1. OMB Uniform Guidance: Overview 1 Uniform Guidance Overview Webinar: December 18, 2015 Debbie Galloway Office of Grants Management

2. OMB Uniform Guidance: Overview 2 Why This Session Introduce you to the Uniform Guidance – Grant Management Rulebook Found at 2 CFR Part 200 and 2 CFR Part 2900 Highlight key changes that will impact your policies and procedures

3. OMB Uniform Guidance: Overview 3 Topics Covered Uniform Guidance Structure Reporting Prior approval Property Procurement Subrecipient management Records Indirect Costs Remedies QSAP – Quick Start Action Planner 3

4. OMB Uniform Guidance: Overview 4 4 Knowledge Check On a scale of 1 (lowest) to 5 (highest), rate your knowledge and understanding of the following by circling the appropriate number: I am fully aware of the various OMB Circulars that are impacted by the issuance of the Uniform Guidance which contains the requirements for managing a Federal grant around monitoring, accountability, risk mitigation, and transparency. 1 2 3 4 5

5. OMB Uniform Guidance: Overview 5 5 How did the Uniform Guidance come about? Council on Financial Assistance Reform (COFAR) –Created on October 27, 2011 –Composition 9 Federal awarding agencies

6. OMB Uniform Guidance: Overview 6 BEFORE – Uniform Guidance 8 OMB Circulars ◦ 3 Administrative Requirements ◦ 3 Cost Principles ◦ 2 Audit Requirements Varying applicability and standards

7. OMB Uniform Guidance: Overview 7 AFTER - Uniform Guidance

8. OMB Uniform Guidance: Overview 8 Applicability (chart available at http://www.doleta.gov/grants/resources.cfm)

9. OMB Uniform Guidance: Overview 9 Compliance: Hierarchy Authorization and Appropriation Government-wide OMB Uniform Guidance (UG) 2 CFR Part 200 Government-wide Agency and Programs UG DOL Exceptions 2 CFR Part 2900; Program Regulations; Guidance; Policy Manuals; Grant Terms and ConditionsProgram Program Statutes Drug Free Workplace; Suspension or Debarment; Lobbying; FFATA; Non- Discrimination; Whistleblower Protections

10. OMB Uniform Guidance: Overview 10 Uniform Guidance Structure 2 CFR Part 200 - and 2 CFR Part 2900 DOL’s exceptions to the Uniform Guidance Acronyms & Definitions ◦ Subpart A  New and updated terms General Provisions ◦ Subpart B  Includes effective dates Pre-Federal Award Requirements ◦ Subpart C ◦ Appendix I – Full Text of Notice of Funding Opportunity Post Federal Award Requirements ◦ Subpart D ◦ Appendix II Contract Provisions

11. OMB Uniform Guidance: Overview 11 ◦ Subpart E & 7 Appendices ◦ Appendix III —Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs) ◦ Appendix IV —Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations ◦ Appendix V —State/Local Governmentwide Central Service Cost Allocation Plans ◦ Appendix VI —Public Assistance Cost Allocation Plans ◦ Appendix VII —States and Local Government and Indian Tribe Indirect Cost Proposals ◦ Appendix VIII —Nonprofit Organizations Exempted From Subpart E— Cost Principles of Part 200 ◦ Appendix IX to Part 200—Hospital Cost Principles Structure Cost Principles & Indirect Costs

12. OMB Uniform Guidance: Overview 12 ◦ Subpart F & 2 Appendices ◦ Appendix X —Data Collection Form (Form SF–SAC) ◦ Appendix XI —Compliance Supplement  2015 Edition release July 2015  Streamlined the audit objectives and procedures for the 14 types of compliance requirements Structure Audit Requirements

13. OMB Uniform Guidance: Overview 13 Audit Threshold Must make records available for audit or review by the Federal agency, its pass-through agency, and/or GAO Basis for determining Federal awards has been expanded to include accrued costs, disbursements to subrecipients [200.502] Federal Agency or Inspectors General (OIG) may require audits to meet regulatory or statutory requirements Alternatives: program-specific, limited scope, or agreed-upon procedures A Single Audit or program-specific audit is required when a non-Federal entity expends $750,000 or more in Federal awards in a fiscal year [2 CFR 200.501(a)] Expend less than $750,000 -- exempt for that fiscal year

