SILC Funding Title VII - Part B Innovation & Expansion Social Security Reinvestment Fund Other Federal, State or Private

8. SILC-NET, a project of ILRU – Independent Living Research Utilization 7 The Rehabilitation Act, cont’d. Title VII – Part B Section 713 “The State may use funds received under this part to provide the resources described in section 705 relating to the SILC.”

9. SILC-NET, a project of ILRU – Independent Living Research Utilization 8 8 The Rehabilitation Act, cont’d. 2 Innovation & Expansion Funds Section 101 (a) (18) says Innovation & Expansion Funds can be used for: Innovative ways to expand and improve VR, and; to support the SRC and SILC.

10. SILC-NET, a project of ILRU – Independent Living Research Utilization 9 The Rehabilitation Act, cont’d. 3 Social Security Reimbursement Funds (SSRF) Section 108; States can use Social Security Reimbursement Funds in support of SILCs and IL services.

11. SILC-NET, a project of ILRU – Independent Living Research Utilization 10 EDGAR: Education Department General Administrative Regulations Part 74 – Uniform Administrative Requirements Part 75 – Federal Grant Programs Part 77 – Federal Grant Definitions Part 82 – Lobbying & Advocacy for D.O.E. grantees

12. SILC-NET, a project of ILRU – Independent Living Research Utilization 11 EDGAR 74 Uniform Administrative Requirements Standards for Financial Management Program Income Accounting Written Procedures OMB 122 Compliance Record Retention Required filings

13. SILC-NET, a project of ILRU – Independent Living Research Utilization 12 EDGAR 74, cont’d. Allowable Uses of Program Income Used to further project or program Used to finance non-Federal share Deducted from total allowable costs

14. SILC-NET, a project of ILRU – Independent Living Research Utilization 13 EDGAR 74, cont’d. 2 Financial Management Systems must be: Accurate Current Have complete Disclosure

15. SILC-NET, a project of ILRU – Independent Living Research Utilization 14 Requires written procedures: Reasonableness Allocability (aka “Cost Allocation”) Allowability EDGAR 74, cont’d. 3

16. SILC-NET, a project of ILRU – Independent Living Research Utilization 15 EDGAR 75 Application Notice Selection Procedures Conflict of Interest Use of Consultants

17. SILC-NET, a project of ILRU – Independent Living Research Utilization 16 EDGAR 75 – Conflict of Interest Grantees may not permit a person to make an administrative decision if: – They or family directly benefit – They are a public official – They have family or business relationship with the grantee – They are motivated by personal gain

18. SILC-NET, a project of ILRU – Independent Living Research Utilization 17 Conflict of Interest Form 990 asks for written: Conflict of Interest Policy Procedures for identifying and dealing with conflicts of interest

19. SILC-NET, a project of ILRU – Independent Living Research Utilization 18 Questions and Answers

20. SILC-NET, a project of ILRU – Independent Living Research Utilization 19 EDGAR 82 No Using Federal $$$ to Lobby for Federal $$$! Places restrictions on grantees using Federal funds to influence Federal officials or Congress People in connection with awarding Federal funds.

21. SILC-NET, a project of ILRU – Independent Living Research Utilization 20 OMB A-122 Says Federal $$$ Can’t Pay For… Attempts to influence legislation Attempts to influence legislators Attempts to influence elections Contributions to political parties Formation of lobbying organizations

22. SILC-NET, a project of ILRU – Independent Living Research Utilization 21 Rehabilitation Act Says SILCs CAN Advocate in the following ways… provide assistance or advice to legislators in response to a written request provide non-biased analysis provide information about your own agency

23. SILC-NET, a project of ILRU – Independent Living Research Utilization 22 Internal Revenue Code (IRC) SILC/Non-Profits Can Use a Portion of non-Federal $$ For: Direct Lobbying – state a position on legislation Grassroots Lobbying – “call to action” to influence legislation

24. SILC-NET, a project of ILRU – Independent Living Research Utilization 23 IRC How Much $$? Direct Lobbying – state a position on legislation Grassroots Lobbying – “call to action” to influence legislation

25. SILC-NET, a project of ILRU – Independent Living Research Utilization 24 OMB Circulars A-110Uniform Administrative Requirements A-122Cost Principles A-133Independent Audits

26. SILC-NET, a project of ILRU – Independent Living Research Utilization 25 OMB Circulars A-110 Uniform Administrative Requirements Standards for Financial Management Systems Award payment Cost sharing or matching Procurement procedure Financial reporting

27. SILC-NET, a project of ILRU – Independent Living Research Utilization 26 OMB Circulars A-122 Cost Principles Determine costs of the award so: Grant is managed properly Government bears its fair share Money is spent legally

28. SILC-NET, a project of ILRU – Independent Living Research Utilization 27 OMB Circulars A-122 Cost Principles, cont’d. Allowable Reasonable Allocable

29. SILC-NET, a project of ILRU – Independent Living Research Utilization 28 OMB Circulars A-122 Cost Principles, cont’d. 2 Allocable & Allowable does not mean Reimbursement! …HMMMMM

30. SILC-NET, a project of ILRU – Independent Living Research Utilization 29 OMB Circulars A-122 Cost Principles, cont’d. 3 Direct Costs Can be identified specifically to a final cost objective. – Project – Service – Direct activity

31. SILC-NET, a project of ILRU – Independent Living Research Utilization 30 OMB Circulars A-122 Cost Principles, cont’d. 4 Costs are Allowable if: – Reasonable for the award’s performance – Adequately documented – Consistent – In accordance with GAAP – Conform to cost limitations / exclusions – Time frame appropriate to contract

32. SILC-NET, a project of ILRU – Independent Living Research Utilization 31 OMB Circulars A-122 Cost Principles, cont’d. 5 Reasonable Costs incurred with proper consideration of the circumstances prevailing at the time.

