2. Copyright © Texas Education Agency 2012 1 Other Key Uniform Administrative Grant Requirements

3. Copyright © Texas Education Agency 2012 2 Uniform Administrative Grant Requirements Federal Grants: OMB Circular A-110 (34 CFR Part 74) (also codified in 2 CFR Part 215) Institutions of Higher Education (IHEs) and NonProfit Organizations State and Federal Grants: Texas – Uniform Grants Management Standards (UGMS) (Authority – Tx Gov’t. Code, Chapter 783, Uniform Grant and Contract Management Standards Act of 1981) – instructed Governor to develop and implement a set of uniform grant administrative requirements for state-funded grants

4. Copyright © Texas Education Agency 2012 3 Sources of Grant Requirements U. S. Constitution – Ex: Due Process; nondiscrimination Statutes and Executive Orders – Ex: Civil Rights, Privacy Act, Lobbying, DrugFree Workplace, Americans with Disabilities Act; mandatory but may have some flexibility in how to comply Authorizing program statute OMB Circulars – government wide Considered by federal courts to be mandatory and binding on grantees as condition of accepting grant awards Agency wide regulations – Ex: EDGAR (Education Department General Administrative Regulations) All regulations have the full force and effect of law Program regulations, handbooks, guidelines, etc. – Education regulations are codified in 34 CFR. Unless contrary to other regulations, they are mandatory and binding. Non-regulatory guidance is not mandatory and binding, but if grantee implements according to guidance, they will be considered to be in compliance Grant agreement

5. Copyright © Texas Education Agency 2012 4 General Principles of Applicability When possible, individual grant requirements should be read in conjunction with all other grant administration requirements. When there is more than one consistent grant requirement, the more specific requirement should govern When grant requirements are inconsistent, courts and agencies generally apply in the following order: 1. Constitution takes precedence over statute 2. Statute takes precedence over regulations 3. Published regulations take precedence over unpublished requirements

6. Copyright © Texas Education Agency 2012 5 Organization of 34 CFR Part 74 (OMB Circular A-110) Subpart A – General Subpart B – Pre-Award Requirements Subpart C – Post-Award Requirements Subpart D – After-the-Grant Requirements

7. Copyright © Texas Education Agency 2012 6 34 CFR Part 74 IHEs, Hospitals, and Other Nonprofits Subpart A – General Requirements such as definitions and applicability – Grantee (Texas Education Agency) – Subgrantee (LEAs, Nonprofits, IHEs etc)

8. Copyright © Texas Education Agency 2012 7 Subpart B – Pre-Award Requirements Special award conditions for high-risk grantees Agencies may impose special award conditions if applicant: 1) Has history of unsatisfactory performance 2) Not financially stable 3) Financial management system does not meet standards 4) Noncompliant with terms and conditions of award 5) Otherwise not responsible.

9. Copyright © Texas Education Agency 2012 8 High-Risk Grantees May impose special conditions on high-risk grantees, including: 1) Payment on reimbursement basis only 2) Withhold authority to proceed to next phase until evidence of acceptable performance 3) Require additional, more detailed financial reports 4) Additional monitoring 5) Require they obtain technical assistance 6) Establish additional prior approvals (special conditions come from 34 CFR 80.12)

10. Copyright © Texas Education Agency 2012 9 High-Risk Grantees TEA must notify grantee as early as possible in writing of: nature of additional requirements reason(s) for imposing them corrective actions which must be taken prior to removing and time allotted method for requesting reconsideration of the additional requirements imposed

11. Copyright © Texas Education Agency 2012 10 Copyright Grantees may not copyright, patent, or trademark any product developed with grant funds from TEA without express written permission from TEA and usually without a royalty agreement See Schedule #6A, General Provisions and Assurances, section R, Intellectual Property Ownership

12. Copyright © Texas Education Agency 2012 11 Procurement Standards 34 CFR 74.40 -.48 establishes procedures for purchasing supplies, equipment, real property, and other services with federal funds. Written standards of conduct to ensure no conflict of interest (real or perceived) in awarding contracts Solicitations (bids, RFPs, etc.) shall clearly establish all requirements Make offers to the vendor whose bid or offer is responsive to the solicitation and is most advantageous to the grantee, considering price, quality and other factors

13. Copyright © Texas Education Agency 2012 12 Procurement Procedures Establish written procurement procedures that: – avoids purchasing unnecessary items – provides for an analysis of lease vs. purchase to ensure most economical and practical – provides for clear, accurate description of the requirements

14. Copyright © Texas Education Agency 2012 13 Cost or Price Analysis Conduct cost or price analysis for every procurement – Price analysis – comparison of price quotations, market prices, and similar indices – Cost analysis – review and evaluation of each element of cost in the proposed budget to determine reasonableness, allocability, and allowability

15. Copyright © Texas Education Agency 2012 14 Contract Administration System Maintain system for contract administration to ensure: – contractor is conforming to terms and conditions of award and specifications – adequate and timely follow up of all purchases – evaluation of contractor performance and documentation of performance – contract defines a sound and complete agreement

16. Copyright © Texas Education Agency 2012 15 Contract Provisions Contractual provisions in contracts more than $25,000 that allow for: – administrative, contractual, or legal remedies in the event the contractor violates or breaches the contract terms, and the remedies – termination (for cause or for convenience) by the grantee, including the manner for termination and basis for settlement – termination for default or for circumstances beyond the control of the contractor

17. Copyright © Texas Education Agency 2012 16 Monitoring and Reporting Grantees must: – manage and monitor each project – monitor any subawards or subcontracts – report to TEA as required (both fiscal and programmatic reports) – retain all original records for 5 years from the ending date of the award – provide timely and unrestricted access to records and to personnel by TEA, USDE, OIG, etc. as long as records are retained – NOTE: Records need to be organized and easily accessible.

18. Copyright © Texas Education Agency 2012 17 Termination Awards may be terminated if the grantee materially fails to comply with the terms and conditions of the award

19. Copyright © Texas Education Agency 2012 18 Enforcement Actions Remedies for noncompliance: Temporarily withhold payments Disallow all or part of cost Wholly or partly suspend or terminate current award Withhold further awards

20. Copyright © Texas Education Agency 2012 19 Closeout Grantee shall submit required financial reports and program reports to TEA in the time and manner requested All obligations must be liquidated (paid out) in order to file the final expenditure report Grantees shall promptly refund any amounts owed to TEA; constitutes a debt to the federal government

21. Copyright © Texas Education Agency 2012 20 Closeout Closeout does not affect: – Right to disallow and recover funds at a later date – Grantee’s obligation to submit a refund – Audit requirements – Property management requirements – Records retention

22. Copyright © Texas Education Agency 2012 21 Collection of Amounts Due Excess funds paid to a grantee constitute a debt to the Federal government If not paid within reasonable time, TEA may reduce debt by: – making administrative offset against other requests for reimbursement – withhold advance payments – other action permitted by law