14. OMB Uniform Guidance: Overview 14 2900.2 Non-Federal Entity includes for-profit entities and foreign entities DOL Exceptions (1 of 2) Multiple Provisions Concerning Budget 2900.5 Federal awarding agency review of merit of proposals 2900.7 Payment 2900.14 Financial reporting 2900.15 Closeout

15. OMB Uniform Guidance: Overview 15 DOL Exceptions (2 of 2) 2900.17 Adjustment of negotiated IDC rates 2900.18 Contingency provisions Subpart F – Audit Requirements (2900.20-.22) 2900.13 Intangible property

16. OMB Uniform Guidance: Overview 16 Revised Definitions and New Terms Conflict of Interest Procurement Methods Support for Indirect Cost rates De Minimis Rate Computing Devices Internal Controls Improper Payments COSO Important additions or changes

17. OMB Uniform Guidance: Overview 17 Revised Definitions and New Terms (2 of 3) 200.8 Budget –DOL clarification at 2 CFR 2900.1 200.23 Contractor 200.45 Fixed Amount Awards 200.61 Internal Controls

18. OMB Uniform Guidance: Overview 18 200.67 Micro-Purchase 200.68 Modified Total Direct Cost (MTDC) 200.69 Non-Federal Entity 200.79 PII and Protected PII 200.88 Simplified Acquisition Threshold 200.74 Pass-through Entity 200.92 Subaward Revised Definitions and New Terms (3 of 3)

19. OMB Uniform Guidance: Overview 19 Standards for Financial Systems Identification of all Federal cash receipts and expenditures Comparison of expenditures to budgets and performance Written procedures for payments and allowability of costs 2 CFR 200.302 Financial systems must provide: States continue to follow their laws in expending federal awards Major Changes:

20. OMB Uniform Guidance: Overview 20 Internal Controls & Payments Must establish adequate internal controls using sound management practices that may include: Standards for Internal Control in the Federal Government (Green Book) or “Internal Control – Integrated Framework COSO ” No change Incorporates IPERA improper payments requirements Remittance of interest income of $500 annually WIA requirements continue until WIOA implementation DOL Exceptions 2900.6 and 2900.7 Impose restrictions on advances depending on specific conditions Requires liquidation of existing advances before new request 200.305 Payments200.303 Internal Controls 200.304 Bonds Major Changes:

21. OMB Uniform Guidance: Overview 21 Internal Controls Defined A process designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Effectiveness and efficiency of operations Reliability of internal and external reporting Compliance with laws and regulations 2 CFR 200.61 Internal Controls

22. OMB Uniform Guidance: Overview 22 2 CFR 200.400 Policy Guide for Cost Principles “Sound Management Practices” 2 CFR 200.303 Internal Controls Requirement 2 CFR 200.61 Definition - Internal controls 2 CFR 200.62 Definition - Internal Control over Compliance Requirements Increased Emphasis on Internal Controls Uniform Guidance

23. OMB Uniform Guidance: Overview 23 Same standards as large entities but different implementation Some small entities have some advantages Management more involved in operations Direct interaction with staff Easier lines of communication Use compensating controls –Add levels of review, random transaction reviews Effective Internal Controls for Small Entities

24. OMB Uniform Guidance: Overview 24 Knowledge Check Effective internal controls are the sole responsibility of the fiscal staff? True or False

25. OMB Uniform Guidance: Overview 25 Reporting Only OMB approved formats 2 CFR 200.328 – Performance Reporting 2 CFR 200.329 – Real Property Reporting

26. OMB Uniform Guidance: Overview 26 Financial Reporting 26 2 CFR 200.327 Financial Reporting Submit the ETA-9130 45 days after the end of each quarter ETA-9130 Form and new data elements are expected to be released shortly. More information can be found at: http://www.doleta.gov/grants/financial_reporting/9130ren ewal.cfm DOL clarification at 2 CFR 2900.14 Cash or accrual reporting at agency discretion

