1. Grant Requirement Reminders Michigan State Police Emergency Management and Homeland Security Division Ms. Jackie Reese, Audit Unit Manager Mr. Richard Sheaffer, Auditor

2. http://www.michigan.gov/emhsd2 High risk topics Grant requirements Review, monitor and document Resources Overview

3. http://www.michigan.gov/emhsd3 High Risk Topics Suspension and Debarment Equipment Inventory Subrecipient Monitoring Support for Salaries and Wages Professional Services

4. http://www.michigan.gov/emhsd4 High Risk Topics (cont.) Dual Compensation Conflict of Interest Sole Source Procurement Contract Monitoring

5. Suspension and Debarment 44 Code of Federal Regulation (CFR) Part 13.35 Grantees and subgrantees must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs. UPDATE: www.epls.gov has been replaced with www.sam.gov. http://www.michigan.gov/emhsd5

6. Equipment Inventory 44 CFR Part 13.32 (d)(1 & 2) (1)Property records must be maintained that includes: description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, and cost of the property, percentage of federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2)A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. http://www.michigan.gov/emhsd6

7. Subrecipient Monitoring Office of Management and Budget (OMB) Circular A-133 Section 400 (d) Identifies pass-through entity responsibilities including: Identify Federal awards; advise of rules and regulations; monitor activities; ensure subrecipients meet audit requirements; issue management decision; consider adjustment of records; and ensure access to records. http://www.michigan.gov/emhsd7

8. Support for Salaries and Wages 2 CFR 225, Appendix B (8) (h) (3) Where employees are expected to work solely on a single federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employee worked solely on that program for the period covered by the certification. Certification must be signed by employee or direct supervisor and completed at least semi-annually. http://www.michigan.gov/emhsd8

9. Support for Salaries and Wages (cont.) 2 CFR 225, Appendix B (8) (h) (4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation which meets the standards in subsection (8) (h) (5). http://www.michigan.gov/emhsd9

10. Support for Salaries and Wages (cont.) 2 CFR 225, Appendix B (8) (h) (5) Personnel activity reports must meet the following: ○ Must reflect after-the-fact distribution of the activity. ○ Must account for the total activity compensated. ○ Prepared at least monthly ○ Must be signed by the employee http://www.michigan.gov/emhsd10

11. http://www.michigan.gov/emhsd11 2 CFR Part 225, Appendix B (32) Costs of professional services rendered by persons who are members of a particular profession or posses a special skill, and who are not officers or employees of the governmental unit, are allowable…(Bolding added) Professional Services

12. http://www.michigan.gov/emhsd12 DHS Grant Guidance In no case is dual compensation allowable. That is, an employee of a unit of government may not receive compensation from their unit or agency of government AND from an award for a single period of time (i.e. 1:00 PM to 5:00 PM) even though such work may benefit both activities. Dual Compensation

13. http://www.michigan.gov/emhsd13 44 CFR Part 13.36 (b) (3) Grantees and subgrantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. Conflict of Interest

14. http://www.michigan.gov/emhsd14 44 CFR Part 13.36 (b) (3) No employee, officer or agent of the grantee or subgrantee shall participate in the selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: (i) The employee, officer, or agent, (ii) Any member of his immediate family, (iii) His or her partner, or (iv) An organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. Conflict of Interest (cont.)

15. http://www.michigan.gov/emhsd15 44 CFR Part 13.36 (c) (4) (i) Procurement by non-competitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals and one of the following circumstances applies: ○ The item is available only from a single source; ○ The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; ○ The awarding agency authorizes noncompetitive proposals; or ○ After solicitation of a number of sources, competition is determined inadequate. Sole Source Procurement

16. http://www.michigan.gov/emhsd16 44 CFR 13.36 (b) (2) Grantees and subgrantees will maintain a contract administration system which ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Contract Monitoring

17. http://www.michigan.gov/emhsd17 Contract Monitoring (cont.) 44 CFR 13.36 (f) Grantees and subgrantees must perform a cost or price analysis in connection with every procurement action including contract modifications.

18. Review, Monitor and Document Review grant requirements, grant guidance, code of federal regulations, rules and regulations, and omb circulars. Monitor grant performance, subrecipients, contracts, reporting, grant requirements, etc. Document, document, document! Note: Lack of adequate documentation may result in questioned costs. http://www.michigan.gov/emhsd18

19. Resources 44 CFR Part 13 http://www.ecfr.gov/cgi-bin/text- idx?tpl=/ecfrbrowse/Title44/44cfr13_main_02.tplhttp://www.ecfr.gov/cgi-bin/text- idx?tpl=/ecfrbrowse/Title44/44cfr13_main_02.tpl 2 CFR Part 225 http://www.ecfr.gov/cgi-bin/text- idx?tpl=/ecfrbrowse/Title02/2cfr225_main_02.tpl OMB Circular A-133 http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revi sed_2007.pdf http://www.michigan.gov/emhsd19

20. Resources (cont.) EMHSD Information Bulletin 11-02 http://www.michigan.gov/documents/msp/compliance_with_grant_require ments_369178_7.pdf Past MSP-EMHSD Presentations http://www.michigan.gov/msp/0,4643,7-123-1593_3507_41574---,00.html Sample Equipment Tracking Form http://www.michigan.gov/msp/0,4643,7-123-1593_3507_41574-214684--,00.html http://www.michigan.gov/emhsd20

21. http://www.michigan.gov/emhsd21 Questions?

22. http://www.michigan.gov/emhsd22 Contact Information Ms. Jackie Reese, Audit Unit Manager Phone: (517) 324-2330 Email: ReeseJ@Michigan.gov Mr. Richard Sheaffer, Auditor Phone: (517) 333-4624 Email: SheafferR@Michigan.gov