33. SILC-NET, a project of ILRU – Independent Living Research Utilization 32 OMB Circulars A-122 Cost Principles, cont’d. 6 Costs to consider when making judgments about reasonableness: – Prevailing circumstances – Ordinary and necessary – Laws and contracts – Responsible and prudent

34. SILC-NET, a project of ILRU – Independent Living Research Utilization 33 OMB Circulars A-122 Cost Principles, cont’d. 7 Indirect Costs –Incurred for common cost objectives, not assigned to specific cost objectives.

35. SILC-NET, a project of ILRU – Independent Living Research Utilization 34 OMB Circulars A-122 Cost Principles, cont’d. 8 Allocable Consistent with other costs Incurred specifically for award Benefits award and other work Distributed in reasonable proportion to benefits Necessary to overall operation, not to a specific cost objective

36. SILC-NET, a project of ILRU – Independent Living Research Utilization 35 OMB Circulars A-122 Cost Principles, cont’d. 9 Cost Allocation Plan (CAP) EDGAR 74.21 & OMB A-110, A-122 (approved by Cognizant Agency) Narrative describing methodologies for allocating indirect expenses to cost objectives

37. SILC-NET, a project of ILRU – Independent Living Research Utilization 36 OMB Circulars A-122 Cost Principles, cont’d. 10 Cost Allocation Plan (CAP): “Designed to provide that the Federal Government bear its fair share of the costs except where restricted or prohibited by law” Financial “blueprint” for agency

38. SILC-NET, a project of ILRU – Independent Living Research Utilization 37 OMB Circulars A-122 Cost Principles, cont’d. 11 Cost Allocation Plan (CAP): Simplified (Indirect Cost Rate) Special Indirect Cost Rate Multiple Direct – preferred method

39. SILC-NET, a project of ILRU – Independent Living Research Utilization 38 OMB Circulars A-133 Independent Audits Section 725 of the Act Single Audit Act mandates audit for agencies receiving $500,000 or more in federal funds Allowable expense for agencies required (133.230) Also EDGAR 34 CFR 74.26

40. SILC-NET, a project of ILRU – Independent Living Research Utilization 39 FASB 116 Accounting Principles Contributions Pledges Donor Conditions Donor Restrictions

41. SILC-NET, a project of ILRU – Independent Living Research Utilization 40 FASB 117 Financial Statements Financial Position Activities Functional Expenses Cash Flows Financial Disclosures

42. SILC-NET, a project of ILRU – Independent Living Research Utilization 41 Form 990 The annual federal tax return form which must be filed for most non-profits – Failure to file penalties – Conflict of Interest

43. SILC-NET, a project of ILRU – Independent Living Research Utilization 42 Form SF-269 Annual grant performance status report to cognizant agency that helps to ensure: – Expenses are recorded – Funds are spent in the given grant period

44. SILC-NET, a project of ILRU – Independent Living Research Utilization 43 IL Regs, EDGAR, OMB Circulars, FASB, & More DocumentParts/TitleWeb Address IL Regs34 CFR 364-366http://www.gpoaccess.gov EDGAR34 CFR Parts 74, 75, 77, 82,http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html OMB Circulars: A-110Uniform Administrative Requirements http://www.whitehouse.gov/omb/circulars/a110/2cfr215-0.pdf A-122Cost Principles for Nonprofit Organizations, http://www.whitehouse.gov/omb/fedreg/2005/083105_a122.pdf A-133Audits of States, Local Governments, and Non-Profit Organizations http://www.whitehouse.gov/omb/circulars/a133/a133.pdf Other: FASB 116Contributionshttp://www.gasb.org/pdf/fas116.pdf FASB 117Financial Statementshttp://www.1800net.com/nprc/fasb117.html Advocacy & Lobbyinghttp://www.muridae.com/nporegulation/lobbying.html Cost Allocationwww.o.gov/programs/cil/legislation.html IRS Form 990 http://www.irs.gov/pub/irs-pdf/f990.pdf IRS Form 269 http://www.irs.gov/pub/irs-utl/sf269-blank.pdf

45. SILC-NET, a project of ILRU – Independent Living Research Utilization 44 Questions and Answers

46. SILC-NET, a project of ILRU – Independent Living Research Utilization 45 Wrap Up and Evaluation Please complete the evaluation of this program by clicking here: https://vovici.com/wsb.dll/s/12291g49da3

47. SILC-NET, a project of ILRU – Independent Living Research Utilization 46 SILC-NET Attribution Support for development of this Webinar/teleconference was provided by the U.S. Department of Education, Rehabilitation Services Administration under grant number H132B070003-10. No official endorsement of the Department of Education should be inferred. Permission is granted for duplication of any portion of this PowerPoint presentation, providing that the following credit is given to the project: Developed as part of the SILC-NET, a project of the IL NET, an ILRU/NCIL/APRIL National Training and Technical Assistance Program.