27. OMB Uniform Guidance: Overview 27 Cost Sharing or Match Higher standards for documentation Must be verifiable through adequate records 2900.8 DOL exceptions requires that contributions/funds received for match purposes be expended on program purposes. 200.306 Cost Sharing Major Changes:

28. OMB Uniform Guidance: Overview 28 2 CFR 200.308 & 200.309 Revision of budget and program plans –If Federal award is over the Simplified Acquisition Threshold, prior approval is needed for any cumulative change that exceeds 10% of the total budget –2900.9-12 - DOL Exceptions No blanket approval Submission 30 days before effective date Must be in writing Only approving official is the Grant Officer Period of performance Budget and Program Plans and Period of Performance Major Changes:

29. OMB Uniform Guidance: Overview 29 Prior Approval Prior written approval Approval must be in writing Before cost is incurred 5 items in the Administrative Requirements and 17 in cost principles 2 CFR 200.407

30. OMB Uniform Guidance: Overview 30 Prior Approval Non-federal entity must request approval Submit not less than 30 days prior to action date Only Grant Officer has authority to approve Items in award budget do not constitute prior approval – for example, equipment listed under the equipment line DOL exception at 2 CFR 2900 DOL Exceptions on Prior Approval

31. OMB Uniform Guidance: Overview 31 Prior Written Approval Must be approved in writing by the Grant Officer Approval cannot be an email from Federal Project Officer Must be submitted in writing to the Grant Officer before incurring cost Inclusion of items in the grant budget does not constitute prior approval Non-compliance may lead to disallowedcosts

32. OMB Uniform Guidance: Overview 32 Budget Flexibility Flexibility for all line items Prior approval when the cumulative amount of transfers exceeds or is expected to exceed 10 percent of the total budget Prior approval must be in writing Process re- starts after each approval Consult your FPO if in doubt

33. OMB Uniform Guidance: Overview 33 Equipment Purchase 2 CFR 200.439 $5000 or more per unit acquisition cost Useful life of more than one year Grant award itself is not prior approval No equipment purchases in last year of grant Approval will be provided in writing Revision of Budget and Program Plans

34. OMB Uniform Guidance: Overview 34 2 CFR 200.310 - 200.316 Facilities and Lease Agreements Equipment –Including information technology systems Supplies –Including computing devices DOL Requires Creative Commons Licensing for intangible property –2900.13 Property Standards Major Changes:

35. OMB Uniform Guidance: Overview 35 2 CFR 200.317 to 200.326 Procurement Standards New or expanded items Micro-purchases Conflict of Interest Simplified acquisition threshold Consultants States continue to follow state standards Subrecipients of states follow the Uniform Guidance standards Major Changes:

36. OMB Uniform Guidance: Overview 36 2 CFR 200.317 to 200.326 Procurement Standards New or expanded items Micro-purchases Conflict of Interest Simplified acquisition threshold Consultants States continue to follow state standards Subrecipients of states follow the Uniform Guidance standards Major Changes:

37. OMB Uniform Guidance: Overview 37 –Effective date for implementation is revised 200.110 –Allows a grace period of two fiscal years to implement 200.317 through 200.336 Grace Period for Procurement Standards 37 –https://www.gpo.gov/fdsys/brows e/collectionCfr.action?collection Code=CFR PROCUREMENT STANDARDS Look to FAQs www.cfo.gov/cofar

38. OMB Uniform Guidance: Overview 38 2 CFR 200.326 All contracts made must contain 10 possible contractual provisions at Appendix II –Simplified acquisition threshold determines which provisions are applicable December 19, 2014 Federal Register –Contractual provisions from H to K are reordered, and the Energy Policy and Conservation Act (42 U.S. 6201) is removed Contractual Provisions Major Changes:

