1. DEVELOPING POLICIES AND PROCEDURES Brette Kaplan, Esq. bkaplan@bruman.com Erin Auerbach, Esq. eauerbach@bruman.com Brustein & Manasevit, PLLC Fall Forum 2013 bkaplan@bruman.comeauerbach@bruman.com

2. Why? Brustein & Manasevit, PLLC 2 A-133 Audits Monitoring Changes and Transition of Staff Compliant policies and procedures lead to:  Administering compliant programs and complying with grants management requirements

3. Hungry for Compliance? Brustein & Manasevit, PLLC 3

4. The Recipe Brustein & Manasevit, PLLC 4

5. 5 Where to start? Who should be involved? What is the process? How long does it take?

6. The Utensils Brustein & Manasevit, PLLC 6

7. Rules and Regulations Brustein & Manasevit, PLLC 7 Education Department General Administrative Regulations (EDGAR)  OMB Circular A-102 Office of Management and Budget Circulars State/Agency Policies and Procedures Authorizing Statute

8. Types of Grants Brustein & Manasevit, PLLC 8 State Administered Grants  Any grant that is distributed by formula to eligible States. EDGAR § 76.1 Direct Grants  Any grant other than those that are distributed by formula to eligible States. EDGAR § 75.1

9. The Ingredients Brustein & Manasevit, PLLC 9

10. 10 Organization, Structure and Function Grant Application Process Financial Management System Procurement Inventory/Property Management Time and Effort Record Keeping Monitoring Audit Resolution Programmatic Fiscal Requirements Programmatic Requirements

11. Organization Structure and Function Brustein & Manasevit, PLLC 11

12. Organization Structure and Function Brustein & Manasevit, PLLC 12 Organization Chart  Offices  Sections  Divisions Job Descriptions & Responsibilities Outside entities with grant administration responsibilities  MOU/MOA

13. Grant Application Process Brustein & Manasevit, PLLC 13

14. Grant Application Process Brustein & Manasevit, PLLC 14 Direct Grant vs. State Administered Grant Decisions regarding what grants to apply for Determining organizational capacity to run a compliant program Approvals/Authorizations After the Grant is Awarded Best Practice:  Whether or not formal acceptance is required, meet with appropriate parties to be certain you want to accept the grant.  Make acceptance a conscious act. Situations may have changed between submission and notice of award – internally and externally.

15. Financial Management System Brustein & Manasevit, PLLC 15

16. Financial Management System Brustein & Manasevit, PLLC 16 EDGAR §§ 80.20/ 74.21 Accounting System Budget Budget Revisions Allowable Costs Cash Management Timely Obligation of Funds

17. Procurement Brustein & Manasevit, PLLC 17

18. Procurement Brustein & Manasevit, PLLC 18 EDGAR §§ 80.36/74.40-74.48 State procurement requirements Open Competition Conflict of Interest Solicitations Vendor Selection Contract Administration

19. Inventory Brustein & Manasevit, PLLC 19

20. Inventory Brustein & Manasevit, PLLC 20 EDGAR §§ 80.32/ 74.34 Property classifications  Equipment, supplies, “highly walkables” Inventory procedure Lost or stolen items Disposition

21. Time and Effort Brustein & Manasevit, PLLC 21

22. Time and effort Brustein & Manasevit, PLLC 22 OMB Circular A-87  Semiannual Certification  PARs OMB Circular A-21  Professional/professorial  Other Staff Cost Objective Reconciliations

23. Record Keeping Brustein & Manasevit, PLLC 23

24. Record Keeping Brustein & Manasevit, PLLC 24 EDGAR §§ 80.42/ 74.53 Statute of Limitations State Policy Agency Policy

25. Monitoring Brustein & Manasevit, PLLC 25

26. Monitoring Brustein & Manasevit, PLLC 26 Monitoring of agency Monitoring of subrecipients Risk-based factors Desk reviews Onsite reviews Follow-up

27. Audit Resolution Brustein & Manasevit, PLLC 27

28. Audit Resolution Brustein & Manasevit, PLLC 28 Single Audit/OMB Circular A-133 Resolution of findings Review of subrecipients’ A-133 audits

29. Programmatic Fiscal Requirements Brustein & Manasevit, PLLC 29

30. Programmatic Fiscal Requirements Brustein & Manasevit, PLLC 30 Supplement not supplant Maintenance of effort Matching Hold harmless

31. Programmatic Requirements Brustein & Manasevit, PLLC 31

32. Programmatic Requirements Brustein & Manasevit, PLLC 32 Programmatic compliance  Allocations to subrecipients  Allowable costs under grant program  Application process  Other

33. Eat and Enjoy Brustein & Manasevit, PLLC 33

34. Brustein & Manasevit, PLLC 34 Training Review and revise Where are policies and procedures located?

35. Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. Brustein & Manasevit, PLLC 35