39. OMB Uniform Guidance: Overview 39 Subrecipient Monitoring and Management 200.330 Subrecipient and Contractor Determination Characteristics substantially the same as before Changes term vendors to contractors Affects audits, procurement and other requirements Subrecipient Determines eligibility Responsible for programmatic decision making Carries out a program for public purpose Contractor Obtains goods and services for use of awardee Normal business operations and ancillary to Federal program Major Changes:

40. OMB Uniform Guidance: Overview 40 200.330 Subrecipient and Contractor Determination Characteristics substantially the same as before Changes term vendors to contractors Affects audits, procurement and other requirements Subrecipient Determines eligibility Responsible for programmatic decision making Carries out a program for public purpose Contractor Obtains goods and services for use of awardee Normal business operations and ancillary to Federal program Subrecipient Monitoring and Management Major Changes:

41. OMB Uniform Guidance: Overview 41 Ensure subawards appropriately identified Specify required information for each award CFDA Number and dollar amount of each Evaluate risk of non- compliance Monitor subaward activities Specified actions Include Federal Award Identification Number (FAIN) and DUNS numbers Verify audit coverage as required Major Changes: Subrecipient Monitoring and Management Honor Indirect Cost Rates and de minimis rate

42. OMB Uniform Guidance: Overview 42 Cost Allocation and Indirect Costs DOL clarification at 2900.17 –Adjustments or refunds and effect on IDC rates 200.413—Discussion of Direct Costs 200.418 – Distinctions Use of Appendices Major Changes:

43. OMB Uniform Guidance: Overview 43 De Minimis Rates Has costs classified as indirect costs Entity has never received or does not currently have a negotiated indirect cost rate May charge an indirect cost rate of 10% of modified total direct costs (MTDC) Entity eligible to receive rate De Minimis Rate defined at 200.414(f) Major Changes:

44. OMB Uniform Guidance: Overview 44 Records §200.333 All retention requirements consolidated in one section Specifies length of retention –Financial records – 3 years or until all matters are closed, whichever is later –Real property and equipment – 3 years –Program income expended post award –Indirect cost rate proposals/cost allocation plans 3 years but start date may differ

45. OMB Uniform Guidance: Overview 45 Records (2) Additional requirements related to –Collection, transfer and storage of information –Federal request to transfer records –Access to records Federal agencies, OIGs, Pass-Throughs right of access to records and personnel Non-disclosure of victim names Right of access expiration –Few Federal restrictions to limit access Exception: Personally Identifiable Information (PII)

46. OMB Uniform Guidance: Overview 46 2 CFR 200.338 to 200.342 Remedies for non-compliance Expansion of enforcement actions Options to object, hearings and appeal Termination Sets requirements for both termination for cause and for convenience Notification of termination requirements Effects of Suspension or termination Remedies for Non-Compliance Major Changes:

47. OMB Uniform Guidance: Overview 47 Federal Termination and Remedies §200.339-342 Termination –Sets requirements for both termination for cause and for convenience –Notification of termination requirements Remedies for Noncompliance –Expansion of enforcement actions –Options to object, hearings and appeal Separate section on effects

48. OMB Uniform Guidance: Overview 48 QSAP - Quick Start Action Planner 48 ETA created a quick start action planner to support your agency's implementation of 2 CFR Part 200 and OMB's approved exceptions for DOL at 2 CFR Part 2900 which cover the following topics: Policies and Procedures Internal Controls: Providing an Effective Control Environment Budget Controls for Program Effectiveness Cash Management Subrecipient Management and Oversight Audits: Reports and Resolution Procurement under the New Requirements Cost Allocation and Cost Allocation Methods and more…

49. OMB Uniform Guidance: Overview 49 Key Concepts Look at the latest version of the Uniform Guidance on www.gpo.gov Contains the technical corrections through November 11, 2015 Share information with subrecipients including QSAP Examine policies and procedures. Update policies to reflect the Uniform Guidance and DOL exceptions.

50. OMB Uniform Guidance: Overview 50 Poll What type of technical assistance or webinar would you like to see in the future? 1.Financial reporting 2.Budget modifications 3.Subrecipient management 4.Equipment 5.Closeout 50

51. OMB Uniform Guidance: Overview 51 THANK YOU! 51